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 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

1.2 any act of terrorism being an act of any person acting on behalf of, or in connection with, any

organisation which carries out activities directed towards the overthrowing or influencing, by force or

violence, of any government whether or not legally constituted

1.3 any person acting from a political, ideological or religious motive.

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

3.1 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 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 this Clause 3.3 "packing" shall be deemed to include stowage in a container and

"employees" shall not include independent contractors)

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

3.5 loss damage or expense caused by delay, even though the delay be caused by a risk insured against

(except expenses payable under Clause 2 above)

3.6 loss 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

3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description

whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion

3.8 any claim based upon loss of or frustration of the voyage or adventure

3.9 loss damage or expense directly or indirectly caused by or arising from the use of any weapon or device

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

3.10 loss damage or expense caused by war civil war revolution rebellion insurrection, or civil strife arising

therefrom, or any hostile act by or against a belligerent power.

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.

4.2 Exclusion 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.

4.3 The 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. 5.1Subject to Clause 8 below, this insurance attaches from the time the subject-matter insured is first moved

in the warehouse or at the place of storage (at the place named in the contract of insurance) for the

purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the

commencement of transit,

continues during the ordinary course of transit

and terminates either

5.1.1on completion of unloading from the carrying vehicle or other conveyance in or at the final

warehouse or place of storage at the destination named in the contract of insurance,

5.1.2on completion of unloading from the carrying vehicle or other conveyance in or at any other

warehouse or place of storage, whether prior to or at the destination named in the contract of

insurance, which the Assured or their employees elect to use either for storage other than in the

ordinary course of transit or for allocation or distribution, or

5.1.3when the Assured or their employees elect to use any carrying vehicle or other conveyance or any

container for storage other than in the ordinary course of transit or

5.1.4on the expiry of 60 days after completion of discharge overside of the subject-matter insured from

the oversea vessel at the final port of discharge,

whichever shall first occur.

5.2 If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination

of this insurance, the subject-matter insured is to be forwarded to a destination other than that to which

it is insured, this insurance, whilst remaining subject to termination as provided in Clauses 5.1.1 to 5.1.4,

shall not extend beyond the time the subject-matter insured is first moved for the purpose of the

commencement of transit to such other destination.

5.3 This insurance shall remain in force (subject to termination as provided for in Clauses 5.1.1 to 5.1.4 above

and to the provisions of Clause 6 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 carriers under the contract of carriage.

Termination of Contract of Carriage

6. If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a

port or place other than the destination named therein or the transit is otherwise terminated before unloading

of the subject-matter insured as provided for in Clause 5 above, then this insurance shall also terminate unless

prompt notice is given to the Insurers and continuation of cover is requested when this insurance shall remain

in force, subject to an additional premium if required by the Insurers, either

6.1until the subject-matter insured is sold and delivered at such port or place, or, unless otherwise specially

agreed, until the expiry of 60 days after arrival of the subject-matter insured at such port or place,

whichever shall first occur,

6.2if the subject-matter insured is forwarded within the said period of 60 days (or any agreed extension

thereof) to the destination named in the contract of insurance or to any other destination, until

terminated in accordance with the provisions of Clause 5 above.

Change of Voyage

7. 7.1 Where, 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.

7.2 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.

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

10.1covers 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 continuation of cover is requested under Clause 6, or a change of destination is notified under

Clause 7, there is an obligation to give prompt notice to the Insurers and the right to such cover is dependent

upon compliance with this obligation.

CL386

01/01/2009