POLICY INDEX. PART TITle reference/description page

Transcription

1 Marine Cargo Insurance Open Policy POLICY INDEX PART TITle reference/description page A. POLICY STATEMENT B. RISKS COVERED C. EXCLUSIONS D. DURATION OF COVER E. CLAIMS F. GENERAL INCOTERMS A1. Preamble... 2 B1. General Cargo... 2 B2. Frozen & chilled goods (other than frozen meat)... 2 B3. Frozen & chilled meat... 2 B4. General average, salvage & Both to Blame Collision... 3 B5. War... 3 B6. Strikes... 3 C1. Wilful Misconduct... 3 C2. Ordinary loss... 3 C3. Insufficiency of packing... 3 C4. Inherent vice... 3 C5. Delay... 3 C6. Insolvency of carrier... 4 C7. Frustration of the adventure... 4 C8. Nuclear weapons of war... 4 C9. Shipments on deck... 4 C10. Climatic changes... 4 C11. Radioactive contamination... 4 C12. Shelf life... 4 C13. Contagious diseases... 4 C14. Earthquake frozen meat... 4 C15. Earthquake onshore in New Zealand... 4 C16. Theft from own conveyances... 4 C17. Perishable goods not under temperature controlled refrigeration... 4 C18. Perishable goods by sea or land... 5 C19. Notice of loss perishable goods... 5 C20. Mechanical/electrical derangement... 5 C21. Used and second-hand goods... 5 C22. Unseaworthiness / unfitness sea / land... 5 C23. Unairworthiness / unfitness air... 5 C24. Embargo, rejection or prohibition... 5 D1. Other than war... 5 D1(a). Other than frozen meat... 5 D1(b). Frozen meat... 6 D1(c). Applicable to all goods... 6 D2. War... 6 D2(a). Shipments by post... 6 D2(b). Shipments by seafreight and airfreight... 6 E1. Insurable interest... 7 E2. Claims payable... 8 E3. Forwarding charges... 8 E4. Constructive total loss... 8 E5. Adjustment clause frozen meat... 8 E6. Increased value... 8 E7. Benefit of insurance... 8 E8. Minimising losses... 8 E9. Avoidance of delay... 8 E10. Claims procedure... 8 E11. Progress payments E12. Trademarks or branding E13. Claims for labels E14. Pairs & Sets E15. Shipments of machinery F1. Commencement/termination of open policy & notice period F2. Voyages/transits insured F3. Declarations/payment of premiums F4. Basis of valuation F5. Limits of liability F6. Change in circumstance F7. Other insurance F8. Goods and Services Tax Passing of risk... 12

2 A. POLICY STATEMENT A1. PREAMBLE IN CONSIDERATION of the payment of the premium, as agreed, NZI, a business division of IAG New Zealand Limited, (hereinafter called the Company or the Underwriter(s) ) undertakes to insure the subject-matter insured (also referred to as the goods or the cargo ) for the transits, as specified in the SCHEDULE, against loss, damage or expense happening during the period of the insurance and will, subject to the terms, definitions, conditions, exclusions, warranties and endorsements, contained herein or enclosed or attached hereto, indemnify the Assured in the manner and to the extent agreed. This policy is to insure the subject-matter shipped by or for the account of the Assured specifically named in the SCHEDULE or the insurance of which is under their control as selling or purchasing agent unless insured elsewhere prior to inception of this policy or to insurable interest being acquired. This policy does not cover the interest of any other person, but this shall not prevent a transfer of the insurance by the Assured or Assignee. This policy is not valid unless the SCHEDULE is signed by the issuing Branch of the Company. The conditions of insurance contained in this policy include an amalgamation of the following Institute of London Underwriters Clauses: Institute Cargo Clauses (A) Institute Cargo Clauses (Air) Institute Frozen Food Clauses (A) Institute Frozen Meat Clauses (A) Institute Frozen Meat Clauses (A) 24 Hours Breakdown Institute Strikes Clauses (Frozen Meat) Institute Radioactive Contamination Exclusion Clause Institute Strikes Clauses (Frozen Foods Excluding Frozen Meat) institute War Clauses (Cargo) institute War Clauses (Air Cargo) institute War Clauses (Sendings by Post) institute Strikes Clauses (Air Cargo) institute Strikes Clauses (Cargo) institute Replacement Clause institute Classification Clause In the event of a claim the conditions of insurance will be applied as if the individual Institute of London Underwriters Clauses had been separately included. The Institute Clauses referred to herein are those current at the inception of this policy. If, during the currency of this policy, such clauses are revised then those current on the date of attachment of risk are deemed to apply. B. RISKS COVERED B1. GENERAL CARGO GOODS TRANSPORTED AS GENERAL CARGO, OTHER THAN AS SPECIFIED IN PART B4, BY ROAD, RAIL, AIR OR SEA Except as provided in Part C. Exclusions, Part B5. War Cover and Part B6. Strikes Cover, below, this insurance covers, all risks