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LEGAL REPORT<br />
The Dubai Cassation Court upholds insurers’<br />
coverage defence to a marine claim<br />
By Brian Boahene<br />
Partner<br />
Ince & Co Middle East LLP<br />
By Khalid Hamed<br />
Partner<br />
Ince & Co Middle East LLP<br />
By Sheridan Steiger<br />
Senior Associate<br />
Ince & Co Middle East LLP<br />
In a recent judgment the Dubai<br />
Court of Cassation upheld multiple<br />
defences raised by insurers against<br />
coverage of a cargo claim following<br />
partial loss to a cargo of direct<br />
reduced iron.<br />
The background facts<br />
Insurers issued a marine insurance<br />
cargo policy for a cargo of 30,000 MT<br />
of direct reduced iron (“DRI”) to be<br />
carried from Iran to China. The policy<br />
stated that it was in respect of cargo<br />
carried from Shahid Rajaee Port or<br />
Bandar Abbas, Iran to Shanghai,<br />
China. The insured value was around<br />
AED 53m. The policy incorporated<br />
the Institute Cargo Clauses A.<br />
The vessel sailed from Bandar<br />
Abbas on 16 June 2011 and arrived<br />
at Zhangjiagang port, China, on 23<br />
July 2011, commencing discharge<br />
operations. Zhangjiagang port is<br />
approximately 150km north of<br />
Shanghai port and no notice of the<br />
change of discharge port was given<br />
to insurers prior to the vessel arriving<br />
in Chinese waters.<br />
Discharge of the DRI was<br />
completed late on 28 July 2011<br />
and heavy rainfall was recorded in<br />
the early hours of that day. The<br />
contemporaneous evidence showed<br />
78 NOVEMBER - DECEMBER 2018
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