KULUKUNDIS AND OTHERS v. NORWICH UNION FIRE INSURANCE SOCIETY, LTD.

(1935) 52 Ll L Rep 203

KING'S BENCH DIVISION.

Before Mr. Justice Porter.

Marine insurance-Freight-Total loss- Policy covering "chartered freight and/or freight"-Cargo loaded for U.K. under charter providing for lump sum freight of £8000-Stranding of vessel during chartered voyage-Vessel valued and insured under her hull policies for £25,000-Abandonment to hull underwriters, Underwriters agreeing to settle for £7500 and to undertake all liabilities for which vessel was answerable-Cargo-owners notified that adventure at an end-Total loss paid by cargo underwriters-Ship and cargo abandoned by underwriters to salvors (ship being temporarily repaired by salvors, part cargo taken in repaired vessel to Rotterdam, and vessel sold there by salvors for breaking up)-Claim by shipowners for total loss under freight policy-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"-Whether total loss of freight necessarily arose from the constructive total loss of cargo or ship; from the fact that if temporary repairs sufficient to complete the voyage had been effected the voyage could only have been made at a loss to the shipowners; or from the fact that the cargo-owners found it unremunerative to continue the voyage-Consideration of expense thrown upon freight by reason of casualty.