(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)

(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
5/9/83
INSTITUTE COMMODITY TRADES CLAUSES (A)
Agreed with The Federation of Commodity Associations
For the insurance of shipments of
Cocoa, Coffee, Cotton, Fats and Oils not in bulk,
Hides, Skins and Leather, Metals, Oil Seeds, Sugar (Raw or Refined), and Tea
RISKS COVERED
1
2
3
This insurance covers all risks of loss of or damage to the subject-matter insured except as provided in Clauses 4,
5, 6 and 7 below.
This insurance covers general average and salvage charges, adjusted or determined according to the contract of
affreightment 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 or elsewhere in this insurance.
This insurance is extended to indemnify the Assured against such proportion of liability under the contract of
affreightment “Both to Blame Collision” Clause as is in respect of a loss recoverable hereunder. In the event of
any claim by shipowners under the 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.
Risks
Clause
General
Average
Clause
“Both to Blame
Collision” Clause
EXCLUSIONS
4
In no case shall this insurance cover
4.1
4.2
4.3
4.4
4.5
4.6
4.7
5
5.1
5.1.1
5.1.2
5.2
5.3
loss damage or expense attributable to wilful misconduct of the Assured
ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter
insured
loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subjectmatter insured (for the purpose of this Clause 4.3 “packing” shall be deemed to include stowage in a
container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by
the Assured or their servants)
loss damage or expense caused by inherent vice or nature of the subject-matter insured
loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured
against (except expenses payable under Clause 2 above)
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 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
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
In no case shall this insurance cover loss damage or expense arising from
unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the subjectmatter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the
subject-matter insured is loaded therein
unfitness of container liftvan or land conveyance for the safe carriage of the subject-matter insured,
where loading therein is carried out prior to attachment of this insurance or by the Assured or their
servants.
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, exclusion 5.1.1 above shall not apply.
The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of
the ship to carry the subject-matter insured to destination.
6
In no case shall this insurance cover loss damage or expense caused by
6.1
war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or
against a belligerent power
6.2
capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any
attempt thereat
6.3
derelict mines torpedoes bombs or other derelict weapons of war.
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 labour disturbances, riots or civil
General
Exclusions
Clause
Unseaworthiness
And Unfitness
Exclusion Clause
War Exclusion
Clause
Strikes Exclusion
Clause
7.2
7.3
commotions
resulting from strikes, lock-outs, labour disturbances, riots or civil commotions
caused by any terrorist or any person acting from a political motive.
DURATION
8
9
10
8.1
This insurance attaches from the time the goods leave the warehouse or place of storage at the place
named herein for the commencement of the transit, continues during the ordinary course of transit and
terminates either
8.1.1
on delivery to the Consignees’ or other final warehouse or place of storage at the destination named
herein,
8.1.2
on delivery to any other warehouse or place of storage, whether prior to or at the destination named
herein, which the Assured elect to use either
8.1.2.1
for storage other than in the ordinary course of transit or
8.1.2.2
for allocation or distribution,
or
8.1.3
on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the
oversea vessel at the final port of discharge,
whichever shall first occur.
8.2
If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination
of this insurance, the goods are to be forwarded to a destination other than that to which they are insured
hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend
beyond the commencement of transit to such other destination.
8.3
This insurance shall remain in force (subject to termination as provided for above and to the provisions of
Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge,
reshipment or transhipment and during any variation of the adventure arising from the exercise of a
liberty granted to shipowners or charterers under the contract of affreightment.
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 delivery of the goods as
provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the
Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an
additional premium if required by the Underwriters, either
9.1
until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the
expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first
occur,
or
9.2
if the goods are forwarded within the said period of 60 days (or any agreed extension thereof) to the
destination named herein or to any other destination, until terminated in accordance with the provisions
of Clause 8 above.
Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium
and on conditions to be arranged subject to prompt notice being given to the Underwriters.
Transit Clause
Termination of
Contract of
Carriage Clause
Change of
Voyage Clause
CLAIMS
11
11.1
In order to recover under this insurance the Assured must have an insurable interest in the subject-matter
insured at the time of the loss.
11.2
Subject to 11.1 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.
Insurable
Interest
Clause
12
Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or
place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse
the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the
subject-matter to the destination to which it is insured hereunder
This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions
contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence
insolvency or financial default of the Assured or their servants
Forwarding
Charges Clause
13
No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is
reasonably 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 is insured would
exceed its value on arrival.
Constructive
Total Loss Clause
14
14.1
14.2
If any Increased value insurance is effected by the Assured on the cargo insured herein the agreed value
of the cargo shall be deemed to be increased to the total amount insured under this insurance and all
Increased Value insurances covering the loss, and liability under this insurance shall be in such
proportion as the sum insured 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.
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.
Increased
Value
Clause
BENEFIT OF INSURANCE
15
This insurance shall not inure to the benefit of the carrier or other bailee.
Not to
Inure Clause
MINIMISING LOSSES
16
It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder
Duty of
Assured Clause
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 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.
17
Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subjectmatter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights
of either party.
Waiver
Clause
AVOIDANCE OF DELAY
18
It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within
their control.
Reasonable
Despatch
Clause
LAW AND PRACTICE
19
This insurance is subject to English law and practice.
English Law
and Practice
Clause
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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.
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