Decision ID: 001165

In October 2000 the 1992 Fund Executive Committee noted that a local salvage and towing company had commenced legal proceedings in a Court in Manila against the shipowner and insurer claiming £730 000. It was further noted that the insurer had opposed the claim on the grounds of the shipowner having been in breach of the insurance policy and had maintained that it was entitled to recover from the shipowner and/or the 1992 Fund the amounts it had already paid in compensation. The Committee endorsed the Director’s opinion that any claim by the insurer had to be made against the shipowner, since the total amount of the claims paid fell well below the limitation amount applicable to the vessel. It was noted, however, that the legal situation might be more complicated as regards claims that had not been paid and that the Committee might have to consider this issue at a further session.