• Title/Summary/Keyword: Liability Insurance

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The Liability for Damage and Dispute Settlement Mechanism under the Space Law (우주법상 손해배상책임과 분쟁해결제도)

  • Lee, Kang-Bin
    • Journal of Arbitration Studies
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    • v.20 no.2
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    • pp.173-198
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    • 2010
  • The purpose of this paper is to research on the liability for the space damage and the settlement of the dispute with reference to the space activity under the international space treaty and national space law of Korea. The United Nations has adopted five treaties relating to the space activity as follows: The Outer Space Treaty of 1967, the Rescue and Return Agreement of 1968, the Liability Convention of 1972, the Registration Convention of 1974, and the Moon Treaty of 1979. All five treaties have come into force. Korea has ratified above four treaties except the Moon Treaty. Korea has enacted three national legislations relating to space development as follows: Aerospace Industry Development Promotion Act of 1987, Outer Space Development Promotion Act of 2005, Outer Space Damage Compensation Act of 2008. The Outer Space Treaty of 1967 regulates the international responsibility for national activities in outer space, the national tort liability for damage by space launching object, the national measures for dispute prevention and international consultation in the exploration and use of outer space, the joint resolution of practical questions by international inter-governmental organizations in the exploration and use of outer space. The Liability Convention of 1972 regulates the absolute liability by a launching state, the faulty liability by a launching state, the joint and several liability by a launching state, the person claiming for compensation, the claim method for compensation, the claim period of compensation, the claim for compensation and local remedy, the compensation amount for damage by a launching state, the establishment of the Claims Commission. The Outer Space Damage Compensation Act of 2008 in Korea regulates the definition of space damage, the relation of the Outer Space Damage Compensation Act and the international treaty, the non-faulty liability for damage by a launching person, the concentration of liability and recourse by a launching person, the exclusion of application of the Product Liability Act, the limit amount of the liability for damage by a launching person, the cover of the liability insurance by a launching person, the measures and assistance by the government in case of occurring the space damage, the exercise period of the claim right of compensation for damage. The Liability Convention of 1972 should be improved as follows: the problem in respect of the claimer of compensation for damage, the problem in respect of the efficiency of decision by the Claims Commission. The Outer Space Damage Compensation Act of 2008 in Korea should be improved as follows: the inclusion of indirect damage into the definition of space damage, the change of currency unit of the limit amount of liability for damage, the establishment of joint and several liability and recourse right for damage by space joint launching person, the establishment of the Space Damage Compensation Review Commission. The 1998 Final Draft Convention on the Settlement of Disputes Related to Space Activities of 1998 by ILA regulates the binding procedure and non-binding settlement procedure for the disputes in respect of space activity. The non-binding procedure regulates the negotiation or the peaceful means and compromise for dispute settlement. The binding procedure regulates the choice of a means among the following means: International Space Law Court if it will be established, International Court of Justice, and Arbitration Court. The above final Draft Convention by ILA will be a model for the innovative development in respect of the peaceful settlement of disputes with reference to space activity and will be useful for establishing the frame of practicable dispute settlement. Korea has built the space center at Oinarodo, Goheung Province in June 2009. Korea has launched the first small launch vehicle KSLV-1 at the Naro Space Center in August 2009 and June 2010. In Korea, it will be the possibility to be occurred the problems relating to the international responsibility and dispute settlement, and the liability for space damage in the course of space activity. Accordingly the Korean government and launching organization should make the legal and systematic policy to cope with such problems.

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International Liability for Damage Caused by Space Debris (우주잔해 손해에 대한 국제책임)

