Consulting Services Secure & Reliable

The local insurance industry has experienced a significant dilution in expertise over the past 15 years. Amongst other reasons, the implementation of strict compliance regulation has had the negative effect of forcing many of the senior practitioners into early retirement. This has resulted in many companies in the industry being forced to employ inexperienced or ill-equipped personnel in senior, decision making positions.

Trident Advantage (Pty) Ltd. has identified this as a major concern affecting customers, brokers and insurers alike. We therefore offer specialist consulting services to not only the industry but also to non-Trident insurance clients who would like an independent evaluation of their insurance products.

At present Trident’s services are limited to Marine Insurance products although, we are able to offer access to specialists on non-marine products.

Contact us now to quote for all your specific needs

General Principles of Insurance What is it all about?

Marine Insurance policies often refer to “Perils of the Sea”. It can be very confusing as to what exactly this term refers to. Whilst the legal definition of differs from country to country, the term generally includes “accidents and dangers peculiar to maritime activities”. This would usually include:-

  • Storms, waves, and wind
  • Collision
  • Grounding
  • flooding, sinking and capsizing
  • loss of propulsion or steering
  • and any other hazards resulting from the unique environment of the sea.”

It should be borne in mind that there is a distinction made between “Perils of the Sea” and “Perils on the Sea”. The latter include perils which could also occur on land, such as:

  • “fire, smoke and noxious fumes”
  • Good faith
  • Indemnity
  • Subrogation
  • Contribution
  • Insurable Interest
  • Proximate Cause

As the insured is your duty to disclose all material facts to the risk being covered.

A material fact is any information which would influence the insurer in deciding whether to accept a risk for insurance and on what terms (premiums or deductibles) or conditions (the extent to which cover is provided). The duty to disclose exists at the time of inception (including when completing proposals or providing information to your broker), at renewal and at any point mid term.

The purpose of Insurance is to place the Insured back in the same monetary position that he/she enjoyed immediately before the happening of an Insured event. In the event of a claim the insured must:

  • Prove that the event occurred (and that the event is insured in terms of the policy)
  • Prove that a monetary loss has occurred as well as the extent of the loss
  • After being Indemnified, to transfer any rights which he / she may have for recovery from another source to the Insurer.

The right of an insurer which has paid a claim under a policy to step into the shoes of the insured and exercise in the insured’s name all rights he / she might have against any responsible parties.

Subrogation is a feature of the principle of indemnity and therefore only applies to contracts of indemnity and so does not apply to life assurance or personal accident policies. It is intended to prevent an insured recovering more than the indemnity he receives under his insurance (the full amount of his loss) and enables the insurer to recover or reduce its loss.

The right of an insurer to call on any other insurers who insured the same risk, but not necessarily for an equal value, to share the loss of an indemnity payment. The insured has the option which insurer they wish to claim from and that insurer then has the right to call on any other insurers liable for the loss to share in the claim payment.

Any party wishing to claim under an insurance policy needs to prove that they have an insurable Interest in the subject of the claim; that is that they stand to benefit from its preservation and will suffer from its loss.

In non-marine insurances, the insured must have insurable interest when the policy is taken out and also at the date of loss giving rise to a claim under the policy. In marine insurance, insurance interest is required at the time of loss.

An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril. This means that the loss must be directly attributed to an insured peril without any break in the chain of causation.