NANCY — Sea Glory Maritime Co v Al Sagr National Insurance Co
On 14–15 February 2009, the vessel NANCY was totally lost by fire at Nakhodka, Russia, near the Sea of Japan. The owner of the vessel claimed an indemnity under a marine insurance policy from their hull insurer for the constructive total loss of the vessel.
The insurer declined the claim and sought to avoid the insurance policy arguing that (a) there was a misrepresentation or non-disclosure as to the true manager of the vessel; (b) there was a non-disclosure of Port State Control detentions of the vessel; (c) there was a non-disclosure of an alleged conflict of interest relating to the position of the owner’s DPA; (d) there was a breach of an ISM warranty; and (e) the claim was tainted by a civil illegality under US-Iranian sanctions law by reason of the fact that the owner had invoiced a Chinese charterer for freight payable in US dollars under a charter of the vessel for the carriage of a cargo from Iran…
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Briefings from 7KBW
The court determined a number of issues about the nature and effect of a policy of professional liability insurance.
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