國泰產物 Aviation Hull War and Allied Perils Insurance

備查文號 :106.03.28 國產字第 1060300168 號免費申訴電話 :0800-036-599 國泰產物 Aviation Hull War and Allied Perils Insurance 國泰產物 AVIATION HULL WAR AND ALLIED PERILS INSURANCE THE SCHEDULE Insurance Number: XXXXXXXX Assured: XXXXXXXXX their subsidiary, affiliated or associated companies now in existence or as may be hereafter formed or acquired and including their successors, jointly and severally for their respective rights and interests. Address of Assured: XXXXXXXXXXX Additional Assured(s): - Approved Lienholder(s) for Breach of Warranty protection: - Aircraft hereby insured: XXXXXXXXXXXXXXXXX *Subject to a maximum Agreed Value of USD XXXXX (or currency equivalent) any one Aircraft Geographical Limits: Worldwide, but in respect of Possessed Coverage of Section Three, worldwide subject to KILN GEOGRAPHIC AREAS EXCLUSION CLAUSE (03.08.11) LSW617G 1. Notwithstanding any provisions to the contrary and subject to clauses 2 and 3 below, this Insurance excludes any loss, damage or expense howsoever occurring within the geographical limits of any of the following countries and regions: 6

(a) Algeria, Burundi, Cabinda, Central African Republic, Congo, Democratic Republic of Congo, Eritrea, Ethiopia, Ivory Coast, Liberia, Mauritania, Nigeria, Somalia, The Republic of Sudan, South Sudan, Mali (b) (c) (d) (e) (f) Colombia, Ecuador, Peru, Cuba Afghanistan, Jammu & Kashmir, Myanmar, North Korea, Pakistan. Georgia, Nagorno-Karabakh, North Caucasian Federal District, Ukraine Iran, Iraq, Libya, Syria, Yemen, Lebanon Any country where the operation of the insured Aircraft is in breach of United Nations sanctions. 2. However coverage pursuant to this Insurance is granted: (a) for the overflight of any excluded country where the flight is within an internationally recognised air corridor and is performed in accordance with I.C.A.O. recommendations; or (b) in circumstances where an insured Aircraft has landed in an excluded country as a direct consequence and exclusively as a result of force majeure. 3. Any excluded country may be covered by Insurers at terms to be agreed by the Leading Insurer only prior to flight. 03/08/11 LSW617G (amended) Excluding Confiscation, etcetera by Government(s) of: None - Coverage is extended to include confiscation/requisition by government of registry. Period of Insurance: From: XXXXXXXXXXX To: XXXXXXXXXXX both days Inclusive Local Standard Time at the above address of the Insured. Extortion and Hi-jack Expenses Limit of Insurance: Maximum XX% of USD XXXXX any one loss and in all (Warranted remaining XX% uninsured). Premium: As Agreed Immediate notice of changes in risk or of circumstances likely to give rise to a loss hereunder to be communicated to: Cathay Century Insurance Co., Ltd. 7

Address: 7F, No.296, Jen-Ai Road, Sec. 4, Taipei, Taiwan, Republic of China TEL: +886-2-2755-1299 FAX: +886-2-2709-3656 Dated: XXXXXXXXXX 8

AVIATION HULL WAR AND ALLIED PERILS INSURANCE SECTION ONE: LOSS OF OR DAMAGE TO AIRCRAFT Subject to the terms, conditions and limitations set out below, this Insurance covers loss of or damage to the Aircraft stated in the Schedule against claims excluded from the Assured s Hull All Risks Insurance as caused by: (a) (b) (c) (d) (e) (f) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power. Strikes, riots, civil commotions or labour disturbances. Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. Any malicious act or act of sabotage. Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority. Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Assured. For the purpose of this paragraph (f) only, an aircraft is considered to be in flight at any time from the moment when all its external doors are closed following embarkation until the moment when any such door is opened for disembarkation or when the aircraft is in motion. A rotor-wing aircraft shall be deemed to be in flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation. Furthermore this Insurance covers claims excluded from the Hull All Risks Insurance from occurrences whilst the Aircraft is outside the control of the Assured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Assured on the safe return of the Aircraft to the Assured at an airfield not excluded by the geographical limits of this Insurance, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress). SECTION TWO: EXTORTION AND HI-JACK EXPENSES 1. This Insurance will also indemnify the Assured subject to the terms, conditions, exclusions and limitations set out below, and up to the limit stated in the Schedule, for 90% of any payment properly made in respect of: (a) (b) threats against any Aircraft stated in the Schedule or its passengers or crew or ransom following kidnap of made during the currency of this Insurance. extra expenses necessarily incurred following confiscation, etcetera (as Section One clause (e)) or hi-jacking, etcetera (as Section One clause (f)) of any Aircraft stated in the Schedule. 9