of loss of or damage to the subject-matter insured. B2. FROZEN & CHILLED GOODS OTHER THAN FROZEN MEAT FROZEN AND CHILLED GOODS, OTHER THAN FROZEN MEAT, TRANSPORTED UNDER CONTROLLED REFRIGERATION BY ROAD, RAIL OR SEA Except as provided in Part C. Exclusions, Part B5. War Cover and Part B6. Strikes Cover, below, this insurance covers: (a) all risks of loss of or damage to the subject-matter insured, other than loss or damage resulting from any variation in temperature howsoever caused; (b) loss of or damage to the subject-matter insured resulting from any variation in temperature attributable to: (i) breakdown of refrigerating machinery resulting in its stoppage for a period of not less than 24 consecutive hours; (ii) fire or explosion; (iii) vessel or craft being stranded grounded sunk or capsized; (iv) overturning or derailment of land conveyance; (v) collision or contact of vessel craft or conveyance with any external object other than water; (vi) discharge of cargo at a port of distress. B3. FROZEN & CHILLED MEAT (a) FROZEN AND CHILLED, DOMESTICALLY FARMED BEEF, SHEEP AND DEER MEATS TRANSPORTED UNDER CONTROLLED REFRIGERATION BY ROAD, RAIL OR SEA AND HELD IN STORE FOR A PERIOD NOT EXCEEDING 180 DAYS PRIOR TO SHIPMENT Except as provided in Part C. Exclusions, Part B5. War Cover and Part B6. Strikes Cover, below, this insurance covers all risks of loss of or damage to the subject-matter insured. (b) OTHER FROZEN AND CHILLED MEAT TRANSPORTED UNDER CONTROLLED REFRIGERATION BY ROAD, RAIL OR SEA. Except as provided in Part C. Exclusions, Part B5. War Cover and Part B6. Strikes Cover, below, this insurance covers: (i) all risks of loss of or damage to the subject-matter insured, other than loss or damage resulting from any variation in temperature howsoever caused;

3 (ii) loss of or damage to the subject-matter insured resulting from any variation in temperature attributable to: breakdown of refrigerating machinery resulting in its stoppage for a period of not less than 24 consecutive hours; fire or explosion; vessel or craft being stranded grounded sunk or capsized; overturning or derailment of land conveyance; collision or contact of vessel craft or conveyance with any external object other than water; discharge of cargo at a port of distress. B4. GENERAL AVERAGE, SALVAGE, COLLISION LIABILITY EXTENSIONS APPLYING TO GOODS TRANSPORTED BY SEA (a) 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 in the Exclusions, below, or elsewhere in this insurance. Unless otherwise stated in the SCHEDULE, this insurance will pay contributions to General Average and/or salvage irrespective of the insured value. (b) 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. B5. WAR COVER This cover applies to Parts B1 B3, inclusive. It is subject to the Exclusions in Part C, below. This insurance covers, loss of or damage to the subject-matter insured caused by: (a) war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power; (b) capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat; (c) derelict mines torpedoes bombs or other derelict weapons of war. When the shipments are by sea 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. Unless otherwise stated in the SCHEDULE, these charges will be payable irrespective of the insured value. B6. STRIKES COVER This cover applies to Parts B1 B3, inclusive. It is subject to the Exclusions in Part C, below. This insurance covers, loss of or damage to the subject-matter insured caused by: (a) strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions; (b) any terrorist or any person acting from political motive. When the shipments are by sea 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. Unless otherwise stated in the SCHEDULE, these charges will be payable irrespective of the insured value. C. EXCLUSIONS C1. WILFUL MISCONDUCT In no case shall this insurance cover loss damage or expense attributable to the wilful misconduct of the Assured. C2. ORDINARY LOSS In no case shall this insurance cover ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured. C3. INSUFFICIENCY OF PACKING In no case shall this insurance cover loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Exclusion C3 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). C4. INHERENT VICE In no case shall this insurance cover loss damage or expense caused by inherent vice or nature of the subject-matter insured. This exclusion will not apply when: (a) the subject-matter insured is carried under controlled refrigeration, and (b) the loss damage or expense results from variation in temperature, and is covered by a peril insured under Part B2, B3(a) (insofar as variation in temperature is concerned) or B3(b), as applicable, and while this insurance is in force.

