Concealed Damage clause

 Concealed damage or Deferred unpacking clause is often sought by clients and brokers and given by insurers, the only debate being how many days can be given for the discovery of the concealed damage- 30,60,90 or 120 days. Given the manner transits happen nowadays, this clause can be stated to be necessary.

In simple terms, this clause states that if clean delivery is taken, of a package/ container in externally sound condition and subsequently on opening at the final destination ( within the agreed number of days) damages are noticed, the damages will be treated as having occurred during transit. Is this an open licence to kill? Can storage losses occurring at the final destination be passed off as concealed damage? The answer is No.

All that the clause does is to shift the onus of proving that the loss did not happen during transit on to the insurer. So, if an insurer is able to establish that the damages do not pertain to the insured transit, notwithstanding the inclusion of this clause, the claim can be declined. This aspect has to be brought to the knowledge of the clients by brokers.