2. No cover will be provided under this Section of the Insurance in any territory where such insurance is not lawful, and the Assured is at all times responsible for ensuring that no arrangements of any kind are made which are not permitted by the proper authorities. SECTION THREE: GENERAL EXCLUSIONS This Insurance excludes loss, damage or expense caused by one or any combinations of any of the following: (a) (b) (c) war (whether there be a declaration of war or not) between any of the following States: the United Kingdom, the United States of America, France, the Russian Federation, the People s Republic of China; nevertheless, if any Aircraft is in the air when an outbreak of such war occurs, this exclusion shall not apply in respect of such Aircraft until the said Aircraft has completed its first landing thereafter; confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the authority of the Government(s) stated in the Schedule, or any public or local authority under its jurisdiction; the emission, discharge, release or escape of any chemical, biological or biochemical materials or the threat of same but this exclusion shall not apply; (i) if such materials are used or threatened to be used solely and directly in: 1. the Hi-jacking, unlawful seizure or wrongful exercise of control of an Aircraft in flight and then only in respect of loss of or damage to such Aircraft the subject of a valid claim under clause (f) Section One above; or 2. any threat against an Aircraft stated in the Schedule or its passengers or crew and then only in respect of payments as are insured under Section Two above; (ii) other than as provided for in sub-paragraph 1 above, to loss of or damage to an Aircraft if the use of such materials is hostile and originates solely and directly; 1. on board such Aircraft, whether it is on the ground or in the air. or 2. external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft s wheels are not in contact with the ground. Any emission, discharge, release or escape originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Insurance. (d) (e) (f) any debt, failure to provide bond or security or any other financial cause under court order or otherwise; the repossession or attempted repossession of the Aircraft either by any title holder, or arising out of any contractual agreement to which any Assured protected under this Insurance may be party; delay, loss of use, or except as specifically provided in Section Two any other consequential loss; whether following upon loss of or damage to the Aircraft or otherwise. 10

(g) any use, hostile or otherwise, of radioactive contamination or matter but this exclusion shall not apply to loss of or damage to an Aircraft if such use is hostile and originates solely and directly; (i) (ii) on board such Aircraft, whether it is on the ground or in the air, or external to such Aircraft and causes physical damage to the Aircraft whilst the Aircraft s wheels are no longer in contact with the ground Any such use originating external to the Aircraft that causes damage to the Aircraft as a result of contamination without other physical damage to the Aircraft exterior is not covered by this Insurance. (h) (i) any use, hostile or otherwise, of an electromagnetic pulse but this exclusion shall not apply to loss of or damage to an Aircraft if such use originates solely and directly on board such Aircraft, whether it is on the ground or in the air. any detonation, hostile or otherwise, of any device employing atomic or nuclear fission and/or fusion or other like reaction, and notwithstanding (g) and (h) above, any radioactive contamination and electromagnetic pulse resulting directly from such detonation is also excluded by this Insurance. SECTION FOUR: GENERAL CONDITIONS 1. This Insurance is subject to the same warranties, terms and conditions (except as regards the premium, the obligations to investigate and defend, the renewal agreement (if any), the amount of deductible or self insurance provision where applicable AND EXCEPT AS OTHERWISE PROVIDED HEREIN) as are contained in or may be added to the Assured s Hull All Risks Insurance. 2. Should there be any Material Change in the nature or area of the Assured s operations, the Assured shall give immediate notice of such Change to the Insurers; no claim arising subsequent to a Material Change over which the Assured had control shall be recoverable hereunder unless such change has been accepted by the Insurers. Material Change shall be understood to mean any change in the operation of the Assured which might reasonably be regarded by the Insurers as increasing their risk in degree or frequency, or reducing possibilities of recovery or subrogation. 3. The due observance and fulfilment of the terms, provisions, conditions and endorsements of this Insurance shall be conditions precedent to any liability of the Insurers to make any payment under this Insurance: in particular the Assured should use all reasonable efforts to ensure that he complies and continues to comply with the laws (local or otherwise) of any country within whose jurisdiction the Aircraft may be, and to obtain all permits necessary for the lawful operation of the Aircraft. 4. Subject always to the provisions of Section Five, and the Schedule, Insurers hereon agree to follow the Hull All Risks Insurance in respect of Breach of Warranty Cover, Hold Harmless Agreements, Additional Insureds, Waivers of Rights of Subrogation, Joint Insureds, Loss Payees and other contractual agreements. 11

