1/1/09
INSTITUTE WAR CLAUSES (CARGO)
RISKS COVERED
Risks
1. This insurance covers, except as excluded by the provisions of Clauses 3 and 4 below, loss of or damage to
the subject-matter insured caused by
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.
General Average
2. This insurance covers general average and salvage charges, adjusted or determined according to the
contract of carriage 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.
EXCLUSIONS
3. In no case shall this insurance cover
3.1loss damage or expense attributable to wilful misconduct of the Assured
3.2ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter
insured
3.3loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the
subject-matter insured to withstand the ordinary incidents of the insured transit where such packing or
preparation is carried out by the Assured or their employees or prior to the attachment of this
insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container
and "employees" shall not include independent contractors)
3.4loss damage or expense caused by inherent vice or nature of the subject-matter insured
3.5loss damage or expense caused by delay, even though the delay be caused by a risk insured against
(except expenses payable under Clause 2 above)
3.6loss damage or expense caused by insolvency or financial default of the owners managers charterers or
operators of the vessel where, at the time of loading of the subject-matter insured on board the
vessel, the Assured are aware, or in the ordinary course of business should be aware, that such
insolvency or financial default could prevent the normal prosecution of the voyage
This exclusion shall not apply where the contract of insurance has been assigned to the party claiming
hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding
contract
3.7any claim based upon loss of or frustration of the voyage or adventure
3.8loss damage or expense directly or indirectly caused by or arising from any hostile use of any weapon or
device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or
matter.
4. 4.1In no case shall this insurance cover loss damage or expense arising from
4.1.1unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the
subject-matter insured, where the Assured are privy to such unseaworthiness or unfitness, at
the time the subject-matter insured is loaded therein
4.1.2unfitness of container or conveyance for the safe carriage of the subject-matter insured,
where loading therein or thereon is carried out
prior to attachment of this insurance or
by the Assured or their employees and they are privy to such unfitness at the time of
loading.
4.2Exclusion 4.1.1 above shall not apply where the contract of insurance has been assigned to the party
claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a
binding contract.
4.3The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the
ship to carry the subject-matter insured to destination.
DURATION
Transit Clause
5. 5.1This insurance
5.1.1attaches only as the subject-matter insured and as to any part as that part is loaded on an
oversea vessel
and
5.1.2terminates, subject to 5.2 and 5.3 below, either as the subject-matter 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 Insurers and to an additional premium, such insurance
5.1.3reattaches when, without having discharged the subject-matter insured at the final port or
place of discharge, the vessel sails therefrom,
and
5.1.4terminates, subject to 5.2 and 5.3 below, either as the subject-matter 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 re-arrival 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.
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 subject-matter insured is
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 subject-matter insured is on-
carried within the said period of 15 days or if the insurance reattaches as provided in this Clause 5.2
5.2.1where the on-carriage is by oversea vessel this insurance continues subject to the terms of
these Clauses,
or
5.2.2where the on-carriage is by aircraft, the current Institute War Clauses (Air Cargo) (excluding
sendings by Post) shall be deemed to form part of the contract of 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 the final port of discharge and this insurance
terminates in accordance with 5.1.2. If the subject-matter insured is subsequently reshipped to the
original or any other destination, then provided notice is given to the Insurers before the
commencement of such further transit and subject to an additional premium, this insurance
reattaches
5.3.1in 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;
5.3.2in the case of the subject-matter not having been discharged, when the vessel sails from such
deemed final port of discharge;
thereafter this 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 Insurers.
5.5 Subject to prompt notice to Insurers, and to an additional premium if required, this insurance shall
remain in force within the provisions of these Clauses during any deviation, or any variation of the
adventure arising from the exercise of a liberty granted to carriers under the contract of carriage.
(For the purpose of Clause 5
"arrival" shall be deemed to mean that 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 subject-matter from one port or place to
another where such voyage involves a sea passage by that vessel)
Change of Voyage
6. 6.1Where, after attachment of this insurance, the destination is changed by the Assured, this must be
notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such
agreement being obtained cover may be provided but only if cover would have been available at a
reasonable commercial market rate on reasonable market terms.
6.2 Where the subject-matter insured commences the transit contemplated by this insurance (in
accordance with Clause 5.1), but, without the knowledge of the Assured or their employees the ship
sails for another destination, this insurance will nevertheless be deemed to have attached at
commencement of such transit.
7. Anything contained in this contract which is inconsistent with Clauses 3.7, 3.8 or 5 shall, to the extent
of such inconsistency, be null and void.
CLAIMS
Insurable Interest
8.8.1In order to recover under this insurance the Assured must have an insurable interest in the subject-
matter insured at the time of the loss.
8.2Subject to Clause 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 Insurers were not.
Increased Value
9. 9.1If any Increased Value insurance is effected by the Assured on the subject-matter insured under this
insurance the agreed value of the subject-matter insured 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 under this insurance
bears to such total amount insured.
In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured
under all other insurances.
9.2Where this insurance is on Increased Value the following clause shall apply:
The agreed value of the subject-matter insured 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 subject-matter insured by the Assured, and liability under this insurance shall be in
such proportion as the sum insured under this insurance bears to such total amount insured.
In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured
under all other insurances.
BENEFIT OF INSURANCE
10. This insurance
10.1 covers the Assured which includes the person claiming indemnity either as the person by or on whose
behalf the contract of insurance was effected or as an assignee,
10.2 shall not extend to or otherwise benefit the carrier or other bailee.
MINIMISING LOSSES
Duty of Assured
11. It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder
11.1to take such measures as may be reasonable for the purpose of averting or minimising such loss,
and
11.2to ensure that all rights against carriers, bailees or other third parties are properly preserved and
exercised
and the Insurers will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges
properly and reasonably incurred in pursuance of these duties.
Waiver
12.Measures taken by the Assured or the Insurers 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.
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.
LAW AND PRACTICE
14.This insurance is subject to English law and practice.
NOTE:-Where a reattachment of cover is requested under Clause 5, or a change of destination is notified
under Clause 6, there is an obligation to give prompt notice to the Insurers and the right to such cover is
dependent upon compliance with this obligation.
© Copyright: 11/08 - Lloyd's Market Association (LMA) and International Underwriting Association of London
(IUA).
CL385
01/01/2009