Open Cargo insurance policy

Transcription

1 Open Cargo Open Cargo insurance policy registered in England & Wales number with registered office at 100 Leadenhall Street, London EC3A 3BP. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Full details can be found online at

2 Contents Page Introduction 4 General Insuring Agreement 4 Definitions 4 1. Clause Paramount 4 Principal Conditions 4 2. Automatic Clauses 4 Accumulation (Marine and Transit only) 4 Aircraft 4 Additional Discharge Expenses 4 Brands 5 Cancellation 5 Cargo ISM Endorsement (98/019 1 May 1998) 5 Cargo ISM Forwarding Charges 5 Certificates of Insurance 6 Civil Authority 6 Claused Bills of Lading 6 Concealed Damage 6 Container 6 Damage Claim Repairs 6 Debris Removal 6 Declarations 6 Deductible 6 Deliberate Damage - Pollution Hazard 6 Duty 7 Electrical, Electronic, Electromagnetic and Mechanical Derangement 7 Errors and Omissions 7 Exhibition Risks 7 Extension of Voyage 7 Failure to Notify Loss 7 Fitness of Container 7 Fumigation 7 General Average 8 Goods Purchased by the Assured on FOB, CFR or Similar Terms 8 Goods Purchased by the Assured on CIF Terms 8 Insolvency Exclusion 8 Interpretation 8 Labels 8 Letter of Credit 8 Liability of Carrier 8 Lost Goods 9 Non-Delivery Losses 9 No Survey 9 UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 2 of 13

3 Notification of Loss 9 Owned or Operated Vehicle(s) Security Requirements 9 Packing 9 Payment on Account 9 Process 9 Re-Packing 10 Replacements by Air 10 Returned Shipments 10 Ropes and Sheets (Owned or Operated Vehicles) 10 Sanctions 10 Seals Intact 10 Seller's Interest in Respect of Shipments Sold by the Assured on FOB, CFR or Similar Terms 10 Shipping Expenses 10 Termination of Transit (Terrorism) JC2001/ Testing, Sorting and Segregation 11 Used or Unpacked or Damaged Goods 11 Unknown Loss 11 Unseaworthiness and Unfitness 11 Voyage Standard Conditions For Cargo Contracts Important Information And Duty Of Disclosure Claims Procedures Complaint Procedures 13 UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 3 of 13

4 Introduction This is a Chubb open cargo insurance policy ( the Policy ) Please read the entire Policy carefully. All parts of this Policy, including the Policy schedule ( the Schedule ) and any endorsements, should be read together and considered as one contract. General Insuring Agreement In consideration of payment of the premium, and subject to the terms and conditions of this Policy, the Company and the Assured agree that the Company will provide insurance cover in the terms set out herein. Definitions Assured means the entity identified as such in the Schedule. Company means. Limit of Liability means the limit or limits of liability stated in the Schedule. Period of Insurance means the period of time stated in the Schedule. 1. Clause Paramount Anything contained in the Institute Clauses referred to herein that is inconsistent with the following Clauses and Conditions shall, to the extent of such inconsistency, be null and void. This Clause Paramount shall not serve to override the Duration Clause in the Institute War Clauses. Principal Conditions 1. Institute Cargo Clauses (A) CL252 dated Institute Cargo Clauses (Air) CL259 dated Including War etc., risks subject to the relevant Institute War Clauses dated , the limitations therein prevailing notwithstanding any provision whether written, typed or printed in the Policy inconsistent therewith. 4. Institute War Clauses (Sendings by Post) CL257 dated Institute Strikes Clauses (Air Cargo) CL260 dated Institute Classification Clause CL354 dated Institute Radioactive Contamination, Chemical, Biological, Biochemical and Electromagnetic Weapons Exclusion Clause CL370 dated Institute Cyber Attack Exclusion Clause CL380 dated Institute Replacement Clause CL , amended to allow the Assured the option of forwarding replacement by sea or air. 11. This Policy covers shipments both on deck or under deck, including jettison, washing and loss overboard. 2. Automatic Clauses Accumulation (Marine and Transit only) Should there be an accumulation of the Subject Matter Insured whilst in transit beyond the limits expressed in the Policy by reason of any interruption of transit and/or occurrence beyond the control of the Assured, or by reason of any casualty at a transhipping point and/or on connecting conveyance, this Policy shall attach for the full amount at risk, but in no event for more than twice the Policy limit provided notice be given to the Company as soon as practicable by the Assured of such accumulation. Aircraft Wherever the words "ship", "vessel", "seaworthiness", "ship owner" or "vessel owner" appear in this Policy, they are deemed to include also the words "aircraft", "airworthiness" and "aircraft owner". Additional Discharge Expenses In the event of damage to the Subject Matter Insured giving rise to a claim hereunder the Company shall pay any additional expenses reasonably incurred by the Assured in discharging, handling, sorting, reloading or transporting sound and/or damaged goods by any means other than the normal methods or other than at normal cost. The Company to be credited with the recovery where such charges are recovered either in general average or from the carriers. 5. Institute Strikes Clauses (Cargo) CL256 dated UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 4 of 13

