Furness Withy & Co Ltd v Duder     Insurance – Marine – Collision clause – Liability of insurer – Collision with Admiralty tug –
Liability of insured under contract.
By a policy of marine insurance it was provided inter alia that “if the ship hereby insured
shall come into collision with any other ship or vessel and the assured … shall in
consequence thereof become liable to pay and shall pay by way of damages” any sum, the
underwriter would indemnify the assured. The assured engaged an Admiralty tug to tow the
insured ship, agreeing to make good to the Admiralty all damage suffered through injury to
Admiralty property arising out of the service of the tug. The insured ship collided with the
tug owing to the negligent navigation of the tug and the assured duly paid the amount of the
damage to the Admiralty. The assured then claimed repayment from an underwriter:—