OWNERS CARGO POLICY WORDING

Transcription

1 OWNERS CARGO POLICY WORDING TTOC/2014/v.1.0 This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo TTMOC/2014/v.1.0

2 POLICY WORDING TT Club Owners Cargo CONTENTS Introduction Page: 1 Assignment Page: 1 Data Protection Act Page: 1 Language Page: 1 Law and Jurisdiction Page: 1 Membership of Associations Page: 1 Our Service Page: 1 Form Page: 1 Premium Payment Page: 2 Right to Cancel (Consumers) Page: 2 Voidance Page: 2 Warranties Page: 2 Definitions Page: 3 Standard Conditions Page: 5 Insuring Agreement Page: 5 Automatic Extensions to Conditions Page: 10 Optional Extensions to Conditions Page: 14 Exclusions and Restrictions to Conditions Page: 19 Claims Conditions Page: 21 TRIA Notice Page: 23 Service Standards Page: 24 This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Index

3 INTRODUCTION ASSIGNMENT The cover this provides with respect to any particular Goods may be assigned, with or without notice to the Insurer. If a claimant is not the Assured named in the Schedule, the onus is on the claimant to demonstrate a legally binding assignment has been made in the claimant s favour. This is not a financial instrument and the mere possession of the original, or a copy document constituting this, will not be taken as evidence of assignment. No assignment can operate to reduce or avoid the liability of any Assured or previous assignee to perform or to have performed all their obligations under this nor prevent the Insurer from reducing or avoiding their liability under this to an assignee by reason of any breach of the implied or explicit terms of this by any previous assignee or the Assured. An assignee must fulfil all the terms, conditions and warranties of this as though they were the Assured. No person or party other than the Assured or any valid assignee shall have the right to enforce any of the terms of this. DATA PROTECTION ACT Any information provided to the Insurer regarding the Assured or any Employee will be processed by the Insurer, in compliance with the provisions of the Data Protection Act 1998, for the purpose of providing insurance and handling claims, if any, which may necessitate providing such information to third parties. LANGUAGE Unless We agree otherwise, the language of this and all communications relating to it shall be in English. LAW AND PRACTICE UK RISKS This insurance is subject to English law and practice and to the exclusive jurisdiction of the English Courts sitting in London. LAW AND PRACTICE NON UK RISKS This insurance is subject to English law and practice. MEMBERSHIP OF ASSOCIATIONS The Assured is not a member of the Through Transport Mutual Insurance Association Limited or of TT Club Mutual Insurance Limited. OUR SERVICE We aim to provide the highest standards of service and fairness towards Our Assureds and brokers. If You have a complaint, or any other comment, about the maintenance of these standards by The Club, or by anyone acting on behalf of The Club, We ask that You let Us know immediately. This will allow Us both to resolve the issue which You raise and to take action to improve Our service in the future. We are dedicated to providing a high quality service and We want to ensure that We maintain this at all times. If You feel that We have not fulfilled this undertaking or if You have any questions or concerns about this or the handling of a claim please see the Service Standards section on page 24. POLICY FORM Mar 91 This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 1 of 24

4 PREMIUM PAYMENT If any premium due under this has not been paid to Us, We shall have the right to cancel this by notifying You in writing. In the event of cancellation, premium is due to Us for the period that We are on risk but the full premium shall be payable to Us in the event of a loss or occurrence prior to the date of termination which gives rise to a claim under this. We shall give no less than fifteen (15) days prior notice of cancellation to You. If premium due is paid in full to Us before the notice period expires, the notice of cancellation will automatically be revoked. If not, the will automatically terminate at the end of the notice period. RIGHT TO CANCEL (CONSUMERS) If You are a Consumer You have a statutory right to cancel this contract of insurance within fourteen (14) days from the date of purchase of the contract of insurance or the day on which You receive Your documentation, whichever the latter. If You want to cancel, and Your insurance cover has not yet started, You will be entitled to a full refund of any premium paid. VOIDANCE When drawing up and agreeing to this contract, We have relied on the accuracy of the information and statements which You have provided in the proposal or application. In the event of any misrepresentation, mis-description, or non-disclosure of any information or fact by or on behalf of You We may choose to void this contract or refuse to pay, or otherwise reduce Our liability, in respect of a claim. WARRANTIES Certain conditions in this contain Warranties. If a Warranty is not complied with We may choose to void this contract or refuse to pay, or otherwise reduce Our liability, in respect of a claim. BRIAN WOOD DIRECTOR OF UNDERWRITING ON BEHALF OF TT CLUB MUTUAL INSURANCE LIMITED, TRADING AS THE TT CLUB This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 2 of 24

5 DEFINITIONS Whenever the following words appear in the or Schedule(s), they shall be deemed to have the meaning defined below; CLAIMS HANDLER W K Webster Webster House 207 Longlands Road Sidcup Kent DA15 7JH Telephone: Facsimile: Website: cargo@wkwebster.com ASSURED / YOU / YOUR The entity(ies) and/or person(s) stated in the Schedule, the policyholder. CONDITION PRECEDENT A condition of the which must be complied with. If a Condition Precedent to liability is not complied with, We may choose to refuse to pay, or otherwise reduce Our liability, in respect of a claim. CONVEYANCE The method used to transport the Goods as stated in the Schedule. DEDUCTIBLE The applicable amount stated in the conditions or the Schedule, which this does not cover and will be deducted from each claim. GOODS The subject matter insured, being those types of Goods described in the Schedule which are new, unused, and the subject of bona fide sale or purchase by the Assured in the ordinary course of the Assured s business. INCOTERM(S) The Incoterms (International Commercial Terms) rules, an internationally recognised standard in contracts for the sale and purchase of goods, as published and reviewed periodically by the International Chamber of Commerce, and currently the Incoterms INSURED PERIL Those risks which are a direct cause of Loss or Damage to the Goods and which are included under the applicable conditions of the. INSURED VALUE The agreed value of the Goods, assessed and declared in accordance with the required Basis of Valuation. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 3 of 24