5 Brands The Assured shall have full rights of possession of all goods bearing embossed or indented brands or labels or other permanent markings identifying the manufacturer and/or distributor and/or supplier thereof, or the sale of which carries or implies a guarantee of the supplier or of the Assured or exclusive and/or secret formula(e) that may be involved in any loss hereunder, and shall retain control of all such goods. On shipments covered under this Policy, the Company is to pay a total loss on any and all goods and/or containers damaged by perils insured against, which the Assured elects to either destroy or return or re-condition, the Company being entitled to such salvage as may be obtained. The Assured exercising reasonable care shall be the sole judge as to whether the goods involved in any loss, damage or deterioration or which have been stolen and recovered in sound condition are suitable for use in any manufacturing process and/or marketing and no goods deemed by the Assured to be unfit for manufacturing and/or marketing shall be sold or otherwise disposed of except by the Assured or with their consent, but the Assured shall allow any salvage obtained on any sale or other disposition of such goods. Cancellation The inclusion in this Policy of war risks may be cancelled by either the Company or the Assured giving seven (7) days' notice. The inclusion in this Policy of strikes, riots, civil commotions and malicious damage etc. risks may be cancelled by either the Company or the Assured giving seven (7) days' notice other than for shipments or sendings to or from the USA, where forty-eight (48) hours' notice shall be given. Except as above, this Policy may be cancelled by either the Company or the Assured giving sixty (60) days' notice. Cancellation shall become effective on the expiry of the appropriate number of days from midnight of the day on which notice of cancellation is issued by or to the Company but shall not apply to any transit insurance which shall have been declared or attached in accordance with the Policy terms and conditions before the cancellation becomes effective. Cargo ISM Endorsement (98/019 1 May 1998) 1. Applicable to shipments on board Ro-Ro passenger ferries. 2. Applicable with effect from 1 July 1998 to shipments on board: a) passenger vessels transporting more than twelve (12) passengers; and b) oil tankers, chemical tankers, gas carriers, bulk carriers and cargo high speed craft of 500 gt or more. 3. Applicable with effect from 1 July 2002 to shipments on board all other cargo ships and mobile offshore drilling units of 500 gt or more. In no case shall this Policy cover loss, damage or expense where the Subject Matter Insured is carried by a vessel that is not ISM Code certified or whose owners or operators do not hold an ISM Code Document of Compliance when, at the time of loading of the Subject Matter Insured on board the vessel, the Assured were aware, or in the ordinary course of business should have been aware: 1. either that such vessel was not certified in accordance with the ISM Code; or 2. that a current ISM Code Document of Compliance was not held by her owners or operators as required under the SOLAS Convention 1974 as amended. This exclusion shall not apply where this Policy has been assigned to the party claiming hereunder who has bought or agreed to buy the Subject Matter Insured in good faith under a binding contract. Cargo ISM Forwarding Charges This Policy is extended to reimburse the Assured, up to the limit of the sum insured for the Voyage, for any extra charges properly and reasonably incurred in unloading, storing and forwarding the Subject Matter Insured to the destination to which it is insured hereunder 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 either to: 1. such vessel not being certified in accordance with the ISM Code; or 2. a current ISM Code Document of Compliance not being held by her owners or operators as required under the SOLAS Convention 1974 as amended. This clause, which does not apply to General Average or Salvage or Salvage Charges, is subject to all other terms, conditions and exclusions contained in the Policy and to JCC Cargo ISM Endorsement JC 98/019. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 5 of 13

