For a
Cargo Insurer, the subject matter of insurance, the origin and destination
involved, and the way the goods are packed are all of significance. Goods are packed [and that includes no
packing !] – when there is movement of goods, the primary aspect is of packing is
to enable them transportable. Though
there are various functions of packaging – it can broadly be classified as : Primary,
secondary and tertiary. From
transportation perspective, the ease of
handling and lesser the volume it would occupy are important. From an insurance perspective, the protective function is of utmost importance
i.e., Packaging must protect the goods
from loss, damage and theft and should be convenient to handle.
Often
when information is sought, the answer could be : Usual and customary. English definition of Customary : - Customary
is used to describe things that people usually do in a particular society or in
particular circumstances; 0r what is generally used by the industry as a
practice.
In our
day to day life, we come across so many packing types – simple one is the ‘rice
in bags’, the conventional ones. As you could easily discern, they are
conventionally standardized ones – i.e., 50 kg bags when bought in rice market
and in small quantities of 5/10/15/20 kgs for invidiuals. When rice and other
similar products are to be transported to far off places, that too in huge
quantities, they are loaded in containers or simply sent in bulk.
Getting
back to packing, the protective function
essentially involves protecting the contents from the environment, hazards they
are exposed during the transit. The inward
protective function is intended to ensure full retention of the utility value
of the packaged goods. In addition, packaging must also reliably be able to
withstand the many different static and dynamic forces to which it is subjected
during transport, handling and storage operations. The goods frequently also
require protection from climatic conditions, such as temperature, humidity,
precipitation and solar radiation, which may require "inward packaging
measures" in addition to any "outward packaging measures".
Packing
is an important exculpatory exclusion in Institute Cargo Clauses [1982] which
reads : Loss, damage or expense caused by insufficiency or unsuitability of
packing or preperation of the subject matter insured (for the purpose of this
Clause 4.3, packing shall be deemed to include stowage in a container or lift
van but only when such stowage is carried out prior to attachment of this
insurance or by the insured or their servants).
So the
packing must be sufficient. Sufficient
packing is normal or customary packing in the trade. Such packing should permit
the goods to withstand the normal hazards likely to be encountered on the
specific voyage contemplated and to prevent all but the most minor damage under
normal conditions of care and carriage. There
of course cannot be an all encompassing single criterion determining ‘insufficiency
of packing’.
While
protective packing is required for withstanding normal hazards of transit – the
goods have to remain saleable and the Promotional packing would attract the
buyers enabling faster sale. If one were
to seek Marine insurance for ‘dinner set’ – the Marine Insurer might think that
this is a fragile item, prone to breakage and hence packing is very
important. If you are a Marine Insurer,
how would you respond to a proposal of 24 piece dinner set ordered from Tesco,
coming as they did with every single item packaged in two individual boxes –
individual packing for every piece, that too, two boxes – excellent one might
scream – not Joanne and Billy Murphy, from Ashton-under-Lyne in Greater
Manchester, who ordered this a 24-piece
dinner set from Tesco.
They
were stunned when it arrived after 14 days and every single item had been
packaged in two individual boxes ! Once all the pieces had been unwrapped from
the £50 delivery they could not see the floor of their living room. MailOnline reports that Joanne and Billy
Murphy were mystified as to why every plate, bowl and mug they had ordered from
Tesco was packed in its own individual box and then placed inside a second
bigger box.
The
pile of boxes took up so much space the family could not see their living room
floor once they had unwrapped all the items from the 24-piece dinner set ~ and despite the careful packing, four bowls and a
mug were smashed in the delivery. Mrs
Murphy, 39, a mother-of-two, thought the
delivery process was 'ridiculous and 'laughable' as everything was double boxed;
and was annoyed Tesco had initially ignored her requests to help her clear away
the piles of cardboard.
She
was already irritated at having to wait 14 days for the £50 delivery to
arrive. She said: 'The ironic thing is
despite all the packaging, they still managed to break five items. 'The first
two bowls came in a separate delivery. I thought it was pretty bad they came in
their own boxes so I rang Tesco to complain. 'I thought that would be a
one-off. I never expected the whole order to be like that. 'The driver knocked
on our door and asked if I was expecting a big delivery. I said not really,
just some kitchen stuff, but his entire van was full of it. 'He was astonished
as we were. Nobody could understand why there were so many boxes. 'Every plate,
bowl and mug came in two boxes. It was laughable.
'I think it's ridiculous and I was even more annoyed when they ignored me after I asked them to come and clear it up. 'After everything was unwrapped we couldn't even see the floor.' Mrs Murphy and husband Billy, 38, a railway engineer, pay £6 a month as part of the Tesco Delivery Saver as they regularly use the company for their grocery shopping. When the couple finally opened the boxes there was also a huge amount of paper inside which added to the clutter.
She
rang Tesco to complain but the store initially only wanted to deal with the
broken items. They have now collected the packaging. The full-time mother, who
lives in Ashton-under-Lyne in Greater Manchester, said she had concerns about
the environment impact of the cardboard overload but could also see the funny
side. 'For the kids it was like
Christmas Day. They were making dens and turned some of the boxes into an
indoor skate park', she said.
Tesco,
which used delivery firm Yodel to distribute Mrs Murphy's order, said the
amount of packaging was a blunder. A spokesman
told MailOnline: 'We aim to use the minimum packaging possible while ensuring
our products are properly protected from damage. Clearly we’ve made a mistake
on this occasion. 'We have apologised to
Mrs Murphy, will replace the damaged items and have collected the excess
packaging from her house so it can be recycled'.
Interesting !!
With regards – S.
Sampathkumar
23rd Nov. 2015.
