Cargo insurance is an important part of international and
domestic trade, offering financial protection against the risks
that goods face while in transit. It ensures that when cargo is
lost, damaged, or destroyed due to unforeseen events, the owner or
party with insurable interest is not left to bear the full
financial burden. At the heart of every cargo insurance contract is
the issue of liability, that is, who bears responsibility when loss
occurs, under what conditions, and to what extent compensation is
payable.
Historically, the concept of cargo/marine insurance predates modern legal
systems, with its origins dating as far back as 300 BC when Chinese
merchants protected themselves by spreading goods across different
ships. Over time, more formalised systems emerged, including
Bottomry arrangements and the development of institutions like
Lloyd's of London, which gave cargo/marine insurance a
commercial and legal backbone. In modern times,
