Most of you may know that cargoes are usually covered under Institute Cargo Clauses (A), (B) and (C), with Clause A providing the most comprehensive coverage and Clause C covering the least. However, some of you may not be aware that extra insurance cover, such as a hoisting extension, should be added when transporting large-scale machines for more comprehensive protection.

Mr. Chan bought a knitting machine which needed to be transported to his factory in Shenzhen. His machine was covered under Institute Cargo Clauses (A). As the machine was too large to be transported into Mr. Chan’s factory by lift, Mr. Chan needed to employ a hoisting company to lift his knitting machine from the truck to the second floor of the factory.

Unluckily, part of the knitting machine was broken during this procedure. Can Mr. Chan successfully claim for this loss from his cargo insurer?

As the coverage of a cargo insurance policy usually ends when the goods are transported to the consignee’s warehouse/factory, any damage arising in the course of hoisting is not covered by the cargo insurance. As Mr. Chan only took out Institute Cargo Clauses (A) without an extra hoisting extension, his loss was not covered by his cargo insurance.

If customers would like to have hoisting extension coverage, they can liaise with their insurance company to extend the cover. They can also take out public liability insurance which can provide cover against third party property damage or bodily injury. In addition, in order to make sure that their cargoes are comprehensively protected by cargo insurance, customers are advised to disclose all details of their cargoes to their insurance company.

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