Importance of Packing in Marine Insurance
Importance of Packing in Marine Insurance
Importance of Packing in Marine Insurance
1982 2009
• It is pertinent to note that if the insurance company denies liability on the grounds of
inadequate or unsuitable packing, the onus of proving the same lies on them. In principle
the underwriter has reason to suppose that the goods will be soundly packed.
• Unsuitability of packing or preparation can take many forms but a recent example
involved the use of damp timber by the company responsible for palletising the goods,
after the inland transit, ready to be placed in containers. As a result severe condensation
occurred during the voyage which penetrated the bagged titanium dioxide. If the
palletising had been carried out by the assured there would have been no claim, but
since the palletising was done by a third party during the insured transit the assured
could recover.
Disadvantages
• With repeated use many container develop cracks or holes which negates the advantage of protection against external risks
• Inadequate ventilation can cause condensation or container sweat damages to the cargo
• If internal packing and stowage is poor, then due to free movement of goods cargo will get damaged.
• The biggest challenge that damages remains unseen unless it is opened at the destination, leading to aggravation of loss.
Type of containers
• Bulk containers
For certain trades, the use of hessian-wrapped bales is suitable, particularly when the product
permits pressure baling or compression by banding. It is, however, vulnerable to pilferage,
damage by handling using looks, etc..
incorrect weight distribution like piling cargo in one area inside the container instead of spreading it evenly
improper loading of cargo like loading heavy crates/pallets on top of lighter crates/pallets which will affect the
stability of the cargo bad stowage may be a result of
negligence on the part of the shipper or the packing warehouse not taking proper precautions in packing the
cargo properly for transit
lack of knowledge in handling certain types of cargoes like steel coils, granite blocks and other heavy and
special type of cargoes