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SME Chatroom: 'Defective packaging can imperil marine insurance claims'

Clause 4.3 of Institute Cargo Clauses (C) says that in no case will insurance cover loss, damage or expense caused by insufficiency or unsuitability of packing or preparation of subject matter insured

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Photo: Bloomberg

TNC Rajagopalan New Delhi
We imported certain goods on a CIF basis. The goods (machinery) were stuffed in a container at the shipper-exporter’s factory and sealed. The container arrived at our factory with the seals intact. But when we opened the container, we found the goods damaged. The survey report said that the damage is due to “jerks and jolts”. We have lodged a claim with the insurance company. As the container was stuffed by the shipper, will it have any bearing on our insurance claim?

The duty of the shipper is to ensure seaworthy packing that will withstand the rocking and swaying that