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Logistics Cargo Insurance Clause

General

Article 1 This insurance contract consists of insurance clauses, application form, insurance policy schedule or insurance certificate, endorsement, special agreement and logistics goods declaration materials. Any agreement involving this insurance contract shall be in writing.

Article 2 The logistics referred to in this insurance contract refers to the process in which the insured organically combines the basic functions of transportation, storage, loading and unloading, handling, packaging, circulation processing, distribution and information processing according to the actual needs, so as to make the goods flow from the place of supply to the place of receipt.

The logistics goods mentioned in this insurance contract refer to the goods that the insured conducts logistics.

Subject-matter insured

Article 3 Except for the goods listed in Article 5 of this clause, all goods flowing in the form of logistics can be the subject matter of this insurance contract.

Article 4 The following logistics goods can be used as the subject matter of special insurance after they have been declared in advance and approved by the insurer and their insured value has been clarified:

（1） Gold, silver, jewelry, diamonds, jade, precious metals;

（2） Antiques, ancient coins, ancient books and paintings;

（3） Works of art, stamps.

Article 5 The following logistics goods are excluded from the scope of insurance subject matter:

（1） Firearms, ammunition and explosives;

（2） Cash, securities, bills, documents, archives, account books and drawings.

Insurance liability

Article 6 During the insurance period, if the subject matter insured suffers losses due to the following reasons in the process of logistics transportation, loading and unloading, and handling, the insurer shall be liable for compensation in accordance with the provisions of this insurance contract:

（1） Fire and explosion;

（2） Natural disasters;

The natural disasters mentioned in this insurance contract refer to lightning strike, storm, rainstorm, flood, snowstorm, hail, sand storm, ice slush, mud rock flow, cliff collapse, sudden landslide, volcanic eruption, sudden ground collapse, earthquake, tsunami and other natural phenomena with strong destructive force that are irresistible to human.

（3） Collision, derailment, overturning, falling, grounding, hitting rocks, sinking, or collapse of tunnels, bridges, and docks;

（4） Packaging crack or container damage caused by collision and extrusion;

（5） Conform to the safety transportation regulations and suffer from rain;

（6） Loading and unloading personnel carry out loading and unloading in violation of operating procedures;

（7） Sacrifice, contribution and salvage in general average.

Article 7 During the insurance period, if the subject matter insured suffers losses due to natural disasters or accidents in the process of logistics storage, circulation processing and packaging, the insurer shall be liable for compensation in accordance with the provisions of this contract.

The accident referred to in this insurance contract refers to an unexpected external event that is beyond the control of the insured and causes material loss.

Article 8 The insurer shall also be liable for compensation for the following losses and expenses in accordance with this Contract:

（1） When an insured accident occurs, necessary and reasonable measures shall be taken to rescue the subject matter insured or prevent the spread of disasters, resulting in the loss of the subject matter insured;

（2） Necessary and reasonable rescue expenses paid by the insured to prevent or reduce the loss of the subject matter insured after the occurrence of the insured accident;

（3） With the written consent of the insurer, the necessary and reasonable expenses paid by the insured to find out and determine the nature and cause of the insured accident and the extent of the loss of the subject matter insured.

Exemption from liability

Article 9 The insurer shall not be liable for the losses, expenses and liabilities caused by the following reasons:

（1） The intentional act or gross negligence of the insured;

（2） War, invasion of foreign enemies, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, strike, riot, insurrection and terrorist activities;

（3） Nuclear radiation, nuclear explosion, nuclear pollution and other radioactive pollution;

（4） Law enforcement or judicial action;

（5） Interruption of public power supply, water supply, gas supply and other public energy;

（6） Air, land, water pollution and other kinds of pollution.

Article 10 The insurer shall not be liable for the losses, expenses and liabilities caused by the following reasons:

（1） The means of transportation, loading and unloading, and handling owned by the insured are not suitable for transportation, loading and unloading, or the warehouse owned by the insured does not have the conditions for storing or circulating the insurance subject matter;

（2） The subject matter insured has design errors, poor workmanship, essential defects or characteristics, natural leakage, natural loss, natural wear and tear, spontaneous combustion or self changes such as decay, deterioration, injury, disease and death due to its own reasons;

（3） Improper packaging of the subject-matter insured, or the packaging of the subject-matter insured is intact but the contents are damaged or inconsistent, or the marking of the subject-matter insured is incorrect, omitted or unclear;

（4） The quantity, specification or content of the subject matter insured determined by the consignor or consignee is inaccurate;

（5） The subject matter of insurance is stolen or disappeared for unknown reasons;

（6） Earthquake and tsunami occurred during the logistics storage, packaging, circulation and processing of the insurance subject matter.

