COMMODITIES IN FOCUS WEEKLY – ISSUE 148

Court of appeal on the construction of “pay first” clause in charterers’ liability insurance – ms amlin marine nv on behalf of ms amlin syndicate aml/2001  v (1) king trader limited (2) bintan mining corporation (3)  the korea shipowners' mutual protection & indemnity association [2025] ewca civ 1387.

In a recent Court of Appeal judgment in MS Amlin v King Trader Ltd, the Court of Appeal upheld the Commercial Court judgment which found that a "pay first" clause in a policy of charterers' liability insurance was enforceable and had the effect that no indemnity was payable by the insurer where the assured had not discharged the legal liability for which indemnity was sought. The Court of Appeal dismissed the appeal and in doing so considered, in detail, the approach to be taken to conflicting or inconsistent terms and the “onerous clause” doctrine.

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