This document discusses various aspects of cargo insurance. It begins by explaining the basic principle of indemnity in insurance, which is to place the insured in the same position after a loss as before. It then discusses the importance of cargo insurance for protecting interests in goods in transit and enabling trade financing. The document goes on to explain different types of marine cargo insurance coverage including FPA (free from particular average), WPA (with particular average), and all risks. It defines losses covered such as total loss, partial loss, general average, and expenses incurred to rescue insured cargo. Finally it outlines exclusions from basic coverage under cargo insurance policies.

1. 1
Cargo Insurance
SITE, UIBE

2. 2
Importance of Insurance
 The purpose of insurance is to protect insurable interest of the
assured whereby, in the event of loss of or damage to the subject
matter insured resulting from an insured peril, he or she is placed
in the same position that he or she enjoyed immediately before
the loss occurred. This is “indemnity”. This basic principle of
indemnity provides, in effect, that after indemnity the assured
may not be in a better, or worse, position than they were in
before the loss.
 Adequate insurance is vital to protect the interests of those with
goods in transit. Apart from the protection aspect, cargo
insurance also plays a vital role in the financing of overseas trade
by making it possible for banks to lend money against cargo in
transit – a proposition they will only consider if the cargo is
protected by insurance.

3. 3
Cargo Insurance
 In the majority of international trade transactions, the contract will
clearly state which party is responsible for arranging insurance for the
goods being supplied and, in some cases, the point at which
responsibility changes from supplier to buyer. This will be reflected in
the Incoterms applied to the contract.
 Irrespective of the responsibility, it is important that the insurance cover
is in force for the entire journey being undertaken, including any loading,
unloading and temporary storage.
 Accordingly, insurance cover for the goods should embrace the
following:
 Transportation of merchandise to the seaport or airport of departure
 Period during which the goods are stored awaiting shipment or loading
 The time while on board the ship, aircraft or other conveyance such as the
international road haulage operation
 The “off loading” and storage on arrival at destination airport, seaport or
other specified place
 Transportation to the buyer’s premises or address

4. 4
Marine Insurance
 Marine insurance is defined as “a contract of marine insurance
whereby the insurer undertakes to indemnify the assured in a
manner and to the extent thereby agreed, against marine losses,
that is to say, the losses incidental to marine adventure.” Hence,
this includes cargo insurance involving the maritime conveyance
of merchandise from one country to another.
 The trade terms the parties choose in their sales contract
determine who is responsible for purchasing maritime insurance,
and who benefits from it. However, even when the “risk of loss”
shifts from the seller to the buyer, the seller continues to have an
interest in seeing that the goods are insured. If the goods are lost
and buyer is either bankrupt or unwilling to pay, insurance may
be the only basis for recovery available to the seller.

5. 5
Marine Insurance
 Should a party is required to purchase insurance be involved in an
isolated sale, he can purchase a special cargo policy covering the
single sale. It is more common, however, for cargo to be covered
by an open cargo policy.
 Such a policy is an open-ended contract that insures all the cargo
of an exporter during a particular time period. All of the
exporter’s shipments, whether by truck, rail, air, or vessel, are
covered.
 Once issued, this policy remains in force until no longer required,
i.e. can be cancelled by either the assured or the insurer
 Annually reviewed to ensure that the assured’s requirements
continue to be met
 Premium is normally payable in arrears, being calculated according
to the value of shipments in a particular month.

6. 6
Risks Covered by Marine Insurance
 Perils at the Sea
1. Natural Calamity ( 自 然 灾 害 ): heavy weather, lightening, earthquake,
volcanic eruption and so on
Do not actually include all disasters due to natural forces
2. Fortuitous Accident (海上意外事故): fire, explosion, vessel being stranded,
grounded, sunk or capsized. Collision or contact of vessel with any external
object other than water, etc
 Extraneous risks (外来风险)
1. General extraneous risks ( 一般外来风险): theft and pilferage,
contamination, leakage, breakage, sweating and/or heating, taint of odor,
rusting, hook damage, fresh and/or rain water damage, short-delivery and
non-delivery, shortage in weight, clashing and so on
2. Special extraneous risks (特殊外来风险): war, strike, failure to deliver due
to some special laws or regulations

