Unseaworthiness and unfitness
Excluded only where the insured knew about it when the goods were loaded.
Definition
Clause 5 of the Institute Cargo Clauses. The insurer is not liable for loss arising from unseaworthiness of the vessel or unfitness of the vessel, container or conveyance to carry the goods safely — but, in the 2009 editions, only where the insured or their employees are privy to that unseaworthiness or unfitness at the time of loading. The clause also records that the insurers waive any breach of the implied warranties of seaworthiness and fitness where the insured is not privy.
Why it decides money
An ordinary cargo owner has no way to inspect a ship, and the clause reflects that. Where the insured stuffed the container themselves, unfitness of that container is a different matter.
Related terms
- Insufficient packing
- Excluded where the packing was not fit for the transit that was booked.
More in what is covered
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