Marine Insurance

Sidebar_image1 Sidebar_image1 Sidebar_image1
1 3 2 4 5 6
Sidebar_image1 Sidebar_image1 Sidebar_image1

With the rising globalisation, businesses are selling their goods on both domestic and international markets. Business expansion increases transit risks. In cross-border or long-distance transport, potential goods damage threat rises, causing financial losses. Availing transit insurance becomes extremely essential for businesses involved in goods transportation. Understanding coverage scope, exclusions, terms, and conditions is vital when buying insurance. It ensures businesses can benefit from the policy when needed. Inherence vice exclusion in transit insurance is one such important clause in goods in transit insurance that every business needs to understand before buying coverage. Read on to know more about inherent vice exclusion.

Inherent vice exclusion in transit insurance: An overview

Transit insurance provides coverage for goods while they are being transported from one location to another. However, within transit insurance policies, there is a concept known as “inherent vice exclusion”. This exclusion limits coverage for losses caused by the inherent characteristics or nature of insured goods.

Defining inherent vice: characteristics and examples

Inherent vice refers to the natural tendencies or qualities of goods that make them susceptible to damage or deterioration even under normal conditions. These characteristics are inherent to the goods and cannot be easily eliminated or altered. Examples of inherent vice include perishable goods that spoil over time, fragile items prone to breakage, or certain chemicals that are prone to degradation.

The Role of inherent vice exclusion in transit insurance policies

The purpose of inherent vice exclusion in inland transit insurance policies is to differentiate between losses or damages caused by external factors versus those resulting from the inherent nature of the goods. Insurance providers limit liability for losses due to the inherent vice of the insured goods. It helps establish a clear boundary between insurable risks and risks that are inherent to the nature of the goods themselves.

Limitations and coverage implications: how inherent vice exclusion works in transit insurance

When inherent vice exclusion is present in an online transit insurance policy, it means that the insurer will not provide coverage for losses or damages that solely result from the inherent characteristics of the goods. For example, if perishable goods spoil during transit due to their inherent nature, the insurance policy may not cover the resulting loss. Similarly, if fragile items break due to their inherent vulnerability, insurance coverage may not apply.

However, it is important to note that inherent vice exclusion does not absolve the insurer of all liabilities. External factors or negligence can worsen inherent vice, causing additional damages. These losses may still be covered under the policy. For instance, temperature control system failure causes perishable goods spoilage. The resulting loss may be covered despite inherent vice.”

Examples of inherent vices in transit insurance

Inherent vices are very real and often overlooked elements of transport insurance. Typical examples: spoilage, inadequate packing, improper loading during shipping cause physical damage. Public transportation methods like planes, trucks, or boats are susceptible to these risks

Carriers may inspect items before shipping, but inherent vice can cause unforeseen losses during transit. Despite checks, certain vulnerabilities may lead to damage. This underscores why right insurance coverage against these types of risks is essential for companies engaging in regular shipping activities.


In conclusion, an inherent vice exclusion under transit insurance online protects the carrier from having to pay for losses caused by the natural deterioration of merchandise due to temperature changes, exposure to moisture and humidity, or other environmental causes. 

It is important for customers shipping any goods across long distances to understand these exclusions as well as any others that may apply when purchasing online transit insurance coverage. Adequate cargo protection ensures peace of mind and safeguards your bottom line during shipping mishaps.

About The Author


MBA Insurance and Risk

With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.