Article 11 The insurer shall not be liable for the following losses, expenses and liabilities:

（1） Loss and expense of the subject-matter insured that has been transported from the storage warehouse or storage premises at the place of departure before the commencement of the insurance period;

（2） Loss and expense of the subject-matter insured stored on deck during waterway transportation, except for container cargo;

（3） Loss or expense of the insurance subject matter stored in the open air;

（4） Loss found during inventory, or shortage of other unknown reasons;

（5） Various indirect losses of the insured;

（6） Loss of property or expenses incurred outside the People's Republic of China;

（7） The deductible specified in this insurance contract.

Article 12 The insurer shall not be liable for any other loss, expense or liability not covered by the insurance.

Insured value and insured amount

Article 13 The insured value of this insurance contract is:

（1） The insured value of the subject-matter insured shall be the sum of the purchase and sale contract price of the subject-matter insured plus the mark up calculated according to the mark up ratio agreed by both parties to the insurance contract.

（2） The insured value of the subject matter of special insurance is the value declared by the insured and confirmed by the insurer.

Article 14 The insured amount of this insurance contract is equal to the insured value.

insurance premium

Article 15 The insurer shall calculate and collect the prepaid premium on the basis of the insured amount expected to occur during the insurance period.

After the expiration of the insurance contract, the insurer shall take the actual insurance amount declared by the insured as the basis for calculating the actual premium. If the actual premium is higher than the prepaid premium, the insured shall make up the difference; If the actual premium is lower than the prepaid premium, the insurer shall refund the difference, but the actual premium shall not be lower than the minimum premium listed in the schedule of the insurance policy.

Period of insurance and commencement and termination of liability

Article 16 Unless otherwise agreed, the insurance period shall be one year, subject to the starting and ending time specified in the insurance policy.

The insurance liability of different batches of subject-matter insured starts from the time when each batch of subject-matter insured leaves the storage warehouse or storage place at the place of departure specified in the sales contract after the commencement of the insurance period, and ends when the storage warehouse or storage place at the destination specified in the sales contract.

At the end of the insurance period, if the logistics process of the subject matter of insurance has not ended, the insurance liability of the subject matter of insurance will automatically be extended until the subject matter of insurance is transported to the storage warehouse or storage place at the destination specified in the corresponding sales contract. If the relevant consignee fails to pick up the goods in time, the extension of the insurance liability of the subject matter insured shall be limited to 15 days after the subject matter insured is discharged from the means of transport.

Obligations of the applicant and the insured

Article 17 The applicant shall perform the obligation of truthful disclosure, truthfully answer the insurer's inquiries about the relevant information of the insured, and truthfully fill in the application form.

If the applicant fails to perform the obligation of truthful disclosure specified in the preceding paragraph intentionally or due to gross negligence, which is enough to affect the insurer's decision on whether to accept the insurance or increase the premium rate, the insurer has the right to terminate the contract. The insurance contract is terminated when the termination notice of the insurer reaches the applicant or the insured.

If the applicant intentionally fails to perform the obligation of truthful disclosure, the insurer shall not be liable for compensation for the insured event occurring before the termination of this insurance contract and shall not return the insurance premium.

If the applicant fails to perform the obligation of truthful disclosure due to gross negligence, which has a serious impact on the occurrence of the insured event, the insurer shall not be liable for compensation for the insured event occurring before the termination of this insurance contract, but shall refund the insurance premium.

Article 18 The applicant shall pay the premium in advance as agreed in this insurance contract. If the applicant fails to prepay the premium as agreed, the insurer shall not be liable for any insurance accident occurring before the premium is prepaid.

Article 19 The insured shall abide by the provisions of the State on fire control, safety, production and operation, and maintain the safety of the subject matter insured.

The insurer may inspect the safety condition of the subject matter insured, and put forward written suggestions to the applicant and the insured to eliminate unsafe factors and hidden dangers. The insured shall earnestly implement them.

The insurer shall not be liable for any insurance accident caused by the insured's failure to comply with the above agreement; If the loss is expanded due to the insured's failure to comply with the above agreement, the insurer shall not be liable for the expanded loss.

Article 20 During the insurance period, if the items contained in the insurance policy or the relevant logistics contract change, the insured shall promptly notify the insurer in writing. If the risk of the subject matter insured has increased significantly, the insurer has the right to require an increase in the premium or terminate the contract.

During the insurance period, the insured shall fill in the Logistics Cargo Insurance Declaration Form for the logistics of the subject matter insured in accordance with the agreement with the insurer and report to the insurer in a timely manner. The insurer shall calculate the actual insurance premium according to the logistics cargo insurance declaration form.

If the insured fails to perform the obligation of notification or declaration, the insurer shall not be liable for the insurance accident caused by the significant increase of the risk of the subject matter insured.

