The marine market has long dwelt on the legality doubts about ransom payments.
It has been reported that piracy incidents provides hard figures for the intensity of piratical activity off Somalia during 2009. There were over two hundred attacks reported of which about 50 resulted in a hijacking. For more interests affected, the obvious solution shall be to pay the ransom demanded, despite of the current practice to treat a ransom as subject to General Average as triggering a claim on the hull and cargo policies, doubts remain.<\/p>\n
Masefield AG v Amlin Corporate Member Ltd.<\/p>\n
The case arose from the seizure of the laden Bunga Melati Dua in the Gulf of Aden in August 2008 during which a crew member was killed. Several weeks later, owners paid a ransom and the vessel was released. The vessel with her remaining crew and her cargo, were all intact. Despite having their cargo restored to them, the cargo owners Masefield claimed an indemnity from their cargo insurers, Amlin, for the actual or, alternatively, constructive total loss of the cargo (ATL and CTL respectively).<\/p>\n
The decision made by Mr. Justice Steel clarifies on the question. He noted that the issues of public policy must be approached with great caution, relying on the doctrine “should only be invoked in clear cases in which the harm to the public is substantially incontestable.”<\/p>\n
He gave few reasons on why payment of a ransom should not be categorized as contrary to public policy. He points out that the payment of ransom was accepted by Masefield as not being illegal as a matter of English law. Also, the courts should refrain from where legislative action has intervened to make such payments illegal. Although it is true that ransom payments encourage repetition of pirate activity but to date no viable alternative has been identified to secure return crews of seized vessels to safety. He also noted that kidnap and ransom cover is a long-standing insurance market product. While that is a long way from finding that the Courts should not render unenforceable a type of policy just because it is written in the market, this reflects the fact that K&R coverage has been acceptable to the s regulators for decades. market<\/p>\n
A finding that the payment of these ransoms is somehow tainted would have had ramifications well outside this case. Concluding that payment of a ransom is not contrary.<\/p>\n
<\/p>\n
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It has been reported that piracy incidents provides hard figures for the intensity of piratical activity off Somalia during 2009. There were over two hundred attacks reported of which about 50 resulted in a hijacking. For more interests affected, the obvious solution […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[125],"class_list":["post-9062","post","type-post","status-publish","format-standard","hentry","category-circulars","tag-english"],"_links":{"self":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/9062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/comments?post=9062"}],"version-history":[{"count":1,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/9062\/revisions"}],"predecessor-version":[{"id":20842,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/9062\/revisions\/20842"}],"wp:attachment":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/media?parent=9062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/categories?post=9062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/tags?post=9062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}