4 C5. DELAY In no case shall this insurance cover loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Part B4(a), above). C6. INSOLVENCY OF CARRIER In no case shall this insurance cover loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel or aircraft where, at the time of loading of the subject-matter insured on board the vessel or aircraft, 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 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. C7. FRUSTRATION OF THE ADVENTURE In no case shall this insurance cover any claim based upon loss of or frustration of the voyage or adventure when cover under Part B5 War Cover and Part B6 Strikes Cover, applies. C8. NUCLEAR WEAPONS OF WAR In no case shall this insurance cover 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. C9. SHIPMENTS ON DECK In no case shall this insurance cover loss, damage or expense caused by water, from any source and in any form, when the goods are carried on the deck of a vessel or craft and are not packed in fully enclosed ISO containers of solid wall and roof construction. C10. CLIMATIC CHANGES In no case shall this insurance cover loss damage or expense arising from normal atmospheric or climatic changes of the transit. C11. RADIOACTIVE CONTAMINATION 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 or by or arising from: (a) ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; (b) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; (c) any weapon of war employing nuclear or atomic fission and/or fusion or other like reaction or radioactive force or matter. C12. SHELF LIFE In no case shall this insurance cover loss damage or expense caused by or resultant from the natural shelf life expiry of the subject-matter insured. C13. CONTAGIOUS DISEASES This insurance does not cover loss, damage, expense, deterioration or condemnation caused by contagious diseases of any nature whatsoever or by the notice of outbreak of any such disease anywhere in the world whether at the time of such loss, damage, expense, deterioration or condemnation the goods are in New Zealand or other countries or territories in the world or in the course of transit anywhere in the world. C14. EARTHQUAKE FROZEN MEAT When the goods are frozen or chilled meat and are on shore, in no case shall this insurance cover loss damage or expense caused directly or indirectly by earthquake, volcanic eruption and/or fire resulting therefrom. C15. EARTHQUAKE ONSHORE IN NEW ZEALAND Applicable solely to storage in New Zealand other than storage during the ordinary course of transit. Unless otherwise specified in the SCHEDULE this insurance does not cover loss damage or expense caused by earthquake, volcanic activity, tsunami, subterranean fire or the consequences thereof. C16. THEFT FROM OWN CONVEYANCES In respect of goods carried in vehicles owned and/or operated by the Assured this insurance does not cover loss by theft unless caused by forcible entry into or from the securely locked vehicle or resulting from actual or threatened physical violence to the driver or operator of the vehicle. C17. PERISHABLE GOODS NOT CARRIED UNDER TEMPERATURE CONTROLLED REFRIGERATION This insurance does not cover loss, damage or expense due to temperature variations or absence of refrigeration unless caused by: (a) breakdown of refrigerating machinery resulting in its stoppage for a period of not less than 24 consecutive hours; (b) fire or explosion; (c) vessel or craft being stranded grounded sunk or capsized; (d) aircraft crashing or crash landing; (e) overturning or derailment of land conveyance; (f) collision or contact of vessel craft aircraft or conveyance with any external object other than water. 4

5 C18. PERISHABLE GOODS BY SEA OR ON LAND When the goods are frozen or chilled, this insurance does not cover: (a) loss damage or expense arising from any failure of the Assured or their servants to take all reasonable precautions to ensure that the subject-matter insured is kept in refrigerated or, where appropriate, properly insulated and cooled space; (b) loss damage or expense arising from the absence shortage or withholding of equipment, power, fuel, coolant, refrigerant or labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion. C19. NOTICE OF LOSS PERISHABLE GOODS When the goods are frozen or chilled (other than frozen meat), this insurance does not cover any loss damage or expense otherwise recoverable hereunder unless prompt notice thereof is given to the Underwriters and, in any event, not later than 30 days after the termination of this insurance. C20. MECHANICAL OR ELECTRICAL DERANGEMENT This insurance does not cover loss, damage or expense resulting from mechanical or electrical or electronic derangement or mis-alignment unless proximately caused by: (a) visible, external damage to the subject-matter insured, its packing or ISO container; or (b) any package or container being dropped whilst loading onto or unloading from the vessel, craft or conveyance. C21. USED OR SECOND- HAND GOODS When the goods are used or second-hand this insurance does not cover: (a) rust, oxidation and discoloration unless proximately caused by entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, liftvan or place of storage; (b) scratching, chipping and denting, unless proximately caused by any package or container being dropped whilst loading onto or unloading from the vessel, craft or conveyance. C22. UNSEAWORTHINESS / UNFITNESS SEA OR LAND When shipment is by sea, in no case shall this insurance cover loss damage or expense arising from: (a) unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the subjectmatter insured, where the Assured are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein. 