Marine Cargo Open Cover – Broker Clauses (for Illustration only)

CONDITIONS
In the event of conflicting terms, conditions and clauses, the terms, conditions and clauses most
beneficial to the Insured shall always prevail
 Institute Cargo Clauses (A) CL382 1/1/09
 Institute Cargo Clauses (Air) (excluding sendings by Post) CL387 1/1/09
 Institute Strikes Clauses (Cargo) CL386 1/1/09
 Institute Strikes Clauses (Air Cargo) CL389 1/1/09
 Institute War Clauses (Cargo) CL385 1/1/09
 Institute War Clauses (Air Cargo) (excluding sendings by Post) CL388 1/1/09
 Institute War Clauses (sendings by Post) CL390 1/3/09
 Institute War Cancellation Clause CL359 1/1/95
 Institute Classification Clause CL354 1/1/01 (amended to increase maximum age of all
vessels /carriers to become 35 years and also include vessels/carriers as in the Conveyance)
 Institute Radioactive Contamination,
 Chemical, Biological, Bio-Chemical and
 Electromagnetic Weapons Exclusion Clause CL370 10/11/03
1. Accumulation Clause (max. 2 times of sum insured) - likely ‘Catastrophe Protection’ shall
works should loss occurs during this Accumulation (2 risks Warranty – from 1 event, hits at least 2
risks)
Should there be an accumulation of interest beyond the limits expressed in this contract by reason
of any interruption of transit and/or occurrence beyond the control of the Insured, or by reason of
any casualty and/or at a transshipping point and/or on a connecting vessel or conveyance, then
provided prior notice is given to underwriters as soon as possible after said facts become known to
the assured, the Underwriters shall be liable for the full amount at risk, but in no event shall they be
liable more than twice the contract limit.

2. Additional Forwarding Costs Clause

In the event of frustration, interruption or termination of the insured transit from causes beyond the
control of the insured, this insurance is to continue whilst the subject matter insured is held in
storage, whilst awaiting release, and whilst in the course of onward transit to the original destination
or any alternative destination at the Insured's option.

Insurers also agree to pay any additional charges, costs or legal fees incurred by the Insured
incidental to the in the release, storage and onward shipment of the subject matter insured.
Expenses recoverable under this clause shall be in addition to any sue and labor or other expenses
which may be recoverable elsewhere under this contract.

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What’s the different between this clause with standard ICC wording points 8.3 & 12 ?
Both Clause 8.3 and this clause says: policy remain in force should anything ‘beyond the control of
the assured’ happen.
BUT FOR THE RECOVERABLE COSTS ---- Clause 12 says : as a result of the operation of a risk
covered , whilst this clause says : due to ‘ causes beyond the control of the assured’ --- not even says
due to causes covered under this policy.
3. Airfreight Replacement Clause (subject to limit USD 50,000)
In the event of loss or damage to the subject matter insured following an insured peril, Underwriters
agree to pay (1) the cost of airfreighting the damaged goods to manufacturers for repair and return,
or (2) the airfreighting of replacement goods from suppliers to destination notwithstanding that the
subject matter insured was not originally despatch by airfreight.
4. Apportionment of Recoveries Clause
It is hereby understood and agreed that where recovery is obtained from a Carrier or other third
party such recovery shall be apportioned between the Assured and the Underwriters in the same
proportion as the respective parties hereto borne the loss.
Example 1 : Loss by the assured U$ 100,000
Recovery from Carrier U$ 25,000. Insurer has paid to the assured U$ 90,000 (net of deductible)
The recovery U$ 25,000 shall due to the insurer
Example 2: same case as example 1, BUT claim was rejected by the Insurer – then, the U$ 25,000 due
to the assured
Example 3: same case as example 1, Recovery from Carrier is U$ 100,000.
Insurer shall get U$ 90,000 and the assured shall get the Deductible amount ie : U$ 10,000
5. Attachment and Termination of Risk
Notwithstanding the limitations of the “Duration” Clauses in the Institute Cargo and Institute Strikes
Clause, this insurance hereunder attaches from the time (1) the subject matter becomes at the
Insured’s risk or (2) the Insured assumes interest anywhere in the world

and continues whilst the subject matter (a) is in transit, and/or (b) in store or elsewhere
including during delays within or beyond the Insured’s control

and including (c) whilst held as stock (is it STP ?) whether or not in the course of transit, and further
(d) including any interest held for the purpose of packing, repacking, consolidation, deconsolidation,
containerization and during (e) the preparation for distribution and redistribution, until delivered
to intended final destination and/or (f) until the Insured’s risk and/or interest finally ceases
anywhere in the world, irrespective of terms and purchase and/or sale.

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(g) Including risks in customs and transshipments, craft and barge risks, whether customary or
otherwise.
Further (h) including the risks of loading, lifting, hoisting prior to despatch (OK for cls 2009, what
about clause 1982) and unloading, lifting, hoisting after arrival at Insured’s or consignee’s premise,
(i) including containers and/or contents where covered hereunder, in the case of container, during
the stuffing and de-stuffing. ?????
For clarity it is noted that cargo damaged during the course of loading, lifting, hoisting prior to
despatch and unloading, lifting, hoisting after arrival at Insured’s or consignee’s premises and while
loaded in a container awaiting pick-up shall be considered as a transit risk.
With respect to storage risks provided hereunder, it is understood and agreed that claims, if any, for
loss or damage which are discovered after inception date be recoverable hereunder unless it can be
clearly established that such loss or damage occurred prior to inception of cover hereunder. Onus of
proof on assured.
War Risks cover (as provided for by the inclusion of the relevant Institute Clauses specified above)
shall always be subject to the provisions regarding attachment and termination of risk incorporated
in the said clauses.

6. Bill of Lading Clause

The Insured is not to be prejudiced by the presence of the negligence clause and/or latent defect
clause in the Bills of Lading and/or Charter Party.
(1)The seaworthiness of the vessel as between the Insured and the Insurer(s) is hereby admitted
and (2) the wrongful act or misconduct of the ship owner or his servants causing a loss is not to
defeat the recovery by an innocent Insured, if the loss, in the absence of such wrongful act or
misconduct, would have been a loss recoverable hereunder. (washing overboard as the lashing is
not proper BUT ICC A covers such peril)
Leave is granted to sail with or without pilots and to tow and assist vessels or craft in all situations
and to be towed.

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7. Both to Blame Clause

In the event the Bill of Lading and/or Charter Party for merchandise insured hereunder contain the
so-called “Both to Blame Collision Clause" or similar clause, the Insurer(s) agree as to all losses
covered by this insurance, to indemnify the Assured for the amount which they are legally bound to
pay the ship-owner under such clause, or would be legally bound to pay except for common
ownership, management, agency or other interest.

8. Buyers’ and/or Sellers’ Contingent Interest / Difference in Condition Clause

This Policy extends to cover the Insured’s contingent interest in any goods
(1) where the Insured has no responsibility to insure under the terms of sale or purchase ( FOB ; C&F
; CIF) or
(2) which should have been insured elsewhere or
(3) where the cover provided (double insurance with other policy/ies) is more restrictive than that
afforded under this Policy, in terms of conditions or duration of cover, or
(4) where the Insured is unable to obtain settlement of legitimate claims under the insurance
arranged elsewhere or
(5) which are lost or damaged in transit due to perils covered by this Policy and for which the Insured
cannot obtain payment in accordance with the Contract of Sale.
Also, (6) where interest in the goods reverts to (Returning back to) the Insured for any reason, such
goods shall be covered continuously whilst awaiting resale or return including any additional transit

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resultant upon such resale or return. When required by the Insured, Insurers agree to supply General
Average Guarantee or refund General Average deposits.
The cover provided is however limited to loss and/or damage and expense which would otherwise
be recoverable under the terms and conditions of this Policy but only
(a) up to the extent that the Insured is unable to recover such loss and/or damage and/or expense
under the insurance effected by the buyer or seller or
(b) which should have been effected by the buyer or seller but was not, as may be applicable
provided that:
 the existence of this extension is not to be disclosed to any other interested parties;
 notice to be given to Insurers as soon as practicable after the Insured become aware that they
may have a claim under this extension;
 the Insured must in the first instance take all reasonable steps to invoke the terms of the
Contract of Sale and obtain reimbursement from the buyers and/or sellers and/or any other
interested parties;
 in the event of any claim settlement under this extension, all the Insured’s rights of recovery
against buyers and/or sellers and/or any other interested parties will be subrogated to
Insurers.
This extension is for the benefit of the Insured and is not to be deemed a double insurance.