7. 7
Losses covered by Marine Insurance
(保障的损失)
 In the insurance business, loss is referred to in most cases as the
special term “average (海损)”, which actually has nothing to do
with its normal meaning.
 Marine insurance defines its coverage in terms of the nature of
the loss or damage, the extent of the loss or damage, and the
conditions under which it occurs. The losses caused by the high
seas fall into two categories:
 The loss of cargo can be either total or partial:
1. Total loss (全部损失)
 Actual total loss (实际全损)
 Constructive total loss (推定全损)
2. Partial loss (部分损失)
 Particular Average (单独海损)
 General Average (共同海损)

8. 8
Total Loss
 Actual total loss (实际全损)
 The complete loss of the insured cargo in value.
 In case of actual total loss, the insured can get indemnity against
the total loss of the insured value of cargo.
 Constructive total loss (推定全损)
 It may occur if the cargo is not actually lost, but is so seriously
damaged as to make the goods no longer useful for the purpose for
which they were originally intended.
 It may also occur when the cost of salvaging the shipment would be
greater than the salvaged value of the merchandize. The shipment
insured is reasonably abandoned as any further efforts at salvage
would be fruitless.
 In case of constructive total loss, most insurance policies provide
for the payment of a total loss up to the insured amount.

9. 9
Partial Loss
 Particular Average (单独海损):
 Particular average is partial loss of or damage to the subject matter of
insurance in marine insurance.
 It occurs when due to insured risks, part of the shipper’s cargo is damaged
and no one else’s cargo has to be sacrificed to save the voyage.
 The cargo owner whose goods were damaged or lost should refer to his
insurance company, provided his policy covers the specific type of loss
suffered.
 General Average (共同海损):
 General average comes about in the carriage of goods at sea when, in order
to avoid some threat to the whole venture, some expense has to be incurred,
or some loss or damage is deliberately inflicted, in order to save the ship and
its cargo.
 Those interests, whose property were saved must contribute proportionally
to cover the losses of the one whose property was voluntarily sacrificed.

10. 10
General Average
 General average can only be established under the
following circumstances:
 The peril must be real or unavoidable
 The sacrifice made should be reasonable and voluntary to
avoid the peril or to save the common interests from the
consequence of the peril
 The sacrifice or expenditure must be extraordinary in nature
but not a direct result of the peril
 The sacrifice made and the expenditure incurred must be
effective, i.e., both the ship and/or the whole part of some
part of the cargo safely arrive at the final port of destination

11. 11
Difference between Particular Average
and General Average
 Particular average is a kind of cargo loss usually caused
directly by sea perils, but general average is a kind of
cargo loss caused by intentional measures taken.
 Partial loss is often borne by the party whose cargo is
damaged, but general average should be contributed by all
the benefited parties proportionately.
 A person seeking to claim a general average contribution from
other parties must show:
1. That the loss was incurred to benefit everyone; and
2. That the person making the claim was not responsible for causing the
danger.
 E.g., a shipping company cannot claim general average when it has
hired tugs to refloat a ship that ran aground because of the captain’s
faulty navigation.

12. 12
Expenses Incurred for the Rescue of
Insured Cargo (保障的费用)
 Expenditure refer to the charges incurred in
rescuing the insured cargo.
 There are mainly two types of expenses incurred
for the rescue of the insured cargo when the ship
runs the risk or wrecks.
1. Sue and Labor Expenses (施救费用)
2. Salvage Charge (救助费用)

13. 13
Expenses Incurred for the Rescue of
Insured Cargo (保障的费用)
1. Sue and Labor Expenses (施救费用)
 Sue and labor expenses are extraordinary expenditures made in
time of peril to avert or minimize any loss of or damage to the
goods insured.
 Unlike general average, sue and labor expenses are not something
that is carried out for the benefit of a common adventure, but what
are carried out specifically for the singular benefit of the goods
insured.
 Sue and labor expenses recoverable. So, it is the responsibility of
the assured to act to keep his insured loss at a minimum level.

