INSTITUTE WAR CLAUSES (CARGO)(1/1/1982)
RISK COVERED1 This insurance covers, except as provided in Clauses 3 and 4 below, loss or damage to thesubject-matter insured caused by
1.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any
hostile act by or against a belligerent power
1.2 capture seizure arrest restraint or detainment, arising from risks covered under 1.1 above,and the consequences thereof or any attempt thereat.
1.3 derelict mines torpedoes bombs or other derelict weapons of war.
2 This insurance covers general average and salvage charges, adjusted or determinedaccording to the contract of affreightment and/or the governing law and practice, incurred to avoid,or in connection with the avoidance of loss from a risk covered under these clauses.
EXCLUSIONS
3 In no case shall this insurance cover
3.1 loss damage or expense attributable to wilful misconduct of the Assured
3.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of
the subject-matter insured
3.3 loss damage or expense caused by insufficiency or unsuitability of packing or
preparation of the subject-matter insured (for the purpose of this Clause 3.3 “packing” shallbe deemed to include stowage in a container or liftvan but only when such stowage is carriedout prior to attachment of this insurance or by the Assured or their servants)
3.4 loss damage or expense caused by inherent vice or nature of the subject-matterinsured
3.5 loss damage or expense proximately caused by delay, even though the delay becaused by a risk insured against (except expenses payable under Clause 2 above)
3.6 loss damage or expense arising from insolvency or financial default of the owners
managers charterers or operators of the vessel
3.7 any claim based upon loss of or frustration of the voyage or adventure
3.8 loss damage or expense arising from any hostile use of any weapon of war employing
atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter,
4.1 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 liftvan for the safe carriage of thesubject-matter insured,
where the Assured or their servants are privy to such unseaworthiness or unfitness, atthe time the subject-matter insured is loaded therein.
4.2 The Underwriters waive any breach of the implied warranties of seaworthiness ofthe ship and fitness of the ship to carry the subject-matter insured to destination, unless theAssured or their servants are privy to such unseaworthiness or unfitness.
DURATION
5.1 This insurance
5.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on anoversea vessel and5.1.2 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as toany part as that part is discharge from an oversea vessel at the final port or place of discharge, oron expiry of 15days counting from midnight of the day of arrival of the vessel at the final port orplace of discharge, whichever shall first occur; nevertheless, subject to prompt notice to theUnderwriters and to an additional premium, such insurance.
5.1.3 reattaches when, without having discharged the subject-matter insured at the final port
or place of discharge, the vessel sails therefrom and5.1.4 terminates, subject to 5.2 and 5.3 below, either as the subject-matter insured and as toany part as that part is thereafter discharged from the vessel at the final (or substituted) port orplace of discharge, or on expiry of 15 days counting from midnight of the day of re-arrival of thevessel at the final port or place or discharge or arrival of the vessel at a substituted port or place ofdischarge, whichever shall first occur.
5.2 If during the insured voyage the oversea vessel arrives at an intermediate port or place todischarge the subject-matter insured for on-carriage by oversea vessel or by aircraft, or the goods
are discharged from the vessel at a port or place of refuge, then, subject to 5.3 below and to an
additional premium if required, this insurance continues until the expiry of 15 days counting frommidnight of the day of arrival of the vessel at such port or place, but thereafter reattaches as thesubject-matter insured and as to any part as that part is loaded on an on-carrying oversea vessel oraircraft. During the period of 15 days the insurance remains in force after discharge only whilst thesubject-matter insured and as to any part as that part is at such port of place. If the goods areon-carried within the said period of 15 days or if the insurance reattaches as provided in thisClause 5.2
5.2.1 where the on-carriage is by oversea vessel this insurance continues subject to the termsof these clauses, or
5.2.2 where the on-carriage is by aircraft, the current Institute War Clauses (Air Cargo)(excluding sending by Post) shall be deemed to form part of this insurance and shall apply to theon-carriage by air.

