Marine Cargo Insurance

About This Policy

This is an annual open policy for goods in transit. It insures goods you send and receive during the policy period, without a separate declaration for each transit. It is built on the Institute Cargo Clauses, which are the standard cargo terms of the London and Australian markets. This wording does not repeat those clauses. It names the clauses that apply and adds what they do not say: the transits insured, Australian law, the basis of valuation, the limit any one conveyance, the goods that are excluded, cover for transits within Australia, and how the premium is adjusted.

It has two sections. The schedule shows which apply.

The schedule shows the kinds of transit insured (import, export and inland), the cover level for the Transit section, (A), (B) or (C), the limit any one conveyance and the excess.

This policy, together with your schedule, your proposal, the Institute clauses named in it and any endorsements shown in the schedule, forms your contract of insurance with us. Please read them together and tell us if anything is incorrect. The How the Parts of This Policy Fit Together condition says which part applies where they differ. Words with special meanings are listed in the Definitions section.

Version and Document History

This document is version-controlled. The version and date shown on the cover page and in the footer of each page govern this text. The version stated in your schedule as current at the start of the policy period applies for the whole policy period, unless your schedule or an endorsement states otherwise.

The Institute clauses that apply are identified by their number and date in the Institute Clauses That Apply clause and the War and Strikes Section clause. A later edition of an Institute clause applies only if a new version of this wording, or an endorsement, names it.

Important Information

Who issues this policy. The insurer, its Australian Financial Services Licence and its contact details are shown in the schedule. Where the insurer subscribes to the General Insurance Code of Practice, the schedule says so and which parts of this policy the Code applies to.

[WP REVIEW: the General Insurance Code of Practice excludes insurance to which the Marine Insurance Act 1909 (Cth) applies. Confirm whether cover for Non-Sea Transits is within the Code and whether the adopting insurer applies the Code to the whole policy.]

Who is insured. You are the business named in the schedule. A person who holds a certificate of insurance issued under this policy is insured for the transit the certificate describes, as the Certificates of Insurance extension sets out.

Your duty when you apply. The law sets a different duty depending on how the goods are carried. This policy treats each transit according to its legal character: a Sea Transit (carriage by sea, including coastal carriage between Australian ports) is marine insurance, and a Non-Sea Transit (carriage by air, post, courier, road or rail) is not. The Marine Insurance Act and Insurance Contracts Act condition explains the effect.

• Sea Transits are governed by the Marine Insurance Act 1909 (Cth). Before the policy is entered into, you must disclose to us every circumstance you know that is material to the risk: every circumstance that would influence a prudent insurer in fixing the premium or deciding whether to take the risk. You do not need to disclose a circumstance that reduces the risk, that we know or are presumed to know, or that we waive. If you do not disclose a material circumstance, or you misrepresent one, that Act may allow us to avoid the contract as it applies to Sea Transits.
• Non-Sea Transits are governed by the Insurance Contracts Act 1984 (Cth). Before the policy is entered into, renewed, extended, varied or reinstated, you have the duty of disclosure in s.21 of that Act: you must tell us every matter you know, or that a reasonable person in your circumstances could be expected to know, that is relevant to our decision whether to insure you and on what terms. You do not need to tell us anything that reduces the risk, that is common knowledge, that we know or should know as an insurer, or that we waive. If you do not comply, we may reduce or refuse a claim, or cancel the policy, only as that Act allows.

We will not use a failure to disclose, or a misrepresentation, that relates to Sea Transits to avoid this policy as it applies to Non-Sea Transits, and we will not use one that relates to Non-Sea Transits to avoid this policy as it applies to Sea Transits.

[WP REVIEW: confirm the sections of the Marine Insurance Act 1909 (Cth) for disclosure and representations; confirm that a single policy covering both Sea Transits and Non-Sea Transits is governed by each Act for the part to which it applies, and that the separate treatment promised above is effective and consistent with s.52 of the Insurance Contracts Act 1984 (Cth).]