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, Exclusion C22(a) shall not apply. 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. (b) unfitness of container liftvan or land conveyance for the safe carriage of the subject-matter insured, where loading therein is carried out prior to attachment of this insurance or by the Assured or their servants. C23. UNAIRWORTHINESS / UNFITNESS - AIR When shipment is by air, in no case shall this insurance cover loss damage or expense arising from unfitness of aircraft conveyance container or liftvan for the safe carriage of the subject-matter insured, where the assured or their servants are privy to such unfitness at the time the subject-matter insured is loaded therein. C24. EMBARGO, REJECTION OR PROHIBITION This insurance does not cover loss, damage or expense caused by embargo, or by rejection, prohibition or detention by the government of the country of import or their agencies or departments, but does not exclude loss of or damage to the subject-matter insured caused by risks insured hereunder and sustained prior to any such embargo, rejection, prohibition or detention. D. DURATION OF COVER D1. OTHER THAN COVER FOR WAR Unless otherwise specified in the SCHEDULE: (a) OTHER THAN COVER FOR FROZEN MEAT 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: (i) on delivery to the Consignees or other final warehouse or place of storage at the named destination; (ii) on delivery to any other warehouse or place of storage, whether prior to or at the named destination that the Assured elects to use either: for storage other than in the ordinary course of transit; or allocation or distribution; or seafreight shipments, on the expiry of 60 days after completion of discharge overside of the overseas vessel at the final port of discharge; airfreight shipments, on the expiry of 30 days after unloading the subject-matter insured from the aircraft at the final place of discharge; frozen foods (other than frozen meat) on the expiry of 5 days after discharge from the overseas vessel at the final port of discharge; whichever shall first occur.

6 (b) FROZEN MEAT This insurance attaches from the time the goods are loaded into the conveyance at the freezing works or cold store at the place named herein for the commencement of the transit. (i) This insurance continues during the ordinary course of transit to and whilst in: cold store at the destination named herein; or any other cold store which the Assured elect to use following discharge of the goods from the overseas vessel at the port of discharge either: - for storage other than in the ordinary course of transit; or - for allocation or distribution. (ii) This insurance terminates: for transit to a destination in the Continent of Europe (including Eire and the United Kingdom), U.S.A. or Canada on the expiry of 30 days; for transit to a destination elsewhere on the expiry of 5 days; after final discharge of the goods from the overseas vessel at the port of discharge. (iii) Any disposal of the goods other than by storage as in Part D1(b)(i) above (except with the prior consent of the Underwriters) or any removal from cold store before the expiry of the relevant period in Part D1(b)(ii) above shall terminate the insurance on such goods. (c) APPLICABLE TO ALL GOODS (i) If, after discharge overside from the overseas vessel/aircraft at the final port/airport 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. (ii) This insurance shall remain in force (subject to termination as provided for above and to the provisions of Part D1(c)(iii) 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/air carriers or charterers under the contract of affreightment/carriage. (iii) If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port/airport or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Parts D1(a), D1(b), D1(c)(i) and D1(c)(ii) 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: until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of: General Goods by seafreight: days; All other goods: days; after arrival of the goods hereby insured at such port/airport or place, whichever shall first occur, or if the goods are forwarded within the said period of 60 days or 30 days, as provided above, (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Parts D1(a), D1(b), D1(c)(i) and D1(c)(ii) above. (iv) Where, after the 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. D2. COVER FOR WAR (a) SHIPMENTS BY POST This insurance attaches only as the subject-matter insured and as to any part as that part leaves the premises of the senders at the place named in the insurance for the commencement of the transit and continues, but with the exclusion of any period during which the subject-matter insured is in packers premises, until the subject-matter insured and as to any part as that part is delivered to the address on the postal package(s) when this insurance shall terminate. (b) SHIPMENTS BY SEAFREIGHT AND AIRFREIGHT This insurance (i) attaches only as the subject-matter insured and as to any part as that part is loaded on an overseas vessel or aircraft for the commencement of the air transit insured, and (ii) terminates, subject to D2(b)(v) and D2(b)(vi) below, either: as the subject-matter insured and as to any part as that part is discharged from an overseas vessel/aircraft at the final port/airport or place of discharge, or on expiry of 15 days counting from midnight of the day or arrival of the vessel/aircraft at the final port/airport or place of discharge, whichever shall first occur; nevertheless, subject to prompt notice to the Underwriters and to an additional premium, such insurance.

