INTENTION FOR AIF TO BIND CLAUSE
Whereas Lloyd’s Underwriters have been granted an order to insure in Canada risks under the Insurance
companies Act (Canada) and are registered in all provinces and territories in Canada to carry on insurance
business under the laws of these jurisdictions or to transact insurance in these jurisdictions.
And whereas applicants for insurance coverage in respect of risks located in Canada and Canadian Cedants
wish that Lloyd’s insurance and reinsurance coverage be provided in a manner that requires Lloyd’s
Underwriters to vest assets in trust in respect of their risks pursuant to the Insurance Companies Act (Canada);
This contract shall be in force and shall be the governing contract pending the decision by Lloyd’s Underwriters’
attorney and chief agent in Canada (the “AIF”) to confirm coverage in accordance with both the terms and
conditions set out in this contract and applicable Canadian law;
The AIF shall confirm Lloyd’s Underwriters’ coverage by signing in Canada a policy that will contain the terms
and conditions set out in this contract (the “Canadian Policy”), and by communicating from Canada the issuance
of that policy to the policyholder or his broker;
This contract shall cease to have effect upon the communication by the AIF from Canada of the Canadian Policy
to the policyholder or his broker, and the Canadian Policy will replace and supersede this contract.
LMA5180
01 November 2011
INSURING IN CANADA CLAUSE
For the purpose of the Insurance Companies Act (Canada), this Canadian Policy was issued in the course
of Lloyd's Underwriters' insurance business in Canada.
The business insured/reinsured herein meets the necessary conditions to qualify as, and is being
transacted as, "insuring in Canada a risk" in accordance with Part XIII of the Insurance Companies Act
(Canada).
LMA5185
01 November 2011
MARINE OPEN CARGO INSURANCE
LLOYD’S
Effected with certain Lloyd’s Underwriters (“Insurer” or “Underwriters”)
through Lloyd’s Approved Coverholder (“the Coverholder”):
Roanoke Insurance Group Inc.
DECLARATIONS
Policy No:
19RTSC12001
Name of Canadian
McLean, Hallmark Insurance Group, Ltd.
Intermediary:
184 Front Street East, Suite 601
Toronto, ON M5A 4N3 Canada
Insured Name:
Freightera and/or Subsidiary Companies, Corporations, Firms, or
Organizations as may now exist or may become established, hereinafter
referred to as the Assured. For account of whom it may concern. Loss, if any,
payable to the Assured or order.
As used in the Policy, the term “Assured” also means the person or entity
claiming indemnity either as the Named Assured, or any bona fide holder of,
or loss payee under, a Certificate of Insurance issued in accordance with
Clause 48 of this Policy; however, Underwriters are entitled to make any
defense arising out of this Policy which they would have been entitled to
make if the claim had been brought by the Named Assured, except as may
be otherwise provided in this Policy.
Insured Address:
200-375 Water Street, Vancouver, V6B 0M9
Period of Insurance:
Twelve (12) months cover effective 2/14/2019 12:01 a.m. standard time at
the address of the Assured as stated herein and expiring 2/14/2020 12:01
a.m. This insurance to fully cover all sendings departing within the effective
dates, but subject to cancellation by either the Assured or Underwriters giving
Notice of Cancellation as per the cancellation clause defined herein.
Premium:
Premiums shall be payable as per the applicable endorsement(s) noted
herein.
Limits Of Liability
Underwriters shall not be liable for more than:
$
1,000,000
Any one vessel or conveyance per any one account of the Assured, except that in the
following cases, this insurance shall not cover more than:
$
100,000
Breakbulk cargo on any one vessel subject to an On-Deck bill(s) of lading;
$
1,000,000
Any one aircraft or conveyance per any one account of the Assured;
$ NIL
Any one barge, except as a connecting conveyance;
$
10,000
Any one package by parcel post, mail or similar parcel delivery service;
$
500,000
Canada and/or U.S. Domestic Transit - any one land or air conveyance.
Goods Insured
To cover 100% interest upon shipments of lawful goods of every description; however, the following
commodities are excluded unless agreed upon in writing by Underwriters: bulk products, cash, cigarettes and
other tobacco products, computer memory modules and cards, cotton, fine art (defined as art valued in excess
of $10,000 per piece), flowers, fresh foods (excepting frozen foods in refrigerated containers), jewelry, laptop
and tablet computers, live animals, mobile/smart phones and watches, negotiable papers, perishable
commodities (defined as commodities which spoil or deteriorate when not carried or stored in a temperature
controlled environment), pharmaceutical drugs, plants, precious stones and metals, and securities.
The above further excludes items made from fiberglass, acrylic, or glass.
As used in this Policy, the term “shipment(s)” means Goods which are carried under the terms of a single bill of
lading or air waybill, irrespective of the quantity or number of containers, packages, or pieces. This definition
does not alter or increase the conveyance limits stated in the Limits of Liability clause of this Policy.
Geographical Limits
To and from ports and or places in the World to ports and or places in the World with privilege of transshipment
by land and/or water; however, shipments to/from Afghanistan, Iran, Iraq, Somalia, Sudan and truck/rail
shipments to/from/within Mexico other than as a connecting conveyance are excluded entirely. Also including
domestic shipments within the United States and Canada. All other domestic shipments are excluded unless
specifically endorsed hereon.
Regardless of the Duration of Risk clauses found elsewhere in this Policy, coverage for shipments to Haiti,
Nigeria, Pakistan, and the Commonwealth of Independent States (CIS) ceases upon discharge from the ocean
vessel or aircraft.
The CIS presently includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan,
Turkmenistan, Ukraine and Uzbekistan.
The insurance contract consists of this Declarations page as well as all coverage wordings, riders, or
endorsements that are attached hereto.
IDENTIFICATION OF INSURER/ACTION AGAINST INSURER
This insurance has been effected in accordance with the authorization granted to the Coverholder by the
Underwriting Members of the Syndications whose definitive numbers and proportions are shown in the Table
attached to Binding Authority No. B1097 ABI 19 1011 (hereinafter referred to as “the Underwriters”). The
Underwriters shall be liable hereunder each for his own part and not one for another in proportion to the
several sums that each of them has subscribed to the said Agreement.
In any action to enforce the obligations of the Underwriters they can be designated or named as “Lloyd’s
Underwriters” and such designation shall be binding on the Underwriters as if they had each been individually
named as defendant. Service of such proceedings may validly be made upon the Attorney In Fact in Canada
for Lloyd’s Underwriters, whose address for such service is 1155 rue Metcalfe, Suite 2220, Montreal, Quebec
H3B 2V6.
NOTICE
Any notice to the Underwriters may be validly given to: Roanoke Insurance Group Inc., 1475 East Woodfield
Road, Suite 500, Schaumburg, IL 60173
In witness whereof this policy has been signed in Schaumburg, Illinois, USA, as authorized by the
Underwriters, by Roanoke Insurance Group Inc..
Signed: _
________________________
The Insured is requested to read this policy, and if incorrect, return it immediately for alteration.
In the event of an occurrence likely to result in a claim under this insurance, immediate notice should be given to
the Canadian licensed intermediary whose name and address appear above. All inquiries and disputes are also
to be addressed to this intermediary.
Whereas Lloyd’s Underwriters have been granted an order to insured in Canada risks under the Insurance
Companies Act (Canada) and are registered in all provinces and territories in Canada to carry on insurance
business under the laws of these jurisdictions or to transact insurance in these jurisdictions.
And whereas applicant for insurance coverage in respect of risks located in Canada and Canadian Cedants
wish that Lloyd’s insurance and reinsurance coverage be provided in a manner that required Lloyd’s
Underwriters to vest assets in trust in respect of their risks pursuant to the Insurance Companies Act (Canada);
1. This contract shall be in force and shall be the governing contract pending the decision by Lloyd’s
Underwriters’ attorney and chief agent in Canada (the “AIF”) to confirm coverage in accordance with both
the terms and conditions set out in this contract and applicable Canadian law;
2. The AIF shall confirm Lloyd’s Underwriters’ coverage by signing in Canada a policy that will contain the
terms and conditions set out in this contract (the “Canadian Policy”), and by communicating from Canada
the issuance of that policy to the policyholder or his broker;
3. This contract shall cease to have effect upon the communication by the AIF from Canada of the Canadian
Policy to the policyholder or his broker, and the Canadian Policy will replace and supersede this contract.
THIS POLICY CONTAINS A CLAUSE WHICH MAY LIMIT THE AMOUNT PAYABLE
LSW 1549B (12/14/ 2011)
SECTION 1: General Conditions
1.
U.S. Economic and Trade Sanctions
Whenever coverage provided by this Policy would be in violation of any U.S. economic or trade sanctions
such as, but not limited to, those sanctions administered and enforced by the U.S. Treasury Department’s
Office of Foreign Assets Control (“OFAC”), such coverage shall be null and void. Similarly, any coverage
relating to or referred to in any certificates or other evidences of insurance or any claim that would be in
violation of U.S. economic or trade sanctions as described above shall also be null and void.
2.
Interest
This insurance is to cover all shipments made by or to the Assured or by or to others for the Assured’s
account or control, or in which the Assured may have an interest, also to cover all shipments for the account
of others on which the Assured may receive instructions to insure or deem themselves responsible to
insure, prior to commencement of transit and prior to any known or reported loss or accident. Unless
specifically added by endorsement herein, this Policy does not provide any legal liability coverage.
3.
Accumulation
Should there be an accumulation of interest beyond the limits expressed in this Policy by reason of any
interruption of transit and/or occurrence beyond the control of the Assured, or by reason of any casualty
and/or at a transshipping point, and/or on a connecting steamer or conveyances, Underwriters shall hold
covered such excess interest and shall be liable for the full amount at risk, but in no event to exceed twice
the applicable Policy limit, provided notice be given to Underwriters as soon as known to the Assured.
4.
Valuation
A. Commercial Goods and/or Merchandise (under invoice):
Valued at amount of invoice, including all charges therein, plus any prepaid and/or advanced and/or
guaranteed freight, if any, plus 10%; or at amounts declared and agreed by Underwriters prior to
shipment.
B. Commercial Goods and/or Merchandise (not under invoice):
Valued and insured for the fair market value at place of shipment or arrival, provided such declaration
be made prior to shipment. It is further agreed that irrespective of the value insured, claims for repairs
shall be payable for the fair market costs of such repairs but in no event for more than the insured value.
C. Personal (non-commercial) Household Goods and Personal Effects:
Valued at the amount of itemized inventory (showing value per item), such value representing the
current Actual Cash Value (Replacement Cost less Depreciation) of the merchandise at destination,
plus all costs of transportation to ultimate destination.
