INTERNATIONAL SHIPPING INSURANCE TERMS AND CONDITIONS

The following "Standard Conditions" are liable to change from time to time as Underwriters deem fit. Below are our current Conditions. Please consult your terms, conditions and endorsements applicable to your policy, as these will be the ones governing your policy. If you are in any doubt of what terms, conditions and endorsements will apply to your policy, please contact your agent.

SHIPMENTS INSURED:

1. This insurance shall attach to all shipments 
   
    
   1. to or from the Assured, for their own account;
   2. where the Assured is acting as the agent for others and the Assured receives written instructions to insure the shipment, prior to sailing of vessel and prior to any known or reported loss or accident; and/or
   3. to or from others for the account of the Assured.
      
       
2. Reshipments
   
   This insurance also covers in cases of reshipment beyond or to any other destination other than that named in the original report or reports, subject to additional premium if required. The assured agrees to report the facts of such situation as they become known to it.
   
    
3. Drop Shipments
   
   It is understood and agreed that this policy covers property insured hereunder contained in its original import packing shipped at time of discharge from overseas transporting conveyance directly to Assured's customer in the U.S.A. The Assured hereby agrees to report as soon as practicable such shipments as are covered by this clause and to pay premium thereon at rates to be agreed.
   
    
4. Returned Goods Prior to Delivery:
   
   It is understood and agreed that this policy covers goods insured hereunder which, prior to the delivery by ocean carriers, are ordered to the original point of shipment. The Assured hereby agrees to report as soon as practicable such shipments as are covered by this clause and to pay premium thereon at rates to be agreed.
   
    
5. Returned Goods Continuously Insured:
   
   It is understood and agreed that this policy covers shipments of returned goods which have been continuously insured hereunder, subject to the same terms and conditions as the original export insurance. The Assured hereby agrees to report as soon as practicable such shipments as are covered by this clause and to pay premium thereon at rates to be agreed.
   
    
6. Other Returned Goods:
   
   Returned goods other than as defined in d or e above, are insured: Free of particular average, unless caused by the vessel being stranded, sunk, burnt, on fire or in collision at additional premium to be agreed otherwise subject to all other terms and conditions of this policy.
    

PERILS:

1. Covered Perils
   
    
   1. PERILS: Touching the adventures and perils which these Assurers are contended to bear, and take upon themselves, in this voyage, they are of the seas, fires, jettisons, assailing thieves, barratry of the Master and Mariners, and all other like perils, losses and misfortunes that have or shall come to the hurt, detriment or damage of the said goods and merchandise, or any part thereof except as may be otherwise provided for herein or endorsed hereon.
      
       
   2. EXPLOSION CLAUSE: Including the risk of explosion, howsoever or whosesoever occurring during the currency of this insurance, unless excluded by the F. C. & S. Warranty or the S. R. & C.C. Warranty set forth herein.
      
       
   3. SHORE CLAUSE: Where this insurance by its terms covers goods while on docks, wharves or elsewhere on shore, and/or during land transportation, it shall include the risks of collision, derailment, overturning or other accident to the conveyance, fire, lightning, sprinkler leakage, cyclones, hurricanes, earthquakes, floods (meaning the rising of navigable waters), and/or collapse or subsidence of docks or wharves, even though the insurance be otherwise F.P.A. 
      
       
   4. INCHMAREE CLAUSE: This insurance is also specially to cover any loss of or damage to the interest insured hereunder, through the bursting of boilers, breakage of shafts or through any latent defect in the machinery, hull or appurtenances, or from faults or errors in the navigation and/or management of the vessel (within the meaning of Section 3 of the Harter Act, 1893) by the master, mariners, mates, engineers or pilots.
      
