Siam City Law Offices (SCL) successfully represented a top four rubber exporter company, as the Plaintiff, to pursue marine insurance compensation from two prominent marine insurance companies, as the Co-Defendant.

The Plaintiff entered into the marine insurance policy, and the parties agreed to incorporate further details in a subsequent policy (sub-policy) for each shipment. On 4 August 2012, an accident occurred during the transportation of valuable cargo from Kantang Port of Thailand to Penang Port of Malaysia. The ship endured a large thunderstorm and was battered by waves, which caused its cargo to be lost overboard into the deep sea, where it sank.


It was claimed by the Plaintiff that the accident was covered by the marine insurance policy and also by the sub-policy. However, the Co-Defendant ignored their responsibility to pay for the losses/damages and relied on the defence that: such marine insurance was not efficient to be an open policy; the transport direction was different as that stated in the sub-policy; the period of prescription of the Plaintiff’s claim had lapsed; and the vessel was not seaworthy.


It is interesting that the Central Intellectual Property and International Trade Court, as the court of first instance, viewed that the disputed marine insurance should be considered as an open policy since it had been the ordinary practice of the party and pursuant to the principle of ‘Bona Fide’, and subsequently settled the case in favour of the Plaintiff. The Co-Defendant filed an appeal to the Supreme Court, which is currently under consideration.


The SCL team was expertly led by litigation partners, Mr. Vira Kammee and Mr. Weerayuth Sajjaphanroj, and was supported by senior associates Mr. Thawan Suprom and Mr. Pongsa Ruang-Ngam.


This is an interesting case as it setsthe standard on how the Central Intellectual Property and International Trade Court interpreted the marine open policy. The impact of this decision is that it has saved our client Baht 50 million, which is a significant amount.






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