Marine Cargo Policy. Contents. Policy Information Page 2. Complaints Page 2. Compensation Scheme Page 3. Policy Introduction Page 4

Transcription

1 Marine Cargo Policy

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3 FUSION Insurance Services Ltd Marine Cargo Policy Contents Policy Infmation Page 2 Complaints Page 2 Compensation Scheme Page 3 Policy Introduction Page 4 General Policy Definitions Page 5 General Policy Conditions Page 6 Section A Institute and Joint Cargo Committee Clauses Page 8 Section B Additional Policy Conditions Page 10 Section C Claims Conditions Page 14 General Policy Exceptions Page 16 1

4 Marine Cargo Policy Policy Infmation (not fming part of this Policy) This Policy has been prepared in accdance with your instructions. Please read it carefully to ensure that it meets your requirements. This Policy consists of:- a) the Policy Introduction which explains the basis on which the cover is provided b) the Schedule which shows who is the Insured, the Period of Insurance, which Insured Transits are operative, the premium, the sums insured and the relevant terms and conditions of insurance c) the General Policy Definitions which incpate definitions and terms that apply to the whole Policy me than one section of it d) General Policy Conditions to cover applying to the whole Policy e) General Policy Exceptions to cover applying to the whole Policy f) any Endsement(s) which might apply to the Policy individual sections and which incpate cover amendments extensions limitations and the like. Immediate notice should be given to the Underwriters of any changes that may affect the insurance provided by this Policy. Alteration in the cover required after issue of the Policy will be confirmed by separate Endsement(s) that should be filed with the Policy. Reference should be made to these Endsements and Policy to ascertain precise details of cover currently in fce. Complaints Fusion s goal is to give excellent service to all our customers, but we recognise that things do go wrong occasionally. We take all complaints we receive seriously and aim to resolve all our customers problems promptly. To ensure that we provide the kind of service you expect we welcome your feedback. We will recd and analyse your comments to make sure we continually improve the service we offer. What happens if you complain a) We will acknowledge your complaint within 2 wking days of receipt. b) We aim to resolve complaints within 5 wking days. c) Once an assessment and full investigation of your concern has been made we will respond with a decision. Most of our customers concerns can be resolved quickly, but occasionally me detailed enquiries are needed. If this is likely, we will contact you with an update and give you an expected date of response. This will not be beyond 20 wking days from when you first made your complaint. If you remain unhappy with the decision you receive from Fusion s local branch you may write to our Managing Direct. If you are still unhappy with the decision you may write to the Chief Executive of your insurer. If you are dissatisfied with the final decision you can refer the matter to the Financial Ombudsman Service (FOS). The FOS will only consider your complaint if you have given us the opptunity to resolve it and you are a private policyholder, a business with a group annual turnover of less than 1,000,000, a charity with an annual income of less than 1,000,000 a trustee of a trust with a net asset value of less than 1,000,000. Please follow the steps below. If however, we do not resolve your complaint within 40 wking days, the FOS will accept a direct referral. Whilst we are bound by the decision of the FOS, you are not. Following the complaint procedure does not affect your right to take legal action. 2

5 What you should do if you would like to complain. Following this complaints process will not affect your legal rights. The steps you should take if dissatisfied Step 1 Seek resolution by your insurance adviser usual Fusion point of contact If you are disappointed with any aspect of the handling of your insurance we would encourage you, in the first instance, to contact the manager concerned. You can write telephone whichever suits you, and ask your contact to review the problem. Step 2 Refer your complaint to Fusion s Managing Direct If you remain unhappy with the decision you receive, you should contact, with full details including policy number and/ claim number, the Managing Direct Fusion Insurance Services Limited 40 Mitre Street London EC3A 3DE Tel: Fax: managingdirect@fusioninsurance.co.uk Compensation Scheme The Underwriters of this insurance as defined in this Policy are covered by the Financial Services Compensation Scheme (FSCS). If they cannot meet their obligations, you may be entitled to compensation under this scheme depending on the type of insurance and the circumstances of the claim. You are covered f 100 per cent of the first 2,000 and 90 per cent of the remainder of the claim without any upper limit. However, f compulsy classes of insurance, you are covered f 100 per cent of the claim without any upper limit. Further infmation about compensation scheme arrangements is available from the FSCS. You can visit their website at write to Financial Services Compensation Scheme 7th Flo Lloyd s Chambers Ptsoken Street London E1 8BN Step 3 Refer your complaint to the Chief Executive of your insurer. If you are still unhappy with the decision you receive please write with full details including policy number and/ claim number, to Insurer Chief Executive c/o The Managing Direct 40 Mitre Street London EC3A 3DE Your crespondence will then be passed to the Chief Executive of the Insurer stated in your schedule. the address can be provided by Fusion Insurance Services on request. A review of the matter will then be carried out at a seni level and a final decision given. Step 4 Refer your complaint to the Financial Ombudsman Service If after making a complaint to Fusion and the Chief Executive of your insurer as set out above you are still unhappy and you feel the matter has not been resolved to your satisfaction, please contact the FOS at Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Tel

