ADDITIONAL INSURANCES / PART II / Section A - Deviation and other exceptions to coverage in respect of Cargo (ad hoc) / Clause 3

AD VALOREM BILLS OF LADING

This insurance is to indemnify the Assured in respect of liabilities, losses, costs and expenses as would be covered by the Association under Rule 19.17 Cargo¹ but where, in the opinion of the Association, the Assured has prejudiced or may have prejudiced such coverage from the Association by virtue of the operation of Rule 19.17.8.4:

3.1

where cargo or other property carried under an ad valorem bill of lading or other document of title, contract of carriage or waybill in which a value of more than two thousand five hundred Dollars (USD 2,500) (or the equivalent in any other currency) is declared and/or inserted by reference to a unit, piece, package or otherwise, where the effect of such a declaration / insertion is to deprive the Assured of any right or rights of limitation to which the Assured would otherwise have been entitled and cause the Assured to incur a greater liability than the Assured would have done but for such declaration / insertion;

3.2

coverage hereunder is limited to the extent that such liability thereby exceeds two thousand five hundred Dollars (USD 2,500) (or the equivalent in local currency) in respect of any such unit, piece, package or otherwise.

3.3

{Enter details of the ad valorem bill of lading and the value declared and/or inserted therein by reference to each unit, piece, package or otherwise}.

¹ For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17 shall include reference to Charterers’ Liability Insurance Clause 17 Cargo; and the reference to Rule 19.17.8.4 shall include reference to Clause 17.8.4 ad valorem bills of lading.