Perils of the Seas and Inherent Vice in Marine Insurance Law
Hull insurance and ‘perils of the sea’
The term ‘perils of the sea’ has been kept in the Hull Clauses, whereas the Institute Cargo Clauses (ICC) have not retained the phrase. Although there has been a considerable body of case law which has dealt with the term ‘perils of the sea’, it has proved to be impossible to find alternative wording. The ICC have adopted different wording from that of the older Ship and goods (SG) policy. After full consideration, the all risks method was not embraced for hull insurance, and preference was given to the ‘named perils’ approach. Thus, all perils are stipulated in the body of the Institute Hull Clauses, unlike the standard perils contained in the SG policy.1 ‘Perils of the sea’, applying to both ship and goods, is clearly an insured peril under the old SG policy and is also an insured peril under the current Institute Hull Clauses.2 Named perils, stipulated in the old SG policy, were repeated in the Hull Clauses.