KenyalangSpices Ltd sold white pepper powder toTescasdaLtd. on CIF.KenyalangSpices Ltd arranged a ship "TheManok" to deliver the goods from Pontianak, Indonesia to Newcastle in UK.

KenyalangSpices Ltd has arranged an insurance policy, ICC (A), withBujangSenangInsurance Ltd. KenyalangSpices Ltd handed over the bill of lading, an invoice and the insurance policy to TescadaLtd. Afterreceiving the bill of lading,TescadaLtd has also acquired an insurance certificate with the coverage of peril of the sea and fire fromBujangSenangInsurance Ltd.

A week after the ship started the voyage,TescadaLtd instructed the seller to deliver the goods to Port Portsmouth due to the riots in Newcastle.KenyalangSpices. Ltd. ordered theshipmasterto deliver the goods to Portsmouth and also informed theBujangSenangLtd.Then a clause has been inserted in the policy as follows:"where, after attachment of this insurance, the destination is changed by the assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the insurer."

At Port Portsmouth, the vessel met with heavy weather and went aground.

Advise Kenyalang Spices Ltd.

Would there be any changes in your answer if the seller did not inform the insurer of the destination of the ship?

Objectives:

Students are required to find out the nature of insurance, principles governing marine insurance and ICC(A).

Students are required discuss the liability of the insurer and the insured under statute laws and case laws. Students should make conclusion on the liability of the insurer based on the proximate causation.

This assignment will provide the students a sound understanding on the importance of marine insurance in international trade.