| About the Author |
7.6 Insuring Inherent Vice |
| Foreword to the 1st Edition |
7.7 Summary |
| Foreword to the 2nd Edition |
7.8 Delay |
| Preface to the 2nd Edition |
7.9 Pre-MIA 1906 Cases |
| Abbreviations |
7.9.1 Taylor v Dunbar (1869) |
| Case Law List |
7.9.2 Pink and Others v Fleming (1890) |
| 1. Introduction to International Trade and Cargo Insurance |
7.10 Post-1906 Cases |
| 1.1 Cargo Families |
7.10.1 Becker Gray & Co v London Assurance Corporation (the ‘Kattenturm’) (1918) |
| 1.2 Dangerous Goods |
7.10.2 Leyland Shipping Co Ltd v Norwich Union Fire Insurance Society Ltd (1918) |
| 1.3 Ships and their Classification |
7.10.3 Yorkshire Dale Steamship Co Ltd v Minister of War Transport (the ‘Coxwold’) (1942) |
| 1.4 Flag of Convenience (FOC) |
7.11 The Delay Exclusion in ICC 1982/2009 |
| 1.5 Classification |
7.12 Scenarios |
| 1.6 Chartered Ships |
7.13 FCA Test Case |
| 1.7 Protection and Indemnity Clubs |
8. Insuring Terms 3 – Named Perils |
| 1.8 The ISM Code |
8.1 Institute Cargo Clauses (B) and (C) |
| 1.9 The ISPS Code |
8.2 (B) and (C) Causation Rules |
| 1.10 Ship Selection |
8.3 (B) and (C) Perils: Subject to Reasonably Attributable to |
| 1.11 The Container Revolution |
8.3.1 Fire or Explosion |
| 1.12 Mechanism of Containerisation |
8.3.2 Stranded, Grounded, Sunk or Capsized |
| 1.13 Verified Gross Mass (VGM) |
8.3.3 Overturning and Derailment of Land Conveyance |
| 1.14 Impact on Marine Insurance |
8.3.4 Collision or Contact |
| 1.15 Financing of International Trade |
8.3.5 Discharge of Cargo at a Port of Distress |
| 1.16 Cargo Insurance and International Trade |
8.3.6 Earthquake, Volcanic Eruption or Lightning |
| 1.17 Responsibility to Arrange Cargo Insurance |
8.4 (B) and (C) Perils: Subject to Caused by |
| 1.18 Insurance |
8.4.1 General Average Sacrifice |
| 1.19 Impediments to Trade |
8.4.2 Jettison or Washing Overboard |
| 1.20 What is Marine Cargo Insurance? |
8.4.3 Entry of Water |
| 1.21 Marine Cargo Insurance Contract |
8.4.4 Total Loss of Package |
| 1.22 The Marine Cargo Policy |
8.5 General Average |
| 1.23 Principles Governing Marine Cargo Insurance |
8.6 Exclusions |
| 1.24 Utmost Good Faith |
8.7 Institute Theft, Pilferage and/or Non-Delivery CL.272, 01.12.82 |
| 1.25 Duty of Disclosure, S.18 |
8.8 Theft, Pilferage and/or Non-delivery (TPND) and Piracy |
| 1.26 Voidable Nature of Contract, S.18(1) |
9. Insuring Terms 4 – Trade Clauses |
| 1.27 Pre-Contractual Duty, S.18(1) |
9.1 Institute Clauses for Bulk Oils – Part 1 |
| 1.28 Continuing Duty (Post Contractual) |
9.2 Perils |
| 1.29 Materiality and Inducement, S.18(2) |
9.3 Leakage from Connecting Pipelines |
| 1.30 Exceptions to the Duty of Disclosure, S.18(3) |
9.4 Underground Pipelines |
| 1.31 Disclosure by Agent Effecting Insurance, S.19 |
9.5 Negligence during Pumping |
| 1.32 Representations Pending Negotiation of Contract |
9.6 Contamination from Stress of Weather |
| 1.33 Criticisms of the Law of Good Faith |
9.7 Exclusions |
| 1.34 The Insurance Act 2015 |
9.8 Duration |
| 1.35 Duty of Fair Representation |
9.9 Movements by Craft and Barge Tankers |
| 1.36 Impact of the Insurance Act 2015 |
