GURBANI & CO
Advocates & Solicitors
INSTITUTE CARGO CLAUSES
A comparison of the 1982 and 2009 Clauses
GURBANI & CO
Title
No changes in title of Clauses
A revision not a new set of Clauses
Margin Side Headings
1982 Clauses Margin Side Headings for Clauses 4 to 7 (i.e.
exclusion clauses) led to confusion.
Eg.
Clause 6 – War Exclusion Clause
Clause 7 – Strikes Exclusion Clause
Removed in 2009 Clauses.
Other margin side headings replaced by conventional subheadings.
GURBANI & CO
RISK CLAUSE
1/1/82
Risks
Clause
RISKS COVERED
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.
1/1/09
RISKS COVERED
Risks
1 This insurance covers all risks of loss of or damage to the
subject-matter insured except as excluded by the provisions of
Clauses 4, 5, 6 and 7 below.
Cosmetic change to give a clear indication that the clauses 4, 5, 6 and 7 are
exclusions.
GURBANI & CO
G.A. etc
1/1/82
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.
General
Average
Clause
1/1/09
General Average
2 This insurance covers general average and salvage charges, adjusted
or determined according to the contract of carriage 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 below.
Minor changes. The word “affreightment” is replaced by the simplified word “carriage”. The
words “or elsewhere in this insurance” in the 1982 clause are deleted as being surplusage.
GURBANI & CO
BOTH TO BLAME COLLISION CLAUSE
1/1/82
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.
“Both
to
Blame
Collision”
Clause
1/1/09
“Both to Blame Collision Clause”
3 This insurance indemnifies the Assured, in respect of any risk
insured herein, against liability incurred under any Both to Blame
Collision Clause in the contract of carriage. In the event of any
claim by carriers under the said Clause, the Assured agree to notify
the insurers who shall have the right, at their own cost and expense,
to defend the Assured against such claim.
Revised clause uses clearer language but it neither widens nor narrows the cover.
The word “shipowners” is replaced by the more appropriate word “carriers”. “Affreightment” to
“Carriage”. “Underwriters” to “insurers”.
WILFUL MISCONDUCT
GURBANI & CO
1/1/09
EXCLUSIONS
4. In no case shall this insurance cover
4.1 loss damage or expense attributable to wilful misconduct of
the Assured.
No change.
ORDINARY LEAKAGE ETC
1/1/09
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.
No change.
INSUFFICIENCY OR UNSUITABLILIY OF PACKING ETC
GURBANI & CO
1/1/82
4
In no case shall this insurance cover
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).
1/1/09
4. In no case shall this insurance cover
4.3 loss damage or expense caused by insufficiency or unsuitability of
packing or preparation of the subject-matter insured to withstand
the ordinary incidents of the insured transit where such packing or
preparation is carried out by the Assured or their employees or
prior to the attachment of this insurance (for the purpose of these
Clauses “packing” shall be deemed to include stowage in a
container and “employees” shall not include independent
contractors).
Limited to 2 situations/Ordinary incidents of transit
Liftvan
Employees
INHERENT VICE
GURBANI & CO
1/1/09
4.
In no case shall this insurance cover
4.4 loss damage or expense caused by inherent vice or nature of the
subject-matter insured.
No change.
DELAY
1/1/82
4
In no case shall this insurance cover
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).
1/1/09
4.5 loss damage or expense caused by delay, even though the delay be
caused by a risk insured against (except expenses payable under Clause
2 above).
Word “proximately” is deleted.
GURBANI & CO
ILLUSTRATION
Transformer to be shipped from say Southampton to
Penang, Malaysia. Shipped on board Vessel “A” from
Southampton to Rotterdam. Vessel “A” encountered Force
7 and 8 winds for 2 days. At Rotterdam transferred to
Vessel “B” bound for Penang. Vessel “B” met Force 7 to 10
winds for 2 days. On arrival at Penang, the transformer
was found damaged – the joints were separated, the limbs
were distorted and there were movements in the parts. Is it
covered under the 1982 Clauses and/or the 2009 Clauses?
