Underwriting cargo risks under the institute cargo clauses 1982 against the backdrop of English and Jordanian marine insurance law and practice
In January 1982 marine cargo insurance was the subject of a very radical change on the
London marine insurance market. The changes included the abandonment of the historical S. G.
policy and institute clauses of 1963. The market introduced the new MAR policy and a new set of
standard cargo clauses, designated A, B, and C. The new Institute Cargo Clauses were designed
for use on an international basis and have been adopted in many foreign maritime insurance
markets. Subsequent to their introduction they have attracted much attention and debate.
The main aim of this research is to thoroughly examine, explain and evaluate all the
provisions of the Institute Cargo Clauses, and to assess their success and points of weakness. As
the clauses constitute the terms of the relevant contract of marine insurance they must be
considered in the context of the Marine Insurance Act of 1906, and also the applicable law cases.
The clauses have been investigated on the presumption that English law and practice applies. This
thesis also includes a comparison with Jordanian law, with an ancillary section concerned with the
placing of marine cargo cover in the Jordanian market where the Institute Cargo Clauses have been
adopted, and with the relevant marine insurance provisions in the Jordan Maritime Commercial
Law of 1972 also examined.
The thesis comprises 11 chapters: except for the first three chapters all follow the structure
of the clauses. In summary, the first chapter describes the basic features of the London market and
defines its role as the overseer of insurance conditions. This is coupled with an overview of
developments in the practical stages of placing cargo cover. The second chapter deals with
features of the Jordanian insurance market and reviews the statutes governing its activities,
including cargo cover, and the system adopted in placing insurance cover. The third chapter is a
linking chapter which gives a brief account of the old system of marine cargo cover and discusses
the reasons behind the radical changes in the London market in 1982. Chapter Four deals with the
risks covered in the A, B, and C clauses respectively, particular attention being given to all risks
cover as it is the most common form used in cargo insurance. Chapter Five analyses the exclusions
in the Institute Cargo Clauses with special reference to the General Exclusions Clauses (cl
the War Exclusion Clause(cl 6) as these provide the most common intersection between `perils
insured' and `perils excluded'. Chapter Six discusses the `Duration Clauses', with special
consideration being given to the Transit Clause. `Deviation' and `Change of Voyage' are
discussed and compared with the relevant statutory provisions in the M. I. A 1906. Chapter Seven
deals with claims. Consideration, in particular, is given to the Insurable Interest and Constructive
Total Loss clauses. Chapter Eight is devoted to evaluating the effect of inserting the `Benefit of
Insurance' Clause in a carriage of goods
sea contract and the impact of the `Not to inure'
Clause in marine cargo cover. Chapter Nine examines, in considerable depth, the minimising losses
clauses, by discussing the impact of the `Duty of the Assured' Clause and the contradiction
between the statutory sue and labour clause in section 78 and section 55 of the M. I. A of 1906.
Chapter Ten is concerned with the ambit and the function of the Reasonable Dispatch clause. The
last chapter is the conclusion.
It is hoped that this work will contribute, with other works in the relevant field, towards a
better understanding of underwriting marine cargo cover both in_ the London and the Jordanian
markets, and that it may also prove of use and interest to Middle Eastern insurance practitioners