“If you ask me for a valuation, I would comment: The identical Ferretti 112’ of 2007-2008 is listed from 6 to 7.3m euro. Various other same category yachts 2007-2008 are listed from 5 to 5.6m euro. The smaller Riva 92’ called Duchessa of 2008 is listed between 5 to 5.5m euro in various broker sites. Taking the above into consideration I would say the Galatea should be listed for 8.5m MAX and you should be happy to get 7m NET to your pocket. Hope the above comments would be of assistance to you to set her asking price.”
“We contacted the owner of the Riva 115 with hull #2 which is in Athens, Greece. He is interested to sell her, BUT he wants to hear an offer for you. ... Waiting an offer indication ... subject to viewing, testing … etc.”
“We have a client for 8 million euros, please forward this to the owner.”
“As there is going to be a new delivery for a 73m new building megayacht, please be so kind to make your best offer for its insurance.”
“… the current insurance expires on around the 14th April the vessel is currently valued at 13,000,000 Euros, no claims have been reported. ... I can advise that under their current policy with Allianz the premium is 60,000, including all the frills and spills P&I and Pa, Ded hulls 30,000.”
“Subject to satisfactory proposal form and crew details within 7 days of inception.”
“Don’t say it’s now the 13th May attachment! We bound this on the 13th April you then came back and said the actual attachment date was 15 May…. Can you please confirm the correct date of inception before underwriters rip my head off.”
“Please apologise to underwriters as we are led by our clients, the inception is definitely Friday the 13th.”
“Subject to satisfactory proposal form and crew details prior to inception.”
“the assured must disclose to the insurer, before the contract is concluded, every material circumstance which is known to the assured, and the assured is deemed to know every circumstance which, in the ordinary course of business, ought to be known by him. If the assured fails to make such disclosure, the insurer may avoid the contract.”
“The decision rests on the judge’s own appraisal of the relevance of the disputed fact to the subject-matter of the insurance; it is not something which is settled automatically by the current practice or opinion of insurers.”
“Well, again, not being a leader and writing very few – not a lot of yachts, I can’t honestly say whether it is an exception or not.”
“So as far as yachts are concerned, it’s a difficult one to say because I haven’t really considered that, not being a – you know, a major leader as far as yacht business is concerned.”
“Insurers should ensure that their policy would place the owner in the same position as before the loss and not in an advantaged position because of a marine casualty.”
“the moral hazard, which is this, which I am afraid is inherent in human nature, that there is a tendency if you are insured to a very high value not to be diligent in trying to get the thing back because you do so well out of losing the thing that it is rather a disappointment if you do not lose it; and the underwriter is entitled in the view of underwriters, and as I understand the law, to judge for himself whether he will take the risk of insuring a thing at a value so much higher than the present value of the thing insured that it will be a considerable gain to the assured if he does lose the thing.”
“to the insurer using a ship as part of the going concern of business a statement of value going much beyond the amount to be realised if the concern was stopped and the asset put upon the market is intelligible and legitimate.”
“there are often legitimate business reasons for this discrepancy between the selling value and the insured value, and it should not be assumed that it necessarily creates any actual conflict between the duty and interest on the part of the shipowner in regard to the safety of the thing insured.”
“in the case of a valued policy, where a yacht owner insures for the price he has paid, a discrepancy between the insured value and the open market value is not material.”
“We are instructed that neither our client nor its agents has copies of any valuations (formal or informal) in respect of Galatea.”
“To say that the contract is rescinded or has come to an end or has ceased to exist may in individual cases convey the truth with sufficient accuracy, but the fuller expression that the injured party is thereby absolved from future performance of his obligations under the contract is a more exact description of the position. Strictly speaking, to say that on acceptance of the renunciation of a contract the contract is rescinded is incorrect…. By that acceptance [the injured party] is discharged from further performance and may bring an action for damages, but the contract itself is not rescinded. ”
“Thus it has been held that, like arbitration clauses, such investigatory provisions are separate from the contract to which they are ancillary to the effect that they survive avoidance of the contract for repudiatory breach…”
“Unless otherwise agreed by the parties, an arbitration agreement which forms or was intended to form part of another agreement (whether or not in writing) shall not be regarded as invalid, non-existent or ineffective because that other agreement is invalid, or did not come into existence or has become ineffective, and it shall for that purpose be treated as a distinct agreement.”