INSOLVENCY OR FINANCIAL DEFAULT
GURBANI & CO
1/1/82
4
In no case shall this insurance cover
4.6
loss damage or expense arising from insolvency or financial default of the
owners managers charterers or operators of the vessel.
1/1/09
4.
In no case shall this insurance cover
4.6
loss damage or expense caused by insolvency or financial default of the
owners managers charterers or operators of the vessel where, at the time of
loading of the subject-matter insured on board the vessel, the Assured are
aware, or in the ordinary course of business should be aware, that such
insolvency or financial default could prevent the normal prosecution of the
voyage.
This exclusion shall not apply where the contract of 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.
Exclusion is reduced in scope
Innocent Assured
Good faith assignee
“Arising from” become “caused by”
ICTC (A) 5/9/83 CL. 275 IFMC (A) 1/1/86 CL. 323
GURBANI & CO
NUCLEAR FISSION AND/OR FUSION
1/1/82
4
In no case shall this insurance cover
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.
1/1/09
4. In no case shall this insurance cover
4.7 loss damage or expense directly or indirectly caused by or
arising from the use of any weapon or device employing
atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.
Exclusion is now wider – “directly or indirectly caused by”; including weapon or device
not necessarily of “war”.
GURBANI & CO
UNSEAWORTHINESS AND UNFITNESS
1/1/82
5.
5.1
5.2
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.
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.
1/1/09
5.
5.1
5.2
5.3
In no case shall this insurance cover loss damage or expense arising from
5.1.1 unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe
carriage of the subject-matter insured, where the Assured are privy to such
unseaworthiness or unfitness, at the time the subject-matter insured is
loaded therein,
5.1.2 unfitness of container or conveyance for the safe carriage of the subjectmatter insured, where loading therein or thereon is carried out
prior to attachment of this insurance or
by the Assured or their employees and they are privy to such unfitness at the
time of loading.
Exclusion 5.1.1 above shall not apply where the contract of 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.
The Insurers 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.
Unseaworthiness
and Unfitness
Exclusion Clause
GURBANI & CO
Vessel/craft dealt with separately from
container/conveyance
Cl. 5.1.1 refers to “Assureds”.
Cl. 5.1.2 refers to “Assureds or their employees”
“Liftvan”
“Servants” become “employees”
Assignee
ICTC (A) 5/9/83 CL. 275
GURBANI & CO
WAR ETC EXCLUSION
1/1/09
6
In no case shall this insurance cover loss damage or expense caused
by
6.1war civil war revolution rebellion insurrection, or civil strife arising
therefrom, or any hostile act by or against a belligerent power
6.2capture seizure arrest restraint or detainment (piracy excepted),
and the consequences thereof or any attempt thereat
6.3derelict mines torpedoes bombs or other derelict weapons of war.
No change.
Note:
Only the A Clauses contain the words “(piracy excepted)” in the
capture/seizure/arrest etc exclusion in Clause 6.2. A claim relating to piracy is
therefore covered under the A Clauses but not under the B and C Clauses.
GURBANI & CO
STRIKES ETC EXCLUSION
1/1/82
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.
Strikes
Exclusion
Clause
1/1/09
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 act of terrorism being an act of any person acting on behalf
of, or in connection with, any organisation which carries out activities
directed towards the overthrowing or influencing, by force or violence, of
any government whether or not legally constituted
7.4
caused by any person acting from a political, ideological or religious
motive.
Strikes exclusion unchanged
Terrorism exclusion extended
The Institute Strikes Clauses (Cargo) 1/1/09 have been amended accordingly to give back to back cover.
DURATION
GURBANI & CO
1/1/82
DURATION
8.
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
8.1.1
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
8.1.3 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.
