Institute Marine Cargo Clauses - A

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 CONTENTS

Contents AVOIDANCE OF DELAY 4

18. - Reasonable Despatch Clause . . . . . . . . . . . . . . . . 4
Institute Marine Cargo Clauses 1
LAW AND PRACTICE 4
A Clauses 1 19 - English Law and Practice Clause . . . . . . . . . . . . . . 4

RISKS COVERED 1 [Post Note] 4

1. - Risks Clause . . . . . . . . . . . . . . . . . . . . . . . . . 1 [Post Note] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2. - General Average Clause . . . . . . . . . . . . . . . . . . . 1
Document Information 5
3. - “Both to Blame Collision” Clause . . . . . . . . . . . . . . 1
MetaData . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
EXCLUSIONS 1
Information on this document copy and an unofficial List of Some
4. - General Exclusion Clause . . . . . . . . . . . . . . . . . . 1 web related information and sources 5
5. - Unseaworthiness and Unfitness Exclusion Clause . . . . . . 1 Information on this document copy . . . . . . . . . . . . . . . . 5
6. - War Exclusion Clause . . . . . . . . . . . . . . . . . . . . 2 Links that may be of interest . . . . . . . . . . . . . . . . . . . 6
7. - Strikes Exclusion Clause . . . . . . . . . . . . . . . . . . . 2

DURATION 2
8. - Transit Clause . . . . . . . . . . . . . . . . . . . . . . . . . 2
9. - Termination of Contract of Carriage Clause . . . . . . . . . 2
10. - Change of Voyage Clause . . . . . . . . . . . . . . . . . . 3

CLAIMS 3
11. - Insurable Interest Clause . . . . . . . . . . . . . . . . . . 3
12. - Forwarding Charges Clause . . . . . . . . . . . . . . . . . 3
13. - Constructive Total Loss Clause . . . . . . . . . . . . . . . 3
14. - Increased Value Clause . . . . . . . . . . . . . . . . . . . 3

BENEFIT OF INSURANCE 3
15. - Not to Inure Clause . . . . . . . . . . . . . . . . . . . . . 3

MINIMISING LOSSES 4
16. - Duty of Assured Clause . . . . . . . . . . . . . . . . . . . 4
17. - Waiver Clause . . . . . . . . . . . . . . . . . . . . . . . . 4

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 Institute Marine Cargo Clauses - A

1 I NSTITUTE M ARINE C ARGO C LAUSES 14 4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear
and tear of the subject-matter insured
2 A C LAUSES
4.3 loss damage or expense caused by insufficiency or unsuitability of 15

3 RISKS COVERED packing or preparation of the subject-matter insured (for the purpose of
this Clause 4.3 “packing” shall be deemed to include stowage in a con-
4 1. - Risks Clause tainer or liftvan but only when such stowage is carried out prior to attach-
ment of this insurance or by the Assured or their servants)
5 1 This insurance covers all risks of loss of or damage to the subject-matter
insured except as provided in Clauses 4, 5, 6 and 7 below. 4.4 loss damage or expense caused by inherent vice or nature of the 16

subject-matter insured
6 2. - General Average Clause 4.5 loss damage or expense proximately caused by delay, even though the 17

delay be caused by a risk insured against (except expenses payable under

7 2 This insurance covers general average and salvage charges, adjusted or
Clause 2 above)
determined according to the contract of affreightment and/or the govern-
ing law and practice, incurred to avoid or in connection with the avoidance 4.6 loss damage or expense arising from insolvency or financial default 18

of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or of the owners managers charterers or operators of the vessel
elsewhere in this insurance. 4.7 loss damage or expense arising from the use of any weapon of war 19

employing atomic or nuclear fission and/or fusion or other like reaction or

8 3. - “Both to Blame Collision” Clause radioactive force or matter.

9 3 This insurance is extended to indemnify the Assured against such pro-

5. - Unseaworthiness and Unfitness Exclusion Clause 20
portion of liability under the contract of affreightment “Both to Blame
Collision” Clause as is in respect of a loss recoverable hereunder. In the 5 21
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 5.1 In no case shall this insurance cover loss damage or expense aris- 22

expense, to defend the Assured against such claim. ing from unseaworthiness of vessel or craft, unfitness of vessel craft con-
veyance container or liftvan for the safe carriage of the subject-matter in-
sured, where the Assured or their servants are privy to such unseaworthi-
10 EXCLUSIONS ness or unfitness, at the time the subject-matter insured is loaded therein.
11 4. - General Exclusion Clause
5.2 The Underwriters waive any breach of the implied warranties of sea- 23
12 4 In no case shall this insurance cover worthiness of the ship and fitness of the ship to carry the subject-matter
13 4.1 loss damage or expense attributable to wilful misconduct of the As- insured to destination, unless the Assured or their servants are privy to
sured such unseaworthiness or unfitness.