D. Personal (non-commercial) Automobiles and Motorcycles:
Valued and insured for the fair market value at place of shipment or arrival, provided such declaration
be made prior to shipment. It is further agreed that irrespective of the value insured, claims for repairs
shall be payable for the fair market costs of such repairs but in no event for more than the insured value.
In no event shall claims exceed the value declared prior to shipment and declared for premium purposes.
Foreign currency to be converted into Canadian dollars at rate of exchange current in New York on date of
invoice.
Coinsurance: Underwriters will not pay the full amount of any loss if the actual value of goods insured at
the time of loss is greater than the reported value for those goods. Instead, underwriters will pay only the
percentage of loss as the reported value bears to the actual value of goods insured according to the
valuation clause, less any applicable deductible.
5.
Severability Clause
If any part of this agreement is found to be unenforceable or invalid, the remainder of this agreement will
continue to be binding.
6.
Conveyances, Craft and Lighter
This insurance shall attach on shipments by iron and/or steel vessels (propelled solely by mechanical
power), aircraft, metal barges, rail and/or truck, and in all cases, including connecting conveyances. This
insurance shall further include transit by craft, raft or lighter to or from the vessel with each craft, raft or
lighter to be deemed a separate insurance. The Assured are not to be prejudiced by any agreement
exempting lightermen from liability.
7.
Carrier
This insurance shall not directly or indirectly benefit or insure any carrier or bailee.
8.
Seaworthiness
The seaworthiness of the vessel operating as a common carrier is hereby admitted as between the Assured
and Underwriters and the wrongful act or misconduct of the shipowner or his employees causing a loss is
not to defeat the recovery by an innocent Assured if the loss in the absence of such wrongful act or
misconduct would have been a loss recoverable on this Policy. With leave to sail with or without pilots, and
to tow and assist vessels or craft in all situations, and to be towed. The Assured is not to be prejudiced by
the presence of the negligence clause and/or latent defect clause in the Bill(s) of Lading and/or Charter
Party.
Whenever the words “ship”, “vessel”, “seaworthiness”, “shipowner” or “vessel owner” appear in the Policy,
they are deemed to also include the words “aircraft”, “airworthiness” and “aircraft owner”.
9.
Vessel Classification Clause
This insurance covers shipments as specified herein, shipped on:
A.
Metal-hulled, self-propelled vessels which are not over 25 years of age nor less than 1,000 net
registered tons and which are classed A1 American Record or equivalent by a member of the
International Association of Classification Societies; or
B.
Vessels over 25 years of age but less than 40 years of age, which are approved by Underwriters, and
which are not less than 1,000 net registered tons and classed as in (A) above, but only while operating
in their regular trades, shall be subject to additional premiums;
C.
Vessels over 40 years of age and/or vessels not classed A1 American Record or equivalent by a
member of the International Association of Classification Societies, which are approved by Underwriters,
but only while operating in their regular trades, shall be subject to additional premiums and the
following conditions:
1) An additional deductible of three percent (3%) of the total insured value (subject to a minimum
deductible of $1,000) shall apply;
2) A maximum limit of liability of $1,000,000 any one vessel shall apply.
D.
Barges (other than as a connecting conveyance), which are approved by Underwriters, but only while
operating in their regular trades, shall be covered by this insurance even though the Policy Limits for
same may otherwise be nil. However, additional premiums and the following special conditions shall
apply:
1) An additional deductible of three percent (3%) of the total insured value (subject to a minimum
deductible of $1,000) shall apply;
2) A maximum limit of liability of $250,000 any one barge shall apply.
E.
But in any case, excluding shipments on:
1) Chartered vessels that are not classed A1 American Record or equivalent by a member of the
International Association of Classification Societies;
2) Chartered vessels over 40 years of age;
3) Vessels on break-up voyages;
4) Chartered barges;
5) Vessels built for service on the Great Lakes;
6) Vessels built solely for Military or Naval Service;
7) Vessels built for carriage of dry bulk or liquid bulk cargoes, and which are more than 20 years of
age.
The above provisions shall not, however, prejudice any claim hereunder, when presentation of the advice of
such claim to Underwriters is the first indication that a transshipment, beyond control of the Assured, has
been made by a vessel which is not covered above, provided the appropriate additional premium is paid as
soon as practicable thereafter.
10. Average Terms and Conditions
A.
“All Risks”:
Unless otherwise specified below, this Policy insures new approved goods against “All Risks” of
physical loss or damage from any external cause, except as excluded by the Clauses in Section 8 of
this Policy.
B.
FPA (Named Perils Coverage):
Wherever FPA terms are specified herein, or whenever the Assured declares to Underwriters that
approved goods are to be insured under FPA terms, the following conditions shall apply:
During Carriage by Vessel:
Warranted Free of Particular Average unless the vessel or craft be stranded, sunk or burnt, but
notwithstanding this warranty Underwriters are to pay any loss of or damage to the interest insured
which may reasonably be attributed to fire, collision, or contact of the vessel and/or craft and/or
conveyance with any external substance (ice included) other than water, or to discharge of cargo at port
of distress, and also to pay the insured value of any merchandise and/or goods jettisoned and/or
washed or lost overboard.
During Carriage by Aircraft:
Warranted Free of Particular Average unless caused by the aircraft suffering an accident in takeoff or
landing, or coming to earth at a place other than an airfield, or in a collision with another aircraft; or
being on fire or by jettison.
During Carriage on Land and Shore:
Warranted Free of Particular Average unless caused by collision, derailment, overturning or other
accident to the transporting conveyance, or by fire, lightning, sprinkler leakage, cyclones, hurricanes,
earthquakes, floods (meaning the rising of navigable waters), and/or collapse or subsidence of docks or
wharves.
The following clauses covering contributions and/or expenses shall also apply to goods which are
insured under FPA terms: General Average, Both to Blame, Sue & Labor, and Landing, Warehousing &
Forwarding Charges.
Unless otherwise specified in Special Insuring Conditions, or unless specifically approved by
Underwriters prior to the commencement of transit and before any known or reported loss or accident,
coverage is excluded for the theft or non-delivery of goods insured under FPA terms, whether the theft
or non-delivery is of the entire shipment or any part thereof.
C.
“On Deck” Bill of Lading - FPA terms:
Breakbulk goods stowed on deck subject to an on deck bill of lading are insured subject to FPA terms.
Notwithstanding the foregoing, goods insured shipped on deck under an under deck bill of lading,
without the knowledge and consent of the shipper, shall be treated as under deck cargo and insured as
per sub-division A of this Clause.
SECTION 2: Canada Conditions
The conditions as set out below apply to all of the perils insured by this policy either as STATUTORY
CONDITIONS or as contractual conditions as the law may require.
11. Misrepresentation
If a person applying for insurance falsely describes the property to the prejudice of the insurer, or
misrepresents or fraudulently omits to communicate any circumstance that is material to be made
known to the insurer in order to enable it to judge of the risk to be undertaken, the contract is void as to
any property in relation to which the misrepresentation or omission is material.
12. Property of Others
Unless otherwise specifically stated in the contract, the insurer is not liable for loss or damage to
property owned by any person other than the insured, unless the interest of the insured therein is
stated in the contract.
13. Change of Interest
The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy
Act (Canada) or change of title by succession, by operation of law, or by death.
14. Material Change
Any change material to the risk and within the control and knowledge of the insured avoids the contract
as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its
local agent, and the insurer when so notified may return the unearned portion, if any, of the premium
paid and cancel the contract, or may notify the insured in writing that, if the insured desires the contract
to continue in force, the insured must, within fifteen days of the receipt of the notice, pay to the insurer
an additional premium, and in default of such payment the contract is no longer in force and the insurer
shall return the unearned portion, if any, of the premium paid.
15. Termination
A. This contract may be terminated,
1) By the insurer giving to the insured fifteen days' notice of termination by registered mail or five
days' written notice of termination personally delivered;
2) By the insured at any time on request.
B. Where this contract is terminated by the insurer,
1) The insurer shall refund the excess of premium actually paid by the insured over the pro rata
premium for the expired time, but, in no event, shall the pro rata premium for the expired time be
deemed to be less than any minimum retained premium specified; and
2) The refund shall accompany the notice unless the premium is subject to adjustment or
determination as to amount, in which case the refund shall be made as soon as practicable.
C. Where this contract is terminated by the insured, the insurer shall refund as soon as practicable the
excess of the premium actually paid by the insured over the short rate premium for the expired time, but
in no event shall the short rate premium for the expired time be deemed to be less than any minimum
retained premium specified.
D. The refund may be made by money, postal or express company money order or cheque payable at par.
E. The fifteen days mentioned in clause 1(a) of this condition commences to run on the day following the
receipt of the registered letter at the post office to which it is addressed.
16. Requirements After Loss
A.
Upon the occurrence of any loss of or damage to the insured property, the insured shall, if the loss or
damage is covered by the contract, in addition to observing the requirements of conditions 9, 10 and 11,
1) Forthwith give notice thereof in writing to the insurer;
2) Deliver as soon as practicable to the insurer a proof of loss verified by a statutory declaration,
a. Giving a complete inventory of the destroyed and damaged property and showing in detail
quantities, costs, actual cash value and particulars of amount of loss claimed,
b. Stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how
the fire or explosion originated, so far as the insured knows or believes,
c. Stating that the loss did not occur through any willful act or neglect or the procurement, means
or connivance of the insured,
d. Showing the amount of other insurances and the names of other insurers,
e. Showing the interest of the insured and of all others in the property with particulars of all liens,
encumbrances and other charges upon the property,
f.
Showing any changes in title, use, occupation, location, possession or exposures of the
property since the issue of the contract,
g. Showing the place where the property insured was at the time of loss;
3) If required, give a complete inventory of undamaged property and showing in detail quantities,
cost, actual cash value;
4) If required and if practicable, produce books of account, warehouse receipts and stock lists,
and furnish invoices and other vouchers verified by statutory declaration, and furnish a copy of
the written portion of any other contract.
B.
The evidence furnished under clauses 1(c) and (d) of this condition shall not be considered proofs
of loss within the meaning of conditions 12 and 13.
17. Fraud
Any fraud or willfully false statement in a statutory declaration in relation to any of the above particulars
vitiates the claim of the person making the declaration.
18. Who May Give Notice and Proof
Notice of loss may be given and proof of loss may be made by the agent of the insured named in the
contract in case of absence or inability of the insured to give the notice or make the proof, and absence
or inability being satisfactorily accounted for, or in the like case, or if the insured refuses to do so, by a
person to whom any part of the insurance money is payable.
