No cover for old methanol - Petrochemical cargo damage case clarifies insurance law
In the insurance dispute MOK Petro Energy FZC -v- Argo (No. 604) Ltd & others (F1) [2024] EWHC 1935 (Comm), the Court has carefully examined the cause and timing of alleged cargo contamination and provided helpful analysis of Sections 10 and 11 of the Insurance Act 2015 (IA 2015).
Finding for the defendant insurers, the Court held that phase separation of the cargo was inevitable and did not constitute ‘damage’, as alleged by the claimant assured. The Court also rejected the assured’s contention that the blending of the cargoes by the shippers was beyond their control and therefore fortuitous and covered by the policy.
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