9. Cargo ISM Forwarding Charges

This insurance is extended to reimburse the Assured, up to the limit of the sum insured for the
voyage, 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 following release of cargo from
a vessel arrested or detained at or diverted to any other port or place (other than the intended port of
destination) where the voyage is terminated due either.
• To such vessel not being certified in accordance with the ISM Code. or
• To a current Document of Compliance not being held by her owners or operators
As required under the SOLAS Convention 1974 as amended.
This clause, which does not apply to General Average or Salvage or Salvage charges, is subject to all
other terms, conditions and exclusions contained in the policy.

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10. Cargo Classification Clause – Innocent Insured Admitted Clause

Notwithstanding the provisions of Clause 1, Qualifying Vessels, within the Institute Classification
Clause CL.354 1/01/01 herein, the Insured hereon is not to be prejudiced in the event they are not
aware of the carrying vessel failing to comply with such requirements at the time of loading.

11. Cargo ISM Endorsement – Innocent Insured Admitted Clause

It is hereby noted and agreed that with reference to the Cargo ISM Endorsement (JC 98/019 1 May
1998) Insurers accept that in the ordinary course of business, the Insured would not be expected to be
aware:
a) either that the vessel was not certified in accordance with the ISM Code,
or
b) that a current Document of Compliance was not held by her owners or operators as required
under the SOLAS Convention 1974 as amended.
12. Civil Authority Clause
Notwithstanding anything contained in this policy, it is understood and agreed that property which
is insured under this policy is also covered against the risk of damage or destruction by civil authority
during a conflagration or for the purpose or regarding the same; provided that neither such
conflagration nor such damage or destruction is caused or contributed to by war perils elsewhere
excluded herein.

13. Claims Provisions Clause

Damage Repair Costs
In respect of damage claims recoverable hereunder where the Insured is appointed to affect such
repairs on behalf of Insurers, it is agreed that (1) such repair costs shall be based on the Insured's
normal commercial rate for such repairs (2) including the Insured's normal element of profit.
Failure to Notify Loss
Failure of the Insured’s customers or other interested parties or inadvertent omission of the
Insured to notify loss or damage and lodge claims on carriers or other responsible parties within the
time limits allowed shall not prejudice (a) the Insured’s or, with the approval of the Insured, (b) the
assignee’s rights of full recovery under this Policy.

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‘On Account’ Payments’

It is agreed that for losses where liability is admitted but the loss cannot be quantified (example:
vessel sunk – cannot quantify the damage and undamaged goods until wreck of the vessel removed),
Insurers shall make an “on account” payment to the Insured equal to 80% of the anticipated net claim
within 60 days from submission of the fully documented claim, subject to final adjustment within the
terms of the policy.
Nomination of Repairers
It is hereby noted and agreed the Insured may repair the subject matter or nominate repairers, where
repairs by any other party may or would compromise
(1) prejudice or
(2) invalidate any guarantee and/or warranty and/or like assurance or undertaking given by the
manufacturers or suppliers of the subject matter insured.
Non-Delivery Losses
In the event of a claim for theft, non-delivery or shortage of the subject matter and after the Insured
has taken all reasonable steps to locate the subject matter, Insurers agree that they shall make
settlements to the Insured if the subject matter has not been located after the expiry of:
(i) 30 days from the date of discharge or unloading at port or airport of discharge for Air
and/or Ocean shipments,
or
(ii) (ii) 30 days from the date the subject matter should have arrived at intended destination
via land conveyance.
Surveys
(a) No survey is necessary for claims unlikely to exceed USD 10,000 or equivalent in other
currencies in excess of any applicable deductible.
The Insured may submit the claim by providing the following information:
• Incident report form
• Copy of invoice, B/L, Packing List, Damage Report, and Photo;
• Correspondence with Carriers.
• Statement of Claim
(b ) When a survey is called for following a report of loss of or damage to subject matter, which is
likely to result in a claim hereunder, fees are recoverable even when no claim eventually results.
Translation
It is hereby noted and agreed that the Insured and/or “Broker ABC” and/or nominated Loss
Adjusters, Surveyors or Solicitors are authorized to procure the translation of any document(s)
necessary to the investigation defense or settlement of any claim that may be recoverable under this
Policy.
The reasonable cost of any authorized translation shall be met in full by Insurers without prejudice to
liability or regard to any provision in this Policy limiting or excluding liability.

14. Co-Mingling Clause

It is agreed that when the property in bulk is stowed so as to be co-mingled with the like property
belonging to others, loss or damage arising from a peril insured against shall be apportioned over the
party or parties involved in the shipments in accordance with the respective interest(s) of the said
party or parties involved, in the ratio that the quantity of property belonging to such party bears to
the total quantity of property stowed at the time and place of loss.

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Example : Cargo A values at U$ 100,000 has been co-mingled with Cargo B values at U$ 200,000.
Loss occurs due to a peril not being excluded under ICC ‘A’.
Insurer Cargo A shall pay the loss / damage at one third of the loss and
Insurer Cargo B shall pay the loss / damage at two third of the loss
15. Concealed Damage Clause (max. 120 days)
It is understood and agreed that in respect of shipments insured hereunder which are received at
destination but not unpacked, this policy is extended to cover losses arising from perils insured
against while in transit, which are not ascertained until the opening of the packages, provided such
opening occurs not later than one hundred twenty (120) days after arrival at destination and, in the
absence of proof to the contrary, such losses are to be considered as having occurred during the
voyage covered under this policy.
Nothing contained herein, however, shall be construed to limit the coverage elsewhere provided
herein.

16. Container Clause

Where Goods insured hereunder are carried in containers, Insurers agree that the seaworthiness
and the fitness of the containers are admitted.

17. Container Demurrage Clause

This policy shall cover demurrage charges and /or late penalties assessed against, and paid by, the
Assured for late return of containers when said containers are retained by the Assured at the
instruction of the Underwriters for inspection by the Underwriters surveyor or in investigation of loss
or damage under this policy.
The time period for which the Underwriters shall be liable for said charges and/or penalties,
shall begin at the time the Underwriters instruct the Assured to retain the containers for inspection
and shall end at the time the Underwriters surveyor instructs the Assured to return the containers

18. Contract Price Clause

Subject always to the limits of liability contained herein, it is hereby agreed and declared that in
respect of any (1) subject matter sold or pre-sold but not delivered and (2) with regard to which the
Sales Contract is cancelled by reason of loss hereby insured against either wholly or to the extent of
the loss, the liability of Insurers shall be based on (a) the sales or (b) pre-agreed contract sales price
or (c) the Policy Basis of Valuation whichever is the greater.
19. Currency Clause
All transactions effected by the Insured in currencies other than the currency in which this Contract is
written shall be converted into the said currency at the rate(s) of exchange of the Local Central Bank's
(or its equivalent) on the date of expiry of the policy. (situation IF no loss occurs during transit &
storage)
In case of loss, the exchange rate for the settlement will be based on the (1) ‘on board’ date for transit
risks and (2) date of loss for storage risks.
19a. Customs and/or Immigration Authority Inspection(s)
This insurance is also specially to cover (notwithstanding the war exclusion clause contained herein)
physical loss of or damage to the goods insured arising out of the performance of inspection duties

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by the relevant customs and/or immigration authorities or another duly constituted governmental
agency who are performing inspection duties of or for the relevant customs authorities.

20. Debris Removal Clause

This insurance is extended to cover, in addition to any other amount recoverable under this
insurance, extra expenses reasonably incurred by the assured for the removal and disposal of debris
of the subject-matter insured, or part thereof, by reason of damage thereto caused by an insured risk,
but excluding absolutely any expenses incurred in consequence of or to prevent or mitigate
pollution liability there for.
The indemnity provided by this clause shall be in addition to the indemnity provided elsewhere
herein but is limited to 20% of the insured value of the goods lost or damaged.

21. Deliberate Damage – Customs Clause -- same with clause 19.a

Cover is extended to include the physical loss of or damage to the goods insured arising out of the
performance of inspection duties by the relevant customs and/or immigration authorities or any
other duly constituted governmental agency of any state or territory who are performing inspection
duties in accordance with any governmental law, statute, mandate, rule or regulation covering the
import or export of said goods.

22. Deliberate Damage Pollution Hazard Clause

This insurance is extended to cover, but only while the property insured is on board a waterborne
conveyance, loss of or damage to said property directly caused by governmental authorities acting
for the public welfare to prevent or mitigate a pollution hazard or threat thereof,
provided that the accident or occurrence creating the situation which required such governmental
action would have resulted in a recoverable claim under this insurance (subject to all of its terms,
conditions and warranties if the property insured would have sustained physical loss or damage as
a direct result of such accident or insurance).
Example: Oil Cargo: the tanker vessel collided with a cargo vessel – risk of sunk in port area, risk of
polluting the environment and endanger of having fire.
Port Authority order to tow such tanker to the distance safe from the port / nearby environment and
to have her sunk.
This agreement shall not increase the Limits of Liability provided for elsewhere herein.