9.10 Delivery of Whole Consignment or Each Portion Thereof? |
| 1.37 Proportional Remedies |
9.11 Adjustment Clause |
| 1.38 Preparation Needed Under the IA 2015 Regime |
9.11.1 Explanation |
| 1.39 Fraud and the Duty of Good Faith |
9.12 Readjustment of Claim |
| 1.40 Indemnity |
9.13 Contamination Claims – Need for All Risks Cover |
| 1.41 Agreed Value – A Detailed Discussion |
9.14 Institute Clauses for Bulk Oils – Part 2 |
| 1.42 Insurable Interest |
9.15 Institute Clauses for Bulk Oils – Part 3 |
| 1.43 Subrogation |
9.16 Exclusions |
| 1.44 Contribution |
9.17 JCC Storage Extension Clauses for Bulk Oils |
| 1.45 Common Liability Method |
9.18 Institute Coal Clauses: Clause No 393, 01.05.16 |
| 1.46 Independent Liability Method |
9.19 Heating and Spontaneous Combustion |
| 1.47 Maximum Liability Method |
9.20 Duration |
| 1.48 Warranties |
9.21 Craft Risks |
| 1.49 Types of Warranties |
9.22 Barging Risks |
| 1.50 Examples of Express Warranties in Cargo Insurance |
9.23 Institute Timber Trade Clause No 405, 01.05.16 |
| 1.51 The Literal Performance/Strict Compliance Rule under the MIA 1906 |
9.24 Piracy |
| 1.52 The Position under the Insurance Act 2015 |
9.25 Exclusions |
| 1.53 Burden of Proof |
9.26 Duration |
| 1.54 Contracting Out |
10. Insuring Terms 5 – Cargoes Requiring a Controlled Environment |
| 2. Insurable Interest 1 |
10.1 Types of Controlled Environment |
| 2.1 Introduction |
10.2 Underwriting Considerations |
| 2.2 Insurable Interest Defined |
10.3 Slow Steaming |
| 2.3 Legal or Equitable Relationship |
10.4 Temperature Recording Devices |
| 2.4 Prejudiced by Loss … Benefit by Safety |
10.4.1 Ryan Recorder (Analogue Temperature Recorder) |
| 2.5 Supreme Court of Canada’s View on Macaura |
10.4.2 Data Loggers |
| 2.6 Supreme Court of Canada’s View on Broadgrain Commodities |
10.4.3 TempTale® (and Other Digital Temperature Recorders) |
| 2.7 Insurable Interests in Cargo |
10.4.4 Sensors/Probes |
| 2.8 International Trade under Contracts of Sale |
10.4.5 Remote Sensing Systems |
| 2.9 Risk v Title Dichotomy |
10.5 Institute/JCC Clauses for Frozen/Chilled Foods and Meat |
| 2.10 Timing of Insurable Interest |
10.6 Changes in 2017 Edition |
| 2.11 Lost or Not Lost |
10.7 Institute Clauses for Frozen Foods |
| 2.12 Assignment of Policy and Interest |
10.8 Peril Clauses |
| 2.13 Interplay of Various Sections of the MIA 1906 |
10.8.1 Institute Frozen/Chilled Food Clauses (C), Clause No 431 |
| 2.14 Insurable Interest of a Buyer |
10.8.2 Institute Frozen/Chilled Food Clauses (A), 24 Hours Breakdown, Clause No 423 |
| 2.15 Insurable Interest of the CIF Seller |
10.8.3 Institute Frozen/Chilled Food Clauses (A), Clause No 430 |
| 2.16 Concluding Remarks |
10.9 Exclusions |
| 3. Insurable Interest 2 – Contingency Covers |
10.9.1 Inherent Vice |
| 3.1 Seller’s Interest |
10.9.2 Loss of Market |
| 3.2 Reasons for Rejection of Documents/Goods |
10.9.3 Refrigerated, Insulated and Cooled |
| 3.3 Key Features of Seller’s Interest Cover |
10.9.4 Embargo, Rejection, etc |
| 3.4 Additional Clauses in Seller’s Interest |
10.10 Duration Clause |
| 3.5 Contingency Cover for CIF/CIP Seller |
