Safety Violations Led Insurers To Reject Marsa Scrapyard’s €600k Claim
Argus Insurance had previously refused to pay out a €600,000 claim for a 2021 blaze at the same Marsa scrapyard that went up in flames again on Friday, with court documents pointing to a series of unsafe practices at the site.
Last week’s fire at the JAC Steel scrapyard in Triq Giuseppe Garibaldi caused chaos across the area. PN MPs Rebekah Borg and Adrian Delia have since called for a full investigation, branding it an “environmental disaster”.
But this isn’t the scrapyard’s first run-in with fire or controversy.
Following the 2021 blaze, a three-year court battle unfolded after insurers Argus refused the €600,000 payout. In filings, Argus claimed the scrapyard had failed to follow basic safety rules, pointing to evidence of “disregard for good working practices”, issues so serious that the environment regulator ERA issued a stop and compliance order.
Among the breaches flagged: storing more hazardous waste than allowed, operating a shredding machine without a permit, and failing to clean up hazardous liquid spillages. Argus argued these were clear violations of the scrapyard’s insurance obligations and increased the risk of the fire breaking out and spreading.
The insurer later claimed the entire policy was void from the start because JAC Steel hadn’t disclosed the ERA stop order when renewing its policy, but the court wasn’t convinced.
On 30th September 2025, Judge Henri Mizzi ruled that by first rejecting the claim due to policy breaches, Argus had implicitly confirmed the policy was valid, meaning it could not later argue it was void from the outset. Argus was ordered to pay the claim in full.
The insurer has since filed an appeal.
Photos: CPD