1/1/09
INSTITUTE WAR CLAUSES (AIR CARGO)
(excluding sendings by Post)
RISKS COVERED
Risks
1. This insurance covers, except as excluded by the provisions of Clause 3 below, loss of or damage to the
subject-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.
Salvage Charges
2. This insurance covers salvage charges, incurred to avoid or in connection with the avoidance of loss from any
cause except those excluded in Clause 3 below.
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 to withstand the ordinary incidents of the insured transit where such packing or
preparation is carried out by the Assured or their employees or prior to the attachment of this
insurance (for the purpose of these Clauses "packing" shall be deemed to include stowage in a container
and "employees" shall not include independent contractors)
3.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured
3.5 loss damage or expense arising from unfitness of aircraft conveyance or container for the safe carriage
of the subject-matter insured, where loading therein or thereon is carried out prior to attachment of
this insurance or by the Assured or their employees and they are privy to such unfitness at the time of
loading.
This exclusion shall not apply where the contract of 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.
3.6 loss damage or expense caused by delay, even though the delay be caused by a risk insured against
3.7 loss damage or expense caused by insolvency or financial default of the owners managers charterers or
operators of the aircraft where, at the time of loading of the subject-matter insured on board the
aircraft, the Assured are aware, or in the ordinary course of business should be aware, that such
insolvency or financial default could prevent the normal prosecution of the transit
This exclusion shall not apply where the contract of 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
3.8 any claim based upon loss of or frustration of the transit or adventure
3.9 loss damage or expense directly or indirectly caused by or arising from any hostile use of any weapon or
device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or
matter.
DURATION
Transit Clause
4. 4.1 This insurance
4.1.1 attaches only as the subject-matter insured and as to any part as that part is loaded on the aircraft
for the commencement of the air transit insured
and
4.1.2 terminates, subject to 4.2 and 4.3 below, either as the subject-matter insured and as to any part as
that part is discharged from the aircraft at the final place of discharge
or
on expiry of 15 days counting from midnight of the day of arrival of the aircraft at the final place of
discharge,
whichever shall first occur;
nevertheless,
subject to prompt notice to the Insurers and to an additional premium, such insurance
4.1.3 reattaches when, without having discharged the subject-matter insured at the final place of
discharge, the aircraft departs therefrom,
and
4.1.4 terminates, subject to 4.2 and 4.3 below, either as the subject-matter insured and as to any part as
that part is thereafter discharged from the aircraft at the final (or substituted) place of
discharge,
or
on expiry of 15 days counting from midnight of the day of re-arrival of the aircraft at the final place
of discharge or arrival of the aircraft at a substituted place of discharge,
whichever shall first occur.
4.2 If during the insured transit the aircraft arrives at an intermediate place to discharge the subjectmatter
insured for on-carriage by aircraft or oversea vessel, then, subject to 4.3 below and to an
additional premium if required, this insurance continues until the expiry of 15 days counting from
midnight of the day of arrival of the aircraft at such place, but thereafter reattaches as the
subject-matter insured and as to any part as that part is loaded on an on-carrying aircraft or
oversea vessel. During the period of 15 days the insurance remains in force after discharge only
whilst the subject-matter insured and as to any part as that part is at such intermediate place. If
the subject-matter insured is on-carried within the said period of 15 days or if the insurance
reattaches as provided in this Clause 4.2
4.2.1 where the on-carriage is by aircraft this insurance continues subject to the terms of these
Clauses,
or
4.2.2 where the on-carriage is by oversea vessel, the current Institute War Clauses (Cargo) shall
be deemed to form part of the contract of insurance and shall apply to the on-carriage by
sea.
4.3 If the air transit in the contract of carriage is terminated at a place other than the destination
agreed therein, that place shall be deemed to be the final place of discharge and this insurance
terminates in accordance with 4.1.2. If the subject-matter insured is subsequently consigned to
the original or any other destination, then, provided notice is given to the Insurers before the
commencement of such further transit and subject to an additional premium, this insurance
reattaches
4.3.1 in the case of the subject-matter insured having been discharged, as the subject-matter
insured and as to any part as that part is loaded on the on-carrying aircraft for the transit;
4.3.2 in the case of the subject-matter insured not having been discharged, when the aircraft
departs from such deemed final place of discharge;
thereafter this insurance terminates in accordance with 4.1.4.
4.4 Subject to prompt notice to Insurers, and to an additional premium if required, this insurance 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 the air carriers under the contract of
carriage.
(For the purpose of Clause 4
"oversea vessel" shall be deemed to mean a vessel carrying the subject-matter from one port or place to
another where such voyage involves a sea passage by that vessel)
Change of Transit
5. 5.1 Where, after attachment of this insurance, the destination is changed by the Assured, this must be
notified promptly to Insurers for rates and terms to be agreed. Should a loss occur prior to such
agreement being obtained cover may be provided but only if cover would have been available at a
reasonable commercial market rate on reasonable market terms.
5.2 Where the subject-matter insured commences the transit contemplated by this insurance (in
accordance with Clause 4.1), but, without the knowledge of the Assured or their employees the aircraft
leaves for another destination, this insurance will nevertheless be deemed to have attached at
commencement of such transit.
6. Anything contained in this contract which is inconsistent with Clauses 3.8, 3.9 or 4 shall, to the extent
of such inconsistency, be null and void.
CLAIMS
Insurable Interest
7. 7.1 In order to recover under this insurance the Assured must have an insurable interest in the subjectmatter
insured at the time of the loss.
7.2 Subject to Clause 7.1 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 the contract of
insurance was concluded, unless the Assured were aware of the loss and the Insurers were not.
Increased Value
8. 8.1 If any Increased Value insurance is effected by the Assured on the subject-matter insured under this
insurance the agreed value of the subject-matter insured 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 this insurance shall be in such proportion as the sum insured under this insurance
bears to such total amount insured.
In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured
under all other insurances.
8.2 Where this insurance is on Increased Value the following clause shall apply:
The agreed value of the subject-matter insured 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 the subject-matter insured by the Assured, and liability under this insurance shall be in
such proportion as the sum insured under this insurance bears to such total amount insured.
In the event of claim the Assured shall provide the Insurers with evidence of the amounts insured
under all other insurances.
BENEFIT OF INSURANCE
9. This insurance
9.1 covers the Assured which includes the person claiming indemnity either as the person by or on whose
behalf the contract of insurance was effected or as an assignee,
9.2 shall not extend to or otherwise benefit the carrier or other bailee.
MINIMISING LOSSES
Duty of Assured
10. It is the duty of the Assured and their employees and agents in respect of loss recoverable hereunder
10.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss,
and
10.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and
exercised
and the Insurers will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges
properly and reasonably incurred in pursuance of these duties.
Waiver
11.Measures taken by the Assured or the Insurers with the object of saving, protecting or recovering the
subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise
prejudice the rights of either party.
AVOIDANCE OF DELAY
12.It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances
within their control.
LAW AND PRACTICE
13.This insurance is subject to English law and practice.
NOTE:- Where a reattachment of cover is requested under Clause 4, or a change of destination is notified
under Clause 5, there is an obligation to give prompt notice to the Insurers and the right to such cover is
dependent upon compliance with this obligation.
© Copyright: 12/08 - Lloyd's Market Association (LMA) and International Underwriting Association of London
(IUA).
CL388
01/01/2009

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