10.11 Frozen Food Extension Clause, No 422 |
| 3.6 Buyer’s Interest |
10.12 Frozen/Chilled Meat Extension Clauses, No 429 |
| 3.6.1 Stage of Transit |
10.13 War and Strikes – Institute Strikes Clauses (Frozen/Chilled Food), No 424 |
| 3.6.2 CIF Purchases |
10.14 Frozen/Chilled Meat |
| 3.6.3 Tail-end Risks |
10.15 Perils |
| 3.6.4 Difference in Conditions (DIC)/Difference in Limits (DIL) Extensions |
10.16 Exclusions |
| 3.7 Achieving Seamless Covers Irrespective of Terms of Sale |
10.17 Duration |
| 3.8 Guarantee of Collectability |
10.18 The Adjustment Clause |
| 4. Marine Open Cover |
10.19 War and Strikes – Institute Strikes Clauses (Frozen/Chilled Meat), No 428 |
| 4.1 What is an Open Cover? |
11. Insuring Terms 6 – Non-Institute Clauses |
| 4.2 Advantages |
11.1 Introduction |
| 4.3 Assured |
11.2 Accumulation |
| 4.4 Period |
11.3 Airfreight Replacement (Expediting Expenses) |
| 4.5 Cancellation Clause |
11.4 Apportionment of Recoveries |
| 4.6 Interest Insured |
11.5 Arrest |
| 4.7 Treatment of Packing Materials |
11.6 Art and Antiques (Depreciation) |
| 4.8 Conveyances |
11.7 Assured |
| 4.9 Use of Own Vehicles |
11.8 Bagged Cargo Clause |
| 4.10 Voyage/Geographical Limits |
11.9 Brand, Label and Trademark Protection |
| 4.11 Basis of Valuation |
11.9.1 Labels Clause |
| 4.12 Limits of Liability |
11.9.2 Brands and Trademark Clause |
| 4.13 Per Bottom Limit |
11.10 Control of Damaged Goods |
| 4.14 Location Limit |
11.11 Claused Bill of Lading |
| 4.15 Meaning of Location |
11.12 Commingling |
| 4.16 Accumulation at Ports of Loading and Discharge |
11.13 Concealed Damage (Delayed Discovery of Loss) |
| 4.17 Location Limit and Overseas Buyers |
11.14 Containers |
| 4.18 Limits and Co-Assureds |
11.14.1 Container Fitness |
| 4.19 Limits of Liability and Condition of Average |
11.14.2 Container Demurrage |
| 4.20 Limit Per Location and Freight Forwarders |
11.14.3 Container Handover |
| 4.21 Accumulation Clause |
11.14.4 Container Seals |
| 4.22 Terms of Cover |
11.15 Contingency |
| 4.23 Declaration (Bordereau) |
11.15.1 Incoterms® Rules Override Clause |
| 4.24 Late Declaration or Omission to Declare |
11.15.2 Cover for Fob (or Similar Purchases) |
| 4.25 Certificate of Insurance |
11.15.3 Seller’s Interest Cover |
| 4.26 Hold Harmless Clause |
11.15.4 Buyer’s Interest Cover |
| 4.27 Web-based Certificate Generation (E-Marine) |
11.16 Continuation Clause |
| 4.28 Certificate Versus Open Cover Terms |
11.17 Country Damage |
| 4.29 Nature of Open Cover Contract ‘for’ or Contract ‘of ’ Insurance |
11.18 Cutting Clause |
| 4.30 Certificate Issued for Individual Export Voyage |
11.19 Debris Removal |
| 4.31 Words of Incorporation in the Certificate |
11.20 Deck Cargo |
| 4.32 Certificate Mentioning the Open Cover Number |
11.21 Deductible Clause |
| 4.33 Certificate Mentioning ‘All Other Terms as Per Open Cover’ |
11.22 Duty/Customs Duty and Taxes |
| 4.34 Certificate Mentioning Entities ‘for Whom the Assured has Instruction to Insure’ |
11.23 Exchange Rate (Currency Conversion) |
| 4.35 Rights of an Unpaid Seller |
11.24 Export Subsidies and Similar |
