Decision ID: 000520

In December 1995, in a private session at which only the representatives of 1971 Fund Member States were present, the 1971 Fund Executive Committee decided that the Fund should not take legal action in the United Kingdom against the shipowner’s insurer, since the insurer’s ‘pay to be paid’ rule (ie that the insurer was under an obligation to indemnify the shipowner only for compensation actually paid by the shipowner to an injured party) had been upheld in the United Kingdom courts in recent cases. The Committee also also decided that the Fund should not take legal action against the insurer in Norway (where the insurer’s head office was located), since the legal opinion was that the Norwegian courts would not have juridiction to hear such a recourse action.

Date: 01.12.1995
Category: Legal actions
Subject: Direct action against insurers