Sizer Metals v Chubb Insurance: Marine Cargo Insurance Claim for Stolen Tin Concentrate
Sizer Metals Pte Ltd sued Chubb Insurance Singapore Limited in the General Division of the High Court of Singapore, seeking indemnity under a marine cargo insurance policy for the loss of tin concentrate in several shipments. The tin concentrate was stolen and replaced with iron oxide during transit from Kigali, Rwanda, to Penang, Malaysia. Tan Siong Thye J ruled in favor of Sizer Metals, holding that the thefts occurred during the Transit Period covered by the insurance policy and allowed the claim for US$1,154,508.94.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Sizer Metals sued Chubb Insurance for a claim under a marine cargo insurance policy after tin concentrate shipments were stolen and replaced with iron oxide. The court ruled in favor of Sizer Metals.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Sizer Metals Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Ramachandran Doraisamy Raghunath, Lee Weiming Andrew, Kieran Martin Singh Dhaliwal |
| Chubb Insurance Singapore Limited | Defendant | Corporation | Claim Dismissed | Lost | Yee Mun Howe Gerald, Prakash Nair |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Tan Siong Thye | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ramachandran Doraisamy Raghunath | PDLegal LLC |
| Lee Weiming Andrew | PDLegal LLC |
| Kieran Martin Singh Dhaliwal | PDLegal LLC |
| Yee Mun Howe Gerald | Premier Law LLC |
| Prakash Nair | Premier Law LLC |
4. Facts
- Sizer Metals ordered nine shipments of tin concentrate from Excellent Mining in Rwanda.
- The first five shipments arrived safely in Penang, Malaysia.
- The sixth to ninth shipments arrived in Penang with the tin concentrate replaced by iron oxide.
- Sizer Metals had an insurance policy with Chubb Insurance for these shipments.
- The insurance policy covered losses during the Transit Period, defined as after the commencement of transit.
- The sixth shipment's Transit Period started when the tin concentrate left Excellent Mining's premises.
- The seventh to ninth shipments' Transit Period started upon customs clearance at the Bonded Warehouse in Kigali, Rwanda.
- The National Public Prosecution Authority of Rwanda issued a report concluding that the thefts did not occur in Rwanda.
5. Formal Citations
- Sizer Metals Pte Ltd v Chubb Insurance Singapore Ltd, Suit No 1248 of 2019, [2022] SGHC 51
6. Timeline
| Date | Event |
|---|---|
| Marine Cargo Insurance Policy No 92359646 entered into | |
| First sale and purchase contract with Excellent Mining entered into | |
| Second sale and purchase contract with Excellent Mining entered into | |
| Sixth shipment arrived at Malaysian Smelting Corporation Ltd in Penang, Malaysia | |
| Notice of claim for the sixth shipment sent to the defendant | |
| Seventh shipment delivered to Malaysian Smelting Corporation Ltd | |
| Notice of claim for the seventh shipment sent to the defendant | |
| Eighth and ninth shipments delivered to Malaysian Smelting Corporation Ltd in Penang | |
| Notice of claim for the eighth and ninth shipments sent to the defendant | |
| Plaintiff's representative and defendant's expert travelled to Rwanda | |
| Defendant rejected the plaintiff’s claims for the sixth to the ninth shipments | |
| Plaintiff made a formal demand for payment of its claims | |
| National Public Prosecution Authority of Rwanda issued a report | |
| Suit No 1248 of 2019 filed | |
| Trial began | |
| Trial concluded | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Insurable Interest
- Outcome: The court held that the plaintiff had an insurable interest at the time of the loss.
- Category: Substantive
- Scope of Insurance Coverage
- Outcome: The court held that the thefts occurred during the Transit Period covered by the insurance policy.
- Category: Substantive
- Burden of Proof
- Outcome: The court held that the plaintiff had discharged its burden of proving that the thefts took place during the Transit Period.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Insurance Claim
10. Practice Areas
- Commercial Litigation
- Insurance Claims
11. Industries
- Insurance
- Metals Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Rhesa Shipping Company SA v Edmunds (The Popi M) | Court of Appeal | Yes | [1985] 1 WLR 948 | England and Wales | Cited to establish the principle that the claimant bears the burden of proof and must persuade the court that their case has been proven on the balance of probabilities. |
| Clarke Beryl Claire (personal representative of the estate of Eugene Francis Clarke, deceased) and others v SilkAir (Singapore) Pte Ltd | Singapore Court of Appeal | Yes | [2002] 1 SLR(R) 1136 | Singapore | Cited for adopting the principle in The Popi M that a claimant bears the burden of proof and must persuade the court that their case has been proven on the balance of probabilities. |
| Surender Singh s/o Jagdish Singh and another (administrators of the estate of Narindar Kaur d/o Sarwan Singh, deceased) v Li Man Kay and others | Singapore Court of Appeal | Yes | [2010] 1 SLR 428 | Singapore | Cited for adopting the principle in The Popi M that a claimant bears the burden of proof and must persuade the court that their case has been proven on the balance of probabilities. |
| Wartsila Singapore Pte Ltd v Lau Yew Choong and another suit | High Court | Yes | [2017] 5 SLR 268 | Singapore | Cited for adopting the principle in The Popi M that a claimant bears the burden of proof and must persuade the court that their case has been proven on the balance of probabilities. |
| Hua Seng Sawmill Co Bhd v QBE Insurance (Malaysia) Bhd | High Court | Yes | [2003] 4 SLR(R) 449 | Singapore | Cited to show that a process of elimination entails reversing the standard of proof from a balance of probabilities to a balance of improbabilities. |
| Hub Warrior Sdn Bhd v QBE Insurance (Malaysia) Bhd | High Court | Yes | [2004] SGHC 279 | Singapore | Cited to show that a process of elimination would arrogate the burden to the defendant to prove the truth of an alternative cause. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Tin Concentrate
- Cassiterite
- Iron Oxide
- Transit Period
- Marine Cargo Insurance
- Excellent Mining
- Bonded Warehouse
- Precintia Clips
- 3Ts Minerals
- NPPA Report
15.2 Keywords
- Insurance
- Marine Cargo
- Theft
- Tin Concentrate
- Sizer Metals
- Chubb Insurance
- Singapore
- Commercial Litigation
16. Subjects
- Insurance Law
- Commercial Law
- International Trade
17. Areas of Law
- Insurance Law
- Marine Cargo Insurance
- Theft and Fraud