Seller doesn't ship the cargo, but obtains payment from the buyer. Can an 'all risk policy' respond?

All Risk Marine policy doesn't really provide cover for all kinds of contingencies. In a recent case Englehart CTP v Lloyd’s Syndicate [2018], a commodity (copper ingots) was bought and payment made against (fraudulent) B/L. Upon arrival of the container at destination, it was discovered that the particular cargo was never infact loaded. Assured looked to the insurers for indemnity. It was denied.

Court agreed with the insurers saying that 'something must exist to be physically lost'. In this case cargo had never been loaded and therefore could not suffer 'loss or damage'. Furthermore, the loss suffered was an 'economic loss' owing to acceptance of fraudulent B/L and therefore not covered.

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