19. Salvage
A. The insured, in the event of any loss or damage to any property insured under the contract, shall
take all reasonable steps to prevent further damage to such property so damaged and to prevent
damage to other property insured hereunder including, if necessary, its removal to prevent damage
or further damage thereto.
B. The insurer shall contribute pro rata towards any reasonable and proper expenses in connection
with steps taken by the insured and required under subparagraph (1) of this condition according to
the respective interests of the parties.
20. Entry, Control, Abandonment
After loss or damage to insured property, the insurer has an immediate right of access and entry by
accredited agents sufficient to enable them to survey and examine the property, and to make an
estimate of the loss or damage, and, after the insured has secured the property, a further right of
access and entry sufficient to enable them to make appraisement or particular estimate of the loss or
damage, but the insurer is not entitled to the control or possession of the insured property, and without the
consent of the insurer there can be no abandonment to it of insured property.
21. Appraisal
In the event of disagreement as to the value of the property insured, the property saved or the amount
of the loss, those questions shall be determined by appraisal as provided under the Insurance Act
before there can be any recovery under this contract whether the right to recover on the contract is
disputed or not, and independently of all other questions. There shall be no right to an appraisal until a
specific demand therefor is made in writing and until after proof of loss has been delivered.
22. When Loss Payable
The loss is payable within sixty days after completion of the proof of loss, unless the contract provides
for a shorter period.
23. Replacement
A. The insurer, instead of making payment, may repair, rebuild, or replace the property damaged or
lost, giving written notice of its intention so to do within thirty days after receipt of the proofs of loss.
B. In that event the insurer shall commence to so repair, rebuild, or replace the property within forty-
five days after receipt of the proofs of loss, and shall thereafter proceed with all due diligence to the
completion thereof.
24. Action
Every action or proceeding against the insurer for the recovery of a claim under or by virtue of this contract
is absolutely barred unless commenced within one year* next after the loss or damage occurs.
*Two years in the Province of Manitoba and the Northwest and Yukon Territories.
Saskatchewan Statutory Condition 14 is repealed. See The Limitations Act, S.S. 2004, c.L-16.1.
25. Notice
Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or
head office of the insurer in the Province. Written notice may be given to the insured named in the
contract by letter personally delivered to the insured or by registered mail addressed to the insured at
the insured's latest post office address as notified to the insurer. In this condition, the expression
"registered" means registered in or outside Canada.
ADDITIONAL CONDITIONS
26. Notice to Authorities
Where the loss is due to malicious acts, burglary, robbery, theft, or attempt thereat, or is suspected to
be so due, the Insured shall give immediate notice thereof to the police or other authorities having
jurisdiction.
27. No Benefit to Bailee
It is warranted by the Insured that this insurance shall in no way enure directly· or indirectly to the
benefit of any carrier or other bailee.
28. Pair and Set
In the case of loss of or damage to any article or articles, whether scheduled or unscheduled which are
a part of a set, the measure of loss of or damage to such article or articles shall be a reasonable and
fair proportion) of the total value of the set, but in no event shall such loss or damage be construed to
mean total loss of set.
29. Parts
In the case of loss of or damage to any part of the insured property whether scheduled or unscheduled,
consisting, when complete for use, of several parts, the Insurer is not liable for more than the insured
value of the part lost or damaged, including the cost of installation.
30. Sue and Labour
It is the duty of the insured in the event that any property insured hereunder is lost to take all
reasonable steps in and about the recovery of such property. The Insurer shall contribute pro rata
towards any reasonable and proper expenses in connection with the foregoing according to the
respective interests of the parties.
31. Basis of Settlement
Unless otherwise provided, the Insurer is not liable beyond the actual cash value of the property at the
time any loss or damage occurs and the loss or damage shall be ascertained or estimated according to
such actual cash value with proper deduction for depreciation, however caused, and shall in no event
exceed what it would then cost to repair or replace the same with material of like kind and quality.
32. Subrogation
The insurer, upon making any payment or assuming liability therefore under this Policy, shall
e
subrogated to all rights of recovery of the Insured against any person, and may bring action in the name
of the Insured to enforce such rights. Where the net amount recovered after deducting the costs of
recovery is not sufficient to provide a complete indemnity for the loss or damage suffered, that amount
shall be divided between the Insurer and the Insured in the proportions in which the loss or damage
has been borne by them respectively.
6/05
LSW1193A
SECTION 3: Additional Coverages
33. General Average
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 any cause. Such payments shall be payable in full, irrespective of insured or
contributory values.
34. Both to Blame
This insurance indemnifies the Assured, in respect of any risk insured herein, against liability incurred under
any Both to Blame Collision Clause in the contract of carriage. In the event of any claim by carriers under
the said Clause, the Assured agree to notify Underwriters, who shall have the right, at their own cost and
expense, to defend the Assured against such claim.
35. Expenses to Inspect, Repackage and Reship
This insurance covers additional expenses to inspect, repackage, and reship goods insured if such
expenses are the result of such goods insured being involved in an accident caused by one or more of the
risks insured against herein.
36. Debris Removal
This insurance is extended to cover, in addition to any other amount recoverable under this insurance, extra
expenses reasonably incurred by the Assured for the removal and disposal of debris of the goods insured,
or part thereof, by reason of damage thereto caused by one or more of the risks insured against herein, but
excluding absolutely:
A. Any expenses incurred in consequence of or to prevent or mitigate pollution or contamination, or any
threat or liability thereof;
B. The cost of removal of goods insured from any vessel or craft.
In no case shall Underwriters be liable under this clause for more than 10% of the insured value under this
Policy of the damaged goods removed.
37. Landing, Warehousing & Forwarding Charges
Notwithstanding any average warranty contained herein, if this policy in the absence of such warranty would
be liable, Underwriters agree to pay for the following: landing, warehousing, forwarding and special charges;
any partial loss arising from transshipment; the insured value of any package, piece, or unit totally lost in
loading, transshipment or discharge; and for any loss or damage to the goods insured which may be
reasonably attributed to discharge of cargo at port of distress.
38. Airfreight Replacement
In the event of a covered claim for loss of or damage to the goods insured, Underwriters agree to pay the
costs of air-freighting the damaged parts to manufacturers for repair and return, or the air-freighting of
replacement parts from suppliers to destination, even if the goods insured were not originally dispatched by
airfreight. In no case, however, shall Underwriters be liable under this clause for more than the original
insured value of the insured property.
39. Deliberate Damage by Customs Service
This insurance covers physical loss of or damage to goods insured arising out of the performance of
inspection duties of Customs Services or another duly constituted governmental agency.
40. Deliberate Damage/Pollution Hazard
This insurance covers, but only while the goods insured are on board a waterborne conveyance, loss of or
damage to goods directly caused by governmental authorities acting for the public welfare to prevent or
mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the situation
which required such governmental action would have resulted in a recoverable claim under the Policy
(subject to all of its terms, conditions and warranties) if the goods insured would have sustained physical
loss or damage as a direct result of such accident or occurrence. The coverage afforded hereunder shall not
increase the Limits of Liability provided under this insurance.
41. Cargo Ism Forwarding Charges (JC98/023 dated June 4, 1998)
This insurance is extended to reimburse the Assured, up to the limit of the sum Insured for the voyage, for
any extra charges properly and reasonably incurred in unloading, storing and forwarding the goods to the
destination to which it is insured hereunder following release of cargo from a vessel arrested or detained at
or diverted to any other port or place (other than the intended port of destination) where the voyage is
terminated due to either:
A. To such vessel not being certified in accordance with the ISM Code; or
B. To a current Document of Compliance not being held by her owners or operators as required under the
SOLAS Convention 1974 as amended.
This clause, which does not apply to General Average or Salvage or Salvage Charges, is subject to all other
terms, conditions and exclusions contained in this Policy.
42. Fumigation
In the event that any vessel, conveyance, wharf or warehouse is fumigated by order of properly constituted
authority and loss or damage to goods insured results therefrom, Underwriters agree to indemnify the
Assured for such loss or damage and the Assured agrees to subrogate to Underwriters any recourse that
the Assured may have for recovery of such loss or damage from others.
43. Fraudulent Bills of Lading
This insurance covers physical loss or damage to goods insured under this Policy occasioned through the
acceptance by the Assured and/or their agents or shippers of fraudulent Bills of Lading and/or shipping
receipts and/or messenger receipt.
Also to cover loss or damage caused by the utilization of legitimate bills of lading and/or other shipping
documents without the authorization and/or consent of the Assured or their agents.
In no event, however, does this insurance cover loss or damage arising from the shipper’s fraud or
misstatement.
SECTION 4: Duration of Risk Clauses
44. Transit
Subject to Clause 33A, this insurance attaches from the time the goods insured commence transit and/or
are located anywhere incidental to transit and continues during the ordinary course of transit until
transportation terminates at final destination or the Assured’s interest ceases, whichever occurs first.
For the purpose of this clause, final destination shall be defined as delivery to the Consignee’s warehouse
or place of storage or any other warehouse or place of storage which the Assured or their employees elect
to use either for storage other than during the ordinary course of transit or for allocation or distribution.
Coverage shall further include the risk of loading onto the carrying conveyance or into containers
immediately prior to dispatch and unloading from the carrying conveyance or containers immediately after
arrival at Assured’s or Consignee’s premises.
45. Consolidation/Deconsolidation
This insurance is extended to cover the goods insured wherever same is stopped in transit, anywhere in the
world, short of final destination, whether prior to loading and/or after discharge from overseas vessel or at
any transshipment point for the purpose of consolidation, deconsolidation, packing, repacking,
containerization, de-containerization, distribution, redistribution, on or at the premises of freight forwarders,
consolidators, truckers, warehousemen, or others anywhere in the world for a period not exceeding sixty
(60) days after receipt of the goods insured at such premises.
46. Deviation/Errors and Omissions
This insurance shall not be vitiated by any unintentional error in description of vessel, voyage or interest, or
by deviation, over carriage, change of voyage, transshipment or any other interruption in the ordinary course
of transit from causes beyond the control of the Assured. Furthermore, this insurance shall not be prejudiced
by any unintentional delay or inadvertent omission in reporting hereunder. It is agreed, however, that any
such error, deviation or other occurrence mentioned above shall be reported to Underwriters as soon as
known to the Assured and additional premium paid if required.
47. Change of Destination
In case of voluntary change of destination, deviation and/or delay, within the Assured’s control, the goods
insured shall be held covered. The Assured agrees to report all such changes as soon as practicable after
they have knowledge of them and to pay premium if required, at rates to be agreed.
