Where Cargo, insured hereunder, is carried in Containers, it is agreed, as between the Assured and Underwriters, that the fitness of the Container is hereby admitted unless the Assured or their servants are privy to such unfitness
Explanation: Often containers have leaky roofs and rust points. It is difficult for the insurer to prove that the containers were defective with the privity of the assured. However for clarity, such clauses are used by brokers when the assured has no control over choice of containers of their overseas sellers. The entry of water into containers is a recurrent problem and can lead to substantial loss. Pre-shipment inspection of containers is suggested but when the turnover is huge and/or the assured is a trader (and not the seller), such pre-shipment surveys become difficult to implement.
Explanation: Often containers have leaky roofs and rust points. It is difficult for the insurer to prove that the containers were defective with the privity of the assured. However for clarity, such clauses are used by brokers when the assured has no control over choice of containers of their overseas sellers. The entry of water into containers is a recurrent problem and can lead to substantial loss. Pre-shipment inspection of containers is suggested but when the turnover is huge and/or the assured is a trader (and not the seller), such pre-shipment surveys become difficult to implement.