6 INSURER / OUR / THE CLUB / UNDERWRITERS / WE TT Club Mutual Insurance Limited, trading as the TT Club ISM The International Management Code for the safe operation of ships and for pollution prevention. ISPS CODE The International Ship and Port Facility Security Code, an amendment to the SOLAS Convention. LIMIT OF LIABILITY The maximum Insured Value per any one Conveyance and/or Location for which We shall be liable, in accordance with the Schedule. LOCATION Any one place, building, or area in which Goods are consolidated (but does not include a Conveyance) during the ordinary course of a Transit/Voyage. LOSS OR DAMAGE Physical Damage to tangible property or irremediable Loss or irremediable deprivation of the use of tangible property. Loss or Damage does not include Loss, impairment or deprivation of the use of intellectual property, book debts, land values, legal, contractual or financial rights and options or any other form of non-tangible property. Loss or Damage does not include Loss of use of property which has not been physically damaged and which is physically accessible to the Assured and shall be understood independently of the property's ability to function as intended. The terms 'loss', 'damage', and 'damaged' shall have the same meaning. POLICY The contract of insurance embodied in this Schedule, Wording, Country Schedule and any Endorsements. SCHEDULE(S) The TT Club - Cargo Quote or Schedule and TT Club - Cargo Country Schedule documents accompanying and to be read in conjunction with this TT Club - Cargo Wording document. SOLAS CONVENTION The Safety Of Life At Sea Convention (SOLAS) 1974 and as amended on minimum security arrangements for ships, ports and government agencies. TRANSIT / VOYAGE The geographical movement of the Goods, beginning and ending in accordance with the appropriate Institute Clauses applicable to the Transit/Voyage and for the Conveyance. WARRANTY / WARRANTIES A condition of the which must be complied with. If a Warranty is not complied with, We may choose to void the, or refuse to pay, or otherwise reduce Our liability, in respect of a claim. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 4 of 24

7 STANDARD CONDITIONS INSURING AGREEMENT In consideration of payment of the premium when due, this provides insurance against Loss or Damage to Goods by an Insured Peril during the Transit/Voyage and on the Conveyance set out in the Schedule by or for the account of the Insured in accordance with the applicable terms, conditions and exclusions of this. The amount the Insurer will pay is the intrinsic worth of Goods the subject of Loss Or Damage as determined by the relevant Basis of Valuation. However, the Insurer will not pay more than the Limit of Liability stated in the Schedule(s). The Insured warrants that the values and declarations of Goods made by the Insured to the Insurer is the value determined in accordance with the relevant Basis of Valuation. The amount of the Deductible specified in the Schedule(s) will be deducted from the amount of each claim. This and the terms and conditions thereof must be read in conjunction with the relevant Quote or Schedule and Country Schedule. CONDITIONS IN RESPECT OF GOODS MOVING BY SEA, ROAD OR RAIL: Institute Cargo Clauses (A) (Clause 382) Institute Strikes Clauses (Cargo) (Clause 386) Institute War Clauses (Cargo) (Clause 385) Institute Classification Clause (Clause 354) IN RESPECT OF GOODS MOVING BY AIR: Institute Cargo Clauses (Air) (Clause 387) Institute Strikes Clauses (Air) (Clause 389) Institute War Clauses (Air) (excluding sendings by post) (Clause 388) Institute War Clauses (sendings by post) (Clause 390) IN ADDITION FOR ALL GOODS: Institute Cyber Attack Exclusion Clause (Clause 380) Institute Radioactive Contamination, Chemical, Biological, Biochemical and Electromagnetic Weapons Clause (Clause 370) Institute Replacement Clause (Clause 372) Joint Cargo Committee Sanction Limitation and Exclusion Clause (JC 2010/014) Joint Cargo Committee Cargo Termination of Transit Clause (Terrorism) (JC 2009/056) Joint Cargo Committee Cargo ISM Endorsement (JC 98/019) Joint Cargo Committee Computer Millennium Clause (Cargo) (JC 98/024) IF WE HAVE AGREED TO INSURE GOODS WHICH ARE FROZEN OR OTHERWISE TEMPERATURE CONTROLLED: Institute Frozen Food Clauses (A) (excluding frozen meat) (Clause 263) Institute Strikes Clauses (Frozen Food) (excluding frozen meat) (Clause 265) Please note that cover in respect of War and Strikes risks is not automatic for all Voyage / Transit. For details, please refer to the Country Schedule. INSTITUTE CLAUSE REVISION The Institute Clauses referred to are those current at the inception of the and should the clauses be revised during the Period of Insurance, and provided that We give You thirty (30) days written notice thereof, then the Institute Clauses so revised shall apply to Goods first sent forward or stored if We insure storage after the date of expiry of such notice. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 5 of 24