6 Policy Introduction Each Section of this Policy the Schedule and any Endsements together with this Policy Introduction and the General Policy Definitions Exceptions and Conditions shall be read as one document. Any wd expression given a specific meaning in:- 1) the Schedule any Policy Endsement this Policy Introduction and the General Policy Definitions and Conditions shall have the same meaning throughout the Policy unless specified otherwise. 2) an individual section any Endsement shall have only the same meaning throughout such section Endsement. In consideration of payment of the premium the Underwriters will indemnify the Insured within the terms Exceptions and Conditions of this Policy against loss damage expense in the manner described in the Schedule during the Period of Insurance any subsequent period f which the Underwriters agree to accept payment of Premium. Executive Direct Underwriting 4

7 General Policy Definitions (applicable to the whole Policy wherever these wds appear starting with a capital letter except where indicated otherwise) Agreed Value shall mean the value of the Goods fixed by the terms of the Policy. Assured shall have the same meaning as Insured and shall mean the person persons cpate body who has the benefit of the insurance granted under the Policy to whom any policy of insurance is assigned. Basis of Valuation shall mean the method of establishing the Agreed Value of the Goods f the purpose of agreeing the basis upon which premium is to be calculated and f claims adjustment purposes. Unless otherwise stated in the Schedule the following will apply if applicable: 1) impts/expts/cross voyages: cost, insurance and freight plus 10% and where applicable increased value by payment of duty and/ other similar charges if incurred. Maximum Value shall mean the maximum amount of Agreed Value of Goods that can be on any one Conveyance at any one Location at any one time. Measure of Indemnity shall mean the sum which can be recovered in respect of a loss by an Insured Peril covered by the Policy. Period of Insurance shall mean the period set out in the Schedule during which Underwriters insure the Goods on the terms of the Policy. Premium shall mean the amount of money paid to Underwriters to insure the Goods. Voyage Transit shall mean the Geographical movements f which cover is provided as shown in the Schedule beginning and ending in accdance with the appropriate Institute Clauses. Underwriters shall mean the insurers whose identity is stated in the General Endsement entitled Identity of Insurers attaching to the Schedule and whose proptionate liability will be detailed upon request. 2) inland transits: invoice price. 3) FOB CFR and similar expts: Insureds invoice value +10%. 4) stock: cost of replacement on the date of loss. 5) exhibitions and inter-company movements and other items not intended f sale: new items: new replacement value plus all carriage used items: current market value plus all carriage Unless otherwise declared to and agreed by Underwriters pri to known repted incident and included on the Schedule. Conveyance shall mean the method of transpt of the Goods f which cover is provided as shown in the Schedule. Endsement shall mean an alteration in writing to the terms of the Policy. Excess shall mean the amount noted in the Schedule to be deducted from any claim settlement. Goods shall mean the property insured being those types of Goods described in the Schedule f which cover is provided which are new unused and of recent manufacture unless otherwise described. It does not include Goods shipped on above deck unless Goods are in fully enclosed metal containers. Insured Peril shall mean those risks that are a direct cause of loss damage to the Goods and f which cover is provided. Location shall mean any one place building area in which Goods are consolidated (but not Conveyance) during the course of the Voyage Transit. 5

