Encyclopedia Titanica

Insurance, reinsurance and the Titanic

Journal of Business Law

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Ozlem Gurses discusses the complex insurance arrangements for the Titanic, focusing on the use of facultative reinsurance. Initially insured by Lloyd’s underwriters with cover shared among multiple parties, Titanic’s insurance and reinsurance policies faced complications due to delivery delays. Legal disputes followed the sinking, particularly around whether the 1911 policy or a 1912 renewal applied. English courts upheld coverage for Titanic, confirming the original policy’s continuity and reinsurance obligations despite logistical delays. The study sheds light on the intricate legal and financial dimensions of early 20th-century marine insurance.

by Ozlem Gurses
Key Points

  • Insurance Structure: Titanic’s hull and machinery were insured under Lloyd’s with shared underwriting among multiple insurers.
  • Facultative Reinsurance: Single risks were reinsured proportionally, transferring some liability to reinsurers.
  • Delivery Delay Issues: Delayed delivery of Titanic created legal ambiguities around which policy term applied.
  • Court Disputes: English courts ruled the original 1911 policy remained valid, covering the 1912 sinking.
  • Marine Insurance Legacy: The Titanic case underscores the importance of policy terms and back-to-back reinsurance arrangements.

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