Su- Lin is the CEO of a large shipping company, the company has been contacted to carry a large shipment of argyle diamonds from the Port of Darwin to the Port of Melbourne. The diamonds are valued at $10 million.

Su-Lin asks Sarah to ensure that there is a contract for marine insurance entered into for the diamonds and to ensure that the insurance covers the risk of piracy.

Sarah phones Marine Insurance Co. Pty Ltd and discusses with Steven the proposed coverage. Steven advises that the insurance contract will cost $1,000 for the voyage and given the high risk of piracy off the coast of Sydney, to ensure against piracy there will be a premium of $200.

Sarah, says that they will pay the premium.

Steven does not issue any written contract.

Pirates board the ship off Mosman and steal the diamonds.

Advise

• Sue-Lin is there a contract of Marine Insurance in place give your reasons.

Answer rating: 100% (QA)

ANSWER There is no contract in place between the parties because in such a case where the value of diamonds are such large a written contract should t... View the full answer