TAB-WCA Brochure 2004-05-24

2004-05-24

Mike Miller: +1.478.825.5566 x150 [email protected] 2

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((AAVVEERRAAGGEE SSAAVVIINNGGSS 2255%% FFRROOMM NNOORRMMAALL RRAATTEESS))

- OCEAN MARINE CARGO - ERRORS & OMISSIONS - CARGO LEGAL LIABILITY - - SURETY BONDS - HULL - SPECIAL RISKS -

The STANDARD by which internet-based Ocean Marine Cargo Coverage is measured

5 Steps + 2 Minutes = allcovered!

From Beginning to Bound, Coverage takes less than 2 minutes!

Simple Type in a few lines of information in a 16-line form.

Quick Get an Instant Rate Quote & Instant Cover.

Innovative

q Save time, money, space and manpower q Issuing Certificates takes less than 2 minutes q Less than 2 minutes for :

o All Billing o All Reporting

q NO Monthly Reports!

Secure This insurance is backed 100% by certain syndicates at Lloyd’s, the world’s leading Marine Insurance market.

When you click “I Accept” for cargo coverage 3 Things Happen:

1: You receive an instant Email notice confirming the information you entered, the certificate number, and the quoted cost of coverage.

2: Your account is billed. You receive a monthly detailed, itemized statement via email.

3: A Certificate of Insurance appears instantly on your web browser’s screen. This Certificate is complete with all details, including its own unique number, watermark and signature. Print the Certificate send to your client. Otherwise, the system is paperless. Underwriters review each and every certificate so you can be secure in your cover.

Your rates will be based on the individual history of your company. Rates are subject to change.

P.O. Box 1439 – 304 MLK Jr Dr – Fort Valley, GA 31030 USA Voice: +1.478.825.5566 – EFax: +1.419.715.4723 – www.allcovered.net

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“I can categorically state that in eighteen years in the industry, I have never come across anyone as dedicated, industrious and as hard working as Mike is for his customers. In this day and age you are lucky to find someone like him to assist you.” Underwriter in London

“Mike, the service you give is the best we have ever received. Your rates are good. You are always offering ideas to help us grow. We recommend you to everyone we know.” --- Client in Asia

T R Y

U S

INFORMATION TO HELP YOU GROW & PROTECT BUSINESS: A special page for you offering step-by-step instructions for problems, marketing & risk management tools, reference materials, news links and more: http://www.allcovered.net

TRAINING & HELP: We offer clients online Training Modules to help you keep your staff current on the latest techniques to improve sales & service… and cut your risk exposures. www.allcovered.net

H E L P

INSTANT RATE QUOTES: You need never worry about calculating the correct premium again. The system calculates premium instantly as you complete the Certificate Request form.

INSTANT COVERAGE & CERTIFICATES: Immediate coverage for all qualified shipments after your initial application approval. Five steps. Two minutes. Allcovered!

INSTANT HELP: Throughout the software system by each field you will find a “?”. Click the “?” to find answers on how to complete that field.

F A S T

LLOYD’S SECURITY: We now work with Lloyd’s syndicates through a London underwriting agency. That means more security for you, faster claims processing, and better service.

FAIR ASSIGNMENT OF COSTS & RISKS: Our automated rating matrix allows us to assign insurance premium rates appropriate to the risk. No longer does someone shipping General Merchandise subsidize the losses of other shippers with more theft-prone cargo.

ASSIGNED SURVEYOR: Our system automatically assigns a Surveyor to your Certificate, but you may use any Lloyd’s Survey Agent.

F A I R

ACCOUNT ONLINE 24-7-365: You may review and print your Certificates, Invoices, or Special Projects anytime from anywhere you can access the Internet.

ONLINE INSTANT HELP: We offer instant online assistance. You can use any of four chat programs so you can “see” the answers to your questions. Details at: http://www.allcovered.net

2 4 - 7

AAllllccoovveerreedd..nneett WWee hhaavvee llooggiissttiiccss aallllccoovveerreedd!! 2004-05-24

PAGE

INSURANCE

Lloyd’s Security - Rate Calculations 3 Country Classifications 4 Rates – Full Container 6 Rates – Less Than Container / Breakbulk 7

Questions & Answers What Does It Cost? – What If You Need Something Special? What Is Covered? – How Long Does It Take? What If I Am Not Sure What To Enter? – What Is the “Bad Side?”

8

Certificate Request Form 9 Certificate Request Pre-Binding Check Screen 10 Certificate of Insurance 11 Handling Letters of Credit 12

Standard & Special Conditions of Insurance 13

REFERENCE MATERIALS

Incoterms 2000 17 ICC Cargo Clauses “A” 20 ICC Cargo Clauses “B” 22 ICC Cargo Clauses “C” 24 ICC Cargo Clauses “Strikes” 26

ICC Cargo Clauses “War” 28

TRAINING

Logistics Guide to Insurance History – Your Rights & Obligations – Terms You Must Know - What Coverages Do & Do Not Cover – Handling Claims – Claims Legal Obligations

30

Packing Questions & Answers 37

Cargo Insurance Application Form 40

2004-05-24

NOTE: Material in this brochure is for informational purposes. All relevant and applicable information for coverages is printed in the policies, or, in the case of the Internet-based Cargo

cover, is available at the Internet site. These take precedence over the content of this brochure. It is subject to change.

P.O. Box 1439 – Fort Valley, GA 31030 USA – Voice: 478.825.5566 – EFax: 419.715.4723


SECURITY: Insurance under this system is 100% underwritten by certain underwriters at Lloyd’s. LLOYD’S

RATE CALCULATIONS:

For purposes of rate calculations we have divided the world into four groupings of nations, depending on loss history and calculations of risk. This normally cuts your overall premium.

This is much more fair. If you are shipping to a safe area you are not subsidizing those who ship to areas of higher risk.

Low-Risk Pays Less High Risk Pays More The Table of Country Rankings is on the following two pages, and available online at: http://www.acisforwarders.com It is subject to change without notice as conditions warrant.

Category 1: Mainly U.S.A./Europe/Australasia and China, Hong Kong, Japan, South Korea, Singapore and Taiwan

Category 2 & 3: Mainly Middle East/India Sub-Continent/South America/Central America/South Africa/Egypt/Morocco and Far East Countries (other than as contained in Category 1. above).

Category 4: Mainly Africa/Former Soviet Union. Risks usually beginning and/or ceasing absolutely at the port or airport of discharge unless a specific waiver has been granted for each shipment by Underwriters.

Important: Please check regularly with directory to clarify rating number and rates.

Rates are calculated automatically by the system, but for reference, there are two rate Schedules on the following pages:

Rating Schedule One: Full Container Load Shipments (FCL) Rating Schedule Two: Less than Container Load Shipments (LCL) or Breakbulk

Rates are calculated automatically following this grid:

Example: If you are shipping to/from a country in Category 1 to/from a country in Category 4, your Rate Classification would be “D.” If you are shipping to/from a country in Category 2 to/from a country in Category 1, your Rate Classification would be “B.”


- Revised 2004-05-24 – Subject to Change Without Notice As Conditions Warrant –

- 1 - - 2 - - 3 - - 4 - Andorra Albania Argentina Algeria * Australia Anguilla Armenia * Angola * Austria Antigua & Barbuda Azerbaijan * Benin *

Bahamas Aruba Brazil Botsw ana * Belgium Bahrain Chile Burundi * Bermuda Bangladesh Colombia Cambodia

British Virgin Islands Belarus Croatia Cameroon * Bulgaria Belize Estonia Cape Verde * Canada Bhutan Georgia * Central African Republic * China Bolivia Kazakhstan * Chad *

Cyprus Bosnia & Herzegovina Kyrgyzstan * Comoros * Denmark Brunei Latvia Congo *

Falklands (Islas Malvinas Burma (Myanmar) Gaza Strip Djibouti * Faroe Islands Cayman Islands Indonesia (Excluding Java) Equatorial Guinea *

Finland Christmas Island Guatemala Ethiopia France Clipperton Island Java Gabon *

Germany Cocos (Keeling) Islands Lebanon Ghana * Gibraltar Cook Islands Mauritius * Guinea * Greece Costa Rica Mexico Guinea-Bisseau *

Greenland Czech Republic Pakistan Ivory Coast * Guam Dominica Paraguay Juan de Nova Island *

Guernsey Dominican Republic South Africa Kenya * Holy See (Vatican) Ecuador Uruguay Liberia *

Hong Kong Egypt Uzbekistan * Libya * Hungary El Salvador Venezuela Lithuania * Iceland Fiji Yemen Madagascar * Ireland French Guiana Malawi *

Italy French Polynesia Mauritania * Jan Mayen French Southern Territories Mayotte *

Japan Grenada Moldova * Jersey Grenadines

* = To Port/Airport Only without prior Underwriter

approval Mozambique *

Korea-South Guadeloupe Namibia * Lichtenstein Guyana Niger * Luxembourg Haiti Nigeria *

Malta Heard & McDonald Islands Russia * Man, Isle of Honduras

Coverage is Door-to-Door except countries

denoted by * Rwanda *

Monaco India Sao Tome & Principe * Netherlands Iran Senegal * New Zealand Israel & Palestinian Authority Sierra Leone *

Norway Jamaica Somalia * Paracel Islands Jordan Sudan *

Poland Kuwait Swaziland * Portugal Laos Tajikistan *

San Mateo Lesotho Tanzania * Singapore Macau The Gambia *

Spain Malaysia Togo * Spratley Islands Maldives Turkmenistan *

Sweden Mali Uganda * Switzerland Marshall Islands Ukraine *

Taiwan Martinique Western Sahara * Trinidad & Tobago Micronesia Zambia *

Turkey Mongolia Zimbabwe * United Kingdom Montserrat

Curious About a Country’s Location?

Check the Research/Reference

section of www.allcovered.net

for maps and details about doing business in the

world’s countries

- 1 - - 2 - - 3 - - 4 -


- Revised 2004-05-24 – Subject to Change Without Notice As Conditions Warrant –

- 1 - - 2 - - 3 - - 4 - United States Morocco Zambia *

US Virgin Islands Nepal Zimbabwe * Vatican (Holy See) Netherlands Antilles

New Caledonia Nicaragua Norfolk Islands Oman Palau Panama Papua New Guinea Paraguay

Peru Philippines Puerto Rico

Qatar Reunion Romania

Saint Helena Saint Kitts & Nevis

Saint Lucia Saint Vincent

Samoa Saudi Arabia

Serbia & Montenegro Seychelles Slovakia Slovenia

Soloman Islands South Georgia

South Sandwich Islands Sri Lanka

EXCLUDED COUNTRIES

Afghanistan

Cuba Iraq

North Korea Zaire

… and any other country on

which the United Nations has imposed trading

sanctions.

Coverage CAN BE placed for these countries, but only

with prior approval of Underwriters each and

every shipment.

Suriname Syria Thailand The Former Yugoslav

Republic of Macedonia

Tonga Tromelin Island Tunisia Turks & Caicos Islands United Arab Emirates Vanuatu Vietnam

EXCLUDED FROM WAR & STRIKES

COVER

Angola Armenia Burundi

Cambodia Colombia

Congo Ethiopia

Guinea-Bissau Indonesia (excluding Java)

Israel & Palestinian Authority

Ivory Coast Java

Liberia Nigeria

Pakistan Rwanda

Sierra Leone Somolia Sri Lanka Tajikistan

The Former Yugoslav Republic of Macedonia

Yemen Zimbabwe

…without prior approval of

Underwriters each and every shipment.

West Bank (Palestinian)

- 1 - - 2 - - 3 - - 4 -


OCEAN FULL CONTAINER LOADS (Air / Land 50% of Ocean) -- Rates Include Standard Conditions Plus ICC Clauses A, War & Strikes --

Rates expressed in Dollars per $100 Declared Value

Rates as of 10 December 2003, subject to change

CCAATTEEGGOORRIIEESS OOFF IINNTTEERREESSTT AALLLL RRAATTEESS IINNCCLLUUSSIIVVEE OOFF TTRRAANNSSHHIIPPMMEENNTT

EEXXAAMMPPLL EESS DDEEDDUUCCTT $$550000 oorr:: AA BB CC DD EE FF

11 APPROVED GOODS & GENERAL FREIGHT

Textiles; Machinery NOT prone to breakage; Non-Fragile Medical Equipment; Par ts & Spares; Hardware; Flat-Pack Furniture; Foodstuffs in cartons, tins, jars; Chemicals in drums, sacks or bags; Printed Matter; Pharmaceuticals; Dried Foodstuffs in bags

0.14 0.27 0.27 0.28 0.38 0.42

22 BRAND NAME GOODS, PRECISION INSTR.UMENTS, APPLIANCES, BEVERAGES

Household Appliances; Cosmetics; Sporting Goods; Leather goods; Domestic Electrical Appliances; Machinery Prone to Breakage such as copiers, medical testing equipment, Knitting Machinery, etc. Bottled Beverages/Liquors

1% TSI 0.22 0.33 0.35 0.38 0.44 0.48

33 DESKTOP COMPUTERS, COMPUTER PARTS, ETC.

Desktop computers and equipment (NOTE: Notebook computers, chips, etc. must be approved by Underwriters each shipment).

