IF P & C Insurance Ltd (Publ) v Silversea Cruises Ltd & Ors

IF P & C Insurance Ltd (Publ) v Silversea Cruises Ltd & Ors

The $5 million limit under cover Aii is a fleet-wide aggregate, not per vessel, based on the policy wording, the nature of the cover, and the fleet-wide premium. Cover Ai is concerned with operational interference and loss of time, not market losses or passenger cancellations, which are covered under Aii. The six-month period under Aii is for measuring the impact of an event on all cruises in the current Cruise Atlas, not just cruises departing within six months. Market losses due to 9/11 are not excluded if they are also directly caused by government warnings. Silversea's reformulated claim under Ai for passenger cancellations does not fit the requirements of interference with itinerary...

Parties
Claimant/respondent: IF P & C Insurance Limited (Publ.); Defendant/appellant: Silversea Cruises Limited; Defendant/appellant: Silver Cloud Shipping Company SA; Defendant/appellant: Silver Wind Shipping Company SA; Defendant/appellant: Silversea New Build One Limited; Defendant/appellant: Silversea New Build Two Limited
Jurisdiction
England and Wales
Judgment Date
02 July 2004
Procedural Posture
Civil Appeal / Judgment on Appeal From Commercial Court
Outcome
Appeal dismissed with costs (save for issue (iii), where appeal allowed).
Legal Topics
Interpretation of Insurance Contracts, Loss of Income Policies, Concurrent Causation, Policy Limits, Rectification, War and Terrorism Perils
Insurance Law Contract Law Interpretation of Insurance Contracts Loss of Income Policies Concurrent Causation Policy Limits Rectification War and Terrorism Perils

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Parties

IF P & C Insurance Limited (Publ.)

Claimant/respondent

Silversea Cruises Limited

Defendant/appellant

Silver Cloud Shipping Company SA

Defendant/appellant

Silver Wind Shipping Company SA

Defendant/appellant

Silversea New Build One Limited

Defendant/appellant

Silversea New Build Two Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Judgment on Appeal From Commercial Court

Legal Issues

  1. 1 Whether the $5 million limit under cover Aii is per vessel or fleet-wide
  2. 2 Whether the policy should be rectified to clarify the limit
  3. 3 Interpretation of the six-month period under cover Aii

Ratio Decidendi

The $5 million limit under cover Aii is a fleet-wide aggregate, not per vessel, based on the policy wording, the nature of the cover, and the fleet-wide premium. Cover Ai is concerned with operational interference and loss of time, not market losses or passenger cancellations, which are covered under Aii. The six-month period under Aii is for measuring the impact of an event on all cruises in the current Cruise Atlas, not just cruises departing within six months. Market losses due to 9/11 are not excluded if they are also directly caused by government warnings. Silversea's reformulated claim under Ai for passenger cancellations does not fit the requirements of interference with itinerary...

Court Disposition

Appeal dismissed with costs (save for issue (iii), where appeal allowed).

Orders

  • Appeal dismissed with costs.
  • Appeal allowed on issue (iii): the six-month period under cover Aii is for measuring loss across all scheduled cruises in the current Cruise Atlas.