Pan-United Shipyard v India International Insurance: Ship Repairer's Insurance Claim
Pan-United Shipyard Pte Ltd, a shipbuilder and repairer, sued India International Insurance Pte Ltd in the High Court of Singapore, seeking a declaration that they were entitled to be indemnified under a Collective Policy for legal costs incurred in defending a suit. The suit arose from damage allegedly caused by Pan-United's grit blasting and spray painting works on a vessel, the Ikopa, to a yacht, the El Corsario. The court, presided over by Chao Hick Tin JA and Goh Joon Seng J, dismissed Pan-United's claim, holding that the insurance policy only covered liability incurred as the owner of the vessel, not as its repairer. The claim in the original suit was dismissed by consent with no order as to costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Claim Dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Pan-United Shipyard sued India International Insurance for indemnity under a policy. The court dismissed the claim, holding the policy covered liability as owner, not repairer.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| India International Insurance Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won | |
| Pan-United Shipyard Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of the Court of Appeal | No |
| Goh Joon Seng | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Jainil Bhandari | Khattar Wong & Partners |
| Navinder Singh | Joseph Tan Jude Benny |
4. Facts
- Pan-United Shipyard contracted with Ranger Shipping to convert a bulk carrier into a clean product tanker.
- Pan-United Shipyard obtained a Collective Policy of Insurance from India International Insurance.
- The Collective Policy insured Pan-United Shipyard against liability as 'Owner of the Vessel'.
- Damage was allegedly caused to a yacht, the El Corsario, by grit blasting and spray painting works.
- The owners of El Corsario commenced proceedings against Pan-United Shipyard.
- India International Insurance denied liability to indemnify Pan-United Shipyard.
- The claim against Pan-United Shipyard was eventually settled with no order as to costs.
5. Formal Citations
- Pan-United Shipyard Pte Ltd v India International Insurance Pte Ltd, OS 137/1998, [2000] SGHC 14
6. Timeline
| Date | Event |
|---|---|
| Contract signed between Pan-United Shipyard and Ranger Shipping to convert the Ikopa. | |
| Conversion work on the Vessel commenced. | |
| Conversion work on the Vessel completed. | |
| Pan-United Shipyard received a claim from the owners of the El Corsario. | |
| India International Insurance denied liability. | |
| Owners of El Corsario commenced proceedings against Pan-United Shipyard. | |
| Pan-United Shipyard filed proceedings against India International Insurance. | |
| Claim in Suit 1627 of 1996 was settled. | |
| Pan-United Shipyard amended their claim. | |
| Judgment issued. |
7. Legal Issues
- Interpretation of Insurance Policy
- Outcome: The court held that the insurance policy only covered liability incurred as the owner of the vessel, not as its repairer.
- Category: Substantive
- Sub-Issues:
- Scope of indemnity
- Liability as owner versus liability as repairer
- Related Cases:
- [1980] 1 Lloyd’s Law Reports 359
- [1962] 1 Lloyd’s List Law Reports 117
- [1962] 1 Lloyd’s List Law Reports 626
- [1997] 1 Lloyd’s Law Reports 407
8. Remedies Sought
- Declaration of Entitlement to Indemnity
- Reimbursement of Legal Costs
9. Cause of Actions
- Breach of Contract
- Claim for Indemnity
10. Practice Areas
- Commercial Litigation
- Insurance Coverage
- Construction Disputes
11. Industries
- Shipbuilding
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Rigby & Ano. v Sun Alliance & London Insurance Ltd | N/A | Yes | [1980] 1 Lloyd’s Law Reports 359 | N/A | Cited for the principle that liability must attach to the insured 'as owner' to be covered by the policy. |
| Sturge v Hackett | N/A | Yes | [1962] 1 Lloyd’s List Law Reports 117 | N/A | Cited for the principle that the words 'as occupier' connote that occupation is an essential ingredient of the liability. |
| Sturge v Hackett | Court of Appeal | Yes | [1962] 1 Lloyd’s List Law Reports 626 | N/A | Cited to support the construction of the words ‘as occupier’. |
| Chrismas v Taylor Woodrow Civil Engineering Ltd and Sir Robert McAlpine Ltd | N/A | Yes | [1997] 1 Lloyd’s Law Reports 407 | N/A | Distinguished based on the special wording of sub-paragraph 4 of the policy in that case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Insurance Act (Cap 142) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Collective Policy
- Indemnity
- Ship Repairer
- Owner of the Vessel
- Grit Blasting
- Spray Painting
- Accident or Occurrence
15.2 Keywords
- insurance
- shipyard
- indemnity
- ship repair
- liability
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Shipping Law | 80 |
| Insurance | 75 |
| Contract Law | 60 |
| Shipbuilding | 50 |
16. Subjects
- Insurance
- Shipping
- Contract Law