0.33 0.44 0.46 0.52 0.61 0.67

44 FRAGILE GOODS Domestic Glass; Chinaware; Earthenware in waterproof cartons or crates; Cathode Ray Tubes; Bulbs; Furniture with Glass

3% TSI 0.93 1.04 1.04 1.20 1.20 1.20

55 HOUSEHOLD GOODS & PERSONAL EFFECTS

Professionally Packed (Owner -Packed can be insured with Exclusions) 1% TSI 1.02 1.37 1.49 1.64 1.76 1.85

66 AUTOMOBILES & MOTORBIKES

Private & Personal Motor Vehicles 1% TSI 0.30 0.55 0.57 0.70 0.93 1.10

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TTOO//FFRROOMM PPOORRTT//AAIIRRPPOORRTT OONNLLYY IINN CCOOUUNNTTRRIIEESS MMAARRKKEEDD WWIITTHH AA ** NNOOTT EE:: MMoobbiillee PPhhoonneess,, NNootteebbooookk CCoommppuutteerrss,, YYaacchhttss,, FFrroozzeenn FFooooddss//MMeeaattss,, PPeerriisshhaabblleess && OOtthheerr GGooooddss MMaayy BBee AAggrreeeedd UUppoonn RReeqquueesstt

RATES REFLECT AN AVERAGE 32% SAVINGS FOR WCA MEMBERS COMPARED TO NORMAL RATES

Institute Cargo Clauses ‘C’ rated at 50% of above

rates for all voyages

Sendings by Air or Land rated at 50% of above rates

Subject to a Minimum Premium per Certificate of

US$ 10.00

Interests not listed and Inter-Continental Land transits can easily be insured. Submit to

Underwriters using the Special Projects menu option of the site

Review the Standard Conditions & ICC Clauses wordings to be sure you understand coverage

A comparison of Clauses wordings is at www.allcovered.net - click “Cargo Clauses” link

Remember Incoterms determine ownership, Care, Custody & Control, and when insurance is applicable

Understand your Legal and Financial Rights & Responsibilities when you move or insure cargo See our “Logistics Guide to Insurance” at www.allcovered.net - click “Training” link


OCEAN LCL or BREAKBULK (Air / Land 50% of Ocean) -- Rates Include Standard Conditions Plus ICC Clauses A, War & Strikes --

Rates expressed in Dollars per $100 Declared Value

Rates as of 10 December 2003, subject to change

CCAATTEEGGOORRIIEESS OOFF IINNTTEERREESSTT AALLLL RRAATTEESS IINNCCLLUUSSIIVVEE OOFF TTRRAANNSSHHIIPPMMEENNTT

EEXXAAMMPPLL EESS DDEEDDUUCCTT $$550000 oorr:: AA BB CC DD EE FF

11 APPROVED GOODS & GENERAL FREI GHT

Textiles; Machinery NOT prone to breakage; Non-Fragile Medical Equipment; Parts & Spares; Hardware; Flat-Pack Furniture; Foodstuffs in cartons, tins, jars; Chemicals in drums, sacks or bags; Printed Matter; Pharmaceuticals; Dried Foodstuffs in bags

0.22 0.36 0.38 0.45 0.59 0.64

22 BRAND NAME GOODS, PRECISION INSTR.UMENTS, APPLIANCES, BEVERAGES

Household Appliances; Cosmetics; Sporting Goods; Leather goods; Domestic Electrical Appliances; Machinery Prone to Breakage such as copiers, medical testing equipment, Knitting Machinery, etc. Bottled Beverages/Liquors

1% TSI 0.33 0.49 0.55 0.59 0.67 0.70

33 DESKTOP COMPUTERS, COMPUTER PARTS, ETC.

Desktop computers and equipment (NOTE: Notebook computers, chips, etc. must be approved by Underwriters each shipment) .

0.53 0.72 0.79 0.90 1.05 1.13

44 FRAGILE GOODS Domestic Glass; Chinaware; Earthenware in waterproof cartons or crates; Cathode Ray Tubes; Bulbs; Furniture with Glass

3% TSI 1.58 1.58 1.59 1.79 1.87 1.87

55 HOUSEHOLD GOODS & PERSONAL EFFECTS

Professionally Packed (Owner -Packed can be insured with Exclusions) 1% TSI 1.59 1.87 1.86 2.01 2.17 2.34

66 AUTOMOBILES & MOTORBIKES

Private & Personal Motor Vehicles 1% TSI 0.47 1.07 1.22 1.27 1.47 1.66

TTSSII == TTOOTTAALL SSUUMM IINNSSUURREEDD DDOOOORR--TTOO--DDOOOORR WWIITTHHIINN//BBEETTWWEEEENN CCOOUUNNTTRRIIEESS EEXXCCEEPPTT TTHHOOSSEE MMAARRKKEEDD **

TTOO//FFRROOMM PPOORRTT//AAIIRRPPOORRTT OONNLLYY IINN CCOOUUNNTTRRIIEESS MMAARRKKEEDD WWIITTHH AA ** NNOOTT EE:: MMoobbiillee PPhhoonneess,, NNootteebbooookk CCoommppuutteerrss,, YYaacchhttss,, FFrroozzeenn FFooooddss//MMeeaattss,, PPeerriisshhaabblleess && OOtthheerr GGooooddss MMaayy BBee AAggrreeeedd UUppoonn RReeqquueesstt

RATES REFLECT AN AVERAGE 32% SAVINGS FOR WCA MEMBERS COMPARED TO NORMAL RATES

Institute Cargo Clauses ‘C’ rated at 50% of above

rates for all voyages

Sendings by Air or Land rated at 50% of above rates

Subject to a Minimum Premium per Certificate of

US$ 10.00

Interests not listed and Inter-Continental Land transits can easily be insured. Submit to

Underwriters using the Special Projects menu option of the site

Review the Standard Conditions & ICC Clauses wordings to be sure you understand coverage

A comparison of Clauses wordings is at www.allcovered.net - click “Cargo Clauses” link

Remember Incoterms determine ownership, Care, Custody & Control, and when insurance is applicable

Understand your Legal and Financial Rights & Responsibilities when you move or insure cargo See our “Logistics Guide to Insurance” at www.allcovered.net - click “Training” link


What does it cost to start?

q There are no up-front costs. No Minimum & No Deposit. q Pay only for what you use. q If we fail to serve you well, pay only for the insurance you have purchased and

you owe us nothing more.

Do I need any special software?

No! You need no special software. All you need is an Internet connection, you web browser, and Adobe Acrobat Reader software in order to view and print Certificates. Adobe Acrobat reader software is available free at: www.adobe.com

What if I need to insure something that does not meet your automatic categories?

While the system will automatically calculate a premium for most things you ship based on the “Interest,” you can always ask Underwriters to review the “Interest” and manually issue a premium. All “Special Project Request” means is that Underwriters manually review the risk and rate it. A normal Certificate Request issues a premium automatically. A Special Project premium is determined by underwriters and communicated to you in one working day. Your Special Project is assigned a number… creating a special “Category” just for you. You then log on and fill out a Certificate Request as always. Under the “Interests” pull down window you will find your Special Project number. Choose that Interest and continue as normal. All special wordings and rates will be activated by that Project number. We can cover anything with this system... whether it easily fits into one of our predetermined “Interest” categories or not.

How can In insure something after it has begun moving?

You can insure anything up to 21 days after “Sailing” (when shipment begins), but the Certificate will print with the words, “No Known Damage As of This Date,” meaning the insurance coverage began when you clicked “I Accept.”

When is coverage in place?

For purposes of insurance, the “Voyage” begins when you wish insurance to start. EXAMPLE: If you move goods from Denver via land to Charleston then Ocean to Rotterdam and Truck to Cologne, then for insurance, you enter “Voyage From” Denver and “Voyage To” Cologne. Coverage in this case is Door-to-Door subject to the Conditions of Insurance and Incoterms.

What does the insurance cover?

The insurance covers goods you move while they are under your Care, Custody, and Control subject to the Conditions of Insurance and Incoterms.

What are the exact insuring terms?

The insurance you purchase are covered by the wordings in: q Standard Conditions q Special Conditions if applicable for the goods you are moving q Applicable ICC Treaty Clause wordings

How long does it take to insure something?

Issuing insurance takes five steps and less than two minutes.

What if I am not sure what to enter in a field?

The system has an easy solution. By each field in all forms you will see a “?” Click the “?” and a pop-up window will give you instructions on exactly what to put in that field.

What is the “bad side?” There is one way this insurance program is different from traditional “Open Cover.” Insurance begins ONLY when you click “I Accept” during a Certificate Request. There is no insurance until you “Accept.”

How do I know the insurance was placed?

When you click “I Accept” three things happen: 1. You will receive an instant “Invoice” by email 2. Your account is billed. On the first each month you will receive an itemized

“Statement” outlining all outstanding charges and how to pay them. 3. A “Certificate of Insurance” like the one on page 11 appears on your browser

screen. If you wish a printed copy of the Certificate, click “Print,” otherwise, the system is paperless.


Five Steps – 2 minutes – allcovered!

From Beginning to Bound, Coverage takes less than 2 minutes!

(Complete step-by-step instructions with detailed screen shots are provided with your User-ID & Password)

11:: STEP ONE: Begin with a simple 16-line Certificate Request Form


22:: STEP TWO: Choose your state if needed and choose Surveyor

33:: STEP THREE: Review the information you entered – Check for accuracy on screen below and confirm the premium:

44:: STEP FOUR: If all is acceptable, click “I Agree,” and you’re covered!


55:: STEP FIVE: Print your certificate if your client wants one… … otherwise, the insurance process is paperless.

(You can always log in and print any certificate ever issued at a later time.)


Our Internet-based cargo insurance system is a wonderful tool for protecting most cargo shipments, but not for all. Several times in the past, banks or financial institutions have been unwilling to accept a Certificate of Insurance printed on a computer. Working with one of our clients, we developed the following system for solving the problem. We use the Internet site for almost all Certificates of Insurance… We have two (2) options for you in dealing with Letters of Credit. We still will not require monthly reporting.

OPTION ONE: Use Option One if the

company, bank, government entity requiring the Letter of Credit special

wording will accept certificates printed on your computer in your office…

1)- Log into your account as always 2)- Click on Certificate Request as always 3)- Fill out all the certificate request as you normally do, but ALSO 4)- In the window/field marked “Letter of Credit,” -- Enter the exact wordings for insurance as specified in the Letter of Credit documents. 5)- Email us to let us know you have issued the certificate with special wordings:

q EMAIL TO: [email protected]; [email protected]; [email protected]

q SUBJECT: LOC Online certificate q EMAIL BODY: Please review certificate number ____ as we

have entered special terms and conditions per LOC requirements.

\

OPTION TWO: Use Option Two if the

company, bank, government entity requires traditional multi-page paper certificates of insurance…

1)- Call us and request blank paper Certificates to be used for Letters of Credit only 2)- Fill out the Paper Certificate as the Letter of Credit requires. 3)- Log onto the Internet system and fill out a Certificate Request as you normally do with us. In the “Interests” window, type:

“This certificate serves as billing for paper certificate, #_____ issued for (name of assured) and faxed on (date) .” Then type in the Interest information as you always would. 4)- The online Certificate is how we will handle billing and reporting. 5)- Fax the front page of the Paper Certificate and a copy of the online certificate which represents it for billing purposes to: +1.419.715.4723 -- Your fax comes to us as an email attachment so we can share clean and legible copies with underwriters and brokers for their records. -- The insurance for the paper certificate will NOT be in effect until you: A: Issue the online certificate, and B: Fax a copy of the paper and online certificates to us.

This gives you the best of both worlds. Most all cargoes will be covered on the Internet system. For Letters of Credit you have the flexibility of old-fashioned paper certificates, yet you still will not have to worry about Monthly Reporting or additional paperwork. \

If you have suggestions on ways we can improve this, or any other service we offer, please never hesitate to give us a call. We will work with you to make our services the best for your needs.

www.allcovered.net We have logistics allcovered!


CLAUSE TERMS

BASIS OF VALUATION

It is agreed that the basis of valuation for the purpose of this Open Cover shall be the value declared for insurance, but in no case shall the valuation exceed CIF + 30% unless prior written consent of the Insurer is given. In the event of declaration after loss or arrival, the basis of valuation will be CIF + 10% only. Also to pay increased value by reason of Duty, Excise, Surcharge and/or Landing and similar charges, if incurred in anticipation of arrival and provided declared to and accepted by Insurers. The Insured agrees to take all reasonable steps to obtain a refund of such charges and return the net amount to Insurers.

INSURING TERMS

Institute Cargo Clauses (A) CL 252 dated 1.1.82 and/or Institute Cargo Clauses (Air) CL 259 dated 1.1.82 as applicable. Institute War Clauses (Cargo) CL 255 dated 1.1.82 and/or Institute War Clauses (Air Cargo) CL 258 dated 1.1.82 as applicable. Institute Strikes Clauses (Cargo) CL 256 dated 1.1.82 and/or Institute Strikes Clauses (Air Cargo) CL 260 dated 1.1.82 as applicable. Please note that cover in respect of War and Strikes is not automatic for all transits. For details, please refer to the Country Lists on this site: http://www.aciscargoinsurance.com

REPLACEMEN T CLAUSE Subject to the Institute Replacement Clause CL 161 dated 1.1.34 and/or the Secondhand Replacement Clause as below, as applicable.

SECONDHAND REPLACEMENT CLAUSE

In the event of a claim for loss of or damage to any part or parts of the interest insured, in consequence of a peril covered by the policy, the amount recoverable hereunder shall not exceed such proportion of the cost of replacement of the part or parts lost or damaged as the insured value bears to the value of a new machine plus additional charges 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 article.