48. Refused or Returned Shipments
In the event of refusal or inability of the Assured or other consignee to accept delivery of goods insured
hereunder, this insurance is extended to cover such shipments subject to original insured value and insuring
conditions while awaiting shipment or reshipment and/or return or until otherwise disposed. The Assured
agrees to report all such shipments as soon as practicable after they have knowledge of them and to pay
premium if required, at rates to be agreed.
49. FOB/FAS Purchases
Coverage commences from the time the goods leave the supplier’s factory, warehouse, store or mill,
notwithstanding the goods and/or interest may have been purchased Free on Board (FOB), Free Alongside
Ship (FAS) or Cost and Freight (C&F), and the Assured subrogating their right of recourse against suppliers
for any loss or damage that may occur prior to delivery at the point designated in the applicable FOB, FAS
or C&F terms.
50. Termination of Transit (Terrorism) (JC2009/056 DATED January 1, 2009)
This clause shall be paramount and shall override anything contained in this insurance inconsistent
therewith.
A. Notwithstanding any provision to the contrary contained in this Policy or the Clauses referred to therein,
it is agreed that in so far as this Policy covers loss of or damage to the goods insured caused by any act
of terrorism being an act of any person acting on behalf of, or in connection with, any organization which
carries out activities directed towards the overthrowing or influencing, by force or violence, of any
government whether or not legally constituted or any person acting from a political, ideological or
religious motive, such cover is conditional upon the goods insured being in the ordinary course of transit
and, in any event, SHALL TERMINATE either:
1) As per the transit clauses contained within the Policy, or
2) On 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, or
3) On 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 Policy, 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
4) When 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) In respect of marine transits, on the expiry of 60 days after completion of discharge overside of the
goods insured from the oversea vessel at the final port of discharge, or
6) In respect of air transits, on the expiry of 30 days after unloading the goods insured from the aircraft
at the final place of discharge,
Whichever shall first occur.
B. If this Policy or the Clauses referred to therein specifically provide cover for inland or other further
transits following on from storage, or termination as provided for above, cover will re-attach, and
continues during the ordinary course of that transit terminating again in accordance with A above.
SECTION 5: Loss Adjustment Clauses
51. Institute Marine Policy General Provisions revised CL.269 October 1, 1982 (Amended)
The following general provisions are incorporated in this contract:
A. Insurable Interest:
1) In order to recover under this insurance, the Assured must have an insurable interest in the goods
insured at the time of the loss.
2) Subject to (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 Underwriters were
not.
B. Duty of Assured:
It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder
1) to take such measures as may be reasonable for the purpose of averting or minimizing such loss,
and
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.
C. Waiver:
Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering
the goods insured shall not be considered as a waiver or acceptance of abandonment or otherwise
prejudice the rights of either party.
52. Constructive Total Loss
No claim for Constructive Total Loss shall be recoverable under this insurance unless the goods insured are
reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the
cost of recovering, reconditioning and forwarding the goods insured to the destination to which it is insured
would exceed its value on arrival.
53. Partial Loss
In case of partial loss or damage insured against by this Policy, a separation of sound and damaged goods
insured shall be made and the amount of loss determined by:
A. An agreed percentage of depreciation, in which event the Assured shall receive such percentage of the
insured value of the damaged goods insured, or, if there is no agreement;
B. Sale of the damaged goods insured, in which event the Assured shall receive the difference between
the insured value of the damaged goods insured sold and the proceeds of sale.
54. Institute Replacement Clause CL.372 December 1, 2008
In the event of loss of or damage to any part(s) of an insured machine or other manufactured item consisting
of more than one part caused by a peril covered by this insurance, the sum recoverable shall not exceed the
cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. Duty incurred in the
provision of replacement or repaired part(s) shall also be recoverable provided that the full duty payable on
the insured machine or manufactured item is included in the amount insured. The total liability of
Underwriters shall in no event exceed the amount insured of the machine or manufactured item.)
55. Labels
In case of damage affecting labels, capsules or wrappers, Underwriters, if liable under the terms of this
Policy, shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or
wrappers and the cost of reconditioning the goods, but in no event shall Underwriters be liable for more than
the insured value of the damaged merchandise.
56. Brands and Trademarks
In case of damage to goods bearing a brand or trademark, the sale of which in any way carries or implies a
guarantee of the supplier or Assured, the salvage value of such damaged goods shall be determined after
removal of all brands and trademarks. On containers from which the brand or trademark cannot be
removed, contents shall be transferred to plain bulk containers. With respect to any merchandise, and/or
containers from which it is impracticable to destroy all evidence of the Assured's connection therewith,
Underwriters agree to consult with the Assured with respect to the disposition of said merchandise and/or
containers.
57. Demurrage Charges
Should Underwriters instruct the Assured to hold a container, and the Assured is assessed a late penalty
and/or demurrage charge for holding the container past the return date, Underwriters will pay the late
penalties and/or demurrage charges. The amount Underwriters will pay shall be the charges assessed from
the time Underwriters direct the Assured to hold the container until the time Underwriters inform the Assured
that the container can be released.
58. Payment on Account
Underwriters agree that where claim papers submitted demonstrate that only the quantum of the claim is in
question, they will make a "payment on account" equal to 75% of the lower of the amounts claimed and
agreed by Underwriters.
59. Other Insurance
If at the time of loss or damage there is available to the Assured or any other interested party, any other
insurance which would apply in the absence of this Policy, the insurance provided for hereunder shall apply
only as excess insurance over such other insurance.
60. SERVICE OF SUIT CLAUSE (CANADA) (Action against Insurer) LMA5028 10/08/2006
In any action to enforce the obligations of the Underwriters they can be designated or named as
"Lloyd's Underwriters” and such designation shall be binding· on the Underwriters as if they had each
been individually named as defendant. Service of such proceedings may validly be made upon the
Attorney In Fact in Canada for Lloyd's Underwriters, whose address for such service is 1155, rue
Metcalfe, Suite 2220, Montreal, Quebec, H3B 2V6.
SECTION 6: Certificates and Reporting
61. Full Value Reporting
If the total value at risk exceeds the limit of liability provided by this insurance, the Assured shall
nevertheless, as soon as known, report the full amount at risk to Underwriters and shall pay full premium
thereon, in consideration of which the principle of co-insurance is waived by Underwriters.
Acceptance of such reports and premium shall not alter or increase the limit of liability of Underwriters but
Underwriters shall be liable for the amount of covered loss up to but not exceeding the applicable limit of
liability.
62. Reports of Shipments
Unless otherwise agreed, it is a condition of this insurance that the Assured is to report to the Canadian
Intermediary listed in the declarations for transmission to Underwriters, as soon as practicable after
becoming known to the Assured each and every shipment and/or interest coming within the terms hereof.
Premium shall be paid by the Assured at rates as agreed. Willful failure to make such reports shall render
this Policy voidable at Underwriter’s option.
63. Authority to Issue Certificates
Authority is hereby granted the Assured to issue Underwriters' Certificates of Insurance hereunder, provided
such certificates shall conform to the terms and conditions of this Policy and/or any written instructions that
are or may be given by Underwriters from time to time. All such certificates issued shall be countersigned by
a duly authorized representative of the Assured.
The Assured hereby agrees to reimburse Underwriters if, by reason of an act or omission of the Assured or
its authorized representatives in issuing a Certificate of Insurance, these Underwriters become obligated to
pay a claim not otherwise covered by the Policy or an amount in excess of what the Policy undertakes to
pay.
64. Letters of Credit
It is agreed that Certificates and/or Policies may be issued hereunder to the Assured to comply with the
insurance requirements of any letter of credit and/or sales contract concerned, provided the cover required
is not wider than that provided by the current Policy Wording. In the event that wider coverage is required,
prior agreement of Underwriters is to be obtained at an additional premium to be agreed.
65. Inspection of Records
Underwriters or their duly appointed representative shall be permitted at any time during business hours
during the time this Policy is in force, or within a year after its termination, to inspect the records of the
Assured as respects goods insured within the terms of this Policy.
SECTION 7: Other Coverages
66. Import Duty and Freight Payable on Delivery
This insurance also covers the risk of partial loss by reason of perils insured against on freight payable on
delivery (unless guaranteed or payable "vessel lost or not lost") and/or on duties imposed on goods
imported into the United States or Canada and insured hereunder, it being understood and agreed,
however, that when the risk upon the goods continues beyond the time of landing from the overseas vessel,
the increased value, consequent upon the payment of such freight and/or duties, shall attach as an
additional insurance upon the goods from the time such freight and/or duty is paid or becomes due to the
extent of the amounts thereof actually paid or payable.
Any limit of liability expressed in this Policy shall be applied separately to such increased value.
The Assured will, in all cases, use reasonable efforts to obtain abatement or refund of duties paid or claimed
in respect of goods lost, damaged or destroyed. It is further agreed that the Assured shall, when
Underwriters so elect, surrender the merchandise to the Customs authorities and recover duties thereon as
provided by law, in which event the claim under this Policy shall be only for a total loss of the merchandise
so surrendered and expenses.
This insurance on freight payable on delivery and/or duty shall terminate at the end of the import movement
covered under this Policy, but nothing contained in this clause shall alter or affect any coverage granted
elsewhere in the Policy during the storage or transit subsequent thereto.
The Assured agrees that on each shipment insured under this clause, a separate amount shall be reported
sufficient to cover said freight and/or duty, upon which premium shall be payable at an agreed percentage of
the merchandise premium.
67. FOB/FAS Sales
This insurance is extended to cover shipments originating in Canada and sold by the Assured on FOB, FAS
or similar terms. This insurance shall cover such FOB/FAS or similar shipments from the time of leaving
store, warehouse or factory at interior point of shipment and continue while in due course of transit to the
port of export and while there, until loaded on board overseas vessel or until Assured's interest and
responsibility cease in accordance with the terms of sale, whichever shall first occur. The Assured agrees to
report the total value of all such shipments and premiums to be paid at rates as agreed.
68. Combined FOB/FAS Sales and Contingency Insurance for Unpaid Vendor
This insurance is extended to cover the Assured’s primary interest in shipments originating in Canada and
sold by the Assured on FOB, FAS or similar terms. This insurance shall cover such FOB/FAS or similar
shipments on a primary basis from the time of leaving store, warehouse or factory at interior point of
shipment and continue while in due course of transit to the port of export and while there, until loaded on
board overseas vessel or until Assured's interest and responsibility cease in accordance with the terms of
sale, whichever shall first occur.