7 (iii) reattaches when, without having discharged the subject-matter insured at the final port/airport or place of discharge, the vessel/aircraft sails/departs therefrom, and (iv) terminates, subject to D2(b)(v) and D2(b)(vi) below, either: as the subject-matter insured and as to any part as that part is thereafter discharged from the vessel/ aircraft at the final (or substituted) port/airport or place of discharge, or on expiry of 15 days counting from midnight of the day of re-arrival of the vessel/aircraft at the final port/airport or place of discharge or arrival of the vessel/aircraft at a substituted port/airport or place of discharge, whichever shall first occur. (v) If during the insured voyage/flight the overseas vessel/aircraft arrives at an intermediate port/ airport or place to discharge the subject-matter insured for on-carriage by overseas vessel or aircraft, or the goods are discharged from the vessel at a port or place of refuge, then, subject to D2(b)(vi) 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/aircraft at such port/airport or place, but thereafter reattaches as the subject-matter insured and as to any part as that part is loaded on an on-carrying overseas 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/airport or place. If the goods are on-carried within the said period of 15 days or if the insurance reattaches as provided in this Clause D2(b)(v): where the on-carriage is by overseas vessel this insurance continues subject to the terms of these clauses, or where the on-carriage is by aircraft, the War Cover as per Part B5 shall be deemed to form part of this insurance and shall apply to the on-carriage by air. (vi) 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 D2(b)(ii). 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: 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/aircraft for the voyage/flight; in the case of the subject-matter not having been discharged, when the vessel/aircraft sails/ departs from such deemed final port/airport of discharge; thereafter such insurance terminates in accordance with D2(b)(iv). (vii) In respect of shipments by seafreight, 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 overseas vessel, but in no case beyond the expiry of 60 days after discharge from the overseas vessel unless otherwise specially agreed by the Underwriters. (viii) Subject to prompt notice to the 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, air carrier or charterers under the contract of affreightment. (For the purpose of Clauses D2(b)(i) and D2(b)(viii), inclusive: 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; overseas vessel shall be deemed to mean a vessel carrying the subject-matter from one port or place to another where such voyage involves a sea passage by that vessel.) (ix) 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. (x) Anything contained in this insurance which is inconsistent with: Exclusion C7 (Frustration of the Adventure); Exclusion C8 (Nuclear Weapons of War); Clauses D2(a) to D2(b)(viii), inclusive; shall, to the extent of such inconsistency, be null and void. E. CLAIMS E1. INSURABLE INTEREST (a) In order to recover under this insurance the Assured must have an insurable interest in the subjectmatter insured at the time of the loss. (b) Subject to E1(a) 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.

8 E2. CLAIMS PAYABLE Claims payable in New Zealand or as may be shown on policies/certificates issued under this open policy. E3. FORWARDING CHARGES This clause does not apply to War Cover or Strikes Cover 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 E3, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Part C above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants. E4. CONSTRUCTIVE TOTAL LOSS 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. E5. ADJUSTMENT CLAUSE Applicable solely to frozen and chilled meat Should the subject-matter insured or any part thereof not be shipped any claim in respect thereto shall be adjusted on the basis of its insured value less, where included, freight, duty and all charges not incurred. E6. INCREASED VALUE (a) 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. (b) 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. E7. BENEFIT OF INSURANCE INURE CLAUSE E8. MINIMISING LOSSES E9. AVOIDANCE OF DELAY E10. CLAIMS PROCEDURE DUTY OF THE CLAIMANT 8 This insurance shall not inure to the benefit of the carrier or other bailee. (a) It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder: (i) to take such measures as may be reasonable for the purpose of averting or minimising such loss; and (ii) to ensure that all rights against carriers, bailees or 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. (b) 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. It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control. DUTY OF THE CLAIMANT 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 and to ensure that all rights against Carriers, Bailees or other third parties are properly preserved and exercised. NOTIFICATION OF CLAIM As soon as the Assured is aware of any loss that is likely to result in a claim under this insurance they or their agent must: (a) immediately notify New Zealand Insurance or the claim settling agent named on the marine insurance certificate or, if no agent is specified, the nearest Lloyd s Agent. It is highly probable they will want to engage the services of an independent surveyor to oversee the handling of the claim and guide you through the procedures; (b) lodge a preliminary claim (Pro-forma Claim) on the shipowner, airline operator, road or rail carriers, port authorities and any other bailee associated with the transit. The preliminary claim needs to be just a general advice containing sufficient information to identify the goods and the nature of the loss or damage.

