How Does COVID-19 Affect Marine Insurance Cover Through the Requirement of Seaworthiness?

Abstract

This paper addresses the legal implications of COVID-19 upon the procurement of marine cargo insurance cover. It clarifies the relationship between warranty of seaworthiness and duty of disclosure, both of which are imposed upon the insured cargo owner under contract of marine insurance. The paper discusses the effect of COVID-19 that the insured cargo owner may invoke to rebut the allegation of not satisfying the duty of disclosure in terms of the seaworthiness of a vessel, which may deprive the insured cargo owner of compensation. The study deploys qualitative and black letter approaches by analysing English and US law, and the relevant international documents. The authors suggest that US law should adopt the same approach as English law, so that the insured cargo owner will not be forced to prove the relation between the restrictions imposed under COVID-19 and its failure to disclose material facts related to seaworthiness.