       
2. Non-Covered Perils
   
    
   1. F.C. & S. Warranty: NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE CONTRARY THIS INSURANCE DOES NOT COVER LOSS, DAMAGE OR EXPENSE RESULTING FROM: 
      
       
      1. capture, seizure, arrest, restraint, detainment, confiscation, preemption, requisition or nationalization, and the consequences thereof or any attempt thereat, whether in time of peace or war and whether lawful or otherwise;
         
          
      2. (i) any weapon or war employing atomic or nuclear fission and/or fusion or other reaction or radioactive force or matter or (ii) any mine or torpedo;
         
          
      3. hostilities or warlike operations (whether there be a declaration of war or not), but this warranty shall not exclude collision or contact with aircraft, or with rockets or similar missiles (other than weapons of war) or with any fixed or floating object (other than mine or torpedo), stranding, heavy weather, fire or explosion unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purposes of this warranty "power" includes any authority maintaining naval, military or air forces in association with a power;
         
          
      4. civil war, revolution, rebellion, insurrection, or civil strife arising therefrom; or from the consequences of the imposition of martial law, military or usurped power; or piracy.
         
          
   2. S.R. & C.C. Warranty: NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE CONTRARY THIS INSURANCE DOES NOT COVER LOSS, DAMAGE OR EXPENSE RESULTING FROM:
      
       
      1. strikes, lockouts, labor disturbances, riots, civil commotions, or the acts of any person or persons taking part in any such occurrences or disorders,
         
          
      2. vandalism, sabotage or malicious act, which shall be deemed also to encompass the act or acts of one or more persons, whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting therefrom is accidental or intentional.
         
          
   3. NUCLEAR EXCLUSION: NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE CONTRARY, INCLUDING BUT NOT LIMITED TO IN THE EVENT THAT THIS POLICY IS EXTENDED TO COVER PROPERTY PRIOR TO THE ATTACHMENT OR SUBSEQUENT TO THE EXPIRATION OF THE COVER PROVIDED BY THE MARINE EXTENSION CLAUSES, THIS INSURANCE DOES NOT COVER LOSS, DAMAGE OR EXPENSE RESULTING FROM:
      
       
      1. any claim for loss, damage or expenses arising directly or indirectly from any nuclear incident, reaction, radiation or any radioactive contamination, all whether controlled or uncontrolled, occurring while said property is within the United States or any territory of the United States, the Canal Zone or Puerto Rico, or arising from a source therein, and whether the loss, damage or expense be proximately or remotely caused thereby, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured against in this Policy. However, subject to the foregoing and all provisions of this Policy, if this Policy insures against the peril of fire, then direct loss by fire resulting from nuclear incident, nuclear reaction, or nuclear radiation or radioactive contamination is insured against by this Policy.
         
          
   4. INSTITUTE EXTENDED RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE 01/11/02 - CL356A 
      
      This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. 
      
       

      	1.	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 similar peaceful purposes.

      
       

   5. INSTITUTE CHEMICAL, BIOLOGICAL, BIO-CHEMICAL, ELECTROMAGNETIC WEAPONS AND CYBER ATTACK EXCLUSION CLAUSE 01/11/02 
      
      This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith. 
      
       

      	1.	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.

      
       

   6. Y2K Warranty: This Policy does not cover any loss, damage, liability or expense arising from, or in any way connected, whether directly or indirectly, with: 
      
       
      1. the actual or anticipated failure or inability of any computer or electronic device or component or system or embedded programming or software, whether or not belonging to or in the possession of the Insured or Additional Insured(s): -
         
          
      2. the ability to correctly and unambiguously assign any date to the correct day, week, year or century;
         
          
      3. the ability to correctly recognise, sequence or compute any date, which is or is intended to be beyond 31st December 1998;
         
          
      4. the ability to continue to operate as it would have done had its current date, the true date and any other date relevant to any function being carried out by it been prior to 1st January 1999;
         
          
      5. the use of any arbitrary, ambiguous or incompletely defined date or date-like code in any data, software or embedded programme;
         
          
      6. Any measures taken with the intention of averting or minimising any of the above. 
         
          
3. DELAY/ LOSS OF MARKET: This policy does not cover claims for loss of market or for loss, damage or deterioration arising from delay, whether caused by a peril insured against or otherwise, unless expressly assumed in writing hereon. 
   