9 TAKING DELIVERY The Assured or their agent must: (a) examine the goods closely and, in the event of any obvious damage, suitably note the delivery receipt; (b) if goods are missing, note the number of packages short on the delivery receipt; (c) not, under any circumstances, issue a clean receipt for obviously damaged or missing goods; (d) if the goods are packed in a full container (FCL), examine the exterior of the container and note any damage; (e) if the goods are packed in a full container (FCL), examine the seal affixed to the door and check that: (f) it is intact; it has the same number as recorded on original shipping documents. Seals should be removed only by a responsible official and, in the event of loss, should be retained as evidence. if the goods are perishable and the loss is caused by temperature irregularity, retain any temperature recording charts; (g) if the loss or damage is apparent on taking delivery, request, in writing, the attendance of the carrier or bailee at a joint inspection. If it is possible, do not unload or unpack the goods until a joint inspection has been carried out; (h) if the loss or damage is not apparent from the external appearance of the goods, lodge a preliminary claim against all carriers and bailees within 3 days of delivery and request their attendance at a joint inspection. AFTER DELIVERY (a) If the loss has arisen from water damage and the goods were packed in a container, check for leaks. If it is not clear where water entered identify the place by using a hose. Remember to water test rubber door seals if the water damaged goods were stowed near the door end of the container. The location of a leak can sometimes be identified by standing in a container, closing the door and looking for spots of light. (b) Take photographs of the damage and, if container delivery is involved, endeavour to film the loss in situ. If a camera is not available, draw a sketch plan. (c) Retain all packing materials for independent inspection. In the event of the container being defective, if possible, do not return it until independent inspection has been carried out. (d) Take all reasonable measures to reduce the loss and safeguard the goods from further harm. (e) Maintain a record of any costs you incur in reducing or safeguarding the goods from further loss. Retain all invoices and vouchers associated with the damage. (f) Once all costs are known complete a valued claim against the carrier and any other bailee involved with the carriage. The claim should be based on actual loss suffered. (g) Assemble full documentation (refer below) on the claim and send to New Zealand Insurance or to the appointed independent surveyor. DOCUMENTATION Provision of full and complete documentation assists in decisions on claims and speeds up their processing. To enable claims to be dealt with promptly, the Assured or their servants or agents are advised to submit all documentation without delay, including as applicable: (a) original certificate or policy of insurance; (b) original bill of lading, airwaybill, consignment note or other contract of carriage. It is important to ensure that the document of carriage is an original or a copy containing all the conditions of transport (usually on the reverse); (c) supplier s invoice for the full shipment. If this does not specify the terms of sale this information should be separately provided; (d) shipping invoice together with the shipping specifications, weight dockets and packing lists; (e) delivery dockets. This will include tally notes, delivery receipts, EWP notes ( Examined Without Prejudice. This is a delivery docket issued by a shipowner acknowledging that the goods have been examined and deficiencies found but is not admitting liability); (f) original or copy of any temperature recording chart; (g) invoices for repair and other costs incurred in remedying damage or preventing loss; (h) sale notes or auction receipts where damaged goods are sold; (i) (j) copy of the preliminary (Pro-forma) claim and final, valued claim on the carrier or bailee and the responses received; copy of the invitation to the carrier or bailees to attend a joint inspection of the goods and the response received; (k) copies of any other correspondence exchanged with the carrier or bailee.

10 E11. PROGRESS PAYMENTS In the event of loss, damage or expense giving rise to a claim under this insurance, the Company will, at the request of the Assured, make progress claim payment(s) on submission by the Assured of complete documentation for as much of the loss, damage or expense as is known at the time the request is made. No progress claim payment will be made under this clause until the amount of the loss is known to exceed the amount of any deductible or excess to which the claim is subject. The deductible or excess amount will then be deducted from the first progress payment made. The Assured s right to effect full recovery under this policy in respect of the loss, damage or expense, will not be prejudiced by acceptance of a progress claim payment. E12. TRADEMARKS OR BRANDING In the event of damage to goods bearing a trade or brand mark, or the sale of which carries or implies a guarantee, then the salvage value of such damaged goods shall be determined after removal of all brand or trade marks if such action is possible. Where the trade or brand marks cannot be removed from packaging the goods are to be repacked into plain packaging. Expenses incurred in removing