14. 14
Expenses Incurred for the Rescue of
Insured Cargo (保障的费用)
2. Salvage Charge (救助费用)
 Salvage charges are compensation paid for the rescue of a ship,
its cargo or passengers from a loss or possible loss at sea, or
from a wreck or fire. Charges are recoverable by savor
independently of contract.
 They do not include the expenses of services in the nature of
salvage rendered by the assured or his agents, or any person
employed or hired by them, for the purpose of averting a peril
insured against.
 Such expenses, where properly incurred, may be recoverable as
particular charges or as a general average loss, according to the
circumstances under which they are incurred.

15. 15
C.I.C. Insurance Coverage
我国海上货物保险的险别
 Insurance coverage refers to the risks and losses covered by the
insurer.
 The most commonly used terms in cargo insurance in China is
China Insurance Clause (C.I.C., 中国保险条款). All terms are
developed according to the usual practice in the international
insurance market.
 According to C.I.C. clause, marine cargo insurance can be
divided into:
 Basic coverage (基本险)
1. Free from particular average (FPA, 平安险)
2. With particular average (WPA, 水渍险)
3. All risks (一切险)
 Additional coverage (附加险别)
1. General additional coverage (一般附加险)
2. Special additional average (特殊附加险)

16. 16
Free From Particular Average
 Under FPA, the insurance company should be liable for:
1. Total or constructive total loss of the whole consignment hereby
insured caused in the course of transit by natural calamities (被保险
货物在运输途中由于恶劣气候、雷电、海啸、地震、洪水等自
然灾害造成整批货物的全部损失或推定全损)
2. Total or partial loss caused by accidents (由于运输工具遭受搁浅、
触礁、沉没、互撞、与流冰或其他物体碰撞以及失火、 爆炸意
外事故造成货物的全部或部分损失)
3. Partial losses resulting from the perils of the sea are
recoverable only if the vessel has been stranded, sunk, burned
or in a collision (在运输工具已经发生搁浅、触礁、沉没、焚毁
意外事故的情况下，货物在此前后又在海上遭受恶劣气候、雷
电、海啸等自然灾害所造成的部分损失)
4. Total or partial loss consequent on falling of entire package or
packages into sea during loading, transshipment or discharge (装卸
或转船时货物落海造成的全部损失或部分损失)

17. 17
Free From Particular Average
 Under FPA, the insurance company should be liable for:
5. Reasonable cost incurred by the insured in salvaging the goods or averting
or minimizing a loss recoverable under the policy, provided that such cost
shall not exceed the sum insured of the consignment so saved (在承保范围
内采取抢救、防止或减少或损的措施所支付的合理费用，但不能超过
保险金额)
6. Losses attributable to discharge of the insured goods at a port of distress
following a sea peril as well as special charges arising from loading,
warehousing and forwarding of the goods at an intermediate port of call or
refuge (遭遇海难在避难港由于卸货引起的损失，以及在中途港或避难
港由于卸货、存仓和运送货物所产生的特殊费用)
7. Sacrifice in and contribution to general average and salvage charges (共同
海损的牺牲、分摊和救助费用)
8. Such proportion of losses sustained by the ship-owners as is to be
reimbursed by the cargo owner under the contract of affreightment “both to
blame collision” clause (运输契约中如订有“船舶互撞条款”，则根据该
条款规定应由货方偿还船方的损失)

18. 18
With Particular Average
 Aside from the risks covered under FPA, this
insurance also covers partial losses of the insured
goods caused by natural calamities like heavy
weather, lightening, tsunami, earthquake and/or
flood and so on.

19. 19
All Risks
 Aside from the risks covered under the FPA and
WA, this insurance also covers all risks of loss of
or damage to the insured goods whether partial or
total, arising from external causes in the course of
transit.