    
4. INHERENT VICE: This policy does not cover any loss, damage, liability or expense arising from, or in any way connected, whether directly or indirectly, with inherent vice, ordinary leakage, ordinary loss in weight or volume or ordinary wears and tears.
   
    
5. PACKING: This policy does not cover any loss, damage, liability or expense arising from, or in any way connected, whether directly or indirectly with defective or unsuitable packing, packaging or preparation of the goods insured for carriage.
    

UNDER DECK SHIPMENTS:

All goods and/or merchandise shipped except while On Deck of ocean vessel under an On Deck bill of lading and except as may be hereinafter especially provided, are insured:

Warranted free from Particular Average unless the vessel or craft be stranded, sunk, or burnt, but notwithstanding this warranty this Company is to pay any loss of or damage to the interest insured which may reasonably be attributed to fire, collision or contact of the vessel and/or craft and/or conveyance with any external substance (ice included) other than water, or to discharge of cargo at port of distress. The foregoing warranty, however, shall not apply where broader terms of Average are provided for hereinafter.

ON DECK SHIPMENTS:

All goods and/or merchandise shipped while On Deck of ocean vessel under an On Deck bill of lading are insured:

Free of Particular Average unless caused by the vessel and/or interest insured being stranded, sunk, burnt, on fire or in collision with another ship or vessel or with ice or with any substance other than water, but liable for jettison and/or washing overboard, irrespective of percentage. The foregoing clause, however, shall not apply where broader terms of Average are provided for herein.

CONTAINERIZED SHIPMENTS:

All goods and/or merchandise shipped on board the ocean vessel in containers and/or vans and/or lighters are insured subject to the provisions of this policy applying to Under Deck shipments, provided such goods are subject to an Under Deck or an optional Under Deck/On Deck bill of lading.

SHIPMENTS NOT INSURED:

This policy excludes shipments:

1. purchased by the Assured on terms which include ocean marine insurance for the benefits of the Assured; and/or
   
    
2. sold by the Assured on terms which do not oblige the Assured to provide ocean marine insurance for the benefit of the buyer.
   
   In case of shipments by air, these exclusions shall apply as though the phrase "ocean marine insurance" reads "insurance during the air voyage."

CONVEYANCE:

Shipments can only be transported by steamer and/or motor vessels and/or aircraft and/or mail and/or parcel post and including connecting conveyances. Shipments can not be transported by sailing vessels with or without auxiliary power except as connecting conveyances.

CRAFT, ETC., CLAUSE:

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

VALUATION:

The value of shipments insured under this policy shall be the amount of shipper's invoice, including all charges therein plus any prepaid and/or advanced and/or guaranteed freight not included in the invoice plus 10 %.

All amounts expressed in foreign currencies are to be converted to US dollars at bankers' sight rate of exchange on the date of the ocean bill of lading or air waybill.

INSURING TERMS:

Average Terms and Conditions Clause - as per policy

GENERAL AVERAGE:

General Average and Salvage Charges payable according to United States laws and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part) if in accordance with the Contract of Affreightment. Failing any provision in or should there be no Contract of Affreightment, payable in accordance with the Laws and Usages of the Port of New York.

This policy shall pay in full (up to this policy's limit of liability) a claim for General Average or Salvage Charges even though the sum insured may be less than the contributing value or actual value of the goods.

LABELS CLAUSE:

In case of damage affecting labels, capsules or wrappers, these Assurers, if liable therefor 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 these Assurers be liable for more than the insured value of the damaged merchandise.