8 General Policy Conditions (applicable to the whole Policy except where indicated otherwise) Limit of Liability The liability of the Underwriters under this Policy in respect of any one accident series of accidents arising out of the same event shall not exceed the Maximum Value as stated in the Schedule. Basis of Claims Settlement In the event of loss damage to the Goods befe the insured has declared to Underwriters the Agreed Value shall be in accdance with the Basis of Valuation as stated in the Schedule. Basis of Premium The following bases of premium apply only if so described in the Schedule. 1) Declaration Basis Where the Schedule states that Premium is payable on declaration the Insured must provide declarations of shipments covering the specified period within 30 days of the expiry of such period to Underwriters. Should the Assured not provide the declarations then Underwriters may at their option: a) cancel the Policy from the date of the last shipment f which a declaration is received and b) make an assessment of outstanding Premium due based on the best infmation available of the declarations which the Insured should have declared and there will be due and owing to Underwriters a Premium based upon that assessment such Premium being due to Underwriters within 14 days of giving the notice of assessment. Notwithstanding the above it is not the intention of this insurance to prejudice the Insured following an unintentional omission err increct valuation description of the Goods Conveyance Voyage upon declaration to Underwriters of an individual shipment provided that notice is given to Underwriters within 14 days of discovery of any such omission err increct valuation description of the Goods. 2) Deposit Premium Basis The deposit Premium is that sum fixed at inception f the purpose of commencing cover. If the deposit Premium is stated as being a Minimum Premium this represents the lowest sum acceptable to Underwriters f the cover provided. If the Policy is cancelled lapses pri to the natural expiry Underwriters will be entitled to retain all the Minimum Premium. If the Schedule states that Premium is subject to adjustment the deposit Premium has been calculated based upon estimated shipments and is subject to adjustment. The Insured agree to provide a declaration of all actual shipments made within 30 days of the expiry of the Period of Insurance. Should the Insured not provide a declaration then Underwriters may at their option assess on the basis of the infmation befe them the shipments that they calculate have been made and assess Premiums on that basis. Underwriters shall give notice of assessments made and the Premium due and the Insured will be obliged to pay Underwriters within 14 days of the date of such notice. 3) Flat Premium Basis Where the Premium is stated on the Schedule as flat this is a non adjustable fixed amount based on the iginal declared Agreed Value as may be agreed by Underwriters. Cancellation This Policy may also be cancelled by the Underwriter the Insured at any time by written notice given as follows: 1) 7 days notice in respect of risks covered by the Institute War Clauses and Institute Strikes Clauses but 2) 48 hours in respect of shipments to from the USA in respect of risks covered by the Institute Strikes Clauses and 3) 30 days notice in respect of all other risks. Law and Jurisdiction Any dispute concerning the interpretation of the terms of this Policy shall be resolved in accdance with the laws of the territy in which this Policy is issued and that all and any disputes to be referred to the exclusive jurisdiction of the High Court of Justice in London. Other Insurances Underwriters shall not pay f any loss damage if at the time of the occurrence the Goods are would but f this insurance, be covered by any other insurance. If however the Agreed Value of the Goods covered by this Policy is greater than the value insured by such other insurance Underwriters shall subject to the Warranties and other terms of this Policy pay the difference. Marine Insurance Act 1906 The conditions and warranties prescribed by this Act shall apply to all the Voyages covered by this Policy. 6

9 General Policy Conditions Institute Clauses The Institute Clauses referred to are those current at the inception of this insurance and should the Clauses be revised during the Period of Insurance and provided that Underwriters give 30 days written notice thereof then the revised Institute Clauses shall apply to Goods first sent fward after the date of expiry of the notice. 7

