Rajah & Tann Singapore contributed to the 13th edition of The Navigator, a publication by the General Insurance Association of Singapore (GIA) that provides the latest news, updates and thought opinions from Singapore’s general insurance industry.
In the article titled “UK High Court Considers Vessel Detention for “Illegal Parking” and Implications on Insurance Claims”, Leong Kah Wah, Head of the Shipping & International Trade Practice, and Partner Dedi Affandi discuss the key holdings of the King’s Bench Division (Commercial Court) in Delos Shipholding S.A. and other companies v Allianz Global Corporate and Specialty Se and other companies [2024] EWHC 719 (Comm). The case involved the “illegal parking” of a vessel that intended to drop anchor off Singapore but mistakenly encroached into Indonesian territorial waters. The vessel was detained by Indonesian authorities for nearly a year, and the claimant shipowner sought to claim under its policy with the defendant insurer for constructive total loss (CTL). In reaching its decision, the Court set out the applicable principles in determining when a loss is fortuitous and thus subject to insurance coverage, particularly in the context of vessel detainment. The Court also provided insight on whether engaging in “commercial settlement” discussions with the relevant authority may be considered a breach of an assured’s duty to sue and labour.
The authors also look at the applicability of the decision in the context of Singapore law, and whether Singapore courts may reach a different decision in the light of the relevant legal framework.
To read the article, please click here.
This article has also been featured in our March 2025 Legal Update. This Update can be accessed here.
To learn more about our Shipping & International Trade Practice, please click here.
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