Henceforth, this insurance shall cover on a contingent basis goods sold by the Assured on terms which do
not obligate them to provide insurance. If there is loss or damage from a peril insured herein, and
A. The Assured cannot collect from the consignee or other party because of a refusal or inability to pay;
or
B. The Assured has been paid but remains contractually obligated to replace the loss or damaged goods,
Underwriters shall advance to the Assured the amount of loss as provided herein. The Assured shall repay
such amount upon remittance of the purchase price by the buyer or otherwise. Goods insured under this
coverage shall be valued at the amount of the Assured’s invoice, plus freight and other charges (if not
included in the invoice).
This insurance is for the sole account of the Assured and in no event is it to insure or benefit buyers,
consignees or any other party. Furthermore, it is a condition precedent to this coverage that the
Assured shall not divulge the existence of this coverage to any party. Such disclosure shall void
coverage provided by this clause.
The Assured shall preserve their rights against the buyer or other parties and, upon receipt of payment from
Underwriters, shall subrogate to Underwriters all rights and shall give all assistance, other than pecuniary, in
enforcing them. The Assured agrees to report the total value of all such shipments and premiums to be paid
at rates as agreed.
69. Contingency Insurance for Assured as Consignee
This insurance is extended to cover shipments made by the Assured on terms under which the Assured is
not obliged to furnish cargo insurance.
If goods are covered by other insurance, this insurance shall cover the difference in conditions (any perils
not covered by other insurance but which are covered under the terms of this Policy) and any difference
between the value insured by other insurance and the value in accordance with the applicable valuation
clause of this Policy.
Underwriters will guarantee to the Assured the prompt collection of losses, damages and expenses
otherwise coming within the terms and conditions of this insurance in connection with shipments for which
the Assured has not been paid. Underwriters will advance to the Assured the amount of the loss, damage or
expense, as a loan without interest. The Assured is to repay such amount upon remittance of the sum due
the Assured by the seller, the insurance provided by the seller or otherwise.
This insurance is for the sole account of the Assured and in no event is it to insure or benefit sellers,
shippers or any other party. Furthermore, it is a condition precedent to this coverage that the Assured
shall not divulge the existence of this coverage to any party. Such disclosure shall void coverage
provided by this clause.
The Assured shall preserve their rights against the seller or other parties and, upon receipt of payment from
Underwriters, shall subrogate to Underwriters all rights and shall give all assistance, other than pecuniary, in
enforcing them. The Assured agrees to report the total value of all such shipments and to pay premiums at
rates as agreed.
SECTION 8: Exclusions
The following exclusions shall apply unless modified or superseded elsewhere herein or endorsed hereon:
70. General Exclusions
Unless modified or superseded elsewhere herein or endorsed hereon, this policy does not insure against
any loss, damage or expense attributable to or caused by:
A.
Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the goods insured;
B.
Willful misconduct, infidelity, conversion or dishonest acts of the Assured, or the Assured's employees,
whether committed alone or in collusion with others;
C.
Rust, oxidation or discoloration on unpacked and/or unprotected cargo;
D.
Loss of market or loss, damage, expense or deterioration arising from delay, whether caused by a peril
insured against or otherwise;
E.
Inherent vice or nature of the goods insured;
F.
Insolvency or financial default of the owners, managers, charterers, or operators of the vessel where, at
the time of loading of the goods insured on board the vessel, the Assured is 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 goods insured in good
faith under a binding contract.
G.
Insufficiency or unsuitability of packing or preparation of the goods insured to withstand the ordinary
incidents of the insured transit, but only where such packing or preparation is carried out by the party
presenting the claim for payment, or its employees, prior to the attachment of this insurance (for
purposes of this clause, “packing” shall be deemed to include stowage in a container, and “employees”
shall not include independent contractors).
Where a loss results from improper packing, but the claim is covered because the packing was not
performed by the party presenting the claim for payment or its employees, it is the duty of the Assured
to assist Underwriters in recovery efforts against responsible parties. It is further understood that no
future claims shall be recoverable under this Policy which arise from improper packing performed by the
same person or entity unless additional shipment(s) have already departed from the same shipper when
improper packing is first discovered.
H.
Electrical, electronic and/or mechanical derangement unless the Assured is able to demonstrate that
such damage is the result of a peril insured against;
I.
Shipments on chartered vessels that are not classed A1 American Record or equivalent by a member of
the International Association of Classification Societies; chartered vessels over 40 years of age; vessels
on break-up voyages; chartered barges; vessels built for service on the Great Lakes; vessels built solely
for Military or Naval Service; or vessels built for carriage of dry bulk or liquid bulk cargoes, and which
are more than 20 years of age;
J.
Any accident occurring while rolling stock cargo is being driven under its own power or being towed on
its own wheels, except during loading and unloading and positioning by the steamship line.
71. Paramount Warranties
Subject to the following Paramount Warranties which shall not be modified or superseded by any other
provisions included herein or stamped or endorsed hereon unless such other provision refers specifically to
the risks excluded by these Warranties and expressly assumes said risks:
A. Free of Capture & Seizure (FC&S) Warranty and War Exclusion:
Notwithstanding anything herein contained to the contrary, this insurance is warranted free from all loss,
damage or expense caused by:
1) War, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by
or against a belligerent power;
2) Capture, seizure, arrest, restraint, detainment (piracy excepted), confiscation, preemption,
requisition, nationalization, and the consequences thereof or any attempt thereat, whether in time of
peace or war and whether lawful or otherwise;
3) Derelict mines, torpedoes, bombs, or other derelict weapons of war.
Should this insurance be extended to cover any loss damage or expense excluded by the above FC&S
and War Exclusion Clauses, such additional cover shall not extend to any claim based upon loss of or
frustration of the insured voyage or adventure.
B.
Strikes, Riots and Civil Commotions (SR&CC) Warranty:
Warranted free from loss, damage or expense caused by strikers, locked-out workmen, or persons
taking part in labor disturbances, riots or civil commotions, resulting from strikes, lock-outs, labor
disturbances, riots or civil commotions; or caused by any act of terrorism, an act of terrorism being
defined as an act of any person acting on behalf of, or in connection with, any organization which
carries out activities directed towards the overthrowing or influencing, by force or violence, of any
government whether or not legally constituted caused by any person acting from a political, ideological
or religious motive.
C.
Atomic and Nuclear Exclusion Warranty:
Warranted that this policy shall not apply to any loss, damage or expense arising from the use of any
weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive
force or matter.
72. Cargo ISM Clause JC98/019 dated May 1, 1998
Applicable to shipments on board Ro-Ro passenger ferries. Applicable with effect from the above date to
shipments on board:
A. Passenger vessels transporting more than 12 passengers and;
B. Oil tankers, chemical tankers, gas carriers, bulk carriers and cargo high-speed craft of 500 GT or more.
Applicable with effective from 1 July 2002 to shipments on board all other cargo ships and mobile offshore
drilling units of 500 GT or more.
In no case shall this insurance cover loss, damage or expense where the subject matter insured is carried
by a vessel that is not ISM Code certified or whose owners or operators do not hold an ISM Code Document
of Compliance when, at the time of loading of the subject matter insured on board a vessel, the Assured
were aware, or in the ordinary course of business should have been aware:
A. Either that such vessel was not certified in accordance with the ISM Code.
B. Or that a current Document of Compliance was not held by her owners or operators as required under
the SOLAS Convention 1974 as amended.
This exclusion shall not apply where this 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.
73. Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic
Weapons Exclusion CL.370 November 10, 2003
In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or
contributed to by or arising from:
A. Ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear
waste or from the combustion of nuclear fuel;
B. The radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear
installation, reactor or other nuclear assembly or nuclear component thereof;
C. Any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or
radioactive force or matter;
D. The radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive
matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel,
when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical,
scientific or other similar peaceful purposes;
E. Any chemical, biological, bio-chemical, or electromagnetic weapon.
74. Institute Cyber Attack Exclusion CL.380 November 10, 2003
A. Subject only to (B) below, in no case shall this insurance cover loss damage liability or expense directly
or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting
harm, of any computer, computer system, computer software program, malicious code, computer virus
or process or any other electronic system.
B. Where this clause is endorsed on policies covering risks of war, civil war, revolution, rebellion,
insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or
terrorism or any person acting from a political motive, (A) above shall not operate to exclude losses
(which would otherwise be covered) arising from the use of any computer, computer system or
computer software program or any other electronic system in the launch and/or guidance system and/or
firing mechanism of any weapon or missile.
75. UK Export Control Order 2008 - Revocation of Licenses Clause JC2010/015
In no case shall this insurance provide cover or shall any Underwriter be liable to pay any claim or provide
any benefit hereunder in respect of any movement(s) of goods authorized by an export control license
issued under the UK Export Control Order 2008 if the license has expired or been revoked or for the period
of suspension if the license has been suspended.
This clause shall not apply to a claim that arises prior to expiry revocation or suspension of such license. In
the event of the subsequent reinstatement of the license, cover will re-attach subject always to the terms
and conditions of this insurance.
This clause shall be paramount and shall override anything contained in this insurance inconsistent
therewith.
76. Sanction Limitation and Exclusion Clause JC2010/014 dated August 11, 2010
No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or
provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or
provision of such benefit would expose that (re)insurer to any sanction, prohibition or restriction under
United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union,
United Kingdom or United States of America.
Code of Consumer Rights and Responsibilities
Insurers (including Lloyd's Underwriters), along with the brokers and agents who sell home, auto and business
insurance are committed to safeguarding your rights both when you shop for insurance and when you submit a
claim following a loss. Your rights include the right to be informed fully, to be treated fairly, to timely complaint
resolution, and to privacy. These rights are grounded in the contract between you and your insurer and the
insurance laws of your province. With rights, however, come responsibilities including, for example, the
expectation that you will provide complete and accurate information to your insurer. Your policy outlines other
important responsibilities. Insurers and their distribution networks, and governments also have important roles to
play in ensuring that your rights are protected.
Right to Be Informed
You can expect to access clear information about your policy, your coverage, and the claims settlement
process. You have the right to an easy-to-understand explanation of how insurance works and how it will meet
your needs. You also have a right to know how insurers calculate price based on relevant facts. Under normal
circumstances, insurers will advise an insurance customer or the customer's intermediary of changes to, or the
cancellation of a policy within a reasonable prescribed period prior to the expiration of the policy, if the customer
provides information required for determining renewal terms of the policy within the time prescribed, which could
vary by province, but is usually 45 days prior to expiry of the policy.
