Transit Iniurance Notes—LIABILITY—LEGAL AND MORAL HI AULIERS are usually more concerned
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with the schedules to their transit policies than with the rather ornamental block of printing with which such policies usually commence. This introductory wording, however, which is known as the " preamble," should be read just as carefully as the rest of the document, because it defines exactly what the policy covers. It may be usefully pointed out that a transit policy does not cover merchandise as such—it merely covers, subject to its terms and conditions, a haulier's liability for merchandise, while in transit and in his care.
This aspect is emphasized because there are still transit policies worded to insure only legal liability—a definition which, at the present time, hardly goes far enough to satisfy practical needs. Whilst this definition would be excel lent if every consignment was the subject of a precise contract stating what liability a haulier does and does not assume, the fact remains that, in practice, such exact contracts are more the exception than the rule.
In the absence of any definite contract, therefore, it might well be difficult to say where a haulier's legal liability begins and ends, although the damage or loss in question might be such that he feels himself responsible for it. For this reason, it is really unwise to accept a transit policy which merely insures only legal liability,, for although such a wording might not cause inconvenience yet it is far more satisfactory to haves policy in more comprehensive terms. In brief, it should include both legal responsibility and moral responsibility, subject, of course, to the usual policy limitations.