INSTITUTE CLASSIFICATION This insurance is subject to the Institute Classification Clause CL 354 dated 1.1.2001 INSTITUTE CHEMICAL, BIOLOGICAL, BIO-CHEMICAL, ELECTROMAGNETIC WEAPONS AND CYBER ATTACK EXCLUSION CLAUSE – AMENDED

Notwithstanding any coverage for terrorism given under this policy, In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from 1.1 any chemical, biological, bio-chemical or electromagnetic weapon 1.2 the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, computer virus or process or any other electronic system.

INSTITUTE EXTENDED RADIOACTIVE CONTAMINATON EXCLUSION CLAUSE

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed to by or arising from 1.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel 1.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof 1.3 any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter 1.4 the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other simila r peaceful purposes.

NON CONTRIBUTION CLAUSE

This insurance does not cover any loss or damage which at the time of happening of such loss or damage is insured by or would but for the existence of this Policy, be insured by any other existing Policy or Policies except in respect of any excess beyond the amount which would have been payable under such other Policy or Policies had this Insurance not been effected.

UNPACKED UNPROTECTED ITEMS

Excluding Rust, Oxidisation, Discoloration, Wetting, Staining, Scratching, Bruising, Chipping, Denting, Marring and the Cost of Repainting as applicable.

ITEMS IN NON-WATERPROOF CRATES OR PACKAGING

Excluding Rust, Oxidisation, Discoloration, Wetting, Staining and the Cost of Repainting as applicable.

USED GOODS Unless otherwise agreed with Insurers prior to the commencement of transit, the Institute Cargo Clauses (A) or the Institute Cargo Clauses (Air) are deleted and replaced to the Institute Cargo Clauses (C). Subject also to the Secondhand Replacement Clause as above.

RECONDITIONED GOODS RECONDITIONED and / or REFURBISHED USED GOODS Warranted that the Interest insured is fully refurbished / reconditioned to a new standard. Excluding Rust, Oxidisation, Discoloration, Wetting, Staining, Scratching, Bruising Chipping, Denting, Marring and the Cost of Repainting as applicable unless caused by an Insured peril. Subject to the Secondhand Replacement Clause as above.

ELECTRICAL AND MECHANICAL DERANGEMENT

Excluding loss or damage due to mechanical, electrical or electronic breakdown or derangement unless caused by a peril insured against under the terms of this policy and there is evidence of an external damage.

PAIRS AND SETS CLAUSE Where any insured item consists of articles in a pair or set this policy is not to pay more than the value of any particular part or parts which may be lost without reference to any special value which such article or articles may have as part of such pair or set, nor more than a proportionate part of such pair or set.

PROCESS CLAUSE Excluding loss and/or damage to the subject-matter hereby insured caused by processing, errors in processing and/or as a direct result of being worked upon unless due to an external cause otherwise covered by this policy.

TEMPERATURE VARIATION

Excluding any loss, damage or change in the nature of the subject matter insured caused by variation in temperature unless caused by a peril insured under the terms of the Institute Cargo Clauses (B).

DRIED FOODSTUFFS IN BAGS & SACKS

Excluding Heating and Sweating Excluding Infestation arising from weevil, grub or web Excluding Rejection Risks Excluding any Natural loss in Weight Warranted shipped in ventilated container(s)

GENERAL AVERAGE

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 except those specifically excluded herefrom. 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. General Average deposits shall be payable on production of General Average deposit receipts.

INSOLVENCY AMENDMENTS CLAUSE

Exclusions 4.6 of the Institute Cargo Clause (A), Institute Cargo Clauses (B), Institute Cargo Clauses (C) and Exclusions 3.6 of the Institute War Clauses (Cargo) and the Institute Strikes Clauses (Cargo) are amended to read; "Loss or damage or expense caused by insolvency or financial default of the Owners, Ma nagers, Charters or Operators of the vessel where, at the time of loading of the subject-matter insured on board the vessel, the Insured is aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal completion of the voyage. This exclusion shall not apply where this insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject-matter insured in good faith under a binding contract". This amendment applies to all goods shipped on Conference Line Vessels.

LABELS CLAUSE In case of damage affecting labels, capsules or wrappers the Underwriters, if liable therefore under the terms of this Policy, shall not be liable for more than an amount sufficient to pay the cost of new labels, capsules or wrappers, and the cost of reconditioning the goods, but in no event shall the insurers be liable for more than the insured value of the damaged merchandise.


CLAUSE TERMS

CARGO I.S.M ENDORSEMENT

Applicable to shipments on board Ro-Ro passenger ferries. Applicable with effect from 1st July 1998 to shipments on board: (1) passenger vessels transporting more than twelve passengers, and (2) oil tankers, chemical tankers, gas car riers, bulk carriers and cargo high speed craft of 500 gt or more. Applicable with effect from 1st July 2002 to shipments on board all other cargo ships and mobile offshore drilling units of 500 gt or more. In no case shall this insurance cover loss, damage or expense where the subject matter insured is carried by a vessel that is not I.S.M. Code certified or whose owners or operators do not hold an I.S.M. Code Document of Compliance when, at the time of loading of the subject matter insured on board the vessel, the Assured were aware, or in the ordinary course of business should have been aware;- (a) Either that such vessel was not certified in accordance with the I.S.M. Code. (b) Or that a current Document of Compliance was not held by here owners or operators. as required under the SOLAS Convention 1974 as amended. 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.

COMPUTER MILLENNIUM EXCLUSION CLAUSE (CARGO)

In no case shall this insurance cover any loss, damage, expense or liability of whatever nature which might otherwise be recoverable under this insurance arising out of or in any way connected with, whether directly or indirectly, the use or operation of any computer, computer system, computer software, programme, or process or any electronic system where such a loss, damage, expense or liability arises, whether dir ectly or indirectly, as a consequence of (i) the date change to the year 2000 or any other date change and/or (ii) any change or modification of or to any such computer, computer system, computer software, programme or process or any electronic system in relation to any such date change.

CHANGE OF DESTINATION / DEVIATION / DELAY

In case of voluntary change of destination and/or deviation and/or delay within the Assured’s control, the insured goods are held covered hereunder subject to the Assured reporting, as soon as possible, all such events to Underwriters. In case of short shipment in whole or part by the vessel reported for insurance hereunder, Underwriters agree to hold the Assured covered against the risks insured hereunder until arrival at the final destination to which the goods are insured or until the goods are no longer at the risk of the Assured, whichever may first occur.

DECONSOLIDATION AND UNPACKING COVERAGE

It is hereby understood and agreed that this policy is extended to cover, subject to its terms and conditions, goods and/or merchandise which have been or will be covered under this policy for the import or export voyage owned by the Assured or held by the Assured in trust or otherwise held or sold, or on joint account with or belonging to others, and for which the Assured can be liable while temporarily customs or elsewhere while awaiting shipment consolidation, repacking and other preparations for export or entry, including storage pending commencement of transit to final insured destination, for a period of not exceeding 30 (thirty) days. Held covered beyond 30 (thirty) days at premiums to be agreed. This extension of coverage shall not apply to goods and/or merchandise for which a charge has been made by the Assured or his agent for temporary storage. The insurance afforded by this endorsement shall be excess insurance over any other valid and collectable insurance available to the insured.

RETURN SHIPMENTS CLAUSE

This Policy of insurance is extended to cover, at Policy terms and conditions, shipments of returned goods which have not been delivered to the final consignee and which have been continuously covered hereunder, provided such goods remain in their original approved overseas packing and the Assured warrants to report all such shipments as soon as practicable after they have knowledge of the refusal. Shipments returned to the Assured by the consignee shall be subject to the same terms, conditions and rate under which such shipments were insured under this Policy while in transit to such consignees. Returned merchandise other than as defined above is insured subject to the Institute Cargo Clauses (C) CL 254 dated 1.1.82 at rates to be agreed by Underwriters.

CRAFT CLAUSE Including transit by craft and/or lighter to and from the vessel. Each craft and/or lighter to be deemed a separate insurance. Also to cover any special or supplementary lighterage. The Assured are not to be prejudiced by any agreement exempting lightermen from liability .

ON DECK SHIPMENTS For the purpose of this Policy, "On Deck" shipments in containers, shall be considered as "Under Deck" shipments. All other shipments carried "On Deck" and subject to On Deck Bill of Lading are insured subject to Institute Cargo Clauses (C) CL 254 dated 1.1.82 conditions including Jettison and Washing Overboard or as separately agreed by Underwriters.

SUE AND LABOR CLAUSE

In case of any imminent or actual loss or misfortune, it shall be lawful and necessary to and for the Insured, his or their factors, servants and assigns, to sue, labour and travel for, in and about the defense, safeguard and recovery of the said goods and merchandise, or any part thereof, without prejudice to this insurance, to the charges whereof, Underwriters will contribute according to the rate and quantity of the sum hereby insured; nor shall the acts of the Insured or Underwriters, in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of abandonment.

CONTRACT (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE

The provisions of the Contracts (Rights of Third Parties) Act 1999 do not apply to this insurance or to any certificate(s) of insurance hereunder. Neither this nor any certific ates issued hereunder confer any benefits on any third parties. No third party may enforce any term of this insurance or of any certificate issued hereunder. This clause shall not affect the rights of the Assured (as assignee or otherwise) or the rights of any loss payee.

DELIBERATE DAMAGE POLUTION HAZARD CLAUSE

This insurance is also extended to cover, but only while the subject-matter insured is on board a waterborne conveyance, loss of or damage to said property directly caused by governmenta l 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 unde r the Policy (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 occurrence. This clause shall not increase the Limits of Liability provided for elsewhere herein.

OTHER INSURANCE In the event that the Assured shall also have placed specific insurance at any location covered hereunder, this insurance shall only be held for the excess amount of loss over that which shall be collectible from other insurance.

WAREHOUSING/FORWARDING CHARGES

Notwithstanding any average warranty contained herein, Underwriters agree to pay any landing, warehousing, forwarding or other expenses and/or particular charges should same be incurred, as well as any partial loss arising from transhipment. Also to pay the insured value of any package, piece or unit totally lost in loading, transhipment and/or discharge. Also to pay for any loss or damage to the interest insured which may be reasonably attributed to discharge of cargo at port of distress.

LETTERS OF CREDIT CLAUSE

Where the Assured 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 existing provisions of this contract wording or held covered at a premium to be agreed. Notwithstanding the above and irrespective of the Letter of Credit requirements the interest of the Assured named herein shall always be protected hereunder a gainst all the risks covered by this contract wording.

SOUTH AFRICA INLAND TRANSIT DEDUCTIBLE

Any transit within South Africa is subject to a 10% of shipment value deductible in respect of hijack losses.

COLOMBIA INLAND TRANSIT DEDUCTIBLE CLAUSE

Any transit within Columbia is subject to a 10% of shipment value deductible in respect of theft pilferage hijack or any attempt thereat, shortage or non delivery.


CLAUSE TERMS

CERTIFICATE CLAUSE

Notwithstanding the conditions of this contract, it is agreed that certificates and/or policies may be issued hereunder to the Assured to comply with the insurance requirements of any letter of credit and/or sales contract concerned, provided the cover required is not wider than that provided by the current contract wording. In the event that wider coverage is required, prior agreement of Underwriters is to be obtained at an additional premium to be agreed. If the conditions which appear on the certificate are wider than the conditions given by the wording or given by the Underwriters, the Assured remains liable for the difference between these conditions.

HELD COVERED It is necessary for the Insured or their Representatives or their Agents, when they become aware of an event which is held covered under this insurance, to give prompt notice to the Insurers via their representatives or agents.

SURVEY AND CLAIM SETTLEMENT

In the event of loss or damage which may involve a claim under this policy, immediate notice of such loss or damage should be given to Underwriters or the Surveyor named in the Certificate. When submitting a claim under this policy the following documents should be forwarded: 1. A copy of the Certificate of Insurance (or quote the Certificate number). 2. The Original or Copy shipping invoices, together with shipping specification and/or weight Notes. 3. The Original bill of landing and/or Contract of Carriage. 4. The Survey Report, or other documentary evidence to show the extent of the loss or damage. 5. The landing account and weight notes at final destination. 6. All correspondence exchanged with the Carriers and other parties regarding their liability for the loss or damage. FAILURE TO COMPLY WITH THESE INSTRUCTIONS MAY PREJUDICE ANY CLAIM UNDER THIS POLICY.

NO SURVEY CLAUSE No survey required on claims unlikely to exceed £1,000 or equivalent in any other currency.