  • Kim, Dong-Uk
    • The Korean Journal of Air & Space Law and Policy
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    • v.23 no.2
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    • pp.173-205
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    • 2008
  • Space debris have frequently caused damage to space objects like satellites in orbits and sometimes have fallen on the earth. Such increase in space debris will lead to the high possibility of threatening space activities of mankind. However, it is not so easy for the damage caused both by identified and by unidentified space debris to be recovered since in the regime of the current international law, there is no legislation of prescribing the damage done by space debris. For overcoming the limitation it seems desirable that either the Liability Convention should partly be amended or new international law regime should be established. For instance, 'space debris' should be included in the new definition of 'space object' and the range of launching should also be defined clearly by making the concept of 'launching' somewhat more specified. Moreover, the subject of international liability for damage caused by space debris should be divided into two classes: the subject before and after registration. While in case of before-registration launch states should be held liable for any damage jointly or individually, in case of after-registration 'the state of registry' or 'owner' of the space debris should be. In the event of damage being caused elsewhere than on the surface of the earth to a space object of other State, 'fault-based liability' is currently applied. But it needs to be changed into 'absolutely liability'. In this paper, 'Liability Pool', 'Insurance', 'Market-Share Liability' are presented as aid devices of the damages resulting from unidentified space debris. They should be defined through the amendment of the Liability Convention or another international treaty. Some day there comes a time when our country shall possess many of the astronomical price of satellites. It means that we can't be free from the damage by the increasing number of space debris. Provided that our satellites are damaged by such space debris, it will do the satellites damage and cause impaired functioning or troubles in operation. As a result, if we are not paid for the damage by space debris, we will be confronted with tremendous economic loss because it is necessarily connected with the excess burden of taxation. Thus, an international agreement regarding the measures of the compensation for space debris damage must be made very soon.

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A Comparative Study between International Convention and National Legislation in Respect of the Liability of the Carrier in the Carriage of Cargo by Air (항공화물운송인의 책임에 관한 국제협약과 국내입법의 비교연구)

  • Lee, Kang-Bin
    • The Korean Journal of Air & Space Law and Policy
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    • v.24 no.2
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    • pp.19-45
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    • 2009
  • The purpose of this paper is to research the contents and issues of the draft legislation of Part VI the Carriage by Act of Korean Commercial Code in respect of the liability of the carrier in the carriage of cargo by air, comparing to the related provisions of the Montreal Convention of 1999. The Montreal Convention in respect of the international carriage by air was adopted in 1999, and Korea has ratified the Montreal Convention in 2007. However, there is now no national legislation in respect of the carriage by air in Korea. Thus, the Ministry of Justice has prepared the draft legislation of Part VI the Carriage by Air of the Korean Commercial Code in July 2008, and the draft legislation is now being reviewed by the National Assembly. The draft provisions of Part VI the Carriage by Air are basically adopting most of the related provisions of the Montreal Convention in respect of the carriage of cargo by air and some draft provisions are applying the related provisions of the Korean Commercial Code in respect of the carriage of cargo by land and sea. In respect of the liability of the carrier in the carriage of cargo by air, the contents of the draft legislation of Part VI the Carriage by air are composed of the provisions in respect of the cause of the liability of the and the application for the non-contractual claim, the limit of liability, the exoneration from liability, the extinguishment of liability, the notice of damage to cargo, the liability of the agents and servants of the carrier, and the liability of the actual carrier and successive carrier. The draft legislation of the Carriage by Air of Korean Commercial Code is different from the provisions of the Montreal Convention is respect of the liability of the carrier in the carriage of cargo by air as follows : the draft Article 913 paragraph 1 provides additionally the riot, civil war and quarantine as the exoneration causes from the liability for damage to the cargo of the carrier in the Article 18 paragraph 2 of the Montreal Convention. In respect of the liability of the carrier in carriage of cargo by air, the draft legislation of Part VI the Carriage by Air does not provide the settlement by arbitration of dispute relating to the liability of the carrier and the requirement of adequate insurance covering the liability of the carrier which are provided in the Montreal Convention. In author's opinion, it is desirable that the above mentioned provisions such as the arbitration and the insurance shall be inserted into the draft legislation of the Carriage by Air of Korean Commercial Code. In conclusion, the legislation of Part VI the Carriage by Air of the Korean Commercial Code shall be made by the National Assembly as soon as possible for the smooth and equitable compensation for damage to cargo arising during the carriage by air.

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A Cargo Insurer's Right of Direct Action against P&I Club - Focused on Docket No.2012 gadan 503694 in Seoul Central District Court- (선주상호보험조합에 대한 적하보험자의 직접청구권 -서울중앙지방법원 2012가단503694 판결을 중심으로-)

