Impact Of Changes In The Carrier’s Liability Under "Rotterdam Rules" On The System Of Disclosure Of Marine Insurance

The changes of the provisions and rules of "Rotterdam Rules"redistribute the rights and obligations between ship-owners and cargointerests. It’s essentially a matter of the risk-sharing and benefit-allocationissues of the two sides, which turns into the risk-sharing andbenefit-allocation of the insurer of both sides. However, the system ofdisclosure of marine insurance is the cornerstone to establish the insurancerelationship of the insurer and the insured.In order to understand how "Rotterdam Rules" will affect the system ofdisclosure of marine insurance, we must firstly figure out what adjustmentshas been made to its previous rules. This paper discusses the redistribution ofrights and obligations between ship-owners and cargo interests in the view ofthe increased carrier’s liability by modifications of "Rotterdam Rules"."Rotterdam Rules" increased carrier’s liability by changes made in theobjective aspects of seaworthiness time，seaworthiness main body，obligationof caring of cargo and time of caring of cargo, while the main body of liability of seaworthiness and caring of cargo respectively extends to themaritime performing party and shipper, and the documentary shipper andconsignee.Accordingly, the system of disclosure of marine insurance is alsoaffected by these adjustments. As the "Rotterdam Rules " added maritimeperforming party and the main body of liability of caring of cargo, the duty ofdisclosure greatly expanded accordingly. Considering the carrier’s liability, asthe increased liability of the carrier and decreased liability of the cargointerests, their duty of disclosure increased or decreased respectively.However, the reallocation of the duty of disclosure does not generate thecorresponding effect on the interests of the marine insurance parties."Rotterdam Rules" readjusted the interests of the cargo interests, the insurerof cargo interests, carrier as well as P&I Clubs. This kind of adjustment isnot a trade-off process between the subject interests for marine insurance. Itmay cause some negative effects on P&I Clubs while decrease freightinsurers interests.Further improvements should be made for the system of disclosure toadapt the changes in "Rotterdam Rules": to add the insurer assist people intothe main body of the disclosure and better define the range of duty ofdisclosure.