Customer Marine Cargo Policy

Transcription

1 ACE European Group Ltd. UK Head Office: The ACE Building, 100 Leadenhall Street, London, EC3A 3BP tel fax Customer Marine Cargo Policy Please read this Policy carefully. If it does not meet with your requirements you should inform us immediately through your insurance intermediary. ACE European Group Ltd. (referred to as the Company within this Policy) and the Insured named in the Policy agree that a) this Policy and any Endorsement(s) subsequently issued shall be considered one document and any word or expression to which a specific meaning has been attached shall bear such meaning wherever it appears, b) information supplied by the Insured shall be incorporated as part of the contract, c) the Company will provide the insurance described in this Policy, subject to the terms and conditions, for the period of insurance shown and any subsequent period for which the Insured shall pay and the Company shall agree to accept the premium, provided that this Policy shall not be in force unless it has been initialled by an authorised official of the Company. SIGNED for and on behalf of the Company Andrew Kendrick, President

2 Contents Section 1: Summary of Policy The basis of your policy coverage including premiums, rates, taxes and all deductions Appendix 1: Additional Clauses The full wording of any additional extensions or restrictions of cover to your policy Section 2: Standard Cover The internationally recognised clauses providing your standard policy coverage Section 3: Additional Cover Your policy has been extended beyond the standard cover provided by the Institute Clauses Section 4: Specific Conditions Those areas of cover where special conditions apply Section 5: Claims Procedures What you need to do in the event of a claim Section 6: Customer Service Our commitment to you Appendix 2: Institute Clauses The full wording of the Institute Clauses used within your policy

3 Section 1: Summary of Policy ACE Policy Number UKCGNC36817 Insured Stephen Robert Waite and Oliver Stuart Reed t/as Sterling Art Services as agents on behalf of customers for whom they have received instructions to insure. Address 1B, Galleymead Road, Colnbrook, Slough, Berkshire, SL3 0EN Business description Collection, delivery, packing and transportation of art, antiques, general furniture and accessories and picture hanging services Period From: 31st May 2015 To:30th May 2016 both dates inclusive, local standard time at the address of the insured. Subject-matter Insured Goods and/or merchandise incidental to the Insured s business and/or the property of the Insured, consisting principally of, but not limited to, fine art and antiques, including Contingent Financial Interest where required. Unless a separate limit has been agreed, this insurance excludes loss damage or expense in respect of hi-tech equipment and/or hi-tech components, except for components contained in fully assembled or manufactured equipment as defined in Section 4. Voyages All shipments commencing within the policy period including World to World including transhipments if required, including transits to and/or from and/or whilst at the premises of forwarders and/or packers and/or consolidators and/or hauliers and/or warehousemen and/or other bailees in the ordinary course of transit Inland transits, including sendings up to FOB or similar Where specified by the inclusion of a separate limit; Sendings to and/or from and whilst at exhibition, demonstration, trade fair or show premises Inter Company movements Engineer s Tools and Equipment Storage Excluding shipments to/from or within any of the OFAC Sanctioned Countries namely Iran, Cuba, Syria, North Korea or North Sudan &/or Countries where legislation or sanctions prohibit the placing of insurance with ACE European Group Limited.

4 Conveyances Sea and/or air and/or road and/or rail and/or postal conveyances, of every description. Insuring Conditions As per policy wording with the addition of any specific clauses shown in Appendix 1, including any overriding amendments to Sections 2, 3 and 4 Maximum Sums Insured As quoted to you individually by Sterling Art Services Excess GBP 1,000 GBP 1,000 GBP 1,000 GBP 1,000 GBP 2,500 per vessel or aircraft per road or rail conveyance per location (in the ordinary course of transit) per Inter Company movements per specified location outside the ordinary course of transit Basis of Valuation The Value on which settlement for total loss will be based, shall be Declared Value or fair market valuation at the time of loss plus any VAT / Duty that does not form part of the Export Value and is owed to UK Customs up to the point of exportation as declared. In no event shall Underwriters be liable for more than the sum insured declared on the certificate of the item or shipment. In the event of partial loss of or damage to any item insured, the amount of loss shall be the cost of expense restoration plus any resulting depreciation in value but not exceeding the Value of that item, subject to the Sum Insured declared on the certificate for the item or shipment. Following the payment of the full amount insured for any item, pair or set, the Underwriters will become the full owners and reserve the right to take possession of the item, pair or set Premium Your Premium will be notified to you by Sterling Art Services prior to Transit/Storage. All UK Inland Transits and Storage premiums are subject to Insurance Premium Tax at 6% but increasing to 9.5% for all UK Inland Transits or Storage commencing on or after 26 th February 2016