What to tell us during the policy period. The Telling Us About Changes obligation lists the changes you must tell us about, such as carrying goods of a new kind or by a new route.

Who This Policy Is For. This wording is written for businesses and professionals. Some buyers, such as small businesses, may be retail clients under the Corporations Act 2001 (Cth). Where a buyer is a retail client, the issuer must give a Product Disclosure Statement and make a Target Market Determination available. This wording is not itself a Product Disclosure Statement.

[WP REVIEW: confirm the retail client position under s.761G(5) of the Corporations Act 2001 (Cth) and the Corporations Regulations for this policy, including where the insured is a small business.]

Commission and fees. The schedule or the quote shows any commission or fee paid to your broker in connection with this policy.

Financial Claims Scheme. If the schedule shows the insurer is an APRA-authorised general insurer, you may be entitled to a payment under the Financial Claims Scheme if the insurer becomes insolvent. Information is available at www.fcs.gov.au.

Schedule

(Completed separately for each policy. It contains your specific details.)

The schedule shows:

• Your name, ABN and address
• The policy period, with its start and end dates
• The sections that apply
• The kinds of transit insured: import transits, export transits and inland transits, and for each the conveyances used and your estimate of the annual sendings
• The cover level for the Transit section: (A), (B) or (C)
• The goods insured, described by kind
• The limit any one conveyance, and the accumulation limit if it differs from the Accumulation extension
• The basis of valuation, where it differs from the Basis of Valuation provision
• The excess, and any special excess shown for an endorsement
• Whether the premium is adjustable, the adjustment rates and the minimum premium (see the Premium and Annual Sendings provision)
• The premium, including any stamp duty and GST
• Any commission or fee paid to your broker
• The insurer and its licence, and the state or territory whose law governs this policy (see the Australian Law and Practice condition)
• The endorsements that apply, by code, with their variables

Definitions

In this policy, the words below have the meanings given to them here, whether or not they start with a capital letter. Words defined in an Institute clause have the meaning that clause gives them when they are used in it.

What We Cover

This part sets out the Transit section and the War and Strikes section. Each section applies only if the schedule shows it.

Transit Section

We insure the goods against loss or damage during transit, for the kinds of transit shown in the schedule:

• for import transits and export transits, on the terms of the Institute Clauses that the Institute Clauses That Apply clause applies to the transit and to the cover level shown in the schedule; and
• for inland transits, on the terms of the Inland Transit Cover clause at the cover level shown in the schedule.

Every transit of a kind shown in the schedule that starts during the policy period is insured automatically. You do not need to declare each transit to us. You tell us your annual sendings as the Premium and Annual Sendings provision requires.

For any one conveyance, or any one place in the course of transit, we pay up to the limit any one conveyance, less the excess. The Accumulation extension applies where goods accumulate at a place through circumstances beyond your control. General average and salvage charges are paid in addition to the limit any one conveyance where the Institute Clauses provide for them, up to the proportion that the insured value of the goods bears to their contributory value.

Institute Clauses That Apply

For import transits and export transits, the following Institute Clauses apply.

The following also apply to every import transit and export transit:

• Institute Classification Clause CL354 1/1/01, for goods carried by sea;
• Institute Cargo ISM Endorsement JC98/019 1/5/98, for goods carried by sea;
• Institute Radioactive Contamination, Chemical, Biological, Bio-chemical and Electromagnetic Weapons Exclusion Clause CL370 10/11/03;
• Institute Cyber Attack Exclusion Clause CL380 10/11/03;
• Termination of Transit Clause (Terrorism) JC2009/056 1/1/09;
• Sanction Limitation and Exclusion Clause JC2010/014 11/08/10; and
• Communicable Disease Exclusion (Cargo) JC2020-011 17/04/20.