6 Certificates of Insurance The Company agrees to issue Certificates of Insurance as required and to bear the fees and costs thereof. Civil Authority Notwithstanding anything contained in this Policy, it is understood and agreed that Subject Matter Insured which is insured under this Policy is also covered against the risk of damage or destruction by civil or military authority during a conflagration or for the purpose of retarding the same; provided that neither such conflagration nor such damages or destruction is caused or contributed to by war perils elsewhere excluded herein. Claused Bills of Lading The Policy is not to be prejudiced solely by reason of the marking of the Bill of Lading (or like document) with a clause indicating items insufficiently packed. Concealed Damage Loss or damage discovered on opening of containers, cases and/or packages shall be deemed to have occurred during the Period of Insurance (and irrespective of attachment of the Assured s interest) and shall be paid for accordingly unless proof conclusive to the contrary be established, it being understood that any containers, cases and/or packages showing visible signs of damage must be opened immediately on cessation of the risk hereunder. This clause shall however only apply where such loss or damage is discovered within ninety (90) days of cessation of risk hereunder. Container The fitness of shipping containers for the safe carriage of the Subject Matter Insured is admitted as between the Assured and the Company. Damage Claim Repairs In respect of damage claims recoverable hereunder where the Assured is appointed to effect repairs on behalf of the Company it is agreed that such repair costs shall be based on the Assured s normal commercial rate for such repairs including the Assured s normal element of profit. Debris Removal It is agreed that subject to the operation of an insured peril, the Company will pay costs and expenses reasonably incurred by the Assured in connection with: 1. removal of debris and/or destruction of damaged goods; and 2. the transfer of items covered hereunder from one conveyance to another in the event of an accident to the original conveyance which results in loss of or damage to such items which is recoverable hereunder. The indemnity provided by this clause shall be in addition to the indemnity provided elsewhere herein but limited to a further 20% of the insured value of the shipment. Declarations It is a condition of this insurance that the Assured is bound to declare to the Company, as soon as practicable after becoming known to the Assured (unless otherwise agreed) all shipments coming within the terms hereon, whether arrived or not and the Company being bound to accept same. Deductible All claims for loss, damage or expense resulting from any one occurrence or series of occurrences arising out of one event, shall be adjusted as one claim and from the amount of such adjusted claim there will be a deductible as specified in the Schedule. Notwithstanding the foregoing, claims recoverable under the Institute Cargo Clauses (C), the Institute War Clauses, the Institute Strikes Clauses, the Removal of Debris Clause and claims for Sue and Labour Charges shall be payable in full. Where a recovery is obtained from a carrier or other third party, such recovery shall be apportioned between the Assured and the Company in the same proportion as the respective parties hereto have borne the loss. Deliberate Damage - Pollution Hazard This Policy is extended to cover loss of or damage to the Subject Matter Insured directly caused by governmental authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the situation which required such governmental action is an insured peril hereunder. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 6 of 13

7 Duty Increased value by reason of payment of duty and/or levy is covered hereunder subject to the same conditions as are, or would be applicable to the insurance on cargo hereunder and to pay on the same basis as such insurance cover but excluding: 1. total loss, or total loss or part arising prior to duty and/or levy becoming payable and resulting in non-payment of duty and/or levy. 2. liability for general average contributions and salvage charges unless the occurrence giving rise to the general average occurs after duty and/or levy becomes payable. This Policy also covers the Assured's liability for the payment of duty or other levies following loss of or damage to the Subject Matter Insured interest recoverable hereunder, to the Authority of any country through which the interest may pass including the country of origin prior to delivery to the consignee. No claim to attach hereto for duty payable in the country of destination unless such duty amount is declared within the sum insured hereunder. Electrical, Electronic, Electromagnetic and Mechanical Derangement The Policy is extended to include electrical, electronic, electro magnetic and mechanical derangement of the Subject Matter Insured provided there is evidence of impact to the container or packing or carrying conveyance during the Voyage. Errors and Omissions The insurance hereunder is not to be prejudiced by any unintentional or inadvertent omission, error, incorrect valuation or incorrect description of the interest, risk, vessel or Voyage, provided notice is given to the Company as soon as practicable on discovery of any such error or omission. The insurance shall not be affected by the failure of the original Assured to comply with any of the warranties or conditions over which they have no control. Exhibition Risks This insurance covers property in transit to/from and whilst at exhibition, trade fair or show premises. Subject to the following exclusions:- 1. loss or damage arising directly from demonstration, use or testing of equipment. 