5 Premium Payment Warranty Premium must be paid in full to the Company in accordance with the agreement between the Intermediary and the Company. If the premium due under this policy has not been received by the Company within the above timescales, then the Company shall have the right to cancel this policy by notifying the insured via their intermediary in writing. In the event of cancellation for non-payment of premium, premium will still be due to the Company on a pro-rata basis in respect of a deposit or in full premium for the period the policy has been active. The full premium due shall be payable to the Company in the event of a loss or occurrence prior to the date of cancellation which gives rise to a claim under the policy. It is agreed that the company will give not less than fifteen days prior notice of cancellation to the Insured via their intermediary. If the premium due is paid in full to the company within the notice period, notice of cancellation shall be withdrawn. Cancellation This Policy may be cancelled at any time by either the Company or the Insured subject to written notice as follows Marine and/or storage risks War and strikes risks But Strikes risks in respect of shipments and/or sendings to and/or from the United States of America (if any) 30 Days 7 Days 48 Hours } From midnight of the day notice of cancellation is issued Contracts (Rights of Third Parties) Act 1999 Exclusion Clause (Cargo) The Provisions of the Contracts (Rights of Third Parties) Act 1999 do not apply to this insurance, or to any certificate(s) of insurance issued hereunder. Neither this insurance nor any certificates issued hereunder confer any benefits on any third parties. No third party may enforce any term of this insurance or of any certificate issued hereunder. This clause shall not affect the rights of the Insured (as assignee or otherwise) nor the rights of any loss payee. Dishonesty This policy shall become void following any dishonesty, collusion, larceny, embezzlement committed, assisted, brought about or connived at by the Insured or any employee of the Insured. Choice of Law and Jurisdiction This Policy shall be governed by and construed in accordance with the Law of England and Wales and the Company and Insured agree to submit to the exclusive jurisdiction of the courts of England and Wales

6 Appendix 1: Additional Clauses Policy Exclusions : Excluding mechanical and/or electrical and/or electro-magnetic derangement unless caused by a risk insured against Excluding rust, oxidation and discolouration on unpacked or unprotected goods Antiques Clause In the event of the goods insured being damaged by risks insured against, this policy covers only the reasonable cost of repairs. Depreciation is included up to, but not exceeding 100% of the insured value of the affected goods, following loss or damage sustained as a result of a risk insured against, but in no case shall repair costs and depreciation, in total, exceed 100% of the insured value. Waiver of Subrogation &/or Recourse Rights Clause Insurers agree to waive all rights of subrogation and/or recourse against Stephen Robert Waite and Oliver Stuart Reed t/as Sterling Art Services Storage It is agreed that this policy is extended to include storage outside the ordinary course of transit at the following locations only: 1B, Galleymead Road, Colnbrook, Slough, Berkshire, SL3 0EN Location Limit GBP 500,000 Space Station Storage 149 St Paul s Avenue, Wexham Road, Slough Berkshire SL2 5EN Location Limit GBP 500,000

7 Section 2: Standard Cover To enable the cover provided under this policy to be understood worldwide the standard cover is provided by the internationally recognised Institute Clauses listed below: For shipments by Sea and/or Road and/or Rail Conveyances: Institute Cargo Clauses (A) CL /01/2009 Institute War Clauses (Cargo) CL385 01/01/2009 Institute Strikes Clauses (Cargo) CL386 01/01/2009 Institute Classification Clause CL354 01/01/2001 Cargo ISM Endorsement JC98/019 Cargo ISM Forwarding Charges Clause For shipments by Aircraft: Institute Cargo Clauses (Air) (excluding sendings by Post) CL387 01/01/2009 Institute War Clauses (Air Cargo) (excluding sendings by Post) CL388 01/01/2009 Institute Strikes Clauses (Air Cargo) CL389 01/01/2009 For sendings by Post: Institute Cargo Clauses (A) CL382 01/01/2009 Institute War Clauses (sendings by Post) CL390 01/03/2009 Institute Strikes Clauses (Cargo) or Institute Strikes Clauses (Air Cargo) as appropriate For sendings where applicable: For storage Institute Cargo Clauses (B) CL383 01/01/2009 Institute Cargo Clauses (C) CL384 01/01/2009 Institute Cargo Clauses (A) CL /01/2009 as far as applicable Institute Strikes Clause (Cargo) CL386 01/01/2009 as far as applicable For all sendings including storage Termination of Transit Clause (Terrorism) JC2009/56 01/01/2009 Institute Cyber Attack Exclusion Clause CL380 10/11/2003 Institute Radioactive, Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause CL370 10/11/2003 Sanctions Limitation and Exclusion Clause The Institute Clauses referred to above are those current at the inception of the Policy and should the clauses be subsequently revised, (subject to notice in accordance with the cancellation provision within Section 1 of the Policy), then the revised Institute Clauses shall apply to all risks which attach on or after the date of the expiry of the notice For ease of reference these Institute Clauses are contained in a separate Appendix at the back of this policy. It is important that you acquaint yourself with the coverage, exclusions and conditions within these Institute Clauses.