20. 20
Insurance Coverage
 FPA: this is the narrowest form of coverage. In addition to
providing coverage for a total loss of the goods resulting from
an accident to the vessel (due to perils of the sea), partial losses
resulting from the perils of the sea are recoverable only if the
vessel has been stranded, sunk, burned or in a collision.
 WPA: this extends the FPA coverage to cover partial loss due
to perils of the sea. If the vessel has been stranded, sunk or
burned, or has collided with another vessel, losses are
recoverable in full.
 All Risks: this coverage is the most comprehensive. It covers
all risks of physical loss or damage from an external cause, but
does not include war, strikes, riots, seizure or detention, unless
endorsed by a special clause or separate policy.

21. 21
Exclusions from Basic Coverage
基本险别的除外责任
 Insurer is not liable for:
1. Loss or damage caused by the intentional act or fault of the insured (被保险人的故
意行为或过失所造成的损失)；
2. Loss or damage falling under the liability of the consignor (属于发货人的责任引起
的损失)；
3. Loss or damage arising from the inferior quality or shortage of the insured goods
prior to attachment of this insurance (在保险责任开始前，被保险货物即已存在品
质不良或者数量短少造成的损失)；
4. Loss or damage arising from normal depreciation, inherent vice or nature of the
insured goods, loss of market and/or delay in transit and any expenses arising
therefrom (被保险货物的自然损耗、本质缺陷、特性、市价跌落、运输延迟所
引起损失费用)；
5. Risks and liabilities covered and excluded by the Marine Cargo War Risks Clauses
and Strike, Riot and Civil Commotion Clauses (海洋运输货物战争险条款和罢工
险条款所规定的责任范围以及除外责任)

22. 22
Commencement and Termination of
Liability (基本险保险期限)
 Warehouse to Warehouse Clause (“仓至仓”条款) is adopted in stipulating the
terms of commencement and termination of marine insurance clauses.
 The insurance attaches from the time the goods hereby insured leave the warehouse or
place of storage named in the policy for the commencement of the transit and
continues in force in the ordinary course of transit including sea, land and inland
waterway transit and transit in lighter until the insured goods are delivered to the
consignee’s final warehouse or place of storage at the destination named in the policy
or to any other place used by the insured for allocation or distribution of the goods or
for storage other than in the ordinary course of transit.
 The insurance shall, however, be limited to sixty days after completion of discharge of
the insured goods from the seagoing vessel at the final port of discharge before they
reach the above mentioned warehouse or place of storage. If prior to the expiry of the
above mentioned sixty days, the insured goods are to be forwarded to a destination
other than that named in the policy, the insurance shall terminate at the
commencement of such transit.

23. 23
General Additional Coverage
(一般附加险)
 There are altogether 11 general additional coverage:
1. Theft, Pilferage and Non-delivery Risk, T.P.N.D. (偷窃提货不着险): cover
loss of or damage to the insured goods on the insured value caused by theft
and/or pilferage and non-delivery of entire package
2. Fresh Water and Rain Damage Risk, F.W.R.D. (淡水雨淋险): cover loss of
or damage to the insured goods directly caused by rain and/or fresh water
3. leakage Risk (渗漏险): cover risk of leakage occurring during the course of
transit caused by damage to the container, or deterioration of the insured
goods resulting from leakage of liquid in which the insured goods are
stored
4. Shortage Risk (短量险): cover risk of shortage occurring during the course
of transit due to breakage of outer packing, or loss of quantity and actual
shortage in weight in the case of bulk cargo, but excluding normal loss
5. Hook Damage Risk (钩损险): cover hook damage to the insured goods
occurring during loading or unloading including expenses of reconditioning
or change or packing, if any

