Thor Navigation Inc. v Ingosstrakh Insurance Company Ltd. & Anor

Thor Navigation Inc. v Ingosstrakh Insurance Company Ltd. & Anor

The policies are unvalued as a matter of construction because they specify only a 'sum insured' and do not contain words of valuation or specify an agreed value. There is no basis for rectification or estoppel as Insurers did not share or acquiesce in Owners' mistaken assumption, nor did they make any clear representation to that effect. The measure of indemnity is the market value of the vessel at the time and place of loss, agreed at $800,000.

Parties
Claimant: Thor Navigation Inc.; 1st Defendant: Ingosstrakh Insurance Company Ltd.; 2nd Defendant: Schwarzmeer Und Ostsee Versicherungs-Aktiengesellschaft (SOVAG)
Jurisdiction
England and Wales
Judgment Date
14 January 2005
Procedural Posture
Commercial/insurance Dispute / Trial of Preliminary Issues
Outcome
Owners' claims for construction as valued policy, rectification, and estoppel all fail. The policies are unvalued.
Legal Topics
Valued Vs Unvalued Marine Policies, Rectification, Estoppel, Interpretation of Insurance Contracts
Insurance Law Contract Law Marine Law Valued Vs Unvalued Marine Policies Rectification Estoppel Interpretation of Insurance Contracts

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Parties

Thor Navigation Inc.

Claimant

Ingosstrakh Insurance Company Ltd.

1st Defendant

Schwarzmeer Und Ostsee Versicherungs-Aktiengesellschaft (SOVAG)

2nd Defendant

Procedural Posture

Commercial/insurance Dispute / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether the hull policies were valued or unvalued as a matter of construction
  2. 2 Whether Insurers are estopped from contending the policies are unvalued
  3. 3 Whether the policies should be rectified

Ratio Decidendi

The policies are unvalued as a matter of construction because they specify only a 'sum insured' and do not contain words of valuation or specify an agreed value. There is no basis for rectification or estoppel as Insurers did not share or acquiesce in Owners' mistaken assumption, nor did they make any clear representation to that effect. The measure of indemnity is the market value of the vessel at the time and place of loss, agreed at $800,000.

Court Disposition

Owners' claims for construction as valued policy, rectification, and estoppel all fail. The policies are unvalued.

Orders

  • Declaration that the policies are unvalued policies.
  • Insurable value of the vessel is $800,000, being the market value at the time and place of loss.