SECTION FIVE: CANCELLATION REVISION AND AUTOMATIC TERMINATION Amendment of 1. (a) Insurers may give notice, effective on the expiry of Terms or Cancellation 7 days from midnight G.M.T. on the day on which notice is issued, to review the rate of premium and/or the geographical limits. In the event of the review of the rate of premium and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Insurance shall become cancelled at that date. Automatic Review of Terms or Cancellation (b) Notwithstanding 1(a) above, this Insurance is subject to automatic review by Insurers of the rate of premium and/or conditions and/or geographical limits effective on the expiry of 7 days from the time of any hostile detonation of any device including any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the insured Aircraft may be directly affected. In the event of the review of the rate of premium and/or conditions and/or geographical limits not being accepted by the Assured then at the expiry of the said 7 days, this Insurance shall become cancelled at that date. Cancellation by Notice (c) This Insurance may be cancelled by the Assured or Insurers giving notice not less than 7 days prior to the end of each period of 3 months from inception. Automatic Termination 2. Whether or not such notice of cancellation has been given the coverage afforded by paragraph (a) of Section One of this Insurance shall TERMINATE AUTOMATICALLY Upon the outbreak of war (whether there be a declaration of war or not) between any of the following States, namely, the United Kingdom, the United States of America, France, the Russian Federation, the People s Republic of China. PROVIDED THAT if the Aircraft is in the air when such outbreak of war occurs then this insurance, subject to its terms and conditions and provided not otherwise cancelled, terminated or suspended, will be continued in respect of such Aircraft until the said Aircraft has completed its first landing thereafter. 04/06 LSW555D (Amended) 12

ENDORSEMENTS With effect from inception, and subject to Insurance terms, conditions, limitations and exclusions, the following shall apply: NUMBER ONE 1. Each Insured deemed a separate insurance Each Insured is deemed to be the subject of a separate insurance. Loss record and aggregate limits, apply separately to each Insured. 2. Contractual Agreements Insurers agree to include, if required, provisions of manufacturers, purchase, maintenance, technical support agreements as may be agreed by the Insured in the course of their business. Coverage hereon shall extend to include the provisions of financing and leasing agreements in respect of the Insured's aircraft (including 'breach of warranty' cover) in accordance with Airline Finance/Lease Contract Endorsement AVN67B or such other endorsement as may be agreed under the Insured's Hull All Risks Insurance. Cancellation s hereon being paramount. 3. Automatic additions and deletions Insurers agree to automatic additions and deletions to or from the Schedule of Aircraft to follow the Insured's Hull All Risks Insurance with pro rata premium adjustment at expiry. 4. Spares coverage Insurers agree to include coverage under Section One for aircraft spare engines, spare parts, components and equipment and ground support equipment used in connection with aircraft being the property of the Insured or the property of others whilst such property is in the care, custody or control of the Insured or for which the Insured has agreed to be responsible. Sum Insured USD 30,000,000 any one occurrence. With regard to Spares coverage paragraph (a) of Section One shall only apply whilst the insured property is in transit, as defined within the Institute War (Air Cargo) CL.258 and Institute War (Cargo) CL. 255. 5. Total loss under Section One, clause (e) Insurers agree that an Aircraft will be considered a total loss in the event the Aircraft is confiscated etcetera (as Section One, clause (e)), for more than 60 days. 13

