Bayswater Carriers v QBE Insurance: Marine Insurance, Piracy & Violent Theft Claim
Bayswater Carriers Pte Ltd sued QBE Insurance (International) Pte Ltd in the High Court of Singapore, seeking coverage under a marine hull policy for the loss of its tug, BW Wisdom, due to armed intruders. Bayswater claimed the loss was due to piracy or violent theft, or alternatively, the negligence of the master or crew. The court, presided over by Justice Belinda Ang Saw Ean, found in favor of Bayswater, holding that the loss was a result of piracy and dismissing QBE's counterclaim for breach of sue and labor obligations.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Bayswater Carriers sued QBE Insurance for the loss of its tug, BW Wisdom, due to piracy or violent theft. The court ruled in favor of Bayswater.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Bayswater Carriers Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| QBE Insurance (International) Pte Ltd | Defendant | Corporation | Counterclaim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | Yes |
4. Counsels
4. Facts
- Bayswater Carriers owned the tug BW Wisdom, insured by QBE Insurance.
- The BW Wisdom was insured for $730,000 against loss by piracy or violent theft.
- On January 28, 2003, armed men boarded the tug within Batu Ampar port limits.
- The intruders threatened the crew with parangs and tied their hands.
- The intruders stole the tug, and the crew was later abandoned at sea.
- The tug's name was changed, and its markings were blacked out.
- The tug was never recovered.
5. Formal Citations
- Bayswater Carriers Pte Ltd v QBE Insurance (International) Pte Ltd, Suit 1220/2003, [2005] SGHC 185
6. Timeline
| Date | Event |
|---|---|
| Marine hull policy No ZH1001235 was issued | |
| BW Wisdom was hijacked within the port limits of Batu Ampar, Batam | |
| Crew was freed near Pulau Penggegar, Indonesia | |
| Incident reported to PT Yasa Tirta Perdana | |
| MPA informed IMB of the incident | |
| Crewmembers’ joint statements were taken | |
| Crew interviewed at Batam by Gan Kee Giap | |
| CCCA’s report was issued | |
| Bayswater attempted to give notice of abandonment | |
| QBE rejected the abandonment | |
| Bayswater wrote to the Monetary Authority of Singapore | |
| QBE responded directly to Bayswater | |
| Bayswater replied to QBE | |
| Tan provided the engine number to Chay | |
| Tan learnt from Chay that the lead to a Mahakam log camp drew a blank | |
| Chay informed QBE of a lead | |
| QBE gave a letter of authorisation to Duwiry | |
| Just Law LLC sent a demand letter | |
| QBE faxed Just Law LLC | |
| Writ was issued | |
| Defence was filed | |
| Further and Better Particulars filed | |
| Noel Choong notified Bayswater | |
| IMB faxed QBE | |
| IMB wrote to QBE | |
| Chay’s expert report was issued | |
| QBE amended its Defence | |
| Decision Date |
7. Legal Issues
- Whether loss suffered by assured covered under marine hull policy
- Outcome: The court held that the loss was covered under the marine hull policy.
- Category: Substantive
- Whether piracy or violent theft by persons from outside assured's vessel proximate cause of assured's loss
- Outcome: The court held that piracy was the proximate cause of the assured's loss.
- Category: Substantive
- Whether negligence of master of vessel and lack of due diligence by assured proximate cause of loss
- Outcome: The court held that the negligence of the master was not the proximate cause of the loss.
- Category: Substantive
- Whether assured taking reasonable measures to avert or minimise loss
- Outcome: The court held that the assured had taken reasonable measures to avert or minimize the loss.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Indemnity
9. Cause of Actions
- Breach of Marine Insurance Policy
- Claim for Indemnity
10. Practice Areas
- Commercial Litigation
- Insurance Claims
11. Industries
- Shipping
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Athens Maritime Enterprises Corporation v Hellenic Mutual War Risks Association (Bermuda) Ltd (The Andreas Lemos) | N/A | Yes | [1982] 2 Lloyd’s Rep 483 | N/A | Cited to establish that force or threat of force is essential to constitute a piratical act. |
| Republic of Bolivia v Indemnity Mutual Marine Assurance Company Limited | English Court of Appeal | Yes | [1909] 1 KB 785 | England and Wales | Cited to differentiate piracy from maritime terrorism, emphasizing that piracy is for personal gain. |
| La Fabrique de Produits Chimiques Societe Anonyme v F N Large | N/A | Yes | (1922) 13 Ll L Rep 269 | N/A | Cited to draw an analogy between breaking into a warehouse and the intruders severing the mooring ropes of the tug. |
| US v Furlong | US Supreme Court | Yes | 18 US 184 (1820) | United States | Cited to support the broad definition of 'at sea,' stating that a vessel in an open road may be found to be on the seas. |
| Cameron v HM Advocate | N/A | Yes | 1971 JC 50 | N/A | Cited to support the view that the difference between piracy on the high seas and within territorial waters relates to the basis of jurisdiction. |
| Integrated Container Service Inc v British Traders Insurance Co Ltd | N/A | Yes | [1984] 1 Lloyd’s Rep 154 | N/A | Cited to define the duty to act in circumstances where a reasonable man intent upon preserving his property would act. |
| Noble Resources Ltd and Unirise Development Ltd v George Albert Greenwood (The Vasso) | N/A | Yes | [1993] 2 Lloyd’s Rep 309 | N/A | Cited to explain that underwriters have to show that the step was a proper one which a reasonable assured should have taken. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Marine Insurance Act (Cap 387, 1994 Rev Ed) | Singapore |
| Penal Code (Cap 224, 1985 Rev Ed) | Singapore |
| Merchant Shipping Act (Cap 179, 1996 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Marine Insurance
- Piracy
- Violent Theft
- Proximate Cause
- Sue and Labour
- ITC (Institute Time Clauses)
- Hull and Machinery Underwriter
- BW Wisdom
- Batu Ampar
- Negligence
15.2 Keywords
- Marine Insurance
- Piracy
- Violent Theft
- Singapore
- Tug
- BW Wisdom
- QBE Insurance
- Bayswater Carriers
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Marine Insurance | 90 |
| Piracy | 85 |
| Insurance | 75 |
| Shipping Law | 65 |
| Admiralty and Maritime Law | 60 |
| Contract Law | 50 |
16. Subjects
- Marine Insurance
- Insurance Law
- Shipping Law
- Commercial Law