23. Duty and/or Increased Value Clause -- see below same clauses which much clearer
This Policy covers the additional or increased value of the subject matter, whether such subject
matter is insured herein or otherwise, by reason of payment of Duty and/or Levy and/or Freight
and/or Charges and/or VAT (1) at the port or place of destination or during storage.
Including the Insured's liability for the payment of Duty and/or Levy imposed by duly appointed
Authority of any (2) country through which the subject matter may transit prior to coming within
the jurisdiction of the country of destination.
What if those additional value was not include in the insured value ?
Subject to the same clauses and conditions as the Policy on subject matter and to pay the same
percentage of loss as may be paid thereon.
In ascertaining the amount of claim recoverable hereunder, credit shall be given for any rebates or
refunds that may become allowable.

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Insurers shall reimburse any expenses incurred by the Insured occasioned by circumstances outside
their control to substantiate any claim for rebate of Duty.

INCREASED VALUE (DUTY &/OR TAXES) CLAUSES

To cover increased value of cargo by reason of payment of duty &/or taxes at the port or place
of destination but to apply only as such duty and/or taxes are imposed.
Subject to the same clauses and conditions as the insurance on cargo and to pay the same percentage
of loss (excluding charges and expenses) as the original insurance but excluding claims in respect of:
a) Total loss of whole or part of the cargo prior to the duty &/or taxes becoming payable.
b) General average, salvage &/or salvage charges arising from any casualty occurring prior to
the duty &/or taxes becoming payable.
Liability hereunder shall be calculated on the actual amount of duty &/or taxes paid or the amount
insured whichever is the lower and in ascertaining the amount of claim recoverable hereunder,
credit shall be given for any rebate or refund of duty or taxes, which may become allowable.
Warranted that the Assured will use reasonable efforts to obtain abatement or refund of duties &/or
taxes paid or claimed in respect of goods lost, damaged or destroyed, and when Underwriters so elect
shall surrender any portion of the merchandise to the Customs &/or other Authorities concerned, in
which event the claim hereunder shall be for the value of the said merchandise so surrendered and
the expenses incidental thereto.

24. Errors & Omissions

The Insured hereunder is not to be prejudiced by any unintentional (1) delay in reporting
hereunder or by any error, omission, (2) incorrect valuation or (3) incorrect description of
subject matter, (4) conveyance or voyage, provided notice is given to Insurers as soon as is
practicable on discovery of such error or omission. What if loss occurs prior assured notify the
insurer ???
However, in no case shall cover exceed the limits stated herein.
The Policy shall not be affected by the failure of the Insured to comply with any of the warranties
or conditions over which they have no control. Example : packing by FF and / or seaworthiness

25. Expediting Expenses Clause

In consideration of the premium paid hereunder, Insurers agree to indemnify the Insured in respect
of extra charges including but not limited to overtime work, night work, work on public holiday(s)
and express freight.
Provided always:
1) that such extra charges are incurred in connection with any loss of or damage to the property
???? insured for which indemnity is granted under this insurance, and
2) that such extra charges are limited to 150% of the normal charges in respect of each and
every happening giving rise to a claim under this insurance, but
3) the cumulative costs of repairs plus other charges do not exceed the insured value of the
damaged item(s). is it in addition to the sum insured or part of it ?

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26. Fraudulent Bills of Lading

This policy also covers physical loss of or damage to goods insured through the unknowing
acceptance by the Insured and/or their Agents and/or Shippers of fraudulent Bills of Lading and/or
Shipping Receipts and/or Messenger Receipts.
In no event does this cover solely financial loss from fraud or mis-statement.
Also to cover loss of or damage to goods insured caused by (1) the utilization of legitimate Bills of
Lading and/or (2) other shipping documents without the authorization and/or consent of the
Insured or its agents.

27. Full Follow Clause

Co-Insurers hereon agree to follow the Agreement Parties as regards alterations, extensions,
additions, endorsements and claims settlements. Co-Insurers shall be provided with copies of all
such agreements.
This clause does not apply to any agreement regarding increased Limits of Liability, reduced
premium rates or reduced deductibles, which must be agreed by each Insurer prior to the effective
date.
This clause does not apply to without prejudice and ex-gratia settlements which must be agreed by
each Insurer for their respective participation.
28. Fumigation Clause
In the event of the vessel, wharf, warehouse or conveyance (or of cargo and/or goods and/or
merchandise on or in such vessel, wharf, warehouse or conveyance) in or on which the interest
insured is transported or stored being fumigated by order of properly constituted authority,
Insurer(s) agree to indemnify the Assured for loss or expense arising therefrom.
29. General Average Clause
This insurance covers general average and salvage charges, adjusted or determined according to the
contract of affreightment and/or the governing law and practice (or, if there is no contract of
affreightment, according to Foreign Statement or to York-Antwerp Rules) incurred to avoid or in
connection with the avoidance of loss from any cause.
For the purpose of claims for general average contributions and salvage charges recoverable
hereunder, the subject-matter insured shall be deemed to be insured for its full contributory value.
Why ? is under insurance applies under Cargo ?
General average deposits shall be payable on production of general average deposit receipts

How do I determine how much insurance I should purchase?

There are two major considerations when determining how much insurance to purchase.
- First, how do you want to value goods? Usually, cargo policies value goods at the invoice
cost, plus freight plus an additional percentage (referred to as an "advance") of the total of
those amounts (usually 10% - 20%) to account for additional expenses and charges which
may be incurred during shipment but which are unknown at the time of shipment.
- Second, what is the maximum amount (based on the valuation formula) you plan to ship on
any one conveyance? This is the usual policy limit you will require.

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What about shipping the second hand / used cargo ?

Likely, assured will put the market value as the value insured
Assured to ensure that the value insured must reflect the NRV of the used items at the final
destination.
If the market value of the used goods is less than that of NRV goods due to depreciation, an
under-insurance may to apply and the insured may need to bear some loss
The rationale behind: if the NRV of the goods arriving at the destination is higher than the sum
insured when loss arises, the insurer may consider it as under insured

30. Insurers Default Clause

Where an event of default (in this case is the ‘financial default’), as hereinafter defined, shall have
occurred in relation to any Insurer of this policy, the Insured shall have the right to give immediate
notice of cancellation of such Insurer’s participation in this policy.
Such cancellation shall be effective as at the date the said notice is given or as of the date of the
happening of the event of default, whichever is the later, either of such dates, as the case may be,
being hereafter referred to as the “Notice Date”.
In the event of cancellation hereunder, (1) the Insured shall be entitled to a pro-rata return of
premium as from the selected Notice Date and (2) the Insured shall be entitled to set off against any
amounts owing by them to the Insurer the pro-rata return of premium to which the Insured is
entitled hereunder.
For the purpose of this clause, an event of default shall have occurred if an Insurer:
a) suspends payment of claims, or
b) becomes unable for whatever reason to pay claims in their entirety when due, or
c) is liquidated, or
d) is made subject to the appointment of a provisional liquidator, or e) is placed into
administration, or
e) receives during the duration of this insurance a rating downgrade from either A.M. Best
Company or Standard and Poor’s to a rating below BBB+, or
f) is subject to or is the subject of any proceedings of a similar nature to those set out in (c) to
(e) above.

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31. Issue of Certificates Clause

Underwriters agreed to issue Certificates of Insurance as required and to bear the fee and cost
thereof subject to the inclusion thereon of the following clause:
“The Institute Clauses incorporated herein are deemed to be those current at the time of
commencement of risk”.
Seringkali, ada pihak yang meminta bukti jika cargo milik tertanggung sdh diasuransikan – semacam
statement dari pihak asuransinya. Insurer akan terbitkan such certificate
32. Letter of Credit Clause
Where the Insured is obliged to arrange insurance in accordance with any instructions contained in
a Letter of Credit, such cover is granted hereunder provided it does not exceed the provisions of
the contract wording or is held covered at a premium to be agreed (by Underwriters).
(if the provisions in the L/C exceed the policy coverages or conditions)
Notwithstanding the above and irrespective of the Letter of Credit requirement the interest of the
Insured named herein shall always be protected hereunder against all risks covered by this contract
wording.
33. License Clause
This insurance is not to be prejudiced by any liberties, conditions, clauses, limitations, exceptions or
exceptions contained in bill of lading, charter parties, contracts of affreightment and/or other
contracts or agreements between the shipper and the carrier.
Policy must align with any terms in the contract between shipper and the carrier
Also, this insurance shall not be prejudiced by bills of lading and/or bill of sale and/or Invoices
and/or other documents calling for delivery to or by the assured at the seaport, where the
responsibility and/or Insurable interest of the Assured attaches at or continues to interior place or
places.
34. Loss Notification Clause
Notwithstanding anything contained herein to the contrary it is agreed that this insurance will not
be prejudiced by any inadvertent delays, errors or omission in notifying the Insurer of any
circumstances or events giving rise or likely to give rise to a claim under this Policy.
34.a Nominated Loss Adjusters Clause
It is hereby noted and agreed that in the event of a loss the following Adjusters should appoint and
the Preliminary and/or Final Report should be forwarded to the Agent and/or Broker concern.
The report should be submitted to the insurer
Nominated Adjusters:
• PT. RADITA HUTAMA INTERNUSA
• PT. PRIMA ADJUSTERINDO MANDIRI
• PT. MCLARENS INDONESIA

35. Packing Clause

Notwithstanding anything contained herein to the contrary it is agreed that where packing or
preparation is undertaken by the assured or their subcontractors, underwriters shall accept such
packing or preparation as sufficient or suitable to protect the subject matter insured against loss or
damage and further agree to waive rights of subrogation against the Assured or their subcontractor.

