Institute Cargo Clauses (B)

Risks covered Exclusions

1 Risks Clause 4 General Exclusions Clause

This insurance covers, except as provided in Clauses 4, 5, 6 and In no case shall this insurance cover
7 below,
4.1
1.1 loss damage or expense attributable to wilful misconduct of the
loss of or damage to the subject-matter insured reasonably Assured
attributable to
4.2
1.1.1 ordinary leakage, ordinary loss in weight or volume, or ordinary
fire or explosion wear and tear of the sub-ject-matter insured
1.1.2 4.3
vessel or craft being stranded grounded sunk or capsized loss damage or expense caused by insufficiency or unsuitability
of packing or preparation of the subject-matter insured (for the
1.1.3
purpose of this Clause 4.3 “packing” shall be deemedto include
overturning or derailment of land conveyance stowage in a container or liftvan but only when such stowage is
1.1.4 carried out prior to attachment of this insurance or by the As-
sured or their servants)
collision or contact of vessel craft or conveyance with any exter-
nal object other than water 4.4
1.1.5 loss damage or expense caused by inherent vice or nature of the
subject-matter insured
discharge of cargo at a port of distress
4.5
1.1.6
loss damage or expense proximately caused by delay, even
earthquake volcanic eruption or lightning,
though the delay be caused by a risk insured against (except
1.2 expenses payable under Clause 2 above)
loss of or damage to the subject-matter insured caused by 4.6
1.2.1 loss damage or expense arising from insolvency or financial
general average sacrifice default of the owners managers charterers or operators of the
vessel
1.2.2
4.7
jettison or washing overboard
loss damage or expense arising from the use of any weapon of
1.2.3 war employing atomic or nuclear fission and/or fusion or other
entry of sea lake or river water into vessel craft hold conveyance like reaction or radioactive force or matter.
container liftvan or place of storage,
5 Unseaworthiness and Unfitness Exclusion Clause
1.3 5.1
total loss of any package lost overboard or dropped whilst load- In no case shall this insurance cover loss damage or expense
ing on to, or unloading from, vessel or craft. arising from
2 General Average Clause - unseaworthiness of vessel or craft,
This insurance covers general average and salvage charges, - unfitness of vessel craft conveyance container or liftvan for
adjusted or determined according to the contract of affreight- the safe carriage of the subject-matter insured,
ment and/or the governing law and practice, incurred to avoid or
where the Assured or their servants are privy to such unsea-
in connection with the avoidance of loss from any cause except
worthiness or unfitness, at the time the subject-matter insured is
those excluded in Clauses 4, 5, 6, and 7 or elsewhere in this
loaded therein.
insurance.
5.2
3 “Both to Blame Collision” Clause
The Underwriters waive any breach of the implied warranties
This insurance is extended to indemnify the Assured against such
of seaworthiness of the ship and fitness of the ship to carry the
proportion of liability under the contract of affreightment “Both
subject-matter insured to destination, unless the Assured or their
to Blame Collision” Clause as is in respect of a loss recoverable
servants are privy to such unseaworthiness or unfitness. In no
hereunder. In the event of any claim by shipowners under the
case shall this insurance cover loss damage or expense caused by
said Clause the Assured agree to notify the Underwriters who
shall have the right, at their own cost and expense, to defend the
Assured against such claim.
6 War Exclusion Clause 8.3
6.1 This insurance shall remain in force (subject to termination as
war civil war revolution rebellion insurrection, or civil strife provided for above and to the provisions of Clause 9 below)
arising therefrom, or any hostile act by or against a belligerent during delay beyond the control of the Assured, any deviation,
power forced discharge, reshipment or transhipment and during any
variation of the adventure arising from the exercise of a liberty
6.2 granted to shipowners or charterers under the contact of af-
capture seizure arrest restraint or detainment (piracy excepted), freightment.
and the consequences thereof or any attempt thereat
9 Termination of Contract of Carriage Clause
6.3 If owning to circumstances beyond the control of the Assured
derelict mines torpedoes bombs or other derelict weapons of either the contract of carriage is terminated at a port or place
war. In no case shall this insurance cover loss damage or expense other than the destination named therein or the transit is oth-
erwise terminated before delivery of the goods as provided for
7 Strikes Exclusion Clause
in Clause 8 above, then this insurance shall also terminate unless
7.1 prompt notice is given to the Underwriters and continuation
caused by strikers, locked-out workmen, or persons taking part of cover is requested when the insurance shall remain in force,
in labour disturbances, riots or civil commotions subject to an additional premium if required be the Underwrit-
ers, either
7.2
resulting from strikes, lock-outs, labour disturbances, riots or civil 9.1
commotions until the goods are sold and delivered at such port or place, or,
unless otherwise specially agreed, until the expiry of 60 days
7.3
after arrival of the goods hereby insured at such port or place,
caused by any terrorist or any person acting from a political whichever shall first occur,
motive.
or
9.2
Duration
if the goods are forwarded within the said period of 60 days (or
any agreed extension thereof) the destination named herein or