24. 24
General Additional Coverage
(一般附加险)
 There are altogether 11 general additional coverage:
6. Intermixture and Contamination Risk (混杂沾污险): cover risks of
intermixture and contamination occurring during the course of transit
7. Clash and Breakage Risk (碰损破碎险): cover risks of breakage and clash
occurring during the course of transit caused by shock, collision or press of
the insured goods
8. Rust Risk (锈损险): cover risk of rust occurring during the course of transit
9. Taint of Odor Risk (串味险): cover risk of taint of odor of the insured
edibles, Chinese medicine, toilet material etc. occurring during the course
of transit effected by other goods
10. Sweat and Heating Risk (受潮受热险): cover risks of sweat, heating and
wetting occurring during the course of transit arising from sudden change
of temperature or breakdown of ventilation of the carrying vessel
11. Breakage of Packing Risk (包装破裂险): cover loss or damage occurring
during the course of transit caused by breakage of packing resulting from
rough handling, loading and unloading including expenses of
reconditioning and change of package, if any, for the safe prosecution of
transportation

25. 25
General Additional Coverage
(一般附加险)
 Sometimes it is necessary to apply for one or several
of the above-mentioned general additional coverage
aside from FPA or WPA.
 There is no need to apply for general additional
coverage if All Risks cover is obtained since all the
eleven general additional risks are covered under it.

26. 26
Special Additional Coverage
(特殊附加险)
 War Risk (战争险)
 Marine cargo war risk covers loss of or damage to the insured goods caused
directly by or in consequence of war, warlike operations, hostile acts, armed
conflicts or piracy; and also loss or damage caused by capture, seizure,
arrest, restraint or detainment arising from the events mentioned above; loss
of damage caused by conventional weapons of war including mines,
torpedoes and bombs; sacrifice in and contribution to general average and
salvage charges arising form the risks covered.
 It does not cover loss, damage or expenses arising from any hostile use of
atomic or nuclear weapons of war.
 The coverage only covers waterborne risks, which means the insurance shall
attach from the time the insured goods are loaded on the seagoing vessel or
lighter at the port of shipment named in the policy until discharged overside
from the seagoing vessel or lighter at the port of destination named in the
policy. If the insured goods are not discharged therefrom, the longest
duration at the port of discharge shall be limited to fifteen days counting
from midnight of the day of the vessel’s arrival at such port.

27. 27
Special Additional Coverage
(特殊附加险)
 Strikes Risk (罢工险)
 This insurance covers loss of or damage to the goods insured directly
caused by acts of strikes, locked-out workmen or persons taking part
in labor disturbances, riots or civil commotions or by malicious acts
of any person or persons whosoever; sacrifice in and contribution to
general average and salvage charges arising from the acts as stated
above.
 This insurance does not cover loss of or damage to the insured goods
arising from the absence or shortage of or incapability to employ
labor during the time of strikes including damage to refrigerated
goods attributed to the stoppage of refrigerating machinery caused
by lack of power or fuel arising from the above.
 As to the commencement and termination of this insurance,
Warehouse to Warehouse Clause is adopted.

28. 28
Special Additional Coverage
(特殊附加险)
 There are also:
 Failure to Deliver Risk (交货不到险): to pay a total loss subject to
full rights of subrogation in case the insured goods, once loaded on
board the seagoing vessel, fail to be delivered at destination within
six months of scheduled arrival date from howsoever cause
 Import Duty Risk (进口关税险): cover import customs duty on the
damaged portion of the insured goods when the insured goods
arriving at the port of destination damaged by a peril insured
against but full import duty had been levied and paid thereon as if
the goods had arrived sound
 On Deck Risk (舱面货物险): cover the risks of jettison and/or
washing overboard in case the insured goods are shipped on deck
 Rejection Risk (拒收险): to indemnify the insured on the basis of
the insured value of the goods for rejection and/or condemnation at
the port of entry by the government of the country of import or its
relevant authorities