  • Lee, Wonjeong
    • Journal of Korea Port Economic Association
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    • v.30 no.4
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    • pp.111-130
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    • 2014
  • The article 742(2) of the Korean Commercial Code allowed the third party to invoke a direct action against the insurer under a liability insurance. Meanwhile, the owners of the vessel enter into the P&I Insurance Contract with the P&I Club to indemnify all kinds of liability or expenses involved in the operation of its vessel. However, the Rule Book under the P&I Insurance mostly included the Pay to be Paid Clause which precludes the third party's direct action. Recently, the Seoul Central District Court passed a judgement on the validity of the Pay to be Paid Clause under the Korean law against the third party i.e. the cargo insurer having the right of subrogation. The court held that (1) the third party's right of direct action is not the right to claim insurance money but the right to claim damages against the P&I Club, (2) the insurer under a liability insurance is deemed to assume liability jointly and severally with the insured against the third party, (3) the Article 742(2) of the Korean Commercial Code is considered as a compulsory provision because it was invented to protect the innocent third party, the Paid to be Paid Clause is thus null and void. The purpose of this article is to evaluate the appropriateness of this court's judgments by comparative analysis of Korean and English law, and to suggest the relevant amendments of the Korean Commercial Code in order to prevent further legal disputes. The article criticizes the decision of the Seoul Central District Court, taking the attitude that, since the third party's right is the right to claim insurance money, the Paid to be Paid Clause is valid against the third party.

Unlimited Liability

  • Mckay, John S.
    • The Korean Journal of Air & Space Law and Policy
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    • v.6
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    • pp.137-147
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    • 1994
  • Clearly there are many legal arguments and criticisms surrounding the proposals for change in the Warsaw Convention and the need for a radical review. The question remains is unlimited liability the answer or should there be some other form of supplemental compensation and if so, what limits should be applicable. It does seem that the adopted limits of the Convention are seen by many as the first line of defence, which, dependent on political and cultural differences, the legal interpretation of contractual wording and the legal system globally have resulted in enormous differences in compensation paid whether or not the Convention limits were imposed. An example of this is in the United States, which highlights the significance of the problem in that domestic travellers without Convention Limits can, through the American legal system, obtain compensation in the multi-million dollar area for a death claim, whereas a passenger t1ying internationally would in the first instance be subject to Convention Limits. expensive legal action through litigation. To date, we can advise that insurers have not charged additional premium for unlimited liability coverage. Insurance rates as we have stated are hardening considerably. To date, average rate increases have been plus 56% for aircraft hull and plus 45% for liabilities. Insurers last year suffered global losses of around US $ 1.1 Billion against a premium income of US $ 800,000. The target premium income for 1993 is believed to be in the region of US $1.4 Billion.

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A Study on Some Problems and the Need for Reform of the Rule of Warranty in English Law of Marine Insurance (영국 해상보험법 상 담보법원칙의 문제점 및 개혁 필요성)

  • Shin, Gun-Hoon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.43
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    • pp.239-273
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    • 2009
  • Marine insurance contracts, which intended to provide indemnity against marine risks upon the payment of a premium, originated in Northern Italy in the late 12th and early 13th centuries. The law and practice of Italian merchants were later introduced into England through Lombard merchants. It is, therefore, quite exact that English and Continental marine insurance law have common root. Nevertheless, some significant divergences between English and Continental marine insurance systems occurred since the late 17th century, mainly due to different approaches adopted by English courts. The rule of warranty in English marine insurance was established in the second part of the 18th century by Lord Mansfield, who laid the foundations of the modern English law of marine insurance and developed different approaches, especially in the field of warranty in marine insurance law. Since the age of Lord Mansfield, English marine insurance law has developed a unique rule on warranty. Bearing in mind the realities of the 18th century, it could easily be understood why Lord Mansfield afforded such a strict legal character to marine warranties. At that time, the 'promise' given by the assured, played an important role for the insurer to assess the scope of the risk. Legal environments, however, have changed dramatically since the times of Lord Mansfield. Of course, it is still important that the assured keep his promises to the insurer under the insurance contract, which is based upon utmost good faith. Nevertheless, the remedy of automatic discharge from liability, regardless of existence of a casual link between the breach and loss seems harsh in the realities of the 21st century. After examining the warranty regime adopted by the German and Norwegian hull clauses, it is fair to say that they provide a more equitable approaches for the assured than does English law. Therefore, this article suggests that English warranty regime needs overall reform and it is time to reform.

