Institute Marine Cargo Clauses - A

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Contents

Institute Marine Cargo Clauses 1

A Clauses 1

RISKS COVERED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1. - Risks Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2. - General Average Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

3. - “Both to Blame Collision” Clause . . . . . . . . . . . . . . . . . . . . . 1

EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

4. - General Exclusion Clause . . . . . . . . . . . . . . . . . . . . . . . . . . 1

5. - Unseaworthiness and Unfitness Exclusion Clause . . . . . . . . . . . . . 2

6. - War Exclusion Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

7. - Strikes Exclusion Clause . . . . . . . . . . . . . . . . . . . . . . . . . . 2

DURATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

8. - Transit Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

9. - Termination of Contract of Carriage Clause . . . . . . . . . . . . . . . . 3

10. - Change of Voyage Clause . . . . . . . . . . . . . . . . . . . . . . . . . 3

CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

11. - Insurable Interest Clause . . . . . . . . . . . . . . . . . . . . . . . . . . 3

12. - Forwarding Charges Clause . . . . . . . . . . . . . . . . . . . . . . . . 4

13. - Constructive Total Loss Clause . . . . . . . . . . . . . . . . . . . . . . 4

14. - Increased Value Clause . . . . . . . . . . . . . . . . . . . . . . . . . . 4

BENEFIT OF INSURANCE 4

15. - Not to Inure Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

MINIMISING LOSSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

16. - Duty of Assured Clause . . . . . . . . . . . . . . . . . . . . . . . . . . 5

17. - Waiver Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

AVOIDANCE OF DELAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

18. - Reasonable Despatch Clause . . . . . . . . . . . . . . . . . . . . . . . . 5

LAW AND PRACTICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

19 - English Law and Practice Clause . . . . . . . . . . . . . . . . . . . . . . 5

[Post Note] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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[Post Note] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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INSTITUTE MARINE CARGO CLAUSES 1

A Clauses 2

RISKS COVERED 3

1. - Risks Clause 4

1 This insurance covers all risks of loss of or damage to the subject-matter insured except as 5

provided in Clauses 4, 5, 6 and 7 below.

2. - General Average Clause 6

2 This insurance covers general average and salvage charges, adjusted or determined according 7

to the contract of affreightment 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 or elsewhere in this insurance.

3. - “Both to Blame Collision” Clause 8

3 This insurance is extended to indemnify the Assured against such proportion of liability 9

under the contract of affreightment “Both to Blame Collision” Clause as is in respect of a

loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the

Assured agree to notify the Underwriters who shall have the right, at their own cost and expense,

to defend the Assured against such claim.

EXCLUSIONS 10

4. - General Exclusion Clause 11

4 In no case shall this insurance cover 12

4.1 loss damage or expense attributable to wilful misconduct of the Assured 13

4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the 14

subject-matter insured

4.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation 15

of the subject-matter insured (for the purpose of this Clause 4.3 “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)

4.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured 16

4.5 loss damage or expense proximately caused by delay, even though the delay be caused by 17

a risk insured against (except expenses payable under Clause 2 above)

4.6 loss damage or expense arising from insolvency or financial default of the owners managers 18

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charterers or operators of the vessel

4.7 loss damage or expense arising from the use of any weapon of war employing atomic or 19

nuclear fission and/or fusion or other like reaction or radioactive force or matter.

5. - Unseaworthiness and Unfitness Exclusion Clause 20

5 21

5.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness 22

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.

5.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship 23

and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or

their servants are privy to such unseaworthiness or unfitness.

