Legal Regime of Marine Insurance in Arctic Shipping: Safety and Environmental Implications

  • Proshanto K. Mukherjee
  • Huiru LiuEmail author
Part of the WMU Studies in Maritime Affairs book series (WMUSTUD, volume 7)


The primary driver of Arctic shipping and maritime operations is the development of natural resources in the Arctic. The melting of Arctic sea ice as a result of global warming and climate change is providing greater maritime access and potentially longer navigation seasons. This combined with advancements in ice-breaking technology benefitting commercial carriers are translating into shorter sea routes and reduced shipping costs. This chapter is concerned with safety and environmental implications of insurability and indemnifiability of enhanced Arctic shipping risks attributable to the presence of ice. The specific focus is on examination of relevant provisions in marine insurance contracts subject to English marine insurance law and the Nordic Marine Insurance Plan (NMIP). The discussion begins with a synoptic overview of the fundamental principles of marine insurance and then moves on to the regulatory dimension of Arctic shipping as manifested in the IMO Polar Code. Whether a violation of the Code leads to a potential breach of the implied warranty of seaworthiness entrenched in the UK Marine Insurance Act 1906 (MIA) operating through the Institute warranties is examined together with the corresponding elements in the NMIP regime. A comparative analysis is carried out of the MIA and Institute Clauses and Warranties on the one hand, and the NMIP legal framework on the other, which includes premium considerations, and ice class and notification requirements. The environmental implications for Arctic shipping are examined through the concept of protection and indemnity (P&I) insurance focusing on compulsory cover for third party liability required under relevant ship-source pollution conventions. Finally, the emerging concept of environmental salvage particularly in relation to Arctic waters is discussed peripherally.


Arctic shipping Marine insurance Polar code P&I clubs STCW convention 


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Copyright information

© Crown 2018

Authors and Affiliations

  1. 1.World Maritime UniversityMalmöSweden
  2. 2.Juris Dr. Honoris Causa, Lund UniversityLundSweden
  3. 3.Dalian Maritime UniversityDalianPeople’s Republic of China

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