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36. Partial Loss Clause

Claims hereunder are to be adjusted on a salvage loss basis. At Assureds (should be on Insurer’s
option) option, in lieu of (instead of) a salvage adjustment, in case of partial loss by perils insured
against, the proportion of loss shall be determined by a (1) separation of the damaged portion of
the insured property from the sound and (2) by an agreed estimate (by survey) of the percentage of
damage of such portion or, if such agreement is not practicable, then (3) by public sale of such
damaged portion for the account of the owner of the property and by comparison of the amount so
realized with the sound market value.
Example point 3 – Sound market value USD 1,000 ------ Damaged goods market value USD 400.
Partial loss = USD 600

37. Premium Payment Clause

Notwithstanding any provision to the contrary within this contract or any endorsement hereto, in
respect of non-payment of premium only, the following clause will apply.
(1) The Assured undertakes that premium will be paid in full to Insurers (1) within 90 days of
inception of this contract (or, in respect of (2) instalment premiums, when due + 60 day
grace period).
(2) If the premium due under this contract has not been so paid to Insurers by the 90th day from
the inception of this contract (and, in respect of instalment premiums, by the date they are
due), Insurers shall have the right to cancel this contract by notifying the Assured via the
broker in writing.
In the event of cancellation, premium is due to Insurers on a pro rata basis for the period that
Insurers are on risk but the full contract premium shall be payable to Insurers in the event of
a loss or occurrence prior to the date of termination which gives rise to a valid claim under
this contract.
It is agreed that Insurers shall give not less than 30 day prior notice of cancellation to the Assured
via the broker.
If premium due is paid in full to Insurers before the notice period expires, notice of cancellation
shall automatically be revoked. If not, the contract shall automatically terminate at the end of the
notice period.
If any provision of this clause is found by any court or administrative body of competent jurisdiction
to be invalid or unenforceable, such invalidity or un-enforceability will not affect the other provisions
of this clause which will remain in full force and effect.

38. Rejected or Returned Shipments Clause

Subject to the original insurance conditions this insurance shall cover (1) goods refused and/or
returned by consignees or (1a) which remain at the risk of the Assured, beyond the normal course
of transit until disposed of by the Assured by return to the port of shipment or otherwise
This insurance may also be extended to cover (2) Equipment which needs to be sent back to, and
returned from, manufacturers and/or repairers due to a problem occurring during the Construction
Phase. – Project Cargo
Cover in this respect is subject to prior advice and rates, terms and conditions to be agreed by
Insurer(s).

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39. Salvage Goods Clause -- Brand & Label clause

In case of damage determined to be a total loss by the Assured together with the underwriter’s
appointed surveyor, Underwriters are to pay a total loss on any and all goods damaged by perils
insured against which the Assured elect to either destroy or return to their factory or recondition,
Underwriters being entitled to such salvage as may be obtained. However, if the Assured does not
elect to either destroy or return to their factory or recondition such damaged goods, the Assured
shall allow the Underwriters any salvage obtained on any sale or other disposition of such goods
after the removal of brand names or trademarks.
40. Sanctions and Limitations Exclusion Clause
No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or
provide any benefit hereunder to the extent that the provision of such cover, payment of such claim
or provision of such benefit would expose that insurer to any sanction, prohibition or restriction
under United Nations resolutions or the trade or economic sanctions, laws or regulations of the
European Union, Japan, United Kingdom or United States of America.
41. Seaworthiness Admitted Clause
The seaworthiness of the vessel, craft and/or conveyance as between the Assured and Insurer(s) is
hereby admitted.
What’s the intention? to overrule exclusion 5.1?
In the event of loss, the Assured’s right of recovery hereunder shall not be prejudiced by the fact that
the loss may have been attributable to the wrongful act or misconduct of the ship owners, or their
servant, committed without the privy of the Assured. Leave is granted to sail with or without pilots
and to tow and assist vessels or craft in all situations and to be towed.
Exclusion ICC: if Assured Privy -- policy exclude, Otherwise policy covers.
However, paragraph 2 of this clause, DOES NOT concern to the seaworthiness, instead of saying the
willful misconduct / wrongful act.

42. Shipments Clause

Shipments are covered hereunder, including against loss by jettison, whether containerized or
otherwise and whether on deck or under deck irrespective of Bill of Lading instructions.
Jadi kalo placement cargo tidak sesuai B/L, policy still covers.
What if the placement is against insurer’s warranty / subjectivity?
43. Testing, Sorting and Segregation Clause
(a) In the event of loss of or damage to the subject matter insured or (b) in the event of external signs
of damage to the subject matter or packing, Insurers agree to meet:
(1) the costs of testing, sorting and segregating the subject matter including
(2) any Surveyor’s fees and
(3) additional storage charges whether or not any actual damage is subsequently found including
(4) the cost of transporting the subject matter to or from a test facility plus

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(5) the cost of updating software and

(6) re-packing and
(7) shipment to destination after completion.

44. Sue & Labor Clause -- same with clause 17 of the ICC wording (Waiver Clause)
In case of any imminent or actual loss or misfortune, it shall be lawful and necessary to and for the
Assured, his or their factors, servant
and assigns to sue, labor and travel for in and about the defense, safeguard and recovery of the said
goods and merchandise,
or any part thereof without prejudice to his insurance, nor shall the acts of the Assured or Assurers.
In recovering, saving and preserving the property insured, in case of disaster, be considered a waiver
or an acceptance of abandonment; to the charges whereof the said Assurers will contribute according
to the rate and quantity of the sum herein insured.

45. Survey Fees Clause - similar with clause no. 43

In the event of the Insured and/or consignee complying with the instructions contained in the Contract
or on the certificate of insurance to call for a survey in respect of loss or damage which may result
in a claim hereunder, it is hereby understood and agreed that the expenses incurred and fees charged
in respect of that survey are for the Insurer’s account even though a claim may not subsequently
result hereunder.
46. Storage Extension Clause (60 Days) Storage during transit OR in the final warehouse ????
Notwithstanding (although) anything to the contrary contained herein, it is noted and agreed that
this policy (except coverage against War Risks) covers whilst the insured interests are stored at:
……………………….for a period of not exceeding 60 days commencing from the time the insured
interests are delivered to the said location. (it does not mention FINAL DESTINATION, it can be transit
place) – seems NOT align with ‘Ordinary Course of Transit’
47. Termination of Transit Clause (Terrorism) -- as per transit clause 8 of the ICC
This clause shall be paramount and shall override anything contained in this insurance inconsistent
therewith.
• Notwithstanding any provision to the contrary contained in this Policy or the Clauses
referred to therein, it is agreed that in so far as this Policy covers loss of or damage to the
subject-matter insured caused by any terrorist or any person acting from a political motive,
such cover is conditional upon the subject-matter insured being in the ordinary course of
transit and, in any event, SHALL TERMINATE:
either:
1.1. As per the transit clauses contained within the Policy,

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or
1.2. on delivery to the Consignee’s or other final warehouse or place of storage at the
destination named herein,
1.3. 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 for storage other than
in the ordinary course of transit or for allocation or distribution,
or
1.4. in respect of marine transits, on the expiry of 60 days after completion of discharge
over-side of the goods hereby insured from the oversea vessel at the final port of
discharge,
1.5. in respect of air transits, on the expiry of 30 days after unloading the subject-matter
insured from the aircraft at the final place of discharge, whichever shall first occur.
• If this Policy or the Clauses referred to therein specifically provide cover for inland or other
further transits following on from storage, or termination as provided for above, cover will
re-attach, and continues during the ordinary course of that transit terminating again in
accordance with clause 1.
• This clause is subject to English law and practice.
48. Unexplained Loss Clause
It is agreed that in respect of consignments shipped in containers or curtain sided trailers or full
vehicle loads or tanker truck, claims in respect of theft, shortage or non-delivery of a whole or part
of a consignment will not be invalidated by the fact that the seals(s) appear intact and that such
claims will be settled in full on production of loading and discharge tally sheets (check sheets)
49. Waiver of Subrogation Clause (against subsidiary only)
Notwithstanding anything contained in the policy to the contrary, the Insurer agree to waive any
rights and remedies or relief to which they may become entitle against:
Any corporation or organization (including its directors, officers, employees) owned or controlled
by any insured name or subsidiary to any insured name herein or any co-owner of the property
insured hereunder.
50. Willful Misconduct Clause - align with exclusion 4.1 in the ICC wording
Notwithstanding anything to the contrary contained elsewhere herein or in the law and practice to
which this Policy is subject, this insurance shall not exclude loss damage or expense attributable to
willful misconduct of any person or persons committed without the privy of the directors and/or
officers or whoever is considered the alter ego of the Insured.