2. wear, tear and gradual deterioration. 3. liability to third parties. 4. damage to goods being returned from exhibitions unless they are packed to the same standard as for the outward journey, such packing to be supervised by a responsible official of the Assured. 5. theft from unattended stand during exhibition opening hours. 6. theft unless following forcible or violent entry/exit from exhibition or other premises outside exhibition opening hours. In the event of goods being sold from the exhibition, cover is to terminate at the time of lifting for removal from the exhibition premises unless specially agreed. Extension of Voyage It is further agreed to include declarations covering Voyage extensions, storage, or any other variations to original policies arranged elsewhere. Such extensions are held covered at rates and conditions to be agreed, pending the prompt receipt of the relevant details. Failure to Notify Loss Failure of the Assured s customer or other interested parties to notify loss or damage and lodge claims on carriers or other responsible parties within the time limits allowed shall not prejudice the Assured's rights of full recovery under this Policy. Fitness of Container The Assured's right to indemnity hereunder shall not be prejudiced by an inadvertent omission to establish the fitness of a container or liftvan for the safe transit of the interest insured hereunder, where such container or liftvan is provided by a third party. Fumigation In the event of loss or damage to the Subject Matter Insured caused by fumigation, the Company agrees to indemnify the Assured for such loss or damage, and the Assured hereby agrees to subrogate to the Company any recourse they may have for recovery of such loss or damage from others, but this clause does not extend to cover loss or damage caused by customary fumigation applied prior to or at the inception of this Policy. Claims shall be payable irrespective of whether actual contamination or infestation has been UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 7 of 13

8 identified as being in existence, subject to a limit of GBP 50,000 any one claim. General Average This Policy covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice (or, if there is no contract of affreightment, according to York-Antwerp Rules) incurred to avoid or in connection with the avoidance of loss from any cause except those specifically excluded herefrom. For the purpose of claims for general average contributions and salvage charges recoverable hereunder, the Subject Matter Insured shall be deemed to be insured for its full contributory value. General average deposits shall be payable on production of general average deposit receipts. Goods Purchased by the Assured on FOB, CFR or Similar Terms Notwithstanding that the Subject Matter Insured may have been purchased on FOB, CFR or similar terms, the Company's risk and its liability to the Assured commences from the time the goods leave the suppliers' factory, warehouse, store or mill as if the contract of sale was "ex suppliers' premises". The Company are to be subrogated to the Assured's rights of recourse against the suppliers or other parties. Goods Purchased by the Assured on CIF Terms Where goods are purchased CIF and the supplier fails to effect insurance or effects an insurance which is subsequently rendered inoperative or which is more restricted than the protection afforded hereunder, such goods shall be covered hereunder on the normal cover conditions. In such cases, the Company is to be subrogated to all rights and remedies of the Assured against the supplier and/or the supplier's insurers and/or other parties. Insolvency Exclusion 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 is deleted and replaced by the following: In no case shall this Policy cover loss, damage or expense caused by insolvency or financial default of the owners, managers, charterers or operators of the vessel or aircraft, where at the time of loading of the Subject Matter Insured on board the vessel or aircraft, the Assured are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the Voyage or air transit. This exclusion shall not apply where this Policy has been assigned to the party claiming hereunder who has bought or agreed to buy the Subject Matter Insured in good faith under a binding contract. Interpretation This Policy is subject to interpretation in accordance with English law and practice. Labels In the event that labels or wrappers that identify the nature of the Subject Matter Insured are damaged, defaced, destroyed or lost irrespective of whether or not the contents are damaged then this Policy will indemnify the Assured for the cost of new labels or wrappers, but in no case shall the Company be liable for an amount greater than the insured value. If it is not possible to identify the contents of containers, the labels or wrappers on which have been damaged, defaced, destroyed or lost then the Subject Matter Insured is to be deemed a constructive total loss and the claim settled accordingly. Letter of Credit Notwithstanding the conditions of this Policy it is agreed that certificates and/or policies may be issued hereunder to enable the Assured to comply with the insurance requirements of any Letter of Credit and/or sales contract concerned, such agreement being conditional on the payment of any additional premium which may be required in the event that the cover required is wider than that provided by this Policy. It is also agreed that regardless of the conditions on which any certificates and/or policies may be issued pursuant to the foregoing, the Assured named herein shall continue to enjoy the full protection of this Policy. Liability of Carrier Where any loss is to be settled without reference to liability or non-liability of the carrier and/or bailee, the Assured shall transfer all rights against the carrier and/or bailee to the Company. