Insurer is liable to pay for loss due to defective packaging

The Commission observed that the policy excluded defects in packaging from inception. But the package had been checked by the insurer's representatives and found to be in order

Dujodwala Products, a company engaged in manufacturing chemicals for local as well as export market, received an order for products from Saudi Rook Wool Factory at Riyadh. As the product was sensitive to atmosphere, the temperature had to be maintained at 5°C or less. Dujodwala hired a container from Maersk India, which had a built-in refrigeration system. The consignment was packed in 109 metal drums and placed in the container, which was examined by National Insurance before issuing a policy covering all risks. The container was loaded on a motor vehicle for transportation to JNPT, Nhava Sheva Port for shipment.

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