International Law And Maritime Insurance

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Introduction The international society pays more attention to the age old crime of piracy in recent years since the surge of pirates based in Somalia. In facing of increasing number of kidnaps and mint ransoms asked by piracy, people accord great importance to the insurance clauses which cover losses by piracy. In this regards, it is really necessary to research on the insurance clauses of piracy. In this report, the author will firstly describe the general background of piracy and then discuss the legal implication of the seizure by pirates of cargo insured under a policy providing coverage for loss by piracy. Definition of piracy Definitions of piracy are distinction between international law and maritime insurance. United Nations…show more content…
Moreover, schedule 1, rule 8 of the Marine Insurance Act 1906 provides that ‘the term “pirates” includes passengers who mutiny (Palmer v Naylor, 1854) and rioters who attack the ship from ashore (Nesbitt v Lushington, 1792)’. The Feature of Modern Piracy Modern day piracy is characterised by automatic weapons and rocket-propelled grenades that are used in an attempt to board and hijack vessels. The growth of this type of piracy more recently has especially been evident off the coast of Somalia and the Gulf of Aden, which accounted for more than half of the reported piracy incidents worldwide in 2011. A prominent feature of modern day piracy is the ransom that is demanded for the safe release of the ship, cargo and crew. Once the attack is successful, the ship and cargo are usually returned undamaged on payment of the ransom and the crew is usually unharmed (Lambrou, 2012). The Insurance Cover Marine Insurance Policy is split between the ships and the cargo. When coverage is for goods it is termed a Cargo Insurance Policy; when the ship is covered, it is termed Hull Insurance Policy. In relation to hull insurance, the peril of piracy is insured as marine risk under Institute Time and Voyage Clauses Hulls 1983 and the International Hull Clause 2003. In addition, the pollution claims or crew claims caused by piracy are covered by Protection and Indemnity Club (Gauci, 2010). In relation to cargo
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