Analysis Of The Nature And Allowance Of The Pirate Ransom

In recent years, active pirates have brought serous blocking to the marinetransport in the world, and great losses and troubles of the parties of such transportand their countries, which have been aroused widely concerned by all the countries inthe world. A series of international political and economic problems have been raisedthereof. Among them, how to allocate pirate ransom shall be the one which bringssignificant effect to the ocean shipment. For existing pirate matters, pirates hijackedships and required huge amount of ransom. In order to protect safety of personnel andcargo in the ship, the owner of such ship had to pay such ransom subject torequirements of pirates. When the ship arrived at the port of destination, the owner ofthe ship would ask the owners of cargo to bear such ransom together or have a lien onthe cargo. The owners of cargo should require the insurance company to pay for suchallocation of ransom in accordance with insurance terms of cargo shipment. Butfinally, whether each party will obtain its expected compaction is controversial. Actsof pirates are defined to be illegal so as that whether pay the ransom is legal or not iscontroversial. In case ransom is allocated according to general average, the legality isa big dispute and in case of that, shall such losses arising from this be compensatedaccording the traditional insurance terms? The pirate insurance is listed in the war riskinsurance of ocean shipment and aims to losses of cargo or the ship incurred for theviolent usurpation of pirates. But nowadays pirates only hijack ships for ransom, notfor making material injury to the cargo and personnel in the ship. So whether thepirate ransom shall belong to the extent of pirate insurance is reputable. Thus, in order to make resolve for the said problems, this text will analyze thecomposition and nature of the pirate ransom, and then, according to the requirementsof general average, make the analysis whether the pirate ransom and all of itscomposition shall belong to the general average. In addition, make the analysis of therisk of the pirate ransom in order to make sure if such risk shall be insured accordingto the nature of the pirate ransom, which shall be used to make sure whether the partsallocated to each party shall be insured to protect the ocean transportation in order.