Study On Liability Insurance Of Private Maritime Security Companies

Since the1980s, piracy has greatly developed, which has a big influence on the maritime safety and trade. To fight against the pirates, every related parties show the active attitude. The navies from different countries begin to cooperate with each other, such as the establishment of Combined Maritime Forces and EU Operation Atalanta etc. International Maritime Organization and others have given the recommendations respectively. What should be paid more attention is that, the private maritime security companies (hereinafter referred to "PMSC") become more and more popular among the shipping industry, and the market emerges gradually.Nevertheless, the employees of private maritime security companies using weapons against the pirates have caused great disputes. The behavior of transporting, carrying and making use of weapons makes the sea voyage with considerable risks more special. To shift the risk, the liability insurance is the indispensable support for PMSC to enlarge and meet the market requirements, for which international organizations also have put forward some guidances. This paper aims at studying the new market of liability insurance for PMSC, in order to direct domestic insurance industry to participate in the international competition for better development.This thesis consists of four parts, apart from the preface and conclusion.The first chapter starts form the overview of PMSC, including the background, definition, the attitude of international community etc., in order that the readers could have a better understanding of PMSC.The second chapter focuses on the analysis of the legality and necessity of liability insurance for PMSC. The theory and case studies are provided to support the legality of liability insurance for PMSC; the special risks are introduced to highlight the necessity.The third chapter summarizes the status of liability insurance for PMSC, mainly including the covered risks, compensation limits and excluded risks.The forth chapter probes the application of liability insurance for PMSC in China. By discussing the status of PMSC and the difficulties of its liability insurance in China, the suggestions for domestic insurance industry to actively respond to emerging markets are provided.