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Jayanta Bandyopadhyay   05 December 2021

Job work at 3 rd party warehouse and insurance

We are sending an high value capex item to 3 rd party for job work and it will stay at their warehouse for about a month. Is it our responsibility to take appropriate storage insurance coverage, in case there is any damage to our equipment OR we can hold themselves responsible to compensate any loss under any contract . If they do not agree except refund of Jon work related cost.

Please guide.


 5 Replies

Anaita Vas   06 December 2021

Warehousing is defined as assumption of responsibility for the storage of goods. 

When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, exploration, fire etc. Warehouses are constructed in such a way as to minimise these risks. Contract of bailment operates when the goods are stored in wave-houses. 

The person keeping the goods in warehouses acts as bailor . A warehouse keeper has to take the reasonable care of the goods and safeguard them against various risks. For any loss or damage sustained by goods, warehouse keeper shall be liable to the owner of the goods.

The goods kept in the warehouse are generally insured. In case of loss or damage to the goods, the owner of goods can get full compensation from the insurance company.



Anaita Vas




Although this is a contract of Bailment and the bailor is responsible for safe storage of the equipment, it lmight be desirable  to take transit insurance. 


dr vedula gopinath    arbitrator

Kawmini Liyanage   04 January 2022


If the equipment is on a high-value scale, it would be wise to enter into an agreement with the warehouse management regarding its safety and all possible risks. 


Kawmini Liyanage.

Jayanta Bandyopadhyay   05 January 2022



Actually, we are buying mandrel from Indore based co and requesting that vendor to ship it to Chennai Vendor for assembly with Gear Box. That job work at Chennai will take one month and they will not give any insurance coverage. We are Bengal based company and will take the assembled item from Chennai to Kolkata. Both the items are high value. Is there any individual policy to cover both the items at Chennai vendor factory for 2 months approx.

Please guide.


Yes.please take transit cover.

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