You have the right to ask who is providing compensation to your broker or agent for the sale of your insurance.
Your broker or agent will provide information detailing for you how he or she is paid, by whom, and in what
ways.
You have a right to be told about insurers' compensation arrangements with their distribution networks. You
have a right to ask the broker or agent with whom you deal for details of how and by whom it is being paid.
Brokers and agents are committed to providing information relating to ownership, financing, and other relevant
facts.
Responsibility to Ask Questions and Share Information
To safeguard your right to purchase appropriate coverage at a competitive price, you should ask questions
about your policy so that you understand what it covers and what your obligations are under it. You can access
information through one-on-one meetings with your broker or agent. You have the option to shop the
marketplace for the combination of coverages and service levels that best suits your insurance needs. To
maintain your protection against loss, you must promptly inform your broker or agent of any change in your
circumstances.
Right to Complaint Resolution
Insurers, their brokers and agents are committed to high standards of customer service. If you have a complaint
about the service you have received, you have a right to access Lloyd's Underwriters' complaint resolution
process for Canada. Your agent or broker can provide you with information about how you can ensure that your
complaint is heard and promptly handled. Consumers may also contact their respective provincial insurance
regulator for information. Lloyd's is a member of an independent complaint resolution office, the General
Insurance OmbudService.
Responsibility to Resolve Disputes
You should always enter into the dispute resolution process in good faith, provide required information in a
timely manner, and remain open to recommendations made by independent observers as part of that process.
Right to Professional Service
You have the right to deal with insurance professionals who exhibit a high ethical standard, which includes
acting with honesty, integrity, fairness and skill. Brokers and agents must exhibit extensive knowledge of the
product, its coverages and its limitations in order to best serve you.
Right to Privacy
Because it is important for you to disclose any and all information required by an insurer to provide the
insurance coverage that best suits you, you have the right to know that your information will be used for the
purpose set out in the privacy statement made available to you by your broker, agent or insurance
representative. This information will not be disclosed to anyone except as permitted by law. You should know
that Lloyd's Underwriters are subject to Canada's privacy laws - with respect to their business in Canada.
NOTICE CONCERNING PERSONAL INFORMATION
How we use your information
By purchasing insurance from certain Underwriters at Lloyd's, London ("Lloyd's"), a customer provides
Lloyd's with his or her consent to the collection, use and disclosure of personal information. Consent is
subject to the customer's understanding of the nature, purpose and consequences of the collection, use or
disclosure of their personal information.
Information is collected and stored for the following purposes: the communication with Lloyd's policyholders
the underwriting of policies
the evaluation of claims
the analysis of business results
purposes required or authorized by law
What personal information we collect about you
We collect, process, and store the following personal information about you:
Name
Address including postal code and country
Policy number
Claim number Credit card details
Bank account details
We also collect information about you when you visit www.lloyds.com. Further details can be found on our
online Privacy & Cookies policy at http://www.lloyds.com/common/privacy- and cookies-statement.
We will not use your personal information for marketing purposes and we will not sell your personal
information to other parties.
Who we disclose your information to
For the purposes identified, personal information may be disclosed to Lloyd's related or affiliated
organisations or companies, their agents/mandataires, and to certain non-related or unaffiliated
organisations or companies, including service providers. These entities may be located outside Canada
therefore a customer's information may be processed in a foreign jurisdiction (the United Kingdom and the
European Union) and their information may be accessible to law enforcement and national security
authorities of that jurisdiction.
Disclosure without consent
The following are reasonable grounds to permit the disclosure of personal information without the
knowledge or consent of a customer:
Detecting or suppressing fraud
Investigating or preventing financial abuse
For communication with the next to kin or authorized representative of an injured, ill or deceased
individual
Investigating a breach of an agreement or a contravention of the laws of Canada or a foreign
jurisdiction
Witness statement necessary to assess, process or settle insurance claims
Information produced in the course of employment and the disclosure is consistent with the
purpose it was produced for
How to access your information and/or contact us
To access and request correction or deletion of your information, or to obtain written information about
Lloyd's policies and practices in respect of service providers located outside Canada, please contact the
Ombudsman at info@lloyds.ca. The Ombudsman will also answer customer's questions about the
collection, use, disclosure or storage of their personal information by such Lloyd's service providers.
Further information about Lloyd's personal information protection policy may be obtained from the
customer's broker or by contacting Lloyd's on: 514 861 8361, 1 877 455 6937, or through info@lloyds.ca.
10/15
LSW1543C
LLOYD'S UNDERWRITERS' POLICYHOLDERS' COMPLAINT PROTOCOL
Lloyd's strives to enhance your customer experience with us through superior service and innovative insurance
products.
We have developed a formal complaint handling protocol in accordance with the Insurance Companies Act of
Canada to ensure your concerns as our valued customer are addressed expeditiously by our representatives.
This protocol will assist you in understanding the steps we will undertake to help resolve any dispute which may
arise with our product or service. All complaints will be handled in a professional manner. All complaints will be
investigated, acted upon, and responded to in writing or by telephone by a Lloyd's representative promptly after
the receipt of the complaint. If you are not satisfied with our products or services, you can take the following
steps to address the issue:
Firstly, please contact the broker who arranged the insurance on your behalf about your concerns so
that he or she may have the opportunity to help resolve the situation.
If your broker is unable to help resolve your concerns, we ask that you provide us in writing an outline of
your complaint along with the name of your broker and your policy number.
Please forward your complaint to:
Lloyd's Underwriters
Attention: Complaints Officer:
1155 rue Metcalfe, Suite 2220, Montreal (Quebec) H3B 2V6
Tel: 1-877-455-6937 - Fax: (514) 861-0470
E-mail: info@lloyds.ca
Your complaint will be directed to the appropriate business contact for handling. They will write to you within two
business days to acknowledge receipt of your complaint and to let you know when you can expect a full
response. lf need be, we will also engage internal staff in Lloyd's Policyholder and Market Assistance
Department in London, England, who will respond directly to you, and in the last stages, they will issue a final
letter of position on your complaint.
In the event that your concerns are still not addressed to your satisfaction, you have the right to continue your
pursuit to have your complaint reviewed by the following organizations:
General Insurance OmbudService (GIO): assists in the resolution of conflicts between insurance customers and
their insurance companies. The GIO can be reached at:
Toll-free number: 1-877-225-0446
www.giocanada.org
For Quebec clients:
Autorite des marches financiers (AMF): The regulation of insurance companies in Quebec is administered by
the AMF. If you remain dissatisfied with the manner in which your complaint has been handled, or with the
results of the complaint protocol, you may send your complaint to the AMF who will study your file and who may
recommend mediation, if it deems this action appropriate and if both parties agree to it. The AMF can be
reached at
Toll Free: 1-877-525-0337
Quebec: (418) 525-0337
Montreal: (514) 395-0311 www.lautorite.qc.ca
If you have a complaint specifically about Lloyd's Underwriters' complaints handling procedures you may contact
the FCAC.
Financial Consumer Agency of Canada (FCAC) provides consumers with accurate and objective information
about financial products and services, and informs Canadians of their rights and responsibilities when dealing
with financial institutions. FCAC also ensures compliance with the federal consumer protection laws that apply
to banks and federally incorporated trust, loan and insurance companies. The FCAC does not get involved in
individual disputes. The FCAC can be reached at:
427 Laurier Avenue West, 6th Floor, Ottawa ON KlR IB9
Services in English: 1-866-461-FCAC (3222)
Services in French: 1-866-461-ACFC (2232)
www.fcac-acfc. gc.ca
09/14
LSW1542F
Strikes, Riots & Civil Commotions (AIMU January 1, 2008)
This insurance also covers:
1.
Physical loss of or damage to goods insured directly caused by strikers, locked-out workmen, or persons
taking part in labor disturbances or riots or civil commotions;
2.
Physical loss of or damage to the goods insured directly caused by vandalism, sabotage or malicious acts;
and;
3.
Physical loss of or damage to the goods insured directly caused by the act or acts of one or more persons,
whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and
whether any loss, damage or expense resulting therefrom is accidental or intentional; PROVIDED that any
claim to be recoverable under this subsection C be not excluded by the War Exclusion, Atomic and Nuclear
Exclusion, Extended Radioactive Contamination Exclusion Clause (Extended RACE Clause) or Chemical,
Biological, Bio-Chemical and Electromagnetic Exclusion Clause (CBE Clause) in the Policy to which this
endorsement is attached. Notwithstanding the foregoing, coverage under this subsection C is conditional
upon the goods insured being in the ordinary course of transit and, in any event, shall terminate:
A. As per the Transit Clause and any other clauses relating to duration of transit contained in or endorsed
onto the Policy; or,
B. On delivery to the consignee’s or other final warehouse or place of storage at the destination named
herein; or
C. On delivery to any warehouse or place of storage whether prior to or at the destination named herein,
which the Assured elects to use either for storage other than in the ordinary course of transit or for
allocation or distribution; or,
D. In respect of marine transits, on the expiry of 60 days after completion of discharge overside of the
goods insured from the vessel at the port of discharge; or
E. In respect of air transits, on the expiry of 30 days after unloading the goods insured from the aircraft at
the place of discharge;
whichever shall first occur.
Notwithstanding the foregoing, nothing in this clause excludes coverage for insured losses, which are otherwise
covered by this insurance, caused by certified acts of terrorism, as defined in the Terrorism Risk Insurance Act
(P.L. #107-297), or any subsequent amendments or endorsements to the Act.
While the goods insured is at risk under the terms and conditions of this insurance within the United States of
America, the Commonwealth of Puerto Rico, the U.S. Virgin Islands and Canada, this insurance is extended to
cover physical loss of or damage to the goods insured directly caused by acts committed by an agent of any
government, party or faction engaged in war, hostilities or other warlike operations, provided such agent is
acting secretly and not in connection with any operation of military or naval armed forces in the country where
the described goods are situated.
Nothing in this endorsement shall be construed to cover any loss, damage, or expense directly or indirectly
arising from, contributed to or caused by any of the following, whether due to a peril insured against or
otherwise:
1. Change in temperature or humidity;
2. The absence, shortage, or withholding of power, fuel, or labor of any description whatsoever during any
strike, lockout, labor disturbance, riot or civil commotion;
3. Loss of market or loss, damage, or deterioration arising from delay;
4. Hostilities, warlike operation, civil war, revolution, rebellion or insurrection, or civil strife arising therefrom,
except to the limited extent that the acts of certain agents acting secretly have been expressly covered
above; or
5. Nuclear reaction, radiation, or radioactive contamination, as per Extended RACE Clause.
6. Chemical, biological, bio-chemical or electromagnetic weapon, device, agent or material, as per CBE
Clause.