1/1/09
DURATION
Transit Clause
8.
8.1 Subject to Clause 11 below, this insurance attaches from the time the subject-matter insured is first moved in the
warehouse or at the place of storage (at the place named in the contract of insurance) for the purpose of the
immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit,
continues during the ordinary course of transit
and terminates either
8.1.1 on completion of unloading from the carrying vehicle or other conveyance in or at the final warehouse or place
of storage at the destination named in the contract of insurance,
8.1.2 on completion of unloading from the carrying vehicle or other conveyance in or at any other warehouse or place
of storage, whether prior to or at the destination named in the contract of insurance, which the Assured or their
employees elect to use either for storage other than in the ordinary course of transit or for allocation or
distribution,
or
8.1.3 when the Assured or their employees elect to use any carrying vehicle or other conveyance or any container for
storage other than in the ordinary course of transit or
8.1.4 on the expiry of 60 days after completion of discharge overside of the subject-matter insured from the oversea
vessel at the final port of discharge,
whichever first occur.
Transit
Clause
GURBANI & CO
1/1/82
DURATION
8. 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
8.1.1 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
1/1/09
DURATION
Transit Clause
8. 8.1 Subject to Clause 11 below, this insurance attaches from the time the subjectmatter insured is first moved in the warehouse or at the place of storage (at the
place named in the contract of insurance) for the purpose of the immediate
loading into or onto the carrying vehicle or other conveyance for the
commencement of transit,
continues during the ordinary course of transit
and terminates either
8.1.1 on completion of unloading from the carrying vehicle or other conveyance
in or at the final warehouse or place of storage at the destination named
in the contract of insurance,
8.1.2 on completion of unloading from the carrying vehicle or other conveyance
in or at any other warehouse or place of storage, ……
Transit
Clause
GURBANI & CO
1982 –
Warehouse Gate to Warehouse Gate - from the
time the goods leave the warehouse.”
2009 -
“first moved into warehouse”
Requirement of continuous flow
“On delivery to” becomes “on completion of unloading” –
revised clause covers both loading and unloading
Effect of new Cl. 8.1.3
Effect of “Assured or their employees” as distinct from
“Assured”
GURBANI & CO
ILLUSTRATION
Insurance on electronic goods from Singapore to
Amsterdam. Goods were transported from supplier’s
factory in Defu Lane to seller/insured’s warehouse in Tuas
at 10am to be stowed into a container. Loading and
stowage into the container was completed at 6pm. Prime
mover and trailer arrived at 8.30pm and container was
loaded onto the trailer. It was too late to send the container
to Keppel CY. The prime mover and trailer moved out of
the warehouse and parked at the parking lot outside the
warehouse. The intention was to transport the container to
Keppel CY the next morning at 6.30am. Later that night the
container was stolen.
Is the loss covered under the 1982 Clauses and/or the
2009 Clauses?
GURBANI & CO
ILLUSTRATION
Facts are as stated earlier except that the loading and
stowage of the goods into the container was completed at
7pm and the intention was to transport the container from
the warehouse to Keppel CY. The prime mover and trailer
to transport the container to Keppel CY was expected to
arrive at between 7 to 8pm. The warehouse caught fire at
7.30pm before the prime mover/trailer arrived and the
goods were totally lost.
Is the loss covered under the 1982 Clauses and/or the
2009 Clauses?
GURBANI & CO
ILLUSTRATION
The insured containerised goods arrived at the final port of
Amsterdam. The container was transported by the prime
mover to the consignee’s final warehouse. At the
consignee’s final warehouse before the container could be
unloaded from the trailer/prime mover, an armed gang held
up the warehouse staff. The prime mover/trailer and the
container were driven off and stolen. Is the loss covered
under the 1982 Clauses and/or the 2009 Clauses?
GURBANI & CO
ILLUSTRATION
The insured machine arrived at the final port of Singapore.
