Inherent vice
Goods failing because of what they are, not because of anything that happened.
Definition
Excluded at every clause level. Inherent vice is loss or damage proceeding from the nature of the subject-matter itself — produce ripening, oils separating, timber staining, metals oxidising, a chemical reacting in ordinary conditions. The dividing line is whether an external fortuity intervened: refrigerated cargo that spoils because the unit failed is a machinery failure, while cargo that spoils because the transit was always longer than its shelf life is inherent vice.
Why it decides money
The most argued exclusion after packing. Surveyors are instructed on this question specifically, and the answer usually turns on records — loading temperature, transit time, condition on stuffing.
Related terms
- Insufficient packing
- Excluded where the packing was not fit for the transit that was booked.
- All risks
- Cover written so that everything is insured unless an exclusion applies.
- Delay exclusion
- Loss caused by delay is excluded, even where an insured peril caused the delay.
More in what is covered
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