Who is the assured ?????

51. BASIS OF VALUATION: -- Insured Value, instead of Sum Insured under Cargo policy
The said goods and merchandise to be valued and insured as follows:
a) For transit risks, including vessel, barge, truck, rail, pipeline, aircraft or other conveyance,

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(1) valued at amount of invoice (from the Assured to buyer) including all charges in the
invoice, (2) plus cost of insurance, (3) plus period or advanced guaranteed freight, if any; (4)
plus 10%; (this is the reason that Cargo is using ‘Insured Value / Value Insured’ instead of Sum
Insured); or

b) For storage risks and for transit risks where no invoice (from the Assured to buyer) exists,
valued at the greater of:
(i) Original purchase price, including all charges in the invoice plus cost of
insurance, plus pre-paid or advanced guaranteed freight, if any, plus 10%.
(ii) Selling price on the date of loss, as defined by a recognized commodity exchange or
index appropriate for the geographical area.
(iii) In accordance with the Insured’s established practice.

c) The amount declared if such declaration is made prior to loss but in no event shall such
declaration be less than (a) or (b) above as applicable.

52. BLOCKING & TRAPPING CLAUSE:

Notwithstanding anything contained herein to the contrary, this insurance is also to indemnify the
Assured for up to USD10,000,000 (too big, I think) any one occurrence and in the annual aggregate
in respect of:-
1. This insurance shall indemnify the Assured, in manner and to the extent hereinafter agreed,
in the event of them being deprived of use of or possession of the subject matter insured
by reason of (A) the carrying vessel being unable to sail, or being prevented from sailing,
from or out of any port, loading point, terminal, off-shore facility, canal, river, waterway, bay,
gulf or other place or area (hereinafter referred to as ‘the said place or area’) as a result of
(1) the closure, blockade or blockage of the said place or area from any cause
whatsoever, (must added with word of ‘subject to policy exclusion’) – kalo sebagai
akibat WAR gimana ???? provided such closure, blockage or blockage shall not have been
effective on the attachment of this insurance.

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2. In the event of the Assured being deprived of use of or possession of the subject matter
insured in the circumstances referred to in Clause 1 above, they shall be deemed to have
suffered a total loss by seizure and be indemnified by the Insurers to the full extent of
the insured value.

3. For the purposes of this insurance, the Assured shall be deemed to have been deprived of use
of or possession of the subject matter insured (2) if a period of 120 days (Time Excess) has
elapsed from the date the Insurers are notified by the Assured of the aforesaid inability or
prevention and the carrying vessel is still unable to sail or still prevented from sailing from
the said place or area, or from any bay or gulf (in which the said place or area is located)
between the said place or area and the high seas.
53. CANCELLATION CLAUSE:
This insurance may be reviewed and/or cancelled by either party having given in writing:
1) 30 days’ notice in respect of Marine Risks,
2) 7 days’ notice in respect of War, Strikes, Riots and Civil Commotions Risks, but
3) 48 hours’ notice in respect of Strikes, Riots and Civil Commotions Risks on sending to or from
U.S.A.
Such cancellation, however, shall not prejudice any transit risk or risks which shall have attached at
the time, or before such cancellation becomes effective.
Example: Transit 1 November 2020 from Indonesia to London – Notice of cancellation due to ‘Marine
Risk’ released on date 10 November 2020 (shall effective on the date of 10 December 2020) – such
Transit is still cover under the policy.

54. ‘CLAUSED’ BILLS OF LADING CLAUSE:

The insurance is not to be prejudiced solely by the reason of the marking of the Bill of Lading (or like
document) with a clause indicating items insufficiently packed.
Clean BL: showing that there is no accident during transit which ten assume the cargo condition is
still in its safe and sound.
Clause BL: is the vice versa of the Clean BL
Notes: These 2 clauses are the compulsory query from underwriter whom receive a quote for last
transit only from agent / broker.
Transit Clause: London – Balikpapan with transshipment at Singapore.
The underwriter only being asked to quote cargo from Singapore to Balikpapan.
How does he know that the cargo is still in its safe and sound condition? risk survey? or just asking
the agent / broker to provide Clean BL?

55. CONTAMINATION CLAUSE:

It is agreed that this insurance shall pay additional freight costs and/or demurrage charges of the
vessel,
to ship contaminated cargo to a substitute location for discharge,
where no land tanks were available at the intended port of discharge,
subject to contamination being due to a peril insured against hereunder.

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Cargo contaminated due to perils insured – none of the warehouse at the final port available to
receive such cargo – must ship to the substitute location for discharge / unloading – freight costs are
covered by the ICC.
56. CONTINGENT INTEREST/UNPAID VENDORS CLAUSE:
This insurance is extended to cover the interest of the Assured only, as a vendor in a credit
transaction, on all shipments made by the Assured on terms under which the Assured is not
obliged to furnish marine insurance.
The Insurer(s) will guarantee to the Assured the prompt collection of losses within the terms and
conditions of this insurance, in connection with shipments for which the Assured has not been paid
by the consignee.
The Insurer(s) will advance to the Assured the amount of the loss. Such advance shall be repayable
upon remittance of the purchase price by the consignee or to the extent of any recovery received by
the Assured from insurance effected by the consignee or otherwise.
Such shipments shall be insured subject to the applicable insurance conditions.
Example: there is a MOP (with standard Transit Clause as per ICC wording) effective by the assured
and the insurer.
In certain contract, the TOT is based on C&F / CIF / FOB where the assured has no obligation to buy
insurance.
Goods has been sent to his client / consignee, and the assured has not been paid for the price of the
goods themselves.
There is a claim during transit – this policy (the MOP mentioned above) shall cover such loss and
such payment shall be repayable to the insurer once assured receive payment from consignee or any
recovery received from insurer of the consignee.
Goods and/or merchandise and/or commodities insured hereunder shall be valued at amount of
invoice plus prepaid and/or advanced and/or guaranteed freight, if any, not included in the invoice.
Notwithstanding the valuation expressed in the above paragraph it is agreed that in the event a
vessel arrives in general average such shipments shall be valued at not less than the contributory
value for general average purposes only.
The Assured agrees not to divulge (memberitahukan / membocorkan) the existence of this
insurance and (1) to use all reasonable means to collect the full amount due from the consignee and
in the event of being unable to collect, the Assured agrees (2) to subrogate to the Insurer(s) any rights
he may have against the consignee to the consignees insurance and/or the carrier.

57. CUSTOMS AND/OR IMMIGRATION AUTHORITY INSPECTION(S) CLAUSE: same as clause 19a.
This insurance is also specially to cover (notwithstanding the War Exclusion Clause contained
herein) physical loss of or damage to the subject matter insured arising out of the performance of
inspection duties by the relevant Customs and/or Immigration Authorities or another duly
constituted governmental agency of any State or Territory who are performing inspection duties in
accordance with any governmental law, statute, mandate, rule or regulation covering the import or
export of said subject matter into or from the applicable State or Territory, or covering whilst said
subject matter is passing through such State or territory prior to coming within the jurisdiction of
the State or Territory of destination.

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58. DEMURRAGE/LATE RETURN CHARGE(S) CLAUSE: similar with container demurrage charges
clause – clause 17
If the Assured is required by the actions of Insurers or their Agents or Surveyors to hold onto
any property leased or hired by the Assured for the purpose of the carriage or the storage of the
subject matter insured hereunder and if the Assured is assessed a late return penalty and/or
demurrage charge for holding said property past the due return date, these Insurers will pay the
late return penalties and/or demurrage charges as a consequence of such late return.
The amount these Insurers will pay shall be the charges assess from the time the Assured is required
to hold onto said property until the time the Assured is informed that the property can be released.
Coverage under this clause is separate from and in addition to the limits of liability provided
elsewhere herein.

