e sum insured Is As.5,000 or less, (i) SO paise when th ren the sum jnsured is over Rs.5,000. (i) Rs.1- wi (ec) For postal sendings : (i) Scale as per (a) above, if involving sea voyage. (i) Scale as per (b) above for transits by rail, road er air. Analysis of Marine Insurance Clauses es, the standard from of the Marine Policy cj, The extent, scope and duration of the uses attached to the Inthe previous pag has been examine : cover are indicated in the applicable cla policy. 32. The “Institute” Clauses are drafted by the Technical and Clauses Committee of the Institute of London Undenwriters (ILU) and they are adopted for use the world over by all insurers. Doubtless, this uniformity is desirable when we are dealing with international trade, that is, trade between countries all over the would involving different modes of transit. 33, On the oiher hand, where pure inland transit is concerned, that is, transit within the country by rail or road (not in conjunction with overseas voyage), Inland Transit Risks Clauses drafted by Tariff Advisory Committee (TAC) aré used. The salient features of the principal Cargo Clauses will now be examined. 96Institute Cargo Clabes (A), (B) and (( 34. In each of the sets of clauses the provisions are grouped under the main headings of Risks Covered, Exclusions, Duration, Claims, Benefit of Insurance. Minimising Losses, Avoidance of Delay and Law & Practice. 35. ICC (C) provides a basic standard cargo cover against major casualties whilst ICC (B) provides a wider intermediate form of cover and ICG (A) provides the broadest cover on an "all risks with exceptions" basis. Risks Covered by ICC (C) 36. The insurance under Institute Cargo Clauses (C) covers : (a) (i) loss or damage to the subject-matter insured reasonably attributable to : - 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 (ii) loss / damage to the subject-matter insured caused by:jettison. (6) General Average and Salvage Charges incurred te avoid loss from any cause (s) except those excluded. Liability under “Both to Blame Collection” Clause of (e) the contract of affreightment. Risks covered by ICC(B) 37. The insurance under Institute Cargo Clauses (B) cavers the aforesaid risks ofICC(C)and i. INADDITION covers also the following risks :- Loss/damage reasonably attributable to a) (i) earthquake, volcanic eruption or lightning; (ii) _Loss/damage caused by Washing overboard entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, liftvan or place of storage total loss of any package lost overboard or dropped whilst loading onto, or unloading from vessel or craft. ) General Average and Salvage Charges incurred to avoid loss from any cause (s) except those excluded. 98c) — Liabilit "Both to Bi conti ity Under "Both to Blame "Collision" Clause of the fact of affreightment. = Risks covered by 1¢c(A) ’ 38. a) The insurance covers all risks of loss or damage to the subject-matter insured except those Specifically excluded. The expression “all risks" is Not to be construed as embracing loss of damage Which is inevitable. The loss or damage, in order to be recoverable, must have occurred fortuitously. b) General Average and Salvage Charges incurred to avoid loss from any cause (s) except those excluded: c) Liability under “Both to Blame Collision” Clause of the contract of affreightment. General Exclusions (applicable to IGC(A), (B) & (C)) In no case shall this insurance cover - Loss, damage or expense attributable to willful misconduct of the assured Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear of the subject-matter insured Loss, damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject- matter insured("packing " shall be deemed to includeitainer or | out pr red 'Surance or by the Loss, damage or expense caused by in Nature of the subject-matter insured, Loss, damage or expense proximately caused by delay, even though the delay be caused by a tisk insureg against (except expenses payable in respect of Ga oy Salvage Charges) Loss, damage or expense arising from insolvency o, financial default of the owners, managers, charterers oroperators of the vessel. = Loss, damage er 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 Male Unseaworthiness & Unfitness Exclusion 40 {i) Inno case shall this insurance cover loss, damage ar expense arising from : ce - unseaweorthiness of vessel or crafi - unfitness of vessel, craft, conveyance, container orliftvan 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 100Subj + ublect-matter insured is loaded the (i) The F versie ee Waive any breach of the implied the ship to Seaworthiness of the ship and fitness of destination fatty the subject-matter insured to pine ) Unless the assured or their servants are Such Unseaworthiness oF unfitness. War Exclusion 41. The insurance shall not cover loss, damage or expense caused by : rn War, civil war, revolution, insurrection ar civil strite arising therefrom or any hostile act by or against a belligerent power: = Capture, seizure, arrest, restraint or detainment and the consequences thereof or any attempt thereat, Derelict mines, torpedoes, bombs er other derelict weapons of war. Strikes Exclusion 42. This insurance shall not cover loss, damage or expense - caused by strikers, locked-out workmen or persons taking part in labour disturbances, riots or civil commotions ; 101: er the oj Pe Sa ger ; fecovereq c a ave: a8, harg i NEet Which they 8° SS according to MSure, cui ii Fe incurrey . d. lf salva ail 3 Sequ . ge Salvage ch "St, the insurer 8 liable S fe eee T the proportion of the: Duration of cover 44. Transit Clause -- Transit Clause of ICG (A), (B) : C) defines the duration of the risk aS.attaching from the time the goods leave the warehause or other place of storage at the place named in the policy to commence transit. The risk then continues during the ordinary course of transit to terminate on delivery and ( (i) to consignee’s or other final warehouse or place of storage at the destination named in the policy; or (ii) to any other warehouse or place of storage (either at Or prior to reaching the policy destination) which the assured maj use for - 104Sets of Institute Garge ¢ SHPENSE BS follows,” WISUBES, the insutér pays eye) Sue and Labour Charges . their servants and a, ' under the iNSurance : eit isthe duty of the @ssured and ts, in respect of a loss recoverable : to take suc ee h MEasures as May be teasonable to avert Mimise such loss, and é that all tights against carriers, bailees and f hird parties a té propert reserved and €xercised. a = to ensu other t¢ In return, the insurer agrees to reimburse the assured for any reasonable expense incurred in connection with this duty. This is in addition to any loss recoverable under the policy. These expenses are payable even in addition to a total loss where a cargo insurer may become liable for more than the SuM insured in ‘respect of one casualty. Under-insurance does not reduce the amount Payable as is the case with Salvage charges and general average. Forwarding Expenses :- Where, as a result of an insured peril, the transitis terminated short of destination, the insurers will reimburse the assured for any extra charges properly and reasonably incurred in unloading, stcring and forwarding the insured goods to the policy destination. Such reimbursement is subject to the exclusions in the Clauses and shall not include charges arising from fault, negligence, insolvency or financial default of the assured or their servants. 