Dictionary
loss payable (clause)
a provision in a contract which authorizes payment to persons other than the insured to the extent that they have an insurable interest in the property
Notwithstanding the terms of this loss payable clause, brokers shall be empowered to secure the release of the Vessel from arrest following a casualty.
Additional Notes
- A loss payable clause is used when there is a loan on the property in order to protect the lender.