Lorcom Thirteen (Pty) Ltd v Zurich Insurance Company South Africa Ltd (54/08)
Lorcom Thirteen (Pty) Ltd v Zurich Insurance Company South Africa Ltd (54/08) [2013] ZAWCHC 64; 2013 (5) SA 42 (WCC); [2013] 4 All SA 71 (WCC) (29 April 2013)
The court held that Lorcom Thirteen (Pty) Ltd had an insurable interest in the vessel Buccaneer sufficient to sustain insurance cover measured by the market value of the vessel. This interest arose from Lorcom's 100% shareholding in the owner company (GFW), its right of use of the vessel, and its well-founded expectation of becoming the owner. The court found that the insurance policy did not require Lorcom to prove patrimonial loss, but rather covered the physical loss of the vessel as stipulated. The court adopted a flexible approach to insurable interest, recognising that a shareholder may…
Source excerpt
- Marine Insurance
- Insurable Interest
- Valued Policy
- Company Shareholder Interest