29. 29
Special Additional Coverage
(特殊附加险)
 There are also:
 Aflatoxin Risk (黄曲霉素险): cover loss of the insured goods when the
cargo is rejected or confiscated or the original purpose thereof for which it
is intended is compulsorily altered by reason of the existence of aflatoxin
to an extent exceeding the limit sanctioned by the importing country
 Fire Risk Extension Clause For Storage of Cargo at Destination Hong
Kong, inc1uding Kowloon，or Macao (F.R.E.C., 出口货物到香港
(包括九龙在内)或澳门存仓火险): in the event the insured cargo, after
being discharged at the final destination at Hong Kong, including Kowloon
or Macao from the carrying conveyance, be directed to be stored in
warehouse(s) specifically designated by the bank to whom the interests in
the cargo are assigned as stated herein, this insurance shall extend to cover
fire risk at such warehouse(s) from the time the marine coverage ceases to
attach until the termination of the said bank’s interests in the cargo or the
expiration of thirty days counting from the day the marine coverage hereto
ceases, whichever shall first occur

30. 30
伦敦保险协会海运货物保险条款
Institute Cargo Clause, ICC 2009
Institute cargo clauses A, 协会货物(A)险条款
Institute cargo clauses B, 协会货物(B)险条款
Institute cargo clauses C, 协会货物(C)险条款
Institute war clauses (cargo), 协会战争险条款(货物)
Institute strikes clauses (cargo), 协会罢工险条款(货物)
Malicious damage clauses, 恶意损害险条款
 ICC(A), ICC(B), and ICC(C) can be insured separately; war
risk and strikes risk can also be insured separately under
special arrangements with the underwriter. Malicious damage
clause is an additional coverage which cannot be insured
separately.
协会货物保险条款的种类

31. 31
ICC (A)
 This insurance covers all risks of loss or damage to the
subject-matter insured except as excluded by the provisions
of “Exclusions”.
 The words “all risks” should be understood in the context
of the “A” clause to cover “fortuitous loss”, but not “loss
that occurs inevitably.”
 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
except those excluded in Clauses 4, 5, 6 and 7

32. 32
ICC (A) -- Exceptions
Article 4. In no case shall this insurance cover
4.1 loss damage or expense attributable to wilful misconduct of the
Assured
4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary
wear and tear (磨损) of the subject-matter insured
4.3 loss damage or expense caused by insufficiency or unsuitability of
packing or preparation of the subject-matter insured to withstand
the ordinary incidents of the insured transit where such packing or
preparation is carried out by the Assured or their employees or
prior to the attachment of this insurance
4.4 loss damage or expense caused by inherent vice or nature of the
subject-matter insured

33. 33
ICC (A) -- Exceptions
Article 4. In no case shall this insurance cover
4.5 loss damage or expense caused by delay, even though the delay be
caused by a risk insured against
4.6 loss damage or expense caused by insolvency or financial default of the
owners managers charterers or operators of the vessel where, at the time
of loading of the subject-matter insured on board the vessel, the Assured
are aware, or in the ordinary course of business should be aware, that
such insolvency or financial default could prevent the normal
prosecution of the voyage. This exclusion shall not apply where the
contract of insurance has been assigned to the party claiming hereunder
who has bought or agreed to buy the subject-matter insured in good faith
under a binding contract
4.7 loss damage or expense directly or indirectly caused by or arising from
the use of any weapon or device employing atomic or nuclear fission
(分裂) and/or fusion (熔化) or other like reaction or radioactive force or
matter.

34. 34
Article 5.
5.1 In no case shall this insurance cover loss damage or expense
arising from
5.1.1 unseaworthiness of vessel or craft or unfitness of vessel or craft for
the safe carriage of the subject-matter insured, where the Assured
are privy to such unseaworthiness or unfitness, at the time the
subject-matter insured is loaded therein
5.1.2 unfitness of container or conveyance for the safe carriage of the
subject-matter insured, where loading therein or thereon is carried
out prior to attachment of this insurance or by the Assured or their
employees and they are privy to such unfitness at the time of
loading.
ICC (A) -- Exceptions

35. 35
ICC (A) -- Exceptions
Article 6. In no case shall this insurance cover loss
damage or expense caused by
6.1 war civil war revolution rebellion insurrection (起
义), or civil strife arising therefrom, or any hostile
act by or against a belligerent (好战的) power
6.2 capture seizure arrest restraint or detainment
(piracy excepted), and the consequences thereof or
any attempt thereat
6.3 derelict (被抛弃的) mines torpedoes bombs or
other derelict weapons of war.

