Indian Kanoon - Search engine for Indian Law

33. In the case of J.Aron & Co. Vs. Miall, (1928) 31 LIL R ep242 (CA), it was held that the policy was not by way of blank endorsed as is customary in marine insurance but the endorsement is made by words, that the claim shall be paid to them. Scrutton LJ., thought that it has the effect of assignment.

34. On 04.08.1998, the complainant No.1 wrote to Webster stating that Bills of Lading were consigned to order and were blank endorsed. On 05.08.1998, Webster & Co. wrote to OP that ship owners who were discharging cargo were Mersin, leading to total constructive loss. The complainants were told to proceed prudent uninsured only on 07.08.1998 (despite 05/06.08.1998 being working days) after total constructive loss had occurred.

In the event that the Contracts of Carriage are frustrated it will therefore be necessary for cargo interests to meet the costs of forwarding cargo to destination. It is important to consider whether the costs involved in forwarding cargo to destination would be recoverable under the cargo insurance policy.

A policy of marine insurance is a policy on the adventure as well as on the cargo.

Frustration of the voyage would result in loss of the adventure which in turn potentially could give rise to a claim for constructive total loss. However, the voyage is being frustrated by detention and the risk of detention and not normally covered under the insurance policy. Therefore the costs of forwarding cargo to destination may not be recoverable under the policy.