LAW 4223 GA Wen Bin

Q3
According to the information given, it appears that the Turbo, the shipowner's vessel, was
instructed to deviate from the customary course because of hostilities; nonetheless, the ship
regrettably wound up stuck on a reef. The Institute Cargo Clauses are incorporated into the
shipowner's current insurance policy for the shipment of apples. (A). Regarding the predicament,
the shipowner should consider the following:
Deviation
Due to tensions in the area, the ship's owner gave the order for Turbo to deviate from its
customary course and pursue a different path. A deviation is an unjustified departure from the
customary or agreed-upon course under marine law. Deviation may influence the cargo's
insurance coverage. Unless the deviation was required for the safety of the ship or to save lives
or property at sea, common law may release the insurer from responsibility for loss or damage to
the cargo.
In this instance, the shipowner ordered the diversion because of hostilities, which can be
regarded as a justification for the deviation. It would, however, depend on the particular facts and
the law that applies in the country where the issue is being settled. To ascertain the effect of the
deviation on their insurance coverage and potential liability, the shipowner should carefully
analyze the terms of the insurance policy as well as any relevant maritime laws and regulations.
Example
In the case of Thames & Mersey Marine Insurance Co. v. Hamilton, Fraser & Co. (1887),
12 App. Cas. 484, the ship veered off course because of inclement weather, and as a result, it
was lost. The insurance provider claimed that since the deviation wasn't warranted, the coverage
was null and void. Nevertheless, the court decided that the deviation was justified because it was
required to avoid risk.
Q4
Institute Cargo Clause s(A)
The Institute Cargo Clauses are incorporated into the Shipowner's Insurance Policy (A). (A). The
Institute Cargo provisions (A) are typical maritime insurance provisions that, with a few
restrictions and limitations, cover "all risks" or "accidental damage" to the cargo. In contrast to
other clauses, as Institute Cargo Clauses (B) or (C), which offer more restricted coverage for
particular hazards, these provisions often offer greater coverage.
Under Institute Cargo Clauses (A), the shipowner could be entitled to make a claim against the
insurers for compensation for any loss or damage to the cargo brought on by the ship's stranding.
The extent of the coverage, however, may be impacted by exclusions or limitations in the policy,
such as exclusions for losses brought on by war, hostilities, or terrorist attacks. To fully
comprehend the scope of coverage under the Institute Cargo Clauses (A) and the potential
compensation that may be sought, the shipowner should research the exact terms and
circumstances of the insurance policy and, if necessary, obtain legal counsel.
Example
In the case of Transfield ER Cape Ltd. v. Owners of the vessel "Ladytramp" (2008) EWHC
2325 (Comm), the cargo owners asserted their rights under the Institute Cargo Clauses (A) after
their cargo was harmed in transit. Whether the damage was brought on by one of the "perils of
the sea," which are covered under insurance, was at issue. As a result, the cargo owners were
qualified to make a claim under the policy, according to the court, which found that the loss was
brought on by an insured danger.
In summary, the shipowner should carefully analyse both the nature of the Institute Cargo
Clauses (A) in their insurance policy and the legal ramifications of the diversion from the
ordinary course. In this case, it would be good to evaluate the insurance policy, applicable laws
and regulations, and get legal counsel from a marine law specialist. The exact facts and
circumstances of the case, as well as the relevant rules and regulations, would determine the
shipowner's eligibility to seek compensation for the loss or damage to the cargo. A skilled legal
expert should always be consulted by the shipowner to ensure correct legal guidance and
protection of their rights and interests.
References
Policybazaar. (2023). What is Marine Insurance? Features & Benefits of Marine Insurance |
Policybazaar. [online] Available at:
https://www.policybazaar.com/corporate-insurance/articles/deviation-clause-in-marine-
insurance/#:~:text=A%20deviation%20in%20marine%20insurance [Accessed 6 Apr. 2023].
www.marineinsurance.jp. (n.d.). INSTITUTE CARGO CLAUSES(2009) | MARINE CARGO

INSURANCE GUIDE / INTERLINK. [online] Available at:
https://www.marineinsurance.jp/english/icc/2009/cargo-clauses/ [Accessed 6 Apr. 2023].
Bailii.org. (2023). Learoyd v Whiteley [1887] UKHL 1 (01 August 1887). [online] Available at:
https://www.bailii.org/uk/cases/UKHL/1887/1.html [Accessed 6 Apr. 2023].
Bailii.org. (2023b). Office of Fair Trading v Abbey National Plc & Ors [2008] EWHC 2325
(Comm) (08 October 2008). [online] Available at:
https://www.bailii.org/ew/cases/EWHC/Comm/2008/2325.html [Accessed 6 Apr. 2023].

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Q3

Institute Cargo Clause s(A)

www.marineinsurance.jp. (n.d.). INSTITUTE CARGO CLAUSES(2009) | MARINE CARGO

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