103inciret ea Interest: In order to recover’ under the subject-matter ee red must have insurable interest in the may be fois sured at the time of the 105s, though there risk. Subject es interest at the omnencement of the Tonos ‘this provision, the assured shall be entitled by the | insured lass occurring during the period covered insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the assured was aware of the loss. and the insurers were not. 48. Thus, the cover is retrospective and insurers would be liable for any lass which occurred by perils insured against prior to the arrangement for insurance but alter the commencement of the risk as set out in the policy. The provision is subject to the requirement thatthe assured and the insurer shall be in equal state of knowledge or ignorance. Constructive Total Loss 49. No claim for CTL shall be recoverable under the policy 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, econditioning and forwarding the subject-matter to ihe destination to which it is insured would exceed its value on arrival. 50. Measures taken by the assured or the insurers with the object of saving, protecting, oF recovering the subject- matter insured shall not be considered as a waiver Of acceptance of abandonment or otherwise prejudice the tights of either party. 107delivery of the goods, then ss the assured j the insurance: by giving rers and requesting continuation of Pa ii fore wise terminated be! He pene ates automatically, unle: fi noe termin é are ie postive: action to continue prompt notice tothe insul the cover. provided notice premium, ifrequired, is pail the insura nce, either mpily and an additional is given pro r will agree to continue id, the insure! re sold and delivered at such port of place or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods at such port of place, whichever shall first occur, (until the goods a = SS (ii) _ ifthe goods are forwarded within the said period of 60 days (or any extension agreed) to the policy destination or to any other destination, until terminated in accordance with the provisions of the Transit Clause above. unless the reason for resort to the e where the contract of carriage is ‘an insured risk, the insurer It should be noted that, intermediate port or plac _—~ terminated, is the operation of “would not be liable for forwarding charges. 46. Change of Voyage :- Where, after attachment of ihe insurance, the destination is changed by the assured, the insurance is held covered ata premium and on conditions to be arranged, subject to prompt notice being given to underwniters. 106storage Sther th, (b) -allocati onli Ordinary course of transit: "OD OF distéity ut; ansity 8h; or (iii) upone xpi over-si WaT BO days of completion of discharge de of the j VESSOI at the pn nauted goads fiom the oversea P e fi first occur, Nal port of discharge, whichever shall If, before the exp) mM nestinanan ime ees the policy, but after discharge at destinatiGne tee Scided to forward the goods to another conmencseee aoe shall not extend beyond ihe Of transit to the other destination. The insurance remains in force during z delay beyond the control of the assured = any deviation forced discharge = reshipment - transhipment, or any variation of adventure arising from the exercise of liberty granted to the shipowner or charterers under the contract of affreighment. Termination of Contract of Carriage Clause : umstances beyond the control of 45. If, owing to cire is terminated ata ured, either the contract of carriage the ass an the policy destination, of the transit port or place other th 105 Be initlon of this insurance that the assured 51. (tis cae despatertinall circumstances within a shallact with reason his control. mphasised, however, thatne cover for loss It must be ©! ee proximately caused bY delay is English Law and practice The insurance is subject to English Law and Se Practice. Fi institute War Clauses (Cargo) contingencies covered by the Cargo War Risks / C' Clauses : 53. (a) The insurance covers loss or damage to the subject-matter insured caused by - (i) War, civil war, revolution, rebellion, insurrection or ___¢ivil-cirife-arising therefrom,-or any hostile act by or against a belligerent power, (ii) Capture, seizure, arrest, restraint or detainment arising from risks covered under (i) above, that is, warlike only; (ili) Derelict (meaning abandoned or drifting) mines, torpedoes, bombs or other derelict weapons of war. 108“a pastrict cover for war risks to the 5 are waterborne and hot on which, in effect \ jiters Wer ne good period afar es Waterborne Clause, land. This fest ine war clauses as the Transit Clause. ig embodied in the : i! therefore, does not attach until the t overseas vessel, and it ceases when onthe e oversea vessel rarged from th rrives at destination, but unloading limited upto 15 days counting from goods are joaded. the goods are disc 57. lf the vessel 4 is delayed, war cover is the mid-night of the day ds-are trnashipped, cover continues but subject to a limit of 15 days f arrival of the vessel at the — of arrival. ____ §8.If the 0°! during the transhipment counting from the date © transhipment port. 59. If the 15 days limit expires before the goods are foaded onto the on-carrying vessel, the war cover is until the goods are loaded onto the on-carrying -attaches. This extension during hilst the goods remain within the suspended vessel, when the cover re: transhipment applies only w port area of the tra nshipment port. Thus a relaxation of the Waterborne Clause is allowed whilst the goods are being transhipped at an intermediate port, but this is subject to restrictions both in location and time, as already explained. 60. Whilst full cover does not apply when the goods are in craft in transit to or from the overseas vessel, cover is extended during such transit to embrace the risks of mines and derelict torpedoes only, whether these be floating or 110