DEVIATION CLAUSE:

This insurance shall not be vitiated by any unintentional error in description of vessel, voyage or interest, or by deviation, over-carriage, change of voyage, transshipment or any other interruption of the ordinary course of transit, from causes beyond the control of the Assured. It is agreed, however, that any such error, deviation or other occurrence mentioned above shall be reported to these Assurers as soon as known to the Assured, and additional premium paid if required.

SUE AND LABOR:

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

OTHER INSURANCE:

In case the interest hereby insured is covered by other insurance (except as hereinafter provided) the loss shall be collected from several policies in the order of the date of their attachment, insurance attaching on the same date to be deemed simultaneous and to contribute pro rata. However, where any fire insurance, or any insurance (including fire) taken out by any carrier or bailee is available to the beneficiary of this policy, or would be so available if this insurance did not exist, then this insurance shall be void to the extent that such other insurance is or would have been available. It is agreed, nevertheless, that where these Assurers are thus relieved of liability because of the existence of other insurance, these Assurers shall receive and retain the premium payable under this policy and, in consideration thereof, shall guarantee the solvency of the companies and/or underwriters who issued such other insurance and the prompt collection of the loss thereunder to the same extent (only) as these Assurers shall have been relieved of liability under the terms of this clause, but not exceeding, in any case, the amount which would have been collectible under this policy if such other insurance did not exist.

WAREHOUSE TO WAREHOUSE CLAUSE:

This insurance attaches from the time the goods leave the Warehouse and/or Store at the place named in the certificate of insurance or declaration of insurance for the commencement of the transit and continues during the ordinary course of transit, including customary transshipment if any, until the goods are discharged overside from the overseas vessel at the final port. Thereafter the insurance continues whilst the goods are in transit and/or awaiting transit until delivered to final warehouse at the destination named in the certificate of insurance or declaration of insurance or until the expiry of 15 days (or 30 days if the destination to which the goods are insured is outside the limits of the port) whichever shall first occur. The time limits referred to above to be reckoned from midnight of the day on which the discharge overside of the goods hereby insured from the overseas vessel is completed. Held covered at a premium to be arranged in the event of transshipment, if any, other than as above and/or in the event of delay in excess of the above time limits arising from circumstances beyond the control of the Assured.

Note: It is necessary for the Assured to give prompt notice to these Assurers when they become aware of an event for which they are "held covered" under this policy and the right to such cover is dependent on compliance with this obligation.

WAREHOUSING & FORWARDING CHARGES, PACKAGES TOTALLY LOST LOADING, ETC.:

Notwithstanding any average warranty contained herein, these Assurers agree to pay any landing, warehousing, forwarding and special charges for which this policy in the absence of such warranty would be liable. Also to pay the insured value of any package or packages which may be totally lost in loading, transshipment or discharge.

VESSEL CLASSIFICATION:

Per approved iron or steel steamers or motor vessels not less than 1,000 tons net register operating in their regular trade, whether owned, or managed and operated under bareboat charter, and per other iron or steel steamers or motor vessels not over 20 years of age nor less than 1,000 tons net register and classed A1 American Record, 100 A1 Lloyd's Register or equivalent, excluding however (a) vessels built solely for service on the Great Lakes and (b) vessels built for military or naval service, including shipments made via regularly scheduled certificated airlines.

MARINE EXTENSION CLAUSES:

Notwithstanding anything to the contrary contained in or endorsed on this policy it is understood and agreed that in consideration of premium as agreed, the following terms and conditions shall apply to all shipments which become at risk under this policy.

1. This insurance attaches from the time the goods leave the warehouse at the place named in the special policy or declaration for the commencement of the transit and continues until the goods are delivered to the final warehouse at the destination named in the special policy, or declaration, or a substituted destination as provided in Clause c. hereunder. 
   
    
2. This insurance specially to cover the goods during,
   
    
   1. deviation, delay, forced discharge, re-shipment and transhipment.
   2. any other variation of the adventure arising from the exercise of a liberty granted to the shipowner or charterer under the contract of affreightment.
      
