I.C.C.docx

China Insurance Clauses (C.I.C.)Under C.I.C.，basic risks coverage falls into three groups： Free from Particular Average (F.P.A.); With (Particular) Average (W.A. or W.P.A.); All Risks.The insured may choose any one from these suitable for the carriage of his goods.1. FPA (Free from Particular Average)A clause which exempts the company insuring cargo from partial losses, usually limited to apply only if the amount is less than an agreed sum, or if some other described condition exists. It covers the following losses：(1) Total or Constructive Total Loss of the whole consignment hereby insured caused in the course of transit by natural calamities：heavy weather, lightning, tsunami, earthquake and flood.(2) Total or Partial Loss caused by accidents the carrying conveyance being grounded, stranded, sunk or in collision with floating ice other objects as fire or explosion.(3) Partial loss of the insured goods attributable to heavy weather, lightning and/or tsunami, where the conveyance has been grounded, stranded, sunk or burnt irrespective of whether the event or events look place or after such accidents.(4) Partial of total loss consequent on falling of entire package or packages into sea during loading, transshipment or discharge.(5) Reasonable cost incurred by the insured on salvaging the goods or averting or minimizing a loss recoverable under the Policy, provided that such cost shall not exceed the sum insured of the consignment so saved.(6) Losses attributable to discharge of the insured goods at a pert of distress following a sea peril as well as special charges arising from loading, warehousing and forwarding of the goods at an intermediate port of call or refuge.(7) Sacrifice in and Contribution to General Average and Salvage Charges.(8) Such proportion of losses sustained by the ship owner as is to be reimbursed by the Cargo Owner under the Contract of Affreightment Both to Blame Collision clause.2. WPA (With Particular Average)Aside from the risks covered under F.P.A. condition as above, this insurance also covers partial losses of the insured goods caused by heavy weather, lightning, tsunami, earthquake and/or flood.3. All RisksSomewhat misleading name for an insurance policy which, which providing the broadest from of insurance cover, generally excludes losses due to bad packaging, delay, inherent vice, loss of market, etc. Such policies do not name the risks covered but only list the exclusion; all unnamed risks are automatically covered. The term “All Risks” is now being phased out in the world. In marine insurance, for example, the term “All Risks” has been replaced with the new term “institute cargo clauses (A，B，and C)”.4. Additional Risks.Additional risks can not be used independently. It is a complement to the basic risks. Additional risks under C.I.C. fall into general additional risks and special additional risks.(1) General Additional Risks.General additional risks are covered by All Risks in basic insurance coverage. Hence, you do not need to ask for general additional risks coverage if you have asked for All Risks coverage.General additional risks fall into 11 types： Theft, Pilferage and Non-delivery (T.P.N.D.)； Fresh Water and/or Rain Damage； Risk of Shortage； Risk of Contamination； Risk of Leakage； Risk of Clash & Breakage； Risk of Odor； Damage Caused by Heating & Sweating； Hook Damage； Loss or Damage Caused by Breakage of Packing；Risks of Rust；(2) Special Additional Risks.Special Additional Risks include： War Risks； Strikes Risk；Failure to Deliver Risk； Import Duty Risk； On Deck Risk； Rejection Risk； Aflatoxin Risk； Fire Risk Extension Clause (F.R.E.C.for storage of cargo at destination of Hong Kong, including Kowloon, or Macao).5ExclusionsThis insurance does not cover：(1) Loss or damage caused by the intentional act or fault of insured.(2) Loss or damage falling under the liability of the xondignor.(3) Loss or damage arising from the inferior quality or shortage of the insured goods prior to the attachment of this insurance.(4) Loss or damage arising from normal loss, inherent vice or nature of the insured goods loss of market and/or delay in transit and any expenses arising there from.(5) Risks and liabilities covered and excluded by the ocean marine (cargo) war risks clauses and strike, riot and civil commotion clauses of this Company.6Warehouse to Warehouse ClauseThis insurance attaches from the time the goods leave the ware-house or place of storage named in the Policy for the commencement of the transit and continues in force in the ordinary course of transit including sea, land and inland waterway transits and transit in lighter until the insures goods are delivered to the consignees final warehouse or place of storage at the destination named in the Policy or to any other place used by the insured for allocation or distribution of the goods or for storage.This insurance shall, however, be limited to sixty (60) days after completion of discharge of the insured goods from the seagoing vessel at the final port of discharge before they reach the above mentioned warehouse or place of stories. If prior to the expire of the above mentioned sixty (60) days, the insured goods are to be forwarded to a destination other than that named in the Policy, this insurance shall terminate at the commencement of such transit.Institute Cargo ClausesThe Institute Cargo Clauses, shortened as I.C.C. were set forth by the Institute of London Underwriters. They have great influences on the development of international insurance. Under the I.C.C.，the insurance coverage falls into 6 clauses： Institute Cargo Clauses A (ICC A )； Institute Cargo Clauses B (ICC B )； Institute Cargo Clauses C (ICC C )； Institute War Clauses； Institute Strikes Clauses； Malicious Damage Clauses.1A ClausesThis insurance covers all risks of or damage to the subject-matter insured except exclusions. The exclusions include：(1) General Exclusion Clause.In no case shall this insurance cover：1) willful misconduct of the Assured；2) ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured；3) insufficiency or unsuitability of packing or preparation of the subject-matter insured；4) inherent vice or nature of the subject-matter insured；5) delay, even though the delay be caused by a risk insured against；6) insolvency or financial default of the owners or operators of the vessel；7) the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.(2) Unseaworthiness and Unfitness Exclusion Clause.In no case shall this insurance cover loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel craft conveyance container or lift van for the safe carriage of the subject-matter insured, where the assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-mater insured is loaded therein.(3) War Exclusion Clause.In no case shall insurance cover loss damage or expense caused by：1） civil war revolution rebellion insurrection, or civil strife arising there-from, or any hostile act by or against a belligerent power；2） capture seizure arrest restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat；3） derelict mines torpedoes bombs or other derelict weapons of war.(4) Strikes Exclusion Clause.This insurance shall not cover loss damage or expense：1) caused by strikers, locked-out workmen, or persons taking part in labor disturbances, riots or civil commotions；2) resulting from strikes, lock-outs, labor disturbances, riots or civil commotions；3) caused by any terrorist or any person acting from a political motive.2B ClausesB Clauses provide all the cover that is available under the “C” clauses, but in addition cover is given for loss or of damage to the subject matter insured：1) Earthquake, volcanic eruption or lightening.2) Washing overboard.3) Entry of sea, lake or river water into the vessel, craft, hold, conveyance, container, lift van or place of storage.4) Total loss of any package lost overboard or dripped while loading on to or unloading from vessel or craft.The exclusions under B Clauses are similar to the A Clauses. Under B Clauses the insu