Abstract

Waterways account for 95% of the trade in-coming to India. To address this, the importance of accountability and responsibility of all the stakeholders for successfully completing one Import operation is immense, as it includes extensive labour, logistics and financial burden. The present paper aims to assess the risk taken up by way of proactive steps by the three major players in an Import transaction, Port authorities, Insurance Companies and Financial Institutions. The focus will greatly be on the transactions that commence after the vessel has entered the territory of India and when such vessel carrying imports experiences a wreck within the coastal territory. During such period, obligatory burden pushes the stakeholders to proceed with the necessary requirement to Salvage the vessel, foremost by activating the acts of the Insurance Companies. In most cases, such vessels are abandoned by the Charterer, Shipowner and even the Insurance Companies, completely burdening the Port Authorities with the responsibility of wreck removal. The present law fails to address the evidence of a breach of due care by the Insurance giver largely as they seem to escape responsibility and the Shipowner’s conduct periodically. This coerces the Port Authority to approach the financial institution for monetary assistance and claims on imports, adding an unnecessary financial burden on Banks.

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