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ARTICLE · 18 MARCH 2026

Sunk by the small print: onerous clauses in marine insurance

Kennedys
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This article explains the decision and reasoning in King Trader and then examine how it could be relevant to contractual interpretation in Australia.

AustraliaInsurance
Matthew Caplicki
Matthew Caplicki
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The Court of Appeal of England and Wales' decision in MS Amlin Marine NV v King Trader Ltd 1 (King Trader) provides useful guidance on the interpretation of marine liability insurance policies and enforceability of standard "pay-to-be-paid" terms (PTBP Term), commonly found in P&I Rules and other marine liability insurance contracts which require an insured to first discharge its liability to (i.e. pay) a third party before being entitled to indemnity from insurers.

Whilst our Kennedys colleagues in London reported on King Trader , this article explores the exent to which that decision offers guidance around policy interpretation and the incorporation of onerous or unusual terms in marine insurance policies in Australia.

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