Why might an insurer refuse an abandonment claim in marine insurance?

In the context of marine insurance, an insurer may refuse an abandonment claim primarily if all conditions of the contract have not been met. Marine insurance contracts often contain specific conditions and obligations that the insured must adhere to for a claim to be valid. These could include requirements related to timely reporting of losses, salvage efforts, and compliance with policy stipulations.

When abandonment is claimed, it suggests that the insured has given up on recovering the vessel due to its perceived total loss. However, if the insured did not fulfill the stipulated conditions—such as providing timely notice of the loss, engaging in proper salvage operations, or failing to mitigate further losses—the insurer can rightfully deny the claim. This upholds the principle of ensuring that the insurer is only liable for claims where the insured has adhered to the agreed-upon terms, as these contracts are built on the premise of mutual obligations. Therefore, the refusal can be justified on the grounds of non-compliance with contractual conditions.