The recent Singapore Court of Appeal decision in Argoglobal Underwriting Asia Pacific Pte Ltd v Oversea-Chinese Banking Corp Ltd [2026] SGCA 14 provides a useful point of reflection for those involved in the handling of complex marine and offshore losses.
The case arose from the capsize of the TERAS LYZA, a newly built jack-up rig, during its maiden wet tow from Vung Tau , Vietnam to Taichung , Taiwan in June 2018. While the rig ultimately remained afloat in an inverted condition for an extended period, the evidential record available to the Court was limited in terms of establishing how the casualty developed, particularly in relation to the mechanism of seawater ingress and the sequence of flooding.
From an adjuster’s perspective, the decision is less about legal principle—most of which is well established—and more about the practical consequences of how evidence is (or is not) developed following a major casualty.
A central issue in the case was the inability to establish a clear causal pathway. While it was accepted that seawater ingress led to the loss of stability, no definitive ingress point or failure mechanism was identified. In the absence of contemporaneous technical evidence, the case ultimately relied on competing theoretical scenarios, none of which could be substantiated to the required standard.
This highlights a recurring challenge in large marine losses: where early technical evidence is not secured, the claim can become heavily dependent on reconstruction rather than observation. For adjusters, this can significantly narrow the ability to form a clear and defensible view on causation. In practice, early engagement of an experienced marine surveyor can be a key differentiator, helping to secure perishable evidence and shape a clearer, more reliable technical narrative from the outset.
The judgment also touches on the difficulties that arise in the context of constructive total loss (CTL) assessments when the underlying technical foundation is incomplete. Without a reliable understanding of the damage condition, repair scope, and recovery feasibility, cost-based evaluations inevitably become less robust. This, in turn, can complicate both adjustment and any subsequent dispute resolution.
Importantly, the case does not introduce new obligations for parties, but it does reinforce an operational reality: the quality of the eventual claim outcome is closely linked to the quality of the evidence gathered in the early stages of the incident.
In practical terms, early involvement of experienced surveyors and technical specialists can play a significant role in shaping that evidential foundation. Timely site attendance, documentation of the vessel’s condition, and structured investigation of potential failure pathways all contribute to reducing uncertainty later in the process. Where such steps are delayed or limited, the ability to establish causation with confidence may be materially affected.
The Role of Early Technical Engagement• Timely site investigation supports clearer understanding of causation
• Physical evidence is more persuasive than retrospective reconstruction
• Structured technical input strengthens both coverage and quantum analysis
• Early documentation reduces reliance on assumption and dispute
• A well-developed evidential record benefits all parties to the claim
There is also a broader coordination point for the market. While the burden of proof remains with the insured, the case illustrates that all stakeholders—owners, insurers, brokers, and their respective experts—benefit from a clear and well-documented technical record. From an adjustment standpoint, this supports more transparent discussions, more grounded reserve setting, and ultimately more efficient claim resolution.
The TERAS LYZA decision therefore serves as a useful reminder of the importance of early, practical claims management in major marine casualties. It underscores that while legal principles determine the framework of recovery, it is the contemporaneous technical evidence that often determines how effectively that framework can be applied. Looking ahead, the case also points to a continued industry focus on earlier and more coordinated technical engagement, where timely surveyor involvement can play a meaningful role in supporting clearer, more efficient claim outcomes.
