Editing Contracts/Deviation
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==Insurance issues== | ==Insurance issues== | ||
When goods are carried by sea, they are effectively insured twice. First, prudent cargo-owners (shippers or consignees) will insure their cargo, and, secondly, carriers (shipowners) will have cover for third-party liability from their [[Protection | When goods are carried by sea, they are effectively insured twice. First, prudent cargo-owners (shippers or consignees) will insure their cargo, and, secondly, carriers (shipowners) will have cover for third-party liability from their [[Protection & Indemnity Club|P&I Club]]. If the carrier is responsible for causing loss or damage, the P&I Club will pay; but if the carrier can avoid liability, say, via an exemption clause or via Article IV of the Hague-Visby Rules, the cargo-owner will have to make a claim on his own insurance. | ||
If an unjustified deviation occurs, the voyage has changed, and the insurer may be discharged from subsequent liability. Under the policy, the insurer accepts only the agreed risks. A crucial policy requirement is that the ship shall proceed to her port of destination by the shortest and safest route (or usual route), and not to make any unjustified deviation. | If an unjustified deviation occurs, the voyage has changed, and the insurer may be discharged from subsequent liability. Under the policy, the insurer accepts only the agreed risks. A crucial policy requirement is that the ship shall proceed to her port of destination by the shortest and safest route (or usual route), and not to make any unjustified deviation. |