Lesson Notes By Weeks and Term - Senior Secondary 2

Term – 2^nd Term

Week: 2

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Marine insurance II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. List and explain the types of marine losses

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

MARINE INSURANCE

TYPES OF MARINE LOSSES

Marine losses can be divided into two main parts containing several

subparts;

A.) Total loss:

i.) Actual total loss: This is a type of loss which occurs when the goods are

completely destroyed by fire, when a ship sinks after collision or when the

goods have been affected by sea water such that they are no more fit for

the purpose intended. There is an actual total loss where the subject matter

insured is destroyed or so damaged as to cease to be a thing of the kind

insured. When a vessel is foundered or when merchandise is so damaged

as to be valueless or when the ship is missing it will be an actual total loss.

ii.) Constructive total loss This is a loss that occurs where the subject matter is not actually lost but is reasonably abandoned because what is left is beyond economic repairs, i.e. the cost of repairs is more than the value. (involving expenditure which would exceed the value of the subject-matter.)

B.) Partial loss:

Partial loss

This is a loss that occurs where only part of the property or goods insured

is lost or destroyed or damaged.

i.) Particular average loss

This is a loss that is fortuitous or accidental. It cannot be partially shifted to

others but will be borne by the persons directly affected. It is not suffered

for the general benefit of all on board a vessel, e.g. collision between ships

or when the propeller blade is damaged. In this case, loss is borne by the

owners of the object affected.

ii.) General average Loss

This is a loss that is caused by an extraordinary sacrifice or expenditure

voluntarily and reasonably made (or incurred) at the time of peril for the

purpose of preserving the property imperiled in common adventure. It

occurs when the ship master, for the interest of the parties, deliberately and

reasonably throws overboard or jettisons some of the cargoes in order to

lighten the ship so as to reduce loss. The expenses will be borne by all

parties concerned, e.g. during storm, some of a ship’s cargo can be

jettisoned

EVALUATION:    1. List and explain the types of marine losses

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively