It means the risk of deterioration of the goods shipped as a result of their natural behaviour in the ordinary course of the contemplated voyage without the intervention of any fortuitous external accident or casualty. 55(2)(c) refers to a peril by which a loss is proximately caused it is not descriptive of the loss itself. This phrase (generally shortened to ‘inherent vice’) where it is used in s. The definition provided was offered by Lord Diplock who stated that: The House of Lords held that the words ‘inherent vice’ referred to the peril, or risk, by which the loss was caused and not to the loss itself. Upon appeal, the only remaining issue was the construction of the words quoted above, and whether they prevented the insurance from covering an inherent vice, which necessitated a definition of that concept. An additional argument of failure to disclose the condition of the first cargo arose but was summarily dismissed by Lloyd J at first instance. The policy in this case was designed to cover risks also encompassing inherent vice namely, heat, sweat and spontaneous combustion. While most policies of marine insurance exclude inherent vice in addition to the statutory exclusion, it is worth noting that the insurance was, in a manner of speaking, the negative of a usual policy, in that it was designed to cover the carve-out of inherent vice which is not covered by a regular policy by virtue of the statutory exclusion, and of course any similar provision in the policy. This insurance is to cover against the risks of heat sweat and spontaneous combustion only.
#INHERENT VICE INSURANCE SERIES#
The first shipment in a series had deteriorated and additional insurance was purchased against heat, sweat and spontaneous combustion (‘HSSC’) for the subsequent shipments, as follows: The subject matter insured was a cargo of soya beans. In Soya v White, 7 the courts had been asked to draw a line of principle or law – not of evidence or fact – between events that are inevitable and those that are fortuitous a task made more difficult by events that are covered, although they may not be objectively fortuitous but are fortuitous from the perspective of the insured, such as arson. 6 Next, the factual background to these two key cases should be set out.
Having commented on the exclusion thirty years ago in 1982, the House of Lords, now succeeded by the Supreme Court, had a renewed opportunity to return to the exclusion and to finally settle its scope in 2011, in the case of The Cendor MOPU. 4.4 Loss damage or expense caused by inherent vice or nature of the subject matter insured.
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