Research On The Duty Of Disclosure In Marine Liability Insurance

The Marine Insurance developed along with marine trade. The initial purpose of this system was to avoid risks during the marine transportation and consummates in the practice as a commercial system. The duty of disclosure as one of the parts in Marine Insurance played a significant role and functioned pretty well. This paper aims to study the duty of disclosure in marine liability insurance. In practice, if the insurance applicant breaches the duty of disclosure in marine liability insurance will face serious consequences. The original intention of marine liability insurance is to protect the victims of the third party. Therefore, conflictions between marine insurance and marine liability insurance will be occurred if just transfer one system to another mechanically. When building the new system of marine liability insurance, we need to give the fresh meaning of the duty of disclosure. The original intention of marine liability insurance is to protect the victims of the third party and the insurer is still unpredictable about whether the insurance applicant fulfills its duty of disclosure under the utmost good faith. At the same time, the interest of insurer needs to be protected correspondently.This paper starts from the meaning and historical interpretation in the duty of disclosure of marine liability insurance, carrying out the pre-bedding and the current status of this system in nowadays, which found an urgent demand in foundation of the marine liability insurance, as well as the new system to build on my own humble opinion. This paper will choose the angle of legal attribute to analyze the duty of disclosure both in common law and civil law system, as well as the limitations and combinations in the field of fault attributes and no-fault attributes in civil law, analyzing the effect of the current legislative status in the duty of disclosure of the marine liability insurance to the information asymmetry. Because the insurance applicant who masters the information about the insurance subject more than the insurer that leads to them positioning in the inferior, refusing to accept insurance or improving the fees of insurance becomes the method to avoid the risks of information asymmetry in marine liability insurance. In order to refrain from the situation becomes worse and worse, the insurance applicant volunteering to form a protection and indemnity club(characterising in volunteer club rather a company), which bears the one fourth insurance fees that cannot compensate from the insurance company. Through the thorough and thoughtful interpretation of the duty of disclosure in marine liability insurance, I recommend several proposals fromthree angles: the range of application, the scope of established standards, the legal consequences. The range of applicant should be extended to the whole process during the implementation of the contract rather than before the conclusion of the contact. On the establishment of standards, decreasing the risk in the performance of contact to add the new concept about subjective criteria and the prudent insurer. As regards the legal consequences of willful misconduct or gross negligence against the insured did not inform the case, subdivision different legal consequences.