Risk assessment under clause 6 of hull and machinery insurance according to the 1995 institute time clauses

This study examines the concept of risk in one of the most significant branches of marine insurance, namely hull and machinery insurance, within both national and international legal frameworks, with particular emphasis on the 1995 Institute Time Clauses – Hulls ("ITCH 95"). The primary aim of this thesis is to reveal the legal nature, scope, and consequences of risk in marine insurance, as well as to analyze the innovations introduced by ITCH 95 in this area, from the perspectives of both the assured and the insurer. The first part of the study addresses the historical development of marine insurance. The legal foundations of marine insurance under English and Turkish law are examined comparatively. Special attention is given to the differences between the Marine Insurance Act 1906 and the Turkish Commercial Code, with emphasis on the decisive role of English law in international maritime practice. The second part analyzes the fundamental concepts of marine insurance in order to enhance clarity. Within this context, the notions of insurer, assured, insurance policy, coverage, risk, and premium are explained, while also highlighting the evidentiary documents required in the event of a loss. Thus, the study demonstrates how risk is not only a theoretical concept but also one assessed in practice through concrete instruments of proof. The third part examines the types of marine insurance developed against the wide variety of risks encountered in maritime transport. Hull insurance, cargo insurance, liability insurance, and P&I insurance are discussed separately, with each type's subject matter, scope, legal nature, and practical function explained in detail. The fourth part focuses specifically on hull and machinery insurance. The scope of insurance coverage, the definitions of vessel and ship, as well as the determining elements of risk—such as type, age, tonnage, flag, seaworthiness, classification society, and trading limits—are systematically analyzed. The study underlines how these factors directly influence the level of risk assumed by the insurer and how they are connected to the calculation of premiums. The fifth part provides an in-depth analysis of ITCH 95. In particular, Article 6 is discussed, which sets out the risks covered without reference to negligence and the risks covered in the absence of negligence. Perils of the seas, fire and explosion, theft, jettison, piracy, contact with port or land installations, and natural disasters such as earthquake and volcanic eruption are explained as risks included in coverage. Conversely, exclusions such as war, strikes, malicious acts, and radioactive contamination are examined as circumstances where the insurer is not liable. The findings of this study demonstrate that ITCH 95 represents a turning point in marine insurance. It clarifies the responsibilities of both the assured and the insurer, expands the scope of insurance coverage, and adapts risk allocation to the requirements of modern maritime operations. Although Turkish law does not provide direct provisions for hull and machinery insurance, the prevalence of English law and Institute Clauses in practice has ensured that ITCH 95 has significantly shaped Turkish marine insurance practice. In conclusion, this thesis shows that the definition, scope, and evidentiary tools of risk under ITCH 95 provide contributions to the field of marine insurance, both theoretically and practically.