Commercial Maritime Law

1. If the ownership of a vessel is transferred, or if it is chartered unequipped, the insurance contract shall remain valid for the benefit of the new owner or charterer, provided the insurer is notified thereof within 15 days, excluding official holidays, from the date of transfer of ownership or charter. The new owner or charterer shall fulfill the obligations the insured had towards the insurer under the insurance contract. 2. The insurer may, within one month from the date of notification of the transfer of ownership or charter, request termination of the contract; in such case, the contract shall remain valid for a period of 15 days from the date of such request. 3. The original insured shall remain obligated against the insurer to pay the insurance premiums due up to the date of transfer of ownership or charter. 4. If the insurer is not notified of the transfer of ownership or charter within the period specified in paragraph (1) of this Article, the insurance shall be deemed suspended as of the date of expiry of said period. The validity of the insurance contract shall be restored within 24 hours after notification, and the insurer shall reimburse the insurance premium paid for the period of suspension. 5. The provisions of this Article shall not apply to a co-owned vessel, unless the transfer of ownership involves the majority of shares.