Chubb Insurance v Sizer Metals: Marine Cargo Insurance Claim for Stolen Tin Concentrate

Chubb Insurance Singapore Limited appealed against the decision of the General Division of the High Court in favor of Sizer Metals Pte Ltd, concerning a claim for the loss of four shipments of tin concentrate insured under a Marine Cargo Open Policy. The key issue was whether the thefts occurred during the insured transit period. The Appellate Division of the High Court, with Belinda Ang Saw Ean JCA and Aedit Abdullah J in the majority, dismissed the appeal, finding that Sizer Metals had discharged its burden of proving the thefts occurred during the transit period, while Woo Bih Li JAD dissented.

1. Case Overview

1.1 Court

Appellate Division of the High Court of the Republic of Singapore

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Written Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Chubb Insurance appeals a judgment favoring Sizer Metals in a claim for stolen tin concentrate, focusing on the timing of the theft.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Chubb Insurance Singapore LimitedAppellant, DefendantCorporationAppeal DismissedLost
Sizer Metals Pte LtdRespondent, PlaintiffCorporationAppeal DismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJustice of the Court of AppealYes
Woo Bih LiJudge of the Appellate DivisionNo
Aedit AbdullahJudge of the High CourtNo

4. Counsels

Counsel NameOrganization
Goh Phai ChengGoh Phai Cheng LLC
Yee Mun Howe GeraldPremier Law LLC
Koh Kuan Hong John PaulPremier Law LLC
Vergis S AbrahamProvidence Law Asia LLC
Lee Weiming AndrewPDLegal LLC
Ramachandran Doraisamy RaghunathPDLegal LLC
Dumaguing Laurene Yzabel Rowena Adeline DagalangitPDLegal LLC

4. Facts

  1. Sizer Metals and Chubb Insurance entered into a Marine Cargo Open Insurance Policy in 2013.
  2. The policy insured Sizer's purchases of base metals, including tin concentrate, against loss during conveyance.
  3. Sizer entered into two sale and purchase contracts with Excellent Mining for tin concentrate in 2017 and 2018.
  4. The first five shipments under the First Contract were received without incident.
  5. The Sixth to Ninth Shipments were discovered to have been replaced with iron oxide upon arrival in Penang.
  6. Marine Cargo Insurance Certificates were issued for the Four Shipments.
  7. Sizer sent notices of claim to Chubb after discovering the thefts.

5. Formal Citations

  1. Chubb Insurance Singapore Ltd v Sizer Metals Pte Ltd, Civil Appeal No 37 of 2022, [2023] SGHC(A) 17
  2. Sizer Metals Pte Ltd v Chubb Insurance Singapore Ltd, HC/S 1248/2019, [2022] SGHC 51

6. Timeline

DateEvent
Marine Cargo Open Insurance Policy entered into between Sizer and Chubb
First sale and purchase contract between Sizer and Excellent Mining for tin concentrate
Second sale and purchase contract between Sizer and Excellent Mining for tin concentrate
Marine Cargo Insurance Certificate issued for the Sixth Shipment
Marine Cargo Insurance Certificate issued for the Seventh Shipment
Marine Cargo Insurance Certificate issued for the Eighth Shipment
Marine Cargo Insurance Certificate issued for the Ninth Shipment
Discovery of iron oxide in the Sixth Shipment upon arrival in Penang
Sizer sent notices of claim for the Sixth Shipment to Chubb
Arrival of the Seventh Shipment in Penang
Sizer sent notices of claim for the Seventh Shipment to Chubb
Arrival of the Eighth and Ninth Shipments in Penang
Sizer sent notices of claim for the Eighth and Ninth Shipments to Chubb
Representatives from Sizer and Chubb visited Excellent Mining's premises and the Bonded Warehouse to investigate
Chubb rejected Sizer's claims
Rwanda's National Public Prosecution Authority released a report concluding that the thefts had not been committed in Rwanda
Parties submitted the Agreed Statement of Facts and Issues No 4 to the Judge
Hearing date
Hearing date
Judgment reserved