The Institute Cargo Clauses (A) are an all risks cover, subject to their exclusions. The Institute Cargo Clauses (B) and (C) cover named risks only. The Institute Cargo Clauses (Air) are an all risks cover, whatever cover level the schedule shows.

Each of these clauses applies as amended by the Australian Law and Practice condition. The Text of the Institute Clauses condition explains where to find their text.

[WP REVIEW: confirm each clause number and date against the Joint Cargo Committee register before each release.]

Inland Transit Cover

For inland transits, we insure the goods at the cover level shown in the schedule.

Cover (A). All risks of loss of or damage to the goods.

Cover (B). Loss of or damage to the goods reasonably attributable to:

• fire or explosion;
• the conveyance overturning or being derailed, or colliding with or striking any external object other than water;
• collapse of a bridge, building or other structure onto the conveyance;
• earthquake, landslide, lightning, storm or flood;
• the stranding, grounding, sinking or capsizing of a vessel or ferry carrying the conveyance or the goods;
• entry of sea, lake or river water into the conveyance, container or place of storage;
• the total loss of any package lost overboard or dropped while being loaded onto or unloaded from the conveyance; and
• theft of an entire package, or non-delivery of an entire package, while in the custody of a professional carrier.

Cover (C). Loss of or damage to the goods reasonably attributable to:

• fire or explosion;
• the conveyance overturning or being derailed, or colliding with or striking any external object other than water;
• collapse of a bridge onto the conveyance; and
• the stranding, grounding, sinking or capsizing of a vessel or ferry carrying the conveyance or the goods.

Exclusions for inland transits. The exclusions of the Institute Cargo Clauses (A) apply to inland transits under Cover (A), and the exclusions of the Institute Cargo Clauses (B) apply under Covers (B) and (C), as if they were written here. For this purpose, those exclusions are read as follows:

• a reference to a vessel, craft, carrying vessel or carrying conveyance includes the conveyance used for the inland transit;
• the exclusions for unseaworthiness and for war do not apply to inland transits, and loss or damage caused by war is excluded under the War on Land exclusion; and
• the exclusion for strikes, riots, civil commotions and terrorism applies, except to the extent that the War and Strikes section covers them.

We also pay the cost of extinguishing a fire, removing debris of the goods, and reloading and forwarding the goods to their destination after an insured event, where the cost is reasonably incurred, up to 10% of the limit any one conveyance in addition to it.

When Transit Starts and Ends

Import and export transits. The Transit Clause, the Termination of Contract of Carriage Clause and the Change of Voyage Clause of the Institute Clauses that apply set when cover starts and ends. Cover for an import transit ends, at the latest, when the goods are delivered to the final warehouse or place of storage in Australia named in the contract of carriage, or at the end of the period after discharge that the Transit Clause allows.

Inland transits. Cover starts when the goods are first moved in the warehouse, premises or place of storage at the start of the transit, for the purpose of loading them onto the conveyance for the transit. It continues during the ordinary course of transit, including loading, unloading, transhipment and storage in the ordinary course of transit. It ends at the first of:

• completion of unloading at the place of delivery named in the contract of carriage, or chosen by you;
• 7 days after the conveyance arrives at the town or locality of that place of delivery; and
• when you or the consignee choose to use the goods, or to store them, other than in the ordinary course of transit.

Storage in the course of an inland transit for more than 7 days at any one place is not insured unless the E09 Storage in Transit endorsement applies.

Transits that start before the policy period ends. A transit that starts during the policy period stays insured until it ends, even if it ends after the policy period, provided it continues without delay within your control.

War and Strikes Section

If the schedule shows the War and Strikes section, the following apply:

War cover does not apply to inland transits, and war cover for goods on land outside Australia applies only as the Institute War Clauses allow.

For import and export transits, you or we may cancel the cover under this section by giving the other 7 days' written notice, or 48 hours' written notice for strikes cover on transits to or from the United States of America. Cancellation takes effect at the end of the notice period and does not affect a transit that started before then. For inland transits, the cover under this section ends only as the Cancellation condition allows.