LIABILITY OF CARRIERS BAILEES OR OTHER THIRD PARTIES

It is the duty of the Assured and their Agents, in all cases, to take such measures as may be reasonable for the purpose of averting or minimising a loss to ensure that all rights against Carriers, Bailees or other third parties are properly preserved and exercised. In particular, the Assured or their Agents are required:- 1. To claim immediately on the Carriers, Port Authorities or other Bailees for any missing package. 2. In no circumstances, except under written protest, to give clean receipts where goods are in doubtful condition. 3. When delivery is made by container, to ensure that the container and its seals are examined immediately by their responsible official. If the container is delivered damaged or with seals broken or missing or with seals other than stated in the shipping documents, to clause the delivery receipt accordingly and retain all defective or irregular seals for subsequent identification. 4. To apply immediately for survey by Carriers’ or other Bailees, Representatives if any loss or damage be apparent and claim on the Carriers or other Bailees for any actual loss or damage found at such survey. 5. To give notice in writing to the Carriers or other Bailees within three days of delivery if the loss or damage was not apparent at the time of taking delivery. Note: The Consignees or their agents are recommended to make themselves familiar with the regulations of the Port of Authorities at the port of discharge. NOTE: FURTHER CLAIMS INFORMATION & CLAIMS PROCEDURES CAN BE FOUND UNDER THE 'CLAIMS INFORMATION" SECTION OF www.aciscargoinsurance.com

SERVICE OF SUIT CLAUSE Ask Underwriters

MOTOR VEHICLE SPECIAL CONDITIONS

--- Excluding Vehicles shipped on deck other than in Containers This Insurance will be subject to the followi ng Institute Clauses appropriate to the mode of transit along with any other policy conditions: Institute Cargo Clauses (A) or (Air), Institute War Clauses (Cargo) or (Air Cargo) Institute Strikes Clauses (Cargo) or (Air Cargo) Institute Replacement Clause, Institute Classification Clause. In addition the clauses below are deemed to apply:

DURATION CLAUSE

This insurance attaches from the time the vehicle is handed over to the carrier or agent at the place named for the commencement of the transit, including where required a period not exceeding 15 days in compound whilst awaiting loading, continues during the ordinary course of transit and terminates either: i. when the vehicle is handed over to the Insured or his agent at the destination named, or ii. on delivery to a place of storage other than in the ordinary course of transit, or iii. on expiry of 10 days from the time the vehicle becomes available for collection by the Insured or his agent ...whichever shall first occur.

VALUATION & AVERAGE CLAUSE

The vehicle should be insured for it's full market value at destination including freight if required. In the event of the sum insured being less than sound market value of the vehicle at the time and place of loss, the Insured shall only be entitled to recover hereunder such proportion of the loss as the sum insured bears to the sound market value of the vehicle.

DEPRECIATION Underwriters liability is restricted to the reasonable cost of repair and no claim is to attach hereto for depreciation consequent thereon. In no case shall liability hereunder for such repairs exceed the sum insured in respect of the damaged vehicle.

RESPRAYING Respraying of vehicles is limited to damaged parts only.

EXCESS The Insured shall bear the first US$ 500 (or currency equivalent at the time of loss) or 1% of the sum insured whichever is the greater each & every claim.

EXCLUSIONS VEHICLES OVER 5 YEARS OF AGE &\OR VEHICLES WITH NO CERTIFICATE OF CONDITION *

Excluding the risks of scratching, denting, chipping, bruising, marring, staining, rust, oxidisation & discolouration. * Certificate of Condition is defined as : A document stating the condition of the vehicle at the time the vehicle enters the custody of the freight forwarder or steamship company noting all defects agreed by both the freight forwarder and the owner of the vehicle and signed at the same time.

MECHANICAL, ELECTRICAL DERANGEMENT

Excluding the risks of mechanical, electrical or electronic breakdown & \or derangement.

CLIMATIC CONDITIONS Excluding loss or damage arising from climatic or atmospheric conditions or extremes of temperature or freezing of coolant.

RUST, OXIDISATION & DISCOLOURATION

Excluding the risks of rust, oxidisation and discolouration unless caused by a peril insured under the terms of the Institute Cargo Clauses (C).

ACCESSORIES Excluding loss or damage to accessories & \or portable items unless declared prior to shipment

AUDIO EQUIPMENT Excluding theft & \or pilferage of audio equipment, including but not limited to radios, CD players, speakers and similar items unless stolen with the vehicle.

OWN POWER Excluding loss or damage whilst the insured vehicle is being driven under it's own power or whilst being towed, except whilst being loaded or unloaded from the carrying conveyance including containers.

THIRD PARTY LIABILITY Excluding damages, injury or liability to any third party absolutely.

MOTOR INSURANCE Excluding any claim recoverable under a policy of Motor Insurance.

CONFISCATION Excluding the risks of confiscation & seizure.


HOUSEHOLD GOODS & PERSONAL EFFECTS SPECIAL CONDITIONS

This Insurance will be subject to the following Institute Clauses appropriate to the mode of transit along with any other policy conditions: Institute Cargo Clauses (A) or (Air), Institute War Clauses (Cargo) or (Air Cargo) Institute Strikes Clauses (Cargo) or (Air Cargo) Institute Replacement Clause, Institute Classification Clause. In addition the clauses below are deemed to apply:

DURATION CLAUSE

This insurance attaches from the time the insured property leaves the Insured's residence or place of storage at the place named for the commencement of the transit, including where applicable whilst at packers premises being packed or awaiting shipment for a period not exceeding 30 days and terminates either: i . on delivery to the Insured's premises at the destination named, or ii. on delivery to a place of storage other than in the ordinary course of transit, or iii. on expiry of : 60 days after completio n of discharge overside from the overseas vessel at the final port of discharge or 30 days after unloading from the aircraft at the final place of discharge, ...whichever shall first occur.

AVERAGE CLAUSE In the event of the sum insured being less than the total value at the time and place of loss of the insured property, the Insured shall only be entitled to recover hereunder such proportion of the loss as the sum insured bears to the total value of the insured property.

DEPRECIATION Underwriters liability is restricted to the reasonable cost of repair and no claim is to attach hereto for depreciation consequent thereon. In no case shall liability hereunder for such repairs exceed the sum insured in respect of the damaged article.

REPLACEMENT CLAUSE FOR SECOND HAND GOODS

In the event of a claim arising under the Institute Replacement Clause, this insurance is only to pay such proportion as the insured value bears to the cost of the goods when new based on present values.

NON CONTRIBUT ION CLAUSE

This insurance does not cover any loss or damage which at the time of happening of such loss or damage is insured by or would but for the existence of this Policy, be insured by any other existing Policy or Policies except in respect of any excess beyond the amount which would have been payable under such other Policy or Policies had this Insurance not been effected.

PAIRS AND SETS CLAUSE Where an insured item consists of articles in a pair or set, the Insured shall not be entitled to recover more than the proportionate sum insured in respect of the particular part or parts which may be lost or damaged.

FRAGILES & ANTIQUES WARRANTY

Warranted that the maximum value of fragiles &\or antiques does not exceed 15% of the overall consignment value unless specifically agreed with insurers prior to the commencement of transit.

EXCESS The Insured shall bear the first 1% of consignment value or deductible as stipulated within the Certificate of Marine Insurance if greater each & every claim.

EXCLUSIONS INVENTORY REQUIREMENTS

Excluding claims for missing items unless a full valued inventory is completed and signed by the owners of the goods prior to the commencement of transit. Warranted that any item valued above $1,000 or currency equivalent is listed.

OWNER PACKED EFFECTS

Excluding breakage, scratching, denting, chipping, bruising, bending, marring, staining and tearing of owner packed effects, including trunks, suitcases and the like.

MECHANICAL, ELECTRICAL DERANGEMENT

Excluding loss or damage due to mechanical, electrical or electronic breakdown &\or derangement unless there is evidence of external damage to the insured item or its packing.

MOTH, VERMIN, WEAR & TEAR

Excluding loss or damage due to moth, vermin , mildew, mould, rust, discoloration, inherent vice, wear, tear and gradual deterioration.

CLIMATIC CONDITIONS Excluding loss or damage by climatic or atmospheric conditions or extremes of temperature unless such claim is recoverable under the terms of the Institute Cargo Clauses (C). No claim to attach hereto for damage to strings, reeds &\or drumheads in respect of musical instruments.

CONFISCATION Excluding the risks of confiscation & seizure.

EXCLUDED GOODS

Excluding loss of or damage to cash, bank notes, cheques, travellers cheques, money orders, postal orders, national saving certificates, premium bonds, stamps, deeds, tickets, passports, manuscripts, lottery tickets or documents of any description, medals, coins, bonds, securities, jewellery, watches, trinkets, personal ornaments, precious stones & metals, furs and any other article of similar description. Also excluding any accompanied luggage or any article used or worn during the course of the transit.

PERISHABLE GOODS, LIQUIDS

Excluding loss of or damage caused by perishable goods, acids, paints, aerosols, medicines and all liquids.


Incoterms are an international standard of wording for sales contracts. Use of these short terms defines specifically where the responsibility for the movement of goods lies, and where the ownership of goods changes. Ocean Marine Cargo insurance is governed by the ownership of the goods. When the ownership changes, sometimes the insurance begins or ceases unless prior arrangements have been made, as the Claimant must have an insurable interest. For basic information, go to: www.incoterms.org. We strongly recommend you purchase ICC No. 560, Incoterms 2000, or, ICC No. 620, ICC Guide to Incoterms 2000, which may be ordered online from ICC Publishing (www.iccbooks.com). Use Incoterms correctly. Consult the official ICC texts. This is a brief guide only. We accept no responsibility for errors.

EXW Ex Works (…named place) FCA Free Carrier (…named place) CPT Carriage Paid To (…named place of destination) CIP Carriage & Insurance Paid to (…named place of destination) DAF Delivered At Frontier (…named place of destination) DDU Delivered Duty Unpaid (…named place of destination)

Suitable for Any Mode of Transport including

Multimodal

DDP Delivered Duty Paid (…named place of destination)

Suitable for Air Transport FCA Free Carrier (…named place)

Suitable for Rail Transport FCA Free Carrier (…named place)

FAS Free Alongside Ship (…named port of shipment) FOB Free On Board (…named port of shipment) CFR Cost and Freight (…named port of destination) CIF Cost, Insurance and Freight (…named port of destination) DES Delivered Ex Ship (…named port of destination)

Suitable for Sea & Inland Waterway Transport

DEQ Delivered Ex Quay (…named port of destination)

GROUP E: Departure term Where the seller makes the goods available to the buyer at the seller's own premises.

EXW - EX WORKS (... named place) "Ex Works" means that the seller delivers when he places the goods at the disposal of the buyer at the seller's premises or

another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

q This term thus represents the minimum obligation for the seller. q The buyer must bear all costs and risks involved in taking the goods from the seller's premises. q This term should not be used when the buyer cannot carry out directly or indirectly the export formalities. In

such circumstances, the FCA term should be used provided the seller agrees that he will load at his cost and risk.

Critical Points: 1: Carriage to be arranged by the buyer. 2: Risk transfer from seller to buyer when the goods are at the disposal of the buyer. 3: Cost transfer from seller to buyer when the goods are at the disposal of the buyer.

GROUP F: Shipment terms – Main carriage not paid by the seller Where the seller is called on to deliver the goods to a carrier named by the buyer, (FCA, FAS and FOB). These are shipment contracts with the shipment point named, and carriage unpaid by the seller.

FCA - FREE CARRIER (... named place) "Free Carrier" means the seller delivers the goods cleared for export to the carrier nominated by the buyer at the named place. It

should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other place, the seller is not responsible for unloading.

q This term may be used for any mode of transport, including multimodal transport.

"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport by rail, road, sea, air, inland waterway or by a combination of such modes. If the buyer nominates a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation to deliver the goods when they are in the custody of that person.

Critical Points: 1: Carriage to be arranged by the buyer or by the seller on the buyer's behalf. 2: Risk transfer from seller to buyer when the goods have been delivered to the carrier at the names place. 3: Cost transfer from seller to buyer when the goods have been delivered to the carrier at the named place.


FAS - FREE ALONGSIDE SHIP (... named port of shipment) "Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This

means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export. THIS IS A REVERSAL FROM PREVIOUS INCOTERMS VERSIONS, WHICH REQUIRED THE BUYER TO ARRANGE FOR EXPORT CLEARANCE.

Critical Points: 1: Carriage to be arranged by the buyer. 2: Risk transfer from seller to buyer when goods have been placed alongside ship. 3: Cost transfer from seller to buyer when goods have been placed alongside ship.

FOB - FREE ON BOARD (... named port of shipment) "Free on Board" means the seller delivers when the goods have passed over the ship's rail at the named port of shipment. This means buyer has

to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. q This term can only be used for sea or inland waterway transport. q When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the FCA term is more

appropriate.

Critical Points: 1: Carriage to be arranged by the buyer. 2: Risk transfer from seller to buyer when goods pass the ship's rail 3: Cost transfer from seller to buyer when goods pass the ship's rail.

Group C: Shipment terms – Main carriage paid by the seller

CFR - COST AND FREIGHT (... named port of destination) "Cost and Freight" means the seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the costs and freight

necessary to bring goods to the named port of destination, BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. CFR requires seller to clear goods for export.

q This term can only be used for sea and inland waterway transport. q When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the CPT term is more

appropriate.

Critical Points: 1: Carriage to be arranged by the seller. 2: Risk transfer from seller to buyer when the goods pass the ship's rail. 3: Cost transfer at the port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

CIF - COST, INSURANCE AND FREIGHT (... named port of destination) "Cost, Insurance and Freight" means seller has the same obligations as under CFR but with the addition that he has to procure marine

insurance against buyer's risk of loss of or damage to goods during the carriage. Seller contracts for insurance and pays the insurance premium.

q The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. q The CIF term requires the seller to clear the goods for export. q This term can only be used for sea and inland waterway transport. q When the ship's rail serves no practical purposes such as in the case of roll-on/ roll-off or container traffic, the CIP term is more

appropriate.

