Clause 15 (Benefit of Insurance Clause) of the Institute Cargo Clauses provides that the insurance is not to inure for the benefit of the carrier or other bailee. Contracts of carriage or bailment may provide that the carrier or bailee will have the benefit of any insurance on the goods. The aim is to deny insurers their subrogation rights against the carrier or bailee. The ‘not to inure clause’ protects the insurer by negating this contractual provision.
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A clause in a Marine Cargo insurance policy providing that the insurance shall not inure to the benefits of the carrier or other bailee. In other words the clause reserves the insurer’s potential right of recovery from the carrier or bailee.