"YERO CARRAS" (OWNERS) v. LONDON & SCOTTISH ASSURANCE CORPORATION, LTD.

(1935) 52 Ll L Rep 34

KING'S BENCH DIVISION.

Before Mr. Justice Porter.

Marine insurance-Freight-Constructive total loss-Vessel chartered to proceed to Valparaiso to load cargo for Europe-Insurance of charter freight -Institute Voyage Clauses (Freight): "(4) In the event of the total loss, whether absolute or constructive, of the vessel, the amount underwritten by this policy shall be paid in full, whether the vessel be fully or only partly loaded or in ballast, chartered or unchartered. (5) In ascertaining whether the vessel is a constructive total loss the insured value in the policies on ship shall be taken as the repaired value and nothing in respect of the damaged or break-up value of the vessel or wreck shall be taken into account. (7) Warranted free from any claim consequent on loss of time whether arising from a peril of the sea or otherwise" -Stranding of vessel in Strait of Magellan on voyage to Valparaiso- Salvage agreement entered into by master with local salvors on Lloyd's form-Agreement to pay minimum remuneration of £6000 with provision for further award to be arbitrated upon-Notice of abandonment given to underwriters on ship-Subsequent compromise, underwriters on ship paying 100 per cent. and proportion of sue and labour charges, the shipowners retaining the ship and remaining responsible for all liabilities attaching thereto-Claim by shipowners under freight policy-Whether total or constructive total loss of freight-Cost of repairs to ship and of discharging salvors' lien-Port of repair-Expenses allowable - Sue and labour charges - Insured value of ship: £30,000 - Actual value: undamaged, £13,000; damaged, £2200-Marine Insurance Act, 1906, Sect. 60.