       
3. In the event of the exercise of any liberty granted to the shipowner or charterer under the contract of affreightment whereby such contract is terminated at a port or place other than the original insured destination, the insurance continues until the goods are sold and delivered at such port or place; or, if the goods be not sold but are forwarded to the original insured destination or to any other destination this insurance continues until the goods have arrived at final warehouse as provided in Clause a.
   
    
4. If while this insurance is still in force and before the expiry of 15 days from midnight of the day on which the discharge overside of the goods hereby insured from the overseas vessel at the final port of discharge is completed, the goods are re-sold (not being a sale within the terms of Clause a) and are to be forwarded to a destination other than that covered by this insurance, the goods are covered hereunder while deposited at such port of discharge until again in transit or until the expiry of the aforementioned 15 days whichever shall first occur. If a sale is effected after the expiry of the aforementioned 15 days while this insurance is still in force the protection afforded hereunder shall cease as from the time of the sale.
   
    
5. Held covered at a premium to be arranged in case of change of voyage or of any omission or error in the description of the interest, vessel or voyage.
   
    
6. This insurance shall in no case be deemed to extend to cover loss, damage or expense proximately caused by delay or inherent vice or nature of the subject-matter insured.
   
    
7. It is a condition of this insurance that there shall be no interruption or suspension of transit unless due to circumstances beyond the control of the Assured.

All other terms and conditions of the policy not in conflict with the foregoing remain unchanged, it being particularly understood and agreed that F.C. & S. clause remains in full force and effect, and that nothing in the foregoing shall be construed as extending this insurance to cover any risks of war or consequences of hostilities.

FPA CLAUSE:

Warranted Free from Particular Average unless the vessel or craft be stranded, sunk or burnt, jettison and washing overboard, but notwithstanding this warranty these Assurers are to pay any loss of or damage to the interest insured which may reasonably be attributed to fire, collision or contact of the vessel and/or craft and/or conveyance with any external substance ice (included) other than water, or to discharge of cargo at port of distress. The forgoing warranty, however, shall not apply where broader terms of Average are provided for herein or endorsed hereon.

MACHINERY CLAUSE:

When the property insured under this policy includes a machine consisting when complete for sale or use of several parts, then in case of loss or damage covered by this insurance to any part of such machine, these Assurers shall be liable only for the proportion of the insured value of the part lost or damaged, or at the Assured's option, for the cost and expense, including labor and forwarding charges, of replacing or repairing the lost or damaged part; but in no event shall these Assurers be liable for more than the insured value of the complete machine.

ISSUANCE OF CERTIFICATES:

Authority is hereby granted the Assured to countersign and issue the form of Certificate of Insurance furnished by these Assurers for any or all shipments in respect of which insurance is provided hereunder and in consideration thereof the Assured warrants that no Certificate of Insurance will be issued with terms thereon varying from the conditions of this Policy and/or any written instructions that are or may be given by these Assurers and/or their Agent from time to time.

The Assured further warrants and agrees to mail or deliver a full and complete copy of each Certificate of Insurance issued, on date of issuance or as soon thereafter as may be practicable, to Navigators Management, Inc., 2300 N Barrington Road, Suite 400, Hoffman Estates, IL 60195.

JURISDICTION AND ARBITRATION:

1. Any claim by Us for premium due may be made at Our option, either under the Arbitration Clause below, or in any Court having jurisdiction over You. You submit to the jurisdiction of the New York state court in New York City as regards such claims.
   
    
2. Subject to the above sub-clause, any controversy or claim arising out of or relating to this Policy (including disputes about its formation or retrospective termination), or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The arbitration shall proceed in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and New York law shall apply. 
   
    
3. No action against this Assurer for the recovery of any claim by virtue of this insurance shall be sustained unless commenced within 1 (one) year from the date of the happening out of which the claim arises, provided that if such limitation is not valid by the law of the place where the policy is issued then such action or proceeding shall be barred unless commenced within the shortest limit of time permitted by the laws of such state.
    

