ABSTRACT
The main statutory excepted losses set out in s 55(2) of the Act are examined in this chapter. They are of particular relevance to the Institute Hulls Clauses for, unlike the ICC, the ITCH(95) and the IVCH(95) do not have a general exclusion clause. It is noted that all the statutory exclusions are expressly reiterated in the ICC.1 The excluded losses in s 55(2) are of general application; and the opening phrase ‘in particular’ serves to reinforce the fact that they are specific examples flowing from the general rule spelt out in s 55(1) that an insurer is only liable for ‘any loss proximately caused by a peril insured against, but … he is not liable for any loss which is not proximately caused by a peril insured against’. With the exception of the defence of wilful misconduct under s 55(2)(a), all the other causes of loss, though expressly excluded by the said section, may nevertheless be insured under a policy. This is allowed by the opening words to s 55(2)(b) and (c), ‘unless the policy otherwise provides’. This chapter will focus only on the main exceptions, namely, a loss ‘attributable to the wilful misconduct of the assured’; a loss ‘proximately caused by’ delay;2 ordinary wear and tear; ordinary leakage and breakage; and inherent vice or nature of the subjectmatter insured.
