P.T. Buana Samudra Pratama v Marine Mutual Insurance Association (NZ) Ltd [2011] EWHC 2413 (Comm), [2011] All ER (D) 146 (Sep)
The “follow” clause in a contract of marine insurance had to be given that meaning which it would be reasonably understood to have. In deciding what that meaning was, it was necessary to bear in mind the commercial purpose of “follow” clauses in marine insurance policies. That was part of the background of which the assured and underwriters would be aware.
The real question in the instant case was whether or not the words used in the policy indicated an intention by the parties to restrict the ambit of the follow clause in the manner suggested by the defendant, namely, to limit its ambit to an obligation to follow as to the quantum of claims within the terms of the policy, but not as to whether or not the claim in question was within the terms of the policy.