The machine was transported by the lorry to the
consignee’s final warehouse in Tuas. It is unloaded from
the lorry onto the ground outside the warehouse. As the
machine was being hoisted to the 3rd floor, it fell onto the
ground. Is the damage covered under the 1982 Clauses
and/or the 2009 Clauses?
GURBANI & CO
1/1/82
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.
1/1/09
8.2 If, after discharge overside from the oversea vessel at the final port of
discharge, but prior to termination of this insurance, the subject-matter
insured is to be forwarded to a destination other than that to which it is
insured, this insurance, whilst remaining subject to termination as
provided in Clauses 8.1.1 to 8.1.4, shall not extend beyond the time the
subject-matter insured is first moved for the purpose of the
commencement of transit to such other destination.
Some tidying of language but the effect remains unchanged.
GURBANI & CO
1/1/82
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.
1/1/09
8.3 This insurance shall remain in force (subject to termination as provided
for in Clauses 8.1.1 to 8.1.4 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 carriers
under the contract of carriage.
The effect remains the same.
GURBANI & CO
TERMINATION OF CONTRACT OF CARRIAGE
1/1/82
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,
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.
1/1/09
Termination of Contract of Carriage
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 unloading of the
subject-matter insured as provided for in Clause 8 above, then this insurance shall also terminate unless prompt
notice is given to the Insurers and continuation of cover is requested when this insurance shall remain in force,
subject to an additional premium if required by the Insurers, either
9.1 until the subject-matter insured is sold and delivered at such port or place, or, unless otherwise specially
agreed, until the expiry of 60 days after arrival of the subject-matter insured at such port or place, whichever
shall first occur,
or
9.2 if the subject-matter insured is forwarded within the said period of 60 days (or any agreed
extension thereof) to the destination named in the contract of insurance or to any other
destination, until terminated in accordance with the provisions of Clause 8 above.
Minor changes in wording:“delivery” becomes “unloading” to make it consistent with Clause 8.
“named herein” in Clause 9.2 becomes “named in the contract of insurance”.
“goods” becomes “subject-matter insured”.
Termination
of Contract of
Carriage
Clause
GURBANI & CO
CHANGE OF VOYAGE
1/1/82
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.
1/1/09
Change of Voyage
10. 10.1 Where, after attachment of this insurance, the destination is
changed by the Assured, this must be notified promptly to Insurers
for rates and terms to be agreed. Should a loss occur prior to
such agreement being obtained cover may be provided but only if
cover would have been available at a reasonable commercial
market rate on reasonable market terms.
10.2 Where the subject-matter insured commences the transit
contemplated by this insurance (in accordance with Clause 8.1),
but, without the knowledge of the Assured or their employees the
ship sails for another destination, this insurance will nevertheless
be deemed to have attached at commencement of such transit.
Change
of
Voyage
Clause
GURBANI & CO
Section 44 MIA
“Sailing for different destination – Where the
destination is specified in the policy, and the
ship, instead of sailing for that destination, sails
for any other destination, the risk does not
attach.”
In “phantom ship” cases the ship will sail for a different (and
unknown) destination without the knowledge of the Assureds. In
such cases there is no cover.
New Cl. 10.2 cover such losses provided (i) transit commences
and (ii) assured and their employees had no knowledge.
GURBANI & CO
Old Clause 10 used the phrase “held covered”. New Clause 10 explains the meaning of “held covered”
in line with Institute Classification Clauses 1/1/2001 CL. 354.
The “Note” at the end of the end of the new Clauses stresses the prompt notice requirement as with the old
Clauses.
1/1/09
NOTE:- Where a continuation of cover is requested under Clause 9, or a change of
destination is notified under Clause 10, there is an obligation to give prompt
notice to the Insurers and the right to such cover is dependent upon
compliance with this obligation.
1/1/82
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.
The minor revisions are to reflect the updating of the relevant clauses above eg. the words “held covered” no longer
appear in the Clauses so the Note require consequential amendment, but do not change the extent or width of the
cover.