BILL OF LADING CLAUSE:

The Assured are not to be prejudiced by the presence of the negligence clause and/or latent defect clause in the Bills of Lading and/or Charter Party. The seaworthiness of the vessel as between the Assured and these Assurers is hereby admitted and the wrongful act or misconduct of the shipowner or his servants causing a loss is not to defeat the recovery by an innocent Assured if the loss in the absence of such wrongful act or misconduct would have been a loss recoverable on the policy. With leave to sail with or without pilots, and to tow and assist vessels or craft in all situations, and to be towed.

FOB/FAS SHIPMENTS:

It is understood and agreed that this policy is extended to cover shipments sold subject to F.O.B., F.A.S., Cost and Freight or similar terms whereby the seller is not obliged to furnish ocean marine insurance. This insurance attaches, subject to policy terms and conditions and continues, until the goods are loaded on board the overseas vessel or until the seller's interest ceases, whichever shall first occur. The particulars of all such shipments on which the Assured has received instructions to insure shall be reported promptly to this Assurer and premium paid on the amounts so declared at rates as agreed for coverage not exceeding 30 (thirty) days after attachment of risk. Extension of risk beyond 30 (thirty) days held covered at rates to be agreed.

TERMINATION OF TRANSIT CLAUSE (TERRORISM) U.S.A.:

This clause shall be paramount and shall override anything contained in this policy or any of its endorsements inconsistent therewith.

1. Notwithstanding any provision to the contrary contained in this policy, its endorsements, or the clauses referred to therein, it is understood and agreed that in so far as this policy covers loss of or damage to the subject matter insured directly caused by the act or acts of one or more persons, whether or not agents of a sovereign power, carried out for political, terroristic or ideological purposes and whether any loss, damage or expense resulting therefrom is accidental or intentional, such cover is conditional upon the subject matter insured being in the ordinary course of transit and, in any event, shall terminate:

   either
   
   1.1 As per the Warehouse to Warehouse clause contained within the policy;
   
   or
   
   1.2 on delivery to the Consignee's or other final warehouse or place of storage at the destination named herein,
   1.3 on delivery to any warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either for storage other than the ordinary course of transit or for allocation or distribution,
   
   or
   
   1.4 in respect of marine transits, on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the overseas vessel at the port of discharge,
   1.5 in respect of air transits, on the expiry of 30 days after unloading the subject matter insured from the aircraft at the final place of discharge,

   whichever shall first occur.
   
    

2. If this policy, its endorsements, or the clauses referred to therein specifically provide cover for inland or other further transits following on from storage, or termination as provided for above, cover will re-attach, and continues during the ordinary course of that transit terminating again in accordance with clause 1 above.
   
    
3. This clause is subject to English law and customs, except in the United States and its possessions where the law and customs of the United States will prevail.

TERRORISM EXCLUSION CLAUSE:

This Policy excludes any loss, damage, liability or expense arising from:

1. Terrorism; and or
   
    
2. Steps taken to prevent, suppress, control or reduce the consequences of any actual, attempted, anticipated, threatened, suspected or perceived terrorism.

For the purpose of this clause, "terrorism" means any act(s) of any person(s) or organization(s) involving:

1. The causing, occasioning or threatening of harm of whatever nature and by whatever means;
   
    
2. Putting the public or any section of the public in fear,

In circumstances in which it is reasonable to conclude that the purpose(s) of the person(s) or organization(s) concerned are wholly or partly of a political, religious, ideological or similar nature.

Notwithstanding the foregoing, this exclusion shall not be applicable to the following:

1. vessels, crafts and units afloat, under construction or repair, in dock or whilst in store ashore.
   
    
2. Seawalls, wharves, piers, jetties, docks, berths, pontoons, and associated dockside equipment all whilst in the confines of the port, terminal, shipyard, harbour or marina.
   
