Wilful misconduct
Deliberate loss by the insured — excluded, and it also breaks the carrier's limit.
Definition
Clause 4.1 of the Institute Cargo Clauses excludes loss attributable to the wilful misconduct of the insured. The same idea appears on the other side of the transaction: Article 29 of CMR and the equivalent provisions in the sea conventions remove the carrier's right to limit liability where the damage was caused by wilful misconduct, or by a default treated as equivalent to it.
Why it decides money
It is the one concept that cuts both ways — it is the insurer's defence against the insured, and the insured's route past the carrier's liability cap.
Related terms
- Carrier liability
- What the carrier owes by treaty — capped, usually by weight, never by value.
- Subrogation
- The insurer stepping into your shoes to recover from whoever caused the loss.
More in what is covered
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.