Document Type : Original Article
Authors
1 Associate Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran
2 (PhD Candidate, Faculty of Law, Shahid Beheshti University, Tehran, Iran. Corresponding Author Email: m_aghasijavid@sbu.ac.irr
Abstract
Expanding the use of new technologies in the field of maritime transportation and the inevitable interconnection of different sectors has turned cyber risks into one of the serious threats in this domain. Therefore, covering these risks by insurance is assumed necessary. However, since different dimensions of this type of risk are not very clear to insurers; they are hesitant to provide insurance coverage for this type of risk and even try to exclude these risks from common marine insurance by including specific conditions. This ambiguous situation also affects the rights and decisions of insureds. Therefore, it is necessary to become familiar with the concept of marine cyberattacks and damages that are usually covered, the legal status of typical marine insurance covering this kind of the risks, and the legal tools for determining and managing these risks in case they are covered so that the insurer and the insured can more confidently enter into a contractual relationship by learning more about their rights and obligations. Consequently, this article has tried to provide a good basis for covering these risks by providing legal certainty through a new analysis of existing marine insurance legal institutions and the way that these institutions are used, with a descriptive and analytical approach, while providing a comprehension of concepts related to marine cyberattacks and examining the scope of common maritime insurance coverage on cyber risks.
Keywords
References
Books
- Alastair, Owen, The Law of Insurance Warranties: Flawed Reform and a New Perspective, United Kingdom: Routledge. 2021.
- Armstrong, Dean., Shyam Thakerar, and Thomas Steward, Cyber Risks and Insurance: The Legal Principles, United Kingdom: Bloomsbury Professional. 2021.
- Babaei, Iraj,. Insurance Law. 14th Edition, Tehran: SAMT, 2017. (in persian)
- Clarke, Malcolm., and Barış Soyer, The Insurance Act 2015: A new regime for commercial and Marine insurance law, United Kingdom: Routledge. 2017.
- Cooke, Julian., Tim Young, and others, Voyage Charters, 5th United Kingdom: Routledge. 2022.
- Dunt, John, Marine Cargo Insurance, United Kingdom: Routledge. 2015.
- Elasan, Mostafa, Cyber Insurance: Basic Concepts and Action Plan, Tehran: Insurance Research Center, 2016. (in persian)
- Girvin, Stephen, Carriage of Goods by Sea, 3rd Oxford Publication. 2022.
- Gürses, Özlem, Marine Insurance Law, United Kingdom: Routledge. 2023.
- Marano, Pierpaolo, and Kyriaki Noussia, InsurTech: A Legal and Regulatory View, Vol. 1. Switzerland: Springer. 2019.
- Marano, Pierpaolo, Ioannis Rokas, and Peter Kochenburger, Dematerialized Insurance: Distance Selling and Cyber Risks from an International Perspective, Switzerland: Springer International Publishing. 2016.
- Mukherjee, Proshanto K., Maximo Q. Mejia, Jr., and Jingjing Xu., Maritime Law in Motion. Part: Soyer, Barış. Cyber Risks Insurance in the Maritime Sector: Growing Pains and Legal Problems, Switzerland: Springer. 2020.
- Naeimi, Omran, and Mohammad Mahdi Sedaghat, Insurance Law, Tehran: Jangal Publications, 2012. (in persian)
- Soyer, Barış and Andrew Tettenborn, Disruptive Technologies, Climate Change and Shipping, New York: Routledge. 2022.
- Soyer, Barış, and Andrew Tettenborn, Maritime Liabilities in a Global and Regional Context, New York: Routledge. 2019.
- Soyer, Barış, Warranties in Marine insurance, London: Routledge-Cavendish. 2016.
- Sözer, Bülent, Unmanned Ships and the Law, United Kingdom: Routledage, 2023.
- Tettenborn, Andrew and Barış Soyer. Ship Operations: New Risks, Liabilities and Technologies in the Maritime Sector, United Kingdom: Routledge. 2020.
Articles
19. Amini, Mansour, and Mohammad Reza Hazaghi Aghdam, "The Insured's Post-Contract Duty of Notification of Increase of Risk: Comparative study in Iranian, Chinese insurance law and principles of European insurance contracts", Journal of Legal Studies, 2021, Vol. 13, No.1, pp. 1-28. (in persian). doi: 10.22099/jls.2020.35815.3719.
