The Research On The Insurance Clauses Of Piracy

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 the pirates, 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.This article is consisted of introduction, content and conclusion.The preface mainly analysis the immense influence on the shipping department by the surge of number of piracy attacks in recent years. Especially pirates take new method to gain huge profit by kidnap the whole vessel and asking for ransom. So this article mainly research on the insurance clauses which cover losses by piracy, as well as analyzing the share of responsibility of the insurance caused by the ransom asked by pirates. Furthermore, the preamble introduces the theme and scope of the subject with brief comments on the literature available in the scope of subject.Chapter One mainly states the relevant basic theory and current situation to lay the foundation of the analysis on the ransom in the following chapter. It consist of the separate concepts in international law and insurance law, the differences between piracy and terrorist, the pirates'way of act and type of losses caused by piracy, as well as the solutions that currently in use.Chapter Two illustrates different kinds of insurance clauses which cover the losses caused by piracy currently, and analyzes the main problems among them including the character of the ransom, the establishment of the insurance contract, the coverage of insured events and losses, the exclusion as well as the share of the premium.Chapter Three shall be taken as a conclusion that illustrates the solutions of the problems stated in chapter two. The main measure is that the framework of the insurance which cover losses caused by piracy should be straighten out and restructured in order to meet the need of the practice.