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CII: P05 Insurance Law > 10: Making the claim > Flashcards

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Privy Council in Siu v. Eastern Insurance Ltd. (1994)

(Agency, Who Can Claim on an Insurance Policy?)

- marine policy is taken out by a firm of shipping agents (in their name)

- they had been instructed to insure the liability of the ship-owners, but the owners name did not appear on the policy.

- no indication that the shipping agents were insuring on the owners; behalf and not in their own right.

- court held that the shipowners were parties to the contract and could enforce it.



Houghton v. Trafalgar Insurance Co. Ltd. (1954)

(Common law rules for the interpretation of insurance policies, Construction of insurance policies)

- exception in a motor policy

- cover would not apply when the vehicle was 'conveying any load in excess of that for which it was construed'

- insurers argued against 6 passengers in the insured vehicle (designed for 5) - exception operated loss not covered.

- however, court accepted opposite interpretation, that the clause operated only where weight was exceeded, which had not happened.



Leading case
Leyland Shipping v. Norwich Union Fire Insurance Society Ltd (1918)

- the ikara covered for 'perils of the sea', excluding war risks.

- hit by an enemy torpedo, yet reached Le Havre for repairs. Storm hit the harbour, ship was ordered to move to an outer berth to prevent the blockage of the harbour if the ship sank, which it did.

- torpedo was PROXIMATE CAUSE because loss was caused by the damage it caused was effective throughout all events. Chain of events had not been broken.