1986 Ed.]
Merchant Shipping
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(ii) any contractual liability; or
(iii) any liability in respect of any one accident or series of accidents arising out of the same event exceeding $600,000,
(2) Notwithstanding anything in any law, an authorized insurer issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons.
(3)
107E. (1) Subject to subsection (2) any condition in a policy issued or given for the purposes of section 107C providing that no liability shall arise under the policy or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy, shall be of no effect in connexion with such claims as are mentioned in section 107D(1)(b).
(2) Nothing in this section shall be taken to render void any provisions in a policy requiring the person insured to repay to the insurer any sums which the latter may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of third parties.
107F. (1) If, after a policy has been effected, judgment in respect of any such liability as is required to be covered by such policy under section 107D(1)(b) (being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the authorized insurer may be entitled to avoid or cancel, or may have avoided or cancelled, the policy, the authorized insurer shall, subject to this section, pay to the persons entitled to the benefit of the judgment any sum payable thereunder in respect of the liability, including any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any law relating to interest on judgments:
Provided that where the liability covered by the policy is limited as provided by paragraph (iii) of the proviso to section 107D(1)(b) the authorized insurer shall not be required to pay any sum in excess of $600,000, the limit so provided. (G1/8956)
(2) No sum shall be payable by an authorized insurer under subsection (1)—
(a) in respect of any judgment, unless before or within 7 days after the commencement of the proceedings in which the judgment was given, the authorized insurer had notice of the bringing of the proceedings; or
(b) in respect of any judgment, so long as execution thereon is stayed pending an appeal; or
Certain conditions to policies to be of no effect.
Duty of insurers to satisfy judgments against persons insured in respect of third-party risks.
1986 Ed.]
Merchant Shipping
[CAP. 281
35
(ii) any contractual liability; or
(iii) any liability in respect of any one accident or series of accidents arising out of the same event exceeding $600,000,
(2) Notwithstanding anything in any law, an authorized insurer issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons.
(3)
107E. (1) Subject to subsection (2) any condition in a policy issued or given for the purposes of section 107C providing that no liability shall arise under the policy or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy, shall be of no effect in connexion with such claims as are mentioned in section 107D(1)(b).
(2) Nothing in this section shall be taken to render void any provisions in a policy requiring the person insured to repay to the insurer any sums which the latter may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of third parties.
107F. (1) If, after a policy has been effected, judgment in respect of any such liability as is required to be covered by such policy under section 107D(1)(b) (being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the authorized insurer may be entitled to avoid or cancel, or may have avoided or cancelled, the policy, the authorized insurer shall, subject to this section, pay to the persons entitled to the benefit of the judgment any sum payable thereunder in respect of the liability, including any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any law relating to interest on judgments:
Provided that where the liability covered by the policy is limited as provided by paragraph (iii) of the proviso to section 107D(1)(b) the authorized insurer shall not be required to pay any sum in excess
of $600,000, the limit so provided. (G1/8956)
(2) No sum shall be payable by an authorized insurer under subsection (1)—
(a) in respect of any judgment, unless before or within 7 days after the commencement of the proceedings in which the judgment was given, the authorized insurer had notice of the bringing of the proceedings; or
(b) in respect of any judgment, so long as execution thereon is
stayed pending an appeal; or
Certain conditions to policies to be of
no effect.
Duty of insurers to satisfy judgments against persons insured in
respect of third
party risks.
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