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 8 of 13

9 Lost Goods In the event of a conveyance carrying cargo insured under this Policy failing for reasons unknown to arrive at its destination within six (6) weeks of the expected time of arrival and subject to prompt advice to the Company as soon as the Assured becomes aware of the non-arrival of the carrying conveyance, the Company hereon agrees to settle immediately a total loss, in the form of an interest free loan, subject to the Assured retaining title to the goods. The Company to be subrogated to all rights and remedies of the Assured upon such payment. Non-Delivery Losses In the event of a claim for non-delivery of the Subject Matter Insured hereunder and after the Assured has taken all reasonable steps to locate the cargo, the Company agrees that it shall make settlements to the Assured if the cargo has not been located after the expiration of ninety (90) days counting from the date of arrival of the overseas vessel at the port of discharge or sixty (60) days counting from the date of arrival of the aircraft at the airport of discharge or ninety (90) days counting from the date the goods should have arrived at final destination via land conveyances as applicable. No Survey No survey report is required for any claim that does not or appears unlikely on first notification to exceed GBP 2,500 (or equivalent in any other currency) in excess of the relevant deductible as specified in the Schedule, if any. The Assured's or consignee's statement of the loss and, where applicable and available, the customs and/or landing account to be accepted as sufficient proof of loss. Notification of Loss In the event of loss or damage which may result in a claim hereunder, immediate notice must be given to: 1. the Company; or 2. where a "Claims Payable Abroad certificate or policy has been issued, the appropriate claims settling agent abroad. Owned or Operated Vehicle(s) Security Requirements All points of access to vehicles the property of the Assured and/or those within custody and/or control are securely locked and closed and the ignition keys removed from the vehicle whenever left loaded or unattended (so far as ferry and/or local fire regulations permit). All protective devices including alarms and immobilisers, are to be in working order and put into operation whenever a vehicle is left loaded and unattended. Goods to be placed in the boot of the vehicle or covered over in estates hatchbacks. In respect of theft from loaded and unattended vehicles the property of the Assured or for which they are responsible and/or within their care, custody or control, cover shall remain in full force, so long as between the hours of 21:00 to 06:00: 1. the vehicle is either garaged in a building which is securely closed and locked; 2. in a locked compound surrounded by adequate walls and/or fences; or 3. in a permanently manned vehicle compound. Should the Assured not be able to comply with the above, a 20% co-insurance shall apply in the event of loss. Excluding theft unless following forcible and/or violent entry into the vehicle(s). Packing In the event of a claim being made for loss or damage which is alleged to be caused by insufficiency or unsuitability of packing or preparation of the goods insured, the Company hereby agrees that they will not use such alleged insufficiency or unsuitability as a defence against the claim in any case where the packing or preparation was carried out by a party other than the Assured and the insufficiency or unsuitability arose entirely without the Assured's privity or knowledge. For the purpose of this clause "packing" shall be deemed to include stowage in a container and/or other similar inter-modal methods of unit load. Payment on Account Where the recoverability of a claim has been demonstrated and the only outstanding issue is the quantum of the loss, the Company agrees to make a payment on account equal to 75% of the lower amount in discussion. Process This Policy remains in full force whilst the Subject Matter Insured is under any process but in no case shall extend to cover damage thereto solely caused by such process. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 9 of 13