Article 21 After the occurrence of an accident within the scope of this insurance, the insured shall:

（1） Notify the insurer immediately, and explain in writing the cause, process and degree of loss of the accident; If the insurer is unable to reasonably investigate the cause, course and extent of the loss due to failure to timely notify, the insurer shall not be liable for the loss of the part that cannot be investigated;

（2） Try to take necessary and reasonable measures to prevent or reduce the loss, otherwise, the insurer will not be liable for the expanded loss;

（3） Protect the accident scene, and allow and assist the insurer to conduct accident investigation; The insurer shall not be liable for the loss of the part that cannot be verified due to the refusal or obstruction of the insurer to carry out accident investigation.

Article 22 When applying for compensation from the insurer, the insured shall submit the original of the insurance policy, bill of lading or other shipping documents, list of loss, quantity certificate of loss issued by the transportation or storage agency, identification certificate of loss degree, and other certificates and materials that the insured can provide to confirm the nature, cause, loss degree, etc. of the insured accident.

If the insured fails to provide the documents in time, which causes the insurer to be unable to verify the authenticity of the documents and their records, the insurer shall not be liable for the part that cannot be verified.

Article 23 If any loss within the scope of the insurance liability is to be compensated by other responsible parties, the insurer shall have the right to claim compensation by subrogation within the compensation amount from the date of compensation to the insured. If the insured waives the right to claim compensation from the relevant responsible party before the insurer makes compensation, the insurer shall not be liable for compensation. When the insurer exercises the right of subrogation against the relevant responsible party, the insured shall actively assist and provide necessary information and relevant information.

Article 24 The insured shall truthfully explain to the insurer the conditions of other insurance contracts related to the coverage of this insurance contract. Otherwise, the insurer has the right to recover the loss that should be compensated by other insurances from the insured.

Compensation treatment

Article 25 If the subject matter insured suffers a loss within the scope of insurance liability, the insurer shall calculate the amount of compensation according to the degree of loss of the subject matter insured, but the maximum amount shall be limited to the insured amount.

Article 26 As agreed in Item (2) of Article 8 of these Terms, the expenses to be compensated by the insurer shall be separately calculated by the insurer in addition to the amount of compensation for the loss of the subject matter insured, and the maximum amount shall be limited to the insured amount of the damaged subject matter insured.

If the compensation amount under this insurance contract decreases due to the existence of double insurance, the insurer's compensation amount for the above expenses will also decrease by the same proportion.

Article 27 As agreed in Item (3) of Article 8 of these Terms, the expenses to be compensated by the insurer shall be calculated separately by the insurer according to the actual expenses beyond the amount of compensation for the loss of the subject matter insured.

If the compensation amount under this insurance contract decreases due to the existence of double insurance, the insurer's compensation amount for the above expenses will also decrease by the same proportion.

Article 28 The insurer shall, after receiving the claim for indemnity from the insured, promptly make a determination as to whether the claim belongs to the insurance liability, and notify the insured of the determination result. If the circumstances are complex, and the insurer fails to verify the insurance liability within 30 days after receiving the claim from the insured and providing the information required for settlement of the claim, the insurer and the insured shall negotiate a reasonable period according to the actual situation, and the insurer shall make the verification result and notify the insured within the agreed period. If it is an insurance liability, it shall perform the obligation of compensation within ten days after reaching an agreement on the amount of compensation with the insured.

Article 29 If the subject matter of the insurance is double insured, the insurer shall bear the liability for compensation in accordance with the proportion between the relevant insurance amount of this insurance contract and the total relevant insurance amount of all relevant insurance contracts.

The Insurer shall not be responsible for the advance payment of the compensation amount to be borne by other insurers.

Dispute resolution

Article 30 Any dispute arising from this insurance contract shall be settled by the parties through consultation. If the negotiation fails, the dispute shall be submitted to the arbitration institution specified in the insurance policy for arbitration; If the insurance policy does not specify an arbitration institution or no arbitration agreement has been reached after the dispute occurs, a lawsuit may be filed with the People's Court of the People's Republic of China.

Article 31 This insurance contract is governed by the laws of the People's Republic of China (excluding the laws of Hong Kong, Macao and Taiwan).

Other matters

Article 32 After the establishment of this insurance contract and before the commencement of the insurance liability period of the first batch of insurance subject matter, the applicant may terminate this insurance contract at any time by giving a written notice, and the insurer will refund the remaining premium after charging 5% of the prepaid premium as the cancellation fee. The applicant may notify the insured in writing to terminate this insurance contract at any time before the insurance liability period of the subject matter insured in the previous batch terminates and the insurance liability period of the subject matter insured in the next batch starts. The insurer shall charge the insurance premium based on the actual insurance amount incurred from the beginning of the insurance period to the termination of the contract. The insurer may also send a written notice to the applicant 15 days in advance to terminate the insurance contract, and the insurance premium shall be calculated based on the actual insurance amount from the beginning of the insurance period to the termination of the contract.

This insurance contract shall not be terminated during the insurance liability period of each batch of insurance subject matter.