When the Hull and Machinery insurer of the vessel refuse to compensate losses caused by the misconduct of the mortgagor,  the mortgagees would thereof  suffer losses. But if there’s Mortgagee’s Interest Insurance in place, the mortgagee may claim indemnity from the mortgagee’s interest insurer. This cover is usually provided by Lloyds underwriters. Some Chinese insurance companies also offer this kind of insurance.

If you have any enquiries in this respect, please contact our Marine Dept.