The Assured agrees to report all shipments attaching under this cover and to pay premiums therefore at the
rates established by Underwriters from time to time.
This endorsement may be cancelled by either party upon forty-eight hours written notice to the other party, but
such cancellation shall not affect any risks which have already attached hereunder
American Institute (AIMU) Amended War Risk Only (Cargo) Clauses
(December 2, 1993)
In cases where the total value(s) at risk on any one vessel exceed(s) the limit of liability as set forth in the Policy
to which this endorsement is attached, the Assured agrees, nevertheless, to report to Underwriters full value(s)
at risk and to pay premium thereon at the agreed rates. The Assured further agrees that acceptance of such
reports and premium by Underwriters shall not serve to revoke or to overrule the limit of liability set forth in this
Policy; however, subject to the limit of liability, Underwriters in accepting these reports do agree to pay partial
losses covered by this Policy without reduction by reason of any coinsurance which otherwise may have existed
in the absence of this special agreement.
Subject to the provisions of Clause 4 of this endorsement, should there be an accumulation of interests
exceeding the limits of liability set forth in this Policy by reason of any interruption of transit beyond the control of
the Assured or by reason of any casualty, and/or after the interests have been discharged from the incoming
overseas Vessel at an intermediate port or place for on-carriage from that or any other port or place by another
overseas Vessel, and/or on the on-carrying overseas Vessel, this Policy shall attach for the full amount of risk
(but in no event for more than twice the Policy limit which would be applicable to any one Vessel) provided
written notice be given to Underwriters as soon as known to the Assured.
Underwriters shall cover only those shipments which are insured against marine risks under this Policy, it being
agreed that the description of such shipments, the valuations thereof, the voyage, the designation of the
overseas Vessel (which shall be construed to include aircraft if included under the marine Policy) on which the
goods are to be carried and the ports and/or places of loading and discharge, as reported under the said Policy
against marine risks, shall be deemed incorporated herein. Notwithstanding the foregoing, this Policy shall not
cover purely domestic shipments by air between points in the United States of America (excluding Alaska and
Hawaii).
Any loss payable hereunder shall be payable in funds current in the United States, to the order of Assured thirty
days after full proofs of loss and proofs of interest have been filed with Underwriters.
1. This insurance is only against the risks of capture, seizure, destruction or damage by men-of-war, piracy,
takings at sea, arrests, restraints, detainments and other warlike operations and acts of kings, princes and
peoples in prosecution of hostilities or in the application of sanctions under international agreements,
whether before or after declaration of war and whether by a belligerent or otherwise, including factions
engaged in civil war, revolution, rebellion or insurrection, or civil strife arising therefrom; the imposition of
martial law, military or usurped power, and including the risks of aerial bombardment, floating or stationary
mines and stray or derelict torpedoes, and weapons of war employing atomic or nuclear fission and/or
fusion or other like reaction or radioactive force or matter but excluding loss, damage or expense arising out
of the hostile use of any such weapon; and warranted not to abandon (on any ground other than physical
damage to ship or cargo) until after condemnation of the goods insured.
2. This insurance also covers, but only while the goods insured is on board a waterborne conveyance, loss of
or damage to said goods directly caused by governmental authorities acting for the public welfare to prevent
or mitigate a pollution hazard or threat thereof, provided that the accident or occurrence creating the
situation which required such governmental action would have resulted in a recoverable claim under this
Policy (subject to all of its terms, conditions and warranties) if the goods insured would have sustained
physical loss or damage as a direct result of such accident or occurrence.
Warranted free from any claim based upon loss of, or frustration of, the insured voyage or adventure caused
by arrests, restraints or detainments.
3. This insurance does not cover any loss, damage or expense directly or indirectly arising from, contributed
to, or caused by any of the following, whether due to a peril insured against or otherwise:
A. Commandeering, preemption, requisition or nationalization by the government (de facto or otherwise) of
the country to or from which the goods are insured.
B. Seizure or destruction under quarantine, environmental or customs regulations.
C. Delay, deterioration and/or loss market.
D.
Nuclear reaction, radiation or radioactive contamination, regardless of how it was caused.
4.
A.
The insurance against the risks enumerated in Clause 1, except the risk of floating or stationary mines
and stray or derelict torpedoes, floating or submerged referred to in the paragraph immediately
following, shall not attach to the interest hereby insured or to any part thereof:
1) Prior to being on board an overseas Vessel (For the purpose of this Clause 4 an overseas Vessel
shall be deemed to mean a Vessel carrying the interest from one port or place to another where
such voyage involves a sea passage by the Vessel.)
2) After being discharged overside from an overseas Vessel at the intended port or place of discharge
or after the expiry of 15 days from midnight of the day of arrival of the overseas Vessel at the
intended port or place of discharge, whichever shall first occur.
3) After expiry of 15 days from midnight of the day of arrival of the overseas Vessel at an intermediate
port or place to discharge the interest for on-carriage from that or any other port or place by another
overseas Vessel, but shall reattach as the interest is loaded on the on-carrying overseas vessel.
During the said period of 15 days the insurance remains in force whether the interest is awaiting
transit or in transit between the overseas Vessels.
4) For the purpose of this Clause 4 arrival at the intended port or place of discharge shall be deemed
to mean that time when the overseas Vessel first berths, anchors, moors or is secured in an area
subject to regulation by the authorities of such port or place.
B.
The insurance against the risks of floating or stationary mines and stray or derelict torpedoes, floating or
submerged, attaches as the interest hereby insured is first loaded on a lighter, craft or vessel after
leaving the warehouse at point of shipment in transit for the destination declared hereunder, and ceases
to attach as the interest is finally landed from the vessel, craft or lighter prior to delivery to warehouse at
such destination.
C.
If the contract of affreightment is terminated at a port or place other than the destination named therein
such port or place shall be deemed the intended port or place of discharge for the purpose of this
Clause 4.
D.
Shipments by mail, if covered by this Policy, are insured continuously from the time of leaving the
sender's premises until delivered to the place of address.
E.
Shipments by air (other than by air mail), if covered by this Policy are insured subject to the same terms
and conditions as shipments by overseas Vessel.
F.
It is a condition of this insurance that the Assured shall act with reasonable dispatch in all circumstances
within their control.
G.
If anything contained in this Policy shall be inconsistent with this Clause 4 it shall to the extent of such
inconsistency be null and void.
5.
This insurance shall not be vitiated by deviation, overcarriage, change of voyage, or by any error or
unintentional omission in the description of interest, vessel or voyage, provided the same be communicated
to Underwriters as soon as known to the Assured and an additional premium paid if required.
6.
And in case of any loss or misfortune, it shall be lawful and necessary to and for the Assured, his or their
factors, servants and assigns, to sue, labor and travel for, in and about the defense, safeguard and recovery
of the said goods, and merchandises, or any part thereof, without prejudice to this insurance; nor shall the
acts of the Assured or Underwriters, in recovering saving and preserving the goods insured, in case of
disaster, be considered a waiver or an acceptance of an abandonment; and to the charges whereof, the
said Underwriters will contribute according to the rate and quantity of the sum hereby insured.
7.
General Average and Salvage Charges payable according to United States laws and usage and/or as per
Foreign Statement and/or per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with
the Contract of Affreightment.
8.
It is agreed that the reports of shipments made under the Policy against marine risks mentioned above shall
be deemed to be reports under this Policy also, and the Assured agrees to pay premiums on all shipments
insured under this Policy at the war risks rates of Underwriters as fixed from time to time.
9.
No claim shall be payable hereunder which arises from collision, contact with any fixed or floating object
(other than a mine or torpedo), stranding, heavy weather or fire unless caused directly (and independently of
the nature of the voyage or service which the Vessel concerned or, in the case of a collision, any other
Vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purpose
of this paragraph "power" includes any authority maintaining naval, military or air forces in association with a
power.
10. No recovery for a Constructive Total Loss shall be had hereunder unless the goods insured is reasonably
abandoned on account of its actual total loss appearing to be unavoidable, or because it cannot be
preserved from actual total loss without an expenditure which would exceed its value if the expenditure had
been incurred.
11. It is agreed that this Policy is a separate and wholly independent contract and is not subject to any terms or
conditions of the Policy against marine risks above mentioned (whether physically attached thereto or not)
except as such terms or conditions shall be expressly incorporated herein by reference.
12. This insurance may be cancelled by either party upon forty-eight hours written notice to the other party, but
such cancellation shall not affect any shipment on which this insurance has attached under the terms of
Clause 4 hereof prior to the effective date of such notice. Shipments on which this insurance has not so
attached but for which, prior to the effective date such notice, bills of lading have been issued and (in the
case of exports) Certificates or special policies have been issued and negotiated, shall be covered from the
time of loading on the overseas Vessel, as provided in Clause 4, at the rates of Underwriters, provided that,
prior to said effective date, such shipments were at the risk of the Assured and were covered under the said
Policy against marine risks.
In the event of loss, which may give rise to a claim under this endorsement, prompt notice shall be given to
Underwriters.
Enhanced Clauses
If caused by an insured peril, the following additional clauses shall also apply:
Concealed Damage
It is understood and agreed that any loss or damage found upon opening of original shipping packages at the
final destination, and provided that notice is given to Underwriters within five (5) business days after
delivery to the final destination as provided elsewhere in this Policy, such loss shall be adjusted and paid by
Underwriters in the same manner as though the original shipping package had been opened immediately upon
their arrival, provided such losses would have been otherwise recoverable under the terms of this Policy.
Nevertheless any containers, cases, and/or packages showing visible signs of external damage are to be
opened and examined immediately upon arrival and any such losses shall be reported in accordance with the
claims procedures included in the Policy.
Consequential Damage
If any part or parts of the goods insured are lost or damaged within the coverage of this insurance, thereby
rendering the remaining undamaged part or parts unmerchantable as complete items, Underwriters will pay, the
difference between (A) the amount for which it would be liable under the Valuation Clause of this Policy if all
parts of such items had been physically lost or damaged and (B) the realizable value of the remaining
undamaged part or parts of said items as determined by the Assured.
Furthermore, if, as a consequence of any direct physical loss or damage to goods insured, a full lot or range of
sizes or colors is broken (provided such items are customarily sold by the Assured in lots or ranges of sizes or
colors) so as to reduce the value of the undamaged items remaining in such lot or range, then Underwriters will
pay (provided the Assured is unable to reassemble said lots or ranges of sizes or colors from the remaining
undamaged items) the difference between (A) the amount for which it would be liable under the Valuation
Clause if all items in said lots or range of sizes or colors had been lost or damaged and (B) the realizable value
of the undamaged items remaining in said broken lot or range of sizes or colors as determined by the Assured.
