G P de Silva & Sons International (Pvt) Limited vs Union Assurance Limited – SC CHC APPEAL NO.28/2009-2014

In the case between G P de Silva & Sons International (Pvt) Limited (plaintiff-appellant) and Union Assurance Limited (defendant-respondent), the court addressed the issue of whether an insurable interest in a consignment of cinnamon remained with the seller after the buyer collected the goods and received the original bill of lading. It was held that the seller did not retain an insurable interest following the transfer of the bill of lading to the buyer, consistent with principles governing when title and risk pass in CIF contracts. The decision referred to marine insurance policy terms and legal literature around passing of title and risk, underscoring that insurable interest must exist at the time of loss. As the goods and documents had been collected by the buyer, title—and therefore