Fraser Shipping Ltd v Colton and Ors (The “Shakir III”) - QBD (Com Ct)(Potter LJ) - 11 October 1996

Marine insurance - Vessel stranded under tow prior to being broken up - Whether actual total loss - Whether policy avoided for non disclosure

The plaintiffs bought the semi-submersible lift vessel Shakir III on 4 May 1993, at which time the vessel was at Jebil Ali. On 11 May 1993 the plaintiffs sold her on to Chinese buyers for demolition. Delivery was to be under tow at Wuson anchorage (Shanghai) or Huang Pu anchorage at the Chinese buyer’s option. The plaintiffs insured the vessel in the sum of US$ 3 million against actual total loss only from various marine perils under tow for breaking-up, at and from Jebil Ali “... until safe arrival at Shanghai outer anchorage plus 7 days, in single tow of approved Tug, and for break-up ...”.