• Air Freight Clause

It is further agreed that in the event of a claim under this Contract, the Insurer agrees to pay the cost of air freighting a replacement machine(s) and/or damaged parts to manufactures for repair and return or the air freighting of replacement machine(s) and/or parts from suppliers to destination notwithstanding that the Interest were not originally dispatched by air freight.

• Accumulation Clause

Should there be an accumulation of interest beyond the limits expressed in this Contract by reason of any interruption of transit and/or occurrence beyond the control of the Assured, or by reason of any casualty and/or at a transhipping point and/or in a connecting vessel or conveyance, then, provided notice is given to the Underwriters as soon as known to the Assured, the Underwriters shall be liable for the full amount at risk, but in no event shall they be liable for more than twice the Contract limit.

• Brand and Trademark Clause

In the event of loss or damage to Interest bearing embossed or indented brands or labels or other permanent markings identifying the Insured as the manufacture thereof, or those of exclusive or secret formula they shall be retained by the Insured to dispose of as the Insured sees fit provided a reasonable allowance is agreed for the value of such interest.

• Buyer’s Interest Clause

Notwithstanding that the Goods may have been purchased by the Assured on C.I.F. or similar terms, the interest in this contract is insured hereunder subject to the same conditions of insurance as would have applied had the shipments been purchased on F.O.B., C.F.R. or similar terms.

• Change of Destination Clause

In case of voluntary change of destination and/or deviation and/or delay within and/or beyond the Assured’s control, the insured goods are held covered hereunder subject to the Assured advise all such events to Underwriters upon coming to the knowledge of the Assured.

Underwriters agree to hold the Assured covered against the risk insured hereunder whilst in transit or storage until arrival at the final destination to which the goods are insured or until the goods no longer at the risk of the Assured, whichever may first occur.

• Claims Clause

Notwithstanding that the ship owner or other carrier has failed to acknowledge or otherwise reply to correspondence from the Insured regarding their liability for loss or damage, it is hereby agreed that claims recoverable under this Contract will be settled by the Insurer on the production of all other reasonable supporting documents.

• Concealed Damage Clause (90 days)

This policy terminates in accordance with the Transit Clause forming part of the relevant Institute Cargo Clauses herein, but it is hereby understood and agreed that any claim hereunder will not be prejudiced by delay in calling for survey providing such delay does not exceed 90 days after the termination of this insurance, provided always that if the packages arrive on site with outward signs of damage, an immediate application will be made for survey.

This clause is only operative where the claimant is the Assured named herein and does not apply to the benefit of any third parties.

Container Clause

The fitness of shipping containers for the safe carriage of the subject matter insured is admitted as between the Insured and the Underwriters.

To the extent that cover for shortage is provided hereunder, claims for shortage from a sealed container shall not be invalidated by the fact that seals are or appear intact upon arrival. Shortage in this context shall be determined as the difference between the number of packages loaded or alleged to have been loaded in accordance with the shipper’s or supplier’s invoice or packing list and the number of packages removed at the time the container is unloaded.

Containers that are transported at the Insured’s risk shall be covered hereunder subject to Institute Container Clauses Time 1/1/87 and Institute War and Strikes clauses Containers – Time 1/1/87.

• Container Demurrage Charges Clause

This Contract shall cover demurrage charges and/or late penalties assessed against the Insured for the late return of containers when said containers are retained by the Insured at the instruction of the Insurer for inspection by the Insurer’s Surveyor in investigation of loss or damage recoverable in this Contract. The time period for which the insurer shall be liable for said charges and/or penalties shall begin at the time the Insurer instruct the Insured to retain the containers for inspection and end at the time the Insurer’s Surveyor instructs the Insured to return the container.

• Debris Removal Clause

It is agreed that this Contract is extended to cover all costs and extra expenses, in addition to any other amount recoverable under this insurance, reasonable incurred by the Assured and for which they are legally liable in connection with :

o removal of debris

o dismantling and/or demolishing

o shoring up and/or propping

o the transfer of items, covered hereunder, from one conveyance to another in the event of an accident to the original conveyance which results in loss of or damage to such items which is recoverable hereunder.

• Errors and Omissions Clause

Assured shall not be prejudiced by any unintentional delay or omission in the reporting hereunder or any unintentional error in the amount or description of the Interest, Vessel or voyage, or if the subject matter of the Insurance be shipped by other vessel, if notice be given to Underwriters as soon as practicable after said facts become known to the Assured

• General Average Clause

For the purpose of claims for general average contributions and salvage charges recoverable hereunder, the Interest shall be deemed to be insured for its full contributory value and irrespective of any Contract Deductible.

• Increased Value (Duty &/or Taxes) Clauses

This contract to cover increased value of cargo by reason of payment of duty &/or taxes at the port or place of destination but to apply only as such duty and/or taxes are imposed. Subject to the same clauses and conditions as the insurance on cargo and to pay the same percentage of loss (excluding charges and expenses) as the original insurance but excluding claims in respect of:-

(a) Total loss of whole or part of the cargo prior to the duty &/or taxes becoming payable.