8 ATTACHMENT OF TRANSIT Notwithstanding Clause 8.1 of the Institute Cargo Clauses (A) (Clause 382) or Institute Cargo Clauses (Air) (Clause 387) it is agreed that this insurance attaches either: You acquire interest in the Goods; the Goods are set in motion at the warehouse or place of storage for the imminent commencement of the Transit/Voyage, and then continues providing that the Goods remain in the ordinary course of Transit. whichever the latter, in accordance with the applicable Incoterm(s). We cover Goods during loading and whilst being packed by professional packers and whilst at professional packers premises for up to thirty (30) days (including whilst in transit to and from professional packers premises) and storage in the ordinary course of Transit, containerisation and transhipping all in accordance with the Institute Cargo Clauses applying to this. Cover terminates in accordance with the termination provisions contained in the Duration Clause of the Institute Clauses as applicable to the relevant Transit/Voyage. We will cover periods in excess of thirty (30) days at professional packers premises providing that You give the Insurer notice prior to expiry of the first period of forty five days or any subsequent period that may be agreed by the Insurer and subject to terms and conditions to be agreed prior to the expiry of the first period of thirty (30) days or such further period as may be agreed by the Insurer. COVER PERIOD This, subject to all its terms and conditions, covers Loss or Damage occurring during the period of insurance stated in the Schedule(s). If this is cancelled before its natural expiry date or is not renewed, cover will continue in respect of any Transit/Voyage which had commenced during the period of insurance until completion of each Transit/Voyage but only provided that no other insurance is in force in respect of such Transit/Voyage. CANCELLATION This contract may be cancelled by either You or the Insurer at any time by giving formal notice in writing as follows; Thirty (30) days notice in respect of general cancellation Seven (7) days notice in respect of risks covered by Institute War Clauses Seven (7) days notice in respect of risks covered by the Institute Strikes Clauses, but forty-eight (48) hours notice in respect of risks covered by the Institute Strikes Clauses on shipments to or from the United States of America Notice shall commence from midnight of the day when it is issued but cancellation shall not apply to any risks which have attached in accordance with the terms of this before the cancellation becomes effective. BASIS OF VALUATION In the Basis of Valuation as shown on the Schedule, the Cost element of the value of those Goods is; the purchase cost to You in respect of Goods being imported/purchased; but Your sale price to Your customer in respect of Goods being exported/sold. Notwithstanding the above, in the case of Goods customarily sold in bond, the Basis of Valuation is the gross value, being the wholesale price or, if there is no such price, the estimated value, with, in either case, freight, landing charges and duty paid beforehand. For the purposes of claims for General Average Contributions and Salvage Charges recoverable under the, Goods shall be deemed to be insured for their full contributory value. If We insure a value representing the payment of custom duties and other charges which would be incurred after discharge of Goods at the final port of discharge, and in the event of Loss or Damage to Goods before payment of duty and other charges so that You and/or the consignee is thereby relieved from payment of that duty or other charges in part or in whole, such amount of duty and charges thereby relieved will be deducted in arriving at Our liability. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 6 of 24

9 In the event of a rebate being granted by the appropriate authorities then: if such rebate is granted by the customs authorities after payment by the Insurer such amount of rebate will be remitted by You to the Insurer; or if a rebate is granted by the appropriate authorities prior to any payment by the Insurer the claim shall be reduced by the amount of such rebate. CARRIAGE OTHER THAN BY SEA CONVEYANCE Although the Transit/Voyage insured may not be of a maritime nature, the terms, conditions, Warranties and provisions of the Marine Insurance Act 1906 shall nevertheless apply to this insurance and to such Goods. CERTIFICATES Notwithstanding the conditions of this contract, it is agreed that certificates and/or policies of insurance may be issued hereunder to the Assured to comply with the insurance requirements of any letter of credit and/or sales contract concerned, provided the cover required is not wider than that provided under this. In the event that wider coverage is required, prior agreement of Underwriters is to be obtained at an additional premium to be agreed. If the conditions which appear on the certificate are wider than the conditions given by this wording or given by the Underwriters, the Assured remains liable for the difference between these conditions. CHANGE OF DESTINATION / DEVIATION / DELAY In case of voluntary change of destination and/or deviation and/or delay within the Assured's control, the Goods are held covered hereunder subject to the Assured reporting, as soon as possible, all such events to Underwriters. In case of short early discharge shipment in whole or part by the vessel reported for insurance hereunder, Underwriters agree to hold the Assured covered against the risks insured hereunder until arrival at the final destination to which the Goods are insured or until the Goods are no longer at the risk of the Assured, whichever may first occur. CLASSIFICATION All vessels used for sea transit must comply with the Institute Classification Clause (Clause 354). Any vessels that fall outside these provisions will be covered at rates to be agreed but must be declared to the Insurer as soon as information is received by You that any vessel used for sea transit does not comply with the provisions of the Institute Classification Clause. CRAFT AND/OR LIGHTERS Including transit by craft and/or lighter to and from the vessel. Each craft and/or lighter to be deemed a separate insurance. Also to cover any special or supplementary lighterage. The Assured are not to be prejudiced by any agreement exempting lightermen from liability. DEDUCTIBLE - GENERAL Subject to deductible(s) each and every loss as stipulated in the Deductibles section of the Schedule. DEDUCTIBLE - SPECIFIC Subject to any additional deductible(s) each and every loss as may be specified under the Endorsements and Warranties section of the Schedule, which shall override and/or be in addition to the Deductible - General. ERROR AND OMISSION This insurance is not to be prejudiced by any unintentional or inadvertent omission, error, incorrect valuation or incorrect description of interest, risk, vessel or voyage on declaration to the Insurer, provided that notice is given to the Insurer as soon as practicable on discovery of any such error or omission. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 7 of 24