10 Section A Institute and Joint Cargo Committee Clauses Unless otherwise stated in the Schedule the following clauses are deemed to fm part of this Policy. The cover provided by these clauses is subject to the Additional Policy Conditions found under Section B. Institute Clauses Institute Cargo Clauses (A) CL.252 Institute Cargo Clauses (Air) CL.259 Institute War Clauses (Cargo) CL.255 Institute War Clauses (Air Cargo) CL.258 Institute War Clauses (Sendings by Post) CL.257 Institute Strikes Clauses (Cargo) CL.256 Institute Strikes Clauses (Air Cargo) CL.260 Institute Classification Clause CL.354 Institute Replacement Clause CL.161 Institute Radioactive Contamination, Chemical, Biological, Bio-chemical, Electromagnetic Weapons Clause CL.370 Institute Cyber Attack Exclusion Clause CL.380 F full details of these and any other Institute Clause to which the insurance is subject please refer to our website Joint Cargo Committee Clauses Cargo ISM Endsement JC98/019 Applicable to shipments on board Ro-Ro passenger ferries. Applicable with effect from 1st July 1998 to shipments on board:- i) passenger vessels transpting me than 12 passengers ii) and oil tankers, chemical tankers, gas carriers, bulk carriers and cargo high speed craft of 500 gt me. Applicable with effect from 1st July 2002 to shipments on board all other cargo ships and mobile offshe drilling units of 500 gt me. In no case shall this insurance cover loss damage where the Goods are carried by a vessel that is not ISM Code certified whose owners operats do not hold an ISM Code Document of Compliance when, at the time of loading of the Goods on board the vessel the Insured was aware in the dinary course of business should have been aware:- a) either that such vessel was not certified in accdance with the ISM Code; b) that a current Document of Compliance is not held by her owners operats as required under the SOLAS Convention 1974 as amended. This exclusion shall not apply where this insurance has been assigned to the party claiming hereunder who has bought agreed to buy the Goods in good faith under a binding contract. Cargo ISM Fwarding Charges Clause (F use only with JCC Cargo ISM Endsement JC98/019) This insurance is extended to reimburse the Insured f any extra charges properly and reasonably incurred in unloading, sting and fwarding the Goods to the destination to which it is insured hereunder following release of cargo from a vessel arrested detained at diverted to any other pt place (other than the intended pt of destination) where the voyage is terminated due either:- a) to such vessel not being certified in accdance with the ISM code b) to a current document of Compliance not being held by her owners operats as required under the SOLAS Convention 1974 as amended. This clause which does not apply to General Average Salvage Salvage Charges is subject to all other terms conditions and exclusions contained in the Policy. Termination Of Transit Clause (Terrism) This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. It is agreed that in so far as this Policy covers loss of damage to the Goods caused by any terrist (that f the purpose of this clause shall mean any person acting on behalf of in connection with any ganisation that is directed towards the overthrowing influencing of any government de jure de facto by fce violence) such cover is conditional upon the Goods being in the dinary course of transit and in any event shall terminate: Either 1.1 As per the transit clauses contained within the Policy 1.2 on delivery to the Consignee s other final warehouse place of stage at the destination named herein 8

11 Section A Institute and Joint Cargo Committee Clauses 1.3 on delivery to any other warehouse place of stage whether pri to at the destination named herein which the Insured elect to use either f stage other than in the dinary course of transit f allocation distribution 1.4 in respect of marine transits on the expiry of 60 days after completion of discharge overside of the Goods hereby insured from the overseas vessel at the final pt of discharge 1.5 in respect of air transits, on the expiry of 30 days after unloading the Goods from the aircraft at the final place of discharge whichever shall first occur. If this Policy the Clauses referred to herein specifically provide cover f inland other further transits following on from stage termination as provided f above cover will re-attach and continues during the dinary course of that transit terminating again in accdance with clause 1.1 to 1.5 above. 9

12 Section B Additional Policy Conditions 1. Additional Discharge Expenses In the event of loss damage to the Goods giving rise to a claim under this Policy Underwriters shall pay any additional expenses necessarily and reasonably incurred in discharging handling sting unloading transpting sound and damaged Goods and to reload and fward the Goods to the destination by any means whatsoever. Underwriters shall be credited with the recovery where such charges are recoverable either in general average from third party carriers. 2. Brands Clause In circumstances where the damaged Goods bear the Insured name brand trademark the Insured can decide a) that the Goods are unfit f marketing other disposal in which event Underwriters will pay the Agreed Value upon destruction b) to return the damaged Goods to the facty in which event Underwriters will pay all reasonable costs associated with returning the Goods to a saleable condition c) to sell the Goods after removal of the name brand trademark in which event Underwriters will pay the Agreed Value plus reasonable costs less the proceeds of sale. Subject overall to the Maximum Value as shown on the Schedule. 3. Buyers Interest Clause Underwriters will pay f loss damage to the Goods that would otherwise be recoverable under this Policy if 1) the seller fails to arrange insurance in accdance with the contractual obligations 2) the terms of any insurance so arranged are me restrictive than the coverage and Agreed Value affded by this Policy. Underwriters will regard the cover as attaching at the commencement of transit but will only be responsible f settling claims provided 1) there is physical loss damage to the Goods and the Insured 2) has suffered a pecuniary loss and 3) has taken all reasonable steps to invoke the contract of sale and the obligations under it and 4) has attempted to recover the loss from the seller the seller s insurers and 5) has not divulged the existence of this insurance to the seller to the seller s insurers and 6) subrogates to Underwriters all rights and benefits against carriers and other third parties. 4. Concealed Damage Clause It is agreed that any loss damage discovered on opening containers cases and packages shall be deemed to have occurred during the Voyage (and irrespective of attachment of the Insured s interest) and shall be paid f accdingly unless conclusive proof to the contrary be established. It is a condition precedent of this Policy that: a) any containers cases and packages showing signs of loss damage are to be opened immediately on the termination of the Voyage and b) the time between delivery of the Goods to the receiver and the notification of the loss damage to Underwriters does not exceed 60 days. 5. Delays beyond Insured s Control If the Goods are threatened to become uninsured by reason of a delay that terminates cover under the Transit Clause of the Institute Cargo Clause such delay being beyond the Insured s control Underwriters agree to hold covered at a rate and on conditions to be arranged provided notice is given to Underwriters within 14 days on realisation of the delay. 6. Destruction by Governmental Authities Underwriters will pay f loss damage to the Goods directly caused by Governmental authities acting f the public welfare to prevent mitigate a pollution hazard threat provided a recoverable claim would have resulted under the Policy had the Goods been lost damaged as a result of the occurrence giving rise to the pollution hazard threat. 7. Duty Provided the value of duty has been added to the Agreed Value and declared to Underwriters 1) in the event of loss damage to the Goods that is recoverable under this Policy Underwriters will pay any excise duty that the Insured is unable to recover. 10