Example: damage goods is suspected caused by unfitness of he containers hired by the assured –
surveyor / insurers ask the insured to retain such containers for further investigation to determine
the claim – late return of containers by the insured to the 3rd party – insured is fined by the 3rd party
– such fines shall be paid by the insurer.

59. DUTY, TAXES AND THE LIKE CLAUSE:

In addition to the limit(s) of liability set forth elsewhere in this insurance contract, Insurers agree
to pay duties, value added tax (V.A.T.) and other like charges paid by or which become due from the
Assured with respect to shipments for which a claim is paid by Insurers.
Example: import goods – pay duties and/or VAT – arrived at the assured warehouse -- unpacking,
found that Cargo suffers total loss insured against the policy.
Insured value USD 1,000,000. Duties and/or VAT paid USD 100,000.
Should refer to the above wording, insurer obliges to pay UD 1,100,000. Is it correct???
It will depend on the breakdown of the insured value at the inception date……
Should USD 1,000,000 already include such VAT , duty, etc – and in fact, such USD 1,000,000 NOT
sufficient, then the liability of the insurer is limited to USD 1,000,000.
-------------------------------------------------------------------------------------------------------------------------------
There is no statement of: provided that the duties, VAT and other like charges are include in the
Insured Value. In this case, should TLO, insurer shall pay more than the insured value, is it correct?
The Assured will, in all cases, use reasonable efforts to obtain abatement or refund of duties and
other charges paid by or claim in respect of goods and/or merchandise and/or commodities lost,
damage or destroyed.
The assured has an obligation to get refund from the Government related with duties and / or VAT
paid considering their cargo’s lost / damage.
What if such efforts fail / not to agree by the Government?????
- If value insured has been included such VAT, duty etc – shall be fine to insurer as they have
receive some premium representing amount of such tax, duty etc. as part of value insured.
- If value insured NOT including such VAT , duty etc – shall also be fine to insurer as they did
not pay these tax, duty etc, instead of paying only the value insured (as words in light blue
above.

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This insurance on duty, V.A.T. and other charges shall terminate at the end of the import movement
covered under this insurance contract but nothing contained in this Clause shall alter or affect any
coverage granted elsewhere in this insurance contract during the storage or transit subsequent
thereto.
60. EXTRA EXPENSE CLAUSE: -- similar with ‘Forwarding Charges’ clause in ICC wording

Notwithstanding anything herein to the contrary this insurance is also to indemnify the Assured for
up to USD2,500,000 any one occurrence and in the aggregate for the policy period in respect of
additional expenses incurred by the Assured in attempting to prosecute an intended voyage
covered hereunder whether such attempt may ultimately prove successful or otherwise (including
but not limited to extra chartering costs and/or storage costs and/or transshipment costs
and/or guarantees and all other forwarding costs including by any alternative means of
conveyance) as a result of one or more of the following occurrences:
a) the vessel and/or conveyance on which the cargo is being carried or is intended to be carried
being (1) arrested, (2) restrained (including but not limited to restriction of access to port(s)
and/or place(s) of loading and/or discharge and/or any other area in between), (3) detained
and/or (4) otherwise delayed for any time period and as a result of any reason whatsoever,
excluding however financial default and/or insolvency of the Assured.

Points 1-4 above: not being excluded under ICC ‘A’, therefore clause 12 of the standard ICC
applies.
However, this clause excludes financial default of the assured, whilst the policy wording
excludes financial defaults of ship owners, managers, charterers, operators.
Meaning: if points 1-4 caused by both mentioned factors, this clause shall not work.
BUT , this clause has word of ‘as a result of any reason whatsoever’ in part of delay……..jadi
gimana nih?????

Kalimat : ‘as a result of any reason EXCEPT Financial default etc’ memiliki arti :
Jadi kalo delay bukan karena financial default, polis liable.

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b) the Cargo being forcibly discharged from the vessel and/or conveyance as a result of any
reason whatsoever, excluding however financial default and/or insolvency of the Assured.

c) loss of, mechanical breakdown of, or damage to the hull, machinery (including electrical
machinery and boilers) and/or equipment of the vessel and/or conveyance on which the
cargo is being carried or is intended to be carried
d) the vessel and/or conveyance on which the cargo is being carried or is intended to be carried
encountering heavy weather.
This point ‘D’ aligns with clauses 12 of the ICC wording
The coverage afforded hereunder is in addition to the Sum Insured and/or Limits of Liability herein
furthermore, in no case shall this clause be deemed to limit in any way cover otherwise provided for
elsewhere in this insurance.
What’s the effect of words ‘in addition to the Sum Insured’ ?? as this clause is about costs of
forwarding the goods to the destination mentioned in the policy and NOT about claim occurs to the
cargo itself.
Example:
- Cargo sounds BUT needs expenses as mentioned above for amount USD 250,000 --- policy
shall pay USD 250,000
- Cargo damage during re-shipment, for amount USD 100,000 and expenses as mentioned
above is USD 250,000 ----insurer shall pay USD 350,000
61. FIRE, EXPLOSION OR HEATING CLAUSE:
It is agreed that loss, damage and/or claims arising through fire, explosion or heating shall be
recoverable hereunder even when caused by spontaneous combustion, inherent vice or nature of
the interest insured.

This clause is buy back exclusion 4.4 of the ICC wording

62. FLASH TITLE TRANSACTION(S) CLAUSE: similar with clause 56 ‘Contingent Interest’
This insurance shall also cover the subject matter insured when purchased and sold by the Assured
as part of a Flash Title transaction. To be declared as Contingent Risks as per rates detailed
elsewhere herein.
Example: Indonesia has 34 states.
Cargo send from Jogya state to Jakarta state. The ownership / title of such goods holds by an entity
in Jogya and during transit, the title / ownership of cargo is in the carrier / bailee.
Refer to the Contingent Clause, number 8 & 56 – the assured (purchaser) in Jakarta state has
insurable interest, therefore has the right to insure the goods and receive indemnity should loss
occurs during transit.
Another type of transaction involves something called a “flash title.” This occurs in a transaction where
an out-of-state entity holds legal title to an item in the stream of interstate commerce but the item is in the
control of a third party (typically a common carrier).
Interstate commerce refers to the purchase, sale or exchange of commodities, transportation of
people, money or goods, and navigation of waters between different states.
Interstate commerce is regulated by the federal government as authorized under Article I of the
U.S. Constitution. The federal government can also regulate commerce within a state when it
may impact interstate movement of goods and services and may strike down state
actions which are barriers to such movement.

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63. F.O.B. SHIPMENT(S) CLAUSE:

In respect of goods and/or merchandise and/or commodities bought on F.O.B. (Free On Board)
and/or F.A.S. (Free Alongside of the vessel) and/or Ex Border (should be ‘Ex Works’) terms and/or
on other similar terms, it is understood and agreed that cover shall commence from time of leaving
the supplier’s premises at place of dispatch.
Assured as buyer – they should be to have interest after goods arrive in the vessel, BUT by this clause,
this policy applies as per ‘transit clause’ of the wording

Ex works (EXW) is an international trade term that describes when a seller makes a product
available at a designated location, and the buyer of the product must cover the transport costs

64. FRAUDULENT DOCUMENTS CLAUSE

This insurance covers physical loss of or damage to the subject matter insured hereunder
through the acceptance by the Assured and/or their Agents and/or Shippers of (A) fraudulent
shipping documents, including but not limited to (1) Bill(s) of Lading and/or (2) Shipping Receipt(s)
and/or (3) Messenger Receipt(s) and/or (4) Warehouse Receipts --- accepted during the ordinary
course of transit and/or other shipping document(s).
This insurance is also to cover physical loss of or damage to the subject-matter insured caused by (B)
utilization of legitimate Bill(s) of Lading and/or other shipping documents without the authorization
and/or consent of the Assured or their Agents and/or Shippers.

65. INCHMAREE CLAUSE: -- Hull Clause

This Insurance also covers any loss of or damage to the interest insured hereunder caused by
accidents in loading, discharging, or hauling of cargo, or in bunkering or in taking in fuel or caused
through the bursting and/or breakage and/or loose connections of boilers, pipes or shafts, or
through any latent defect in the machinery, hull or appurtenances, of from faults or errors in the
navigation or management of the vessel for which the vessel, her owners, agents or charterers is or
are relieved of responsibility;
Shall refer to the scope of covers provided under which ICC being used (loading / unloading ga
dijamin di C, misalnya)

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also including all risks of negligence, default, error or incompetence in the judgement of or by the
masters, mariners, mates, engineers, pilots, crew or stevedores, or other persons employed by the
ship owners or for whose acts he is responsible.
Shall refer to the scope of covers provided under which ICC being used
66. INCREASED VALUE ON ARRIVAL CLAUSE: see example in clause 67 below
On Increased value of Cargo as described herein (whether such cargo is insured herein or otherwise)
by reason of liability for and/or payment of freight and/or duty and/or levy and/or any charges on
arrival at the place where these or any of them become due or otherwise.
This policy covers all the risks and embodies all the liberties clauses and conditions of the insurance
on the cargo referred to above and is to be for the duration of such insurance on such cargo.

