Non Existent Goods Not Covered by non-existent Goods not covered by Marion cargo insurance in brief Angel Heart shows that to cover Financial losses that do not result from physical loss or damage the open government cargo policy must contain clear words to the eBay the fact in the English High Court decision in Angel Heart vs liloid Syndicate 1221 2018 should cause concern to anyone involved in the international Carriage of goodbye seed whether as Traders or insurers in this case the cargo Clayman was unsuccessful in its claim again its insurers under its open kill for Cargill policy physical loss claim do not include certain contents where insured is defrauded into taking out document of title for non-existent good Court fine the claimant had purchased corporate got from a supplier which it had done on sold to a consignee in China there were two shipment involved the force arrived at the ultimate destination but the second had never been shipped and there was no cargo to be physically lost or damaged the losses were therefore treated as economic losses due to the cargo owner's acceptance of fraudulent document in the expectation that they covered physical good unfortunately there is no explanation in the Judgment as to how the throat was prefer traded and how the documentation was produced and payment made for the good without the involvement of the original supplier it was suggested that broader word will be required if the police see was discovered more than losses flowing from physical loss or damage to Goods the character owner was a devil unsuccessful even though its cargo cover was subject to The Institute Cargill closes a and contained the following two Provisions container closed notwithstanding anything contain hearing to the contrary where cargo ensured here under is carried in containers it is agreed as between the assured and insurers that the seaworthiness and or caregiver worthiness of the container is Harry by admitted it is agreed that this insurance contract has also prepared for short dates of content meaning thereby the difference between the number of package as per shipper and or suppliers invoice and or packing list loaded or alleged to have been Laden in the container and or trailer and our vehicle load and the tone of package remove their from by the assured and or their agent at time of container emptying the notwithstanding that sales may appear in debt and or any other loss and or damage including but not limited to Cargo and our container sweat house over arising fraudulent document Clause this insurance contract covers physical loss over damage to good and or merchandise insured here under through the accepted by the assured and or shippers of fraudulent document of title including but not limited to bills of leading and or shipping receipts and or messenger received and our shipping document and our warehouse receive and or other document subtitle this insurance contract is all set to cover physical loss of or damage to good insured caused by utilization of legitimate bills of leading and or other document of title without the authorization and or concern of the assured on their agent and or shippers the argument Advanced by the cargo interests the physical loss claim included circumstance whether an assured had been defrauded into taking out document of title for non-existent good wasn't accepted in an interesting and so provoking article in relation to this case in the November 2018 issue of liloid Maritime and commercial law quarterly John Dunn visiting senior research fellow at The Institute of Mary down low University of Southern Pond posed the question can Marine cargo Insurance provide cover for non-existent goods he concluded that there are many widely drawn insurance covers in deals worldwide in today's cargo Insurance Market this decision confirmed that even in a widely drawn open cover cardio contract there should be an insurable interest and cargo which can commence Transit so that in the absence of clear wording there will be no cover for non-existent group indeed it is suggested here that to couple Financial losses occasion by the acceptance of fraudulent bills of Lady and insurance is required that contain explicit wording covering Financial losses not related to loss of cargo how Angel Heart Compares with nsw leader versus fan core insurance this case and then's article is somewhat reminiscent of the decision of character's G in March 1990 and the new South will score the bill in late 1991. in nsw leader versus Vanguard Insurance 1991 which involved a Cargill Clayman who had been unsuccessful adverse intense in recovering again its insurer for the loss of Good Ship first you want to an fob contract from Brazil to Sydney it was common ground in the case that the containers had been broken into prior to loading and the bulk of the leader Cargill stolen fresh Shield have been fraudulently attached thereafter at first instance it was held that the Importer had no insurable interest at the time the good had been stolen the open policy wording contained the agreement that the insurance was an insurance lost or not lost the for instance Judd had also held the laws or not lost close could not be a field of the Clayman however succeeded in the court of appeal in Reliance of laws or not lost close it need to be recalled in that context that section 12 of The Marine Insurance act 1999 provide as follows the assured must be interested in the subject matter insured at the time of the loss through the need not to be interested when the insurance is affected provided that where the subject matter is ensured laws are not lost the assured May recover also he may have not acquired his interest until after the loss worthy assured has no interest at the time of the loss he cannot acquire interest by any act or election after he is aware of the loss rule 1 in the second schedule to the Marine Insurance act also provide where the subject matter is insured loss or not loss and the loss has occurred before the contract is concluded there is attached unless at such time the assured was Award of the loss and the insurer wisdom notwithstanding those Provisions characters G at first since then had held that the laws had not fallen on the cargo importer because the leader had been stolen from the containers before they had passed over the ship rail at a Rio Grande the court of appeal had that cargo owner was entitled to rely on those Provisions Reliance was placed on the case of southern land versus spread 1943 815 were parked B State the simple question is whether it is any answer to an action on a policy on good laws or not loss the the interest in them wasn't acquired until after the loss