in the course of transit by means of conveyance declared during the loading
and unloading risks".
The policy is limited to US.D 55,000 per conveyance/transit and to the East
African Region. TPW1 further explained that Threeways Shipping Services Ltd is
a sister company to the Third Party which owns the trucks and that Transtrac is
a trading company. TPW1 informed court that he had provided a copy of the
said endorsement renewal to the Defendant who did not raise any objection
and or request the Third Party to increase the amounts under the policy and
this evidence remained unchallenged. Counsel contended that this evidence
fulfilled the requirements of clause 8.1. to insure the goods.
He asserted that the duty of the carrier under clause 8.1 was to provide
evidence of insurance cover and there is no requirement that such insurance
ought to be in the name of the Third Party. The cargo in issue was at all
material times aboard truck no. KBF 384D registered in the names of
Threeways Shipping Services (K) Ltd as per Exhibit P5 and as such the goods
were insured. He contended that the Defendant is estopped both from
objecting to the insurance policy and claiming any amount of money in excess
of US.D 55,000 from the Third Party as indemnity for the undelivered goods.
Clause 8.1 obliged the Third party to take out "full insurance coverage ..."each
cover shall be for an amount per incident which is acceptable to Maersk
Logistics"
Counsel submitted that the phrase "...full insurance coverage ....” is uncertain
for reasons that it is meaningless, it has no application in the circumstances in
which it was written. Whereas the Third party was obliged to take “...full
insurance coverage .... “it was impossible for it to do so for the following
reasons;
i. The agreement did not specify any limits in terms of the value of goods
to be transported under the agreement.
ii. There is no evidence of communication or notice of the maximum value
of goods to be transported.
iii. With regard to the specific goods in issue, there was no declaration of
the value to the Third Party.
44
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