Reasonably attributable to

 

Most of the risks under the Clause (B) and Clause (C) have been changed from the "proximately caused by" to "reasonably attributable to".




 

      Malicious damage

 

The exclusion in the deliberate damage to or deliberate destruction of the property insured or any part thereof by the wrongful act of any person(s).




 

      Delay

 

Although the delay was caused by a risk insured against (except expenses payable under general average), the assured cannot claim the loss or damage due to the delay.

In the above Case Sample: Delayed Delivery and Insurance the company cannot take action against the insurer, but it may take action against the carrier for the delay in delivery.

 

      Willful misconduct of the assured

 

If the loss or damage is the result of negligence or actions taken by the assured, he/she cannot claim such loss or damage.

      General average sacrifice

 

The word "average" means loss. The general average sacrifice is an intentional sacrifice or expenditure reasonably incurred for the purpose of preserving the imperiled property involved in the common maritime adventure. In other words, sacrifice in the cargo for the benefit of saving the rest and the vessel. The jettison and the cargo damaged by water used to extinguish a fire aboard the vessel are examples of the general average sacrifice.

If the action taken is successful, each party to the adventure---all cargo owners and the vessel owner---bear the loss and expenses incurred based on the value of each shipment in proportion to the total value of cargo and vessel. The cargo owners whose goods are safe and sound or uninsured in the marine perils must also contribute to pay for the loss and expenses.

 

     Jettison

 

It means the cargo is thrown overboard to lighten the vessel during a storm or when a vessel grounds and can be floated at high tide with lesser load.




 

      Piracy

 

The piracy is excepted in the War Exclusion in the Clause (A) only. To cover against piracy in the Clause (B) and Clause (C), the Institute War Clauses must be endorsed. The F.C.&S. Clause (Free of Capture and Seizure Clause) in the old Institute Cargo Clauses excludes the piracy.




 

      Inherent vice or nature of the subject matter insured

 

The word "vice" means fault. The inherent vice means the nature or characteristic of a product which could result in damage to the product despite all care and caution by the carrier. For example, cut flowers may wilt and die, milk may turn sour, and cement may set.




 

     War

 

The exclusions of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power (for the purpose of this clause 'power' includes any authority maintaining naval, military or air forces in association with a power); capture, arrest, restraint, detainment (piracy excepted), and the consequences thereof or any attempt thereat; derelict mines, torpedoes, bombs, or other derelict weapons of war. This clause basically replaces the old F.C.&S. Clause (Free of Capture and Seizure Clause).




 

     Strikes, riots and civil commotions, includes

      terrorists or any persons acting from a political motive

 

The insurance does not cover loss, damage or expense caused by or resulting from: strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions; strikes, lock-outs, labour disturbances, riots or civil commotions; terrorists or any persons acting from a political motive. This clause is similar to the old F.S.R.&C.C. Clause (Free of Strikes, Riots and Civil Commotions Clause) except the new clauses include an additional exclusion of terrorists or any persons acting from a political motive.




 

    Use of any atomic or nuclear weapon

 

The exclusion in the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. This exclusion also appeared in the Institute War Clauses.




 

   Ordinary leakage, ordinary loss in weight or volume,

   or ordinary wear and tear of the subject matter

 

The ordinary leakage or ordinary loss in weight or volume is a form of inherent vice. The natural processes of evaporation (liquid turns to gas) and sublimation (solid turns to gas) may be involved. For example, alcohol evaporates and the mothball (naphthalene ball) sublimates, as a result alcohol and mothballs may lose weight or volume.

The ordinary wear and tear of the subject matter is often linked to the insufficiency or unsuitability of packing where the cargo may move and 'rub' against each other or against the container during the sea voyage because of high wind and waves. Friction (from 'rubbing') may result in wear and tear to the cargo.

 

  Insufficiency or unsuitability of packing

  of the subject matter insured

 

The packing used here includes stowage in a container but only when such stowage is completed by the assured or his/her agent before the insurance coverage takes effect. This clause reminds the shipper to be careful in the preparation of export packs and the loading or stuffing of the container.




 

   The assured privy to the unseaworthiness of vessel or craft

    and/or unfitness of vessel, craft, conveyance, or container

    at the time of loading

 

The word "privy" means having knowledge of. If the shipper knows that the vessel, craft, conveyance, or container is unseaworthy or unfit but still uses it, then any loss, damage or expense arising from such use is excluded, that is, the insurer is not liable to pay for the loss, damage or expense. This clause encourages the shipper to be careful in his/her selection of the vessel, craft and conveyance, and emphasizes the importance of inspecting the container, particularly when the shipper will be loading the container himself/herself.




 

    Insolvency or financial default of the

    owners or operators of the vessel

 

This clause encourages the shipper to be cautious in his/her use of the carrier.

   Export Credit Risk Insurance


 

Exports not only face the risks of physical loss or damage, they may also face the risks of non-payment due to buyer's insolvency or default, government blockage of currency transfer, and other risks, known as credit risks. There are specialized organizations, often government owned, which insure credit risks. Credit risk insurance usually is applied in overseas projects and the coverage may run for a number of years.

In some countries, credit risk insurance may cover open account sales, but is subject to credit terms such as the destination country, the terms of sales, and the amount involved. Some insurers may require that the products for export have a minimum percentage of domestic content (51% or more usually) to qualify for coverage.

• Principles of Cargo (Marine) Insurance
• Standard Cargo Insurance---Basic Types of Policy