MANAGEMENT

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BUISENESS MANAGEMENT

INSURANCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A cargo ship was insured against perils of sea. While the consignment was being loaded few rats also creeped along. During the Voyage, the rats made holes in the ship. Consequently, the sea water entered into the ship and the cargo was damaged. Will he get his claims? If not, why?
A
Yes, he will get his claim.
B
No he will not get his claim due to proximate cause.
C
No he will not get his claim due to mitigation cause.
D
No he will not get his claim due to subrogation cause.
Explanation: 

Detailed explanation-1: -MARINE ADVENTURE (Voyage): Any property that is insured (Ship, Goods or Cargo) is exposed to maritime perils (Risks). Any earnings or acquisitions of freight, commissions, profits, financial benefits, any security on advances, loans, disbursements etc.

Detailed explanation-2: -In the sea, Marine Insurance will cover these perils: Damage to ships due to natural disasters, collisions, pirate attacks, crashing. Loss or damage of goods or cargo due to any mishap. Death of crew members or others on a ship.

Detailed explanation-3: -Peril of the Sea-refers to extraordinary forces of nature that maritime ventures might encounter in the course of a voyage. Some examples of these perils include stranding, sinking, collision, heavy wave action, and high winds.

Detailed explanation-4: -Broadly speaking, ‘peril of the sea’ covers damages to the ship during the voyage by the Acts of God. It includes those accidents or casualties which do not happen due to the free will of a human being. Even if we talk about natural perils, it will not include the natural and ordinary action of wind.

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