New Jason Clause in Marine Insurance

Marine insurance acts as a safety net for businesses engaged in maritime transport. It is governed by the Marine Insurance Act of 1963 and regulated by IRDAI. Marine insurance shields against financial losses caused by damage or loss to cargo, ships, and other vessels during their journey.

The New Jason Clause impacts how cargo owners share financial burdens in maritime emergencies. It requires them to contribute to the "general average," a situation where sacrifices are made (like jettisoning cargo) to save the ship and remaining cargo.

This New Jason Clause in marine insurance is important because it forces cargo owners to contribute even if the ship's captain or crew were negligent.

Historically, ship owners could not recover general average losses from cargo owners if their negligence caused the emergency. The New Jason Clause, included in bills of lading after the Carriage of Goods by Sea Act of 1936, changed this.

Now, cargo owners share the financial burden regardless of fault. This protects ship owners from significant financial losses due to their own mistakes.

Marine cargo insurance is necessary for international trade. It safeguards everyone involved in the shipment. But for newcomers, these policies can be confusing. To understand this complexity, let us explore the key clauses within the policy.

Institute Cargo Clauses: Institute Cargo Clauses covers all risks except exclusions like nuclear peril, war, and inherent vice.

Valuation Clause: The valuation clause sets the agreed value of your stuff to determine the amount paid if it is lost.

'At' and 'From' Clause: This clause outlines exactly when your coverage starts and when it ends.

Sue and Labour Clause: This clause helps save your insured stuff by stating steps to minimise damage and prevent further loss.

Warehouse to Warehouse Clause: Warehouse to Warehouse Coverage shields your cargo from the origin warehouse to the final destination warehouse.

Memorandum Clause: The "memorandum clause" excludes natural issues with your goods, like spoilage, wear and tear, inherent defects, and normal leaks.

Change of Voyage Clause: The Change of Voyage Clause permits controlled deviations from the originally planned route, without jeopardising insurance coverage.

Inchmaree Clause: The Inchmaree Clause protects against losses caused by captain/crew negligence, vessel defects, and machinery failures.

Jettison Clause: The Jettison Clause grants coverage for the deliberate sacrifice of cargo by throwing it overboard during a maritime emergency.

The complexities of international shipping can leave businesses exposed to unforeseen risks. Tata AIG's comprehensive marine insurance solutions offer a safety net for your valuable cargo. We cater to your specific business needs. We provide customisable coverage options like cargo and hull insurance, along with flexible open policy structures.

Our marine insurance policy goes beyond basic protection. We offer additional liability coverage. It ensures you are protected from financial repercussions arising from property damage or crew member injuries.

With Tata AIG marine open policy, you can navigate the world of international trade with confidence. Our clear and transparent policies help you make the most of your maritime trade.

Do not let the potential for loss disrupt your business endeavours. Choose Tata AIG's marine cargo insurance and experience the peace of mind that comes with knowing your valuable goods are protected every step of the way.

What is the new both to blame collision clause?

The both-to-blame collision clause, found in ocean marine insurance policies, applies when ships collide due to the negligence of both captains. In this scenario, the clause compels each ship owner to share in the financial responsibility for damages to their vessel, not necessarily a complete loss.

What is the general average sacrifice or expenditure?

The general average sacrifice refers to intentional and reasonable actions taken during maritime voyage to preserve the ship, cargo, or crew. This process may involve jettisoning cargo.

Does the New Jason Clause cover all kinds of negligence?

No, the New Jason Clause does not cover all types of negligence. It covers general average sacrifice that happens due to ordinary negligence but excludes coverage if the ship owner acted with intent to cause harm.

How does the New Jason Clause impact the distribution of losses in maritime incidents?

The New Jason Clause ensures that losses from general average sacrifices or expenditures are distributed among all parties with a financial interest in the voyage. It includes both ship owners and cargo owners, based on their proportional value of interests.