Venezuelan drug smuggling – CTL and recovery for detention under Institute clauses

Navigators Insurance Company Limited v Atlasnavios-Navegacao LDA [2018] UKSC 26 In a decision handed down yesterday (22 May) the Supreme  Court  held that where a vessel was used by unknown third parties in an unsuccessful attempt to export cocaine from Venezuela (by strapping a parcel of drugs to the vessel underwater), leading to a detention of the vessel by Venezuelan authorities for more than 6 months, the Owners were not entitled to recover the vessel’s insured value from the vessel’s war risk insurers. The case turns on the wording of the Institute War Strikes Clauses Holds – Time, which provided, insofar as relevant: Clause 1: Perils  Subject always to the exclusions hereinafter referred to, this insurance covers loss of or damage to the vessel caused by …  1.2 capture seizure arrest restraint or detainment, and the consequences thereof or any attempt thereat.  1.5: any terrorist or any person acting maliciously or from…

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