‘Phantom ships’ and English marine insurance law

Nima SARL v Deves Insurance plc [2002] EWCA Civ 1132

The vessel Prestrioka, laden with a cargo of rice, sailed on 28 March 1999 from Cosichang in Thailand, en route to Dakar in Senegal. She never arrived and indeed her fate remained a mystery. The cargo owners claimed indemnification from their cargo insurers. These simple background facts gave rise to the Court of Appeal’s decision in Nima SARL v Deves Insurance plc [2002] EWCA Civ 1132, 30 July 2002. The judgments range over a large number of factual and legal matters, the most important of which is the Court of Appeal’s conclusion that standard London market wordings do not cover ‘phantom ship’ frauds perpetrated on cargo owners.