Marine insurance

Islamic Republic of Iran Shipping Lines v Steamship Mutual Underwriting Association (Bermuda) Ltd [2010] EWHC 2661 (Comm)

Johanna Hjalmarsson

Marine Insurance – Bunker Oil Pollution Convention 2001

The facts

The claimant shipping line (IRISL) had for many years insured its ships with the defendant protection and indemnity club (‘the Club’). In February 2009, 28 of its ships were entered with the Club. Insurance under the policy was in respect of loss, damage, liability or expense incurred which arose out of events occurring during the period of entry of a ship with the Club. The cover was in respect of 21 categories of risk including loss of life of crew or passengers, collision towage and a series of other losses and liabilities. One of the categories was pollution and included liability, loss, damage, cost and expenses ‘caused by or consequent on the escape or discharge or threatened escape or discharge of oil or any other substance from the entered ship’. This risk encompassed but was not limited to liabilities under the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (the ‘Bunkers Convention’).