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Extraneous Perils : These are the incidental perils to which the cargo is exposed. These are caused mainly on account of the faults in loading, keeping, carrying and unloading of cargo. Examples of such perils are: improper stowage, rough handling, breakage and leakage, hook and sling damage, contract with mud, oils and acids and theft, pilferage and non-delivery.
The Maritime and Extraneous perils are incorporated in the Institute cargo clauses standardised by the Institute of London Underwriters. These clauses constitute the terms and conditions of the insurance and are appended to the policy form known as MAR Policy Form.
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