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Kenyalang Spices Ltd sold white pepper powder to Tescasda Ltd. on CIF. Kenyalang Spices Ltd arranged a ship The Manok to deliver the goods from

Kenyalang Spices Ltd sold white pepper powder to Tescasda Ltd. on CIF. Kenyalang Spices Ltd arranged a ship "The Manok" to deliver the goods from Pontianak, Indonesia to Newcastle in UK. Kenyalang Spices Ltd has arranged an insurance policy, ICC (A), with Bujang Senang Insurance Ltd. Kenyalang Spices Ltd handed over the bill of lading, an invoice and the insurance policy to Tescada Ltd. After receiving the bill of lading, Tescada Ltd has also acquired an insurance certificate with the coverage of peril of the sea and fire from Bujang Senang Insurance Ltd. A week after the ship started the voyage, Tescada Ltd instructed the seller to deliver the goods to Port Portsmouth due to the riots in Newcastle. Kenyalang Spices. Ltd. ordered the shipmaster to deliver the goods to Portsmouth and also informed the Bujang Senang Ltd. Then a clause has been inserted in the policy as follows:"where, after attachment of this insurance, the destination is changed by the assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the insurer." At Port Portsmouth, the vessel met with heavy weather and went aground. Advise Kenyalang Spices Ltd. Would there be any changes in your answer if the seller did not inform the insurer of the destination of the ship? Objectives: Students are required to find out the nature of insurance, principles governing marine insurance and ICC(A). Students are required discuss the liability of the insurer and the insured under statute laws and case laws. Students should make conclusion on the liability of the insurer based on the proximate causation. This assignment will provide the students a sound understanding on the importance of marine insurance in international trade

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