36. 36
ICC (A) -- Exceptions
Article 7. In no case shall this insurance cover loss
damage or expense
7.1 caused by strikers, locked-out workmen, or persons taking
part in labor disturbances, riots or civil commotions
7.2 resulting from strikes, lock-outs, labor disturbances, riots or
civil commotions
7.3 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
7.4 caused by any person acting from a political, ideological or
religious motive.

37. 37
ICC(B)
 This insurance covers:
1. loss of or damage to the subject-matter insured reasonably attributable to
① fire or explosion
② vessel or craft being stranded, grounded, sunk or capsized
③ overturning or derailment (出轨) of land conveyance
④ collision or contact of vessel craft or conveyance with any external object other
than water
⑤ discharge of cargo at a port of distress
⑥ earthquake, volcanic eruption or lightning,
2. loss of or damage to the subject-matter insured caused by
① general average sacrifice
② jettison or washing overboard
③ entry of sea, lake or river water into vessel craft hold conveyance container or
place of storage
3. total loss of any package lost overboard or dropped whilst loading on to, or
unloading from, vessel or craft.

38. 38
ICC (B) -- Exceptions
 Articles 4, 5, 6 and 7
 Article 4. In no case shall this insurance cover
4.7 deliberate damage to or deliberate destruction of
the subject-matter insured or any part thereof by
the wrongful act of any person or persons
4.8 loss damage or expense directly or indirectly caused
by or arising from the use of any weapon or device
employing atomic or nuclear fission and/or fusion or
other like reaction or radioactive force or matter.

39. 39
ICC (C)
 This insurance covers:
1. loss of or damage to the subject-matter insured reasonably
attributable to
① fire or explosion
② vessel or craft being stranded grounded sunk or capsized
③ overturning or derailment of land conveyance
④ collision or contact of vessel craft or conveyance with any external
object other than water
⑤ discharge of cargo at a port of distress,
2. loss of or damage to the subject-matter insured caused by
① general average sacrifice
② jettison.
 Exceptions: same with ICC (B)

40. 40
Duration -- Transit Clause (Clause 8)
 Under ICC (A) (B) (C), the insurance attaches
from the time the subject-matter insured is first
moved in the warehouse or at the place of storage
(at the place named in the contract of insurance)
for the purpose of the immediate loading into or
onto the carrying vehicle or other conveyance for
the commencement of transit, continues during
the ordinary course of transit, and terminates
either of the following four situations.

41. 41
Duration -- Transit Clause (Clause 8)
The insurance terminates:
1. 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,
2. 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 contract of insurance, which
the Assured or their employees elect to use either for storage other than
in the ordinary course of transit or for allocation or distribution, or
3. 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
4. on the expiry of 60 days after completion of discharge overside of the
subject-matter insured from the oversea vessel at the final port of
discharge,
whichever shall first occur.

42. 42
Duration -- Termination of Contract of
Carriage (Clause 9)
 If owing to circumstances beyond the control of the Assured either the
contract of carriage is terminated at a port or place other than the
destination named therein or the transit is otherwise terminated before
unloading of the subject-matter insured as provided for in Clause 8,
then this insurance shall also terminate unless prompt notice is given
to the Insurers and continuation of cover is requested when this
insurance shall remain in force, subject to an additional premium if
required by the Insurers, either
1. until the subject-matter insured is sold and delivered at such port or
place, or, unless otherwise specially agreed, until the expiry of 60
days after arrival of the subject-matter insured at such port or place,
whichever shall first occur, or
2. if the subject-matter insured is forwarded within the said period of 60
days (or any agreed extension thereof) to the destination named in the
contract of insurance or to any other destination, until terminated in
accordance with the provisions of Clause 8.