(b) General average, salvage &/or salvage charges arising from any casualty occurring prior to the duty &/or taxes becoming payable.

Liability hereunder shall be calculated on the actual amount of duty &/or taxes paid or the amount insured whichever is the lower and in ascertaining the amount of claim recoverable hereunder, credit shall be given for any rebate or refund of duty or taxes, which may become allowable.

Warranted that the Assured will use reasonable efforts to obtain abatement or refund of duties &/or taxes paid or claimed in respect of goods lost, damaged or destroyed, and when Underwriters so elect shall surrender any portion of the merchandise to the Customs &/or other Authorities concerned, in which event the claim hereunder shall be for the value of the said merchandise so surrendered and the expenses incidental thereto.

• Insolvency Exclusion Clause

It is agreed that the Insolvency Exclusion Clause appearing in the relevant Institute Clause is deleted and replaced by the following:

“This insurance shall not cover loss damage or expense caused by insolvency or financial default of the owners managers charterers or operators of the vessel where, at the time of loading of the subject matter insured on board the vessel, the Assured are aware, or in the ordinary course of their business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage.”

This exclusion shall not apply where the insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the subject matter insured in good faith under a binding contract”.

Exclusion shall further not apply where Assured are not responsible for selection/charter of the vessel.

• Insured Value Clause

The Insured value for goods purchased and/or sold by the Assured shall be 110% of Invoice Value of the Goods plus expenses incurred for Custom duties, Freight and all costs incurred up to receipt at the final receiving destination.

Additional costs incurred after the discharge of the goods at the port of destination or place of delivery including but not limited to Customs duty, Freight, Fees, and all other costs may be declared by the Assured and shall be included in the Insured Value, provided that these additional costs has not already been included in the Insured Value or determined aforesaid.

• Labels Clause

Where loss or damage affects labels and/or capsules and/or wrappers, the Insurer agrees to pay the cost of new labels and/or capsules and/or wrappers any associated labor cost.

• Loading and Unloading Clause

This contract is deemed to include all loading and unloading process incurred until the goods arrived at the final destination.

• Landing, Warehousing and Forwarding Charges Clause

When landing, warehousing and forwarding charges are incurred by reason of a peril against, or the Insurer will pay landing, warehousing, forwarding and special charges to the port or places of destination.

• Over-carried Clause

Should any Interest be over-carried, this Contract extends to cover such Interest until it is returned to the port or placed of destination.

• Payment on Account Clause

Where the recoverability of a claim has been demonstrated and the only outstanding issue is the quantum of the loss, Underwriters agree to make a payment on account equal 75% of the lower amount in discussion. 

• Packaging & Containers Clause

Underwriters agree to hold the Assured covered against loss of or damage to packaging (including packaging materials, shipping containers, craters, pallets or the like) while carried during an Insured Transit caused by an insured event. 

• Packing Clause

In the event of a claim being made for loss or damage which is alleged to be caused by insufficiency or suitability of packing or preparation of the subject-matter insured, Insurers hereby agree that they will not use such alleged insufficiency or suitability as a defence against the claim in any case where the packing or preparation was carried out by a party other than the Named Assured and the insufficiency or suitability arose entirely without the Named Assured’s privity or knowledge. For the purpose of this clause “packing” shall be deemed to including stowage in a container and/or other similar intermodal methods of unit load. Including all loading/unloading risks.

The Assured agrees to assist Insurers in all respect to pursue rights of recovery against sellers and/or other third parties responsible for the loss or damage.

The above agreement is not to interfere with the insurers’ rights of subrogation against packers and/or their insurers. 

• Repacking Cost Clause

It is agreed that, in the event of the original shipping packages arriving at the final destination in a visibly damaged condition arising from a peril insured against, the cost or replacing such packages shall be for the account of the Insurer in those instances where it is an established custom of the Insured’s and/or consignee’s trade to deliver the goods to the final customer’s premises in the original shipping packages.

• Returned Goods Clause

In the event of shipments insured under this Policy being return for any reason, such shipments are covered hereunder, including whilst in the warehouse or elsewhere until finally disposes of by the Assured. Reports of such return shipments to be made to the Insurers by the Assured as soon as practicable after they have knowledge of the same.

In the case where the Assured has not been responsible for the cargo insurance on the original voyage of goods which are subsequently rejected and/or refused and a return transit is then arranged where cargo insurance is to be the responsibility of the Assured, then the Assured shall declare such return transit hereunder on cover terms and conditions applicable to such refused/rejects goods and pay premium at the relevant cover rate for such conditions.

