Loss of hire: non-disclosure and want of due diligence

In Sealion Shipping Ltd v Valiant Insurance Co (The Toisa Pisces) [2012] EWHC 50 (Comm), Blair J determined issues of: (i) the materiality of non-disclosures; (ii) the meaning of ‘want of due diligence’ in the context of a policy of marine insurance; and (iii) the application of an excess clause to a period of delay. The decision is considered by Justin Fenwick QC and Lucy Colter of 4 New Square.

The Toisa Pisces: the facts

The claimants (the vessel’s operator and registered owner respectively) claimed an indemnity under a marine insurance policy with the defendant (‘the policy’) for loss of hire of their vessel, Toisa Pisces. The claim arose from a propulsion motor breakdown on the port side, and was for the sum of US$2,100,000 (30 days off-hire, the limit under the policy).