13 Section B Additional Policy Conditions 2) cover is also provided f duty relating to general average salvage and salvage charges arising pri to the duty becoming payable. In calculating the claim f duty credit shall be given to Underwriters f any rebate refund of duty that may become allowable. 8. Exhibitions and Demonstrations Provided the Schedule shows that exhibitions are covered Underwriters will pay f loss damage to the Goods that occurs in transit to and from the exhibition demonstration site and while at the site including during the period of packing and unpacking assembly and dismantling. In addition to the Goods Underwriters will also cover display materials stands fixtures fittings and equipment but excluding mobile phones plasma screens and laptop computers unless specifically mentioned on the Schedule. It is a condition precedent of this extension to the cover provided that the Goods are repacked after the exhibition to the same standard as applied to the iginal transit and such re packing is to be supervised by a responsible official of the Insured their appointed agent. Underwriters will pay up to 5,000 f exhibition fees and expenses when the Goods are lost damaged in transit to the exhibition such loss damage being recoverable under this Policy and in consequence attendance at the exhibition is cancelled. Underwriters will not pay f loss damage directly arising from the 1) use testing demonstration of the Goods 2) arising from theft pilferage unless following violent and fcible entry into exit from the exhibition building. 9. FOB Clause The Transit Clause of the Institute Cargo Clauses Duration (No 8) as referred to in the Policy is amended to read:- This insurance attaches from the time the Goods leave the warehouse place of stage f the commencement of transit and continues during the dinary course of transit until delivered on board the expt Vessel Aircraft at the Pt Airpt of shipment including the risk whilst remaining on quays wharfs and warehouses (other than packers warehouses) sheds whilst awaiting shipment f a period of not exceeding 30 days. Any period in excess of 30 days held covered at rates and conditions to be agreed subject to notice to Underwriters within 14 days of the expiry of the preceding 30 day period. 10. FOB and CFR Purchases Clause Irrespective of the terms of purchase that make the consign responsible f insurance up to the pt of despatch this Policy attaches f the benefit of the named insured in accdance with Institute Cargo Clauses Transit Clause 8. Underwriters shall be subrogated to all rights against the Supplier Supplier s Insurers other third parties and the Insured undertakes to provide Underwriters with every assistance as may be required. It is a condition precedent to Underwriter s liability under this clause that the existence of this extension is not divulged to the consign. 11. Fumigation Expenses Underwriters will pay f fumigation expenses incurred to minimise avoid loss damage recoverable under this Policy. Underwriters will also pay f loss damage arising from fumigation provided that such fumigation is not customary. 12. General Average General average and salvage charges shall be payable under this Policy in full without reference to insured and contributy values. 13. Loading and Unloading Clause Underwriters will extend the Transit Clause of the Institute Cargo Clauses to include the period during loading and unloading of the Goods onto from the Conveyance. 14. Non-Delivery Losses Provided the insured has taken all reasonable steps to locate the goods in the event of a claim f the non-delivery of Goods Underwriters agree to make settlement as if the Goods had been lost if the Goods have not been located after the expiration of 60 days counting from the date of arrival of the overseas vessel at the pt of discharge 30 days counting from the date of arrival of the aircraft at the airpt of discharge 60 days counting from the date that the Goods should have arrived at final destination via land Conveyances as applicable. 15. Own Vehicle Security Clause (f Conveyances owned operated by the Insured). Definitions (applicable to this condition and no other) Conveyance shall mean any road vehicle trailer combination thereof Unattended shall mean whenever the Insured is absent from the Conveyance and fails to keep the Conveyance under observation with a reasonable prospect of preventing any unauthised interference 11

