PETROS M. NOMIKOS, LTD. v. ROBERTSON.

(1939) 64 Ll L Rep 45

HOUSE OF LORDS.

Before Lord Atkin, Lord Thankerton, Lord Russell of Killowen, Lord Wright and Lord Porter.

Marine insurance-Freight policy-Loss of freight - Institute Time Clauses (Freight):- (5) In the event of the total loss, whether absolute or constructive of the steamer the amount underwritten by this policy shall be paid in full, whether the steamer be fully or only partly loaded or in ballast, chartered or unchartered. (6) In ascertaining whether the vessel is a constructive total loss the insured value in the policies on ship shall be taken as the repaired value. (8) Warranted free from any claim consequent on loss of time whether arising from a peril of the sea or otherwise.

Vessel chartered-Explosion and fire on board-Charter abandoned-Election by shipowners to repair although cost of repairs exceeded insured value-Claim for partial loss paid by hull underwriters-Claim by shipowners to recover amount underwritten by freight policy on ground of constructive total loss of steamer, based on Institute Time Clauses (Freight), No. 5-Contention by freight underwriters that the shipowners were not entitled to recover on the grounds (1) that there was no constructive total loss of the vessel because there had been no notice of abandonment by the shipowners; (2) that the claim was excluded by Clause 8 as being a claim consequent on loss of time-Meaning of "constructive total loss" - Necessity for abandonment-Marine Insurance Act, 1906, Sects. 60, 61, 62, 63.