Where a ship registers with a flag of a country not requiring high standards of compliance to safety, inspections, surveys, etc. it is said to be registered with a ‘flag of convenience’.
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Insurers are liable for losses proximately caused by an insured peril. Fear of a peril does not constitute a peril so that Insurers are not liable for a loss caused by an uninsured peril, even though the loss would not have arisen but for fear of an insured peril.