10 Re-Packing It is understood and agreed that should packing be damaged from any peril insured against irrespective of the final destination shown herein, the Company shall pay the cost of re-packing expenses and materials provided such damage occurred during the Period of Insurance, irrespective of whether the Subject Matter Insured has sustained damage. Replacements by Air In the event of loss or damage to the Subject Matter Insured occasioned by a peril insured against, the Assured may at their option forward replacements by airfreight and the Company agrees to indemnify the Assured for the reasonable cost thereof subject to a maximum of GBP 50,000 any one loss. Returned Shipments Shipments, delivery of which to the Assured and/or consignee cannot be accomplished because of refusal of acceptance and which are returned for this or any other reason, are held covered while at risk of the Assured until sold or otherwise disposed of, subject to terms and conditions of this Policy. Ropes and Sheets (Owned or Operated Vehicles) The Company will indemnify the Assured subject to the Policy terms against loss or destruction of or damage to sheets, ropes, chains, toggles and dunnage. Nevertheless, the Company shall not be liable in respect of: 1. the first GBP 100 of each and every claim. 2. more than GBP 2,500 in respect of any one vehicle. 3. loss, destruction or damage caused by or arising from wear and tear or gradual deterioration. 4. loss, destruction or damage unless caused by a peril insured by this Policy. Sanctions No coverage or benefit shall be provided and no sum shall be payable under this Policy to the extent that providing it or paying it would directly or indirectly put the Company or its ultimate parent company in breach of any applicable or economic or trade sanction laws or regulations. Seals Intact To the extent that cover for shortage is provided hereunder, claims for shortage from a sealed container shall not be invalidated by the fact that seals are or appear intact upon arrival. Shortage in this context shall be determined as the difference between the number of packages loaded or alleged to have been loaded in accordance with the shipper's or supplier's invoice or packing list and the number of packages removed at the time the container is unloaded. Seller's Interest in Respect of Shipments Sold by the Assured on FOB, CFR or Similar Terms This Policy also covers the contingent interest of the Assured as seller in respect of consignments sold on FOB, CFR or similar terms which do not require the seller to arrange marine insurance. In the event that the buyer fails to pay for goods sold by the Assured on FOB, CFR or similar terms or for any other reason the goods remain the property of or revert to the Assured then such goods will be covered hereunder for account of the seller only and in accordance with the conditions set out herein. Cover shall be retrospective to attachment as stated herein and shall continue until terminated as provided in the relevant conditions of this cover. In the event of any delay or deviation caused by the failure of the buyer to take up and pay for the goods cover hereunder shall continue until the Assured receives payment or the goods are returned to the Assured or disposed of elsewhere and the Assured's risk ceases. The Company hereon is to be subrogated to all rights and benefits which the Assured may possess against the buyer, the buyer's insurance or any other parties. The existence of this insurance is not to be revealed to the buyer or to any other party interested in the consignment. Shipping Expenses When the Subject Matter Insured is not delivered to the destination contemplated due to circumstances beyond the control of the Assured, this Policy will also pay any charges incidental to shipping which have been or may be incurred by the Assured. Termination of Transit (Terrorism) JC2001/056 This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 10 of 13

11 1. Notwithstanding any provision to the contrary contained in this Policy or the clauses referred to therein, other than as detailed in subclauses 2 and 3 below, it is agreed that insofar as this Policy covers loss of or damage to the Subject Matter Insured caused by any terrorist or any person acting from a political motive, such cover is conditional upon the Subject Matter Insured being in the ordinary course of transit and, in any event, shall terminate either: a) as per the transit clauses contained within this Policy; b) on delivery to the consignee s or other final warehouse or place of storage at the destination named herein; c) on delivery to any other warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elects to use either for storage other than in the ordinary course of transit or for allocation or distribution; d) in respect of marine transits, on the expiry of sixty (60) days after completion of discharge overside of the goods hereby insured from the overseas vessel at the final port of discharge; or e) in respect of air transits, on the expiry of thirty (30) days after unloading the Subject Matter Insured from the aircraft at the final place of discharge; whichever shall first occur. 