Page 39 - The Insurance Times January 2025

Case Study

The SS Robert Bruce

Case: A Landmark

in Maritime

Insurance Law Dr. Soumi Mukherjee

M.A., PH.D

We all are aware that insurance is a very important security or guarantee for any ship or cargo
owner, when he is in the shipping business. Not only does it deal with the insurance of loss or
damage to ships, cargo, terminals, but also against natural calamities or any unforeseen
circumstances between the point of origin and the final destination.

W e all are aware that insurance is a very impor- The appellants were The Albion Fire and Life Insurance Com-
tant security or guarantee for any ship or cargo
pany and they were represented by Warner Phipps, who was
owner, when he is in the shipping business. Not
the secretary for the company in London, and Thomas
only does it deal with the insurance of loss or damage to Hamilton, who was their agent at Glasgow. The other ap-
ships, cargo, terminals, but also against natural calamities pellants were the directors and the proprietors of the com-
or any unforeseen circumstances between the point of ori- pany. The respondents were the proprietors of the steam
gin and the final destination. But, what if, the ship owner boat 'Robert Bruce.'
realises that he cannot get any claims from the insurance
company, despite being a diligent premium payee, and the It is also known as the Bubble Act. This 1720 statute aimed
reason- conditions apply*. to prevent speculative bubbles by restricting the formation
of joint-stock companies without royal charter. In the con-
The 1828 case of Albion Fire and Life Insurance Company vs text of this case, it established a monopoly for sea insurance
William Mills has been one of the landmark judgments heard to certain companies, thereby impacting Albion Insurance
at the United Kingdom House of Lords. Not only did this case Company's contractual obligations.
delve into the intricacies of insurance law, but it also par-
ticularly focused on the territorial application of statutes The wooden paddle steamer boat Robert Bruce first started
governing insurance contracts. This case arose when the her services in 1819 between Glasgow and Liverpool in
Albion Fire and Life Insurance Company, an English insurer, United Kingdom. Over the later years, she was used to sail
declined to honour a fire insurance claim (for £3000) on the on other routes too. On 27th September, 1821, according
steam-vessel 'Robert Bruce', claiming that their policy did to the log written by the master Capt. Carlyle, Robert Bruce
not include coverage while the vessel was at sea-a provi- was set to sail from Liverpool to Dublin (a voyage under-
sion aligning with the statute 6 Geo. I. C. 18, which monopo- taken by permission of the insurers). She was carrying a crew
lized sea insurance to specific companies. The additional of 14 along with the Captain, and also had 24 passengers
confusion arose as to whether Scots or English law applied. on board the steam boat. Unfortunately, when she had just

The Insurance Times January 2025 35