This policy is to pay the same proportion of the amount of insurance hereunder as the sum paid on
the cargo insurance referred to above bears to the amount of such cargo insurance except that until
the liability to pay freight and/or duty and/or levy and/or charges arises, this policy only covers
particular and/or general average loss (other than liability for general average expenditure) of the
cargo referred to above.
Should the liability to pay freight and/or duty and/or levy and/or charges be extinguished or
diminished, then this insurance in the proportion of such extinction or diminution shall be deemed
to be reduced.
Also, including the Assured’s liability for the payment of duty, following loss of or damage to the
insured interest recoverable hereunder, to the Authority of any country through which the Interest
may pass prior to coming within the jurisdiction of the country of destination.

67. INCREASED VALUE(S) AND/OR PROFIT(S) CLAUSE:

This insurance shall also cover increased values and/or profits on shipments purchased by the
Assured on C.I.F. terms or other similar terms under which the seller provides transit insurance for
the account of the Assured.
In the event of a partial loss of the shipment, Insurers shall not be liable under the foregoing for a
greater percentage of the loss, damage or expense than would be payable on the shipment if it had
originally been insured by these Insurers.

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Example:
Insured value Seller’s policy A: USD 1,000,000
Insured value buyer’s policy B: USD 200,000 (IV as per clause 14 of the ICC wording)
Partial loss: USD 100,000 (net of deductible)
Policy A ‘s = (USD 1,000,000 / USD 1,200,000) x USD 100,000 = USD 83,333
Policy B’s = (USD 200,000 / USD 1,200,000) x USD 100,000 = USD 16,667
In the event of a total or constructive total loss of the shipment, the increased values and/or profits
shall be the difference between the amount of the insurance actually provided by the seller and the
value of the shipment as calculated under the valuation provisions set forth elsewhere in this policy.
The IV (Increased Value) is the difference between USD 1,200,000 and USD 1,000,000.
If required, the Assured shall be permitted to issue certificates of insurance for the full value of the
shipment as calculated under the valuation provisions set forth elsewhere in this policy.
In such cases Insurers hereunder to be subrogated all rights and remedies of the Assured under the
insurance provided by the seller and in no case shall this insurance be deemed as double insurance.

Example:
The assured (Buyer) can cover full value at USD 1,200,000.
If there is a total loss, Insurer of the buyer (policy B) shall pay full claim and subrogate to the Policy
A (Insurer of the seller) for amount USD 1,000,000
The coverage provided in this Clause shall be free of claims for general average, salvage and special
charges and expenses except on the portion of the contributory value of the shipment in excess of
the amount actually insured and only if uncollectible under the insurance provided by the seller.
The coverage provided in this Clause shall be without benefit of salvage unless the terms of the
insurance provided by the seller permit participation.
Premium for this extension of coverage to be calculated on the amount of Additional Insurance
and/or Increased Value and/or Profits Insurance subject to the applicable policy rates at the time of
shipment.
68. INSOLVENCY EXCLUSION CLAUSE: this clause for ICC 1982 wording, NOT for 2009’s, as the
later ones (2009’s version) already amended as this clause
It is hereby agreed that the exclusion ‘loss damage or expense arising from insolvency or financial
default of the owners, manager charterers or operators of the vessel’

is amended to read as follows:

In no case shall this insurance cover 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.

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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.
Insurers agree not to invoke the ‘insolvency/financial default’ exclusion contained elsewhere herein
where, although the owners, managers, charterers or operators of the vessel may be insolvent or in
financial default, it has not been proved that any loss or damage forming the claim hereunder arose
as the direct and inevitable result of such insolvency or financial default rather than as the result of
some independent and fortuitous happening unrelated thereto.
69. INTERRUPTION OF TRANSIT OF DAMAGED GOODS AND/OR MERCHANDISE AND/OR
COMMODITIES CLAUSE:
It is agreed that goods and/or merchandise and/or commodities taken out of the ordinary course of
transit upon the instructions of surveyor appointed by or on behalf of the insurers for the purposes
of establishment of loss or damage, shall be covered subject to original terms and conditions applying
to such shipment.
Items suffered by loss or damage – being separate as instructed by surveyor – are still covered under
this policy.

70. INSURABLE INTEREST CLAUSE: similar with ‘Contingency Interest’ clause

Notwithstanding anything contained herein to the contrary and for the purposes of any risk insured
hereunder, the Assured as defined herein will be treated as having continuous and un-interrupted
insurable interest:
(1) until such time as full payment has ultimately been received by the Assured and/or
(2) until such time that the terms of any purchase, sale or other agreement giving rise to the
insurable interest have been completed irrespective of any local law and/or legislation.
71. KNOWLEDGE OF THE ASSURED CLAUSE:
It is agreed that knowledge of the Assured shall in all circumstance be deemed to occur only when
it becomes known to the Assured’s Insurance Risk Manager.
Assured is deemed to know the circumstances only when they know, otherwise, is deemed that
the assured knows nothing.
This shall effect to some exclusions, such as: seaworthiness of the conveyances, packing method,
financial default / insolvency etc.

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72. LANDING AND WAREHOUSING CLAUSE: similar with clause 2 – additional forwarding costs
clause
Notwithstanding anything contained herein to the contrary, in the event of frustration, interruption,
or termination of the insured voyage, or similar events beyond the control of the Assured, Insurers
agree to pay all landing, warehousing, transshipping, forwarding and other expenses incurred by the
Assured to forward the goods and/or merchandise and/or commodities to the original or substituted
final destination should same be incurred by reason of a risk insured against.
Insurers will also pay any partial loss or damage to the shipment arising from any loading,
transshipment, forwarding or discharge at a port of distress.
Also to pay the full insured value of any package, piece or unit in the shipment which is totally lost in
loading, transshipment, forwarding or discharge.
It is agreed that nothing in this Clause shall be construed to extend the obligation of Insurers to pay
more than the limit(s) of liability set forth elsewhere in this policy.
73. LETTER OF CREDIT CLAUSE:
Notwithstanding the Conditions of this Contract, it is agreed that Certificates and/or Policies may be
issued hereunder to enable the Assured to comply with the insurance requirements of any Letter of
Credit and/or Sales Contract concerned.
It is however agreed that, where Letter of Credit insurance requirements refer to (1) coverage
wider than that provided by this insurance, the granting of such wider coverage is conditional upon
at an additional premium as determined by Insurers.
It is also agreed that regardless of the conditions on which any Certificates and/or Policies may be
issued pursuant to the foregoing, the Assured named herein shall continue to enjoy the full
protection of this Contract.
Where the (2) sum insured required by Letter of Credit and/or Sales Contract exceeds the stated
policy Basis of Valuation, cover is subject to an agreement by Insurers prior to the commencement of
transit.
Where the (2a) sum insured required by a Letter of Credit and/or Sales Contract is lower than the
stated policy Basis of Valuation, Insurers will settle claims in accordance with the policy.
However, any excess over and above such required value shall be payable to the Assured named
within this policy.
Ga mau kalah terussss polis the assured…………
74. LOCATION DEFINITION CLAUSE:
For the purposes of this Insurance, ‘Location’ is defined as any one building, warehouse, shed,
storage yard, tank, cavern, dock, stockpile, wharf, pier or bulkhead.
75. METALS CLEANING CHARGES CLAUSE:
In respect of the operation of an insured peril affecting the subject matter insured, Insurers hereby
agree (1) to pay cleaning costs and other costs directly associated with the cleaning process plus, where
incurred, (2) any transportation costs incurred by the Assured:

(i) Subject matter insured on Warrant prior to loss:

To return the affected Insured Interest to a condition which would conform with the
standards of product cleanliness of the LME sufficiently enough to enable the Insured
Interest to be placed back on Warrant and further be accepted in such a condition by the
Warehouse keeper.
(ii) Subject matter insured not on Warrant prior to loss:

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To return the affected subject matter to a condition equitable to that which existed prior
to loss.
It is agreed that the Assured are to liaise with Insurers before incurring such costs as described
above.
76. MISAPPROPRIATION INCLUSION CLAUSE:
Subject to a Limit of Liability of USD75,000,000 (way too big) any one loss and in the annual
aggregate.
It is understood and agreed that loss damage or expense reasonably attributable to Misappropriation
is always covered hereunder, and that for the purposes of this Contract of Insurance, and without
limitation to any legal definition, Misappropriation shall be defined as follows:
Misappropriation shall in this Contract of Insurance be deemed to mean the unauthorized conversion
use release or disposal of the subject-matter insured (pelanggaran amanah) at or from a warehouse or
other place of storage whether on or offshore by or with the knowledge of the bailee or of any
other person or entity including their officers and employees to whom the subject-matter insured
has been entrusted. Exclusion Clause 4.1 & 4.7 atau 4.8 di ICC C dan B (Malicious Damage, menjadi
tidak berlaku

77. NOTICE OF LOSS CLAUSE:

Loss or damage which may become a claim under this Insurance shall be advised to Insurers as soon
as practicable after it becomes known to the Assured’s Insurance Risk Manager.
Failure of the Assured to report said loss or damage within a reasonable time shall not invalidate
any claims under this insurance.
So, what’s the purpose of this clause?????
78. ON DECK SHIPMENTS CLAUSE:
Shipments on deck with an under deck bill of lading are insured subject to cover terms and conditions
including jettison, washing and loss overboard.
Possibility of having loss of or damage to the cargo is increase
79. OTHER INSURANCE CLAUSE:
Notwithstanding that a third party may have arranged insurance covering the Assured’s goods
and/or merchandise and/or commodities with or without the Assured’s instructions to so insure, at
the sole option of the Assured, the Assured may deem this Policy to be primary insurance with
full rights of subrogation against any such other insurance to be maintained.
In no case shall this insurance contribute in double insurance.