Critical Points: 1: Carriage and insurance arranged by the seller. 2: Risk transfer from seller to buyer when goods pass the ship's rail. 3: Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

CPT - CARRIAGE PAID TO (... named place of destination) "Carriage paid to... " means the seller delivers the goods to the carrier nominated by him but the seller must, in addition, pay the cost of

carriage necessary to bring the goods to the named destination. This means the buyer bears all risks and any other costs occurring after the goods have been delivered. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of' transport, by rail, road, sea, air, inland waterway or by a combination of such modes.

q If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods are delivered to the first carrier.

q The CPT term requires the seller to clear the goods for export. q This term may be used for any mode of transport including multimodal transport.

Critical Points: 1: Carriage to be arranged by the seller 2: Risk transfer from seller to buyer when the goods have been delivered to the carrier. 3: Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage.

CIP - CARRIAGE AND INSURANCE PAID TO (... named place of destination) "Carriage and insurance paid to..." means the seller has the same obligations as under CPT but wi th the addition that the seller has to

procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

q Buyer should note, under the CIP term the seller is only required to obtain insurance on minimum coverage. q The CIP term requires the seller to clear the goods for export. q This term may be used for any mode of transport including multimodal transport.

Critical Points: 1: Carriage and insurance to be arranged by the seller. 2: Risk transfer from seller to buyer when goods have been delivered to the carrier. 3: Cost transfer at the place of destination, the buyer paying such costs as are not for the seller's account under the contract of

carriage.


Group D: Arrival Terms Where the seller has to bear all costs and risk needed to bring the goods to the country of destination.

DAF - DELIVERED AT FRONTIER (... named place) "Delivered at Frontier" means the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport,

not unloaded, cleared for export, but not cleared for import, at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.

q Term is primarily intended to be used when goods are carried by rail or road, but may be used for any mode.

Critical Points: 1: Carriage to be arranged by the seller. 2: Risk transfer from seller to buyer when goods have been delivered at the frontier. 3: Cost transfer from seller to buyer when the goods have been delivered at the frontier

DES - DELIVERED EX SHIP (... named port of destination) "Ex Ship" means the seller delivers when the goods have been placed at the disposal of the buyer on board the ship not cleared for import at the

named port of destination. q The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination. q This term can only be used for sea or inland waterway or multimodal transport on a vessel in the port of destination.

Critical Points: 1: Carriage to be arranged by the seller. 2: Risk transfer from seller to buyer when goods are placed at disposal of buyer on board the ship. 3: Cost transfer from seller to buyer when goods are placed at disposal of buyer on board the ship.

DEQ - DELIVERED EX QUAY (DUTY PAID) (... named port of destination) "Delivered Ex Quay (duty paid)" means that the seller delivers when the goods have been placed at the disposal of the buyer not cleared

for import on the quay (wharf) at the named port of destination. The seller has to bear all risks and costs of bringing the goods to the named port and discharging the goods on the quay. The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes, and other charges upon import. THIS IS A REVERSAL FROM PERVIOUS INCOTERMS VERSIONS, WHICH REQUIRED THE SELLER TO ARRANGE FOR IMPORT CLEARANCE.

q If the parties wish to include in the seller's obligations all or part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale

q This term may only be used when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay at the port of destination.

q If the parties wish the buyer to clear the goods for importation and pay the duty the words duty unpaid, should be used instead of "duty paid".

Critical Points: 1: Carriage to be arranged by seller. 2: Risk transfer from seller to buyer when goods are placed at the disposal of the buyer on the quay. 3: Cost transfer from seller to buyer when goods are placed at the disposal of the buyer on the quay.

DDU - DELIVERED DUTY UNPAID (... named place of destination) "Delivered Duty Unpaid" means the seller delivers the goods to the buyer not cleared for import, and not unloaded from any arriving means of

transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any duty (which term includes the responsibility and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination. Such duty must be born by the buyer as well as any costs and risks caused by his failure to clear the goods for import on time.

q If the parties wish the seller to carry out customs formalities and bear the costs and risks resulting therefrom, this has to be made clear by adding explicit wording to the effect in the contract of sale.

q This term may be used irrespective of the mode of transport.

Critical Points: 1: Carriage to be arranged by seller. 2: Risk transfer from seller to buyer when goods are placed at the disposal of buyer. 3: Cost transfer from seller to buyer when goods are placed at the disposal of buyer.

DDP - DELIVERED Duty PAID (... named place of destination) "Delivered Duty Paid" means the seller delivers the goods to the buy er cleared for import and not unloaded from any arriving means of

transport at the named place of destination. The seller has to bear all the risks and costs involved in bringing the goods thereto, including, where applicable, any duty (which term includes the responsibility and the risks of the carrying out of customs formalities and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.

q DDP represents the maximum obligation for the seller. q If parties wish the buyer to bear all risks and costs of import, the term DDU should be used. q This term may be used irrespective of the mode of transport.

Critical Points: 1: Carriage to be arranged by seller. 2: Risk transfer from seller to buyer when goods are placed at the disposal of the buyer. 3: Cost transfer from seller to buyer when goods are placed at the disposal of the buyer.

Incoterms are an international standard of wording for sales contracts. Use of these short terms defines specifically where the responsibility for the movement of goods lies, and where the ownership of goods changes. Ocean Marine Cargo insurance is governed by the ownership of the goods. When the ownership changes, sometimes the insurance begins or ceases unless prior arrangements have been made, as the Claimant must have an insurable interest. For basic information, go to: www.incoterms.org. We strongly recommend you purchase ICC No. 560, Incoterms 2000, or, ICC No. 620, ICC Guide to Incoterms 2000, which may be ordered online from ICC Publishing (www.iccbooks.com). Use Incoterms correctly. Consult the official ICC texts. This is a brief guide only. We accept no responsibility for errors.


RISKS COVERED 1. - Risks Clause 1 - This insurance covers all risks of loss of or damage to the subject-matter insured except as provided in Clauses 4, 5, 6 and 7

below.

2. - General Average Clause

2 - This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.

3. - "Both to Blame Collision" Clause

3 - This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment "Both to Blame Collision" Clause as is in respect of a loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS

4. - General Exclusion Clause

4. - In no case shall this insurance cover

4.1 loss, damage, or expense attributable to willful misconduct of the Assured

4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject- matter insured

4.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 4.3 "packing" shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)

4.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

4.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

4.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel

4.7 loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

5. - Unseaworthiness and Unfitness Exclusion Clause

5.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject- matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject- matter insured is loaded therein.

5.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject- matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

6. - War Exclusion Clause

6 In no case shall this insurance cover loss damage or expense caused by

6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

6.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat

6.3 derelict mines torpedoes bombs or other derelict weapons of war.

7. - Strikes Exclusion Clause

7. - In no case shall this insurance cover loss damage or expense

7.1 caused by strikers, locked- out workmen, or persons taking part in labour disturbances, riots or civil commotions

7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions

7.3 caused by any terrorist or any person acting from a political motive.

DURATION

8. - Transit Clause

8. - This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either

8.1.1 on delivery to the Consignees' or other final warehouse or place of storage at the destination named herein,

8.1.2 on delivery to any other warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either

8.1.2.1 for storage other than in the ordinary course of transit or

8.1.2.2 for allocation or distribution, or

8.1. on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge, whichever shall first occur.

8.2 If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination of this insurance, the goods are to be forwarded to a destination other than that to which they are insured hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend beyond the commencement of transit to such other destination.

8.3 This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.


9. - Termination of Contract of Carriage Clause

9 If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwr iters, either e§46

9.1 until the goods are sold and delivered at such port or place, or unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first occur, or

9.2 if the goods are forwarded within the said period of 60 days (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Clause 8 above.

10. - Change of Voyage Clause

10 Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.

CLAIMS

11. - Insurable Interest Clause

11.1 In order to recover under this insurance the Assured must have an insurable interest in the subject- matter insured at the time of the loss.

11.2 Subject to 11.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Underwriters were not.

12. - Forwarding Charges Clause

12 - Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject- matter to the destination to which it is insured hereunder. This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants.

13. - Constructive Total Loss Clause

13 - No claim for Constructive Total Loss shall be recoverable hereunder unless the subject- matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter to the destination to which it is insured would exceed its value on arrival.

14. - Increased Value Clause

14.1 If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.

14.2 Where this insurance is on Increased Value the following clause shall apply: The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the cargo by the Assured, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.

BENEFIT OF INSURANCE

15. - Not to Inure Clause

15. - This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES

16. - Duty of Assured Clause

16. - It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder

16.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss, and

16.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised and the Underwriters will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

17. - Waiver Clause 17. - Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject- matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY 18. - Reasonable Despatch Clause

18. - It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE 19. - English Law and Practice Clause

19. - This insurance is subject to English law and practice.

NOTE: It is necessary for the Assured when they become aware of an event which is "held covered" under this insurance to give prompt notice to the Underwriters and the right to such cover is dependent upon compliance with this obligation.


RISKS COVERED

1. - Risks Clause

1. This insurance covers, except as provided in Clauses 4, 5, 6 and 7 below:

1.1 loss of or damage to the subject-matter insured reasonably attributable to

1.1.1 fire or explosion

1.1.2 vessel or craft being stranded grounded sunk or capsized

1.1.3 overturning or derailment of land conveyance

1.1.4 collision or contact of vessel craft or conveyance with any external object other than water

1.1.5 discharge of cargo at a port of distress,

1.2 loss of or damage to the subject-matter insured caused by

1.2.1 general average sacrifice

1.2.2 jettison or washing overboard

1.2.3 entry of sea lake or river water into vessel craft hold conveyance container liftvan or place of storage,

total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft.


2. This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.


3 - This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment "Both to Blame Collision" Clause as is in respect of a loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS


4. - In no case shall this insurance cover

4.1 loss damage or expense attributable to wilful misconduct of the Assured

4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured





4.7 deliberate damage to or deliberate destruction of the subject-matter insured or any part thereof by the wrongful act of any person or persons



5.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein.

5.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.




6.2 capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat



7. - In no case shall this insurance cover loss damage or expense

7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions



DURATION

8. - Transit Clause

8. - This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either





8.1. on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge, whichever shall firs t occur.


8.3 This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.



9 If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either e§46

9.1 until the goods are sold and delivered at such port or place, or unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first occur, or



10 Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Under writers.

CLAIMS





12 - Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject- matter to the destination to which it is insured hereunder. This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants.


13 - No claim for Constructive Total Loss shall be recoverable hereunder unless the subject- matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter to the destination to which it is insured would exceed its value on arrival.





15. - Not to Inure Clause 15. - This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES


16. - It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder



17. - Waiver Clause 17. - Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject- matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY 18. - Reasonable Despatch Clause

18. - It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE 19. - English Law and Practice Clause

19. - This insurance is subject to English law and practice.

NOTE: It is necessary for the Assured when they become aware of an event which is "held covered" under this insurance to give prompt notice to the Underwriters and the right to such cover is dependent upon compliance with this obligation.


RISKS COVERED

1. - Risks Clause

1 This insurance covers, except as provided in Clauses 4, 5, 6 and 7 below,

l.1 loss of or damage to the subject-matter insured reasonably attributable to

1.1.1 fire or explosion

1.1.2 vessel or craft being stranded grounded sunk or capsized

1.1.3 overturning or derailment of land conveyance

1.1.4 collision or contact of vessel craft or conveyance with any external object other than water

1.1.5 discharge of cargo at a port of distress,

1.2 loss of or damage to the subject-matter insured caused by

1.2.1 general average sacrifice

1.2.2 jettison.


2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.


3 This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreightment "Both to Blame Collision" Clause as is in respect of a loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS


4 In no case shall this insurance cover


4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured





4.7 deliberate damage to or deliberate destruction of the subject-matter insured or any part thereof by the wrongful act of any person or persons



5.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein.





6.2 capture seizure arrest restraint or detainment, and the consequences thereof or any attempt thereat



7 In no case shall this insurance cover loss damage or expense

7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions



DURATION

8. - Transit Clause

8.1 This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either





8.1.3 on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge, whichever shall first occur.


8.3 This insurance shall remain in force (subject to termination as provided fo r above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.



9 If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either

9.1 until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first occur, or




CLAIMS





12 Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject- matter to the destination to which it is insured hereunder. This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants.


13 No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter to the destination to which it is insured would exceed its value on arrival.





15. - Not to Inure Clause 15 This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES


16 It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder 16.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss, and 16.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised And the Underwriters will, in addition to any loss recoverable hereunder , reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

17. - Waiver Clause 17 Measures taken by the Assured or the Underwriters with the object of saving protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY

18. - Reasonable Despatch Clause

18 It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE

19. - English Law and Practice Clause

19 This insurance is subject to English law and practice.

NOTE:- It is necessary for the Assured when they become aware of an event which is "held covered" under this insurance to give prompt notice to the Underwriters and the right to such cover is dependent upon compliance with this obligation.


RISKS COVERED

1. - Risks Clause

1 This insurance covers, except as provided in Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by

1.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

1.2 any terrorist or any person acting from a political motive.


2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses.

EXCLUSIONS

3. - General Exclusions Clause



3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject -matter insured





3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion

3.8 any claim based upon loss of or frustration of the voyage or adventure

3.9 loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter

3.10 loss damage or expense caused by war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power.


4.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein.


