IF P & C Insurance Ltd (Publ) v Silversea Cruises Ltd & Ors [2004] EWCA Civ 769 (02 July 2004)

IF P & C Insurance Ltd (Publ) v Silversea Cruises Ltd & Ors [2004] EWCA Civ 769 (02 July 2004)

The Court held that the $5 million limit under section Aii of the policy applies to the fleet as a whole, not per vessel. The policy structure, wording, and commercial context supported this interpretation. Claims for loss of income due to passenger cancellations fall under cover Aii, not Ai, as Ai is concerned with physical interference with vessel operations and loss of time, not market losses. The exclusion clause did not preclude recovery under Aii for losses caused by government warnings following 9/11. Rectification was not warranted as there was no clear evidence of a common intention contrary to the written terms.

Citation
[2004] EWCA Civ 769
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; Defendant/appellant: The Silver Cloud
Jurisdiction
England and Wales
Judgment Date
02 July 2004
Procedural Posture
Commercial Insurance Dispute (appeal) / Appeal From Queen's Bench Division, Commercial Court
Outcome
Appeal dismissed
Legal Topics
Interpretation of Insurance Policy Limits, Loss of Income Claims, Triggering Events Under Insurance Policies, Rectification of Contract Terms, Application of Deductibles and Limits, Exclusion Clauses in Insurance Contracts
Insurance Law Contract Law Maritime Law Interpretation of Insurance Policy Limits Loss of Income Claims Triggering Events Under Insurance Policies Rectification of Contract Terms Application of Deductibles and Limits +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 5
Sign in to unlock

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

The Silver Cloud

Defendant/appellant

Procedural Posture

Commercial Insurance Dispute (appeal) / Appeal From Queen's Bench Division, Commercial Court

Legal Issues

  1. 1 Whether the $5 million limit under section Aii of the policy applies per vessel or to the fleet as a whole
  2. 2 Whether Silversea's claims for loss of income due to passenger cancellations fall under cover Ai or Aii
  3. 3 Whether the policy should be rectified to clarify the $5 million limit as a fleet or vessel limit

Ratio Decidendi

The Court held that the $5 million limit under section Aii of the policy applies to the fleet as a whole, not per vessel. The policy structure, wording, and commercial context supported this interpretation. Claims for loss of income due to passenger cancellations fall under cover Aii, not Ai, as Ai is concerned with physical interference with vessel operations and loss of time, not market losses. The exclusion clause did not preclude recovery under Aii for losses caused by government warnings following 9/11. Rectification was not warranted as there was no clear evidence of a common intention contrary to the written terms.

Court Disposition

Appeal dismissed

Orders

  • Silversea's claims under covers Ai and B dismissed (except for settled mechanical breakdown claim)
  • Silversea entitled to recover $5,000,000 under cover Aii, limited to the fleet as a whole