Lam Seng Hang Co Pte Ltd v The Insurance Corporation of Singapore Ltd: Marine Insurance Claim Dispute
In Lam Seng Hang Co Pte Ltd v The Insurance Corporation of Singapore Ltd, the High Court of Singapore heard an application for leave to appeal by Lam Seng Hang Co Pte Ltd (LSH) against the decision of the District Court, which had dismissed their claim against The Insurance Corporation of Singapore Ltd (ICS) for failing to indemnify them for the loss of part of a cargo of mace. The High Court dismissed LSH's application for leave to appeal, finding no merit in their arguments that the trial judge erred in concluding that delay was a proximate cause of the loss and that ICS had failed to properly plead the defense of delay.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Marine insurance dispute over cargo loss. The court dismissed the insured's application for leave to appeal, finding no merit in their arguments.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lam Seng Hang Co Pte Ltd | Plaintiff, Applicant | Corporation | Application Dismissed | Lost | |
| The Insurance Corporation of Singapore Ltd | Defendant, Respondent | Corporation | Application Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Lee Meng | Judge | Yes |
4. Counsels
4. Facts
- LSH shipped mace from Belawan, Indonesia, to Singapore.
- ICS insured the cargo under a Marine Open Cover.
- The cargo was transferred to another vessel, the Seven Seas Beacon, without LSH's knowledge.
- The voyage took 17 days, longer than the usual two days.
- 117 bags of mace were found wet upon arrival in Singapore.
- LSH claimed $41,050.08 from ICS for the loss.
- ICS rejected the claim, citing delay as a cause of the damage.
5. Formal Citations
- Lam Seng Hang Co Pte Ltd v The Insurance Corporation of Singapore Ltd, OS 7014/2000, [2001] SGHC 31
6. Timeline
| Date | Event |
|---|---|
| Marine Open Cover commenced. | |
| LSH shipped 14 metric tons of mace from Belawan to Singapore. | |
| ICS issued LSH a policy for the cargo of mace. | |
| Trial judge heard LSH’s application for leave to appeal and dismissed it. | |
| Application dismissed. |
7. Legal Issues
- Leave to Appeal
- Outcome: The court dismissed the application for leave to appeal, finding no merit in the applicant's arguments.
- Category: Procedural
- Sub-Issues:
- Prima facie case of error
- Question of general principle decided for the first time
- Question of importance upon which further argument and a decision of a higher tribunal would be to the public advantage
- Related Cases:
- [1998] 2 SLR 777
- [1989] SLR 607
- [1989] 3 MLJ 5
- [1948] MLJ 164
- [1986] 2 MLJ 145
- [1997] 3 SLR 489
- Proximate Cause of Loss
- Outcome: The court upheld the trial judge's finding that delay was one of the proximate causes of the loss, thus allowing the insurer to avoid liability under the policy's exclusion clause.
- Category: Substantive
- Related Cases:
- [1998] 2 SLR 777
- Interpretation of Insurance Policy Clauses
- Outcome: The court interpreted clause 8.3 of the Institute Cargo Clauses (A) (ICC(A)) as not negating other terms of the policy, including exceptions to the insurer's liability for loss due to delay.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Failure to Indemnify
10. Practice Areas
- Commercial Litigation
- Appeals
11. Industries
- Shipping
- Spices Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Siang Hoa Goldsmith Pte Ltd v The Wing On Fire & Marine Insurance Co Ltd | Court of Appeal | Yes | [1998] 2 SLR 777 | Singapore | Cited for the principle that where there are two or more concurrent causes of a loss, the insurer is entitled to avoid liability if one of the causes falls within the ambit of an exception in the policy. |
| Anthony s/o Savarimiuthu v Soh Chuan Tin | High Court | Yes | [1989] SLR 607 | Singapore | Cited for the principles to be applied when determining whether to grant leave to appeal when the amount involved is below the statutory amount. |
| Anthony s/o Savarimiuthu v Soh Chuan Tin | High Court | Yes | [1989] 3 MLJ 5 | Malaysia | Cited for the principles to be applied when determining whether to grant leave to appeal when the amount involved is below the statutory amount. |
| Wong Yin v Wong Mook | N/A | Yes | [1948] MLJ 164 | Malaysia | Cited for the principle that to obtain leave to appeal when the amount involved is below the statutory amount, an applicant for leave must show that a serious and important issue of law is involved. |
| Pang Hon Chin v Nahar Singh | N/A | Yes | [1986] 2 MLJ 145 | Malaysia | Cited for the principle that circumstances for granting leave would include cases where an applicant is able to demonstrate a prima facie case of error or if the question is one of general principle upon which further argument and a decision of a higher tribunal would be to public advantage. |
| Lee Kuan Yew v Tang Liang Hong | N/A | Yes | [1997] 3 SLR 489 | Singapore | Cited for the three limbs which can be relied upon when leave to appeal is sought: (1) prima facie case of error; (2) question of general principle decided for the first time; and (3) question of importance upon which further argument and a decision of a higher tribunal would be to the public advantage. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| s 21(1) Supreme Court of Judicature Act (Cap 322) | Singapore |
| s 55(2)(b) of the Marine Insurance Act (Cap 387) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Marine Open Cover
- Institute Cargo Clauses (A)
- Proximate Cause
- Delay
- Leave to Appeal
- Inherent Vice
- Good Faith
15.2 Keywords
- Marine Insurance
- Cargo Loss
- Delay
- Leave to Appeal
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Marine Insurance | 80 |
| Insurance | 75 |
| Shipping Law | 65 |
| Civil Procedure | 50 |
| Appeals | 45 |
| Contract Law | 40 |
16. Subjects
- Insurance
- Marine Insurance
- Civil Procedure
- Appeals