14 Section B Additional Policy Conditions Underwriters shall not be liable f loss damage caused by theft from any attempted theft whilst the Goods are on contained in any Unattended Conveyance owned operated by the Insured: a) at any time place unless all dos and openings are locked and the key is removed and windows and other means of access adequately and properly secured and any audible alarm and immobiliser is set in operation and in addition; b) at any time after the completion of the wking day of the driver and in any event between the hours of 2100 hours when the Conveyance was last occupied whichever be the earlier, and 0600 hours until the Conveyance is first used whichever is the later on non-wking days unless the Conveyance is: i) garaged in a fully enclosed and securely locked building of substantial construction ii) iii) iv) in a secure park under permanent human surveillance and with all gates and other entrances locked in any Location agreed by Underwriters in writing 16. Packing Clause in a public car park while under constant surveillance by the driver other responsible person authised by the Insured. Cover will continue if the Goods are removed from the Conveyance to a private dwelling house hotel room other secure premises and further providing that loss damage follows fcible and violent entry precedes fcible and violent exit from the place from where the Goods are removed. The Insured shall take all reasonable care to ensure that whenever possible Goods are kept in the boot secure compartment of an Unattended Conveyance and in respect of estate-type Conveyances the Goods must be covered over and hidden from view and if the Conveyance is fitted with an audible alarm and immobiliser it is set in operation at any time the Conveyance is left Unattended. In the event of a claim being made f loss damage which is alleged to be contributed to by insufficiency unsuitability of packing preparation of the Goods Underwriters hereby agree that they will not use such alleged insufficiency unsuitability as a defence against the claim in any case where the packing preparation was carried out by a party other than the named Insured and the insufficiency unsuitability arose entirely without the named Insured s knowledge. F the purpose of the clause Packing shall be deemed to include stowage in a container and other similar intermodal methods of unit load. The Insured agrees to assist Underwriters in all respects to pursue the rights of recovery against sellers and other responsible third parties. The above agreement is not to interfere with rights of subrogation against packers and their insurers. 17. Packing Costs Underwriters will pay the reasonable costs of repacking re-bailing re-bagging re-cartoning and repalletising where Goods packing have sustained damage by an Insured Peril and where such repacking is considered necessary to safeguard the Goods during any further Voyage covered by the Policy. 18. Packers Premises Underwriters will insure the Goods f a period of up to 30 days whilst at the premises of Packers and Consolidats f the purposes of packing consolidation. Underwriters agree that such packing will not interrupt the dinary course of transit provided the Goods are suitably packed f transit to the place of packing in accdance with Institute Cargo Clauses. Underwriters will not be liable f any loss damage to the Goods arising from the process of packing. 19. Presentation Packing Underwriters will pay the reasonable costs of repair the reasonable costs of replacement of any presentation packing of the Goods lost damaged during the Voyage provided that the presentation packing is itself protected to withstand the nmal rigours of the Voyage. 20. Removal of Debris Underwriters agree to pay the costs and expenses reasonably incurred in connection with: a) removal of debris and destruction of damaged Goods and b) dismantling and demolishing the damaged Goods and c) shing up and propping and 12

