In the Swiss arbitration case of Compagnie de Navigation et Transports SA v. Mediterranean Shipping Co. SA (1995 BULL. ASA 503), the owner of the freight ship, Mediterranean Shipping Co. (MSC), agreed to ship cargo owned by the cargo owner. The cargo became open, lost, and damaged in the ship while in transit. Because there was cargo insurance, the insurance company, Compagnie de Navigation (CNT), paid damages to the cargo owner on behalf of MSC. CNT later brought a claim in Swiss court against MSC for indemnification.
cargo insurance
Definition
An insurance agreement to pay for freight that has been lost or damaged in transit, whether by land, air, or sea.
Definition from Nolo’s Plain-English Law Dictionary
Insurance that pays the beneficiary of the policy if freight covered by the policy is damaged or lost during transit.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm
“In August 1994, Albany issued an open marine cargo insurance policy that contained, among other things, a perishable cargo clause to insure Suma against the risk of physical loss or damage to its shipments of perishable goods. The clause, however, did not insure Suma against the deterioration or decay of its goods, absent a showing that the damage was caused by a ‘derangement or breakdown of the refrigeration equipment….’” J. Schroeder, Suma Fruit Int’l v. Albany Insurance Co., 122 F.3d 34, 35 (9th Cir. 1997).