7. Legal Issues

  1. Burden of Proof
    • Outcome: The court found that Sizer Metals had discharged its legal burden of proving that the thefts occurred during the transit period.
    • Category: Procedural
    • Sub-Issues:
      • Shifting evidential burden
      • Prima facie evidence
  2. Interpretation of Insurance Policy
    • Outcome: The court interpreted the Transit Clause in cl 8.1 of the ICC(A) to determine the operative duration of the insurance.
    • Category: Substantive
    • Sub-Issues:
      • Transit Clause
      • All Risks
  3. Fortuitous Loss
    • Outcome: The court determined whether the loss was due to a fortuitous casualty, namely theft, and whether it occurred during the period of insurance.
    • Category: Substantive
    • Sub-Issues:
      • Theft
      • Causation

8. Remedies Sought

  1. Monetary Damages
  2. Indemnification

9. Cause of Actions

  • Breach of Contract
  • Insurance Claim

10. Practice Areas

  • Commercial Litigation
  • Insurance Claims

11. Industries

  • Insurance
  • Commodities Trading
  • Mining

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sizer Metals Pte Ltd v Chubb Insurance Singapore LtdHigh CourtYes[2022] SGHC 51SingaporeThe current appeal arises from the decision of this case.
Rhesa Shipping Company SA v Edmunds (The Popi M)House of LordsYes[1985] 1 WLR 948England and WalesCited regarding the process of elimination in determining the cause of loss.
British & Foreign Marine Insurance Co Ltd v GauntHouse of LordsYes[1921] 2 AC 41England and WalesCited as a leading case involving 'all risks' insurance policies.
Britestone Pte Ltd v Smith & Associates Far East, LtdCourt of AppealYes[2007] 4 SLR(R) 855SingaporeCited for the explanation of the shifting evidential burden of proof.
V Nithia (co-administratrix of the estate of Ponnusamy Sivapakiam, deceased) v Buthmanaban s/o Vaithilingam and anotherCourt of AppealYes[2015] 5 SLR 1422SingaporeCited regarding parties being bound by their pleadings.
Fuerst Day Lawson Ltd v Orion Insurance Co LtdUnknownYes[1980] 1 Lloyd’s Rep 656England and WalesCited as an instance of the defence of non-existence of subject matter succeeding.
Jet Holding Ltd and others v Cooper Cameron (Singapore) Pte Ltd and another and other appealsCourt of AppealYes[2006] 3 SLR(R) 769SingaporeCited regarding the truth of contents of documents in an agreed bundle.
Goldrich Ventures Pte Ltd and another v Halcyon Offshore Pte LtdUnknownYes[2015] 3 SLR 990SingaporeCited regarding s 32(1)(k) of the Evidence Act.
Keimfarben GmbH & Co KG v Soo Nam YuenHigh CourtYes[2004] 3 SLR(R) 534SingaporeCited regarding the admissibility of hearsay evidence.
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 othersHigh CourtYes[2010] 1 SLR 428SingaporeCited regarding the court deliberating on probabilities and not possibilities.
Clarke Beryl Claire (personal representative of the estate of Eugene Francis Clarke, deceased) and others v SilkAir (Singapore) Pte LtdUnknownYes[2002] 1 SLR(R) 1136SingaporeCited regarding the court's ability to conclude that the proximate cause of the ship's loss remains in doubt.
Wartsila Singapore Pte Ltd v Lau Yew Choong and another suitHigh CourtYes[2017] 5 SLR 268SingaporeCited regarding the causation inquiry and the burden of proving his case on causation remains on the claimant throughout.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Marine Cargo Open Policy
  • Institute Cargo Clauses (A) (ICC(A))
  • Transit Clause
  • Tin Concentrate
  • Iron Oxide
  • Theft
  • Excellent Mining
  • Bonded Warehouse
  • Dar es Salaam
  • Penang
  • Fortuitous Loss
  • Burden of Proof
  • Complicity

15.2 Keywords

  • Marine Insurance
  • Cargo Insurance
  • Theft
  • Tin Concentrate
  • Iron Oxide
  • Insurance Claim
  • Singapore Law

17. Areas of Law

Area NameRelevance Score
Marine Insurance80
Insurance75
Property Insurance70
Cargo Insurance65
Theft60
Fraud and Deceit50
Contract Law30
Evidence25

16. Subjects

  • Insurance Law
  • Marine Insurance
  • Contract Law
  • Commercial Law