10 GENERAL AVERAGE For the purpose of claims for General Average contributions and Salvage charges recoverable hereunder, the Goods shall be deemed to be insured for their full contributory value. HELD COVERED It is necessary for the Assured or their representatives or their agents, when they become aware of an event which is held covered under this insurance, to give prompt notice to the Insurers via their representatives or agents. BULK SHIPMENTS When property in bulk is stowed so as to be co-mingled with similar property belonging to others, Loss or Damage arising from an Insured Peril shall be apportioned between the party or parties involved in the shipment in accordance with their respective interest(s) in the same ratio as the property belonging to each party bears to the total quantity of the property stowed at the time and place of loss. LIMIT ACCUMULATION In the event of any accumulation of Goods during the ordinary course of transit which has arisen from circumstances beyond the control of the Assured We shall pay, in accordance with the Basis of Valuation, up to twice the Limit of Liability stated in the Schedule, provided You give the Insurer notice of any accumulation in excess of the Limit of Liability stated in the Schedule as soon as You become aware of it. NON CONTRIBUTION This insurance does not cover any loss or damage which at the time of happening of such Loss or Damage is insured by or would but for the existence of this, be insured by any other existing policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this Insurance not been effected. In the event that the Assured shall also have placed specific insurance at any location covered hereunder, this insurance shall only be held for the excess amount of loss over that which shall be collectible from other insurance. ON DECK SHIPMENTS Shipments on deck in fully enclosed or open top containers are insured subject to Institute Cargo Clauses (A) (Clause 382) in accordance with these Standard Conditions. Other shipments on deck are insured subject to the Institute Cargo Clauses (C) (Clause 384) extended to include the risks of washing overboard and theft or non-delivery of an entire consignment or full container, trailer or vehicle load. SECONDHAND GOODS This covers used and/or pre-used and/or second-hand Goods whilst in transit but excluding loss or damage caused by: rust, oxidisation, discolouration and corrosion breakage, scratching, denting, bruising, chipping, marring and cost of repainting twisting, bending and distortion unless attributable to the carrying Conveyance being involved in an accident or casualty. The sum recoverable under the shall not exceed such proportion of the cost of replacement of the part or parts lost or damaged as the Insured Value bears to the value of a new machine, plus the additional charges for forwarding and refitting the replacement part or parts if incurred, but in no case shall the Insurers liability exceed the Insured Value of Goods. It is a Condition Precedent to the Insurers liability under this extension that new spare parts are readily available. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 8 of 24

11 BASES OF PREMIUM DECLARATION PREMIUM Where the Schedule(s) states that the Premium is payable on a declaration basis, the Assured must provide to the Insurer declarations covering the specified period within forty five (45) days of the expiry of such period, along with the corresponding Premium calculated at the rates stated in the Schedule(s). Should the Assured not provide such declarations then the Insurer may at their option: cancel the by giving fifteen (15) days of notice to the Assured or make an estimate of the declarations which the Assured should have declared and assess premium on such estimate, and there shall be due and owing to the Insurer Premium based on that assessment, such premium being due to the Insurer within fourteen (14) days of notice. DEPOSIT PREMIUM The Deposit Premium is the sum fixed at inception for the purpose of commencing cover. Any Minimum Premium stated represents the lowest sum acceptable to the Insurer for the cover provided. If the is cancelled prior to the actual expiry the Insurer are entitled to retain at least the Minimum Premium. If the Schedule states that the Premium is subject to an adjustment, the Assured shall provide the Insurer with a declaration of all actual sendings made by the Assured within thirty (30) days of expiry of the period of insurance along with any additional premium due, calculated at the rates shown in the Schedule(s). Should the Assured not provide the Insurer with such declaration then the Insurer may make an estimate of the declaration which the Assured should have declared and assess premium on such estimate, and there shall be due and owing to the Insurer Premium based on that assessment, such premium being due to the Insurer within fourteen (14) days of notice. FLAT PREMIUM Where the Premium is stated in the Schedule as Flat this is a non-adjustable fixed amount based on the original declared estimated sendings or turnover and no return of premium will be made for any reason. The Assured warrants that if their turnover or the value of Goods insured under this should increase by more than 15% of the original estimate the Assured will tell the Insurer in writing in which case the Insurer may charge the Assured an additional premium assessed on the increased turnover or value of Goods shipped. PREMIUM - FOREIGN CURRENCY Certificates issued in accordance with the terms of this may be issued in foreign currencies, provided always that: losses are payable in the currency stated in the certificate; for the purposes of adjustment of claims, any rate of exchange shall be taken at the date of despatch of Goods; the Premium shall nonetheless be payable in GBP at the rate of exchange applicable on the last date of the declaration period or the date the Premium is adjusted. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 9 of 24