DURATION 5.1 This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either,

5. - Transit Clause

5.1.1 on delivery to the Consignees' or other final warehouse or place of storage at the destination named herein, 5.1.2 on delivery, to any other warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either 5.1.2.1 for storage other than in the ordinary course of transit or 5.1.2.2 for allocation or distribution, or 5.1.3 on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge whichever shall first occur. 5.2 If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination of this insurance, the goods are to be forwarded to a destination other than that to which they are insured hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend beyond the commencement of transit to such other destination. 5.3 This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 6 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.



6 If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 5 above, then this insurance shall also terminate unless prompt notice is given to the Underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either 6.1 until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first, occur, or 6.2 if the goods are forwarded within the said period of 60 days (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Clause 5 above.



CLAIMS


8.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.







10 This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES


11 It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder



12. - Waiver Clause 12 Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY



LAW AND PRACTICE





RISKS COVERED

1. - Risks Clause

1 This insurance covers, except as provided in Clauses 3 and 4 below, loss of or damage to the subject-matter insured caused by

1.1 war civi l war revolution insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above, and the consequences thereof or any attempt thereat



2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from a risk covered under these clauses.

EXCLUSIONS

3. - General Exclusions Clause



3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject- matter insured





3.7 any claim based upon loss of or frustration of the voyage or adventure

3.8 loss damage or expense arising from any hostile use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.


4.1 In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject- matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject- matter insured is loaded therein,

4.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject- matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

DURATION

5.1 This insurance

5.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on an oversea vessel and

5.1.2 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as to any part as that part is discharged from an oversea vessel at the final port or place of discharge, or on expiry of 15 days counting from midnight of the day of arrival of the vessel at the final port or place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the Underwriters and to an additional premium, such insurance

5. - Transit Clause

5.1.3 reattaches when, without having discharged the subject-matter insured at the final port or place of discharge, the vessel sails from, and

5.1.4 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as to any part as that part is thereafter discharged from the vessel at the final (or substituted) port or place of discharge, or on expiry of 15 days counting from midnight of the day of re- arrival of the vessel at the final port or place of discharge or arrival of the vessel at a substituted port or place of discharge, whichever shall first occur.

5.2 If during the insured voyage the oversea vessel arrives at an intermediate port or place to discharge the subject-matter insured for on-carriage by oversea vessel or by aircraft, or the goods are discharged from the vessel at a port or place of refuge, then, subject to 5.3 below and to an additional premium if required, this insurance continues until the expiry of 15 days counting from midnight of the day of arrival of the vessel at such port or place, but thereafter reattaches as the subject-matter insured and as to any part as that part is loaded on an on-carrying oversea vessel or aircraft. During the period of 15 days the insurance remains in force after discharge only whilst the subject-matter insured and as to any part as that part is at such port or place. If the goods are on-carried within the said per iod of 15 days or if the insurance reattaches as provided in this Clause 5.2

5.2.1 where the on-carriage is by oversea vessel this insurance continues subject to the terms of these clauses, or

5.2.2 where the on-carriage is by aircraft, the current Institute War Clauses (Air Cargo) (excluding sendings by Post) shall be deemed to form part of this insurance and shall apply to the on-carriage by air.

5.3 If the voyage in the contract of carriage is terminated at a port or place other than the destination agreed therein, such port or place shall be deemed the final port of discharge and such insurance terminates in accordance with 5.1.2. If the subject-matter insured is subsequently reshipped to the original or any other destination, then provided notice is given to the Underwriters before the commencement of such further transit and subject to an additional premium, such insurance reattaches


5. - Transit Clause

5.3.1 in the case of the subject-matter insured having been discharged, as the subject- matter insured and as to any part as that part is loaded on the on-carrying vessel for the voyage;

5.3.2 in the case of the subject-matter not having been discharged, when the vessel sails from such deemed final port of discharge; thereafter such insurance terminates in accordance with 5.1.4.

5.4 The insurance against the risks of mines and derelict torpedoes, floating or submerged, is extended whilst the subject- matter insured or any part thereof is on craft whilst in transit to or from the oversea vessel, but in no case beyond the expiry of 60 days after discharge from the oversea vessel unless otherwise specially agreed by the Underwriters.

5.5 Subject to prompt notice to Underwriters, and to an additional premium if required, this insurance shall remain in force within the provisions of these Clauses during any deviation, or any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment. (For the purpose of Clause 5 "arrival" shall be deemed to mean that the vessel is anchored, moored or otherwise secured at a berth or place within the Harbour Authority area. If such a berth or place is not available, arrival is deemed to have occurred when the vessel first anchors, moors or otherwise secures either at or off the intended port or place of discharge "oversea vessel" shall be deemed to mean a vessel carrying the subjectmatter from one port or place to another where such voyage involves a sea passage by that vessel)



7. - Nullification 7 Anything contained in this contract which is inconsistent with Clauses 3.7,3.8 or 5 shall, to the extent of such inconsistency, be null and void.

CLAIMS


8.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.







10 This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES


11 It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder



12. - Waiver Clause 12 Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY



LAW AND PRACTICE





DISCLAIMER: This document is a brief overview of insurance with a particular emphasis on Ocean Marine insurance. It is intended solely for the use of clients of Allcovered, Inc. Duplication, republication or other dissemination of this information is prohibited. This is not a definitive document. I am not an Admiralty lawyer, but offer the following as a brief introduction to the challenges Forwarders and Logistics professionals face and obligations they incur. You must know the rules, regulations and laws that govern Ocean Marine insurance in your jurisdictions. Failure to do so may leave you liable for the consequences of actions or inaction. The information herein has been excerpted from several sources. This information is believed to be accurate but is not guaranteed. You are solely responsible for all legal and moral obligations you incur when you offer Cargo Insurance or other services to your clients. Be sure you understand your rights and obligations

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SO WHAT? Why should you care about Ocean Marine insurance? BECAUSE:

q When you move goods for another, in today’s world, you risk the future of your business.

q When you move goods for another you assume legal and financial liabilities.

q When you offer cargo insurance to your clients you assume all the risks that a trained insurance professional assumes.

KNOW YOUR SHIPPERS / CONSIGNEES:

In the aftermath of 9-11 the Security requirements placed on Shippers, Consignees, Carriers, Forwarders, Customs House Brokers and all others involved in the movement of goods have increased dramatically. They will increase even more in the months and years to come. I cannot stress strongly enough that any time you move goods on behalf of another, you risk the future of your business. The goods you move need not be items linked to terror for your business to be hurt. This is not an overstatement, as the following example shows.

E X A M P L E

It is common practice for a Shipper to load containers, and for the Forwarder to handle the paperwork. If the Shipper mis-identifies goods in the container, and Customs inspects that container, the Forwarder or firm issuing the Bill of Lading faces mandatory fines that begin at US$ 5,000. In addition, the forwarder and issuer of the Bill of Lading will be flagged in Customs’ systems so all future shipments face a much greater chance of inspection. When Customs destuffs a container to inspect the contents Customs is under no obligation to repack the container carefully… thus, from my observation, about one-third of Customs inspected containers face cargo damage. So if you do not know your Shipper well enough to be certain they are accurate and careful, or if your Shipper is careless in specifically identifying the cargo and the above occurs you face major problems:

q Your future shipments for all clients will be delayed for inspection.

q One-third of your future shipments that are inspected may have a cargo loss.

q Your clients are likely to go to another Forwarder that can move goods faster with less cargo damage.

v How long will your Shippers stay with you if their shipments are always delayed and about one-third arrive damaged?

v Do you know your Shippers well enough to risk your future business for them?

v If the answer is “No,” then I strongly urge you to either get to know your Shippers well enough to trust them this well, or, if the Shipper refuses to work with you, find another client.

ASK Yourself


OCEAN MARINE INSURANCE: This document is designed to give you a brief overview of your rights and responsibilities under the category of coverage known as Ocean Marine Insurance. There are many types of insurance. Property & Casualty insurance covers buildings, automobiles, and the liability businesses and individuals have for incidents that may occur on their property. Life, Accident and Sickness insurance covers human beings or groups. In the US and in most jurisdictions around the world, an agent must be licensed to sell P&C or LAS insurance. Ocean Marine is a type of insurance. Freight Forwarders offer Cargo Insurance to their clients through "Ocean Marine" policies. Because goods covered by Ocean Marine cargo insurance may travel through many different countries or governmental regions, it is impractical for each state to impose its own special terms or conditions, as this would hamper the free and rapid movement of goods. Because of this, Ocean Marine insurance is usually unregulated by governmental agencies (check with your insurance regulators).

An Ocean Marine policy can cover goods moving by air, sea, land or any

combination thereof.

Ocean Marine insurance is governed exclusively by the Standard and Special Conditions of the insuring contract, and by the wordings of applicable international treaties such as those from the International Chamber of Commerce known as the Institute Cargo Clauses. The insurance Certificate and its applicable wordings are a Contract. That means the requirements for a legal contract must be met by all parties. Because marine insurance is governed by the idea of “Uberimma Fides” or “Utmost Good Faith ,” the ethical requirements on all parties are more stringent than in many other types of contracts. Failure can mean a policy is void. Because Ocean Marine insurance is unregulated in most jurisdictions, most Forwarders who market Ocean Marine Cargo insurance need not be licensed by authorities as other insurance agents are. Be sure you know and follow the laws for your jurisdiction. But, as with any service offered to the public, a Forwarder or anyone who offers Ocean Marine insurance incurs legal obligations to the Insurer, to the person purchasing the insurance, and to any carrier involved in the movement of the goods insured.

OCEAN MARINE INSURANCE A CONTRACT:

As with any legal contract, four essential elements must be satisfied for cargo insurance in force: 1)- Agreement (There must be an offer and acceptance) 2)- Consideration (Each party must give something of value) 3)- Competent Parties (Parties making offer and accepting must be legally capable of doing so) 4)- Legal Purpose (Valid contracts must be for a legal purpose and consistent with public policy)

HISTORY:

Depending on the source of information, the earliest known historical references to cargo insurance date back either to the Chinese, or to the time of the Phoenicians. At first, merchants began managing risk through Reduction. Rather than load each of four ships headed to a similar destination with the entire cargo of different individual owners, 25-pct of each owner's cargo was placed on each ship. In this manner, the loss of any one ship would not result in any owner's total loss.

The concept of Sharing risk through General Average was developed by the Phoenicians 3,000 years ago. Under General Average, those whose cargo survives a voyage are assessed to repay the loss of another shipper whose cargo may have been jettisoned or lost for the protection of the vessel and the load remaining. The Italians and the Lombard League first began insuring cargo in the sense we know it today in the 1200’s. In the 14th and 15th centuries this concept became more formal and more regular, led by members of the Hanseatic League.

During the 1700’s individuals began insuring the risk to cargo of voyages. Voyages were written on a board in Lloyd's coffeehouse in London. Individuals willing to assume a portion of a voyage's risk would write their names under that voyage, and the percentage of the risk they were willing to accept. Thus the term "Underwriter."


YOUR RESPONSIBILITIES AND LEGAL OBLIGATIONS: As a Forwarder you have a fiduciary (legal and ethical) responsibility to the Insurer and to those you offer Ocean Marine cargo insurance. A "fiduciary relationship" is developed when a person relies on, or places confidence, faith or trust in another person's advice, or actions, particularly when finances or assets are at stake.

To Your Client: As a Forwarder, if your actions lead to a loss for your client that the client had not foreseen, or a risk the client had not accepted, you may be held liable. To Your Insurer: As a Forwarder, you have a fiduciary responsibility to the Insurer to handle all transactions involving the Insurer responsibly, ethically, to keep records, and to remit premiums when due. If your Shipper has claims or losses, or had special terms imposed, or had insurance refused by any other insurer, then you are obligated to notify Underwriters or insurance coverages and claims may be affected or voided. Failure to place insurance when requested may result in you as the Forwarder being held liable for any loss or claim. There may be additional obligations, legal, financial, or moral, incurred.

METHODS OF MANAGING RISK:

AVOIDANCE AVOIDANCE of risk may be accomplished by removing a hazard, engaging in an alternative activity, or otherwise ending a specific exposure.

REDUCTION REDUCTION of risk reduces the probability or severity of a possible loss.

RETENTION RETENTION of risk occurs when the client or prospect assumes a risk without purchasing insurance, or through the use of deductibles.

TRANSFER TRANSFER of risk is an option that includes, but is not limited to, insurance. SHARING SHARING of risks is actually a variation of the retention concept.

FIELD UNDERWRITING:

Field Underwriting is the process of screening out unacceptable risks. You do this every day when prospecting for clients. When you see or sense something is wrong, you correct the problem or walk away. The first step to dealing with risks is to identify and analyze loss exposures and then evaluate alternatives to dealing with them. As a Forwarder, keep in mind the economic realities and the best interests of your client. It is often advantageous to avoid or reduce risks. You should encourage objective and well-informed decisions by your clients based on a complete understanding of the coverage, versus the probable and the possible financial impact of assuming the risks. If you have explained the exposures to your client, and the client refuses insurance, responsibility for a loss rests with the client. This means you must understand what any insuring contract does and does not cover. The wordings of the insuring contract define these limits.

Analyzing risks and exposures, taking steps to avoid or reduce risks, considering loss control efforts, and submitting risks properly to markets, are all a part of Field Underwriting. Accepting poor risks prone to losses is known as "Adverse Selection." Avoid "Adverse Selection." Insurance can only work when risks are distributed fairly.