GURBANI & CO
ILLUSTRATION
Insurance on bags of rice from Bangkok to Hong Kong.
The bags of rice were in a warehouse in Bangkok. They
were transported to and loaded on a vessel called the
“Jubilee” at Bangkok. Vessel is a phantom ship and it
disappeared with the cargo after leaving Bangkok. Is the
loss covered under the 1982 Clauses and/or the 2009
Clauses?
GURBANI & CO
ILLUSTRATION
Facts are as stated earlier except that the vessel “Jubilee”
is not a phantom ship. The insureds intended the rice to be
shipped from Bangkok to Hong Kong, as per the policy, but
the vessel was actually bound for Colombo. The insureds
did not discover this mistake until after the vessel sailed
and sunk shortly thereafter. Is it covered under the 1982
Clauses and/or the 2009 Clauses?
GURBANI & CO
CLAIMS
1/1/09
CLAIMS
Insurable Interest
11. 11.1
In order to recover under this insurance the Assured
must have an insurable interest in the subjectmatter insured at the time of the loss.
11.2
Subject to Clause 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 Insurers were not.
No change.
GURBANI & CO
FORWARDING CHARGES
1/1/82
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.
1/1/09
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 Insurers 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.
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 employees.
Only minor changes, eg. “hereunder” has been deleted and “servants” have become “employees”.
Forwarding
Charges
Clause
GURBANI & CO
CONSTRUCTIVE TOTAL LOSS
1/1/09
Constructive Total Loss
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 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.
No change.
GURBANI & CO
INCREASED VALUE
1/1/82
14
14.1
14.2
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.
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.
Increased
Value
Clause
1/1/09
Increased Value
14.
14.1
If any increased Value insurance is effected by the Assured on the subject-matter insured under this
insurance the agreed value of the subject-matter insured 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 under this insurance bears to such
total amount insured.
In the event of claim the Assured shall provide the Insurers 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 subject-matter insured 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
subject-matter insured by the Assured, and liability under this insurance shall be in such proportion as the
sum insured under this insurance bears to such total amount insured.
In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured under
all other insurances.
No change, except “herein” becomes “under this insurance”, “Underwriter” becomes “Insurers”, “cargo” becomes “subject-matter
insured”.
GURBANI & CO
BENEFIT OF INSURANCE
1/1/82
BENEFIT OF INSURANCE
15 This insurance shall not inure to the benefit of the carrier or other bailee.
Not
Inure
Clause
to
1/1/09
15. This insurance
15.1 covers the Assured which includes the person claiming indemnity either as
the person by or on whose behalf the contract of insurance was effected or
as an assignee,
15.2 shall not extend to or otherwise benefit the carrier or other bailee.
A definition of the Assured has been inserted for extra clarity, i.e. it makes it clear that an assignee
and the principal have the benefit of the insurance.
The word “inure” has multiple dictionary meaning and is replaced with more contemporary
wording.
GURBANI & CO
MINIMISING LOSSES
1/1/82
MINIMISING LOSSES
Duty of Assured
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.
1/1/09
MINIMISING LOSSES
Duty of Assured
16. It is the duty of the Assured and their employees 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 and other third parties are properly
preserved and exercised,
and the Insurers will, in addition to any loss recoverable hereunder, reimburse the Assured for
any charges properly and reasonably incurred in pursuance of these duties.
“Servants” become “employees” and “Underwriters” become “Insurers”, but otherwise no changes.
Duty of
Assured
Clause
WAIVER CLAUSE
1/1/82
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.
1/1/09
Waiver
17. Measures taken by the Assured or the Insurers 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.
“Insurers” has replaced “Underwriters” but otherwise no change.
AVOIDANCE OF DELAY
1/1/09
AVOIDANCE OF DELAY
18. It is a condition of this insurance that the Assured shall act with reasonable
despatch in all circumstances within their control.