5.3 If the voyage in the contract of carriage is terminated at a port or place other than thedestination agreed therein, such port or place shall be deemed the final port of discharge and suchinsurance terminates in accordance with 5.1.2. If the subject-matter insured is subsequently
reshipped to the original or any other destination, then provided notice is given to theUnderwriters before the commencement of such further transit and subject to an additional
premium, such insurance reattaches
5.3.1 in the case of the subject-matter insured having been discharged, as the subject-matterinsured and as to any part as that part is loaded on the on-carrying vessel for the voyage;
5.3.2 in the case of the subject-matter not having been discharged, when the vessel sails fromsuch deemed final port of discharge;thereafter such insurance terminates in accordance with 5.1.4
5.4 The insurance against the risks of mines and derelict torpedoes, floating or submerged, isextended whilst the subject-matter insured or any part thereof is on craft whilst in transit to orfrom the oversea vessel, but in no case beyond the expiry of 60days after discharge from theoversea vessel unless otherwise specially agreed by the Underwriters.
5.5 Subject to prompt notice to Underwriters, and to an additional premium if required, thisinsurance shall remain in force within the provisions of these Clauses during any deviation, or any
variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers
under the contract of affreightment.
(For the purpose of Clause5“arrival” shall be deemed to mean that the vessel is anchored, moored or otherwise secured ata berth or place within the Harbour Authority area. If such a berth or place is not available, arrivalis deemed to have occurred when the vessel first anchors, moors or otherwise secures either at oroff the intended port or place of discharge“oversea vessel” shall be deemed to mean a vessel carrying the subject-matter from one port
or place to another where such voyage involves sea passage by that vessel)
6 Where, after attachment of this insurance, the destination is changed by the Assured, held
covered at a premium and on conditions to be arranged subject to prompt notice being given to theUnderwriters.
7 Anything contained in this contract which is inconsistent with Clauses 3.7,3.8 or 5 shall, tothe extent of such inconsistency, be null and void.
CLAIMS
8.1 In order to recover under this insurance the Assured must have an insurable interest in thesubject-matter insured at the time of the loss.
8.2 Subject to 8.1 above, the Assured shall be entitled to recover for insured loss occurring
during the period covered by this insurance, notwithstanding that the loss occurred before thecontract of insurance was concluded, unless the Assured were aware of the loss and theUnderwriters were not.
9.1 If any Increased Value insurance is effected by the Assured on the cargo insured hereinthe agreed value of the cargo shall be deemed to be increased to the total amount insured under
this insurance and all Increased Value insurances covering the loss, and liability under thisinsurance shall be in such proportion as the sum insured herein bears to such total amount insured.
In the event of claim the Assured shall provide the Underwriters with evidence of theamounts insured under all other insurances.
9.2 Where this insurance is on Increased Value the following clause shall apply:
The agreed value of the cargo shall be deemed to be equal to the total amount insured under
the primary insurance and all Increased Value insurances covering the loss and effected on thecargo by the Assured, and liability under this insurance shall be in such proportion as the sum
insured herein bears to such total amount insured.
In the event of claim the Assured shall provided the Underwriters with evidence of theamounts insured under all other insurances.
BENEFIT OF INSURANCE
10 This insurance shall not inure to the benefit of the carrier or other bailee.
MINIMISING LOSSES
11 It is the duty of the Assured and their servants and agents in respect of loss recoverable
hereunder
11.1 to take such measures as may be reasonable for the purpose of averting of minimizing
such loss and11.2 to ensure that all rights against carriers, bailees or other third parties are properly
preserved ad exercised and the Underwriters will, in addition to any loss recoverable hereunder,
reimburse the Assured for any charges properly and reasonably incurred in pursuance of theseduties.
12 Measure taken by the Assured or the Underwriters with object of saving, protecting or
recovering the subject-matter insured shall not be considered as a waiver or acceptance ofabandonment or otherwise prejudice the rights of either party.
AVOIDANCE OF DELAY
13 It is a condition of this insurance that the Assured shall act with reasonable dispatch in all
circumstances within their control.
LAW AND PRACTICE
14 This insurance is subject to English law and practice.
NOTE: It is necessary for the Assured when they become aware of an event which is “heldcovered” under this insurance to give prompt notice to the Underwriters and the right to suchcover is dependent upon compliance with this obligation.