APPLIES TO ACADEMIC YEAR 2015/2016

GRA 8188 Marine and Energy Insurance

Responsible for the course
Cathrine Bjune

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
3

Language of instruction
English

Introduction
The course gives an overview of international marine insurance. This includes the markets, the covers and the conditions. the markets for insurance as well as reinsurance is covered, and so are the insurable interests attached to the various players. The owners and charterers as well as other parties insurable needs are covered. Both the Nordic Marine Insurance plan and the English covers according to MIA 1906 and ITCH and ITCC are covered, together with an overview of relevant energy insurance. The focus will be on the capital need, the freight interest and the potential legal liabilities that can be incurred in contracts and in tort by the different players in the market. The course covers underwriting principles and the difference between direct insurance, reinsurance and co insurance. The students will learn to identify insurable interests in the vessel and how to insure these on Norwegian and English terms, being the two largest marine insurance markets in the world. TLO and freight insurance will also be covered..For energy insurance there will be a brief cover of upstream and downstream insurance covers a well as property risks

Learning outcome
Acquired knowledge:
The students will acquire knowledge and practical use of laws, rules and conditions used in international marine insurance, including an overview of the markets worldwide for marine insurance. This includes general insurance terminology and placing of covers, as well as role of brokers and the individual markets and specific clauses and conditions. This includes knowledge of the insurable interests of owners, charterers and third parties, The Norwegian Marine Insurance Plan and its conditions and clauses as well as the English Marine Insurance covers.

Acquired skills:
The students will be able to identify and assess the shipowners, charterers and other third parties insurable interests in marine operations relating to vessels and to cover these in the relevant marine insurance markets worldwide. The students will be able to find, compare and apply relevant insurance covers, and to solve practical cases. The students will understand and be able to use relevant clauses and conditions in different markets. They will learn the difference between marine insurance associated with ships and energy insurance associated with pipelines and rigs and offshore structures.

Reflection:
By understanding the concept and framework of marine insurance in an international context, the students will be able to reflect on the need and application of the cover and to assess the owners, charterers and other third parties insurance needs. By being able to compare the conditions of different markets, they will be able to reflect on the necessity, availability, quality and price of available covers.

Prerequisites
Granted admission to the EMBA programme.

Compulsory reading
Books:
Falkanger, Thor, Hans Jacob Bull and Lasse Brautaset. 2010. Scandinavian maritime law : the Norwegian perspective. 2nd ed. Oslo : Universitetsforlaget.. Chapters 20, 21 and 22

Articles:
Articles and handouts for reference to be distributed in the class

Other:
CEFOR. 1994. The Nordic Marine Insurance Plan. 2013. CEFOR. Insurance conditions and general rules for ships
Commentary to the Nordic Marine Insurance Plan. 1994. 2013. CEFOR. Selected chapters - mainly 1-4. Can be downloaded from here http://www.nordicplan.org/The-Plan/
Hand-outs
Institute Time Clauses Hull 1983
Marine Insurance Act 1906


Recommended reading
Books:
Handbook on Loss of Hire Insurance (1999) Haakon Stang Lund, Jon Heimset, Trond Eilertsen (1999) – Bergen. 122 pages
P&I insurance: Gard Handbook on P&I Insurance, 5th ed. Gard, London
Rhidian, Thomas, ed. 1996-2000. The Modern law of marine insurance. London : LLP

Course outline
Insurance terms and terminology
General underwriting principles
Mutual and commercial marine insurance
The Marine Insurance markets
The available covers
Institute Time Clauses
Hull and Machinery Insurance
P&I Insurance
Loss of Hire insurance
Disbursements insurance
Mortgagee interest insurance
Cargo insurance
War insurance
Energy insurance covers
Case work

Computer-based tools
It's Learning

Learning process and workload
1 ECTS credit corresponds to a workload of 26-30 hours.

The course is conducted through a total of 32 hours of lectures and casework.

As a part of lectures, assignments will be placed on It’s learning. Students are expected to be prepared for class by working with the assignments, as the lecturer will review these assignments in class. Feedback will also consist of the students comparing their solutions with the one that is explained by the lecturer.

Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 20% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials

Examination
The students will be evaluated by the following elements :

Class participation, counting 30 %
Case work throughout the module, counting 20 %
Written assignment, counting 50%

Written assignment to be handed in 3 weeks after completion of the module. Students will work in groups of up to 3 students on the written assignment.

This is a course with continuous assessment (several exam elements) and one final exam code. Each exam element will be graded using points on a scale (e.g. 0-100). The elements will be weighted together according to the information in the course description in order to calculate the final letter grade for the course.

Specific information regarding student evaluation beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one of several elements of the overall evaluation
Examination code(s)
GRA 81881 - Continuous assessment; accounts for 100 % to pass the program GRA 8188, 3 ECTS credits.

The course is a part of a Executive MBA in Shipping, Offshore and Finance and all evaluations must be passed to obtain a certificate for the degree.

Examination support materials
The Nordic marine Insurance plan

Re-sit examination
Re-takes are only possible at the next time a course will be held. When course evaluation consists of class participation or continuous assessment, the whole course must be re-evaluated when a student wants to retake a exam. Retake examinations entail an extra examination fee.

Additional information