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  • Claiming Damage to Cargo - Main points and insights

  • Insurance Coverage and Liability

  • Damage caused by perils of the sea, such as seawater contamination leading to rust and chloride/sulphate damage, is generally covered under marine cargo insurance policies. However, coverage may exclude damages caused prior to transit or due to specific exclusions like rainwater damage before insurance inception ["

    SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

    "], ["

    SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

    "], ["2024 0 Supreme(Mad) 2155"].
  • In some cases, insurers may deny claims if the damage is not linked directly to covered perils or if caused by excluded events, such as water damage before transit or damage due to improper handling ["

    CAPPER & SONS v. THE CARGO BOAT DESPATCH CO.

    "], ["

    Thakkar Exim VS Tata AIG Gen. Insurance Company Limited - Consumer

    "].
  • Liability of Parties

  • The shipowner or carrier may be liable for cargo damage unless proven that damage resulted from unseaworthiness, negligence, or unpermitted acts. Conversely, courts may find that certain damages, such as those caused by natural perils or seawater contact, fall within the scope of insurance coverage ["

    SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

    "], ["

    YEO HIAP SENG (MALAYSIA) SDN BHD vs MSIG INSURANCE (MALAYSIA) BHD & ANOR - High Court Malaya Kuala Lumpur

    "], ["

    CAPPER & SONS v. THE CARGO BOAT DESPATCH CO.

    "].
  • Claim Process and Evidence

  • Claimants should document damages through inspection reports, lab analyses, and photographs. It is crucial to establish the cause of damage and link it to covered perils. Insurance claims require timely submission and often involve communication with insurers regarding cause and coverage ["

    BUDGET MARINE LIMITED & ORS vs ASTIMEWA SDN BHD - Court of Appeal Putrajaya

    "], ["

    Thakkar Exim VS Tata AIG Gen. Insurance Company Limited - Consumer

    "].
  • Exclusions and Limitations

  • Damage due to pre-existing conditions, rain, or improper packing may not be covered. Insurance policies often specify exclusions like damage incurred before the voyage or damage caused by unmanifested dangerous goods ["

    CAPPER & SONS v. THE CARGO BOAT DESPATCH CO.

    "], ["

    Thakkar Exim VS Tata AIG Gen. Insurance Company Limited - Consumer

    "].
  • Court and Legal Considerations

  • Courts assess whether damage resulted from covered perils or negligence and whether the insurer’s repudiation was justified. Claims for indemnity or contribution depend on establishing liability and causation ["

    SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

    "], ["

    SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

    "].
  • Analysis and Conclusion

  • To claim damages for cargo loss or damage, claimants should gather comprehensive evidence linking damages to insured perils, understand policy exclusions, and promptly notify insurers. Legal proceedings may involve establishing the cause of damage, the liability of involved parties, and adherence to policy terms. Insurance coverage typically includes damages from seawater and natural perils but excludes damages from pre-existing conditions or non-covered risks. Proper documentation and timely claims submission are critical for successful recovery All sources.

References:- ["

SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

"]- ["

SING YUNG STEEL SDN BHD vs MSIG INSURANCE (MALAYSIA) BERHAD & ANO - High Court Sabah & Sarawak Kota Kinabalu

"]- ["

YEO HIAP SENG (MALAYSIA) SDN BHD vs MSIG INSURANCE (MALAYSIA) BHD & ANOR - High Court Malaya Kuala Lumpur

"]- ["2024 0 Supreme(Mad) 2155"]- ["

CAPPER & SONS v. THE CARGO BOAT DESPATCH CO.

"]- ["

Thakkar Exim VS Tata AIG Gen. Insurance Company Limited - Consumer

"]- ["

BUDGET MARINE LIMITED & ORS vs ASTIMEWA SDN BHD - Court of Appeal Putrajaya

"]- ["2024 Supreme(US)(ca6) 206"]
Liability for Destroyed Cargo Held Under Disputed Maritime Bills of Lading

How to Claim Cargo Damage as Destroyed in Liner Company Custody Due to Illegal Holding of Bill of Lading

In the fast-paced world of international shipping, cargo owners often face unexpected challenges when goods are damaged or destroyed while under a liner company's control—especially if tied to disputes over the Bill of Lading (B/L). Imagine your valuable shipment arriving in ruins, held up by an illegal holding of the B/L, leaving you wondering: How do you claim cargo damage as destroyed in liner company custody due to illegal holding of Bill of Lading? This guide breaks down the process, drawing from legal precedents and best practices to help you navigate this complex maritime issue.

Note: This is general information based on common legal principles and case insights. It is not specific legal advice. Consult a qualified maritime attorney for your situation.

Understanding the Core Issue: Cargo in Liner Custody and B/L Disputes

Liner companies, as common carriers, bear responsibility for cargo from receipt until proper delivery. However, issues arise when cargo is deemed destroyed due to damage sustained in their custody, compounded by delays from withheld or illegally held B/Ls. An illegal hold might occur if the carrier refuses release without justification, potentially breaching carriage contracts and exposing them to liability.

Establishing that damage happened while the cargo was in the carrier's custody and control is crucial [

#CargoDamageClaim, #MaritimeLaw, #BillOfLading
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