15 Section B Additional Policy Conditions d) the transfer of the Goods from one Conveyance to another in the event of an accident to the iginal Conveyance where there has been loss damage to the Goods ( but f the action taken there would be loss damage to the Goods which would be recoverable hereunder) but excluding: i) any expense incurred in consequence of to prevent mitigate pollution contamination any threat liability thereof; ii) iii) the cost of removal of the Goods from any vessel craft; costs incurred in respect of obligations under pollution statutes the actions of Governmental other executive body. In no case shall Underwriters be liable under this clause f me than 10% of the proptionate insured value under this Policy of the damaged Goods. 21. Returned Goods If the Goods are insured f their outward Voyage and are unexpectedly returned to the Insured Underwriters will consider cover as being continuous provided that such return commences within 30 days from the time of delivery the Goods remain unused n subject to any process and the insurable interest has remained with reverted to the Insured. Cover will be in accdance with the Policy terms but excluding 1) rust oxidisation and discolouration 2) electrical and mechanical derangement unless caused by a proven Insured Peril during the Voyage. 22. Segregation Clause In the event of signs of damage to Goods resulting from an Insured Peril necessitating segregation and sting the damaged from the undamaged Underwriters shall pay the reasonable costs incurred. 23. Shtage from Containers Clause In respect of shipments in full containers provided documentary evidence is produced to substantiate the quantity loaded into the container the fact that the container s seal is intact at unloading point shall not invalidate claims f theft pilferage shtage and non delivery. 24. Seller s Interest Clause Underwriters agree to cover the interest of the Insured as the seller of the Goods when the terms of sale do not place responsibility upon the Insured f insurance up to arrival at the intended pt of discharge. Cover will apply if: 1) title reverts to the Insured by reason of the buyer failing to accept being prevented from accepting the Goods take up the documents of title pay f the Goods as contracted and invoiced, 2) the Insured exercises a lien on the Goods interrupts the transit suspends the contract of sale in der to safeguard the Insured s interest This Policy will remain in fce until 1) the Goods are accepted by the buyer 2) the Goods are sold to an alternative buyer 3) the Goods are returned to the Insured 4) termination in accdance with Institute Cargo Clauses unless Underwriters receive an advice of a contingency likely to cause this Clause to become operative in which case cover will continue f up to 90 days from the date of arrival of the overseas vessel aircraft at the pt of discharge whichever shall first occur. Providing that the Insured must 1) notify Underwriters immediately of any circumstance that may give rise to the operation of this Clause 2) take all reasonable steps to protect the Goods to enfce the contract of sale to expedite an alternative sale to arrange the return of the Goods 3) not disclose the existence of this insurance to any buyer interested party 4) pay an initial Premium as stated on The Schedule of Rates and upon the mentioned contingencies pay an appropriate additional Premium to be agreed 5) subrogate to Underwriters all rights and benefits of any action that the Insured may possess acquire against the buyer the buyer s insurers carriers and other third parties. 13

16 Section C Claims Conditions 1 Insured Person In this Section, Insured Person means any person(s) whose Goods are covered by this Policy. 2 Notice The relevant Insured Person must: i) notify Underwriters immediately of any occurrence which might give rise to a claim under this Policy; ii) iii) iv) hold liable any responsible carrier bailee other third party in accdance with their particular terms of trade; provide Underwriters with a written rept of the occurrence as soon as possible; notify the Police as soon as possible of any theft malicious damage other crime involving the Goods; 3 Claims Procedure The Insured Person and their agents shall take such measures as may be reasonable f the purposes of averting minimising loss damage and to ensure that all rights against the carriers bailees and other third parties are properly preserved and exercised. In particular the Insured Person their agents are required: 1. To claim immediately on the carriers pt authities other bailees f any missing packages. 2. In no circumstances except under written protest to give clean receipts where goods are in doubtful condition. 3. When delivery is made by container to ensure that the container and its seals are examined immediately by a responsible official of the Insured Person. If the container is delivered damaged with seals broken missing with seals other than as stated in the shipping document the Insured Person the agents shall endse the delivery receipt accdingly and to retain all defective irregular seals f subsequent identification. 4. To apply immediately f survey by carriers other bailees representatives if any loss damage is apparent and claim on the carriers other bailees f any actual loss damage found at such survey. 5. To give notice in writing to the carriers other bailees within 3 days of delivery if the loss damage is not apparent at the time of taking delivery. Note: The Insured Person their agents are recommended to make themselves familiar with the Regulations of the Pt Authity at the Pt of Discharge and the conditions of trade used by the carriers and other relevant third parties. 4 Documentation of Claims The Insured Person their agents must submit all available suppting documentation without delay to Underwriters to their brokers including when applicable: 1. Original policy of insurance. 2. Original copy shipping invoices together with Shipping Specification and weight notes. 3. Original Bill of Lading and other contract of carriage. 4. Survey Rept other documentary evidence to show the extent of the loss damage. 5. Landing Account and weight notes to final destination. 6. Crespondence exchanged with the carriers and other parties regarding their liability f the loss damage. 7. Receipts issued during transit particularly those evidencing shtage damage. 5 Repair Underwriters shall have the right to decide whether the damaged Goods are to be repaired. 6 Legal Proceedings a) Underwriters shall have the right and at their expense:- i) to commence take over and conduct the defence of any claim against an Insured Person arising out of an occurrence which might give rise to a claim under this Policy; ii) iii) to commence take over and conduct any claim brought in the name of the Insured Person to recover sums which are which might be payable under this Policy; to commence take over and conduct the representation of an Insured Person at any inquest enquiry similar proceeding, which might give rise to a claim under this Policy. b) The Insured Person shall give Underwriters such assistance as they may reasonably request f the purposes of exercising their rights under this Policy. c) The Insured Person must pass on to Underwriters all communications from third parties relating to any matter which might give rise to a claim under this Policy immediately and unanswered. 14

