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The Influence of the Unpaid Premium in Due Course on the Burden of Liability of Compensation for Marine Insurance


In disputer over marine insurance contract, there is such a situation that the policy holder or the assured does not pay the premium as agreed, then he asks the insurer to bear insured liability after insurance accident happens by supplementary payment of premium. Where the insurance contract specially stipulates that the insurer will be entitled to terminate or cancel the contract if the insurance premium is not paid, autonomy of will of the parties shall be respected. Where the insurance contract merely stipulates that the insurer will not be liable if the insurance premium is not paid, it shall fulfill the obligation of prompt and explanation according to the Insurance Law, otherwise, such clause which exempts the liability of the insurer will not come into effect. Where there is no special agreement or the agreement is not clear, the insurer, generally speaking, cannot refuse to bear insured liability by the reason that the counterpart does not pay the premium.