California Property & Casualty Broker-AgentMiscellaneousMedium
An ocean marine policy includes a 'perils of the sea' clause. Which of the following losses would typically be covered under this clause?
- ALoss due to the ship's engine failing because of poor maintenance.
- BDamage caused by rats gnawing through the ship's hull.
- CLoss due to goods being jettisoned to save the ship during a storm.
- DDamage resulting from faulty packing of cargo by the shipper.
Show answer & explanationAnswer & explanation
Correct answer: C. Loss due to goods being jettisoned to save the ship during a storm.
Jettison, the act of throwing cargo overboard to lighten the ship in an emergency, is a classic peril of the sea. It's an extraordinary peril directly related to navigation and the sea's inherent dangers, not ordinary wear and tear or negligence.
Why the other options are wrong
- A. Poor maintenance leading to engine failure is typically due to negligence and not an extraordinary 'peril of the sea'.
- B. Damage by vermin is generally excluded as it's not a 'peril of the sea' but often a preventable issue.
- D. Faulty packing is a cargo-specific issue and not a 'peril of the sea' affecting the vessel itself.
Perils of the Sea
In ocean marine insurance, these are extraordinary perils peculiar to the sea, such as storms, stranding, collision, and jettison, that are accidental and not due to ordinary wear and tear or negligence.
- Must be extraordinary and accidental.
- Includes heavy weather, stranding, collision, fire, jettison.
- Excludes ordinary wear and tear, inherent vice, and most forms of negligence.
Memory trick: The sea's true dangers are stormy, striking, and sacrificing.