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ADDITIONAL INSURANCES / PART II / Section B - Extended Cargo Liabilities (Annual Cover) / Clause 1
EXTENDED CARGO LIABILITIES
This insurance is to indemnify the Assured against liabilities, together with costs and expenses incidental thereto, where cover is not otherwise available from the Association by virtue of the operation of the provisos to cover contained within Rule 19.17 Cargo1. The following shall be recoverable:
1.1 Hague Visby Rules
Liability arising under a contract of carriage by sea which is on terms less favourable to the carrier than those contained in the Hague or Hague Visby Rules [Rule 19.17.8.12] provided always that
1.1.1 the Managers shall have approved such contract in advance and the Assured has paid or agreed to pay such additional Call or premium as may be required by the Association.
1.2 Deviation
Liability in consequence of a deviation from the contractually agreed voyage [Rule 19.17.8.23]
1.3 Failure to arrive at load port or failure to load
Liability arising out of the failure to arrive or late arrival at a port of loading, or out of failure to load or late loading of any particular cargo or cargoes [Rule 19.17.8.3.24] provided always that
1.3.1 there is a pre-existing contract of carriage in respect of the particular cargo or cargoes and an intention to issue a bill of lading
1.4 Delivery of cargo without production of the bill of lading
1.4.1 Liability arising out of the delivery of cargo under a negotiable bill of lading or similar document of title (including an electronic bill of lading) without production (or the equivalent thereof in the case of an electronic bill of lading) by the person to whom delivery is made of the relevant bill of lading or document of title [Rule 19.17.8.3.35]
1.4.2 Liability arising out of the delivery of cargo under a non-negotiable bill of lading, waybill or similar document without production of such document by the person to whom delivery is made where such production is required by the express terms of that document or the law to which that document, or the contract of carriage contained in or evidenced by it, is subject [Rule 19.17.8.3.46]
1.4.3 provided always that there shall be no recovery hereunder where the Assured is on notice that a claim might arise from such delivery
1.5 Discharge of cargo at a port other than that stated in contract of carriage
Liability arising out of the discharge of cargo at a port or place other than the port or place provided in the contract of carriage [Rule 19.17.8.3.57]
1.6 Ante-dated or post-dated bills of lading
Liability in respect of the issue of an ante-dated or post-dated bill of lading, waybill or other document containing or evidencing the contract of carriage [Rule 19.17.8.3.78] provided always that
1.6.1 there shall be no coverage hereunder where the bill of lading has been so issued with the knowledge or consent of the Assured or the Master
1.7 Misdescription of cargo in bill of lading
Liability in respect of a bill of lading, waybill or other document containing or evidencing the contract of carriage issued with an incorrect description of the cargo, its quantity or condition, or of its port of loading or discharge [Rule 19.17.8.3.89] provided always that
1.7.1 there shall be no coverage hereunder where the bill of lading has been so issued with the knowledge or consent of the Assured or the Master
1.8 ad valorem bills of lading
Liability in respect of 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 [Rule 19.17.8.410], provided always that
1.8.1 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
1.9 Rare and valuable cargo
Liability in respect of specie, bullion, precious or rare metals or stones, plate, jewellery or other objects of a rare or precious nature, bank notes or other forms of currency, bonds or other negotiable instruments, where the contract of carriage and the spaces, apparatus and means used for the carriage and the instructions given for the safe custody thereof, have not been approved by the Managers prior to any such carriage and/or any directions made by the Managers have not been complied with [Rule 19.17.8.511].
1.10 Deck cargo
Liability in consequence of the carriage of cargo on deck where the cargo is not suitable for carriage as loaded on deck [Rule 19.17.8.912] provided always that:
1.10.1 Notwithstanding that the Association deems the cargo as unsuitable for carriage on deck and that the risk is therefore not poolable13, the Assured shall nevertheless properly and carefully load, handle, stow, carry, keep, care for the cargo for the intended voyage; and
1.10.2 there shall be no recovery hereunder where such liability arises out of an insufficiency of packaging for the intended on deck stowage and voyage in respect of
1.10.2.1 rusting, oxidisation and/or discolouration; and/or
1.10.2.2 electrical, mechanical, electromechanical and/or electronic derangement; and/or
1.10.2.3 bending and twisting of pipes, rods and/or steel bars; and/or
1.10.2.4 scratching, denting and/or the cost of repainting cars / vehicles.
1.11 Received for shipment bills of lading
Liability of the Assured which may arise following the issue of a ‘received for shipment bill of lading’ where the subject cargo is held and/or stored rather than being loaded directly on board the ship and/or conveyance provided always that
1.11.1 coverage hereunder shall cease (and coverage in accordance with the Association’s Rules14 shall be deemed to reattach) as soon as the cargo is loaded on board the ship and/or conveyance.
1.12 Unrecoverable General Average Contributions
Cover is extended to include the cost to the Assured of that proportion of general average expenditure (including salvage) and special charges which should be paid by cargo or by some other party to the maritime adventure, but which are not so paid after the exhaustion of all legal remedies against such parties solely by reason of a breach of the contract of carriage that is covered under Clauses 1.1 to 1.7 above.
1.13 Waiver or limitation of rights of recourse
Liability arising under a contract of carriage by sea as a result of the waiver or limitation by the Assured of rights of recourse that would otherwise have been available under the contract of carriage in accordance with the Hague or Hague Visby Rules and/or mandatorily applicable law [Rule 19.17.8.12] provided always that
1.13.1 the Managers have agreed in writing to provide cover under this clause and the Assured has paid or agreed to pay such additional Call or premium as may be required by the Association.
1.14 PROVIDED ALWAYS THAT:
1.14.1 the coverage reinstated by Clauses 1.2 to 1.11 shall be no wider than that otherwise available under Rule 19.17 Cargo1;
1.14.2 coverage under Clauses 1.8 to 1.10 is in respect of ad hoc shipments only; systematic or pre-planned shipments of such cargo are deemed to fall within Rule 19.17.8.12 and are not covered hereunder unless expressly agreed under Clause 1.1; and
1.14.3 nothing in the coverage afforded hereunder shall be construed as aiding and abetting an illegal act or acts(s). Coverage is subject to the implied warranty that the adventure insured is a lawful one and that so far as the Assured can control the matter the adventure shall be carried out in a lawful manner; the Association shall respond to the maximum extent permitted by law.
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.
2 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.1 shall include reference to Charterers’ Liability Insurance Clause 17.8.1 Hague Visby Rules.
3 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.2 shall include reference to Charterers’ Liability Insurance Clause 17.8.2 Deviation.
4 For the purposes of this Clause, where the Assured is insured the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.2 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.2.
5 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.3 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.3.
6 For the purposes of this Clause, where the Assured is insured the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.4 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.4.
7 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.5 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.5.
8 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.5 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.7.
9 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.3.8 shall include reference to Charterers’ Liability Insurance Clause 17.8.3.8.
10 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.4 shall include reference to Charterers’ Liability Insurance Clause 17.8.4 ad valorem bills of lading.
11 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.5 shall include reference to Charterers’ Liability Insurance Clause 17.8.5 Rare and valuable cargo.
12 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.17.8.9 shall include reference to Charterers’ Liability Insurance Clause 17.8.10 Deck cargo.
13 For the purposes of this Clause ‘poolable’ shall mean a risk which falls within the pooling eligibility criteria of the Pooling Agreement of the International Group of P&I Associations; or, applying similar criteria, falls within the cover terms set out in the Association’s Charterers’ Liability Insurance.
14 For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to the Association’s Rules shall include reference to the Association’s Charterers’ Liability Insurance.