8 Section 3: Additional Cover This section sets out where cover under this Policy has been extended beyond that provided by the Institute Clauses, but subject otherwise to the terms and conditions of the Policy. This additional cover is for the sole benefit of the Insured and is only assignable at the express wish of the Insured. Accumulation Should there be an accumulation of the subject matter insured whilst in the ordinary course of transit at any one particular location beyond the limits expressed in the policy by reason of any occurrence which is beyond the control of the Insured, the policy shall cover the full value at risk, but in no event for more than twice the policy limit, provided notice shall be given to Insurers as soon as practicable by the Insured of any such accumulation. Airfreight Replacement If the Subject Matter Insured is lost or damaged as a result of a peril insured against, and irrespective of whether the Subject Matter Insured was originally sent by air, the Company agrees to pay the reasonable cost of sending by air the damaged Subject Matter Insured to the manufacturer or repairer for repair and return the replacement Subject Matter Insured or parts from the supplier The amount payable shall be limited to GBP10,000 any one claim, or the equivalent in any other currency. Branded Goods The Company agrees that the Insured shall have full possession or control of all damaged goods bearing embossed or indented brands or labels or other permanent markings, which identify the Insured, provided such damage is recoverable under the terms and conditions of this Policy. It is agreed that the Insured has the sole right to have the goods destroyed or reconditioned although the Company shall have the benefit of any salvage obtained from such action. Buyers and/or Sellers Contingent Interest This policy extends to cover the Insured s Contingent Interest in any goods where the Insured has no responsibility to insure under the terms of Sale or where the cover provided is more restrictive than that afforded under this policy. Where interest in the goods reverts to the Insured for any reason during transit, such goods shall be covered continuously during any reasonable period whilst awaiting resale or return including any additional transit resultant upon such resale or return. The cover provided is however limited to loss and/or damage which would otherwise be recoverable under the terms of this Policy but only up to the extent that the Insured is unable to recover such loss and/or damage under the insurance effected by the buyer or seller as may be applicable. Provided that: The Insured does not knowingly purchase or sell goods where the insurance arranged by the seller or buyer is more restrictive than Institute Cargo Clauses (A) or local equivalent The existence of this extension is not to be disclosed to any other parties interested in the shipment(s). Immediate notice must be given to the Company of any loss of or damage to the goods covered under this extension or any known circumstances which may render this extension operative. The Insured must in the first instance take all reasonable steps to invoke the terms of the contract of sale and obtain reimbursement from the buyers and/or sellers and/or any other interested parties. In the event of any claim settlement under this extension, all the Insured s rights of recovery against buyers and/or sellers and/or any other interested parties will be subrogated to the Company. This extension is not to be deemed a double insurance.

9 The Insured to declare all such sendings to the Company in accordance with declarations agreed and pay the premium attributable, where applicable. Discovery of Loss or Damage The Company agrees to pay for loss or damage that is discovered when the goods are unpacked at final destination provided: Duty such loss or damage is reasonably attributable to the perils insured against during the voyage the external packaging is inspected on arrival and shows no signs of damage unpacking occurs within 90 days of arrival This Policy extends to cover any increase in the value of the subject-matter insured during the course of transit due to the imposition of Customs Duty, or any other similar levy, either in the country of destination or in any country through which the goods pass. Duty and/or any other similar levy is not recoverable if the subject-matter insured is totally or partially lost prior to the Duty and/or levy becoming payable Errors and Omissions The Company agrees that the Insured shall not be prejudiced by any unintentional error or omission relating to declarations of shipments under the Policy, provided that such errors or omissions are advised to the Company as soon as they come to the notice of the Insured Fumigation Clause In the event of Ioss or damage to the interest insured caused by fumigation, the Insurers agrees to indemnify the Insured for such Ioss or damage, and the Insured hereby agrees to subrogate to the Insurers any recourse they may have for recovery of such Ioss or damage from others, but this clause does not extend to cover Ioss or damage caused by customary fumigation applied prior to inception of risk. Deliberate Damage - Pollution Hazard Clause This policy is extended to cover Ioss of or damage to the property insured hereunder directly caused by Governmental Authorities acting for the public welfare to prevent or mitigate a pollution hazard or threat thereof, provided a recoverable claim would have resulted under the policy (subject to all of its terms, conditions, and warranties) had the property insured sustained physical Ioss or damage as a direct result of the accident or occurrence which gave rise to the threatened pollution hazard. This clause shall not increase the Limits of Liability provided for in this policy. Civil Authority Clause Notwithstanding anything contained in this policy, it is understood and agreed that property which is insured under this policy is also covered against the risk or damage or destruction by Civil Authority during a conflagration or for the purpose of retarding the same, provided that neither such conflagration nor such damage or destruction is caused or contributed to by War perils elsewhere excluded herein.