Each of these clauses applies as amended by the Australian Law and Practice condition.

Extensions

The following extensions apply to the Transit section. They are subject to the limit any one conveyance unless they say otherwise, and to the other terms of this policy.

Accumulation

If, through circumstances beyond your control, goods insured by this policy accumulate at any one place in the course of transit to a value above the limit any one conveyance, we cover them up to the accumulation limit shown in the schedule or, if none is shown, up to twice the limit any one conveyance. Examples are goods held at a port or depot after a delay, a missed connection or a carrier's failure.

You must tell us as soon as you know of the accumulation. We charge an additional premium on the value above the limit any one conveyance, at the accumulation rate shown in the schedule. If the schedule shows no accumulation rate, the rate is the annual rate for the transit, applied to that value for the days the goods were accumulated.

Errors and Omissions

An unintentional error or omission by you in describing the goods, the conveyance or the route of a transit does not prejudice your cover, provided you tell us as soon as you discover it and pay any additional premium we reasonably charge. This extension does not insure excluded goods, or a transit of a kind not shown in the schedule.

Certificates of Insurance

Where you sell goods on terms that require you to insure them for the buyer, such as CIF or CIP under Incoterms 2020, we will issue a certificate of insurance for the transit at your request.

A certificate is evidence of cover under this policy for the transit it describes. The person named in it, or to whom it is endorsed, may claim under this policy for that transit as if they were insured, subject to the terms of this policy and of the certificate.

A certificate may show a cover level higher than the schedule shows, for example cover (A) where the sale is on CIP terms, only if you ask us before the transit starts and we agree. We may charge an additional premium for the higher cover level.

Packing Materials and Labels

Where only labels, capsules, wrappers or packing are lost or damaged, we pay the reasonable cost of replacing them and repacking or relabelling the goods, and not for loss of value of the goods themselves.

How We Pay Claims

This part applies to claims under both sections.

Basis of Valuation

Goods are valued as follows, both for the annual sendings and for claims, unless the schedule states another basis.

The value is the agreed value of the goods for the Institute Clauses. Where an invoice is in a foreign currency, it is converted to Australian dollars at the rate on the date of the invoice. Import duty and taxes are not part of the value unless the E07 Import Duty and Taxes endorsement applies.

For a partial loss, we pay the agreed value of the goods lost, or the proportion of the agreed value that the reduction in sound value bears to the sound value, or the reasonable cost of repair or reconditioning, whichever is less.

Excess

We deduct the excess shown in the schedule from each claim for loss or damage from one event, or to goods on one conveyance. If an endorsement shows a special excess for the loss or damage, that excess replaces the excess shown in the schedule.

The excess does not apply to general average or salvage charges, or to a total loss of all the goods on a conveyance.

Premium and Annual Sendings

Unless the schedule says the premium is not adjustable, the premium is a deposit calculated on your estimate of the annual sendings for each kind of transit.

Within 60 days after the end of the policy period, tell us the actual annual sendings for each kind of transit. We will adjust the premium at the rates shown in the schedule. If the adjusted premium is higher than the deposit, you pay the difference. If it is lower, we refund the difference, but we keep at least the minimum premium shown in the schedule.

If you do not tell us the actual annual sendings within that time, we may ask to see your records under the Records of Sendings obligation, and adjust the premium on them.

Recoveries

When we pay a claim, we take over your rights to recover from a carrier, bailee or any other person who is responsible for the loss or damage, as far as the law allows and up to the amount we paid. You must give us the help we reasonably ask for to bring a recovery, at our cost.

Anything recovered from another person, after the reasonable costs of recovery, is applied first to make you whole for the part of your loss that we did not pay, including your excess, and then to reimburse us. A recovery under a certificate of insurance is dealt with in the same way for the person named in the certificate.

