It is rare for insurers to succeed in refusing to pay out
because the insured ship was scuttled. The burden of proof on the
insurers is high and the evidence may be at the bottom of the sea.
The "BRILLANTE VIRTUOSO" ((1)
Suez Fortune Investments Ltd (2) Piraeus Bank AE v Talbot
Underwriting Ltd & 9 Ors [2019] EWHC 2599 (Comm)) is
one of those rare cases, and is particularly striking because the
scuttling involved a conspiracy between a large number of
individuals, including the owner.
Following the constructive total loss of the "BRILLANTE
VIRTUOSO" by fire, the owner and the mortgagee bank
brought proceedings against the war risk insurers to recover the
insured value of the vessel. The owner's claim was dismissed
when it failed to comply with disclosure orders, leaving the
mortgagee bank as sole claimant.
