PDI - Marine and Aviation Insurance

Learning Outcomes

On completion of the module, students are expected to be able to:

• outline and assess the principal factors involved in the assessment of marine cargo risks according to different business activities;

• define and analyze the scope and the start-to-end practice of principal marine documents and insurance contracts according to the nature of business and the need of the company;

• interpret and perform calculations on insurance matters including underwriting, average loss and claims recoverable according to requirements of the insured and the insurer under different factors of consideration; and

• apply concepts of marine hull risks and basic insurance coverage related to insurance in hull, aviation and space scenarios.

Learning Contents

1. Overview of marine insurance

• The need for marine insurance
• Definition of marine insurance contract
• Hong Kong Marine Insurance Ordinance (Marine Insurance Act 1906)
• Marine policy document, Incoterms etc.,
• Types of marine policies
• Subject-matters of marine insurance
• Legal principles as applied to marine insurance and liability
• The marine insurance market, P&I clubs and overseas trade
• Introduction to contracts used for international sale of goods, bills of lading

2. Marine Risk assessment and underwriting

• Information and factors for risk assessment and underwriting on hull and cargo insurance
• Underwriting conventional and containerized shipments, bulk cargoes
• Common causes of hull and cargo damage
• Methods of loss prevention and reinsurance

3. Marine claims

• Insured and excluded perils
• Types of loss
• Expenses incidental to marine claims
• Documentation for hull and cargo claims
• Roles of organisations relating to marine claims
• Introduction to General Average, York-Antwerp Rules, Hague-Visby Rules, Warsaw Convention

4. Introduction to Institute clauses

• Introduction to Institute Clauses, Coverage, Extensions, Exclusions, etc.
  • Institute Cargo Clauses (A, B & C)
  • Institute Cargo Clauses (Air)
  • Institute War Clauses

• Basis of Hull clauses
  • Institute Time Clauses (Hulls)
  • Institute Yacht Clauses
  • Institute Speedboat Clauses

5. Fundamentals of aviation insurance

• The aviation insurance market
• Scope of cover for hull policy
• Other kinds of aviation insurance
• Information and factors for risk assessment and underwriting on aviation insurance
• Space (satellite) insurance

Entry Requirements:

• Five HKDSE subjects at Level 2 or above, including English and Chinese Languages with 2 or more years relevant full-time work experience; or 
• Five HKCEE subjects at Grade E/Level 2 or above, including English* and Chinese Languages with 3 or more years relevant full-time work experience; or 
• Completion of a QF Level 3 programme that is deemed acceptable to the respective Programme Committee; or 
• Relevant Recognition of Prior Learning (RPL) qualification(s) at QF Level 3 or above AND a pass in an admission interview; or 
• Other relevant verifiable prior learning and/or work experience that is/are deemed appropriate by respective Programme Committee AND a pass in an admission interview.