Jurisdiction in Maritime Insurance Claims: A Review of Liverpool and London Steamship Protection and Indemnity Association Limited V M/T Tuma

Description

ABSTRACT

Jurisdiction in Maritime Insurance Claims: A Review of Liverpool and London Steamship Protection and Indemnity Association Limited V M/T Tuma

Chimezie Onuzulike*

The Admiralty Jurisdiction Act, 1991 creates a category of insurance claim known as ‘Maritime Insurance Claim’. This is essentially a claim for an insurance premium concerning a ship, or goods or cargo carried by the ship. This claim falls under general maritime claim in respect of which jurisdiction is conferred on the Federal High Court. This category of insurance claim is considered distinct from a simple contract of insurance in respect of which the State High Court may exercise jurisdiction. Recently, the Supreme Court of Nigeria in Liverpool and London Steamship Protection and Indemnity Association Limited v M/T Tuma & Ors made a distinction between maritime insurance claims under the Admiralty Jurisdiction Act, 1991 and simple insurance claims and held that claims for insurance premiums arising out of insurance covers made in respect of a ship fall within the exclusive admiralty jurisdiction of the Federal High Court. This paper reviews the decision of the Supreme Court in Liverpool and London Steamship Protection and Indemnity Association Limited v M/T Tuma & Ors and argues that the distinction made by the Supreme Court between simple insurance claims and maritime insurance claims is misleading. The paper argues that insurance contracts, whether involving a ship or cargo carried by ship, are simple insurance contracts and not necessarily maritime claims which fall under the admiralty jurisdiction of the Federal High Court.

Keywords: Admiralty Jurisdiction, Federal High Court, Maritime Claim, Simple Contract, State High Court.

INTRODUCTION
The admiralty jurisdiction of the Federal High Court (the “FHC’) is derived from the Constitution of the Federal Republic of Nigeria, 1999 (as amended) (the “1999 Constitution”). Section 251 (1) (g) of the 1999 Constitution provides that

“Notwithstanding anything to the contrary contained in this Constitution and in addition to such other jurisdiction as may be conferred upon it by an Act of the National Assembly, the Federal High Court shall have and exercise jurisdiction to the exclusion of any other court in civil causes and matters [relating to]- any admiralty jurisdiction, including shipping and navigation on the River Niger or River Benue and their affluents and on such other inland waterway as may be designated by any enactment to be an international waterway, all Federal ports, (including the constitution and powers of the ports authorities for Federal ports) and carriage by sea”.

* LLB, BL. Senior Associate at G.Elias, Lagos Nigeria.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.13 No.3