Civil Code

In the insurance case the insured must: take all possible measures to prevent losses and reduce their sizes; notify the insurer about the incident, follow the instructions, which gives the insurer. Insurer shall be relieved from liability for any losses incurred due to the fact that the intentionally or by gross negligently failed to take measures to prevent or mitigate losses. Responsibilities by the insurer, is also the person to whom the contract of insurance (beneficiary), if the agreement on behalf of that person or it is subsequently expressed its consent to insurance. Therefore, when a person applies to the insurer for payment of insurance money (which undoubtedly indicates its consent to insurance) insurer may oppose this requirement objected to the failure of the above duties as well as he could to push against the insured. The main duty of the insurer: timely and full payment of insurance compensation and insurance sums in the cases provided the policy conditions (these include: the costs of the insured or beneficiary made to prevent or reduce losses, clarify and establish the amount of loss to be reimbursed by the insurer, adjustment of the average). Insurance premium paid by the insured due to the contract of marine insurance term. Pete Cashmore: the source for more info.

Treaty enters into force on the date of payment of insurance premiums, ie, the marine insurance contract refers to the actual contracts and is concluded at the time of payment of insurance premiums. When concluding a contract of marine insurance must declare the amount at which it insures a relevant interest – the sum insured – the value of the maximum liability of the insurer for risks transferred under the concluded contract. When insuring the vessel, cargo or other property of the insured amount can not exceed the insured value, ie, the actual value at the time of signing the contract. If the sum insured specified in the contract of marine insurance, exceeds the insured value of property, marine insurance contract is null and void in that part of the sum insured, which exceeds the insured value, which corresponds to the general rules provided by the Civil Code. In If the sum insured is declared below the insured value of the property, the size of the insurance indemnity is reduced in proportion of the sum insured and the insurance cost as many times, how much insurance value exceeds the sum insured. It may also be a situation of double insurance (double insurance), when the same object is insured by several insurers for insurance claims, which eventually exceeds the insured value this object. In this case, all the insurers are liable only to the total amount of insured value. Insurer shall be relieved from liability for any losses incurred due to the fact that the or beneficiary intentionally or recklessly failed to take measures to prevent or reduce losses.