PIRAEUS BANK AE V ANTARES UNDERWRITING LTD AND OTHERS

[2022] EWHC 1169 (Comm), Queen’s Bench Division, Commercial Court, Mr Justice Calver, 17 May 2022

Insurance (marine) – Mortgagees Interest Insurance – Vessel detained in Venezuela on suspicion of smuggling oil – Claim under War Risks Policy rejected – Whether MII insurers were liable – whether detention excluded from War Risks Policy – Whether vessel was a constructive total loss – Marine Insurance Act 1906, section 60 – Effect on MII Policy of excluded loss under War Risks Policy

The vessel ZouZou was mortgaged by the Owners to the claimant Bank. With effect from 1 January 2015 and to 31 December 2015, the vessel was insured by a War Risks Club under a War Risks Policy which was assigned to the Bank and also under which the Bank was loss payee. The War Risks Policy covered confiscation or expropriation, and the vessel was deemed to be a constructive total loss if the Owners were deprived of possession for a continuous period of 12 months. The War Risks Policy provided that the "owner ... is not insured for any loss, damage, liability, cost or expense arising out of action taken by any state or public or local authority: 3.5.1 under the criminal law of any state; or 3.5.2 on the grounds of any alleged contravention of the laws of any state ...".