10 General Average and Salvage Charges The Company agrees that this insurance 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 Foreign Statement or 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 subjectmatter insured shall be deemed to be insured for its full contributory value. General average deposits shall be reimbursed on production of general average deposit receipts. Labelled Goods The Company agrees to pay the reasonable costs of new labels and/or re-labelling the goods should the original labels be damaged during the transit. Packing Presentation Packing The Company agrees to pay the reasonable costs of repair or replacing of any presentation packing of goods lost or damaged provided that the presentation packing has been protected to withstand the normal rigours of the transit. Repacking and Sorting The Company agrees to pay for the reasonable costs of repairing and/or replacing the packing if at some stage during the insured transit the original packing is damaged by a peril insured against. The Company also agrees to pay for the reasonable cost of sorting goods damaged by a peril insured against where sorting is for the purposes of minimising and/or determining the loss. In no case shall the Company be liable, under this extension, for more than 25% of the insured value of the goods that are the subject of the claim. Purchases on Terms other than Delivered to Final Destination (Warehouse to Warehouse) Notwithstanding anything contained hereinto the contrary it is hereby understood and agreed that the goods are at the Insurers and that their 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 notwithstanding that the goods &/or interest may have been purchased on FOB, CFR or similar terms. In all cases the Insurers shall be subrogated to the Assureds rights of recourse against the Suppliers or other parties unless such rights have been waived in accordance with any Subrogation Waiver Clause contained herein. Removal of Debris The Company agrees to cover, in addition to any other amount recoverable under this insurance, costs and expenses reasonably and necessarily incurred by the Insured in connection with the removal, disposal and/or destruction of debris of the subject-matter insured but excluding absolutely: Any expenses incurred in consequence of or to avert or mitigate pollution or contamination, or threat or liability thereof the cost of removal of cargo from any aircraft or vessel. In no case shall the Company be liable, under this extension, for more than 10% of the insured value of the goods that are the subject of the claim.

11 Replacement of Damaged Electrical, Electronic or Mechanical Equipment Parts The Company agrees that should one or more parts be damaged as a result of a peril insured against this Policy will reimburse the Insured for the cost of repairing or replacing and refitting the damaged part(s) provided that such costs shall not exceed the new replacement value of the complete machine or equipment. If used machinery or equipment is covered under this Policy, the cost of repairing or replacing and refitting the damaged part(s) is limited to the current market value of the complete machine or equipment at the time of shipment. Returned Goods In the event of shipments insured under this Policy being returned for any reason (following the operation of an insured peril), such shipments are covered continuously hereunder, including whilst in warehouse or elsewhere until finally disposed of by the Insured. Reports of such returned shipments to be made to the Company by the Insured as soon as practicable after they have knowledge of same. These risks are held covered at rates and on conditions to be agreed, subject to the company s agreement regarding the overall extension period required and subject to individual details of each case as may arise as soon as practicable. In those cases where returned goods were not insured under this Policy for the outward voyage or where cover under this Policy has not been continuous or where there has not been the operation of an insured peril, then it is agreed that shipments are held covered subject to the Institute Cargo Clauses (B) including heavy weather damage, nondelivery and loss overboard and the Institute War and Strikes Clauses and the Institute Malicious Damage Clause at rates to be agreed. Warranted repacked to the same standard for the return journey as for the original journey. Ropes and Sheets (Own Vehicles) Clause The company agrees to indemnify the Insured 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:- The first GBP 100 of each and every claim. More than GBP 2,500 in respect of any one vehicle. Loss, destruction or damage caused by or arising from wear and tear or gradual deterioration. Loss, destruction or damage unless caused by a peril insured by the Policy. Seals Intact Clause Claims in respect of shortage and/or non-delivery of all or part of the consignment shipped in a container will not be invalidated should the original container seal(s) appear intact. Documentary evidence must be produced to substantiate the quantity loaded into the container. The production of such documents and discharge tally sheets and/or claused delivery notes shall be sufficient evidence of a shortage or non-delivery. The insured agrees to assist the Company in the enforcement of rights against the supplier and/or third parties.

