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The UK Supreme Court ruling in Global Process System Inc. v Syarikat Takaful Malaysia Berhad (The Cendor MOPU decision) created a shock wave in the London marine insurance market as the decision changed the boundaries of doctrine in respect of the meaning of "perils of the sea" and "inherent vice". Both phrases play an important role in the insurance market, affecting both assureds and insurers and their respective interests under all classes of marine insurance policies.
This book reviews the origin of the clauses "perils of the sea" and "inherent vice" by tracing back through the early cases in order to understand the origin, and noting how and why the changes occurred. It will examine how the law has been developed in the recent cases, discussing whether the Supreme Court case, The Cendor MOPU’, has overruled the previous cases in terms of the words "inherent vice" and "perils of the sea".
Considering the impact of The Cendor MOPU decision in respect of the Marine Insurance Act 1906 as well as the standard cargo clauses, it evaluates whether the decision is consistent with the 1906 Act and the Clauses, discussing the effect of the decision on recent cases and on the insurance market.
