This article begins to introduce the relationship between latentdefect and ordinary wear and tear, then makes clear the source oflatent defect insured against and its essence. In order to understandthis concept of latent defect, the article lists out its difference in hullinsurance and marine transport. The article advocates the four con-ditions to form the damages arising from latent defect, and consid-ers if the insured fails to prove the four conditions, the underwriterwill undoubtedly refuse to indemnify and that undertaking his bur-den of proof is not required. The article concentrates on describinghow the insured and the underwriter to do when carrying their bur-den of proof, what onus of proof the parties to assume, and howthe nature of damages to be determined when the court settles thiskind of cases and so on.
Through analyzing the role of the classification society and itsfunction in ship survey, this thesis, starting with the establishmentof insurance system and 1iability fund system to improve the classifi-cation society’s ability to bear legal liability, makes a detailed studyof the classification society’s civil liability for the casualty caused byits fault, and therefore proves the necessity and feasibility to estab-lish the legal liability system, and goes further into the principles ofcompensation for damage by its fault and the limitation of liabilityfor damage claims, which is expected to contribute a little to the relevant legislation.
