Question #1 Should pioneer be held liable for the loss of the cargo? (Answer with explanation)

Case: On February 19, 1972, the Manila Bay Lighterage Corporation (Manila Bay) a common carrier, entered into a contract with Ms. Isabela Roque whereby the former would load and carry on board its barge, "Mable 10," about 422.18 cubic meters of logs from Malampaya Sound, Palawan to North Harbor, Manila. Ms. Roque insured the logs against loss for P100,000 with Pioneer Insurance and Surety Corporation (Pioneer). On February 29, 1972, the Ms. Roque loaded on the barge, 811 pieces of logs at Malampaya Sound, Palawan for carriage and delivery to North Harbor, Manila, but the shipment never reached its destination because "Mable 10" sank with the 811 pieces of logs somewhere in Cabuli Point in Palawan on its way to Manila. The barge (Mable 10) where the logs were loaded was not seaworthy such that it developed a leak. It was found that one of the hatches was left open causing water to enter the barge and because the barge was not provided with the necessary cover or tarpaulin, the ordinary splash of sea waves brought more water inside the barge. On March 8, 1972, Ms. Roque wrote a letter to Manila Bay demanding payment of P 150,000 for the loss of the shipment plus P 100,000 as unrealized profits but the latter ignored the demand. Another letter was sent to Pioneer claiming the full amount of P100,000 under the insurance policy but Pioneer refused to pay on the ground that its liability should not extend to perils of the ship. Should Pioneer be held liable for the loss of the cargo