43. 43
Duration – Change of Voyage (Clause 10)
1. Where, after attachment of this insurance, the
destination is changed by the Assured, this must be
notified promptly to Insurers for rates and terms to be
agreed. Should a loss occur prior to such agreement
being obtained cover may be provided but only if cover
would have been available at a reasonable commercial
market rate on reasonable market terms.
2. Where the subject-matter insured commences the transit
contemplated by this insurance (in accordance with
Clause 8.1), but, without the knowledge of the Assured
or their employees the ship sails for another destination,
this insurance will nevertheless be deemed to have
attached at commencement of such transit.

44. 44
Institute War Clauses (Cargo)
 This insurance covers loss of or damage to the
subject-matter insured 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 or detainment,
arising from risks covered under above, and the
consequences thereof or any attempt thereat
3. derelict mines torpedoes bombs or other derelict
weapons of war.

45. 45
ICC War -- Exceptions
Article 3. In no case shall this insurance cover
3.1 loss damage or expense attributable to wilful misconduct of the
Assured
3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary
wear and tear of the subject-matter insured
3.3 loss damage or expense caused by insufficiency or unsuitability
of packing or preparation of the subject-matter insured to
withstand the ordinary incidents of the insured transit where such
packing or preparation is carried out by the Assured or their
employees or prior to the attachment of this insurance
3.4 loss damage or expense caused by inherent vice or nature of the
subject-matter insured
3.5 loss damage or expense caused by delay, even though the delay
be caused by a risk insured against

46. 46
ICC War -- Exceptions
3.6 loss damage or expense caused by insolvency or financial default
of the owners managers charterers or operators of the vessel
where, at the time of loading of the subject-matter insured on
board the vessel, the Assured are aware, or in the ordinary course
of business should be aware, that such insolvency or financial
default could prevent the normal prosecution of the voyage This
exclusion shall not apply where the contract of insurance has
been assigned to the party claiming hereunder who has bought or
agreed to buy the subject-matter insured in good faith under a
binding contract
3.7 any claim based upon loss of or frustration of the voyage or
adventure
3.8 loss damage or expense directly or indirectly caused by or arising
from any hostile use of any weapon or device employing atomic
or nuclear fission and/or fusion or other like reaction or
radioactive force or matter.

47. 47
ICC War -- Exceptions
Article 4.
4.1 In no case shall this insurance cover loss damage or expense
arising from
4.1.1 unseaworthiness of vessel or craft or unfitness of vessel or
craft for the safe carriage of the subject-matter insured,
where the Assured are privy to such unseaworthiness or
unfitness, at the time the subject-matter insured is loaded
therein
4.1.2 unfitness of container or conveyance for the safe carriage
of the subject-matter insured, where loading therein or
thereon is carried out prior to attachment of this insurance or
by the Assured or their employees and they are privy to such
unfitness at the time of loading.

48. 48
Duration – Transit Clause
 This insurance attaches only as the subject-matter insured and as to
any part as that part is loaded on an oversea vessel and terminates,
either as the subject-matter insured and as to any part as that part is
discharged from an oversea vessel at the final port or place of
discharge, or on expiry of 15 days counting from midnight of the
day of arrival of the vessel at the final port or place of discharge,
whichever shall first occur.
 However, subject to prompt notice to the Insurers and to an
additional premium, such insurance reattaches when, without
having discharged the subject-matter insured at the final port or
place of discharge, the vessel sails therefrom, and terminates, either
as the subject-matter insured and as to any part as that part is
thereafter discharged from the vessel at the final (or substituted)
port or place of discharge, or on expiry of 15 days counting from
midnight of the day of re-arrival of the vessel at the final port or
place of discharge or arrival of the vessel at a substituted port or
place of discharge, whichever shall first occur.

49. 49
ICC Strikes Clauses (Cargo)
 This insurance covers loss of or damage to the subject-
matter insured caused by
1. strikers, locked-out workmen, or persons taking part in
labour disturbances, riots or civil commotions
2. any act of terrorism being an act of any person acting on
behalf of, or in connection with, any organisation which
carries out activities directed towards the overthrowing or
influencing, by force or violence, of any government whether
or not legally constituted
3. any person acting from a political, ideological or religious
motive.
 Duration of Insurance: Same as ICC (A), (B) and (C)