- Hoseini, Seyedeh Ameneh, Mohammad Reza Zandi, and Abbas Tadian, "Examining the Crime of Cyberbullying in Iranian and American Criminal Law", Comparative Law Researches, 2023, Issue 3, p. 93. (in persian)
- Jing, Zhen, “Warranties and Doctrine of Alteration of Risk During the Insurance Period: A critical Evaluation of the UK Law Commissions’ proposals for reform of the law of warranties”, Insurance Law Journal, Vol. 25. No. 2, pp. 183-209.
- Khoroushi, Abdolazim, Habibollah Rahimi, Abbas Ghasemi Hamed, and Jalil Maleki, "Fair Presentation as a Replacement for the Duty of Disclosure in Commercial Insurance", Insurance Research Quarterly, Vol. 34,No. 2, 2019, pp. 88-105. (in persian). doi: 10.22056/ijir.2019.02.05.
- Reetz, Margaret A., Lauren B. Prunty, Gregory S. Mantych, and David J. Hommel, “Cyber Risks: Evolving Threats, Emerging Coverages, and Ensuing Case Law”, Penn State Law Review, Vole 122. Issue 3. 2018. pp. 727-762. Available at: http://www.pennstatelawreview.org/wp-content/uploads/2018/07/Symposium-Reetz-et-al.pdf (last visited on 09/08/2022).
- Soyer, Barış, “Risk Control Clauses in Insurance Law-Law Reform and the Future”, Cambridge law Journal, 2016. pp 109-127. doi:10.1017/S0008197315000963.
Theses
- Davit, Dadiani, Cyber-security and marine insurance, PhD dissertation, World Maritime University, 2019.
- Hazaghi Aghdam, Mohammad Reza, Warranties in Marine Insurance under Civil Law Systems, Master’s Thesis. Tehran: Shahid Beheshti University, 2018. (in persian)
- McKenzie, Alicia, Cyber Risks, Potential Liabilities and Insurance Responses in the Marine Sector, Ph.D. Dissertation: Swansea University. 2022.
Documents
- CL380 Hull amended.
- Guidelines on Maritime Cyber Risk Management, published by the International Maritime Organization (IMO) on 5 July 2017 (MSC-FAL.1/Circ.3). Available at: https://wwwcdn.imo.org/localresources/en/OurWork/Facilitation/Facilitation/MSC-FAL.1-Circ.3-Rev.1.pdf (last visited on 14/07/2022).
- Institute Cargo Clauses (ICC) 2009 (A).
- Institute Time Clauses Hulls (ITCH) (1995).
- International Underwriting Association, “Institute Cyber Attack Exclusion Clause” (IUA, 10 November 2003). Available at: iua.co.uk/IUA_Member/Clauses/IUA_Member/Clauses/eLibrary/Clauses.aspx?hkey=6f7dd1a36ab34b10-94c2-5a8c644b1c32 (last visited on: 09/05/2022).
- IUA Cyber Loss Exclusion Clauses (IUA 09-081 / IUA 09-082) (2019).
- Lloyd’s Market Bulletin Y5258 dated 4 July 2019. Available at: https://www.lloyds.com/news-and-insights/market-communications/market-bulletins (last visited on 30/09/2022).
- The Guidelines on Cyber Security Onboard Ships.
- The Institute Cyber Attack Exclusion Clause – Cl. 380.
Cases
- Coxe v. Employers’ Liability Assurance Corp Ltd, [1916] 2 KB 629. Available at: https://casetext.com/case/cox-v-emps-liability-assur-corp-et-al (last visited on: 24/07/2022).
- De Maurier (Jewels) Ltd v. Bastion Insurance Co Ltd [1967] 2 Lloyd’s Rep 550. Available at: https://www.i-law.com/ilaw/doc/view.htm?id=146105 (last visited on: 23/05/2022).
- MSC Mediterranean Shipping Co SA v. Glencore International AG [2015] EWHC 1989 (Comm); aff’d [2017] EWCA Civ 365. Available at: https://www.i-law.com/ilaw/doc/view.htm?id=377477 (last visited on: 27/05/2022).
- Tektrol Ltd v International Insurance Co of Hanover Ltd [2005] EWCA Civ 845; [2006] 1 All ER 780 (Comm Ct). Available at: https://www.i-law.com/ilaw/doc/view.htm?id=153089 (last visited on: 28/07/2022).
- The Australian Agricultural Company v Saunders (1874–75) LR 10 CP 668. Available at: https://vlex.co.uk/vid/the-australian-agricultural-company-803513305 (last visited on 16/05/2022
)