6. Pro rata return premium Section Five Insurers agree pro rata return of premium shall be payable to the Insured in the event of amendment to terms/automatic review of terms resulting in cancellation or actual cancellation of the Insurance by Insurers in accordance with Section Five of Insurance wording. 7. Aircraft the subject of lease and/or sales agreements This Insurance shall also apply in respect of aircraft (whether or not described in the schedule of aircraft) the subject of lease and/or sales agreements: a) until title has been transferred to the operator/owner b) where title has been passed and the Insured retains a lien on the aircraft until any such lien has expired c) where aircraft returned to the Insured but only in the event that the operator's own hull War Risks insurances fail to respond. Excluding claims arising out of financial default, liquidation or insolvency of the operators insurers. Insurance coverage, terms, conditions, limitations and exclusions remain paramount. 8. Subject matter insured being outside the control of the Insured In the event of the subject matter insured being outside the control of the Insured by reason of any peril insured under the Insurance then the coverage shall continue to remain in force notwithstanding any notice of cancellation or automatic cancellation. If at expiry the subject matter insured is outside the control of the Insured by reason of any peril insured under the Insurance then the coverage shall automatically extend to cover the subject matter insured until it has been restored to the control of the Insured. 9. Test Flights/Demonstration Flights/Repositioning Flights Insurers agree to include X hours of Test Flights/Demonstration Flights/Repositioning Flights per aircraft, any further flights in excess of X hours per aircraft to be agreed Contract Leader only 10. Loss of Use Insurers will pay up to USDXXXXX per day each Aircraft for up to a maximum period of XX days payment each Aircraft, subject to XX days franchise but XX days in respect of hijacking (as Section One, clause (f)) and XX days in respect of confiscation etcetera (as Section One, clause (e)) in the event of partial loss of any of the insured aircraft covered hereon. Coverage limited to USD XXXXXXXX in the annual aggregate. Coverage is on an indemnity basis only and subject to proof of loss. 14

11. Choice of Law & Jurisdiction This insurance shall be governed by and construed in accordance with the law of the Insured's country of domicile and each party agrees to submit to the exclusive jurisdiction of the courts of the Insured's country of domicile in any dispute arising hereunder. 15

INSTITUTE WAR CLAUSES (CARGO) RISKS COVERED 1. This insurance covers, except as provided in s 3 and 4 below, loss of or damage to the subject-matter insured caused by Risks 1.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power 1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat 1.3 derelict mines torpedoes bombs or other derelict weapons of war. 2. This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses. General Average EXCLUSIONS 3. In no case shall this insurance cover General Exclusions 3.1 loss damage or expense attributable to wilful misconduct of the Assured 3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured 3.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this 3.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants) 3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured 3.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under 2 above) 3.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel 3.7 any claim based upon loss of or frustration of the voyage or adventure 3.8 loss damage or expense arising from any hostile use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. 4. 4.1 In no case shall this insurance cover loss damage or expense arising from Unseaworthiness and Unfitness Exclusion 16

unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein. 4.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subjectmatter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness. DURATION 5. 5.1 This insurance Transit 5.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on an oversea vessel and 5.1.2 terminates, subject to 5.2 and 5.3 below, either as the subjectmatter insured and as to any part as that part is discharged from an oversea vessel at the final port or place of discharge, or on expiry of 15 days counting from midnight of the day of arrival of the vessel at the final port or place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the Underwriters and to an additional premium, such insurance 5.1.3 reattaches when, without having discharged the subjectmatter insured at the final port or place of discharge, the vessel sails therefrom, and 5.1.4 terminates, subject to 5.2 and 5.3 below, either as the subjectmatter insured and as to any part as that part is thereafter discharged from the vessel at the final (or substituted) port or place of discharge, or on expiry of 15 days counting from midnight of the day of rearrival of the vessel at the final port or place of discharge or arrival of the vessel at a substituted port or place of discharge, whichever shall first occur. 17

