Marine cargo insurance clauses

Limitation of Liability

This insurance is divided into three types: Ping An insurance, water damage insurance and all risks. When the insured goods suffer losses, this insurance will be liable for compensation in accordance with the other insurance clauses stipulated in the insurance policy.

First: Ping An Insurance

This insurance is responsible for compensation for:

1. The insured goods suffer total loss or constructive total loss of the entire batch of goods due to natural disasters such as severe weather, lightning, tsunamis, earthquakes, and floods during transportation. When the insured requires compensation for constructive total loss, the damaged goods and their rights must be entrusted to the insurance company. If the insured goods are transported to or from sea-going ships by barge, the goods loaded on each barge may be regarded as a whole batch. Constructive total loss means that the actual total loss of the insured goods is unavoidable, or the cost of restoring, repairing the damaged goods, and transporting the goods to the original destination exceeds the value of the goods at that destination.

2. All or part of the cargo is lost due to transportation vehicles being stranded, running aground, sinking, colliding with each other, colliding with ice drifts or other objects, and fire or explosion accidents.

3. When the transportation vehicle has been stranded, struck on rocks, sunk, or burned, the goods have suffered partial losses caused by natural disasters such as severe weather, lightning, and tsunamis at sea before and after.

4. All or part of the loss caused by one or several entire pieces of cargo falling into the sea during loading, unloading or transshipment.

5. Reasonable expenses paid by the insured to take measures to rescue, prevent or reduce cargo damage to goods that are in danger within the insured liability, but shall not exceed the insured amount of the rescued goods.

6. After the transport encounters a shipwreck, the losses caused by unloading at the port of refuge and the special expenses incurred by unloading, warehousing and transporting the goods at the halfway port and port of refuge.

7. General average sacrifice, contribution and salvage expenses.

8. The contract of carriage contains a "Liability for Ship Collision" clause. According to this clause, the cargo party should reimburse the ship owner for its losses.

Second: water damage insurance

In addition to the various responsibilities of Ping An Insurance listed above, this insurance also covers part of the losses caused by natural disasters such as severe weather, lightning, tsunamis, earthquakes, and floods to the insured property.

Third: all risks

In addition to the various responsibilities of Ping An Insurance and water damage insurance listed above, this insurance also covers all or part of the losses caused by external causes during transportation of the insured goods.

Exclusions

This insurance is not liable for the following losses:

1. Losses caused by the insured’s intentional acts or negligence.

2. Losses caused by the consignor's responsibility.

3. Losses caused by poor quality or short quantity of the insured goods before the insurance liability started.

4. Losses or expenses caused by natural wear and tear, essential defects, characteristics, market price decline, and transportation delays of the insured goods.

5. The scope of liability and exclusions stipulated in the company's ocean transportation cargo war insurance clauses and cargo transportation strike insurance clauses.

Responsibility ends

First: This insurance assumes "warehouse-to-warehouse" liability and becomes effective when the insured goods leave the warehouse or storage location at the place of departure specified in the insurance policy and begin transportation, including sea, land, inland water and barge during normal transportation. Transportation is included until the goods reach the final warehouse or storage location of the destination consignee specified in the insurance policy or other storage location used by the insured for distribution, distribution or abnormal transportation. If the above-mentioned warehouse or storage location is not reached, it will be until 60 days after all the insured goods are unloaded from the sea-going ship at the final port of discharge. If the insured goods need to be transshipped to a destination other than that specified in the insurance policy within the above 60 days, it will end when the transshipment of the goods begins.

Second: Due to transportation delays, detours, forced unloading, reloading, transshipment, or any navigational changes or termination of the transportation contract made by the carrier using the authority conferred by the transportation contract beyond the control of the insured, the insured's goods are transported. When arriving at a destination other than that specified in the insurance policy, this insurance will continue to be valid provided that the insured promptly notifies the insurer of the learned situation and pays additional insurance premiums if necessary. Insurance liability is terminated according to the following provisions:

1. If the insured goods are sold at a destination other than that specified in the insurance policy, the insurance liability will be until the time of delivery, but in any case, it will be sixty days after all the insured goods are unloaded from the seagoing ship at the unloading port.

2. If the insured goods continue to be transported to the original destination or other destinations specified in the insurance policy within the above sixty-day period, the insurance liability will still be terminated in accordance with the provisions of the above "first" paragraph.

Insured's Obligations

The insured should handle relevant matters in accordance with the obligations stipulated below. If the interests of the insurer are affected due to failure to perform the stipulated obligations, the company has the right to refuse compensation for the relevant losses.

1. When the insured goods arrive at the destination port (place) specified in the insurance policy, the insured shall take delivery of the goods promptly. If any loss is found to the insured goods, the insured shall immediately report it to the inspection and compensation department specified in the insurance policy. The agent applies for inspection. If the insured goods are found to be missing or have obvious signs of damage, they should immediately request a certificate of damage or loss from the carrier, trustee or relevant authorities (customs, port authorities, etc.). If the cargo damage or difference is caused by the responsibility of the carrier, consignee or other relevant parties, the claim should be submitted to them in writing, and if necessary, a certification extending the statute of limitations must be obtained.

2. For goods that are in danger within the insured liability, both the insured and the company can quickly take reasonable rescue measures to prevent or reduce the loss of the goods. The insured's taking this measure shall not be regarded as an expression of abandonment of the entrustment, and the Company's adoption of this measure shall not be regarded as an expression of acceptance of the entrustment.

3. If the voyage is changed or if there are any omissions or errors in the cargo, ship name or voyage stated in the insurance policy, the insured should notify the insurer immediately after learning and pay an additional premium if necessary before the insurance continues. efficient.

4. When making a claim to the insurer, the following documents must be provided:

Original insurance policy, bill of lading, invoice, packing list, scale list, proof of cargo damage and difference, inspection report and claim list. If third-party liability is involved, relevant correspondence and other necessary documents or documents for recovery from the responsible party must also be provided.

5. After learning the actual liability related to the "vessel collision liability" clause in the contract of carriage, the insurer should be notified promptly.

Claim period

The statute of limitations for claims under this insurance shall not exceed two years from the time the insured goods are all unloaded from the ship at the final port of discharge.