THE INSURED IS MANDATORY TO NOTIFY THE ACTUAL CONDITION OF THE VESSEL TO BE INSURED AND IF ANYTHING IS HIDDEN THEN THE INSURANCE AGREEMENT IS VOID BY LAW

The Supreme Court was of the opinion that the Plaintiffs had a legal obligation to disclose the true condition of the ship to be insured and were prohibited from hiding all the conditions they knew about.

In this case the insured did not tell the Defendant the truth. The plaintiff only stated that the ship was under repair, in the case that the Lucky Fortune ship was the former Bethesda 2 ship which caught fire on December 16 1990 with Total Loss or Constructive Total Loss;

That from the considerations above, the Plaintiff committed a lie, namely deliberately hiding the true situation from the Defendant when closing the insurance policy for the insured ship, so as a result of this lie the threat of the agreement being null and void. Therefore, the Plaintiffs’ lawsuit must be rejected

Supreme Court Decision No. 698 PK/Pdt/2001 dated 27 February 2003.

Source:

https://jdih.mahkamahagung.go.id/storage/uploads/produk_hukum/file/698_PK_PDT_2001.pdf

Regards,

Fredrik J Pinakunary