Aligning the Kenyan marine insurance law with the best practice of open cover policies

Abstract

Increased international commercial transactions draw nations closer to each other each day. This necessitates the creation of better and efficient telecommunication and transport sectors. For facilitation of convenience and security, the role of insurance cannot be underestimated. In the case of transportation of cargo and passengers on the high seas, marine insurance plays a critical role. This paper examines the practice of marine open cover policies in cargo insurance. The paper examines the legislative framework and whether there is variance with the practice in regard to marine open cover policies. The study primarily focuses on Kenya and briefly compares the practice with other jurisdictions, looking at various aspects of marine insurance especially in relation to the best practice on marine open cover that Kenya can borrow from. In Kenya, the practice of marine insurance is mostly broker driven. The use of marine open cover policies is common and considered convenient especially for persons dealing with large number of shipments over a long period of time. The Marine Insurance Act Cap 390 of 1968 remains the main governing legislation on marine open cover policies in Kenya.