No. 12.
Insurance of property arrested under the Admiralty
Act 1988
The Admiralty
Act 1988
(Cth) provides for the
arrest of property (including vessels) by the Marshal
in actions in rem. The Marshal will obtain indemnity
insurance for the period the vessel is in possession of
the Marshal. The cost of that insurance will be an expense
incurred by the Marshal payable by the party issuing the
writ for the arrest of the vessel. The Court may require
that party to undertake to pay the cost of that insurance
at the time that the writ is issued.
The Marshal does not at any time
during the period of arrest hold commercial insurance
for the benefit of any person who has an interest in the
arrested property including cargo. Persons with an interest
in the arrested property and their solicitors may wish
to consider the question of insuring the amount of their
interest against consequential risks, including risks
occasioned by any movement of the vessel.