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13 Section 4: Special Conditions This section sets out where the cover provided under the policy has certain additional conditions attached Cutting Clause In the event of the subject matter insured being damaged in such a way that is practicable to use the sound portion or portions for the purpose for which they were originally intended, this Policy shall only pay for the damaged portion or portions. Electrical, Electronic and Mechanical Derangement Excluding loss or damage due to Electrical, Electronic, Electromagnetic or Mechanical breakdown or derangement unless caused by an insured peril. Engineers and Sales Representatives Tools, Samples and Equipment Where a separate limit has been agreed this insurance covers loss of or damage to Engineers and/or Sales Representatives tools, samples and equipment which are the property of the Insured or for which the Insured is responsible whilst in transit and at third party premises subject to Policy terms and conditions as far as applicable but: excluding loss and/or damage arising from demonstration, use or testing excluding absolutely loss of and/or damage to Hi-Tech Equipment and Components as defined below. Exhibition Risks and Expenses Where a separate limit has been agreed this Insurance is extended to include loss of or damage to the subject matter insured, including stands, fittings and exhibition equipment where required, whilst in transit to and from exhibition &/or demonstration site and whilst at exhibitions, demonstrations, trade fairs or show premises subject to Policy terms and conditions as far as applicable but:- Period at premises referred to above not to exceed 30 days or held covered at rates to be agreed. Notwithstanding anything contained herein to the contrary this Insurance excludes:- Wear, tear and gradual deterioration Loss of or damage to the subject matter insured arising from demonstration, use or testing. Loss of or damage to the subject matter insured arising from latent defect, faulty assembly or construction. Theft &/or Pilferage from unattended exhibition stand. Theft &/or Pilferage from unattended exhibition site unless following forcible and violent entry to or exit from the premises. Warranted subject matter insured repacked to not less than the same standard as for the outward journey, and that re-packing is supervised by a responsible official of the Insured. In the event of goods being sold from the exhibition, demonstration, trade fair or show, cover terminates at the time of lifting for removal from the premises. In addition to the Exhibition Limit it is agreed to include loss of incurred exhibition expenses up to but not exceeding GBP5,000 each exhibit or exhibition arising from failure of the exhibitor to exhibit the insured subject matter due to the operation of a peril insured hereunder or due to the abandonment of the exhibition by the exhibitor or cancellation of the exhibition by the promoter due in either case to the operation of a peril covered hereunder. In no circumstances, however, does this policy cover: loss of expenses arising from withdrawal of labour

14 cancellation of the exhibition due to an outbreak of war or through fear of hostilities Goods Carried or Stored under Temperature Controlled Conditions Where goods of any type are carried or stored under temperature controlled conditions cover is provided for loss or damage subject to the following: Loss or damage to the subject matter insured resulting from any variation in temperature is excluded unless attributable to: Breakdown of refrigerating machinery resulting in its stoppage for a period of not less than twenty four consecutive hours Fire or explosion, vessel or craft being stranded grounded sunk or capsized, overturning or derailment of land conveyances, collision or contact of vessel craft or conveyance with any external object other than water, discharge of cargo at a port of distress Excluding loss damage or expense arising from any failure of the Insured or their servants to take all responsible precautions to ensure that the subject matter insured is kept in an appropriate temperature controlled environment. Hi-Tech Equipment and Components Unless a separate limit has been agreed in Section 1 this insurance excludes loss damage or expense in respect of hi-tech equipment and/or hi-tech components, except for components contained in fully assembled or manufactured equipment (other than equipment referred to in 1 below) For the purposes of this policy 1. Hi-tech equipment shall comprise, but not be limited to, Personal computers, lap-top, palm-top and similar portable computer equipment and mobile, cellular, WAP and other portable telephone equipment Plasma screens and camcorders 2. Hi-tech components shall comprise, but not be limited to, electronic data processing equipment for use with computers and/or hardware and/or software and/or programs and/or electronic data processing equipment. 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 Policy, be insured by any other Policy or Policies except in respect of any excess beyond the amount which would have been payable under other Policy or Policies had this Insurance not been effected. Pairs and Sets If the subject-matter insured consists of articles, which form a pair or set insurers to only pay for the proportionate sum insured of the article (s) lost or damaged, without reference to any special value the damaged article may have as part of a pair or set. Postal Sendings If the subject-matter insured is despatched by Postal Sendings and valued GBP 1,000 or more per package and/or parcel it must be: insured for the minimum amount available with the Postal Service; or despatched via a system, which provides evidence of both posting and delivery.

