Delivery without BL
Background:
Delivery by the MTO’s Agent at destination without collecting original MTD
Liability:
Commercial Invoice amount about USD 90,000. MTO not entitled to any limitation
Principally, assured is responsible, but ultimately its his agent
Underwriters will recover from agent
Legal liability under Error & Ommission section
Conclusion:
Assured had issued “To order” MTD (extremely risky)
Recovery from agent very difficult and unlikely
Coverage in place only if Senior Management of the MTO is unaware
