Pay to be Paid: Wording in Marine Insurance Policies


It is common knowledge that most fleet protection and indemnity policies of insurance contain a form of collision clause which provides that if the insured is involved in a collision and as a consequence the insured “shall be liable to pay and shall pay by way of damages”, to the Third Party, then the Underwriters will pay such sum to the insured. It is understood that such requirement means that an insured who has had a claim brought successfully against him must first pay before he could claim indemnification from his underwriters in respect of his liability. Disputes involving this issue often find their way to the courts when the insured for financial reasons is no longer in a position to make the payment.

About Thomas S. Hawkins

Tom is a founding partner of the firm and practices in the areas of maritime law, insurance defence and commercial litigation advising clients on matters relating to marine insurance, arrest of vessels, towage, pollution, collision, terminals, cargo, employment, bodily injury and maritime commercial matters. Tom has conducted cases in the trial and appellate courts of the Federal Court, the British… view full profile »