12 AUTOMATIC EXTENSIONS TO CONDITIONS ADDITIONAL DISCHARGE EXPENSES Subject to the terms, conditions and Warranties of the, in the event of Loss or Damage to Goods giving rise to a claim under the We shall pay to You any additional expense incurred by You in discharging, handling, storing, reloading or transporting sound and/or damaged Goods by any means other than the normal methods or other than at normal rates. We shall be credited with the recovery where such charges are recovered, either in General Average or from carriers. The Insurer s maximum liability under this clause shall not exceed 10% of the Agreed Value of Goods or GBP 15,000, whichever the lesser. AIR FREIGHT CHARGES In the event of Loss or Damage to Goods hereunder We shall pay the costs of either: returning by air freight Goods subject to Damage to manufacturers and/or suppliers for repair; supplying by air freight replacement Goods from manufacturers and/or suppliers to destination, notwithstanding the Goods subject to Loss or Damage were not originally despatched by air freight. Our Maximum liability under this extension shall be the lesser of either: GBP 15,000 25% of the Insured Value in respect of any one occurrence or series of occurrences arising out of any one event. BRANDS AND LABELS In the event that Goods are subject to Loss or Damage from an Insured Peril and the Goods either: bear embossed or indented brands or labels or any other permanent marking identifying You as manufacturer; or contain exclusive and/or secret formulae then You shall have full liberty to retain control of all such Goods. In such event You will have an option to either: destroy the Goods providing such destruction averts or minimises any loss recoverable under the ; or return the Goods to the manufacturing factory; or recondition the Goods and We will pay to You a total loss. We shall, however, be entitled to any salvage You might obtain where Goods are returned or reconditioned. CARGO ISM FORWARDING CHARGES - AMENDED The is extended to reimburse to You up to 15% of the Insured Value as per the Basis of Valuation subject to a Limit of Liability of GBP 75,000 for any extra charges properly and reasonably incurred in unloading, storing and forwarding Goods to the destination to which the Goods are insured following release of Goods from a vessel arrested or detained at or diverted to any other port or place (other than the intended port of destination) where the voyage is terminated due to either: such vessel not being certified in accordance with ISM Code, or; a current Document of Compliance not being held by the owners or operators as required under the SOLAS Convention 1974 as amended. It is a Condition Precedent to Insurers liability under this extension that: This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 10 of 24

13 You were not aware; nor in the ordinary course of business ought to have been aware that the vessel was not certified in accordance with the ISM code. This extension does not apply to General Average or Salvage Charges and is otherwise subject to all other Warranties, terms, conditions and exclusions contained in the. CARGO ISPS FORWARDING CHARGES - AMENDED The is extended to reimburse You up to 15% of the Insured Value as per the Basis of Valuation subject to a Limit of Liability of GBP 75,000 for any extra charges properly and reasonably incurred in unloading, storing and forwarding Goods to the destination to which the Goods are insured following release of Cargo from a vessel arrested or detained at or diverted to any other port or place (other than the intended port of destination) where the voyage is terminated due to such vessel not being certified in accordance with the ISPS Code as required under the SOLAS Convention 1974 as amended. It is a Condition Precedent to the Insurers liability under this extension that: You were not aware; nor in the ordinary course of business You ought not to have been aware that the vessel was not certified in accordance with the ISPS Code. This extension does not apply to General Average or Salvage Charges and is otherwise subject to all other Warranties, terms, conditions and exclusions contained in the. CONCEALED DAMAGE Any Loss or Damage discovered on opening containers, cases and/or packages shall be deemed to have occurred during the Transit/Voyage irrespective of the time of attachment of the Assureds interest in the Goods unless We provide evidence to the contrary. You warrant that: if any containers, cases, packages, or packaging shows any signs of damage at the time of arrival at final destination such containers, cases, packages are to be immediately unpacked and We are to be immediately notified of such signs of damage; and the time between delivery of Goods to destination and notification of any Loss or Damage to the Insurer will not exceed sixty (60) days. This clause will not apply where there is evidence of Loss or Damage occurring after either: the date of arrival at final destination; or termination of cover. DEBRIS REMOVAL If Goods are subject to Loss or Damage because of the operation of an Insured Peril We will pay the costs and expenses necessarily incurred by You in connection with: removing and disposing of the debris of any Goods; the transfer of Goods from one Conveyance to another in the event of an accident to the original Conveyance; Loss or Damage to Goods whilst being transferred. We shall not be liable for: any expense incurred in consequence of or to avert or mitigate pollution or contamination or any threat or liability thereof; and the cost or removal of any cargo from any vessel or craft. The Insurer s maximum liability under this clause shall not exceed 10% of the Insured Value of the Goods or GBP 15,000, whichever the lesser. This indemnity is in addition to the Limit of Liability shown in the Schedule. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 11 of 24

