Meaning of "All Risks"
Clause 1 of the Institute Cargo Clauses 'A'
Clause 1 provides:
"This insurance covers all risks of loss or damage to the subject matter insured except as....."
- All risks has a special meaning.This does not mean that the policy covers every kind of risk. In order to recover under this clause, the risk must be fortuitous or accidental in nature and or resulting from an external cause.
In other words, the proximate cause of the damage must be from without, not from within.
- Damage or loss which is inevitable or foreseeable would not come within the definition of All Risks.