SEALION SHIPPING LTD V VALIANT INSURANCE CO

[2012] EWHC 50 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Blair, 20 January 2012

Insurance (marine) - Loss of hire policy - Non-disclosure and misrepresentation - Inchmaree clause - Whether assured failing to act with due diligence - Aggregation - Whether one or three occurrences giving rise to loss

The defendant insurer issued a loss of hire marine policy to the claimants on the vessel Toisa Pisces, for the year commencing 20 May 2008. The daily sum insured was US$70,000, limited to 30 days, and the excess clause stated: "14 days any one occurrence, 21 days in respect of Machinery claims". The policy incorporated the terms of the Institute Time Clauses - Hulls 1983, covering loss or damage caused by negligence of master, officers, crew, pilots, repairers or charterers "Provided such loss or damage has not resulted from want of due diligence by the Assured, Owners or Managers". The assured suffered a propulsion breakdown on 25 February 2009, claimed for US$2,100,000, the equivalent of 30 days' offhire. The insurers were held liable to make payment.