Amlin Marine NV on behalf of MS Amlin Syndicate AML/2001 v King Trader Limited & Ors

Amlin Marine NV on behalf of MS Amlin Syndicate AML/2001 v King Trader Limited & Ors

The 'pay first' clause in section 30.13 of the policy is clear, unambiguous, and not repugnant or inconsistent with the main purpose or other terms of the policy. It is effective to bar indemnity unless and until the insured has discharged the liability, including in cases of insolvency or third party claims. There is no basis to read down, exclude, or imply limitations to the clause.

Parties
Claimant: MS Amlin Marine NV on behalf of MS Amlin Syndicate AML/2001; First Defendant: King Trader Limited; Second Defendant: Bintan Mining Corporation; Third Defendant: The Korea Shipowners’ Mutual Protection & Indemnity Association
Jurisdiction
England and Wales
Judgment Date
28 November 2024
Procedural Posture
Commercial Insurance Declaratory Action / Judgment After Trial
Outcome
Claimant's claim for a declaration that indemnity is not payable unless the insured has discharged the liability is granted.
Legal Topics
Pay First Clauses, Third Parties (rights Against Insurers) Act 2010, Marine Insurance, Policy Interpretation, Repugnancy and Inconsistency in Contract Terms
Insurance Law Maritime Law Contract Law Pay First Clauses Third Parties (rights Against Insurers) Act 2010 Marine Insurance Policy Interpretation Repugnancy and Inconsistency in Contract Terms

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 4 Authorities cited 16 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

MS Amlin Marine NV on behalf of MS Amlin Syndicate AML/2001

Claimant

King Trader Limited

First Defendant

Bintan Mining Corporation

Second Defendant

The Korea Shipowners’ Mutual Protection & Indemnity Association

Third Defendant

Procedural Posture

Commercial Insurance Declaratory Action / Judgment After Trial

Legal Issues

  1. 1 Whether the 'pay first' clause in the charterers’ liability insurance policy is effective to bar indemnity where the insured has not discharged the liability
  2. 2 Whether the clause is repugnant or inconsistent with the main purpose of the policy or other terms
  3. 3 Whether the clause should be read down or impliedly limited in cases of insolvency or third party claims

Ratio Decidendi

The 'pay first' clause in section 30.13 of the policy is clear, unambiguous, and not repugnant or inconsistent with the main purpose or other terms of the policy. It is effective to bar indemnity unless and until the insured has discharged the liability, including in cases of insolvency or third party claims. There is no basis to read down, exclude, or imply limitations to the clause.

Court Disposition

Claimant's claim for a declaration that indemnity is not payable unless the insured has discharged the liability is granted.

Orders

  • Declaration that under the policy, no indemnity is payable unless and until the insured has discharged the legal liability for which indemnity is sought.