| 4.36 Conclusion |
11.25 Fraudulent Bill of Lading |
| 4.37 Annual Sales Turnover Policies |
11.26 Full General Average |
| 4.38 Annual Sales Turnover Policies – A Critique |
11.27 Fumigation |
| 4.39 Cargo (Stock) Throughput Policies |
11.28 Governmental Damage |
| 4.40 Advantages of Stock Throughput Policies |
11.28.1 Customs Clause |
| 4.41 Illustrations of a Stock Throughput Policy |
11.28.2 Deliberate Damage – Pollution Hazard |
| 4.42 Challenges in Administering Stock Throughput Covers |
11.29 Jurisdiction |
| 4.43 Process Clause in Stock Throughput Covers |
11.30 Letter of Credit |
| 4.44 Standard Exclusions in a Stock Throughput Policy |
11.31 Loading and Unloading |
| 5. Insuring Terms 1 – Institute Classification Clause |
11.32 Location |
| 5.1 Main Provisions |
11.33 Mechanical and Electrical Derangement (MEED) |
| 5.2 Age Limitation |
11.33.1 Usage |
| 5.3 Non-qualifying Vessels |
11.33.2 Meaning |
| 5.4 Summary |
11.33.3 Damage Detection Devices – Shock and Tilt Monitors |
| 5.5 Transhipping Vessels |
11.34 Packing |
| 5.6 Craft |
11.35 Pair and Set |
| 5.7 Classification Clause |
11.36 Pipeline Clause |
| 5.8 SOLAS 1974 |
11.37 Peak Value/Automatic Increased Value |
| 5.9 The International Safety Management (ISM) Code |
11.38 Process |
| 5.9.1 ISM Code and Marine Insurance |
11.39 Reissue |
| 5.10 ISM Forwarding Charges |
11.40 Returned Goods |
| 5.10.1 Compliance with the ISM Code |
11.41 Salvage Loss |
| 5.11 Summary and Concluding Remarks |
11.42 Shut-out Shipment |
| 5.12 ISM and Classification |
11.43 Sight Draft Extension |
| 5.13 The International Ship and Port Facility Security (ISPS) Code |
11.44 Sorting/Segregation |
| 5.13.1 ISPS Endorsements |
11.45 Trade Loss |
| 5.13.2 ISPS – Implications for Cargo Assureds |
11.46 Travel and Accommodation |
| 6. Insuring Terms 2 – Institute Cargo Clauses (A), CL.382, 01.01.09 |
11.47 Waiver of Subrogation |
| 6.1 Background to Changes |
12. Insuring Terms 7 – War and Related Perils |
| 6.2 General Changes |
12.1 Institute War Clauses (Cargo) CL.385, 01.01.09 |
| 6.3 Major Changes |
12.2 Perils |
| 6.4 Perils Clause |
12.2.1 War |
| 6.4.1 All Risks |
12.2.2 Civil War |
| 6.4.2 General Average |
12.2.3 Revolution, Rebellion and Insurrection |
| 6.4.3 Both to Blame Collision Claus |
12.2.4 Civil Strife |
| 6.5 Exclusions |
12.2.5 Hostile Act by or against a Belligerent Power |
| 6.5.1 Wilful Misconduct |
12.2.6 Capture |
| 6.5.2 Ordinary Losses |
12.2.7 Seizure |
| 6.5.3 Poor Packaging |
12.2.8 Arrest |
| 6.5.4 Inherent Vice |
12.2.9 Restraint |
| 6.5.5 Delay |
12.2.10 Detainment |
| 6.5.6 Insolvency |
12.2.11 “… and the consequences thereof or any attempt thereat” |
| 6.5.7 Nuclear or Radioactive Devices |
12.2.12 Derelict Mines etc |
| 6.5.8 Unseaworthiness |
12.3 Exclusions |
| 6.5.9 Hostile Acts |
12.3.1 The Frustration Clause |
| 6.5.10 Strikes |
12.3.2 Hostile Use of Weapons or Devices |
| 6.6 Duration of Cover – 1 |
12.4 Waterborne Agreement |
| 6.6.1 Background to Duration Clause, 2009 Edition |
12.4.1 Duration |
| 6.7 The Duration Clause in ICC 2009 |
12.4.2 Reattachment Provision (‘Held Covered’) |
| 6.7.1 Attachment |
