On Inherent Defect of the Subject-Matter Insured

Abstract

Generally speaking, "inherent defect" means material damages of the subject-matter insured, but from the theoretical point of view, it should be taken to mean the perils or risks which are thought to cause the damages. All its processes of damage go within the subject-matter itself, as in the cases of spontaneous combution, putrefaction, natural death of domestic animals, diseaseharms or insect-damages of agricultural products. It is, therefore, contrary to the risks caused from without the subject-matter, such as perils of the seas, fire, thieves and so forth, But there is no difference between both of them, in the sense that each may be perils or accidents to cause damages.1 It is general tendency that non-liability of the insurer for inherent defect is prescribed in laws, as ~vell as for the damages caused intentionally or by serious faults of the insured. They differ, however, in their natures and in the reasons of non-liability ; especially non-liability in the latter case is applicable in every kind of insurance, but not in the former case. Today in laws of every country of the world, non-liability for inherent defect is prescribed with respect to marine insurance, but not always to insurances for land risks. Historically, the regulations for land insurances have come from their precedents, those of marine insurance. "Maritime perils" have traditionally meant outer-caused risks which occurred under the unusual condition of the voyage, and so inner-caused risks under the usual condition have not been considered marine risks. This idea was brought into insurances ,for land risks, and gave birth to the principle that the insurer is not liable for the losses resulted from