Atlasnavios - Navegacao, LDA v Navigators Insurance Company Ltd & Ors [2016] EWCA Civ 808 (01 August 2016)

Atlasnavios - Navegacao, LDA v Navigators Insurance Company Ltd & Ors [2016] EWCA Civ 808 (01 August 2016)

Clause 4.1.5 of the Institute War and Strikes Clauses excludes liability for losses arising from detainment by reason of infringement of customs regulations, even where the infringement is caused by a malicious act. The exclusion applies to smuggling and similar customs infringements, and the policy must be construed so that exclusions operate to limit cover for such losses.

Citation
[2016] EWCA Civ 808
Parties
Claimant/respondent/cross Appellant/owners: Atlasnavios - Navegação, LDA (formerly BNAVIOS - Navegação, LDA); Defendants/appellants/cross Respondents/insurers: Navigators Insurance Company Limited and others (see list)
Jurisdiction
England and Wales
Judgment Date
01 August 2016
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal allowed; cross-appeal dismissed
Legal Topics
War Risks Insurance, Exclusion Clauses, Malicious Acts, Customs Regulations, Constructive Total Loss
Insurance Law Maritime Law Commercial Law War Risks Insurance Exclusion Clauses Malicious Acts Customs Regulations Constructive Total Loss

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Parties

Atlasnavios - Navegação, LDA (formerly BNAVIOS - Navegação, LDA)

Claimant/respondent/cross Appellant/owners

Navigators Insurance Company Limited and others (see list)

Defendants/appellants/cross Respondents/insurers

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether clause 4.1.5 exclusion applies to detainment caused by malicious acts that constitute infringement of customs regulations
  2. 2 Whether the policy covers losses arising from malicious acts when those acts also constitute customs infringements
  3. 3 Interpretation of exclusion clauses in war risks insurance policies

Ratio Decidendi

Clause 4.1.5 of the Institute War and Strikes Clauses excludes liability for losses arising from detainment by reason of infringement of customs regulations, even where the infringement is caused by a malicious act. The exclusion applies to smuggling and similar customs infringements, and the policy must be construed so that exclusions operate to limit cover for such losses.

Court Disposition

Appeal allowed; cross-appeal dismissed

Orders

  • Insurers' appeal allowed
  • Owners' cross-appeal dismissed