In November 2025 the UK Court of Appeal confirmed that a “pay-first” clause in a marine liability policy is valid when it accordingly prevents direct recovery by a third party from the insurer when the insured is unable to discharge its underlying liability.
Because the insured was insolvent, the court refused a direct claim by a third party under the UK Third Parties (Rights Against Insurers) Act 2010. The ruling matters for South African charterers, brokers and claimants because many local … Read the rest