We do not take over a right against a person who is insured under this policy, unless that person caused the loss deliberately.

GST on Claims

Where you are entitled to an input tax credit for the GST on the cost of replacing or repairing goods, we pay the claim net of that credit. Each limit in this policy includes GST to the extent you are not entitled to an input tax credit for it.

Exclusions

These exclusions apply in addition to the exclusions in the Institute Clauses that apply.

Excluded Goods

This policy does not insure the following goods unless the schedule names them as goods insured:

• livestock and other live animals;
• bulk cargo carried loose in the hold of a vessel or in a bulk tanker, silo or hopper;
• cash, bank notes, coins, securities, negotiable instruments, credit and debit cards, tickets and vouchers;
• bullion, precious metals, precious stones and jewellery;
• works of art, antiques and collectibles;
• household goods and personal effects being moved;
• motor vehicles, mobile plant, aircraft and boats, while travelling under their own power;
• explosives, fireworks and ammunition;
• tobacco and vaping products; and
• goods carried on the deck of a vessel other than in a closed container.

Transits Outside Australia

This policy does not insure a transit that neither begins nor ends in Australia, unless the schedule says it does.

War on Land

This policy does not insure loss or damage during an inland transit caused by war, civil war, revolution, rebellion, insurrection or civil strife arising from them, or any hostile act by or against a belligerent power, or by capture, seizure, arrest, restraint or detainment arising from them.

Delay and Loss of Market

This policy does not insure loss of market, loss of profit, or any loss caused by delay, even if the delay is caused by a risk insured, except general average and salvage charges.

Your Obligations

The Marine Insurance Act and Insurance Contracts Act condition and the Insurance Contracts Act 1984 (Cth) condition set out how the law limits what we may do if you do not meet these obligations.

Telling Us About a Loss

Tell us, or the surveyor or agent shown in the schedule or on the certificate, as soon as reasonably possible after you know of loss or damage. Keep the damaged goods and their packing until we, or our surveyor, have had a reasonable opportunity to inspect them, unless keeping them would be unsafe or unlawful.

Where loss or damage is apparent when the goods are delivered, note it on the delivery receipt before you sign it.

Preserving Rights Against Carriers

You must take reasonable steps to preserve the rights of recovery against a carrier, bailee or other person who may be responsible for loss or damage, including:

• making a written claim on them within the time their contract of carriage or the law allows;
• not giving a clean receipt for goods that are damaged or short; and
• not agreeing to release them from liability or to limit their liability beyond the terms of their usual contract of carriage, without our agreement.

This obligation applies to all transits, and is in addition to the Duty of Assured Clause in the Institute Clauses for import and export transits. It is an obligation, not a warranty. If you do not meet it, we may reduce our payment only by the amount that fairly represents the extent to which our rights of recovery were prejudiced, as the Insurance Contracts Act 1984 (Cth) condition sets out.

Minimising Loss

For inland transits, you must take reasonable steps to avoid or minimise loss or damage, as the Duty of Assured Clause in the Institute Clauses requires for import and export transits. We pay the reasonable costs you incur in doing so, in addition to the claim, as that clause provides.

Records of Sendings

Keep records of each transit, such as invoices, bills of lading, air waybills and consignment notes, for at least two years after the end of the policy period. Let us inspect them on reasonable notice.

Telling Us About Changes

Tell us before you:

• carry goods of a kind not described in the schedule;
• carry goods by a kind of transit or conveyance not shown in the schedule;
• send or receive goods to or from a country or area that you have not told us about, where the area is subject to sanctions or is listed as a war risk area by the Joint War Committee of the Lloyd's Market Association; or
• expect the annual sendings for any kind of transit to exceed your estimate by more than 25%.

