Inchmaree clause

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In marine insurance, extension of cover to include damage or loss due to latent causes such as breakage of the ship's drive shafts, bursting of its boilers, unseen defects in its hull, machinery, and auxiliary equipment; as well as due to errors in navigation, or negligence of its captain, officers, engineers, crew, pilots, etc. It is named after the ship Inchmaree involved in a landmark 1887 case (Thames & Mersey Marine Insurance Co. v. Hamilton, Fraser & Co.) where a UK court declared that the above causes do not fit the definition of 'all other perils ... losses or misfortunes.'

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