Both to blame collision clause
Covers a liability the bill of lading passes back to the cargo owner.
Definition
Clause 3 of the Institute Cargo Clauses. Where two ships collide and both are at fault, the allocation of liability in some jurisdictions allows the carrying ship to recover part of the cargo claim from the cargo owner, through a both-to-blame collision clause in the bill of lading. The Institute clause indemnifies the insured against that liability.
Why it decides money
A liability created by a contract the cargo owner did not negotiate, arising from a collision they had nothing to do with. It is covered at every clause level.
Related terms
- Bill of lading
- Receipt, evidence of the carriage contract, and document of title.
- General average
- A shared bill when something is sacrificed to save the whole venture.
More in clauses and wordings
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.