17 Section C Claims Conditions d) The Insured Person must not without the pri written consent of Underwriters i) admit liability; ii) agree to accept an offer of settlement from a third party which might give rise to a claim under this Policy. 8 Excess In all cases of loss damage less the Excess as stated in the schedule. 7 Claims Amount Payable The amount payable in the event of loss damage to Goods shall be as follows. 1 Total Loss Underwriters shall pay the Agreed Value of the Goods if: i) they are totally lost destroyed; ii) the cost of recovering and repairing the Goods shall exceed the Agreed Value; In the event of Constructive Total Loss Caused by Loss of Use iii) the Insured Person is deprived of the free use and disposal of the Goods f a period of 12 consecutive months commencing during the Period of Insurance such earlier period as Underwriters agree except in cases of theft when the period shall be a reasonable period depending upon the facts of each individual case. 2 Partial Loss In respect of partial loss damage Underwriters will pay: i) where part of the Goods are totally lost such proption of the Agreed Value fixed by this Policy as the sound value of that part lost bears to the sound value of the whole ii) at Underwriters option either; a) where the whole any part of the Goods has been delivered damaged at their destination such proption of the Agreed Value as the difference between the gross sound and damaged values at the place of arrival bears to the gross sound value; b) the reasonable cost of recovering the Goods and the reasonable cost of effecting repair. 15

18 General Policy Exceptions Date Recognition Clause The Underwriters shall not provide indemnity under this Policy in respect of any loss destruction damage directly indirectly caused contributed to by consisting of arising from the failure of any a) computer data processing equipment media microchip integrated circuit similar device b) other equipment system f processing sting retrieving data c) computer software whether the property of the insured not to i) recognise crectly any date as its true calendar date ii) capture save retain crectly manipulate interpret process any data infmation command instruction as a result of treating any date otherwise than as its true calendar date 2. Claims f general average and salvage charges adjusted determined accding to the contract of affreightment the governing law and practice incurred to avoid in connection with the avoidance of loss from any cause except those excluded elsewhere in this insurance. Insolvency Exclusion Clause JC 93 It is hereby agreed that the exclusion loss damage expense arising from insolvency financial default of the owners managers charterers operats of the vessel as incpated in the Institute Clauses herein is amended to read as follows: In no case shall this insurance cover loss damage expense arising from insolvency financial default of the owners managers charterers operats of the vessel where the Insured is unable to show that pri to the loading of the Goods on board the vessel all reasonable practicable and prudent measures were taken by the Insured their servants and agents to establish the financial solvency of the party in default. iii) capture save retain crectly process any data as a result of the operation of any programmed command which causes the loss the inability to capture save retain crectly to process such data on after any date. This exclusion does not apply to: 1. Claims f loss of damage to the Goods reasonably attributable to: i) fire explosion ii) iii) iv) vessel craft being stranded grounded sunk capsized overturning derailment of land conveyance collision contact of vessel craft aircraft conveyance with any external object other than water v) total loss of aircraft in flight vi) vii) discharge of cargo at a pt of distress total loss of any package lost overboard dropped whilst loading on to unloading from vessel craft aircraft viii) general average sacrifice ix) jettison washing overboard x) entry of sea lake river water into vessel craft hold conveyance lift van place of stage 16

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20 Ref: FMC001 (03/06) Fusion Insurance Services Limited is authised and regulated by the Financial Services Authity FSA No Fusion Insurance is a coverholder and acts f certain leading insurers Registered Office: 40 Mitre Street London EC3A 3DE Company No England