Study On The Legal Issues Related To Abandonment In Marine Insurance

Abandonment in marine insurance is an important system in maritime law. It's a legal system which has been widely used in most countries all over the world. This thesis will give a general introduction of abandonment closely associated with our country's law, and will show the author's personal legislative suggestion.The first part introduces some basic concepts of abandonment such as the notice of abandonment. By explaining these concepts we could know much better about the legal nature and effect of abandonment.The second part is concerning about the relationship between abandonment and constructive total loss. They are a couple of inseparable system which can balance the interests of the both parties of the marine insurance contract. The legislative purpose of constructive total loss is protecting the interests of the insured. But if the insured still have the right of the subject matter insured after he has been totally compensated, he will get extra interests. This is against the principle of compensation in insurance law. So for the purpose of balancing the interests between the insurer and the insured, there appears abandonment.In the third part, the author analyses the insurer's rights and obligations on the subject matter insured. The discussion is carried on by both sides whether the insurer accept abandonment or not.The forth part of the thesis is about the relationship between abandonment and subrogation, and the effect on abandonment by discharging contract in advance. Abandonment and subrogation are both legal actions of the insurer who has accepted the transference of rights, but they are of different legal nature. When the subject matter insured is heavily damaged, the insurer will waive his right to the subject matter insured and pay the insured the amount in full to relieve himself of the obligations under the contract.In the last part, the author mainly analysis the legal provisions of maritime code of china on abandonment and shows the author's proposal of the modification of legislation.