    
3. Offshore platforms whilst exploring, drilling or producing including all associated construction operations.
   
    
4. Cargo in the ordinary course of transit per Joint Cargo Committee Termination of Transit Clause (Terrorism) JC2001/056 or Termination of Transit Clause (Terrorism) U.S.A.

The following "Special Conditions" are liable to change from time to time as Underwriters deem fit. Below are our current Conditions. Please consult your terms, conditions and endorsements applicable to your policy, as these will be the ones governing your policy. If you are in any doubt of what terms, conditions and endorsements will apply to your policy, please contact your agent.

All the special conditions below apply to All Risks coverage only.

 

Alcoholic Beverages

Each claim for pilferage and breakage subject to a 1% (minimum USD 250.00) deductible of the insured value of the entire shipment.

Excluding loss or damage caused by heat or cold.

Automobiles & Motorcycles (less than 10 model years old)

Each claim shall be subject to a 3% (minimum USD 250.00) deductible, and as respects automobile shipments, each claim shall be subject to a 3% (minimum USD 250.00) each vehicle separately insured.

No coverage shall be granted hereunder while any vehicle is being operated under its own power except for loading/unloading
 

Bagged Commodities in Door-to-Door Containers

Containerized Goods - Each claim shall be subject to a 3% (minimum USD $250.00) deductible of the insured value of the entire shipment.

Non-containerized - Subject to F.P.A. terms and conditions only.
 

Watercraft/Yachts, New & Used (Not more than 3 model years old), Not Exceeding USD 50,000 in Value Nor in Excess of 30 Feet in Length

Each claim shall be subject to a 3% (minimum USD 250.00) deductible each boat separately insured.

No coverage shall be granted hereunder while the boat is being operated under its own power.

Warranted professionally packed as determined by mode of transport.

Ceramic, Chinaware, Crystal, Glass Tubes, Glassware, Mirrors, Light Bulbs, Marble and/or Stone Tile of any kind, Porcelain, and Vitreous China (excluding Window, Plate Glass, Blocks, Slabs, Antiques, Works of Art, and Similar Merchandise)

Each claim shall be subject to a 5% (minimum USD $250.00) deductible of the insured value of the entire shipment.

Frozen/Chilled Foods and/or Other Frozen/Chilled Merchandise

Against all risks of physical loss or damage from any external cause, irrespective of percentage, but excepting those risks excluded by the F.C. & S., Nuclear Exclusions and S.R. & C.C. warranties of this policy.

EXCLUSIONS:
Notwithstanding the coverage provided in the policy, the policy excludes:

a. the risks excepted by the F.C. & S. warranty and the S.R. & C.C. warranty incorporated in the conditions of this policy;
b. loss or damage due to inherent vice and/or gradual deterioration;

Provided that, notwithstanding the provisions of Exclusion b, while the cargo is stowed in the vessel’s refrigeration chambers and/or in refrigerated containers, this policy covers loss or damage due to or caused by derangement, breakdown or malfunction of the refrigeration machinery and/or refrigeration plant and or insulation, but only if such derangement, breakdown or malfunction has lasted for a period of at least twenty-four (24) consecutive hours;

Provided further that notwithstanding the provision of Exclusion b, this policy covers loss or damage caused by the negligence of any person who has possession or custody of or responsibility for the cargo insured hereunder during the time that this policy is in force, note however, that losses caused by the insured’s own negligence are not covered by this policy.

c. claims for or consequent upon detainment, delay, loss of time or loss of market, whether arising from peril insured against or otherwise.

WARRANTIES Coverage under the policy is conditioned upon the insured’s compliance with the following warranties:

a. It is warranted that, in the event of transportation by land or inland waterway and/or other connecting conveyances prior to loading on an overseas vessel and/or subsequent to discharge therefrom, such conveyances to be properly equipped for maintaining temperatures required for proper preservation of the cargo insured hereunder.
b. It is understood that a temperature-recording device shall be used in each and every refrigerated container used to transport the covered cargo.
c. Warranted by the Assured that the interest is in sound condition at the time of commencement of risk.