“MISREPRESENTATION OR FRAUD This entire Policy shall be void if the Assured or their representative has concealed or misrepresented any material fact of circumstance concerning this insurance or the subject thereof, or the interest of the Assured therein, or in case of fraud or false swearing by the Assured touching any matter relating to this insurance or the subject thereof whether before or after a loss.”
“I think Mr Samuels is right when he says – indeed, it is elementary – that if there is an ambiguity in this question so that upon one view of the reasonable meaning which is conveyed to the reasonable reader of it the answer was not false, the company cannot say that on the other meaning of the words the answer was untrue so as to invalidate the policy.”
“If there is genuine ambiguity in a question put to an applicant by insurers in a proposal form or elsewhere, the latter cannot rely upon the answer as a misrepresentation of fact if that answer is true having regard to the construction which a reasonable man might put upon the question and which the applicant did in fact put upon it.”
“Every material representation made by the assured or his agent to the insurer during the negotiations for the contract, and before the contract is concluded, must be true. If it be untrue the insurer may avoid the contract.”
“Subject to satisfactory proposal form ... within 7 days of inception.”
“One effect of such subjectivities is that the information provided had to be accurate as at the date when the proposal forms were signed…”
“A representation is material which would influence the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk.”
“The claimant must show that the misrepresentation was a real and substantial cause of his entering into the contract on terms that he would not have accepted if he had been appraised of the truth. It may well be reasonable to infer, in the absence of evidence from the claimant, that he would not have contracted, either on the same terms or at all, if the misrepresentation had not been made.”
“In the case of contracts of insurance the position is different. The insured has a duty of disclosure of all material facts and, when non-disclosure is relied on no reliance on any statement has to be proved. In that context the question ‘what would you have done if you had been told the truth?’ is directly relevant and the ‘truth’ constitutes everything that it is material for the insurer to know. But in a non insurance context liability arises because of the falsity of the statement. The relevant test is what would have been done in the absence of the statement and a relevant question is what would the representee have done if given sufficient information to dispel its inaccuracy?”
“NOTICE OF LOSS AND FILING OF PROOF It is agreed by the Assured to report immediately to the Assurers or their representative who shall have issued this Policy every occurrence which may become a claim under this Policy, and shall also file with the Assurers or their representative, a detailed sworn proof of loss and proof of interest and/or receipted bills in case of a partial loss, within ninety (90) days from date of loss.”
“EXAMINATION UNDER OATH The Assured, as often as may be reasonably required, shall exhibit to any person designated by the Assurers all that remains of any property herein described and shall submit, and in so far as is within his or their power cause his or their employees, members of the household and others to submit to examinations under oath by any person named by the Assurers and subscribe the same; and as often as may be reasonably required, shall produce for examination all writings, books of account, bills, invoices and other vouchers, or certified copied [sic] thereof if originals be lost, at such reasonable time and place as may be designated by the Assurers or their representative, and shall permit extracts and copies thereof to be made. ...”
“TIME FOR SUIT AGAINST THE ASSURERS No suit or action on this Policy for the recovery of any claim shall be sustainable in any court of law or equity unless the Assured shall have fully complied with all the requirements of this Policy, nor unless commenced within one (1) year from the date of happening or the occurrence out of which the claim arose, provided that where such limitation of time is prohibited by the laws of the state wherein this Policy is issued, then, and in that event, no suit or action under this Policy shall be sustainable unless commenced within the shortest limitation permitted by the laws of such state.”
“Entirely without prejudice to the above position, Underwriters note that the various other issues raised in our letter of 22 December also remain unanswered and their position with regard to those matters remains reserved; in particular, Underwriters reserve the right to pursue those enquiries in due course in the event that the Assured disputes Underwriters’ position as expressed above.”
“The terms and conditions of the following clauses are to be regarded as substituted for those of the policy form to which they are attached, the latter being hereby waived, except provisions required by law to be inserted in the policy.”
“NOTICE OF CLAIM When it becomes evident that any accident or occurrence could give rise to a claim under this policy, prompt notice thereof shall be given to the Underwriters.”
