What Marine Insurers Can Learn From The RENOS Case?

When assessing a constructive total loss of a ship, should the value of salvage services incurred prior to the issuance of a Notice of Abandonment be taken into account? Grant Pilkington offers advice in the context of a court decision in the RENOS engine room fire insurance claim and highlights its relevance for marine insurers in the UAE and Saudi Arabia.

In the recent insurance coverage litigation involving RENOS (Connect Shipping Inc. and another v Swedish Club and others [2016] EWHC 1580 (Comm)), the English High Court clarified a question which had long remained unanswered: When assessing a constructive total loss (CTL), should the value of salvage services incurred prior to the issuance of a Notice of  bandonment (NOA) be taken into account?