trade or brand marks or the costs of repacking are payable, in addition to the claim for damage, up to an amount not exceeding the sum insured of the items damaged. When the goods sustain partial loss or damage as a result of a peril insured hereunder (a) and cannot be cleaned and/or repaired to a condition where they may be marketed; or, (b) the cost of cleaning and/or repairing would exceed their insured value then, should the Assured, in order to protect their commercial interests, elect not to dispose of the goods by salvage sale, any claim recoverable hereunder is to be adjusted in accordance with Sections 71 and 72 of the Marine Insurance Act, 1908, (and any Amendments thereto) with the damaged values being that which could have been obtained from salvage sale. E13. CLAIMS FOR LABELS In the event of damage to labels, capsules or wrappers the Company shall not be liable for more than the amount sufficient to pay the cost of new labels, capsules or wrappers, plus the cost of reconditioning the goods, but in no event shall the Company be liable for more than the insured value thereof. E14. PAIRS & SETS Where any insured item consists of articles in a pair or set, this insurance shall not pay more than the value of any particular part or parts which may be lost or damaged, without reference to any special value which such article or articles may have as part of such pair or set, or more than a proportionate part of the sum insured on such pair or set. E15. SHIPMENTS OF MACHINERY APPLICABLE TO NEW MACHINERY OR SIMILAR GOODS In the event of loss of or damage to any part or parts of an insured machine caused by a peril covered by the Policy the sum recoverable shall not exceed the cost of replacement or repair of such part or parts plus charges for forwarding and refitting, if incurred, but excluding duty unless the full duty is included in the amount insured, in which case loss, if any, sustained by payment of additional duty shall also be recoverable. Provided always that in no case shall liability of the Underwriters exceed the insured value of the complete machine. APPLICABLE TO USED MACHINERY OR SIMILAR GOODS In the event of claim for loss or damage to any part of the insured interest 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 parts lost or damaged, plus additional charges for forwarding and refitting the new part or parts if incurred, as the insured value bears to the value of a new machine. F. GENERAL F1. COMMENCEMENT / TERMINATION OF OPEN POLICY AND NOTICE PERIOD FOR CANCELLATION The inception date of this open policy is the FROM date specified in the SCHEDULE. The policy may be cancelled by either the Company or the Assured giving 30 days notice in writing to take effect from the date of such notice but risks covered under Part B5 (War) may be cancelled at 7 days notice, risks covered under Part B6 (Strikes) may be cancelled at 7 days notice, or at 48 hours notice in respect of shipments to or from the United States of America. Notice shall commence from midnight on the day when it is issued but cancellation shall not apply to any risks that have attached in accordance with the cover granted hereunder before the cancellation becomes effective. The Company may give notice to the Assured s insurance agent or representative. The TO date specified in the SCHEDULE is a review date. 10

11 F2. VOYAGES / TRANSITS INSURED Unless otherwise specified in the SCHEDULE voyages/transits from ports and/or places world-wide to New Zealand, within New Zealand and from New Zealand to ports and/or places world-wide are insured by road, rail, air and sea conveyances. However, this insurance specifically excludes voyages/transits to from or within: Arabian/Persian Gulf countries israel Jordan Lebanon Syria libya Afghanistan rwanda Somalia Ethiopia (including Eritrea) Angola (including Cabinda) Liberia Guinea-Bissau Sierra Leone Cambodia Commonwealth of Independent States countries Haiti nicaragua Subject to insurable interest, attachment and termination of this insurance to be as provided in Part D. Duration of Cover. F3. DECLARATIONS / PAYMENT OF PREMIUMS (a) It is a condition of this policy that the Assured are bound to declare hereunder every consignment without exception, the Company being bound to accept same up to but not exceeding the amount specified in Clause F5 below. Unless otherwise stated in the SCHEDULE an agreed deposit premium is to be paid to the Company based upon the estimated aggregate value of all sendings to be insured hereunder between the FROM and TO dates specified in the SCHEDULE. The premium is to be adjusted, based on the actual aggregated value of all sendings insured hereunder between the FROM and TO dates specified in the SCHEDULE within 60 days from the TO review date. (b) When shipment is by sea, the marine cargo transit rates agreed for this insurance apply only to cargoes and/or interests carried by mechanically self-propelled vessels of steel construction, classed as below by one of the following Classification Societies. Lloyd s Register American Bureau of Shipping Bureau Veritas 100A1 or B.S. A1 1 3/3 E China Classification Society CSA 5/5 Germanischer Lloyd 100 A5 Korean Register of Shipping KRS 1 Maritime Register of Shipping Nippon Kaiji Kyokai Norske Veritas Polish Register of Shipping India Register of Shipping Registro Italiano PROVIDED SUCH VESSELS ARE: (i) KM ns* 1A1 KM SUL 100A 1.1.Nav.L not bulk and/or combination carriers over 10 years of age. (ii) not