If you offer cargo insurance to your clients, you accept the responsibility to the Insurer to avoid "Adverse Selection" of poor risks with higher chances of loss, unless those higher risks are communicated clearly and fully to the Insurer. With complete information the Insurer may make an informed decision on whether or not to accept the risks involved and, if so, under what terms and conditions. Failure to alert the insurer of a Shipper’s prior losses is a “Material Breach” of your contract, defined as: “a breach serious enough to destroy the value of the contract.” Claims Management is a part of Field Underwriting. Be careful to follow the instructions given you precisely. All rights to the determination of the settlement of a claim reside with the Insurer or its assigned representatives.

If you are not sure what to do, contact your Agent, Underwriters, or the Claims Office of the Insurer and allow them to direct your efforts. Failure to follow instructions correctly may adversely affect claims settlement.

Failure to properly oversee and manage a claim may leave you exposed to financial & legal obligations.


NOTE: It is our strong recommendation that, for your own protection, if your client refuses insurance you would be wise to have a record of such refusal in writing. In the event of a claim, it is unlikely you would be held liable for the loss, for you woul d have a written record that the client refused coverage.

(See “Useful Forms/Letters” at www.allcovered.net.

E X A M P L E

Field Underwriting is Critical to the health of your business. You could be liable for damage to a shipment even if you insure the cargo. Let's imagine that a client delivers a last-minute shipment to you only two hours before the flight it must move on. This situation is a daily occurrence for many Forwarders: q Let's assume the shipment is poorly packed and you tell the Shipper the packing is bad. q The client insists you must accept and move the goods on time or lose the account. q The client requests and pays for insurance. q You move the goods and the goods arrive damaged q The surveyor reviews the damage and cites poor packing as the reason for the claim. q The insurer can, at its discretion, refuse payment because the packing was not acceptable. q The Shipper may be able to hold you liable for the damage because you accepted the shipment.

TOOLS & TRAINING:

-- COVERAGE COMPARISONS A comparison of basic coverages is available at www.allcovered.net under the link “Compare Clauses Cover.”

-- TERMS & CONDITIONS DEFINED & EXPLAINED Definitions of almost 3,500 transport and insurance terms are available under “Ocean/Transport Terms” at www.allcovered.net.

-- ELIMINATING MISUNDERSTANDINGS A sample of a letter we suggest you send to all Shippers requiring that they give you explicit instructions on how to handle insurance for their goods is available at www.allcovered.net under “Useful Forms/Letters.” This transfers responsibility for the decision on when to place insurance to the Shipper (provided you follow their instructions) and eliminates many opportunities for misunderstandings that may lead to uncovered claims.

Failure to outline possible exposures to your client might result in a claim of "Omission" against you .

WHAT COVERAGES DO AND DO NOT COVER:

NOTE: This is a broad and brief overview of types of insurance. Read and understand your coverage benefits and limits. If you have any questions, never hesitate to ask.

NOTE: All coverages described briefly below are subject to the wordings of the insurance contract, the limits of the coverage purchased, and any applicable governing laws or treaties.

Ocean Marine Cargo

Covers cargo while it is under the care, custody and control of the purchaser of the insurance or insured’s designated agent (such as a forwarder) subject to the insuring terms, the Incoterms, and the limits of the contract IN GENERAL TERMS: ICC Clauses A covers everything except what it specifically excludes, which are losses attributable to “War” or “Strikes.” Thus combining Clauses “A, War & Strikes” with the Standard Conditions of insurance provide what is usually referred to as “All Risks.” ICC Clauses C covers nothing but what is specifically says it covers Read the precise wordings to be sure of the coverage

Warehouse Warehouse insurance covers goods while stored or held for another. Bill of Lading (Cargo) Legal Liability

Covers the minimum statutory exposure if a mistake is made, or an accident occurs during movement of goods.

Errors & Omissions

Covers your exposure if a mistake in paperwork is made, such as failure to place insurance for a client that requested it. NOTE: We are seeing many insurers change wordings to specifically EXCLUDE failure to place insurance as a recoverable claim. Read your policy carefully.


INSURANCE TERMS YOU SHOULD KNOW:

(This is a partial list only – a comprehensive list of 3,500 Insurance Definitions, Ocean and Transport Terms is available at www.allcovered.net under the link “Ocean/Transport Terms”)

INDEMNITY: Ocean Marine Cargo insurance is written on an indemnity basis. The intent of indemnity is to make someone "whole" again by paying actual damages to the cargo, while preventing any gain. Under the principle of Indemnity, insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss, subject to the terms and conditions of the insurance purchased. Ocean Marine policies are most often written on a “stated value” or “declared value” basis, meaning the insurer will pay actual damages, or the stated value of insurance purchased, subject to the conditions and deductibles of the insurance. SUBROGATION: Subrogation applies when a third party caused a loss or was primarily responsible for it through negligence. A loss victim usually has legal recourse against a party at fault. Subrogation transfers this right to the insurer when a loss is paid, but only to the extent of the insurance payment. Failure to protect the Insurer's Subrogation Rights can adversely affect claims settlement.

CARE, CUSTODY, AND CONTROL: Ocean Marine insurance covers shipments while they are under the "Care, Custody, and Control" of the Forwarder while the purchaser of the insurance (Shipper, Consignee or other party) retains an Insurable Interest in the goods covered subject to the Incoterms. (See Coverage Limitations).

WARRANTY: A statement in any Ocean Marine insurance document, whether application, claim, or other communication, submitted by an Insured, whether by the Forwarder or the person insuring the cargo, is warranted to be TRUE IN ALL RESPECTS. IF UNTRUE IN ANY RESPECT, even though the untruth may not have been known to the person giving the warranty, the CONTRACT MAY BE VOIDED whether or not the untruth or inexactness was material to the risk.

ACTUAL CASH VALUE: The sum of money required to pay for damages or lost property, computed on the basis of replacement value less its depreciation by obsolescence or general wear. NOTE: Ocean Marine insurance covers the value of the goods for their replacement or declared value or to the limits of the insurance, whichever is less. It is reasonable and customary in Ocean Marine insurance to insure cargo for CIF+10%. CIF+10% means insuring the shipment for the Cost of the goods, the cost of the Insurance, the cost of the Freight, and an extra 10-pct. of the total value for lost time, paperwork, and trouble.

INCOTERMS: All Ocean Marine insurance is governed by the sales contract. When ownership of goods changes hands, insurance begins or ends unless prior arrangements have been made with the Insurer. There are 13 widely used and internationally approved Incoterms. Incoterms delineate where responsibilities of Shippers, Sellers, Buyers and Consignees begin and end. An overview is available in our Ocean Marine Brochure, on the agency's web site, http://www.allcovered.net, or from http://www.incoterms.org.

GENERAL AVERAGE: Under General Average, those whose cargo survives a voyage are charged to repay the loss of another shipper whose cargo may have been jettisoned or lost for the protection of the vessel and the load remaining. Any shipper whose cargo arrives intact when others' was lost may face a General Average charge. Insuring cargo under the minimum, "Institute Cargo Clauses C" will cover General Average claims.

COINSURANCE: In property insurance, a clause under which the insured shares in losses to the extent that he is underinsured at the time of loss. Ocean Marine shipments are subject to the Co-Insurance Clause. EXAMPLE: If goods are worth $100,000; If the goods are insured for $50,000; and there is a $40,000 loss: Then the Insurer will pay only $20,000 for the loss. Goods were insured for half their value, thus settlement is made at half the loss.

RISK is the uncertain potential for loss. PERILS are things that cause losses. HAZARDS are catalysts that trigger or advance perils.

REQUIREMENTS FOR INSURANCE:

INSURABLE INTEREST: In order to purchase insurance, one must have an insurable interest in the subject of the insurance. Insurable Interest exists ONLY when three conditions are met. The insurance applicant must:

1)- Face a personal risk of loss.

2)- Have a legitimate financial interest in preserving the property being insured.

3)- Not achieve a potential gain due to the insurance applied for.


COVERAGE LIMITATIONS:

There are three key words affecting the insurance coverage Forwarders and Logistics professionals place for their clients, "Care, Custody & Control ." Like all Ocean Marine coverages, this insures cargo for your clients while the cargo is in your care, custody or control. The extent of coverage is governed by the Insurance Contract, the Sales Contract and the Incoterms 2000. For your reference, an overview of the Incoterms is included in our Ocean Marine Brochure and on our agency web site: http://www.allcovered.net - Detailed wordings are available at http://www.incoterms.org.

EXAMPLE: If you handle the logistics for a Shipper and the sales contract is FOB, the insurance coverage ends once the goods are Free On Board unless you have prior approval from Underwriters.

Under an FOB sale, if you have handled the logistics of the shipment all the way from Shipper to the Consignee, and if the Consignee wishes you to insure the cargo, then you need to make sure, via email or typed on the Certificate Request, that Underwriters are aware you are handling the logistics on past the point where ownership of the goods change hands, and that you need for insurance cover to continue on. This may require that you purchase one insurance policy for the movement when the Shipper owns the goods… up until they are Free On Board… and a second insurance policy on behalf of the Consignee when the Consignee assumes ownership of the goods from the point where they are Free On Board until they reach their final destination.

NOTE: These limitations have always governed the extent of ocean marine insurance coverage. If, in the past, you may have had a claim paid with the words "Without Prejudice." "Without Prejudice" means the insurance company "technically" did not owe the claim, and could have declined to pay, but paid as an act of good faith because your intent was for the coverage to be in place. By paying “Without Prejudice” the insurer reserves the right to decline any future similar claim… and is declaring that no legal precedent is set by paying this one claim, “Without Prejudice.”

CLAIMS MANAGEMENT:

No claim can be processed until ALL information is gathered. Only the Insurer or its designee has the legal authority or right to make any statement regarding the settlement, speed, or actions regarding any claim. The Insurer has a legal obligation to pay any legitimate claim according to the terms and conditions of the coverage purchased.

The Insurer also has a legal obligation to its stockholders not to disburse settlement funds until all the facts are known, and a reasonable determination of a claim’s validity can be made. Ocean Marine insurance claims often must be settled within 12 months, or they may face what is known as a "Time Bar" at which time the coverage is considered void. Know your coverage.

NOTE: Each claim is unique. I have had simple claims settled within three weeks of their being reported. I have had claims that took over a year to be settled. Following procedures speeds settlement. Confusion slows the process, for each person involved with the claim must be certain of the accuracy of the information they pass along, they must “Warrant” its accuracy, or they may be legally and financially liable for any error.

CLAIMS DOCUMENTS:

All claims are unique and may require special documents. Claims Office will notify you of the information and documents they require for each precise claim. For your reference, the following documents are needed for most claims:

q Printed copy of the "Certificate of Insurance" q Supplier's Invoice (itemized value) q Packing List q Bill of Lading / Consignment Note q Delivery Receipt / Proof of Delivery noting damage q Claim on Carrier Holding them Liable q Carrier's Reply Form


CLAIMS LEGAL OBLIGATIONS:

Please keep in mind that the Forwarder, the Consignee, the Shipper, the Agent, the Claims Adjuster, the Surveyor, Claims Office personnel, and others involved with the processing of any claims have fiduciary responsibilities to make sure they have complete, total, and accurate information. All must "Warrant" that any information they provide or disburse is accurate. They may be held legally and financially liable for any incorrect information. The facts provided by you as Forwarder are "Warranted" to be accurate. Therefore, the claims process can be slowed when any one link in the chain is not providing, or is waiting for, facts, evidence, or documents… or when facts provided are contradictory, confusing, or questionable.

Each person in the chain of steps in the processing of a claim can be legally liable for the accuracy and completeness of any information they gather, provide, or process… and must be careful.

1- When your client notifies you of a possible claim, follow the instructions on the "In Case of Damage" page of the insurance Certificate. Failure to exactly follow all the instructions may negatively affect claims payment.

2- Remind your client/shipper to follow all instructions on the "In Case of Damage" page of the Insurance Certificate. 3- If you use our Internet-based cargo insurance service, we require that you report claims. Log into the site with your User-ID

and Password and choose "File a Claim" from the menu. Give us all information you have. Additional information can be added later. Until you "File A Claim" online, Underwriters and Claims office are not aware of the claim.

4- For all claims with estimated damages in excess of USD 1,000.00, you or the claimant MUST call the surveyor listed on the Certificate, or any Lloyd’s Approved Survey Agent. A list of all Lloyd’s approved Survey Agents is available through our web site: www.allcovered.net under the link “Lloyd’s Surveyors.”

5- Within two business days you should receive an email from Claims Office detailing what information is needed and what steps are required to process the claim.

6- If you have any questions about what to do, contact Claims Office for an official ruling on how to proceed. ([email protected] Tele: (44) (0) 173.245.2020)

7- In the case of Concealed Damage: q Sometimes a box may not be damaged, but goods within are broken. q Follow directions on the "In Case of Damage" page of the Certificate. q Cease unpacking immediately. q If damage is valued at more than USD 1,000.00, call Surveyor. q Retain all packing material from the box or container that held damaged goods. q Notify carrier(s) of damage within 3 days of delivery. (sample “Hold Carrier Liable” letter at www.allcovered.net

under “Useful Forms/Letters”) q If at all possible, take pictures to document damage. q Notify Forwarder/Insurer immediately so they can begin to process the Claim.

