Solutions

Mortgagees Interest Insurance

Comprehensive and effective insurance on risks affecting security or collateral is a vital component in any asset financier’s risk assessment and mitigation process. Mortgagee’s Interest Insurance (MII) provides a valuable level of additional comfort to the Lender that an insured loss will be indemnified in the event of the original insurance proving unenforceable.

How it works

MII policies will provide cover in the event that the Borrower’s original insurances do not respond as a result of:

  • Non-disclosure or misrepresentation by the Borrower or its agents to the original Insurers.  
  • Unseaworthiness of a vessel.
  • Breach of a Policy Warranty, whether expressed (for example a trading restriction) or implied (such as the lapse of a vessel classification or non-compliance the ISM).
  • Deliberate casting away of the vessel.

The basis of cover can be for an indemnity of up to 120% of any loan value to cater for the necessary costs and expenses the Lender might incur in protecting their interest.

Cover can be arranged on the basis of a single loan or, more usually; on a comprehensive portfolio basis.

View diagram

Why Lockton Edge 

Mortgagees Interest Insurance

 ?

Dependant on spread of risk
Ship finance institutions
Less than 7 days to market
Nil Self Retention
Lloyd’s, Scandinavia

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Mortgagees Interest Insurance

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National Marine Insurance convention 2023

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