Barratry is the legal term describing severe or willful misconduct by the captain or crew of the ship that would include loss or damage to the ship or cargo. Marine insurance plays a crucial role in protecting you against the risk of damage or loss to the cargo or ships by which the goods are transferred, acquired or held between the points of origin and final destination. Availing of the best marine insurance policy for the business helps to mitigate the financial pitfall that can happen due to loss or damage of goods in transit. On the other hand, Maritime law (also known as Admiralty law) is the concerned body of laws, conventions and treaties that govern maritime business and other nautical matters, such as the offenses occurring in the open water.
Know About the Marine Perils in Marine Insurance
Maritime Perils or ‘Perils of the Sea’ means the perils consequent on, or incidental to the navigation of the Sea. These perils are:-
- Perils of Sea
- Pirates, Rovers, Thieves
- Restrainments and Detainments
- Strikes, Riots, and Civil Commotion Clause
- All the Other Perils
What is Barratry in Marine Insurance & Maritime Law
Barratry is the fraudulent breach of duty by the captain or crew of the ship. It includes every breach of trust such as stealing or sinking or deserting the ship or stealing the components of the cargo.
What is Included in the Barratry
Barratry includes every wrongful act, which is willfully committed by the captain or crew. The act of barratry is committed without the knowledge of the owner. The act includes:-
- The Theft
- Setting fire to the ship
- Fraudulent selling of the vessel or cargo without the willingness of the ship-owner
The above examples are some of the instances that cover under the barratry. If the marine insurer policy covers barratry peril, then they are liable for losses arising out of the barratry.
What is the Difference Between Theft and Barratry
Theft is a person who is guilty of stealing someone’s money or property belonging to the other with the intention of permanently depriving it. On the other hand, Barratry in marine insurance is considered a qualified form of theft. This means it is considered more serious and therefore it is punishable and warrants sentencing enhancements over other types of theft.
Kinds of Barratry
Generally, barratry is grouped into five types:-
- The shipmaster flees with the cargo
- Contraband (if changing destination, selling the ship and disappearing from the creditor’s reach)
- Change of voyage
- The fraudulent sinking of the vessel
- Lack of defense of the vessel
Marine insurance is important for businesses that generally deal with overseas or international boundaries. We, SecureNow, provide end-to-end insurance solutions to clients, which include the right transit insurance online plan in place, provide the best insurance quotations, and then support at the time of claims. With our wide market experience, we have settled more than 1000 insurance claims. We have specialist professionals who know the ins and outs of the insurance industry. We provide a vast personal experience as compared to the other insurance companies. Get in touch to know more!