8- Always follow the instructions of Claims Office . They take precedence over anything written here, but I offer this as a guideline. I have found it seems to work best if you obtain ALL documentation requested. Once you have gathered all of the information Claims Office has requested, I suggest you make one copy for your files, make one copy for me to place in your files at Allcovered, and send the original documents and documentation you have collected to Claims Office. This eases claims processing and speeds

SUMMARY:

As a Forwarder offering cargo insurance to your clients, you assume the role of Agent on behalf of both the Insured and the Insurer with all the legal, financial, and moral obligations stated and implied in such a relationship. Be sure you understand and are comfortable with these requirements. You may be legally liable for any errors, omissions, or mistakes. At Allcovered we work hard to show you all avenues of risk, the exposures you face, and courses of protection open to you. We provide information and training, through documents like this one, our weekly newsletter and other methods. It is our way of helping you stay ahead of your competition and grow your business. We hope you agree that we go much farther than our competition in our service to you.

We want to earn YOUR business.


PACKING IS COMMON SENSE + TRAINING

Common sense can tell us when something is NOT packed well enough. Note the weight of the load (at right) has broken the rear end springs, dismounted the rear end housing, and destroyed the car because the owner was unwilling to spend a few dollars to rent a truck.

Improper Bracing Load Shift Destroyed Box Gaps, Poor Placement

Shippers too often think about the value of their goods, but not the protection of their goods. They rely on you and your professional judgment to see that their goods reach the destination safely.

Question Answer Examples

Claims can be denied for insufficient

packing.

How do I know something is packed well

enough?

There can be no had and fast rule from any Insurer on what is adequate packing. What is adequate packing for a 5 kilogram package is not nearly adequate for a 1,000kg shipment. You must use your professional judgment. Studies show that at one point during the average journey, goods being shipped either fall 2-meters (7-feet) or receive an impact that is the equivalent of a 2-meter fall. Therefore, the best guide I can give you is: "If the goods you ship are not packed well enough to survive a 2-meter (7 -foot) fall, then they are not packed well enough."

Ships list 30-degrees during transit. Unsecured cargo tilts and breaks

What if someone brings an item to be shipped that I do not thing is packed well?

You have several options:

1)- You can accept the shipment but refuse to insure it for anything but total loss – noting poor packing on the receipt of goods,

2)- You can offer to repack the goods adequately, and upon proper packing, then can offer full cargo insurance coverage,

3)- You can refuse the shipment entirely because the quality of the packing may well be an indication of the type of overall operation the shipper runs… slipshod and spotty. Do you need that kind of client?

Securing loose goods in wooden frames protects against shifting. Padding/bracing between items and box walls will finish the job.


Question Answer Examples

What are some warning signs to

look for that might indicate poor packing?

The Lloyd’s Survey handbook points out packing requirements must consider the type of shipment, the goods, the duration, and the method of shipment such as truck or ocean. There are some specific examples below. Here are some guidelines:

1)- Center of Gravity: Is the box heavy at one end or near the top? If so, is the box marked to note this, so it will be handled correctly by the people moving the box?

2)- Heavy Lift Points: If the box is heavy, are “lifting points’ marked?

3)- Fragile: If the goods are fragile, is the box well marked with “fragile” stickers?

4)- This End Up: If the box must be kept upright, is the box marked clearly which “end up?”

5)- Moisture-Sensitive: If the contents are moisture-sensitive, has silica gel or a similar moisture absorbent been placed in the box?

6)- Moisture-Sensitive: If the goods are moisture-sensitive, has the box been lined with plastic, or is the box coated to resist moisture?

Note how goods put constant pressure on container sides above. Either they will force the sides of the box out or friction during transit will wear through the bags.

What if my shipper

demands I send the shipment?

You accept legal responsibilities once you accept goods to move on behalf of others. You accept obligations which may result in financial or even legal penalties if anything goes wrong. Understand these obligations so that you can make an informed decision on whether or not accepting this risk on a shipment you feel is poorly packed is worth the value of the client. Only you can make that determination. See the "Logistics Guide to Insurance" for more.

No strong layer between bag levels. No banding. No securing. Poor job.

Are there sources for

packing information available?

Container Handbook: http://www.containerhandbook.de UPS: www.ups.com FedEx: www.fedex.com

These shots and much of this info are from the "Container Handbook." Link at left.

The prices are good and the system is so easy to use… Client in Turkey In a nutshell we use your services because they are excellent, Pricing is fair, communications are also very good and your online features simplify the process and last but not least because or your personal involvement. Client in Canada The rates are great and the service is excellent… Client in Denver

SERVICE YOU CAN TRUST

Your internet system is very easy to use and it allows us the flexibility to give our customers the coverage that they need… Client in Florida


PACKING RULES This information is from http://www.containerhandbook.de which is the most comprehensive guide to packing, stowage, and protection of cargo I have seen to date. It includes more than 1,000 pages of detailed information on safe shipping.

Do not load incompatible

goods together

Stowing incompatible goods together is

associated with risks If it is essential for incompatible goods to be stowed in a single container, the goods must be segregated from each other so that they can no longer cause any damage:

Segregate incompatible

goods if they have to be loaded

together

Where such segregation is necessary, the precise method used needs to be chosen on a case-by-case basis. Covering goods with plastic sheeting, wrapping them, introducing barrier layers and similar measures are possibilities.

Do not pack odor-emitting goods together with

odor-absorbent goods

If it is not possible to avoid packing odor-emitting and odor-absorbent cargoes together in a container, they must be isolated from the atmosphere of the hold so that they cannot influence each other:

Odor-contamination

must be prevented

Time is the factor that determines how extensive these measures should be and what segregation materials are to be selected. The longer the duration of the journey or of storage, the more resistant the screening materials have to be against molecular penetration/diffusion.

Do not pack wettening goods

together with moisture-sensitive

goods

If, contrary to this rule, liquid cargoes or moisture-emitting cargoes have to be packed into a common cargo transport unit, the moisture-emitting cargoes must be loaded at the bottom:

Do not pack "liquid cargo" on top of "solid cargo"...

... but do pack "solid cargo" on top of "liquid cargo"

The center of gravity should be below the half-height of the cargo space

Do not pack goods which produce dust

together with dust-sensitive goods

Do not pack dirty goods together with

dirt-sensitive goods

FIND OUT MORE There are over 1,000 pages of packing, shipping, and commodity-by-commodity explanations on the best ways to ship available at: http://www.containerhandling.de


INSTRUCTIONS Please complete the two pages of this application. Leave NO blanks. Place something in each field, either a “zero” or “N/A.” An incomplete application is treated as NO application. Fax the completed Application to: +1.419.715.4723. Underwriters will review your Application and assign a User-ID and Password. You will then receive complete instructions and information on how to use the system 24 / 7 / 365.

CONTACT INFORMATION Name of Assured Contact Person Contact’s Email Contact Mobile# Birthday (date/month) of Addresse of Assured City State/Province Country Zip/Post Code Office Tele # Office Fax # Email (Email addresse all insurance Invoices, Statements, etc. will be sent) Website Addresse

ICQ ID # MSN ID

Internet Messenger Contact Information

Yahoo ID Year of Formation Privately Owned Publicly Owned State Owned

World Cargo Alliance Worldwide Projects Security Cargo Network Association Membership Globalink Network APLN: Other:

Last Year: $ Estimated Annual Turnover (Gross Revenue) in US Dollars This Year (projected): $

Last Year: Estimated Number of Shipments Insured This Year (projected): Estimated Total Value of Shipments Insured Last Year: $

CARGO YOU HANDLE, MOVE, OR INSURE Annual Percentage (%) Breakdown of Shipments (Must Add Up to 100%)

Type of Goods Examples

Approved Goods & General Merchandise Textiles; Machinery NOT prone to breakage; Non-Fragile Medical Equipment; Parts & Spares; Hardware; Flat-Pack Furniture; Foodstuffs in cartons, tins, jars; Chemicals in drums, sacks or bags; Printed Matter; Pharmaceuticals; Dried Foodstuffs in bags %

Appliances, Brand Name Goods, Beverages, Electronics & Precision Instruments

Household Appliances; Cosmetics; Sporting Goods; Leather goods; Domestic Electrical Appliances; Machinery Prone to Breakage such as copiers, medical testing equipment, Knitting Machinery, etc. %

Computers, Computer Parts, etc. Desktop computers and equipment (NOTE: Notebook computers, chips, etc. must be approved by Underwriters each shipment). %

Fragile Goods Domestic Glass; Chinaware; Earthenware in waterproof cartons or crates; Cathode Ray Tubes; Bulbs; Furniture with Glass %

Household Goods & Personal Effects Professionally Packed (Owner -Packed can be insured with Exclusions) %

Automobiles & Motorbikes Private & Personal Motor Vehicles % Other: (EXPLAIN) %

NOTE: Mobile Phones, Notebook Computers, Yachts, Frozen Foods/Meats, Perishables & Other Goods May Be Agreed Upon Request

Do You Need Warehouse Insurance? (This is a separate coverage) YES NO


NOTE: Leave NO blanks. Place something in each field, either a “zero” or “N/A.” An incomplete application is treated as NO application.

PREMIUM / LOSS HISTORY for last Five Years in US Dollars

Year Insurance Company Gross

Premium Paid

Losses Outstanding

Losses This Year (to date) $ $ $ Last Year $ $ $ 2 Years Ago $ $ $ 3 Years Ago $ $ $ 4 Years Ago $ $ $ Have you had any losses in excess of US$ 100,000 in any of the last five years? (If “YES,” explain on a separate sheet) NO YES

Anticipated Attachment Date: (When you need insurance to begin)

SHIPMENTS FROM: Principle Voyages

(Most shipments you insure go from where to where) TO:

Air Freight Forwarding Ocean Freight Forwarding Heavy Lift

Dangerous / Hazardous Goods Customs Brokerage NVOCC

Consolidation / Deconsolidation Perishables Project Cargo

Your Activities: (CHECK ALL

THAT APPLY)

Pick Up / Delivery Services Warehousing Other:

Maximum Value Average Value By Sea $ $ By Air $ $ By Land $ $

Values of any one Shipment

Any One Location $ $

Full Container Loads % Less than Container Loads % Percentages of

Cargo Shipped By Breakbulk %

Sea % Air % Percentage of Methods of

Shipment By Land %

Any Other Relevant Information

I confirm that this form has been completed accurately and that all material information has been given. The applicant(s) declares and warrants that the above statements and representations are true and correct and that no facts have been suppressed or misstated. Incorrect information may void the contract. Any insurance contract issued will be in full reliance upon the statements and representations made in this application and this application will be made a part of the policy. The completion of this application does not bind the Company to sell nor the applicant to purchase this insurance.

Applicant’s Signature Title Date

Application Forms for other coverages, Research & Reference Material and much more at: http://www.allcovered.net -- We have logistics allcovered


BONDS

A-Rated FMC & Customs Bonds

Working in cooperation with Richard Soria of bond specialists Cargo Marine Underwriters, we have A+ rated Bonds available to you.

Application forms are available at: www.allcovered.net In the right hand column click on “Application Forms”

-- Bond Rates -- NOTE: Lower Rates Available in some cases depending on financials & experience

Continuous Bond Rate: $3.50 per/1000 for the first $100,000. Example: Price for $50,000 would be $175.00

Single Entry Rate: $.70 per/1000, Minimum Premium $3.50

-- Underwriting Authority -- Continuous Bond $50,000 (Minimum required by USC)

No requirements

Continuous Bond over $50,000 up to $100,000

General Indemnity Agreement required by Surety. GIA must be executed and notarized by Principal not CHB

Single Entry Bonds up to $100,000

No approval required

Single Entry Bonds over $100,000

Surety approval required

-- Bond Filing --

q All Continuous Bonds to be approved and filed from CMU’s office.

q Bond request to be sent via e-mail: o TO: [email protected] o cc: [email protected]

q SEB and/or CTB approvals to be sent via e-mail: o TO: [email protected] o cc: [email protected]

-- Bond Reporting -- q All Single Entry Bonds reported on bi-weekly basis, INCLUDING voided bonds

FOR MORE INFO: Email or Call Mike – +1.478.825.5566 x150 – [email protected]


NOTES


NOTES

OUR PARTNERS: Each WCA member is vigorously screened for financial strength and responsibility, professional integrity, reputation in the shipping community, and general capabilities for properly servicing their clients.

LOCAL EXPERTISE: The benefits of utilizing the services of a WCA member forwarder are obvious. Instead of using the branch office of a giant and often apathetic international freight forwarder, World Cargo Alliance members are local to their markets, with the necessary expertise to properly handle your shipments, but with local needs and requirements in mind.

BIG ENOUGH TO PERFORM, SMALL ENOUGH TO CARE: WCA members are small to medium-size freight companies who provide the personalized service the multi-national forwarders simply cannot offer. Armed with the latest technology, WCA member offices can supply the automated reporting, tracking, and tracing demanded by today’s largest shippers, putting them on an equal footing with the largest international forwarders.

THE HIGHEST CREDENTIALS: Our members are leaders in their respective markets and in addition to belonging to their own local and national forwarder and logistics associations, many hold memberships in prestigious international organizations such as IATA & FIATA. Quality management is a hallmark of WCA member companies with many achieiving ISO certification evidencing their commitment to excellence and a systematic search for self -improvement.

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www.allcovered.net We have logistics allcovered!

Documents

TAB-WCA Brochure 2004-05-24