MARINE INSURANCE: HIGH COURT REVISITS INSURABLE INTEREST

Friday, June 07, 2013
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In the recent case of Lorcom Thirteen (Pty) Ltd v Zurich Insurance Company South Africa an interesting factual scenario gave the Western Cape High Court an opportunity to assess the correct approach to the question of insurable interest under South African law. The case concerned the MFV Buccaneer, a fishing vessel lost at sea in 2008. Underwriters repudiated the claim under the policy for lack of an insurable interest.rnrnThe focal point of the repudiation was that the insured, Lorcom, had no direct ownership interest in the subject matter. At the time of the loss, the vessel was owned by Gansbaai Fishing Wholesalers (GWS), a wholly owned subsidiary of Lorcom.

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