Possibly the most debatable portion of the Institute Cargo clauses- 1982! Insufficiency or unsuitability of packing, an exclusion under 4.3 of ICC-1982 was a potent weapon in the hands of claim settlers & loss assessors who knew all claimants would not seek legal recourse and went about invoking this exclusion at the slightest opportunity. Assureds […]
Every marine cargo practitioner knows that among the exclusions under the Institute cargo clauses ( A,B or C) are the nuclear group of perils.Confusion prevails in the following areas: By adding the Institute War clauses (cargo) to the policy, are the losses caused to cargo by nuclear weapons covered? What are the nuclear group of
The LONGCHAMP case (Mitsui & Co Ltd & Ors vs Beteiligungsgesellschaft LPG Tankerflotte MBH & Co KG & Anor (2017) When modern-age piracy began around 2005 off the Somalian coast, the main aim of the pirates was to seize vessels and seek ransom which ran into millions of dollars. In majority of the cases, the
Is this an exposure/exclusion we all ignore/take lightly?
An interesting case I recall from a few years back. We had issued a specific marine policy ( Trip policy) covering the import of a machine from Europe to the insured’s premises in India. Interestingly, the address of the insured’s office which was stated in the policy was on the third floor of a particular
Seller’s Interest clause in a marine cargo policy is assumed by many to be a saviour in all cases of short-payment by buyers. Under an INCOTERM where seller is not responsible for arranging insurance, buyer takes delivery, opens the container, notices some damages/ shortages and deducts an amount for these from the seller’s invoice. Seller
Why do cargo underwriters include ROD or RODC exclusion in the policies? Rust, Oxidation, Discoloration & Corrosion are perceived as gradually developing flaws which cannot be co-related to a single event during transit. Even without this specific exclusion, they would still fall under General exclusions under the ICC clauses. Some exclude RODC absolutely, which is
The Institute Replacement Clause was formalised in 1934 (modified in 2008), years before the insuring ICC came into being in 1982. Why? Marine practitioners realised that insuring a manufactured mechanical, electrical or electronic machine comprising of many identifiable parts was totally different from insuring any other commodities. In the absence of this clause, following a
The International Safety Management (ISM) code was adopted by the SOLAS convention and in 2002 , it was made applicable to all cargo ships. The aim- To ensure safety of human life at sea & to avoid environmental pollution. All ships had to be ISM Code- compliant or the owners/ charterers should hold a current
There are only 11 Incoterms as per the 2010 version but defunct Incoterms like DDU & non-existent ones like C & I continue to be used in business. From the marine insurance standpoint, what we draw majorly from Incoterms are 1) Who has the responsibility to insure 2) What is the Risk-transfer point 3) Who
