Physical loss and damage. The exclusions.
Loss and damage
The terms available in the UK market are based upon the assumption that all risks of physical loss or damage to goods is covered subject to named exclusions.
Once the client has demonstrated that a loss has been suffered during the currency of the policy the onus of proof passes to insurers to demonstrate that it is excluded.
The exclusions are as follows:
- Wilful misconduct of the insured
- Natural loss in weight or volume and wear and tear and ordinary leakage
- Insufficient packing or stowage where the assured stow the goods (modified by our wording)
- Inherent vice (a hidden defect which causes or contributes to its own deterioration)
- Delay – insurers will not pay for loss, damage or expense caused by delay; nor will they pay for any other consequences of the goods being delayed in transit
- Insolvency of owners or operators of the vessel (modified by our wording)
- Atomic or nuclear weapons
- Unseaworthiness or unfitness of the container or carrying conveyance where the insured are aware of this. (modified by our policy)
the duration clause
The Duration Clause covers the goods from the time that they are first moved in the warehouse or place of storage for the purpose of immediate loading onto the carrying vehicle and continues during the ordinary course of transit.
Cover ceases on completion of unloading at the specified warehouse or other nominated destination or on the expiry of 60 days after discharge from the ocean vessel (30 days from an aircraft) whichever shall first occur.
war and strikes clauses
Another important distinction is between the Institute Cargo Clauses and the War and Strikes Clauses. The clauses do not cover war and damage caused by strikers, terrorists and in riots.
Whilst the clauses are restricted to physical loss or damage to the goods they are extended to include General Average and Salvage Charges.