In 1986, the People's Insurance Company of China(hereinafter called PICC) Hull Insurance Clauses, which were amended on the basis of the version 1972, were put into effect. Since PICC is the biggest state-owned insurance company in China, its hull insurance clauses have been used nationwide. In the clauses are included the following contents： scope of cover, exclusions, period of insurance, automatical termination of insurance, duty of assured, claim and indemnity, treatment of disputes and so on. However, this study is only limited to the legal interpretation of the most important clauses relating to indemnity of the insurer. The writers attempt to supply some basic materials necessary for the establishment and enforcement of the Korean hull insurance clauses.
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