No change.
GURBANI & CO
Waiver
Clause
GURBANI & CO
LAW AND PRACTICE
1/1/09
LAW AND PRACTICE
19. This insurance is subject to English law and practice.
No change.
MINOR AMENDMENTS
(i)
“Insurers” has been substituted for “Underwriters”, eg. Clauses 3, 5, 12, 14,
(ii)
“cargo” and “goods” have been substituted for “subject-matter insured”, eg. Clause 8.1,
8.2, 9.14,
(iii) the Clauses now distinguish between “this insurance” (the insurance cover provided by the
Clauses) and the “contract of insurance” being the overall open cover or the facultative
contract of insurance, to clarify the position of the Clauses, eg. Clauses 5.2, 8.1.1 and 15.1,
(iv) reference is also made to the word “ship” (Cl. 5.3) as distinct from “vessel” (Cl. 4.6 and
8.2) perhaps for stylistic reasons (i.e. Cl. 5.3 unseaworthiness is generally referred to a
ship, rather than a vessel).
GURBANI & CO
SUMMARY
Major revision
Clause 4.3
Clause 4.6
Clause 5
Clause 8
Clause 10
-
Exclusion of insufficiency or unsuitability of packing etc
Exclusion of insolvency or financial default
Exclusion of unseaworthiness and unfitness
Duration of insurance
Change of voyage
Minor revision
Clause 4.7
Clause 7
Clause 9
Clause 15
-
Exclusion of nuclear fission and/or fusion
Strikes etc exclusion
Termination of contract of carriage
Benefit of insurance
Cosmetic Changes
Clause 1
Clause 2
Clause 3
Clause 4.5
Clause 12
Clause 14
Clause 16
Clause 17
-
Risks clause
GA clause
Both to Blame Collision clause
Exclusion of delay
Forwarding charges
Increased value
Minimising losses
Waiver clause
GURBANI & CO
“B” AND “C” CLAUSES
The “B” and “C” Clauses have been amended in accordance with the
changes in the “A” Clauses.
Note:
EXCLUSIONS
4. In no case shall this insurance cover
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.
There is therefore no cover for piracy unlike the “A” Clause (Cl. 6.2). It is therefore
necessary to add the Institute Malicious Damage Clause 1/1/82 CL. 266 to the cover if
deliberate damage (including privacy) is to be covered.
INSTITUTE STRIKE CLAUSES (CARGO) 1/1/90
INSTITUTE WAR CLAUSE (CARGO) 1/1/09
GURBANI & CO
The above Clauses have been amended in line with “A” Clauses.
STRIKE CLAUSES
1/1/82
RISKS COVERED
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.
Risks Clause
1/1/09
RISKS COVERED
Risks
1. This insurance covers, except as excluded by the provisions of 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 act of terrorism being an act of any person acting on behalf of, or in connection with,
any organisation which carries out activities directed towards the overthrowing or
influencing, by force or violence, of any government whether or not legally constituted
1.3 any person acting from a political, ideological or religious motive.
In line with the exception in the new Clause 7 of the “A” Clauses the cover has been extended to take back what is excluded under
the new “A” Clauses.
Note – the Strike Clauses only cover physical damage arising from the perils insured and does not cover losses arising from delay or
interruption of the transit. Both the old and the new Clause 3.7 and 3.8 of the Strikes Clauses make this clear.
GURBANI & CO
WAR RISKS CLAUSES
1/1/82
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 civil war revolution rebellion 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
1.3 derelict mines torpedoes bombs or other derelict weapons of war.
1/1/09
1
This insurance covers, except as excluded by the provisions of Clauses 3 and 4
below, loss of or damage to the subject-matter insured caused by
1.1 war civil war revolution rebellion 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
1.3 derelict mines torpedoes bombs or other derelict weapons of war.
No change except that “provided” is replaced by “excluded”.
Risks
Clause