UK Court of Appeal upholds ‘pay first’ clause in marine liability policy

‘Pay first’ remains an enforceable, market‑standard qualification to indemnity in marine liability policies

In MS Amlin Marine NV v King Trader and others (2025) the Court of Appeal has delivered an important judgment for the marine insurance market, confirming a “pay first” clause in a charterer’s liability policy was valid, enforceable and not overridden on transfer of rights under the Third Parties (Rights against Insurers) Act 2010, save for the statutory exception in death and personal injury cases.