Is Island Trapper's insurance company liable for loss and damage caused by the vessel's scupper plugs?

It is common ground that the vessel was heavily laden, that its scuppers were below the then-existing sea-level, and that the scupper plugs had been inserted in order to prevent sea water from entering the vessel through the scuppers. The defendant says that the scuppers should have been kept open in order to permit water from the deck and the pens to exit. Compare that position with the attitude of the insurer in the decision of Mr. Justice Collier in Hatfield v. The Queen in right of Canada, [1984] I.L.R. ¶1-1781, where the insurer denied liability for loss and damage with respect to a 42′ Cape Island motor vessel which had swamped and foundered. The insured's claim was rejected by the regional manager of the government fishing plan in a letter reproduced on p. 6859 of the decision: When carrying a load of wet traps in a boat such as yours, the normal practice is to put in the scupper plugs and open the deck hatch or hatches so that any water getting into the boat will find its way to the bilge and be pumped out. There is no evidence to show that you took these necessary precautions on the day in question and since this constitutes lack of diligence on your part as owner and master of "Island Trapper", I have no option but to deny your claim.