“Provided that the policies on Hull and Machinery contain the above clauses with respect to the method of ascertaining whether the vessel is a constructive Total Loss (or clauses having a similar effect), the settlement of a claim for Total Loss under the policies on Hull and Machinery shall be accepted as proof of the Total Loss of the vessel under this policy; and in the event of a claim for Total Loss being settled under the policies on Hull and Machinery as a compromised total loss, the amount payable hereunder shall be the same percentage of the amount hereby insured as the percentage paid on the amount insured under the said policies. Should the vessel be a constructive Total Loss but the claim on the policies on Hull and Machinery be settled as a claim for partial loss, no payment shall be due under this Section (1). ”
“LOSS AND ABANDONMENT … 57. Actual total loss (1) Where the subject-matter insured is destroyed, or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof, there is an actual total loss. (2) In the case of an actual total loss no notice of abandonment need be given. … 60. Constructive total loss defined (1) Subject to any express provision in the policy, there is a constructive total loss where the subject-matter insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because it could not be preserved from actual total loss without an expenditure which would exceed its value when the expenditure had been incurred. (2) In particular, there is a constructive total loss— ... (ii) In the case of damage to a ship, where she is so damaged by a peril insured against, that the cost of repairing the damage would exceed the value of the ship when repaired. ... 61Effect of constructive total loss. Where there is a constructive total loss the assured may either treat the loss as a partial loss, or abandon the subject-matter insured to the insurer and treat the loss as if it were an actual total loss. 62Notice of abandonment. (1) Subject to the provisions of this section, where the assured elects to abandon the subject-matter insured to the insurer, he must give notice of abandonment. If he fails to do so the loss can only be treated as a partial loss. (2) Notice of abandonment may be given in writing, or by word of mouth, or partly in writing and partly by word of mouth, and may be given in any terms which indicate the intention of the assured to abandon his insured interest in the subject-matter insured unconditionally to the insurer. (3) Notice of abandonment must be given with reasonable diligence after the receipt of reliable information of the loss, but where the information is of a doubtful character the assured is entitled to a reasonable time to make inquiry. (4) Where notice of abandonment is properly given, the rights of the assured are not prejudiced by the fact that the insurer refuses to accept the abandonment. (5) The acceptance of an abandonment may be either express or implied from the conduct of the insurer. The mere silence of the insurer after notice is not an acceptance. (6) Where notice of abandonment is accepted the abandonment is irrevocable. The acceptance of the notice conclusively admits liability for the loss and the sufficiency of the notice. (7) Notice of abandonment is unnecessary where, at the time when the assured receives information of the loss, there would be no possibility of benefit to the insurer if notice were given to him. … 63Effect of abandonment. (1) Where there is a valid abandonment the insurer is entitled to take over the interest of the assured in whatever may remain of the subject-matter insured, and all proprietary rights incidental thereto. ...” ... (ii) In the case of damage to a ship, where she is so damaged by a peril insured against, that the cost of repairing the damage would exceed the value of the ship when repaired. ... ...”
“No recovery for a constructive total loss shall be had hereunder unless the expense of recovery and repairing the vessel shall exceed the amount of insurance on hull and machinery.”
“the object of notice, which is entirely different from abandonment, is that [the assured] may tell the underwriters at once what he has done, and not keep it secret in his mind, to see if there will be a change of circumstances. There is another reason: the thing in various ways may be profitably dealt with, as the ship was in this case. Therefore, the second reason for requiring notice of abandonment to be given to the underwriters is, that they may do, if they think fit, what in their opinion is best, and make the most they can out of that which is abandoned to them as the consequence of the election which the assured has come to.”
“In the event of Total Loss, the Underwriters waive interest in any proceeds from the sale or other disposition of the vessel or wreck.”
“in many cases in which a contractual chain comparable to that in the present case is constructed it may well prove to be inconsistent with an assumption of responsibility which has the effect of, so to speak, short circuiting the contractual structure so put in place by the parties. It cannot therefore be inferred from the present case that other sub-agents will be held directly liable to the agent's principal in tort.”
“an instruction by an insurance broker to a Lloyd’s broker to obtain a quotation and subsequently to effect insurance in accordance with the terms of the quotation, is an inadequate basis upon which to infer the assumption of direct responsibility by the Lloyd’s broker to the broker’s principal.”