Sealion Shipping Ltd & Anor v Valiant Insurance Company

Parties

Procedural Posture

Commercial/insurance Claim / Judgment After Trial

Legal Issues

1. 1 Whether the defendant insurer is entitled to avoid the marine insurance policy for material non-disclosure and/or misrepresentation
2. 2 Whether the claimants failed to exercise due diligence as required under the policy
3. 3 Whether the loss of hire claim is recoverable under the policy terms, including aggregation of occurrences and application of excess periods

Ratio Decidendi

The court found that the claimants did not make any material non-disclosure or misrepresentation that would have influenced a prudent insurer, nor did they fail to exercise due diligence. The periods of offhire and hull claims not disclosed were not material, and the inspection and repair regime was reasonable. The claimants were entitled to rely on the expertise of their contractors and class society. The entire period of loss was causally linked to the initial breakdown, and the claim under the Loss of Hire policy was recoverable.

Court Disposition

Claim allowed

Orders

• Claimants entitled to succeed on the claim for indemnity under the Loss of Hire policy.