You are a claims handler for a marine cargo insurer. One of the insurer's policyholders is a manufacturer of machinery that recently used a freight forwarder to arrange the transit of some heavy machinery from China to an Importer in Fiji. The Master of the carrying vessel issued a bill of lading that incorporated the Hague-Visby Rules and under Incoterms Cost, Insurance, and Freight (CIF) the Machine was sent to the importer in Fiji. In stormy conditions at sea, the lashings holding the machinery broke and both the machinery and the vessel suffered damage. The Master diverted the ship to a nearby safe port in the Pacific region where the machinery was re-stowed, allowing the vessel to complete its journey to Fiji. The policyholder has notified you of a claim for the damage to the machinery. You are carrying out your initial investigations which include considering the opportunity for recovery of any sum you may pay in settlement of the claim. 

Do you think material facts were not disclosed by the insured and both parties comply with the principle of utmost good faith? Yes or No Explain your answer in detail.

Answer rating: 100% (QA)

yes Based on the provided information it appears that the insured the manufacturer of machinery has ... View the full answer