Marine cargo insurance clauses

1、 Scope of responsibility

This insurance is divided into FPA, WPA and All Risks. In the event of loss of or damage to the insured goods, this insurance shall be liable for compensation in accordance with the provisions of the insurance policy.

（1） FPA (basic insurance for short)

This insurance covers:

1. Total loss or constructive total loss of the whole batch of insured goods due to adverse weather, lightning, tsunami, earthquake, flood and other natural disasters during transportation. When the insured requests compensation for the constructive total loss, the damaged goods and their rights shall be entrusted to the insurance company. If the insured goods are transported to or from the seagoing vessel by barge, the goods loaded in each barge can be regarded as a whole batch.

Presumptive total loss means that the actual total loss of the insured goods is unavoidable, or the cost of restoring and repairing the damaged goods and transporting the goods to the original destination exceeds the value of the goods at the destination.

2. All or part of the goods are lost due to grounding, hitting rocks, sinking, mutual collision, collision with drift ice or other objects, fire and explosion accidents of the means of transport.

3. In the event that the means of transport has been stranded, hit rocks, sunk or burned, the goods have suffered some losses caused by natural disasters such as severe weather, lightning and tsunami at sea before and after that.

4. Total or partial loss caused by one or several whole cargoes falling into the sea during loading, unloading or transshipment.

5. The reasonable expenses paid by the insured for taking measures to rescue, prevent or reduce the damage to the goods suffering from the danger within the insured liability, but not exceeding the insured amount of the goods salved.

6. The loss caused by the unloading of the means of transport at the port of refuge after the shipwreck, and the special expenses incurred by the unloading, warehousing and transportation of goods at the intermediate port and the port of refuge.

7. Sacrifice, contribution and salvage expenses in general average.

8. The contract of carriage contains a clause of "Collision Liability of Ships", according to which the cargo owner shall compensate the ship's loss.

（2） W.P.A

In addition to the above FPA responsibilities, this insurance is also responsible for the partial loss of the insured goods caused by natural disasters such as bad weather, thunderstorms, tsunamis, earthquakes and floods.

（3） All Risks

In addition to the above FPA and WPA liabilities, this insurance also covers all or part of the losses of the insured goods caused by the following 11 external causes (i.e. 11 additional risks) during the transportation.

Additional insurance:

1. TPND

2. Freshwater and rain risks

3. Short term insurance

4. Risk of collision and breakage

5. Risk of mixing and contamination

6. Risk of cross flavor

7. Risk of dampness and heat

8. Hook damage insurance

9. Risk of package breakage

10. Leakage risk

11. Rust damage insurance

（4） Special additional insurance

1. Deck insurance

2. Import and export tariff insurance

3. Perishable goods insurance

4. Insurance against non delivery

5. Rejection insurance

6. Aflatoxin risk

（5） Special additional insurance

1. War risk

2. Strike insurance

2、 Exclusions

This insurance is not liable for the following losses:

（1） Loss caused by the intentional act or negligence of the insured;

（2） Losses caused by the shipper's liability;

（3） Loss caused by poor quality or short quantity of the insured goods before the commencement of the insurance liability;

（4） Loss or expense caused by natural wear and tear, essential defects, characteristics, market price drop and transportation delay of the insured goods;

（5） The scope of liability and exclusions specified in the Company's marine cargo war risk clauses and cargo strike insurance clauses.

3、 Start and end of responsibility

（1） This insurance bears the responsibility of "warehouse to warehouse". It takes effect from the time when the insured goods leave the warehouse or storage place at the place of departure specified in the insurance policy and start to transport, including sea, land, inland river and barge transport during normal transport, until the goods reach the final warehouse or storage place of the consignee at the destination specified in the insurance policy or other storage places used by the insured for distribution, distribution or abnormal transport. If the insured goods have not arrived at the above-mentioned warehouses or storage premises, it shall be 60 days after the insured goods have been discharged from the seagoing vessel at the final port of discharge. If the insured goods need to be transshipped to a destination other than the destination specified in the insurance policy within the above 60 days, the transshipment shall be terminated when the goods begin.

（2） Any nautical alteration or termination due to delay in transportation, detour, forced unloading, reloading, transshipment or the carrier's use of the authority granted by the contract of carriage beyond the control of the insured

When the insured goods are transported to a destination other than the destination specified in the insurance policy due to the termination of the contract of carriage

The Insurer shall promptly notify the Insurer of the information it has learned, and shall pay additional premium when necessary. This insurance shall continue to be effective.

The insurance liability shall be terminated according to the following provisions:

1. If the insured goods are sold at a destination other than the destination specified in the insurance policy, the insurance liability shall expire at the time of delivery, but in any case, 60 days after all the insured goods are discharged from the seagoing vessel at the port of discharge;

2. If the insured goods continue to be transported to the original destination or other destinations specified in the insurance policy within the above-mentioned 60 day period, the insurance liability shall still terminate in accordance with the provisions of paragraph (1) above.

4、 Obligations of the insured

The insured shall handle relevant matters in accordance with the following obligations. If the interests of the insurer are affected due to the failure to perform the specified obligations, the Company has the right to refuse to compensate for relevant losses.

（1） When the insured goods arrive at the port (place) of destination specified in the insurance policy, the insured shall take delivery of the goods in a timely manner. In case of any loss of the insured goods, the insured shall immediately apply to the inspection and claim settlement agent specified in the insurance policy for inspection. If the insured goods are found to be short or have obvious damage marks, the insured shall immediately ask the carrier, the trustee or the relevant authorities (customs, port authorities, etc.) for the certificate of loss or damage. If the loss or damage of goods is caused by the responsibility of the carrier, the trustee or other relevant parties, a claim shall be made to them in writing, and if necessary, a certificate extending the time limit shall be obtained.

（2） The Insured and the Company shall take reasonable rescue measures to prevent or reduce the loss of goods that are subject to risks within the scope of insurance liability. The adoption of such measures by the insured shall not be deemed as an indication of abandonment, nor shall the adoption of such measures by the Company be deemed as an indication of acceptance of abandonment.

（3） In case of any voyage change or any omission or error in the cargo, name of vessel or voyage specified in the insurance policy, the insured shall notify the insurer immediately after being informed of the change and pay additional premium if necessary before the insurance will continue to be effective.

（4） When claiming against the insurer, the following documents must be provided:

Original insurance policy, bill of lading, invoice, packing list, weight list, certificate of cargo damage and shortage, inspection report and claim list. If the liability of a third party is involved, relevant letters and telegrams and other necessary documents or documents for recovery from the responsible party shall also be provided.

（5） After being familiar with the actual liability of the "Collision Liability of Ships" clause in the relevant transport contract, the insurer shall be notified in a timely manner.

5、 Claim Period

The limitation of claims under this insurance shall not exceed two years from the date when the insured goods are discharged from the seagoing vessel at the final port of discharge.