Marasi 31(2)

LEGAL REPORT
A deep insight into Hull
and Machinery marine
insurance policies
By Kirsty Cattanach
Senior Associate
Baker & McKenzie Habib Al Mulla
This article focuses on English
law as the choice of law in most
Exceptions in Hull and Machinery
("H&M") marine insurance policies
we see. That said, the position under
the marine insurance provisions in
the UAE Maritime Code is often very
similar to the position under English
policies.
The first point is, of course, read
your policy! By that we mean the
actual policy contractual terms. We
regularly find during transactional
due diligence that a party will provide
either a broker's summary or (less
often) an insurance certificate when
asked to produce their insurance
policy wordings. Assureds need to
know the whole contract. Often, the
insurance certificate will incorporate
by reference standard term insurance
contracts and separate individual
clauses. Clauses can be incorporated
just by codes, which are cryptic to
the uninitiated. For example, if your
insurance certificate includes the
code "JH2010/009", that means it
includes the "sanctions exclusion"
clause. Your insurer will not have to
pay the claim if doing so would expose
your insurer (or their reinsurer) to
any UN, EU, UK or US sanction. We
suggest that you get to read and
understand all of the clauses that are
incorporated into your contract, and
discuss it with your broker.
Exclusions from H&M policies
arise both at law and in contract. At
contract, your H&M policy will usually
exclude losses that are commonly
covered by other forms of marine
insurance. That includes towage,
transhipment, pollution, crew wages
and wreck removal (which are usually
covered by P&I insurance), together
with war, strikes, malicious acts and
nuclear (all usually covered in War
Risks & Strikes policies).
80 NOVEMBER - DECEMBER 2018