14 DECONSOLIDATION AND UNPACKING This is extended to cover, subject to its terms and conditions, Goods which have been or will be covered under this policy for the import or export voyage owned by the Assured or held by the Assured in trust or otherwise held or sold, or on joint account with or belonging to others, and for which the Assured can be liable while temporarily customs or elsewhere while awaiting shipment consolidation, repacking and other preparations for export or entry, including storage pending commencement of transit to final insured destination, for a period of not exceeding 30 (thirty) days. Held covered beyond 30 (thirty) days at premiums to be agreed. This extension of coverage shall not apply to Goods for which a charge has been made by the Assured or his agent for temporary storage. The insurance afforded by this endorsement shall be excess insurance over any other valid and collectable insurance available to the Assured. DELIBERATE DAMAGE POLLUTION HAZARD We will pay You for Loss or Damage to Goods directly caused by Governmental Authorities (acting for the public welfare) to prevent or mitigate a pollution, hazard or threat, provided a recoverable claim would have resulted under the (subject to all the 's terms, conditions and Warranties) had Goods been damaged as a result of the accident or occurrence which gave rise to the threat of pollution. FUMIGATION We will reimburse the cost of fumigating Goods, but excluding damage or depreciation caused by such fumigation except as provided in this clause. You warrant to the Insurer that there is no compulsory order in being or published at the time of the commencement of the Voyage / Transit requiring fumigation. We further agree that in the event of the Conveyance being fumigated by order of a properly constituted authority and Loss or Damage to Goods results, We will indemnify You for such Loss or Damage, and You agree to subrogate to the Insurer any recourse You may have for recovery of such Loss or Damage from others. The Insurer s maximum liability under this clause shall not exceed 10% of the Agreed Value of the Goods or GBP 15,000, whichever the lesser. LABELS In the event of Loss or Damage affecting labels, capsules, wrappers or packaging of Goods by an Insured Peril, Insurers liability will not exceed the cost of new labels, capsules, wrappers or packaging and the cost of relabelling and packaging and reconditioning the Goods, but in no event shall the Insurers be liable for more than the Insured Value of the damaged Goods. INSOLVENCY EXCLUSION - AMENDED The exclusion of loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel or aircraft (as applicable) contained within the Institute Clauses incorporated herein is amended to read loss damage or expense proximately caused by insolvency or financial default of the owners managers charterers or operators of the vessel or aircraft. But, in any event, such exclusion shall not apply where; prior to loading of the Goods on board the vessel or aircraft, all reasonable practicable and prudent measures have been taken by the Assured, their servants or agents, to establish the financial reliability of the party in default; or the insurance has been assigned to the party claiming hereunder, who has bought or agreed to buy the Goods in good faith and without notice of such insolvency or financial default; or the Assured has purchased the Goods on terms under which the supplier or their servants or agents have been responsible for arranging the carriage. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 12 of 24

15 PACKING Packing is to be sufficient to protect the Goods against hazards that may be encountered during Transit/Voyage taking into account: the susceptibility of the Goods to damage; the route employed; the time of year the Goods are despatched. In the event of a claim being made for Loss or Damage which is alleged to have been caused by insufficiency or unsuitability of packing or preparation of Goods for the Transit/Voyage We will not use such alleged insufficiency as a defence for any claim in any case where packing or preparation was carried out by a party other than the Assured and the insufficiency or unsuitability arose entirely without their privity or knowledge. For the purpose of this waiver, packing shall be deemed to include stowage in a container or other similar intermodal method of unit load. You warrant to assist the Insurer in all respects to pursue rights of recovery against sellers or any other responsible third party. This extension does not interfere with any rights of subrogation against packers and/or their insurers. SEGREGATION AND SORTING COSTS In the event of external signs of Loss or Damage to Goods resulting from an Insured Peril necessitating segregation and/or sorting then We shall pay for the reasonable costs incurred by You on both undamaged and damaged packages, subject to conditions. We will extend the to cover periods in excess of those provided under the Institute Clauses, to allow for segregation and/or sorting prior to delivery at the final destination but not beyond the expiry date of this as stated in the Schedule. RETURNED SHIPMENTS In the event that Goods insured under this are rejected or returned for any reason other than for refurbishment, reconditioning or repair, We will cover the Goods subject to the Warranties and other terms of this continuously until terminated either: on the expiry of sixty (60) days starting on the day of arrival at the consignees or other warehouse or place of storage outside the ordinary course of transit; on completion of delivery to an alternative buyer's premises or return to the original consignee's premises or other nominated destination or until finally disposed of by You; whichever shall first occur. You warrant that You will report to the Insurer all rejections and/or returned shipments immediately after You have knowledge of such return and/or rejection but not later than thirty (30) days after arrival of Goods at the final port of discharge. All such Goods rejected and/or returned and declared under this for this clause will be subject to a Premium to be agreed for each Declaration. If the outward journey was not insured under this or where the cover provided by this has not been continuous then it is agreed that shipments under this clause are held covered subject to the terms and conditions of the Institute Cargo Clauses (B) (Clause 383) including jettison and washing overboard and the Institute War and Institute Strikes Clauses at rates to be agreed. WAREHOUSING / FORWARDING CHARGES Provided that a claim is recoverable from Underwriters and notwithstanding any average warranty contained herein, Underwriters agree to pay any landing, warehousing, forwarding or other expenses and/or particular charges should same be incurred, as well as any partial loss arising from transhipment. Also to pay the Insured Value of any package, piece or unit totally lost in loading, transhipment and/or discharge. Also to pay for any Loss or Damage to the Goods which may be reasonably attributed to discharge of cargo at port of distress. This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 13 of 24

