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
Information on this document
copy and an unofficial List of Some web related information
and sources . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 6
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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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