Jurisdiction(s):
United Kingdom

High Court of England and Wales: insurers resist WWTAI’s US$44.9m claim for Russian‑detained aircraft, asserting no loss, war‑risk exclusion and no reinsurance indemnity

Published on: 20 June 2024

Published by a Law360 reporter

Legal News

Article summary

The Irish company sued

Convex Insurance UK Ltd, together with a number of other insurers, has declined claims brought by WWTAI AirOpCo II DAC, asserting in a High Court defence dated 6 June 2024 that nothing is payable because the aircraft are neither lost nor damaged. The lessor initiated proceedings in 2023 seeking a payout over aircraft grounded following Moscow’s invasion of Ukraine. It says the three aircraft it leased to JSC Ural Airlines at the time of Russia’s attack were later re-registered in the country, and that it has not received reimbursement from its reinsurers for the value of the stranded aircraft. The insurers, however, contend that no sums are due to the Irish business

As set out in the defence, the claimant has no valid claim under the insurance contract because:

the aircraft are not lost
they remain with the primary insured (the airline)
there has been no destruction of the aircraft
the claimant does not plead any damage to the aircraft
there has been no total loss

In essence, the defendants maintain there is no coverage available under the policy...

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