This is an obligation, not a warranty. Cover does not extend to goods, kinds of transit or areas that the schedule does not show, whether or not you tell us, until we agree to insure them. That is the scope of the cover, not a penalty. If you do not tell us about annual sendings that exceed your estimate, the premium is adjusted under the Premium and Annual Sendings provision and cover is not affected. For anything else you did not tell us, the Insurance Contracts Act 1984 (Cth) condition applies.

We may change the premium or terms for the change, or tell you that the change will not be insured, by notice to you. A change you tell us about is insured on the terms we agree.

General Conditions

These conditions apply to the whole policy.

Marine Insurance Act and Insurance Contracts Act

Which Act applies depends on how the goods are carried, not on whether the transit is an import, an export or an inland transit.

• A Sea Transit, including coastal carriage between Australian ports, is marine insurance. The Marine Insurance Act 1909 (Cth) governs it, and the Insurance Contracts Act 1984 (Cth) does not apply to it by force of its own terms.
• A Non-Sea Transit, that is carriage by air, post, courier, road or rail, is governed by the Insurance Contracts Act 1984 (Cth).

Each Act applies to this policy only for the part to which it applies. A remedy that one Act gives us for a Sea Transit does not reach a Non-Sea Transit.

To the extent the Insurance Contracts Act 1984 (Cth) applies, nothing in this policy excludes, restricts or modifies any right you have under it. The Insurance Contracts Act 1984 (Cth) condition says how section 54 applies, including to Sea Transits.

The obligations in this policy, including those in the Obligations section, in an endorsement and in the Institute Clauses that this policy applies, are obligations and conditions of cover. They are not warranties. What follows if you do not meet one is set out in the Insurance Contracts Act 1984 (Cth) condition. The warranties that the Marine Insurance Act 1909 (Cth) implies by law are not changed by this policy.

[WP REVIEW: confirm which sections of the Marine Insurance Act 1909 (Cth) and the Insurance Contracts Act 1984 (Cth) apply to each part, in particular s.9(1)(d) of the Insurance Contracts Act 1984 (Cth), and whether any land carriage incidental to a sea voyage falls on the marine side.]

Insurance Contracts Act 1984 (Cth)

Nothing in this policy excludes, restricts or modifies the operation of the Insurance Contracts Act 1984 (Cth). Where this policy is inconsistent with the Act, the Act prevails.

If this policy would otherwise let us refuse to pay a claim, in whole or in part, because of something you did or did not do after this policy was entered into, section 54 of the Act applies. We may not refuse to pay the claim only because of that act or omission. Our liability is reduced by the amount that fairly represents the extent to which our interests were prejudiced. Where the act or omission could reasonably be regarded as capable of causing or contributing to the loss, we may refuse to pay only the part of the claim that the act or omission caused or contributed to. We may not refuse any part that you prove the act or omission did not cause. This applies to every condition, exclusion, limit and obligation in this policy, not only to the claims conditions.

We apply the same treatment to a Sea Transit, by agreement, for every obligation and condition that this wording or an endorsement states. It does not change the warranties that the Marine Insurance Act 1909 (Cth) implies by law, or the terms of the Institute Clauses about the seaworthiness of the vessel.

[WP REVIEW: the Insurance Contracts Act 1984 (Cth) does not apply of its own force to a Sea Transit. Confirm whether the adopting insurer will extend this treatment by contract to Sea Transits, and whether it should also reach the warranties and the Institute Clauses.]

How the Parts of This Policy Fit Together

Where the parts of this policy deal with the same matter differently, they apply in this order: the schedule, then an endorsement, then this wording, then the Institute Clauses.

An Institute clause applies only to the transits and cover level to which this wording, the schedule or an endorsement applies it. Where this wording amends an Institute clause, the amendment is made by this wording; the published text of the clause is not changed.

Australian Law and Practice

Each Institute clause that applies to this policy is amended so that its Law and Practice clause reads: "This insurance is subject to Australian law and practice."

