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The Provisions of the Supreme People's Court on Several Matters concerning the Trial of Cases Involving Marine Insurance Disputes
Promulgation Date:2006-11-23  Promulgation Number:Announcement of the Supreme People's Court have been adopted at the 1405th meeting of the Judicial Committee of the Supreme People's Court on November 13, 2006. They are hereby released and shall enter into force as of January 1, 2007.The Supreme People's CourtNovember 23, 2006Fa Shi[2006] No. 10  Promulgation Department:The Supreme People's Court
Announcement of the Supreme People's Court The Provisions of the Supreme People's Court on Several Matters concerning the Trial of Cases Involving Marine Insurance Disputes have been adopted at the 1405th meeting of the Judicial Committee of the Supreme People's Court on November 13, 2006. They are hereby released and shall enter into force as of January 1, 2007. The Supreme People's Court November 23, 2006 The Provisions of the Supreme People's Court on Several Matters concerning the Trial of Cases Involving Marine Insurance Disputes Fa Shi[2006] No. 10 For the purposes of correctly trying the cases concerning marine insurance disputes, the present Provisions are released subject to the related provisions in the Maritime Law of the People's Republic of China, the Insurance Law of the People's Republic of China, the Special Maritime Procedure Law of the People's Republic of China and the Civil Procedure Law of the People's Republic of China. Article 1 The Maritime Law shall apply to the trial of cases involving the disputes over marine insurance contracts; where there is no such provision in the Maritime Law, the related provisions in the Insurance Law shall apply; and where there is no such provision in the Maritime Law and the Insurance Law, the related provisions in the Contract Law shall apply. Article 2 The provisions in the Insurance Law shall apply to the trial of the cases concerning the disputes over marine insurance contracts with the port facilities or docks as insurance objects that do not result from marine accidents. Article 3 The provisions in the Maritime Law shall apply to the trial of the cases in which the insurer exercises the right of subrogation due to an insurance accident arising out of collision of vessels with the port facilities or docks, and claims for compensation from the third person that causes the insurance accident. Article 4 If the insurer knows that the insured did not faithfully report the essential information as stipulated in Paragraph 1 of Article 222 of the Maritime Law but still collects insurance premiums or pays insurance compensations, if the insurer later claims rescission of the contract for the reason that the insured did not report the important information faithfully, the people's court shall not support its claim. Article 5 If the insured does not pay the insurance premiums as prescribed to the insurer subject to Article 234 of the Maritime Law, the insurer is entitled to rescind the insurance contract before the insurance liability begins, unless the insurer has issued insurance documents; if the insurer claims rescission of the contract after the insurance liability begins for the reason that the insured did not pay the insurance premium, the people's court shall not support its claim. Article 6 If the insurer claims rescission of the insurance contract from the day in which the guarantee clause is violated for the reason that the insured violated the guarantee clause as prescribed in the contract and did not notify the insurer in writing immediately, the people's court shall support its claim. Article 7 If the insurer still pays the insurance compensations after receiving the written notice that the insured violated the guarantee clause as prescribed in the contract, but later claims rescission of the contract for the reason that the insured violated the guarantee clause as prescribed in the contract, the people's court shall not support its claim. Article 8 If the insurer does not reach an unanimity with the insured with regard to the revision of underwriting conditions or increase of insurance premiums after it has received a written notice that the insured violated the guarantee clause as prescribed in the contract, the insurance contract shall be rescinded as from the day when the guarantee clause is violated. Article 9 If a vessel is transferred in a voyage, the vessel insurance contract in which the insurer does not consent to the vessel transfer shall be rescinded when the voyage ends. The rights and obligations to the vessel insurance contract from the transfer of the vessel to the conclusion of the voyage shall be respectively enjoyed and assumed by the vessel transferor, and may also be succeeded by the vessel transferee. When claiming for compensation against the insurer subject to the previous Paragraph, the vessel transferee shall hand in valid insurance documents and the certificate concerning the vessel transfer contract. Article 10 If both the insurer and the insured do not know that the insurance object has suffered any loss in an insurance accident when the insurance contract is concluded, or the insurance object could not possibly suffer any loss in the accident insurance, the effectiveness of the insurance contract shall not be affected. Article 11 The losses resulting from the failure of the carrier to deliver goods without the original bill of lading in the marine goods transport do not fall within the scope of insurance liability of the insurer, unless it is otherwise prescribed by both parties in the insurance contract. Article 12 If the insured takes reasonable measures after an insurance accident happened for the purposes of preventing or reducing losses but has no effects and the insured requires the insurer to pay reasonable fees incurred there from, the people's court shall support it. Article 13 If the insurer, when exercising the right of subrogation to claim for compensations, fails to hand in the people's court the vouchers proving that it has actually paid the insurance compensation to the insured subject to the provisions in the Special Maritime Procedure Law, the people's court shall not accept its claim; in case the court has accepted the claim, it shall make a ruling to reject the litigation. Article 14 The people's court that accepts a case involving any dispute over the insurer's exercise of the right of subrogation to claim for compensations shall only try the legal relationship between the third party causing the insurance accident and the insured. Article 15 If the insurer, after obtaining the subrogation right of claiming for compensations, claims for the interruption of the action limitation for the reason that the insured filed a lawsuit or arbitration against the third party or applied for seizure of the vessel, or the third party consents to perform its obligation, the people's court shall support the claim. Article 16 If the insurer, after obtaining the right of subrogation of claiming for compensations, claims for the guaranty rights of the insured due to the application for the seizure of the vessel, the people's court shall support the claim. Article 17 The present Provisions shall enter into force as of January 1, 2007.
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