5.2 If during the insured voyage the oversea vessel arrives at an intermediate port or place to discharge the subject-matter insured for on-carriage by oversea vessel or by aircraft, or the goods are discharged from the vessel at a port or place of refuge, then, subject to 5.3 below and to an additional premium if required, this insurance continues until the expiry of 15 days counting from midnight of the day of arrival of the vessel at such port or place, but thereafter reattaches as the subject-matter insured and as to any part as that part is loaded on an on-carrying oversea vessel or aircraft. During the period of 15 days the insurance remains in force after discharge only whilst the subject-matter insured and as to any part as that part is at such port or place. If the goods are on-carried within the said period of 15 days or if the insurance reattaches as provided in this 5.2 5.2.1 where the on-carriage is by oversea vessel this insurance continues subject to the terms of these clauses, or 5.2.2 where the on-carriage is by aircraft, the current Institute War s (Air Cargo) (excluding sendings by Post) shall be deemed to form part of this insurance and shall apply to the on-carriage by air. 5.3 If the voyage in the contract of carriage is terminated at a port or place other than the destination agreed therein, such port or place shall be deemed to be the final port of discharge and such insurance terminates in accordance with 5.1.2. If the subject-matter insured is subsequently re-shipped to the original or any other destination, then provided notice is given to the Underwriters before the commencement of such further transit and subject to an additional premium, such insurance reattaches 5.3.1 in the case of the subject-matter insured having been discharged, as the subject-matter insured and as to any part as that part is loaded on the on-carrying vessel for the voyage; 5.3.2 in the case of the subject-matter insured not having been discharged, when the vessel sails from such deemed final port of discharge; thereafter such insurance terminates in accordance with 5.1.4. 5.4 The insurance against the risks of mines and derelict torpedoes, floating or submerged, is extended whilst the subject-matter insured or any part thereof is on craft whilst in transit to or from the oversea vessel, but in no case beyond the expiry of 60 days after discharge from the oversea vessel unless otherwise specially agreed by the Underwriters. 5.5 Subject to prompt notice to Underwriters, and to an additional premium if required, this insurance shall remain in force within the provisions of these s during any deviation, or any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment. 18

(For the purpose of 5 "arrival" shall be deemed to mean the vessel is anchored, moored or otherwise secured at a berth or place within the Harbour Authority area. If such a berth or place is not available, arrival is deemed to have occurred when the vessel first anchors, moors or otherwise secures either at or off the intended port or place of discharge "oversea vessel" shall be deemed to mean a vessel carrying the subjectmatter from one port or place to another where such voyage involves a sea passage by that vessel) 6. Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters. Change of Voyage 7. Anything contained in this contract which is inconsistent with s 3.7, 3.8 or 5 shall, to the extent of such inconsistency, be null and void. CLAIMS 8. 8.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss. 8.2 Subject to 8.1 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 Underwriters were not. 9. 9.1 If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. Insurable Interest Increased Value In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances. 9.2 Where this insurance is on Increased Value the following clause shall apply: The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the cargo by the Assured, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances. BENEFIT OF INSURANCE 10. This insurance shall not inure to the benefit of the carrier or other bailee. Not to Inure 19

MINIMISING LOSSES 11. It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder Duty of Assured 11.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss, and 11.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised and the Underwriters will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties. 12. Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. Waiver AVOIDANCE OF DELAY 13. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control. Reasonable Despatch LAW AND PRACTICE 14. This insurance is subject to English law and practice. English Law and Practice NOTE:- It is necessary for the Assured when they become aware of an event which is "held covered" under this insurance to give prompt notice to the Underwriters and the right to such cover is dependent upon compliance with this obligation. 1/1/82 CL255 Copyright The Institute of London Underwriters 20

INSTITUTE WAR CLAUSES (AIR CARGO) (excluding sendings by Post) RISKS COVERED 1. This insurance covers, except as provided in 2 below, loss of or damage to the subject-matter insured caused by Risks 1.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power 1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat 1.3 derelict mines torpedoes bombs or other derelict weapons of war. EXCLUSIONS 2. In no case shall this insurance cover General Exclusions 2.1 loss damage or expense attributable to wilful misconduct of the Assured 2.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured 2.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this 2.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants) 2.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured 2.5 loss damage or expense arising from unfitness of aircraft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unfitness at the time the subject-matter insured is loaded therein 2.6 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against 2.7 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the aircraft 2.8 any claim based upon loss of or frustration of the voyage or adventure 2.9 loss damage or expense arising from any hostile use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. 21