15 Used and/or Unpacked and/or Partially Packed and/or Damaged Goods This Policy covers loss of and/or damage to used goods that have not been fully reconditioned and/or unpacked and/or partially protected and/or damaged goods whilst in transit subject to Policy terms and conditions but excluding: rust, oxidisation, discolouration and corrosion breakage, scratching, denting, bruising, chipping and cost of repainting twisting, bending and distortion unless the loss and/or damage is attributable to a peril insured under Institute Cargo Clause (C) Vehicle Security Requirements The following Conditions shall apply to any Sterling Art Services Vehicle owned/hired or under their control containing the subject matter insured. The Company shall not be liable for any loss of, or damage of, or to the subject matter insured arising from theft or any attempt thereat whilst on or contained in any vehicle when left unattended at all times unless all doors and the boot are securely locked, the ignition key removed to a place of safety, and all windows and other means of access are securely closed and all security devices as may be specified in the Policy are put into effect. Also 1. At any time prior to or after completion of the drivers working day 2. On non-working days Unless such vehicles shall be garaged at the time in a fully enclosed building or compound of substantial construction which is locked or under constant surveillance All locking and security devices shall be installed and maintained in accordance with the Manufacturers recommendations, in operation, properly and adequately maintained and neither withdrawn nor varied without the Company s consent. All interests insured are to be locked in the boot or where the vehicle is an estate or similar type of vehicle without a boot they must be hidden from view. Nevertheless the Insured s right to recover any loss arising from theft shall not be prejudiced by failure of the Sterling Art Services to comply with the conditions above solely through the mechanical breakdown of locks or security devices as a result of damage by fire or an accident to the vehicle provided always that such locks and devices were in efficient working order at the commencement of the journey during which theft occurred and provided also that all reasonable precautions were taken by the Insured to protect the subject matter insured following the breakdown or damage. Sterling Art Services shall at all times exercise reasonable care in the selection and employment of Drivers and other Employees and shall obtain written references and confirmation of such references directly from the previous Employers. STERLING ART SERVICES MUST ENSURE THAT THE ABOVE REQUIREMENTS ARE KNOWN TO AND UNDERSTOOD BY ALL DRIVERS IN THEIR EMPLOYMENT.

16 Storage Where a separate limit for storage outside the ordinary course of transit has been agreed this insurance covers loss of or damage to the subject matter insured whilst in store subject to the terms, conditions and limits contained within the Policy and/or as specified in the Policy Schedule so far as applicable and the following provisions. Warranties All security protections existing at the inception date of this policy or subsequently fitted at the request of the company be maintained in proper working order and put into operation and any keys for any safes or strongrooms containing any of the property insured hereunder be removed from the premises at night or whenever the premises are closed for business. Alarm Warranty Warranted that the following requirements are complied with in respect of burglar / intruder alarms fitted at premises owned or occupied by the insured :- The alarm is inspected and maintained during the period of the policy in accordance with the contract with the Alarm Company or such other company as is agreed in writing by the Company. The Alarm Company or Maintenance Company is immediately notified by the Insured of any defect of the alarm. The alarm is tested and found to be in full and efficient working order operation whenever the premises are left unattended. The Company shall be notified immediately by the Insured of any notification from the police authority that their response to the alarm system may be restricted or withdrawn. The Company shall be notified immediately of any alteration to the alarm system and/or its maintenance contract. Exclusions The Policy shall not cover Theft unless there is evidence of forcible and violent entry into (or exit from) the approved premises in which the interests are being stored. Theft in the open or in outbuildings not communicating with the main building unless specifically mentioned in the policy Unexplained shortages and/or mysterious disappearances and/or stocktaking losses. Loss or damage due to moth, vermin and the like. Loss or damage due to atmospheric conditions and/or gradually operating causes. Loss or damage which may be sustained whilst the insured s interest are undergoing any manufacture, process, conversion, treatment or similar and which is directly resulting therefrom. Theft or any attempt thereat by or in collusion with any employee of the insured. This insurance is subject to average