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Production Liability Law and Method of Protection and Defence (제조물책임법 (PL법)의 변화와 대처방안)

  • 이상복
    • Journal of the Korean Professional Engineers Association
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    • v.30 no.6
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    • pp.153-163
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    • 1997
  • In this paper, we explain Production Liability(PL) law and research method of protection and defence of PL law. In introduction, we give some examples of PL law In main issue, we explain more detail PL law. We survey several country PL law, specially U.S.A., EU, Japan whose are deeply related with us as important export country We discuss our country PL status, our country don't legislate PL law until now We have consumer protection law(소비자보호법) which is weaker than PL law but stronger than civil law(민법), We believe that PL law will be legislated within not long time. At last we discuss protection and defence of PL law inside of company and outside of company as PL insurance.

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A Case Study on PL Management in Small and Medium-Sized Firms of Gangwon-Do Province (강원도 중소기업의 제조물책임법 대책에 대한 연구)

  • Park, Roh-Gook;Lee, Sung-Ho
    • Journal of the Korea Safety Management & Science
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    • v.10 no.3
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    • pp.99-107
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    • 2008
  • Product liability(PL) is the producer's compensation to customers for damage incurred by product defects. This paper studies on the organizational culture, promotion process, system construction, system level, product safety review, product safety assurance, system operation, and its effectiveness and necessity of recognition for the PL system of small and medium-sized firms in Gangwon-Do province. The results show that the firms have product safety regulations, but the number of firms which its employees understand the regulations is less than the number of firms which do not understand. Also the number of firms which is preparing PL prevention and insurance, and counterplan for accidents seems to be not in large numbers.

Developing Product Liability Response Strategies of SMEs using PEST-SWOT-AHP analysis (PEST-SWOT-AHP 분석을 이용한 중소제조기업의 제조물책임 대응전략 수립)

  • Seo, JunHyeok;Bae, SungMin
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.2
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    • pp.11-18
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    • 2016
  • Product liability (PL), which began enforcement in 2002, refers to the legal responsibility of the manufacturers or sellers (wholesales or retailers) for the property damage or bodily harm caused by their product. With a strong enforcement of the Product Liability (PL) Act, companies are required to structure and operate a response system to defend or prevent product accidents efficiently, but small and medium enterprises (SMEs) are unable to respond more aggressively due to limitation of management resources. In this manner, it is important to develop response strategies for SMEs to efficiently cope with the PL Act. In this paper, the PEST (Political, Economic, Social, and Technological) analysis is performed to reveal the impact of the PL Act on SMEs in macro-economic point of view. To formulate SME's PL response strategy, SWOT analysis is performed to categorize each factors from PEST analysis and AHP is applied to identify the intensities of SWOT factors. The prioritized SWOT factor, results of PEST-SWOT-AHP analysis, are used to formulate SME's PL response strategies. The study results are briefly summarized as follows. To reduce product defects, it is necessary for SMEs to formulate PL response strategies for each phase of the product life cycle by continuously collecting and analyzing PL cases in the same industry or for similar products. In addition, SMEs should invest more technological effort to ensure product safety. Further, SMEs should spread PL awareness to all staff members by training internal PL experts. Moreover, a SME should enroll in PL insurance and spread this information to its customers so that they become aware that the company is proactively conforming to the PL law.

Historical Review for the Government Contractor Defense (Government Contractor Defense(정부계약자항변)에 대한 연혁적 고찰)

  • Shin, Sung-hwan
    • Journal of Advanced Navigation Technology
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    • v.21 no.3
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    • pp.230-242
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    • 2017
  • A significant rise in product-liability cost is expected due to the newly passed product liability amendment Bill approved during the assembly plenary session on March 30, 2017. Korean government legal service(KGLS) filed a damage suit against Korea aerospace industries, Ltd.(KAI) and Hanwha Techwin Co., Ltd., the manufactures of the KUH-1 Surion helicopter crashed. KGLS alleged claims under the product liability Act, the warrant liability Act and the non-performance of contract act. The accountability limits of military aircraft manufacturers was a highly divisive issue among related scholars and legal practitioners. The bottom line was that military aircraft manufacturers had no product-liability insurance available. The United States courts have, therefore, developed the government contractor defense(GCD) and it was recognized by the U.S. Supreme Court in Boyle v. United Technologies corporation(1988). product liability insurances for military aircraft manufacturers are excessively expensive and it cannot be added onto the military procurement cost accounting. However, having an aircraft accident without one can be ruinously expensive. Therefore, the manufacturers should promptly set up appropriate risk management measures. This thesis will first review the advance GCD theory, and then find a way to either reform government contract related regulations.