UK court rules insurer cannot reject claim due to sanctions clause

10/23/2018 5:47:00 AM

Source: Business Insurance

The U.K.’s High Court ruled that an insurer cannot rely on a sanctions-related exclusion clause to avoid settling a marine insurance policy claim following impending reinstatement of U.S. secondary sanctions against Iran, reported. Under the policy, U.K.-based Mamancochet Mining Ltd. will receive compensation for theft of two cargo loads of steel billets transported from Russia to Iran in August 2012. The goods worth nearly $4 billion were stolen from a storage facility in Iran and the claim was submitted in March 2013. The court said that the claim’s payment before Nov. 4 will not expose the insurers to a sanction.