Accidental damage, courting the risk and proximate cause under a marine insurance policy

IN BRIEF - FEDERAL COURT DETERMINES THAT APPLICANT NOT ENTITLED TO INDEMNITY

The decision of Chief Justice Allsop in Sheehan v Lloyds Names Munich Re Syndicate [2017] FCA 1340 handed down on 17 November 2017 involved analysis of issues of causation and interpretation of the meaning of "accidental loss or damage" in a marine insurance policy.

EXPERT REFEREE FINDS APPLICANT FAILED TO COMPLY WITH OPERATING MANUAL AND DESIGN OF OIL COOLER GASKET FAULTY

In September 2015, significant damage was sustained to the starboard engine of a Sunseeker Manhattan 60 with the amount of loss being agreed at approximately $96,000. Prior to the failure of the starboard engine the alarm system had activated causing the speed of both engines to be automatically slowed, before the starboard engine shut down completely.

The Court appointed expert referee concluded that the applicant had failed to comply...