mineral oil tankers exceeding 50,000 GRT which are over 10 years of age. (iii) not over 15 years of age, OR Class without any modification (iv) over 15 years of age but not over 25 years of age and have established and maintained a regular pattern of trading on an advertised schedule to load and unload at specified ports. Chartered vessels and also vessels under 1000 GRT that are mechanically self-propelled and of steel construction must be classed as above and not over the age limitations specified above. The requirements of this clause F3(b) do not apply to any craft, raft or lighter, used to load or unload the vessel, whilst they are within the port area. Cargoes and/or interests carried by mechanically self-propelled vessels not falling within the scope of the above are held covered subject to a premium and on conditions to be agreed. F4. BASIS OF VALUATION Unless otherwise specified in the SCHEDULE or agreed prior to transit commencing, the basis of valuation shall be: (a) Imports and exports: The prime cost of the goods or merchandise plus the expenses of and incidental to shipping, the freight for which the Assured is liable, the charges of insurance and 10% (C.I.F. + 10%). However, in respect of Free into Store (F.I.S.), or similar terms of sale, the basis of valuation for declaration purposes is to be the invoiced selling price to the buyer and, for claims, the invoiced selling price less costs not incurred at the time of loss. (b) Inter-New Zealand sendings For the purpose of declarations, the selling price to the purchaser or purchase price from the seller, plus freight and incidental shipping charges for which the Assured is liable, if not already included. Claims to be settled on the same basis less costs not incurred at the time of loss. (c) Second-hand and returned goods: Notwithstanding anything contained herein to the contrary the basis of valuation shall be the indemnity value. 11

12 F5. LIMITS OF LIABILITY This policy is for an open amount but: (a) the amount declarable in respect of any one vessel, aircraft, conveyance or location; and (b) the amount payable in respect of any one accident or series of accidents arising from the same event in any one location; shall not exceed the sum insured as specified in the SCHEDULE. F6. CHANGE IN CIRCUMSTANCE In the event of any change in circumstances, since the inception of the policy, which will materially increase the risk of claim, the Assured shall immediately notify the Company of such change. The Company shall then be entitled to adjust the premium and/or the terms of this policy with immediate effect. Failure to comply with this obligation shall render the policy voidable at the Company s option from the date the Assured knew, or ought to have known, of the change in circumstance. F7. OTHER INSURANCE The Assured shall immediately give notice to the Company of any other policy of insurance covering the goods for any of the same risks or liability as this insurance. If at the time any claim arises under this policy there is any other insurance covering the goods for the same risks or liability, the Company shall only pay over and above the sum payable under that other insurance. F8. GOODS & SERVICES TAX In regard to premium and claim transactions in New Zealand, provided GST is recoverable by the Company under the Goods and Services Tax Act 1985, then: (a) all sums insured stated in the SCHEDULE exclude GST; and (b) GST will be added, where applicable, to claims payments. International Chamber of Commerce Trading Terms (INCOTERMS) PASSING OF RISK SALE TERMS PASSING OF RISK EXW Ex Works FCA Free Carrier FAS Free alongside ship FOB Free on board or CFR Cost & freight goods at buyer s risk from the time of leaving premises of origin. goods at seller s risk until placed into the care of the carrier nominated by the buyer; then at buyer s risk. Goods at seller s risk until placed alongside the overseas vessel ready for loading; then at buyer s risk. Goods at seller s risk until placed onboard the overseas vessel or aircraft; then at buyer s risk. CIF Cost, insurance & freight Goods at seller s risk until placed on board overseas vessel or aircraft; then at buyer s risk. However, the seller is responsible for arranging insurance for the whole transit. CPT Carriage paid to CIP goods at seller s risk until delivered into care of first carrier; then buyer s risk. Carriage & insurance paid to Goods at seller s risk until delivered into care of the first carrier then at buyer s risk. However, the seller is responsible for arranging insurance up to the named destination. DAF Delivered at frontier DES Delivered ex ship Goods at seller s risk until delivered at the named frontier place; then at buyer s risk. goods at seller s risk until delivered on board the vessel at the usual unloading point at the named port of destination; then at buyer s risk. DEQ Delivered ex quay, duty paid Goods at seller s risk until placed on the quay/wharf at the agreed port of destination; then buyer s risk. DDU Delivered duty unpaid or DDP Delivered duty paid Goods at seller s risk until delivered at the agreed place of destination; then at buyer s risk. MARINE CARGO OPEN POLICY Underwritten by NZI, a business division of IAG New Zealand Limited IMPORTANT: PLEASE EXAMINE THIS POLICY AND IF IT DOES NOT MEET YOUR REQUIREMENTS, KINDLY RETURN IT AT ONCE TO YOUR BROKER OR AGENT OR TO OUR OFFICE OF ISSUE MARINE MARINE CARGO CARGO - OPEN POLICY OPEN POLICY Wording NZ798/3 MAC 07/