6. - War Exclusion Clause 24

6 In no case shall this insurance cover loss damage or expense caused by 25

6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any 26

hostile act by or against a belligerent power

6.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences 27

thereof or any attempt thereat

6.3 derelict mines torpedoes bombs or other derelict weapons of war. 28

7. - Strikes Exclusion Clause 29

7 In no case shall this insurance cover loss damage or expense 30

7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots 31

or civil commotions

7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions 32

7.3 caused by any terrorist or any person acting from a political motive. 33

DURATION 34

8. - Transit Clause 35

8.1 This insurance attaches from the time the goods leave the warehouse or place of storage 36

at the place named herein for the commencement of the transit, continues during the ordinary

course of transit and terminates either

8.1.1 on delivery to the Consignees’ or other final warehouse or place of storage at the destina- 37

tion named herein,

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8.1.2 on delivery to any other warehouse or place of storage, whether prior to or at the destina- 38

tion named herein, which the Assured elect to use either

8.1.2.1 for storage other than in the ordinary course of transit or 39

8.1.2.2 for allocation or distribution, or 40

8.1.3 on the expiry of 60 days after completion of discharge overside of the goods hereby 41

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 42

to termination of this insurance, the goods are to be forwarded to a destination other than that

to which they are insured hereunder, this insurance, whilst remaining subject to termination

as provided for above, shall not extend beyond the commencement of transit to such other

destination.

8.3 This insurance shall remain in force (subject to termination as provided for above and to 43

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 shipowners or charterers under the contract of

affreightment.

9. - Termination of Contract of Carriage Clause 44

9 If owing to circumstances beyond the control of the Assured either the contract of carriage is 45

terminated at a port or place other than the destination named therein or the transit is otherwise

terminated before delivery of the goods as provided for in Clause 8 above, then this insurance

shall also terminate unless prompt notice is given to the Underwriters and continuation of cover

is requested when the insurance shall remain in force, subject to an additional premium if required

by the Underwriters, either

9.1 until the goods are sold and delivered at such port or place, or unless otherwise specially 46

agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place,

whichever shall first occur, or

9.2 if the goods are forwarded within the said period of 60 days (or any agreed extension 47

thereof) to the destination named herein or to any other destination, until terminated in accordance

with the provisions of Clause 8 above.

10. - Change of Voyage Clause 48

10 Where, after attachment of this insurance, the destination is changed by the Assured, held 49

covered at a premium and on conditions to be arranged subject to prompt notice being given to

the Underwriters.

CLAIMS 50

11. - Insurable Interest Clause 51

11.1</b> In order to recover under this insurance the Assured must have an insurable interest 52

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in the subject-matter insured at the time of the loss.

11.2 Subject to 11.1 above, the Assured shall be entitled to recover for insured loss occur- 53

ring 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.

12. - Forwarding Charges Clause 54

12 Where, as a result of the operation of a risk covered by this insurance, the insured transit 55

is terminated at a port or place other than that to which the subject-matter is covered under

this insurance, the Underwriters will reimburse the Assured for any extra charges properly and

reasonably incurred in unloading storing and forwarding the subject-matter to the destination

to which it is insured hereunder. 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 servants.

13. - Constructive Total Loss Clause 56

13 No claim for Constructive Total Loss shall be recoverable hereunder unless the subject- 57

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

to the destination to which it is insured would exceed its value on arrival.

14. - Increased Value Clause 58

14.1</b> If any Increased Value insurance is effected by the Assured on the cargo insured 59

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.

14.2 Where this insurance is on Increased Value the following clause shall apply: The agreed 60

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 61

15. - Not to Inure Clause 62

15 This insurance shall not inure to the benefit of the carrier or other bailee. 63

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MINIMISING LOSSES 64

16. - Duty of Assured Clause 65

16 It is the duty of the Assured and their servants and agents in respect of loss recoverable 66

hereunder

16.1 to take such measures as may be reasonable for the purpose of averting or minimising 67

such loss, and

16.2 to ensure that all rights against carriers, bailees or other third parties are properly pre- 68

served 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.

17. - Waiver Clause 69

17 Measures taken by the Assured or the Underwriters with the object of saving, protecting 70

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.

AVOIDANCE OF DELAY 71

18. - Reasonable Despatch Clause 72

18 It is a condition of this insurance that the Assured shall act with reasonable despatch in all 73

circumstances within their control.

LAW AND PRACTICE 74

19 - English Law and Practice Clause 75

This insurance is subject to English law and practice. 76

[Post Note]

[Post Note]

NOTE:- It is necessary for the Assured when they become aware of an event which is “held 77

covered” under this insurance to give prompt notice to the Underwriters and the right to such

cover is dependent upon compliance with this obligation.

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