Household Goods and Personal Effects

Each claim shall be subject to a 3% (minimum USD 250.00) deductible of the insured value of the entire shipment.

Warranted itemized valued inventory prior to shipment and professionally packed for export.

Perishable Merchandise

Excluding rotting, spoilage, deterioration, theft, pilferage and non-delivery.

Refrigerated Merchandise

Excluding rotting, spoilage, deterioration, theft, pilferage and non-delivery.

Steel Pipe, Tubing, Rods and Similar Merchandise

Containerized: excluding rust, oxidation, discoloration and corrosion.

Non-containerized: excluding rust, oxidation, discoloration, corrosion, bending, twisting and end damage.

Steel Sheets, Coils and Similar Merchandise

Excluding rust, oxidation, discoloration, corrosion and crimping.

Used, Refurbished and/or Rebuilt Merchandise

Excluding marring, chipping, denting, scratching, electrical and/or mechanical derangement and/or breakdown, breakage of glass, rust, oxidation, discoloration, corrosion, theft, pilferage and non-delivery

Coverage is granted for 100% interest upon lawful goods consisting of new approved general merchandise subject to following Restricted/Unapproved Commodity Index.

Please note the following are examples of interests that will require a Special Project prior to shipping. Please also see Restricted/Unapproved Commodities Index below: computers, cellular telephones, livestock, fresh fruit and vegetables, specialist road vehicles.

If you are in any doubt of what terms, conditions and endorsements will apply to your policy, please contact your agent.

RESTRICTED/UNAPPROVED COMMODITY INDEX

Commodities listed as unapproved require prior approval from underwriter prior to attachment for coverage broader than F.P.A. excluding theft, pilferage and non delivery.

RESTRICTED COMMODITIES: The following goods are insured subject to limited conditions as per policy (summary of conditions shown, refer to policy for specific wording and rates), packed in approved overseas packing.

            UNAPPROVED COMMODITIES:

            UNAPPROVED COUNTRIES:

     CATEGORIES OF INTEREST:
 

• Approved General Merchandise
• Alcoholic Beverages
• Automobiles & Motorcycles (less than 10 model years old)
• Bagged Commodities in Door-to-Door Containers
• Watercraft/Yachts, New & Used (Not more than 3 model years old), Not Exceeding USD 50,000 in Value Nor in Excess of 30 Feet in Length
• Ceramic, Chinaware, Crystal, Glass Tubes, Glassware, Mirrors, Light Bulbs, Marble and/or Stone Tile of any kind, Porcelain, and Vitreous China (excluding Window, Plate Glass, Blocks, Slabs, Antiques, Works of Art, and Similar Merchandise)
• Frozen/Chilled Foods and/or Other Frozen/Chilled Merchandise
• Household Goods and Personal Effects
• Perishable Merchandise
• Refrigerated Merchandise
• Steel Pipe, Tubing, Rods and Similar Merchandise
• Steel Sheets, Coils and Similar Merchandise
• Used, Refurbished and/or Rebuilt Merchandise

The following countries are subject to surcharges in respect of War, Strikes, Riots and Civil Commotions risks. If you have a shipment to or from any of these countries then the surcharge (if applicable) will automatically be included in your premium when you issue a certificate. If you have a shipment to a held covered area then the certificate will be referred to Underwriters for individual rating.

PLEASE NOTE THAT THE COUNTRIES AND RATES ARE LIABLE TO CHANGE AT ANY TIME.

Additional conditions to apply:
@ = Air Shipments - Coverage ceases upon touchdown of the aircraft
+ = Non-Containerized - Coverage ceases when the merchandise is off-loaded from the vessel
# = Containerized - Coverage ceases when the merchandise is unloaded from the container or the expiration of 30 days from the date the vessel arrives at the port, whichever shall first occur