• Re-consigned or Reshipped Interest Clause

Subject to the terms of this Contract where the Interest have been insured to a named port and re-consigned or reshipped direct from the wharf to ports or places elsewhere this insurance continues until final destination without payment of extra premium and without prior notification.

• Shut Out Clause

In the event of the Insured’s interest being “shut-out” from the vessel declared, this Contract extends to cover the Interest whilst waiting on the wharf, quay or pier or transfer to and whilst at another wharf, quay or pier, continues until delivered to the final destination.

• Sue and Labor Clause

In case of actual or imminent loss or damage, it shall be lawful and necessary for the Insured, their factors, servants or assigns, to sue labor and travel for in about the defense safeguard and recovery of the Interest, or any part thereof, without prejudice to this Contract nor shall the acts of the Insured or the Insurer in recovering, saving and preserving the Interest in case of loss or damage, be considered a waiver of acceptance of liability, to the charges whereof, the Insurer will contribute according to the rate and quantity of the sum hereon insured.

• Seller’s Interest Clause

This Insurance to cover Sellers Interest on F.O.B., C.F.R. or similar sales and is to cease when the interest is paid for by the Buyer.

Claims are to be limited to the extent that the Buyer fails to pay for lost or damaged goods and provided that such claim is recoverable under the terms, clauses and conditions applicable hereunder, Underwriters hereon are to be entitled to the Assured’s rights against Buyers as well as other parties.

• Shortage from Container Clause

Claim for theft, shortage or non delivery of a whole package or item shipped in a container shall not be invalidated solely because the seal appear intact on delivery, provided the Insurer is supplied with documentary evidence that the package or item was loaded into the container and copy of the discharge tally sheet or claused delivery notes to substantiate the loss.

• Voyage Clause

The Insurance hereunder attaches from the time the subject-matter becomes at the Assured’s risk or the Assured assumes interest or begins loading into the carrying conveyance for the commencement of transit and continues whilst the subject-matter is in transit and/or in store or elsewhere including during delays within or beyond the Assured’s control and including whilst awaiting Customs and/or regulatory approval and/or Port Clearance and further including any interest held for the purpose of consolidation and/or deconsolidation whether incidental to transit or otherwise until delivered to the intended final destination and/or when the Assured’s responsibility ceased and/or on delivery to the consignee’s or other final warehouse at the place where the transit covered hereunder is intended to cease. Including risks during transhipment, craft and barge risks, whether customary or otherwise. Also including loss of or damage to the subject-matter during loading prior to despatch and continuing thereafter while they await the commencement of the transit and unloading after arrival at the Assured’s or Consignee’s premises and (including during stuffing and unstuffing) where covered hereunder.

• Warehouse to warehouse extension clause

Cover attaches under this policy from the time the goods leave the original warehouse until delivery to the final warehouse, notwithstanding the Contract of Sale Terms.

Underwriters are to be subrogated to the Assured’s rights of recourse against any other parties.

• Additional Insured :

–       PT Pertamina …….., ………. (North West Java) Ltd, ……….. ONWJ B.V, SKK MIGAS,

–       PT. ………… Indah’s subcontractors,

its subsidiaries and affiliated companies, co-owners or joint ventures and their employees, officers agents, and affiliated parties shall be named as additional insureds under this insurance. However, such extention of coverage shall only apply to the extent of the liabilities specifically assumed by the Insured under said contract.

• Waiver of right of recovery or subrogation :

This policy is endorsed to provide that underwriters and insurance companies shall not have any right of recovery or subrogation against:

–       PT Pertamina …….., ………. (North West Java) Ltd, ……….. ONWJ B.V, SKK MIGAS,

–       PT. ………… Indah’s subcontractors,

its subsidiaries and affiliated companies, co-owners or joint ventures and their employees, officers agents, invitees, servants, contractors, subcontractors, underwriters and insurance companies, to the extent of the imdemnities given or liability owed by PT. ………….. Indah.

• Primary Insurance :

This policy is primary insurance and shall not be considered contributory, concurrent, double insurance or otherwise with any insurance policies of

–       PT Pertamina …….., ………. (North West Java) Ltd, ……….. ONWJ B.V, SKK MIGAS,

–       PT. ………… Indah’s subcontractors,

its subsidiaries and affiliated companies, co-owners or joint ventures and their employees, officers agents, and affiliated parties.

• Notice of Cancellation or Modification

30 days written notice to be given to and approved by PT Pertamina ………………… (PT. PHE ONWJ) prior to cancellation or material change in the policy(ies)

Deferred Premium Payment Warranty

Warranted first installment to be paid at 60th days and second and subsequent installments are due on 90th and 120th days from issuance date of this policy.


Institute Cargo Clauses

Other Marine Cargo Clauses

[Some] Other Marine Cargo Clauses


About the Author

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  • arzi fariandi wrote on 17 February, 2014, 9:38

    Permisi Pak Imam, mohon izin untuk mengcopy klausulanya…

    Terima Kasih


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