15:24
ok thanks! appreciate the insight
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LSDefine
Simple English definitions for legal terms
running-down clause
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A quick definition of running-down clause:
A running-down clause is a part of marine insurance that says if a ship crashes into another ship and causes damage, the insurance company for the first ship will help pay for the damage to the second ship. This helps make sure that both ships can get the repairs they need after a collision.
A more thorough explanation:
A running-down clause is a provision in marine insurance that requires the insurer of a ship's hull to pay a portion of the damages sustained by another vessel in a collision.
Suppose a ship collides with another vessel, causing damage to both ships. If the ship that caused the collision is insured with a running-down clause, its insurer will pay a portion of the damages sustained by the other vessel.
For instance, if the total damages amount to $100,000 and the running-down clause specifies that the insurer will pay 50% of the damages, the insurer will pay $50,000 to the other vessel's insurer.
This clause is important because it helps to ensure that both parties are compensated for their losses in the event of a collision.