What is Collision Coverage?

Collision liability is a basic clause in the ship insurance contract that the insurer assumes liability for collision compensation

Collision liability

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Collision liability is a basic clause in the ship insurance contract that the insurer assumes liability for collision compensation

Collision liability is a basic clause in the ship insurance contract that the insurer assumes liability for collision compensation. However, this clause only applies to the liability of the insured for losses caused by collision between the insured ship and other ships. Collision liability is a general underwriting in a ship insurance contract. However, the amounts paid by the insurer are different. Take the London Insurance Association's ship insurance clause as an example. The new ship insurance clause revised by the association in 1983 stipulated that the insurer's liability for collision compensation for the insured was 3/4 of the amount of damages paid by the insured to a third party, so this clause is also called " Three-quarter collision liability clause ", that is, the British ocean shipping insurance collision liability insurer is only responsible for 3/4, the other 1/4 collision responsibility is left to the shipowner himself, and the shipowner should bear 1/4 of the collision Liability can be passed on to the Shipowner's P & I Association (the Shipowner's Insurance and Compensation Association, which is the shipowner's mutual insurance organization). China's ship insurance clause does not have this independent clause, but according to the scope of liability, the insurer bears 4/4 of insurance compensation liability for the collision liability of the insured ship.