Groupama Navigation Et Transports and Ors v Catatumbo C A Seguros - QBD (Com Ct)(David Steel J) - 3 November 1999

Marine insurance - Re-insurance - Underlying insurance contract governed by Venezuelan law whereas re-insurance contract governed by English law - Whether class warranty in re-insurance contract has an effect equivalent to that of class warranty in the underlying insurance contract

The defendants were the hull and machinery insurers of a Venezuelan company (‘the shipowner’) in respect of a fleet of vessels. It was a term of the policy that the vessels should at all times be seaworthy, that there should be maintained in force all certificates and permits issued by the competent authorities, and that there should be a guarantee of maintenance of class according to ABS standards and rules. The policy also incorporated the American Institute Hull Clauses, which provided that if the vessel’s classification society or class be changed, cancelled or withdrawn, then unless the underwriters agreed thereto in writing, the policy should automatically terminate at the time of such change.