80. PIPELINE CLAUSE:

This insurance is also to cover loss of and/or damage to the interest insured, whatsoever and
irrespective of percentage, in consequence of (1) explosion of or defects and/or failures to tanks,
pipelines, taps (kran) , connections etc. as well as during transit and during loading, discharge,
pumping etc.,

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as well as loss of and/or damage to the interests insured as a consequence of (2) wrong or mistakenly
opening or closing of taps, or by carrying out wrong connections and/or by breakage of tubes
connection pipelines etc.

81. PROCESS CLAUSE: quite close with we call a STP (Stock-Through-Put) policy
This Insurance remains in full force whilst the subject matter insured is under any process but
notwithstanding anything to the contrary contained herein,
it is understood and agreed that coverage provided does not insure against loss, damage, claim or
expense caused by or resulting from mixing, blending, refining, re gasification or preparation; when
such mixing, blending, refining, re gasification or preparation is physically performed by the Assured.
Notwithstanding the foregoing, loss, damage and/or claims arising through fire or heating of cargo
shall be recoverable from the Company even when caused by inherent vice or spontaneous
combustion.

82. R.A.C.E.

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Institute Radioactive Contamination, Chemical, Biological, Bio Chemical and Electromagnetic

Weapons Exclusion Clause CL370 dated 10/11/03, as attached.
RADIOACTIVE CONTAMINATION, CHEMICAL, BIOLOGICAL, BIO-CHEMICAL AND
ELECTROMAGNETIC WEAPONS EXCLUSION CLAUSE PLUS (U.S.A. ENDORSEMENT AMENDED)
This insurance is subject to the Institute Radioactive Contamination, Chemical, Biological, Bio-
Chemical and Electromagnetic Weapons Exclusion Clause CL370 dated 10/11/03 provided that
If fire is an insured peril
and
Where the subject matter insured or, in the case of a reinsurance, the subject matter insured by the
original insurance, is within the U.S.A., its islands, onshore territories or possessions.
and
a fire arises directly or indirectly from one or more of the causes detailed in Sub-Clauses 1.1, 1.2 and 1.4
of the Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic
Weapons Exclusion Clause CL370 dated 10/11/03.
any loss or damage arising directly from that fire shall, subject to the provisions of this insurance, be
covered, EXCLUDING however any loss damage liability or expense caused by nuclear reaction
nuclear radiation or radioactive contamination arising directly or indirectly from that fire.
83. REPACKING COSTS CLAUSE:
It is agreed that, in the event of the original shipping packages arriving at the final destination in a
visibly damaged condition arising from a peril insured against, the costs of replacing such packages
shall be for the account of Insurers in those instances where it is an established custom of the
Assured’s and/or consignee’s trade to deliver the goods and/or merchandise and/or commodities to
the final customer’s premises in the original shipping packages.
Cargo is household goods – packing damaged – cost of repacking prior goods sell to the customer –
borne by the Insurer
84. REPLACEMENTS BY AIR CLAUSE: similar clause 3 – airfreight replacement costs
It is agreed where there is loss or damage which is the subject of a claim hereunder and the Assured
consider it necessary to forward replacements by air, Insurers will pay the extra costs so involved,
notwithstanding that the original consignment was not despatch by air.
85. REFUSED OR RETURNED SHIPMENT(S) CLAUSE: same as clause 38 above
This insurance to cover all shipments, subject to the original insuring conditions, which may be (1)
refused at time of delivery and (2) returned by the consignee and/or consignees, (3) while awaiting
shipment or reshipment and (4) until received by the Assured or (5) otherwise disposed of.

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Without limitation to coverage otherwise provided for herein the following perils clause is
incorporated herein:
Touching the adventures and perils which the Insurers are contented to bear and do take upon
themselves in this voyage, they are of the seas and inland waters, men-of-war, fire, enemies, pirates,
rovers, thieves, jettison, letters of mart and countermart, surprisals, takings at sea, arrests, restraints
and detainments of all Kings, Princes and People of what nation, condition or quality so ever,
barratry of master and mariners, and of all other like perils, losses or misfortunes that have or shall
have come to the hurt, detriment or damage of the said goods and/or merchandise and/or
commodities and ship, or any part thereof.

86. SHIPMENTS IN CONTAINERS CLAUSE: what’ the purpose of this clause?

Shipments in containers and/or vans and/or trailers and/or lighters and/or roll on/roll off
shipments are insured subject to cover terms and conditions including jettison, washing and loss
overboard.
Shipments on deck not mentioned above are covered at rates to be agreed by the leading Insurer(s).
87. SHIPMENTS PER CONTAINERS AND/OR TRAILERS SERVICE CLAUSE:
Applying to full Containers and/or full Trailers – agreed to accept shipper’s and/or consignor’s
and/or Assured’s load and count.
88. SHIPPING EXPENSE CLAUSE: similar with additional forwarding cost clause
When the subject matter insured is not delivered to the destination contemplated due to
circumstances beyond the control of the Assured, this insurance is also to pay any charges incidental
to shipping which have been or may be incurred by the Assured. Subject always to cover conditions,
this insurance shall not be divulged (di sharing) to third parties nor deemed to constitute double
insurance. The Assured is to subrogate all rights against third parties to Insurers.
89. SORTING CHARGES CLAUSE: similar with clause 43
It is agreed that, in the event of the Assured and/or consignee complying with the surveyor’s
instructions to separate shipping packages showing signs of external damage from the sound packages
to ascertain possible loss arising from a peril insured against, such expenses as approved by the
surveyor shall be for the account of Insurers even though a claim may not subsequently result
hereunder.
90. TRANSLATION OF CLAIMS DOCUMENTATION CLAUSE:
Where documents necessary for the collection of a claim hereunder are submitted in a language
other than English, XYZ are authorized to secure translations of such documents as Insurers consider
essential and shall be deemed to have been instructed by Insurers hereunder to do so. Costs for such
translations shall be deemed to be for Insurers account.
91. SECOND HAND REPLACEMENT CLAUSE
In the event of loss of or damage to any part or parts of an insured machine caused by a peril covered
by this insurance,
the amount recoverable hereunder shall not exceed such proportion of the cost of replacement or
repair of such part or parts, as the insured value bears to the value of a new machine (on the date of
attachment of cover hereunder in respect of the insured machine), plus additional charges (including
duty, if applicable) for forwarding and refitting the new part or parts, if incurred.
Example:
Insured value: USD 100,000
New price: USD 125,000

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Partial loss / cost of replace or repair: USD 10,000

Claim payable: (100,000 / 125,000) x 10,000 Plus additional charges (including duty, if applicable)
for forwarding and refitting the new part or parts, if incurred.

Provided always that in no case shall the liability of Underwriters exceed the insured value of the
complete machine.
92. UNEXPLAINED LOSS CLAUSE
It is agreed that in respect of consignments shipped in containers or curtain sided trailers or fully
vehicle loads, claims in respect of theft, shortage or non-delivery of a whole or part of a consignment
will not be invalidated by the fact that the seal(s) appear intact and that such claims will be settled
in full on production of loading and discharge tally sheets.
93. VERMIN CLAUSE:
This insurance covers damage directly caused by rats or vermin to the subject matter insured.
94. WAIVER OF SURVEY CLAUSE:
Insurers agree to waive surveys in respect of claims, expected, not to exceed USD15,000 net of any
deductible which may appear herein (or equivalent in other currencies), such claims to be accepted
by Insurer(s) on presentation of the Assured’s statement or debit note only.

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