17 Section 5: Claims Procedures In the event of any loss or damage likely to give rise to a claim under this insurance it is essential that the Company and all relevant Third Parties are notified immediately, and a Claim Form, if required, completed and submitted as soon as possible. Receipt The following course of action should be taken upon receipt of any consignment: a) The consignment should be checked for both quantity and condition. b) If this is not possible then the Delivery Note should be claused: Signed for quantity - contents unchecked. c) Container seals should be examined to ensure they are intact and that the seal numbers match those shown on the transport document. Any discrepancy must be recorded on the Delivery Note. Damage a) Any damage found at time of delivery must be recorded on the Delivery Note. b) Where a full check of the consignment is not possible at the time of delivery it is essential that this is completed without delay. c) Written notification must be given to the Carriers within the time limits set out in their Contract of Carriage. Documents The following documents usually form an essential part of the claim and should be provided to the Company: a) Suppliers Invoices to support values and indicate terms of sale. b) Packing Lists (where applicable). c) Delivery Receipts, Landing Accounts etc. - as evidence of condition and to establish where any loss occurred. d) Original Transit Document - Bill of Lading, Airwaybill or CMR Note as evidence of the Contract of Carriage. e) Correspondence with Carriers, Suppliers or other Third Parties - holding them liable for any loss, in order that subsequent recoveries can be sought from the responsible party/parties. f) A calculation or estimate of the amount being claimed. g) Original Insurance Certificate, if issued. h) Any other documentation not detailed above relevant to the shipment, transaction or loss. Immediately upon notification it is likely that the Company will instruct an independent surveyor or investigator to examine the case, with a view to establishing exact circumstances and extent of the loss. This exercise will be effected and concluded with the minimum of delay and at the Company s expense.

18 Overseas Claims Where claims are payable abroad the local nominated Marine Claims Settling Agent should be contacted. This Agent will require similar action and documentation to that detailed above, dependent upon local custom. Recoveries In the event of loss or damage which may result in a claim hereunder, it is hereby noted and agreed that ACE European Group Limited will appoint Xchanging Claims Services (XCS) to undertake such recovery action, as may be appropriate. Waiver of surveys It is agreed that surveys will not be required in respect of claims not expected to exceed GBP 2,500 or the equivalent in other currencies, such claims to be accepted by Insurers on presentation of the Insured's written statement of the circumstances surrounding the claim and provided the claims procedures have been followed and all valid documentation is presented as set out above Contact details Marine Claims Team ACE Building 100 Leadenhall Street London EC3A 3BP marineclaimsuk@acegroup.com Tel: +44 (0) Fax: +44 (0)

19 Section 6: Customer Service Complaints Procedure 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 or you wish to make an enquiry regarding this insurance, please contact the intermediary who arranged this insurance for you or the manager of the branch of the company which issued your Policy. If you are still not satisfied, you may write to our President of the company at ACE s head office the address is shown on your Policy. ACE European Group Limited is a member of the Financial Ombudsman Service (FOS) and in limited circumstances, you can approach them for assistance if you remain dissatisfied with our response. A leaflet explaining its procedure is available on request. The FOS s contact details are FOS, South Quay, 183 Marsh Wall, London, E14 9SR, Phone: enquiries@financial-ombudsman.org.uk Financial Conduct Authority ACE European Group Limited 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. Data Protection ACE European Group Limited and its group companies ( ACE ) will use the information supplied during the formation and performance of this Policy for policy administration, customer services, the payment of claims and the production of management information for business analysis. We will keep this information for a reasonable period. Where sensitive personal data has been disclosed, including any medical or criminal record information, ACE will also use this information for these purposes. ACE are entitled to ask about criminal convictions in relation to insurance risks. There is no obligation to provide ACE with details of any convictions which are spent under the terms of the Rehabilitation of Offenders Act ACE may also transfer certain information to countries that do not provide the same level of data protection as the UK for the above purposes. A contract will be in place to ensure the information transferred is protected. ACE may record telephone calls for quality control, fraud prevention and staff training purposes. When personal or sensitive data is supplied to ACE about third parties other than the Insured, both during the formation and performance of this policy, ACE assumes that those third parties consent to the supply of this information to ACE, to ACE processing this data, including sensitive personal data, and to the transfer of their information abroad. ACE will also assume that the supplier of the information is authorised to receive, on their behalf, any data protection notices. ACE may share personal and sensitive personal information with the following organisations for the purposes described above: our connected companies, service providers, agents and subcontractors including loss adjusters and claims investigators; our reinsurers who use this information to assess the terms of specific policies and to administer our insurance policies generally; other insurance companies about other insurance policies you may have; the police, other insurance companies, fraud reference agencies and other representative bodies in relation to the prevention and detection of fraudulent claims or as part of our money laundering checks. other representative bodies to prevent and detect fraudulent or exaggerated claims. As part of this we will share information about your claims with providers of software designed to assist in the detection of fraudulent claims. We may also use commercially available databases to prevent money laundering.