2. Where loss of or damage to the Subject Matter Insured caused by any terrorist or any person acting from a political motive occurs after termination of cover, or outside the ordinary course of transit, as defined in subclause 1. above, but is otherwise covered by virtue of the Policy terms and conditions making specific provision to cover goods in store outside the ordinary course of transit, the termination provisions above are not applicable but the Company s liability in respect of any one event will be limited to GBP 100, Where specifically agreed, and an additional premium paid, the provisions of subclause 2. above shall apply in respect of the Subject Matter Insured whilst on exhibition. In the absence of such specific agreement, and the payment of an additional premium, cover in respect of the Subject Matter Insured whilst on exhibition shall be subject to subclause 1. above and subclause 4. below. 4. If this Policy or the subclauses referred to therein specifically provide cover for inland or other further transits following on from storage, or termination as provided for above, cover will re-attach, and continues during the ordinary course of that transit terminating again in accordance with subclause 1. above. 5. This clause is subject to English law and practice Testing, Sorting and Segregation In the event of external signs of damage to the Subject Matter Insured and/or packing, the Company agrees to meet the reasonable costs of discharge, testing, sorting and segregating the goods including any surveyor s fees and additional storage charges whether or not any actual damage is subsequently found including the cost of transporting the goods to or from a test facility plus the cost of re-packing and shipment to destination after completion. Cover is extended for periods of duration of transit in excess of those provided herein to allow for the above to be carried out prior to delivery to final destination. Used or Unpacked or Damaged Goods This Policy covers loss of or damage to used goods or unpacked or damaged goods whilst in transit subject to the Policy terms and conditions but unless agreed by the Company prior to shipment excluding: 1. rust, oxidisation, discolouration and corrosion. 2. breakage, scratching, denting, bruising, chipping and cost of repainting. 3. twisting, bending and distortion. Unknown Loss The Company agrees that in the event that the Subject Matter Insured hereunder becomes missing or is lost or damaged by causes unknown or from causes which cannot be promptly determined, they will within ninety (90) days from the submission of proof by the Assured, lend to the Assured the amount of loss (not exceeding the sum insured subject to the loan being made without any collateral other than assignment (if required)) of the insurance. Such loan to be repaid in full in the event of goods being located in a sound condition, or in the event such loss resulting from an exclusion hereunder or uninsured peril. Unseaworthiness and Unfitness The seaworthiness of the vessel or craft and the fitness of the vessel craft, conveyance, liftvan or UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 11 of 13

12 aircraft for the safe carriage of the Subject Matter Insured is admitted as between the Assured and the Company. Voyage The insurance hereunder attaches from the time the Subject Matter Insured becomes the Assured's risk or the Assured assumes interest/commencement of the transit hereunder and continues throughout transit including during delays in transit and/or after discharge at the final port or airport irrespective of whether such delays are within or beyond the Assured's control and including transits to and from and whilst at the premises of forwarders, packers, consolidators, hauliers, warehousemen and other bailees and terminates on delivery to the consignee's or other final warehouse at the place where the transit covered hereunder is intended to cease. Including risks in customs as required, and transhipment, craft and barge risks, when customary. Including cover throughout all loading and unloading operations and, in the case of containers, during the stuffing and unstuffing thereof. 3. Standard Conditions For Cargo Contracts 1. This Policy is to insure the goods specified for the transits and on the conditions named shipped by or for account of the Assured or the insurance of which is under their control as selling or purchasing agent unless insured elsewhere prior to inception of this Policy or to insurable goods being acquired. This Policy does not cover the goods of any other person, but this shall not prevent a transfer of the insurance by the Assured or assignee. 2. It is a condition of this Policy that the Assured is bound to declare hereunder every consignment without exception, the Company being bound to accept up to but not exceeding the amount specified in subclause 3. below. 3. a) This Policy is for an open amount but the amount declarable may not exceed the sum specified in the Schedule in respect of any one vessel, aircraft or conveyance. b) Should this Policy be expressed in the form of a floating policy, the total amount declarable hereunder may not exceed the amount specified in the Schedule subject always to the provisions of subclause 3.a) above. 