Freight forwarder ITN Consolidators was denied an insurance claim for a hijacked cargo shipment when a US Court of appeals applied the " known loss doctrine " , arguing that the company was aware of the loss before seeking coverage from ins Northern insurance Underwriters . The court ruled that ITN had taken out an open cover policy with NMU but found it had n't covered the the lost shipment . It then filled in a coverage form and claimed for the loss , which NMU denied . The court said the case touched on public opinion as the doctrine existed to protect insured parties from insolvent insurers .
Freight forwarder ITN Consolidators was denied an insurance claim for a hijacked cargo shipment when a US Court of Appeals applied the "known loss doctrine", arguing that the company was aware of the theft before seeking coverage from insurer Northern Marine Underwriters. The court heard that ITN had taken out an open cover policy with NMU but found it hadn't covered the the lost shipment. It then filled in a coverage form and claimed for the loss, which NMU denied. The court said the case touched on public policy as the doctrine existed to protect insured parties from insolvent insurers.