Mortgagee's Interest Insurance

Oceanus Capital Sarl v Lloyd's Insurance Co SA (The Vyssos) [2026] EWCA Civ 863; [2026] 2 Lloyd's Rep 115

On 6 July 2026 the Court of Appeal dismissed Lloyd's Insurance Co SA's appeal from the first instance decision [2025] EWHC 3293 (Comm); [2026] 1 Lloyd's Rep 79. The case concerned the operation of mortgagee's interest insurance ("MII") following the constructive total loss of Vyssos (the "vessel") after a mine strike in Ukrainian waters. The appeal concerned three principal issues arising from the operation of clause 1.1 (the "Insuring Clause") in terms of proximate causation, privity and fortuity. Popplewell LJ's judgment also gives important guidance on a more fundamental question: what interest an MII policy of this kind insures.