20 Other companies may contact these bodies for information to help them make decisions about insurance or similar services they provide to you. Individuals whose information has been supplied to ACE are entitled to a copy of that information on payment of a fee and to have any inaccuracies corrected. Such information is available by contacting the Data Protection Officer at 100, Leadenhall Street, London EC3A 3BP. We do not use personal information for marketing purposes, nor do we share it with any other company for marketing purposes, unless consent to do so has been received in writing from you.

21 Appendix 2: Institute Clauses 1/1/09 - INSTITUTE CARGO CLAUSES (A) RISKS COVERED Risks 1. This insurance covers all risks of loss of or damage to the subject-matter insured except as excluded by the provisions of Clauses 4, 5, 6 and 7 below. General Average 2. This insurance covers general average and salvage charges, adjusted or determined according to the contract of carriage and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 below. "Both to Blame Collision Clause" 3. This insurance indemnifies the Assured, in respect of any risk insured herein, against liability incurred under any Both to Blame Collision Clause in the contract of carriage. In the event of any claim by carriers under the said Clause, the Assured agree to notify the Insurers who shall have the right, at their own cost and expense, to defend the Assured against such claim. EXCLUSIONS 4. In no case shall this insurance cover 4.1 loss damage or expense attributable to wilful misconduct of the Assured 4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured 4.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subjectmatter insured to withstand the ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container and "employees" shall not include independent contractors) 4.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured 4.5 loss damage or expense caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above) 4.6 loss damage or expense caused by insolvency or financial default of the owners managers charterers or operators of the vessel where, at the time of loading of the subject-matter insured on board the vessel, 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 This exclusion shall not apply where the contract of insurance 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 4.7 loss damage or expense directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein unfitness of container or conveyance for the safe carriage of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading. 5.2 Exclusion above shall not apply where the contract of insurance 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. 5.3 The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subjectmatter insured to destination. 6. In no case shall this insurance cover loss damage or expense caused by 6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power 6.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat 6.3 derelict mines torpedoes bombs or other derelict weapons of war. 7. In no case shall this insurance cover loss damage or expense 7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions 7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions 7.3 caused by any act of terrorism being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted 7.4 caused by any person acting from a political, ideological or religious motive.

22 DURATION Transit Clause Subject to Clause 11 below, this insurance attaches from the time the subject-matter insured is first moved in the warehouse or at the place of storage (at the place named in the contract of insurance) for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit, continues during the ordinary course of transit and terminates either on completion of unloading from the carrying vehicle or other conveyance in or at the final warehouse or place of storage at the destination named in the contract of insurance, on completion of unloading from the carrying vehicle or other conveyance in or at any other warehouse or place of storage, whether prior to or at the destination named in the contract of insurance, which the Assured or their employees elect to use either for storage other than in the ordinary course of transit or for allocation or distribution, or when the Assured or their employees elect to use any carrying vehicle or other conveyance or any container for storage other than in the ordinary course of transit or on the expiry of 60 days after completion of discharge overside of the subject-matter insured from the oversea vessel at the final port of discharge, whichever shall first occur. 8.2 If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination of this insurance, the subject-matter insured is to be forwarded to a destination other than that to which it is insured, this insurance, whilst remaining subject to termination as provided in Clauses to 8.1.4, shall not extend beyond the time the subject-matter insured is first moved for the purpose of the commencement of transit to such other destination. 8.3 This insurance shall remain in force (subject to termination as provided for in Clauses to above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to carriers under the contract of carriage. Termination of Contract of Carriage 9. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before unloading of the subject-matter insured as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Insurers and continuation of cover is requested when this insurance shall remain in force, subject to an additional premium if required by the Insurers, either Change of Voyage 9.1 until the subject-matter insured is sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the subject-matter insured at such port or place, whichever shall first occur, or 9.2 if the subject-matter insured is forwarded within the said period of 60 days (or any agreed extension thereof) to the destination named in the contract of insurance or to any other destination, until terminated in accordance with the provisions of Clause 8 above Where, after attachment of this insurance, the destination is changed by the Assured, this must be notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such agreement being obtained cover may be provided but only if cover would have been available at a reasonable commercial market rate on reasonable market terms Where the subject-matter insured commences the transit contemplated by this insurance (in accordance with Clause 8.1), but, without the knowledge of the Assured or their employees the ship sails for another destination, this insurance will nevertheless be deemed to have attached at commencement of such transit. CLAIMS Insurable Interest In order to recover under this insurance the Assured must have an insurable interest in the subjectmatter insured at the time of the loss Subject to Clause 11.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Insurers were not. Forwarding Charges 12. Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter insured is covered under this insurance, the Insurers will reimburse the Assured 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. This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their employees. Constructive Total Loss 13. No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter insured to the destination to which it is insured would exceed its value on arrival.