Scindia Steamships (London) Ltd v London Assurance The owners of a ship took out a Lloyd’s policy of insurance which contained a clause, known as the Inchmaree clause, in the following terms: “This insurance also specially to cover (subject to the free of average warranty) loss of or damage to hull or machinery directly caused by accidents in loading, discharging, or handling cargo, or in bunkering or in taking in fuel, or caused through the negligence of master, mariners, engineers or pilots, or through explosions, bursting of boilers, breakage of shafts, or through any latent defect in the machinery or hull.