4. Notwithstanding anything to the contrary contained in this Policy the Company's liability in respect of any one accident or series of accidents arising from the same event in any one location shall not exceed the sum specified in the Schedule. 5. In the event of loss, accident or arrival before declaration of value, it is agreed that the basis of valuation shall be the prime cost of the goods or merchandise, plus the expenses of and incidental to shipping, the freight for which the Assured is liable, the charges of insurance and any percentage specified in the Schedule. 6. This Policy is subject to the Institute Classification Clause. 7. Should the risks of war and strikes be included in the cover granted by this Policy the relevant War Clauses (Cargo) and Strikes Clauses (Cargo) shall apply. 8. The Institute Clauses if referred to herein are those current at the inception of this Policy but should such clauses be revised during the Period of Insurance, and provided that the Company shall have given at least 30 days' notice thereof, then the revised Institute Clauses shall apply to risks attaching subsequent to the date of expiry of the said notice. 4. Important Information and Duty of Disclosure Under English Law it is your responsibility to disclose all material information to your insurers prior to inception of cover, to enable terms to be negotiated and cover to be arranged. This is not restricted to answering specific questions asked by your insurers. Material information can be defined as any information that would influence an insurer in evaluating a risk s acceptability, cost and applicable conditions. Failure to do so or misrepresentation of information can result in your policy being void and claims not being paid. If you become aware that any material information you have supplied before placement is incorrect or incomplete you should let your broker know immediately. After inception of cover the duty of disclosure is reimposed when the policy is renewed, extended or when there are changes or variations in cover. Any changes that significantly affect the risk, or relate to compliance with a warranty or condition in the policy, must also be notified at once. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 12 of 13

13 It should be noted that your policy may contain an express obligation to notify any change in risk. It may also contain clauses that require some action on your part. We strongly recommend you read your entire policy document. 5. Claims Procedures In the event of loss or damage which may result in a claim hereunder, immediate notice should be given to your broker, or, where a Claims Payable Abroad certificate has been issued, the Claims Settling Agent as stated in the certificate. In all cases it is the duty of the Assured and their Agents to take such measures as may be reasonable to avert or minimise a loss and to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised. Specifically, the Assured or their agents are required to: 1. immediately make a written claim on carriers, bailees, port authorities and other third parties for all loss or damage. 2. take all necessary actions to ensure preservation of the Company s rights to claim against any such third party including obtaining any necessary time extensions. The Assured shall, if required, commence legal proceedings against third parties to protect any such time limit, with the Company agreeing to reimburse any costs incurred in doing this provided that the loss is recoverable under the terms and conditions of this Policy. 6. Complaint Procedures How to make a complaint We are dedicated to providing you with a high quality service and want to maintain this at all times. If you feel that we have not offered you a first class service and you wish to make a complaint, in the first instance, please contact the intermediary who arranged this insurance or our Customer Relations Department at: Chubb Customer Relations PO Box 4510 Dunstable LU6 9QA Telephone: customerrelations@chubb.com If you are dissatisfied with the final response to your complaint the Financial Ombudsman Service (FOS) may be approached for assistance in certain circumstances. A leaflet explaining their procedure is available on request. The FOS s contact details are: The Financial Ombudsman Service, Exchange Tower, London E14 9SR Phone: complaint.info@financialombudsman.org.uk This complaint procedure does not affect your rights to take legal proceedings. 3. under no circumstances provide clean receipts if sound condition of goods appears to be uncertain. 4. give immediate notice to the police and obtain a crime reference number in the event of theft and malicious damaged. 5. where delivery is made by container, in addition to the above: a) ensure immediate examination of container and its seals, by their responsible official; and b) if the container is delivered damaged or with seals broken or missing, or with seals other than as stated in the shipping documents, to clause the delivery receipt accordingly and retain all defective or irregular seals for subsequent identification. UK/CCI/CLD/OPEN_CARGO/15 OMC1D2015/0 Page 13 of 13