MARINE INSURANCE ACT
Act · Finance
An Act codifies the law of marine insurance in Nigeria, governing contracts for ships, cargo, and freight. It targets shipowners, cargo owners, and insurance underwriters, outlining their obligations. This ensures clear protection of interests in marine activities.
What Is This Policy?
This Act codifies the law of marine insurance in Nigeria, governing contracts of insurance on ships, cargo, freight, and other marine interests, setting out the obligations of insurers and the insured.
Who Does It Target?
Shipowners, shipping companies, and vessel operators Cargo owners, importers, exporters, and freight forwarders Marine insurance underwriters and brokers operating in Nigeria
What Does It Aim to Achieve?
To provide a clear and comprehensive legal framework for marine insurance contracts in Nigeria, protecting the interests of cargo owners, shipowners, and underwriters by defining their rights and obligations.
Key Features
Insurable Interest: Sets out the requirement that an insured person must have a genuine financial interest in the subject matter to obtain a valid marine insurance policy Policy Terms and Conditions: Defines the standard terms, warranties, and conditions that govern marine insurance contracts in Nigeria Proximate Cause Principle: Establishes the rule that insurers are liable only for losses proximately caused by an insured peril Subrogation: Grants insurers the right to step into the shoes of the insured after paying a claim to recover losses from responsible third parties Average and Total Loss: Defines the rules applicable to partial losses (particular and general average) and total loss of the insured subject matter
Current Status
Rollout Stage: In force; applied by courts and arbitration panels in marine insurance disputes Coverage: Nationwide; applicable to all marine insurance contracts governed by Nigerian law Funding: Not applicable; applied through premium income and private insurance market operations
How to Access
Cargo owners and shipowners can obtain marine insurance through licensed underwriters and brokers in the Nigerian insurance market. Submission of a proposal for marine insurance to a licensed marine insurer or broker Full disclosure of all material facts relevant to the risk Payment of agreed premium before the policy takes effect Application method: Licensed marine insurance underwriters and brokers; National Insurance Commission, Abuja, for regulatory matters
Official Resources
Website: www.naicom.gov.ng
Legal Framework
Enacted under the legislative authority of the National Assembly pursuant to Section 4 of the 1999 Constitution. Operates alongside the National Insurance Commission Act 1997, the Insurance Act 2003, the Admiralty Jurisdiction Act 1991, and the International Convention on Maritime Liens and Mortgages to which Nigeria is party.