16 OPTIONAL EXTENSIONS TO CONDITIONS The following clauses only apply to the if We have noted and specifically covered them by reason of the inclusion of a relevant Basis of Valuation, Deductible, Transit/Voyage and/or Limit of Liability on the Schedule(s) or by Endorsement and apply subject to the applicable terms, conditions and exclusions of the. CONSEQUENTIAL LOSS The is extended to indemnify You for consequential loss incurred by You as a direct result of Loss or Damage to Goods recoverable under this as a result of delay to the Goods whilst in transit caused by the carrying vessel or Conveyance suffering Loss or Damage from: fire or explosion stranding, grounding, capsizing or sinking overturning or derailment of land Conveyance collision or contact of vessel, craft or Conveyance with any external object other than water general average sacrifice delay in delivery due to closure of any transport route following accident, fire, flood or act of God This extension does not cover: any pecuniary penalties imposed under contract any claim for loss of future orders unless such are the subject of a confirmed written contract which predates the incident giving rise to the claim This extension provides up to a maximum indemnity of GBP 25,000 each and every loss and in the aggregate in any period and subject to a deductible of GBP 500 each and every loss. CONTINGENT INTEREST - BUYERS We will insure Goods and the interest You may acquire in Goods if it attaches after the commencement of Transit/Voyage and We will regard the cover as attaching at the commencement of the Transit/Voyage. We will be subrogated to all Your rights against Your supplier or supplier's insurers or third parties. It is a Condition Precedent to the Insurers liability under this clause that: there is Loss or Damage to Goods; or You have suffered a pecuniary loss; and You have taken all reasonable steps to invoke the contract of sale and the responsibilities thereunder and have attempted to recover from seller and/or seller's insurers any pecuniary loss that You have suffered by reason of Loss or Damage to Goods from an Insured Peril arising during the currency of this ; and You have not divulged the existence of this insurance to the seller or the seller's insurers. If We pay to You any claim, You hereby subrogate to the Insurer all Your rights and recourse and We shall have all rights to sue or proceed in any way against Your seller or Your seller's insurers either in Your own name or Our name. CONTINGENT INTEREST - SELLERS The is extended to cover the contingent interest of You being unpaid where the contract of sale does not place upon You responsibility for insurance up to arrival of the overseas vessel at the intended port of discharge and Goods being subject to Loss or Damage. We agree to insure You under the terms, conditions and Warranties of the for Loss or Damage to Goods, Salvage and General Average Charges from the commencement of the Transit/Voyage in the event of ownership and/or responsibility for the Goods remaining with You or reverting to You and Your buyer not paying You for the Goods, even if at the time of such reversion Goods have already sustained Loss or Damage. We will only insure Goods under this extension on the happening of the following events: This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 14 of 24

17 the buyer failing, refusing to accept or being prevented from accepting the Goods or the documents therefore; or You exercising a right of lien on Goods, or interrupting their transit, or suspending the sale contract whilst Goods are in transit when it is reasonable for You to do so to safeguard Your interest. In the event of any delay or deviation caused by the failure of the buyer to take up Goods or documents, We will hold Goods covered subject to an additional Premium to be arranged, subject to You giving the Insurer prompt notice of any such delay or deviation. It is warranted that You will notify Us immediately when You become aware of any event that might give rise to a claim under this extension. All rights and benefits of any action which You may possess or acquire against the buyer and/or the buyer's insurers and/or carriers and/or other persons, are to be subrogated to the Insurer and it is a Warranty of this that You will not do anything to affect any subrogation right. You Warrant to the Insurer that You: will take all reasonable steps to protect Goods; or will enforce the sale contract or if this is not possible to expedite the sale of Goods to another party or their return to the seller, will not disclose this extension to any other interested party; will not assign the benefit of this extension. EXHIBITIONS The is extended to cover Goods including stands, fixtures, fittings and exhibition equipment, if required, whilst in Transit/Voyage to and from and at exhibitions and trade fairs including unpacking, assembly, whilst at the event site, dismantling and repacking all for a period not exceeding thirty (30) days. This extension does not cover: Loss or Damage to LCD or plasma screens, computers, audio/visual transmission or distribution equipment and mobile telephones unless We have agreed to insure such items in the Schedule. Loss or Damage caused by wear, tear, depreciation, deterioration, mildew, moss, vermin, or inherent defect faulty assembly or construction Loss or Damage to Goods in or on: any vehicle owned or operated by You or any employee or agent when left unattended; any vehicle which is being used for social, domestic, or pleasure purposes; open vehicles owned or operated by You caused by atmospheric or climatic conditions which are not protected by vehicle sheets; Loss or Damage caused by or arising from atmospheric, climatic or weather conditions in respect of exhibitions held in the open or in marquees or in tents; theft of goods or malicious acts: as a result of the confiscation requisition seizure or destruction by government or public authority; during the opening hours of the event unless the stand is attended by You or a representative at all times; outside exhibition hours unless the exhibition premises or site is controlled by security personnel. It is a warranty that any Goods exhibited will be repacked to no less than the same standard as was used for the outward journey and that repacking is supervised by You. This extension also provides coverage to indemnify You for the following exhibition expenses, up to a maximum of GBP 5,000 in respect of any one exhibition and GBP 10,000 in the aggregate in any period and subject to a Deductible of GBP 500 each and every claim:- Loss of expenses due to abandonment of the exhibition, indemnifying the exhibitor for the loss of net ascertained expenses, costs and/or commitments sustained or incurred in the event of the exhibition This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 15 of 24

