Marine insurance - Fire and causation issues

(Kiriacoulis Lines SA v Compagnie d’Assurance Maritime Aerieenes et Terrestres, The Demetra K, October 2001)

The judgment of Aikens J in Kiriacoulis Lines SA v Compagnie d’Assurance Maritime Aerieenes et Terrestres, The Demetra K , to be reported in [2002] Lloyd’s Rep IR, is interesting in two respects. First, it explores the meaning of the term ‘fire’ in a standard form Hull and Machinery policy. Second, it considers the extent to which the courts can go behind the wording of the agreement to determine whether the policy should be rectified to accord with the alleged intentions of one of the parties. Aikens J has confirmed that rectification is unavailable unless there is clearly manifested common intention which is contrary to the wording of the written agreement.