Detainment of vessel for concealment of drugs not covered by insurance policy

Atlasnavios-Navegação, LDA v Navigators Insurance Co Ltd and Others (The “B Atlantic”) [2016] 2 Lloyd’s Rep 351, [2016] EWCA Civ 808, 1 August 2016

The claimant assured was the owner of the vessel B Atlantic. The vessel was insured for US$14,135,000 by the defendant war risks insurers on the terms of the Institute War and Strikes Clauses Hull 1/10/83 as amended. The Perils clause stated that the insurance covered, amongst other things, “capture seizure arrest restraint or detainment, and the consequences thereof or any attempt thereat”. Clause 4.1.5 of the policy excluded liability for loss or damage arising from “arrest restraint detainment confiscation or expropriation under quarantine regulations or by reason of infringement of any customs or trading regulations”.