18 being cancelled, postponed, curtailed or abandoned due to any cause beyond the control of the organisers but excluding political and financial causes or lack of support or adverse weather conditions. Additionally to cover loss of expenses due to: non-arrival of the goods insured late arrival of the goods insured arrival of the goods insured in a state unfit for exhibition arising from a peril recoverable under the Institute Cargo Clauses (A) (Clause 382) or the Institute Cargo Clauses (Air) (Clause 387) or following a casualty to the ocean vessel (including breakdown of machinery) which would be recoverable under the Institute Voyage Clauses Hulls (Clause ). Cover to attach and cease in accordance with the Institute Cargo Clauses (A) (Clause 382) i.e. cover to cease on arrival at the exhibition premises. Exhibition expenses means expenditure directly incurred in connection with the exhibition including advertising, printing, stationery, insurance premiums, charges for space and services, hire of stands, transport charges, cost of installing stands, fittings, exhibits and accommodation deposits. INSTALLATION RISKS The is extended to cover Goods during installation, siting and positioning operations provided You are contractually obliged to arrange such. Cover is extended for the period between delivery at the intended destination until the completion of installation operations but not exceeding thirty (30) days. This extension does not cover; Loss or Damage caused by theft or attempted theft from an inadequately secured site caused by faulty assembly or construction caused by heating or frost arising from any craneage operation unless such operation has been agreed by the Insurer prior to commencement of risk arising from mechanical, electrical or manual operation of the Goods insured for demonstration or other purposes arising from the use or application of heat or flame occasioned during any process other than siting, securing or connection occurring after completion of any contractual obligation to site, position, or install the Goods insured arising from wrongful siting, positioning or installation chipping, denting, scratching on unpacked or unprotected items wear, tear, depreciation, deterioration, mildew, moss, vermin, or inherent defect consequential loss of whatsoever nature. An excess of 5% or GBP 500 whichever is the greater will apply to each loss unless otherwise stated in the Schedule. It is a Condition Precedent to the Insurer s liability for Loss or Damage to the Goods during siting, positioning or installation that operations are supervised at all times by a professionally qualified engineer or equivalent. OWN VEHICLES We shall only be liable for any Loss or Damage caused by theft or malicious act or from any attempted theft or attempted malicious act whilst Goods are on, or contained in, any unattended Conveyance owned or operated by You, if the following security requirements are complied with: all doors, windows and other openings must be left closed, securely locked and properly fastened any vehicle(s) left unattended between the hours or and must be either garaged in a building which is securely closed and locked or parked in a compound secured by locked gates This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 16 of 24

19 steering column lock, immobiliser and alarm, where fitted, must be in efficient working order and duly operated Goods contained in any vehicle(s) must be removed from view whenever possible. In the event that the requirement for vehicle attendance is not complied with then any claim otherwise due shall be reduced by 10% or GBP 500, whichever the greater, and You shall co-insure for the balance. STORAGE This is extended to cover Goods in store outside the ordinary course of transit whilst at the address(es) detailed in the Schedule. It is a Condition Precedent to the Insurer s liability under this extension that: the premises are protected by an intruder alarm subject to BT Redcare protection or such other protection as may be agreed by the Insurer in writing; the intruder alarm together with all connections to BT Redcare or such other protection as may be agreed by the Insurer in writing are kept in full working order; whenever the premises are closed for business or left unattended the intruder alarm will be fully operational, properly maintained and fully set to protect them; You will keep in force for the period of insurance stated in the Schedule a maintenance contract for the intruder alarm with a maintenance company agreed by the Insurer (National Security Inspectorate registered or equivalent); You will not alter the intruder alarm without first obtaining the Insurer s permission; if any defect in the intruder alarm is discovered or the police withdraw their services You will: immediately notify the Insurer when We will have the option of immediately cancelling this insurance on the Goods stored in the premises; and not leave the premises unattended without the Insurer s prior consent; and put into effect the additional temporary safeguards when required; and give immediate instructions to the maintenance company to carry out necessary repairs, You will notify the Insurer immediately in the event of: You have received notification from the police that they have withdrawn, will withdraw, or are considering withdrawal of response to alarm calls; or failure of the telecommunication lines used to transmit alarm signals from the premises occurs, all locks, padlocks and all other protections provided for the security of the premises shall be put into full and effective operation at all times when the premises are closed for business and all other appropriate times, and that all stock is and will be kept at least fifteen centimetres above the floor level. This extension does not cover: Loss or Damage due to theft, malicious act or attempt thereat unless there is evidence of forcible and violent entry to or exit from the premises; mysterious disappearance, unexplained or inventory shortage STORAGE TERRORISM EXTENSION The is extended to cover Loss or Damage to Goods whilst at the address(es) detailed in the Schedule, situated in the United Kingdom other than Northern Ireland (meaning England and Wales and Scotland but not the territorial seas adjacent thereto as defined by the Territorial Sea Act 1987) and, where specifically insured under this, consequential loss arising from business interruption caused by an Act of Terrorism (as defined herein) certified as such by Her Majesty s Government or Her Majesty s Treasury or any successor or other relevant authority. This extension does not provide indemnity in respect of any claim of whatsoever nature directly or indirectly caused by or occasioned by or happening through or in consequence of: This Wording must to be read In conjunction with the relevant TT Club - Owners Cargo Page: 17 of 24