Fortuity, inevitability and crew negligence

Chirag Karia QC, of Quadrant Chambers, looks at perils of the seas cover

Shipowners take out hull and machinery (H&M) cover to protect themselves in the event of damage to or loss of their ships. One of the most important risks against which an owner will want cover is the risk associated with the ship being and sailing on water: in other words, the normal “perils of seas”. Indeed, the very first risk covered by the perils clause (clause 6) of the Institute Time Clauses – Hulls 1/10/83 (ITC) is the risk of loss caused by “perils of the seas rivers lakes or other navigable waters”.