12.4.3 Craft |
| 6.7.2 Ordinary Course of Transit |
12.5 Institute Strike, Riot, Civil Commotion (SRCC) CL 386, 01.01.09 |
| 6.7.3 Termination |
12.5.1 Strike |
| 6.8 Duration Clause Scenarios |
12.5.2 Locked-out Workmen |
| 6.8.1 Attachment of Cover Scenarios |
12.5.3 Labour Disturbances |
| 6.8.2 Continuation Scenario |
12.5.4 Riot |
| 6.8.3 Termination Scenarios |
12.5.5 Civil Commotion |
| 6.9 Other Markets |
12.6 Terrorism |
| 6.10 Duration of Cover – 2 |
12.7 General Average (GA) |
| 6.10.1 Additional Premium under Clause 9 |
12.8 Exclusions |
| 6.10.2 Can the Insurer Deny Extension of Cover Upon Receiving Notice under Clause 9? |
12.8.1 Exclusion 3.7 |
| 6.11 Change of Voyage |
12.8.2 Exclusion 3.8 |
| 6.11.1 Clause 10.2 – the Phantom Ship |
12.8.3 Exclusion 3.10 |
| 6.12 Claims |
12.9 Cancellation Clause in Open Covers |
| 6.13 Forwarding Charges |
12.10 Institute Malicious Damage Clause, CL.266, 01.08.82 |
| 6.13.1 Clause 12 – a ‘Supplementary Contract’? |
12.11 Institute Radioactive Contamination (RACE) Clause |
| 6.14 Constructive Total Loss |
12.11.1 Extended Race Clause, No 356A/01.11.02 |
| 6.15 Increased Value |
12.11.2 Dirty Bombs |
| 6.16 Benefit of Insurance |
12.11.3 Further Amendment Clause, No 370/10.11.03 |
| 6.17 Minimising Losses |
12.11.4 Termination of Transit Clause (Terrorism) 2009, JC2009/056, 01.01.09 |
| 6.18 Waiver |
12.12 Cyber Attack |
| 6.19 Avoidance of Delay |
13. Rejection Risks |
| 6.20 Law and Practice |
13.1 Origin of Rejection Risks Covers |
| 6.21 Note |
13.2 Concurrent Causation – Applicability to Exclusion 6.2/6.4 |
| 6.22 Premium to be Arranged – is there an Upper Limit? |
13.3 Need for Rejection Risks |
| 7. Inherent Vice and Delay Exclusions |
13.4 Rejection Risks Insurance |
| 7.1 Inherent Vice |
13.5 Analysis of London May 1975 Rejection Clause |
| 7.2 Meaning of Inherent Vice |
13.6 Duration |
| 7.3 Examples of Inherent Vice |
13.6.1 Attachment |
| 7.4 Mechanism of Condensation |
13.6.2 Termination |
| 7.5 Leading Case Law on Inherent Vice |
13.7 Rejection Covers in other Major Markets |
| 7.5.1 E D Sassoon & Co Ltd v Yorkshire Insurance Co (1923) |
13.8 Underwriting Factors |
| 7.5.2 C T Bowring & Co Ltd v Amsterdam London Insurance Co Ltd (1930) |
13.9 Warranties |
| 7.5.3 Soya GmbH Mainz Kommanditgesellschaft v White (1983) |
14. Contract Certainty in Policies |
| 7.5.4 Noten BV v Harding (1990) |
14.1 Introduction |
| 7.5.5 Mayban General Insurance BHD v Alstom Power Plants Ltd (2004) |
14.2 Ambiguities |
| 7.5.6 Nelson Marketing International Inc v Royal and Sun Alliance Insurance Co of |
14.3 Contra Proferentem Rule |
| Canada (2005) |
14.4 Ambiguities and Gaps in Coverage – Why they Arise |
| 7.5.7 Feuiltault Solution Systems Inc v Zurich Canada (2021) |
14.4.1 The Mining Industry |
| 7.5.8 Global PROCESS Systems Inc and Another v Syarikat Takaful Malaysia Berhad |
14.4.2 The Pharmaceutical Industry |
| (the ‘Cendor MOPU’) (2011) |
14.5 Limitation to Contra Rule |
| 7.5.9 ACE European Group Ltd and Others v Chartis Insurance UK Ltd (2012) |
14.6 Interpreting Policy Terms – The Rise of Factual Matrix/Commercial Common Sense |