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 Institute Marine Cargo Clauses - A

24 6. - War Exclusion Clause 39 8.1.2.1 for storage other than in the ordinary course of transit or

25 6 In no case shall this insurance cover loss damage or expense caused by 8.1.2.2 for allocation or distribution, or 40

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

26 6.1 war civil war revolution rebellion insurrection, or civil strife arising
of the goods hereby insured from the oversea vessel at the final port of
therefrom, or any hostile act by or against a belligerent power
discharge, whichever shall first occur.
27 6.2 capture seizure arrest restraint or detainment (piracy excepted), and
8.2 If, after discharge overside from the oversea vessel at the final port of 42
the consequences thereof or any attempt thereat
discharge, but prior to termination of this insurance, the goods are to be
28 6.3 derelict mines torpedoes bombs or other derelict weapons of war. forwarded to a destination other than that to which they are insured here-
under, this insurance, whilst remaining subject to termination as provided
29 7. - Strikes Exclusion Clause for above, shall not extend beyond the commencement of transit to such
other destination.
30 7 In no case shall this insurance cover loss damage or expense
8.3 This insurance shall remain in force (subject to termination as pro- 43

31 7.1 caused by strikers, locked-out workmen, or persons taking part in vided for above and to the provisions of Clause 9 below) during delay
labour disturbances, riots or civil commotions beyond the control of the Assured, any deviation, forced discharge, re-
shipment or transhipment and during any variation of the adventure aris-
32 7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil
ing from the exercise of a liberty granted to shipowners or charterers under
commotions
the contract of affreightment.
33 7.3 caused by any terrorist or any person acting from a political motive.
9. - Termination of Contract of Carriage Clause 44

34 DURATION 9 If owing to circumstances beyond the control of the Assured either the 45

35 8. - Transit Clause contract of carriage is terminated at a port or place other than the destina-
tion named therein or the transit is otherwise terminated before delivery
36 8.1 This insurance attaches from the time the goods leave the warehouse of the goods as provided for in Clause 8 above, then this insurance shall
or place of storage at the place named herein for the commencement of also terminate unless prompt notice is given to the Underwriters and con-
the transit, continues during the ordinary course of transit and terminates tinuation of cover is requested when the insurance shall remain in force,
either subject to an additional premium if required by the Underwriters, either
37 8.1.1 on delivery to the Consignees’ or other final warehouse or place of 9.1 until the goods are sold and delivered at such port or place, or unless 46

storage at the destination named herein, otherwise specially agreed, until the expiry of 60 days after arrival of the
38 8.1.2 on delivery to any other warehouse or place of storage, whether goods hereby insured at such port or place, whichever shall first occur, or
prior to or at the destination named herein, which the Assured elect to use 9.2 if the goods are forwarded within the said period of 60 days (or any 47

either agreed extension thereof) to the destination named herein or to any other

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 Institute Marine Cargo Clauses - A

destination, until terminated in accordance with the provisions of Clause 13. - Constructive Total Loss Clause 56

8 above.
13 No claim for Constructive Total Loss shall be recoverable hereunder 57

unless the subject-matter insured is reasonably abandoned either on ac-

48 10. - Change of Voyage Clause
count of its actual total loss appearing to be unavoidable or because the
49 10 Where, after attachment of this insurance, the destination is changed cost of recovering, reconditioning and forwarding the subject-matter to
by the Assured, held covered at a premium and on conditions to be ar- the destination to which it is insured would exceed its value on arrival.
ranged subject to prompt notice being given to the Underwriters.
14. - Increased Value Clause 58

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

51 11. - Insurable Interest Clause 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
52 11.1</b> In order to recover under this insurance the Assured must have Increased Value insurances covering the loss, and liability under this in-
an insurable interest in the subject-matter insured at the time of the loss. surance 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
53 11.2 Subject to 11.1 above, the Assured shall be entitled to recover for in- Underwriters with evidence of the amounts insured under all other insur-
sured loss occurring during the period covered by this insurance, notwith- ances.
standing that the loss occurred before the contract of insurance was con-
cluded, unless the Assured were aware of the loss and the Underwriters 14.2 Where this insurance is on Increased Value the following clause shall 60

were not. 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
54 12. - Forwarding Charges Clause 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
55 12 Where, as a result of the operation of a risk covered by this insur- insured herein bears to such total amount insured. In the event of claim
ance, the insured transit is terminated at a port or place other than that to the Assured shall provide the Underwriters with evidence of the amounts
which the subject-matter is covered under this insurance, the Underwriters insured under all other insurances.
will reimburse the Assured for any extra charges properly and reasonably
incurred in unloading storing and forwarding the subject-matter to the des-
BENEFIT OF INSURANCE 61
tination to which it is insured hereunder. This Clause 12, which does not
apply to general average or salvage charges, shall be subject to the ex- 15. - Not to Inure Clause 62

clusions contained in Clauses 4, 5, 6 and 7 above, and shall not include

charges arising from the fault negligence insolvency or financial default 15 This insurance shall not inure to the benefit of the carrier or other 63

of the Assured or their servants. bailee.

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 Institute Marine Cargo Clauses - A

64 MINIMISING LOSSES [Post Note]

65 16. - Duty of Assured Clause [Post Note]

66 16 It is the duty of the Assured and their servants and agents in respect of NOTE:- It is necessary for the Assured when they become aware of an 77

loss recoverable hereunder 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
67 16.1 to take such measures as may be reasonable for the purpose of avert- with this obligation.
ing or minimising such loss, and

68 16.2 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.

69 17. - Waiver Clause

70 17 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 preju-
dice the rights of either party.

71 AVOIDANCE OF DELAY
72 18. - Reasonable Despatch Clause

73 18 It is a condition of this insurance that the Assured shall act with rea-
sonable despatch in all circumstances within their control.

74 LAW AND PRACTICE

75 19 - English Law and Practice Clause

76 This insurance is subject to English law and practice.

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 Institute Marine Cargo Clauses - A

0 D OCUMENT I NFORMATION Information on this document copy and an unofficial List

0 MetaData of Some web related information and sources
Dublin Core (DC) "Support Open Standards and Open Sources for the Information Technol-
ogy Infrastructure" RA
DC tags included with this document are provided here.
DC Title: Institute Marine Cargo Clauses - A Information on this document copy www.lexmercatoria.org
DC date: 1982

c Ralph Amissah 1997, 2004 of SiSU http://www.jus.uio.no/sisu/
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numbering system. All Rights Reserved.
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