Jurisdiction(s):
United Kingdom

England and Wales High Court: Insurers resist US$790m war risks reinsurance claims for Russia‑stranded aircraft, arguing no loss, lessors not parties, and UK/EU sanctions prohibit cover

Published on: 21 August 2024

Published by a Law360 reporter

Legal News

Article summary

Tokio Marine Kiln Insurance Ltd and MS Amlin Corporate Member Ltd argued that there was no loss of the aircraft under the war risks reinsurance policies

Five newly disclosed defences lodged at the High Court on 7 August 2024 state that no loss of the aircraft occurred under the war risks reinsurance. The insurers maintained that, from the standpoint of the Russian companies leasing the jets, there had been no loss or damage to the aircraft and engines. On that basis, they said no insured event had arisen, as the cover stipulates that both the policyholder and the policy beneficiary must suffer a loss.

The defences, filed for the underwriting members of the insurers’ syndicates, answer four claims concerning aircraft left in Russia after the invasion of Ukraine. Irish lessor Carlyle Aviation Management Ltd has brought proceedings against multiple insurers for US$88.5m to recover the value of one aircraft, alleging failure to indemnify after Moscow legally blocked the return of planes.

In three additional actions, Carlyle seeks nearly US$190m from its insurers, contending that the aircraft were a total loss once they became stranded in Russia...

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