Study Of Marine Liability Insurance, The Legal System

Liability insurance has been well developed in many countries, especially in England, where the THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT, 1930 was adopted in order to define the rights of parties against insurers in respect of liability insurance. The act described that third parties were entitled to proceed against liability insurers in certain situations. Although marine insurance is the origin of modern insurance, marine liability insurance does not comply with the legislation regime for general liability insurance. The differences show in many aspects. First, the insurer of marine liability is not the common insurance companies but P&l Club. Secondly, P&l Club does not apply to insurance laws or maritime laws but its constitutions. And thirdly, the 'Pay First Rule' existed in constitutions of P&l Club provides that the Association may, as a condition precedent to making any payment under these rules, require that the Member shall first have paid such sums as he may be liable to pay to discharge Liability or Loss for which he is covered by the Association. In other word, the third parties who have been incurred marine liability have no right directly to the Association for compensation when the insured becomes bankruptcy.The above-mentioned problem is what the author is to discuss. The aim of this article is trying to establish a perfect law regime for marine liability insurance, which will apply to the principle for liability insurance and marine insurance. Furthermore, with the introduction and analysis of the THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT, 1930 and the Draft of Third Parties (rights against insurer) Bill,2001, this essay holds that the third party involved in marine liability insurance should be conferred on a direct right against insurer when the insured becomes bankrupt or insolvent. This article is broken into five parts:With the brief introduction of insurance and marine insurance, the marine liability insurance and P&l insurance was quoted and compared. Secondly the marine liability was analyzed exhaustively and then what liability can be the subject-matter insured was further defined.Thirdly, several principles were presented according the status in quo of marine liability. Among them the emphasis is the rule to protect the third party involved in marine liability insurance contract, which is believed to be the most important tenet.The fourth part is marine liability insurance contract. The author mainly discusses the law nature, the participants and the third parties of marine liability insurance.And the last part is the emphasis of this article. With the analysis of the status in quo of the enactments for the third party's right against insurer around the world and the Draft of Third Parties (rights against insurer) Bill,2001 in England, this essay holds that the third party involved in marine liability insurance should beconferred on a direct right against insurer when the insured becomes bankrupt or insolvent. And at the same time the right should be imposed on some restrictions so as to protect the insurer's interest concerned.Wu Kelin (International Law) Directed by Prof. Yang Zhaonan...