Compulsory Insurance for Shipowners' Cargo Liability: A Heresy or Logical Step?

Petar Kragić, Legal Counsel, Tankerska plovidba, Croatia

1. If someone wants to introduce an innovation, he has to give arguments against prevailing standpoints that support current status quo. In this article we shall try to give an answer to the question whether the time has come to introduce compulsory insurance for shipowner’s liability for cargo? Current position of shipowner’s liability insurance 2. Over 90% of the world's merchant fleet is entered with the P&I clubs which provide third party liability insurance to the shipowners. The shipowners not entered with P&I clubs are some large shipping companies that have their own insurance arrangement (like captive insurance) and those shipowners who insure their liability with the commercial insurance market together with hull insurance or separately.

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Croatia Insurance Shipping December 2009 Vol. 3, No. 9, Autumn 2009

Petar Kragic

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Petar Kragić has an MA and PhD in maritime law. He is author of a legal textbook Tanker Charteparties and a number of articles on maritime law topics. He is speaker at maritime conferences. Currently he is chairman of the Croatian Maritime Law Association and titular member of CMI. He was a member of CMI drafting committee for Rotterdam Rules and a member of the Croatian delegation to UNCITRAL. He is former chairman of the legal committee of Croatian Chamber of Shipping and a member of the drafting committee for Croatian maritime. For a number of years he was director of a major P&I Club and SiGCo.

Tankerska Plovidba

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Tankerska Plovidba operates as an independent shipping company in Croatia. It operates a fleet of tankers and bulk carriers. The company’s fleet comprises Suezmax and Aframax size crude oil carriers and handysize bulk carriers.. Tankerska Plovidba was founded in 1955 and is headquartered in Zadar, Croatia.

Croatia Insurance Shipping December 2009 Vol. 3, No. 9, Autumn 2009