8 Transit Clause to any other destination, until terminated in accordance with to
8.1 provisions of Clause 8 above.
This insurance attaches from the goods leave the warehouse or
10 Change of Voyage Clause
place of storage at the place named herein for the commence-
ment of the transit, continues during the ordinary course of Where, after attachment of this insurance, the destination is
transit and terminates either changed by the Assured, held covered at a premium and on
conditions to be arranged subject to prompt notice being given
8.1.1 to the Underwriters.
on delivery to the Consignees’ or other final warehouse or place
of storage at the destina-tion named herein,
Claims
8.1.2
on delivery to any other warehouse or place of storage, whether 11 Insurable Interest Clause
prior to or at the destina-tion named herein, which the Assured
elect to use either 11.1
In order to recover under this insurance the Assured must have
8.1.2.1 an insurable interest in the subject-matter insured at the time of
for storage other than in the ordinary course of transit or the loss.
8.1.2.2 11.2
for allocation or distribution, or Subject to 11.1 above, the Assured shall be entitled to recover
for insured loss occurring during the period covered by this
8.1.3
insurance, notwithstanding that the loss occurred before the
on the expiry of 60 days after completion of discharge overside contract of insurance was concluded, unless the Assured were
of the goods hereby in-sured from the oversea vessel at the final aware of the loss and the Underwriters were not.
port of discharge, whichever shall first occur.
12 Forwarding Charge Clause
8.2
Where, as a result of the operation of a risk covered by this
If, after discharge overside from the oversea vessel at the final insurance, the insured transit is terminated at a port or place
port of discharge, but prior to termination of this insurance, the other than that to which the subject-matter is covered under
goods are to be forwarded to a destination other that that to this insurance, the Underwriters will reimburse the Assured for
which they are insured hereunder, this insurance, whilst remaining any extra charges properly and reasonably incurred in unload-
subject to ter-mination as provided for above, shall not extend ing storing and forwarding the subject-matter to the destination
beyond the commencement of transit to such other destination. to which it is insured hereunder. This Clause 12, which does not
apply to general average or salvage charges, shall be subject to 17 Waiver Clause
the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall Measures taken by the Assured or the Underwriters with the
not include charges arising from the fault negligence insolvency object of saving, protecting or recovering the subject-matter
or financial default of the Assured or their servants. insured shall no be considered as a waiver or acceptance of
13 Constructive Total Loss Clause abandonment or otherwise prejudice the rights of either party.
No claim for Constructive Total Loss shall be recoverable
hereunder unless the subject- matter insured is reasonably
Avoidance of delay
abandoned either on account of its actual total loss appearing to
be unavoidable or because the cost of recovering, reconditioning
and forwarding the subject-matter to the destination to which it 18 Reasonable Dispatch Clause
is insured would exceed its value on arrival. It is a condition of this insurance that the Assured shall act with
reasonable despatch in all circumstances within their control.
14 Increased Value Clause
14.1
If any Increased Value insurance is effected by the Assured on Law and practice
the cargo insured herein the agreed value of the cargo shall be
deemed to be increased to the total amount insured under this 19 English Law and Practice Clause
insurance and all Increased Value insurances covering the loss, This insurance is subject to English law and practice.
and liability under this insurance shall be in such proportion as
the sum insured herein bears to such total amount insured. In
the event of claim the Assured shall provide the Underwriters
with evidence of the amounts insured under all other insurances.
14.2
Where this insurance is on Increased Value the following clause
shall apply:
The agreed value of the cargo shall be deemed to be equal to
the total amount insured under the primary insurance and all
Increased Value insurances covering the loss and effected on the
cargo by the Assured, and liability under this insurance shall be in
such proportion as the sum insured herein bears to such total
amount insured. In the event of claim the Assured shall provide
the Underwriters with evidence of the amounts insured under
all other insurances.

Benefit of Insurance

15 Not to Inure Clause

This insurance shall not inure to the benefit of the carrier or
other bailee.

Minimising Losses

16 Duty of Assured Clause

It is the duty of the Assured and their servants and agents in
respect of loss recoverable hereunder
16.1
to take such measures as may be reasonable for the purpose of
averting or minimising such loss, and
16.2
to ensure that all rights against carriers, bailees or other third
parties are properly pre-served and exercised and the Un-
derwriters will, in addition to any loss recoverable hereunder,
reimburse the Assured for any charges properly and reasonably
incurred in pursuance of these duties. Note: It is necessary for the Assured when they become aware of
an event which is “held covered” under this insurance to give prompt
notice to the Underwriters and the right to such cover is dependent
upon compliance with this obligation.