Research On Insurance Problems About Pirates Ransom

As an oldest man-made risk at sea, the pirates are always accompanied by human navigation and maritime trade. But along with the rapid development of economic globalization and international trade, the traditional pirates of killing and robbing, now has developed into modern pirates who hijack ship and cargo only for the purpose of demanding ransom. Facing the modern pirates who usually demand ransom, the way of underwriting the traditional pirates risk cannot adapt to the current situation.New challenges and requirements with respect to the insurance industry emerge.This paper is divided into five parts of the analysis of Pirates ransom.In Chapter Ⅰ, from the origin, definition and development of the pirates, I analyze the definition, characteristics and types of pirates ransom, and emphasize the difference between traditional and modern pirates, put forward clearly definition to maritime law of our country to deal with piracy, and I clarifiy three classification of ships, cargo and personnel ransom.In Chapter Ⅱ, this paper analyzes the legality of the pirates ransom.First,I analyze conditions and principles of ransom payments;and secondly,I compare the different foreign opinions about pirates ransom,and differentiate the standpoints of British and American about pirates ransom;Again, according to the different attitudes of different countries that the dispute between legal and illegal issues to pirate ransom, combined with situation that our country has no clearly legal rule,I propose that we should establish the legitimacy of the pirate ransom payment by changing the law or enforcing relevant judicial explanation.In Chapter Ⅲ, Analyze pirate ransom insurance status. Firstly,this chapter make a comparative study of different countries of present marine hull insurance system that the situation about hull insurance underwriting the pirate risk;secondly, compare the situation of cargo insurance underwriting the pirate risk among different countries of goods insurance system; once again,investigate attitude of the Shipowners Mutual Assurance Association about pirate risk analysis; finally, introduce the new development of marine insurance market--pirates ransom insurance.In Chapter Ⅳ, this paper studys insurance coverage of pirates ransom and points out the dangers and losses and exclusions that pirates ransom risks should be insured.In Chapter V, by the above analysis, combined with the current conditions of Chinese law, this paper advise that China should first establish the pirates ransom insurance to solve a variety of cost allocation problems that caused by the pirate ransom payment. Secondly, if it is difficult to establish the new insurance situation, we can expand the coverage at war risks,and put the pirate ransom into war risk insurance underwriting that combined with our existing insurance system;Finally, if the first two methods are difficult to achieve, I suggest that we can put pirate ransom insurance into indemnity insurance underwriting to solve the problem that commercial insurance won’t cover.