A Study Of Mortgagees' Interest Insurance Clause

The mortgagee was entitled the priority over other creditors while accept compensation paid from the insurance coverage on account of the ship loss. The interests of the ship mortgagee will be prejudiced for the insurer's refusal to the breach of warranty, guarantee or condition. Placing the mortgagees'interest insurance (MII) in oversea market such as Lloyds by the international brokers could solve this problem. Nevertheless, we still do not have such insurance product in China at present. The introduction of MII will face the problem of the inconsistency between foreign MII clauses and domestic laws. In addition, the MII clauses should coherent with the Hull Insurance clauses.To solve these problems, the expressions of part of the MII clauses shall be modified as well as the articles of The Maritime Law of China and The Insurance Law of China. The thesis gives the preliminary discussion to the MII based on the introduction of the concept, characteristics and operating mode. Thereafter it gives deep analyzing to the risks covered by means of the interpretation of the Institute Mortgagees'Interest Clause-Hulls. The thesis tries to give rational proposal to the legislation and insurance clauses formulation after the analysis.