Question

What is the accumulation of risk in marine cargo insurance?

a.

Several consignments are carried in the same vessel

b.

Consignments are carried by more than one vessel at the origin or destination ports

c.

Both a and b

d.

None of the above

Answer: (c).Both a and b Explanation:Policies for marine cargo insurance are for individually small amounts but since several consignments are carried in the same vessel, accumulation of liability is an important feature. Accumulation of risk can also occur for consignments carried by more than one vessel at the origin or destination ports.

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Q. What is the accumulation of risk in marine cargo insurance?

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