Underwriters shall not be liable for more than the stated limits of liability of this Policy in respect to any one loss,
disaster or casualty involving both direct and consequential damage or in any event for more than the applicable
limit specified elsewhere in this Policy in respect to physical loss.
Control of Damaged Goods
It is agreed that in the event of damage to goods insured under this Policy, the Assured shall retain control of all
damaged goods. The Assured, however, agrees whenever practicable to recondition and sell such goods after
removal of all brands and trademarks.
Where the disposal or sale of such damaged goods is, in the opinion of the Assured, detrimental to their interest
(or if they are unable to sell or dispose of the goods under an agreement with any trade association), subject to
Underwriter’s approval, such damage shall be treated as a constructive total loss and the Assured shall dispose
of the damaged goods to the best advantage, Underwriters being entitled to such proceeds, or they shall be
destroyed in the presence of a representative of Underwriters and the Assured.
Shortages From Containers
When coverage is subject to “All Risk” conditions, this insurance will pay for shortage of contents provided that
the Assured shall provide Underwriters evidence in support of quantities originally loaded in containers.
Shortage of contents shall mean the difference between the number of packages, listed and loaded or alleged to
have been loaded (according to the shipper’s and/or supplier’s invoice and/or packing list) in the container and
the number of packages removed by the Assured and/or their agent at time of container emptying. Losses that
can be unequivocally attributed to the forcible entry of the container after its delivery to the final destination are
excluded.
Trade Shows & Exhibitions (U.S.A)
In consideration of premiums at rates as agreed, subject to all its terms and conditions, this Policy is extended to
cover the goods insured (including exhibition material and/or equipment, the property of the Assured or hired to
them or held by them in trust, or on which the Assured may elect to insure for the account of the purchaser or
owner), while at Trade Shows, exhibitions or corporate meetings within the U.S.A. subject to a limit of $50,000
any one Trade Show, Exhibition or Corporate Meeting per any one account of the Assured.
This Policy shall further cover goods in transit to and/or from Trade Shows, Exhibitions or Corporate Meetings
while in the custody and control of the Assured and/or its employee(s).
This insurance shall further cover laptop computers while at Trade Shows and Exhibitions, but subject to a
maximum limit of liability of $10,000 any one Trade Show, Exhibition or Corporate Meeting, per any one
account of the Assured.
Average Terms and Conditions
It is hereby understood and agreed that special insuring conditions apply to the goods listed below. Unless
otherwise noted below, these goods are insured against “All Risks” of physical loss or damage from any external
cause, except as excluded by the Clauses in Section 8 of this Policy. Where deductibles are listed, such
deductibles shall not apply to claims for General Average, Salvage Charges or claims recoverable under FPA
terms. Coverage is limited to FPA for On-Deck bills of lading.
AUTOMOBILES and MOTORCYCLES (not more than 12 years old)
-
Each claim shall be subject to a deductible of three percent (3%) of the total insured value of each
automobile separately insured (subject to a minimum deductible of $250).
-
No coverage shall be granted hereunder while any vehicle is being operated under its own power,
except while being driven on or off a carrying conveyance for the purposes of positioning, loading or
unloading.
-
Automobiles and Motorcycles in excess of one (1) year old are subject to a pre-shipment survey
completed by the shipper or their representative.
AUTOMOBILES and MOTORCYCLES (more than 12 years old)
-
Insured subject to FPA terms. Subject to an additional premium, coverage may be extended to include
theft and/or non-delivery of an entire shipment.
BAGGED GOODS
-
Each claim due to the breaking, tearing, bursting or ripping of the bag(s) shall be subject to a deductible of
three percent (3%) of the total insured value (subject to a minimum deductible of $250).
BOATS and YACHTS (not more than $500,000 in value or more than 40 feet in length)
-
Each claim shall be subject to a deductible of one percent (1%) of the total insured value (subject to a
minimum deductible of $250).
BOATS and YACHTS (more than $500,000 in value or more than 40 feet in length)
-
Insured subject to FPA terms. Subject to an additional premium, coverage may be extended to include
theft and/or non-delivery of an entire shipment.
CERAMIC, MARBLE and GRANITE TILES (excluding blocks, slabs, countertops and statues)
-
Claims for breakage shall be subject to a deductible of five percent (5%) of the total insured value (subject
to a minimum deductible of $250).
CERAMIC, MARBLE, GRANITE, CONCRETE and PLASTER BLOCKS, SLABS, and STATUES
-
Insured subject to FPA Terms. Subject to an additional premium, coverage may be extended to include
theft and/or non-delivery of an entire shipment.
COUNTERTOPS OF ANY MATERIAL
-
Insured subject to FPA Terms. Subject to an additional premium, coverage may be extended to include
theft and/or non-delivery of an entire shipment.
FROZEN FOODS
-
Excluding gradual deterioration. It is however, agreed that while the goods insured are under refrigeration,
this insurance is extended to cover loss, damage or deterioration due to, or caused by derangement,
breakdown or stoppage of refrigerating machinery or refrigerating plant or insulation provided such
derangement, breakdown, or stoppage continues for a period not less than twenty-four (24) consecutive
hours.
-
Notwithstanding the provisions of the exclusions stated above, this insurance covers loss of or damage
caused by the negligence of any third party who has possession or custody of or responsibility for the
cargo insured hereunder during the time that this Policy is in force.
-
Warranted by the Assured that the interest insured hereunder is in sound condition at the time of the
commencement of risk.
-
Frozen foods shipped by air are on application only.
HOUSEHOLD GOODS and PERSONAL EFFECTS (professionally packed for export)
-
Each claim shall be subject to a deductible of three percent (3%) of the total insured value (subject to a
minimum deductible of $250).
-
The following warranties shall apply: fragile articles (such as glass, china, marble and earthenware) are
limited to fifteen percent (15%) of the total insured value of any single shipment. Any single antique or
piece of artwork shall not exceed $10,000 in insured value. Goods must be professionally packed. A
valued itemized inventory must be available to Underwriters prior to shipment.
-
The following clauses, conditions and exclusions shall also apply:
a. AVERAGE CLAUSE: This Policy is subject to the condition of average, that is to say, if the goods
insured by this insurance shall, at the time of loss, be of greater value than the sum insured under this
insurance, the Assured shall only be entitled to recover such proportion of the said loss as the sum
insured by this Policy bears to the total value of the said goods.
b. DEPRECIATION: Underwriters' liability is restricted to the reasonable cost of repair and no claim is to
attach for depreciation consequent thereon.
c. Excluding loss or damage due to moth, vermin, wear, tear and gradual deterioration.
d. ACCOMPANIED PERSONAL EFFECTS: Excluding loss from unattended vehicle.
e. EXCLUDED GOODS: Excluding loss of or damage to furs, or any cash, notes, stamps, deeds, tickets,
traveler’s checks, jewelry, watches, or similar valuable articles.
HOUSEHOLD GOODS and PERSONAL EFFECTS (not professionally packed for export)
-
Insured subject to FPA terms.
LUMBER STOWED UNDER
-
Each claim shall be subject to a deductible of two percent (2%) of the total insured value (subject to a
minimum deductible of $250).
LUMBER STOWED ON DECK
-
Insured subject to FPA terms. Subject to an additional premium, coverage may be extended to include
theft and/or non-delivery of an entire shipping package.
-
Goods insured stowed in an enclosed space or in a container shall be deemed to be goods stowed under
deck.
SCRAP
-
Insured subject to FPA terms.
-
However, no coverage whatsoever shall be provided for the following:
a. Bearings, turnings, engine blocks and/or oil covered scrap
b. Shipments exceeding $500,000 per any one conveyance
c. Shipments made on vessels for break-up voyages
d. Shipments on vessels over 25 years of age.
SERVER RACKS (WHEN CONTAINING COMPUTERS, SERVERS and/or ELECTRONIC COMPONENTS)
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Each claim shall be subject to a deductible of ten percent (10%) of the total insured value (subject to a
minimum deductible of $5,000).
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Claims for damage and/or breakage shall be excluded entirely unless the server racks are packed and
shipped in wood crates.
STEEL/METAL and STEEL/METAL PRODUCTS
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Excluding the risks of rust, oxidation, and discoloration.
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Coverage for non-crated pipe, tube, rods, beams or similar merchandise to further exclude the risks of
bending, twisting, and end damage.
WINES, LIQUORS, BEERS and SIMILAR SPIRITS
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Claims for pilferage and breakage shall be subject to a deductible of one percent (1%) of the total
insured value (subject to a minimum deductible of $250).
Deductible Clause
Unless a higher deductible is specified herein, all shipments shall be subject to the following deductibles:
New Goods valued up to $10,000: Subject to a $250 deductible each and every loss.
New goods valued in excess of $10,000: Subject to a $500 deductible each and every loss.
Auto Parts: Subject to a deductible of 10% of the total insured value (subject to a minimum deductible of $250).
Used Goods: Subject to a deductible of 10% of the total insured value (subject to a minimum deductible of
$250).
These deductibles shall not apply to claims for General Average or Salvage Charges or claims recoverable
under FPA terms.
Used Goods
It is hereby understood and agreed that this Policy is extended to cover Used Goods as follows:
USED GOODS (except printing presses and textile machines) are insured against “All Risks” of physical loss or
damage from any external cause, except as excluded by the Clauses in Section 8 of this Policy. Coverage is
further subject to the following:
A. Each claim shall be subject to a deductible of 10% of the total insured value (subject to a minimum
deductible of $250).
B. Excluding rust, oxidation, discoloration, marring, chipping, scratching and cost of repainting.
C. Warranted that the shipper or their representative shall perform a pre-shipment condition survey with
detailed photographs.
D. Underwriters shall not be liable for more than $500,000 any one conveyance.
E. Goods over ten years old are subject to the Secondhand Replacement Clause: In the event of a claim
for loss of or damage to any part or parts of the interest insured, in consequence of a peril covered by this
policy, the amount recoverable hereunder shall not exceed such proportion of the cost of replacement of the
part or parts lost or damaged as the insured value bears to the value of a new machine plus additional
charges for forwarding and refitting the new part or parts if incurred. In no case shall the liability of
Underwriters exceed the insured value of the complete article.
It is understood and agreed that the conditions in this endorsement shall not apply to Automobiles and/or
Household Goods and Personal Effects.