A vessel insured by a Russian company was driven ashore as a result of extreme weather. A general average was declared. The vessel was further declared a structural failure.
The Insured claimed all costs related to evacuation of the crew and provided a notice of possible pollution and removal of the wreck to the P&I insurer. The insurance company refused to pay and filed a claim to the court to revoke the insurance policy stating that the insured had provided deliberate misrepresentations when signing the policy.
Lawyers of KIAP Law Firm engaged by the shipowner issued a legal position based on Russian judicial practice and the contra proferentem principle on the inadmissibility of challenging the validity of the insurance policy after the loss event.
The insurer's claim was denied, which allowed the insured to receive compensation for the claimed loss.
The case was managed by Maria Krasnova.