Institute Cargo Clauses (A) is an ‘all risks’ policy subject to limited exclusions including an exclusion for inherent vice (cl 4.4). ‘Unless the policy otherwise provides, the insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of the subject matter insured, or for any loss proximately cause by rats or vermin, or for any injury to machinery not proximately caused by maritime perils’ S 55(2)(c) and its Australian equivalent contain the following exception: ‘Subject to the provisions of this Act, and unless the policy otherwise provides, the insurer is not liable for any loss proximately caused by a peril insured against, but, subject as aforesaid, he is not liable for any loss which is not proximately caused by a peril insured against. The weather experienced during the voyage was within reasonable contemplation and was not extraordinary.īoth s 55(1) of the MIA and its Australian equivalent provide: The stresses that generated the metal fatigue in this instance were as a result of the height and direction of the waves and their effect on the rolling and pitching of the barge and therefore the oil rig. The legs were lost because of metal fatigue critically, this involves an initial cracking, propagation of the cracking, and finally the complete fracture of the component legs. The assured claimed under its marine insurance policy (which incorporated the Institute Cargo Clauses (A)) for the loss of the three legs. The following evening two other legs broke off. On 4 November 2005, the starboard leg broke off the oilrig and fell into the sea. When the barge arrived at Saldanha Bay near Cape Town on 28 October 2005, repairs were undertaken on the oil rig to alleviate fatigue cracking on the legs. The subject matter of the insurance was an oil rig which was to be loaded on a towing barge in Galveston, United States to Lumut in Malaysia. Because the Marine Insurance Act 1909 (Cth) is for all intents and purposes identical to the MIA, and because of the wide customary usage of the Institute Cargo Clauses, the case is important to all practitioners in the fields of marine insurance and international trade law. The United Kingdom Supreme Court has recently decided a case interpreting the ‘inherent vice’ exclusion under the widely used Institute Cargo Clauses (A) policy and the equivalent exclusion under the Marine Insurance Act 1906 (UK) (‘MIA’) in contradistinction to the insurance coverage term ‘peril of the sea’. Global Process Systems Inc& Anor v Syaraikat Takaful Malaysia Berhad UKSC 5
0 kommentar(er)
