Marine insurance includes:
1. Insurance against loss or damage to:
a. Vessels, goods, freight, cargo, merchandise, profits, money, valuable papers, bottomry and respondentia, and interest in respect to all risks or perils of navigation;
b. Persons or property in connection with marine insurance;
c. Precious stones, jewels, jewelry and precious metals whether in the course of transportation or otherwise; and
d. Bridges, tunnels, piers, docks and other aids to navigation and transportation (Sec. 99)
Note: Cargo can be the subject of marine insurance, and once it is entered into, the implied warranty of seaworthiness immediately attaches to whoever is insuring the cargo, whether he be the ship owner or not. (Roque v. IAC, G.R. No. L-‐66935, Nov. 11, 1985)
2. “Marine protection and Indemnity insurance” which means insurance against, or against legal liability of the insured for loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft or instrumentality in use of ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person. (Sec. 99) Measure of indemnity:
a. Valued policy – the parties are bound by the valuation, if the insured had some interest at risk and there is no fraud (Sec. 156)
b. Open policy – the following rules shall apply in estimating a loss: i. value of the ship-‐ value at the beginning of the risk ii. value of the cargo-‐ actual cost when laden on board or market value at the time and place of lading iii. value of freightage-‐ gross freightage exclusive of primage iv. cost of insurance – in each case to be added to the estimated value (Sec. 161)
