Document Type : Original Research Paper

Authors

• H. Ramezani ¹
• Gh. Fayzi Chakab ²

¹ Campus Faculty, Allameh Tabataba'i University, Tehran, Iran

² Department of Commercial Law and International Commerce, Faculty of Law and Political Science, Allameh Tabataba'i University, Tehran, Iran

Abstract

BACKGROUND AND OBJECTIVES: Identify the effects and challenges of corona in the field of marine insurance and the extent of claims coverage And as well as explaining workable strategies to help address these challenges And long-term preventive policies to overcome similar crises in the future possible.
METHODS: This research is organized in a descriptive-analytical manner And the method of collecting materials has been compiled in the form of a library and by studying and searching in books and legal articles, laws and related internet sites.
FINDINGS: The maritime and shipping industry plays an important role in maritime transport; Because most transportation in the world is done by sea and by ship; But for a long time now, Sea voyages have always been associated with hazards that could cause damage to goods, ships or their occupants; Therefore, shipowners were always looking for suitable solutions to compensate for the damages, which in the end, concluding an insurance contract with marine insurers found the best solution and financial support and thus succeeded in insuring the ship, goods and third parties liability by Profit Insurances and Protection and Indemnity Clubs. In late 2019, an emerging phenomenon called the corona virus emerged, which spread rapidly around the world. Following the widespread outbreak of the coronavirus, governments sought to prevent the spread of the new virus by imposing restrictive regulations such as forced closures, quarantines, travel restrictions and border closures. Therefore, as a result of these restrictions, a wide range of commercial activities in the world decreased, and as a result, reduced transportation, especially in the maritime area, which ultimately caused a lot of damage to shipowners; This is because the restrictions imposed have led to a reduction in manpower, delays in loading, clearance and delivery of goods, damage to cargoes, especially perishable goods, delays in repair, service and inspection of ships, as well as loss of ship hire and the costs of quarantine, sickness or death of seafarers, return and replacement costs, passenger liability and diversion costs must be added that these cases will lead to insurance claims and create differences between underwriters and insurers.
CONCLUSION: Coronas affect marine insurance, and insurers and underwriters will face many challenges to cover or compensate. About cargo insurance, Restrictions on the corona outbreak led to the cancellation of many sales and transportation contracts that this led to delays in loading, clearance and delivery of goods, congestion of ports, saturation of warehouses and customs and as a result, it incurs additional costs and damages, especially perishable goods, or even theft or destruction of shipments. In addition, Ship quarantine and disinfection may also cause the goods to be destroyed, damaged or reduced that this can lead to insurance claims and disputes or requests for new coverage. On the other hand, insurers have prepared themselves for a possible onslaught of insurance claims by resorting to new exception conditions and based on the fact that many of these insurance policies contain universal exceptions or not set to provide coverage for Quid 19, They try to reduce the level of compensation as much as possible. In the case of ship insurance, Due to the prevalence of corona, the reduction in the use of some types of ships, such as container ships and cruise ships, has to some extent led to a reduction in insurance claims for damage to the hull and machinery of ships; But due to restrictions, There will be another dimension of insurance claims that result from disruptions and delays in the provision of spare parts, periodic repairs, and ship inspections. in addition to, Lack of manpower in ships and ports due to illness, bans or ship delays leads to sailors' fatigue and, of course, increases human error, which is one of the main causes of maritime accidents. The reduction in premiums is another effect of the Corona epidemic, which has resulted in a decline in turnover due to the global recession, and various types of marine insurance are likely to face payment problems due to a lack of liquidity; At the same time, we are expected to see an increase in fraud due to fraudulent damages and an increase in bankruptcy. Another consequence of Corona is the increase in claims related to the loss of ship hire. If due to corona delays, the duration of repair of damage to a ship in the repair shop is increased, claiming damages related to the loss of hire will lead to a dispute between underwriters and insurers. This is because if there are delays or delays in repairing the damage or damages covered by the ship's hull and machinery insurance, then the loss of hire will be covered by the insurance. Otherwise, If repairs are delayed or delayed due to the corona, insurers will attribute the delay to an epidemic and try to reduce compensation. Expenses related to quarantine, sickness and death of seafarers, return expenses, passenger liability, diversion costs and fines are covered by Protection and Indemnity Clubs, and the corona epidemic will significantly increase claims in these cases. In addition to claims, investment market fluctuations affect the financial returns of these associations, and the decline in stock markets has greatly affected the income and capital of many of these Clubs; Therefore, investment and insurance losses lead to an increase in insurance rates when most accounts are renewed, which is another challenge for shipowners. To meet the challenges, insurers need to seek the necessary expertise and experience in the field of additional risk assessment; Reassure insurers by paying compensation on time and prepare for similar crises in the future by upgrading the risk-taking system and maintaining financial wealth and even create new covers. By using robotic technology, insurers can prevent delays and disruptions in periodic inspections and repairs of ships, and with the development of digitalization and automation, prevent physical contact with individuals and speed up insurance operations.

Keywords

• Clubs
• Covid-19
• Loss
• Protection and Indemnity
• Ship insurance
• Underwriter

Main Subjects

• Loss adjuster in insurance