M’Cowan v Baine and Johnston: HL 27 Jul 1891

Insurance – Maritime Policy – Construction – Vessel under Tow – Collision with Tug.
A ship was insured ‘from the Clyde (in tow) to Cardiff’ upon a policy which bore that ‘if the ship hereby insured shall come into collision with any other ship or vessel, and the insured shall in consequence thereof become liable to pay, and shall pay, to the persons interested in such other ship or vessel . . any sum of money, . . we (the underwriters) will pay the assured three-fourths of the sum so paid.’ A tug while towing said ship collided with another vessel and sank it. Both the tug and the tow were by the Admiralty Court in England found liable in damages to the owners of the vessel sunk.
Held ( aff. the decision of the Second Division- diss. Lord Bramwell) that the owners of the tow were entitled to recover under the policy of insurance, although the tow had not itself been directly in collision.

Judges:

Earl of Selborne, and Lords Watson, Bramwell, and Morris

Citations:

[1891] UKHL 943, 28 SLR 943

Links:

Bailii

Jurisdiction:

England and Wales

Transport, Insurance

Updated: 29 June 2022; Ref: scu.636781