Mortgage Creditors Insurance

Protect your naval assets and ensure the financial security of your vessel and mortgage creditors through MII, IOI, and MIAP insurance.

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Who can insure against this type of risk?

The mortgage lender can protect themselves by taking out a "Mortgagee Interest Insurance".
The owner of the ship can protect themselves by taking out "Innocent Owner insurance".

Why subscribe to this insurance?
What do MII, MIAP, and IOI insurances cover?

As part of a financing contract between a shipowner and a mortgagee, it is common to find a clause stipulating that the mortgagee is authorised to benefit from the ship's insurance H&M, P&I, War and K&R contracted by the shipowner.

In certain circumstances, the H&M, P&I, War and K&R insurers of the ship may refuse to compensate the insured following a loss or a claim. This is particularly the case when the insured is in breach of their contractual obligations or commits a gross negligence. Since the damage incurred is not covered, the mortgage creditor may be required to lose all or part of the loan amount. The ship owner, on the other hand, risks losing the investment share they hold in the ship.

The MII, IOI, and MIAP insurances cover the ship owner or mortgagee for any loss, damage, or liability related to the ship that would have been covered by H&M, P&I, War, or K&R policies in the absence of a breach of the terms of coverage or gross negligence by the policyholder of these insurances.

The owner of the ship or the person chartering the ship bareboat who does not subscribe to H&M, P&I, War or K&R insurance.

These insurances cover the mortgage creditor or the ship owner when the guarantee subscribed by the person in charge of insuring the ship (H&P&I, War, K&R) does not activate due to:

From the breach of the terms of the insurance contract or the incorrect submission of the reimbursement claim.
From an act of negligence or the insured's knowledge of the unnavigability of the ship, the inadequacy of the equipment, certification, or crew.
From non-compliance with the geographical limit clause or deviation of the ship from its initial route.
From the loss of the non-compensable ship under the guarantee subscribed in the event that it is not demonstrated that this loss was caused by an insured risk.
From the termination of the shipowner's policies due to a breach of the classification clause including ISM, provided that the insured has not consented to any act or omission that would have led to the termination.

Why choose Howden?

Our specialized maritime transport teams accompany you in the analysis of your contracts, the placement of your risks, and the management of your claims.

We draft your MII, IOI & MIAP insurance contracts.
We place your risks on the insurance market with top insurers.
We assist you in managing your claims, from the event to the reimbursement by insurers, and in managing any potential recourse.