DURATION 3. 3.1 This insurance Transit 3.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on the aircraft for the commencement of the air transit insured and 3.1.2 terminates, subject to 3.2 and 3.3 below, either as the subject-matter insured and as to any part as that part is discharged from the aircraft at the final place of discharge or on expiry of 15 days counting from midnight of the day of arrival of the aircraft at the final place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the Underwriters and to an additional premium, such insurance 3.1.3 reattaches when, without having discharged the subjectmatter insured at the final place of discharge, the aircraft departs therefrom, and 3.1.4 terminates, subject to 3.2 and 3.3 below, either as the subject-matter insured and as to any part as that part is thereafter discharged from the aircraft at the final (or substituted) place of discharge, or on expiry of 15 days counting from midnight of the day of re-arrival of the aircraft at the final place of discharge or arrival of the aircraft at a substituted place of discharge, whichever shall first occur. 3.2 If during the insured transit the aircraft arrives at an intermediate place to discharge the subject-matter insured for on-carriage by aircraft or oversea vessel, then, subject to 3.3 below and to an additional premium if required, this insurance continues until the expiry of 15 days counting from midnight of the day of arrival of the aircraft at such place, but thereafter reattaches as the subjectmatter insured and as to any part as that part is loaded on an on- carrying aircraft or oversea vessel. During the period of 15 days the insurance remains in force after discharge only whilst the subject-matter insured and as to any part as that part is at such intermediate place. If the goods are on-carried within the said period of 15 days or if the insurance reattaches as provided in this 3.2 22

3.2.1 where the on-carriage is by aircraft this insurance continues subject to the terms of these clauses, or 3.2.2 where the on-carriage is by oversea vessel, the current Institute War s (Cargo) shall be deemed to form part of this insurance and shall apply to the on-carriage by sea. 3.3 If the air transit in the contract of carriage is terminated at a place other than the destination agreed therein, that place shall be deemed to be the final place of discharge and such insurance terminates in accordance with 3.1.2. If the subject-matter insured is subsequently consigned to the original or any other destination, then, provided notice is given to the Underwriters before the commencement of such further transit and subject to an additional premium, such insurance reattaches 3.3.1 in the case of the subject-matter insured having been discharged, as the subject-matter insured and as to any part as that part is loaded on the on-carrying aircraft for the transit; 3.3.2 in the case of the subject-matter insured not having been discharged, when the aircraft departs from such deemed final place of discharge; thereafter such insurance terminates in accordance with 3.1.4. 3.4 Subject to prompt notice to Underwriters, and to an additional premium if required, this insurance shall remain in force within the provisions of these s during any deviation, or any variation of the adventure arising from the exercise of a liberty granted to the air carrier under the contract of carriage. (For the purpose of 3 "oversea vessel" shall be deemed to mean a vessel carrying the subject-matter from one port or place to another where such voyage involves a sea passage by that vessel) 4. Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters. Change of Transit 5. Anything contained in this contract which is inconsistent with s 2.8, 2.9 or 3 shall, to the extent of such inconsistency, be null and void. CLAIMS 6. 6.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss. Insurable Interest 6.2 Subject to 6.1 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 23

contract of insurance was concluded, unless the Assured were aware of the loss and the Underwriters were not. 7. 7.1 If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances. Increased Value 7.2 Where this insurance is on Increased Value the following clause shall apply: The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the cargo by the Assured, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances. BENEFIT OF INSURANCE 8. This insurance shall not inure to the benefit of the carrier or other bailee. Not to Inure MINIMISING LOSSES 9. It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder Duty of Assured 9.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss, and 9.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised and the Underwriters will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties. 10. Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. Waiver AVOIDANCE OF DELAY 11. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control. Reasonable Despatch 24

LAW AND PRACTICE 12. This insurance is subject to English law and practice. English Law and Practice NOTE:- It is necessary for the Assured when they become aware of an event which is "held covered" under this insurance to give prompt notice to the Underwriters and the right to such cover is dependent upon compliance with this obligation. 1/1/82 CL258 Copyright The Institute of London Underwriters 25