ABSTRACT
This chapter examines the inherent vice exclusion by analyzing the Institute Cargo Clauses. It addresses the issue of whether the term 'inherent vice' remained an exclusion over the years and whether insurers will continue to rely on the inherent vice defense after the Supreme Court decision of The Cendor MOPU. Accordingly, in The Cendor MOPU, the term 'inherent vice' lost its purpose as an exclusion clause in s.55 of the MIA 1906. It is important to explore the history of the all-risks policies and the concept of inherent vice in these policies. Therefore, unprotected insurers, especially after The Cendor MOPU, might find an alternative protection in Clause 4.3 if the insufficiency of packing exclusion is given the straightforward meaning provided in the case law. It is important to look at recent cases in order to observe the effect that the modern definition of inherent vice has had following the Supreme Court decision of The Cendor MOPU.