This policy is governed by the law of the state or territory of Australia shown in the schedule for this purpose. If none is shown, it is governed by the law of New South Wales.

Jurisdiction

You and we submit to the jurisdiction of the courts of the state or territory whose law governs this policy, the Federal Court of Australia, and any court that may hear appeals from them.

Text of the Institute Clauses

The Institute Clauses are published by the Lloyd's Market Association and the International Underwriting Association of London, which own their copyright. They form part of this policy by reference to their number and date. They are not part of this wording's text and are not licensed under Licence and Trademark Notice.

We give you a copy of each Institute clause that applies at or before the start of the policy period, and again at any time on request. This includes the Institute Cargo Clauses (A) and (B) whose exclusions the Inland Transit Cover clause applies to inland transits as if they were written there.

[WP REVIEW: confirm that incorporating the Institute Clauses by reference, and applying their exclusions to inland transits as if written in this wording, is effective, and whether the exclusions should instead be set out in full in this wording.]

Cancellation

You may cancel this policy at any time by telling us. We refund the premium for the unexpired period of insurance on a pro-rata basis, less any non-refundable government charges, as the Premium and Annual Sendings provision adjusts it.

We may cancel this policy only as the Insurance Contracts Act 1984 (Cth) allows, by giving you written notice as that Act requires. We refund the premium for the unexpired period on a pro-rata basis. This applies to a Non-Sea Transit.

For a Sea Transit, the Insurance Contracts Act 1984 (Cth) does not apply of its own force. We may cancel this policy as it applies to Sea Transits by giving you 30 days' written notice. The War and Strikes section may be cancelled on shorter notice as the War and Strikes Section clause sets out.

Cancellation does not affect a transit that started before it took effect. That transit stays insured until it ends under the When Transit Starts and Ends clause.

When this policy is cancelled, we adjust the premium under the Premium and Annual Sendings provision on the annual sendings for transits that started before cancellation. We keep at least the proportion of the minimum premium for the time the policy was in force.

[WP REVIEW: confirm that 30 days' notice for cancellation of cover for Sea Transits is appropriate where the Insurance Contracts Act 1984 (Cth) does not apply, that keeping the pro-rata minimum premium is consistent with the library's cancellation position, and that the shorter notice for war and strikes cover can apply to Non-Sea Transits.]

Fraudulent Claims

If a claim is made fraudulently, we may refuse to pay it. For a Non-Sea Transit, s.56 of the Insurance Contracts Act 1984 (Cth) applies. For a Sea Transit, the Marine Insurance Act 1909 (Cth) and the general law apply.

Sanctions

We do not provide cover, pay any claim or provide any benefit under this policy to the extent that doing so would expose us to any sanction, prohibition or restriction under:

• the Autonomous Sanctions Act 2011 (Cth), the Charter of the United Nations Act 1945 (Cth), or regulations made under either Act; or
• the trade or economic sanctions laws of the United Kingdom, the United States of America or the European Union, to the extent they apply to us.

This condition applies in addition to the Sanction Limitation and Exclusion Clause named in the Institute Clauses That Apply clause.

[WP REVIEW: confirm that naming the UK, US and EU regimes is appropriate for Australian capacity; this is a deliberate library-wide scope choice.]

Other Insurance

If a loss covered by this policy is also covered by another insurance policy, we will not refuse or reduce our payment because of that other insurance. We may seek contribution from the other insurer as the law allows. This does not apply where the schedule or an endorsement states that this policy is excess of a specified underlying policy, in which case this policy pays only after the limit of that specified policy is exhausted.

This applies to goods that are also insured by a buyer, a seller or any other person, including goods insured under a certificate of insurance issued under this policy and goods that a buyer also insures on its own policy. Where goods are insured both under this policy and under a policy that a buyer or seller holds for the same transit, each insurer pays its rateable share of the loss, in proportion to the amount each has insured, and neither insurer may refuse to pay because the other policy exists.

GST

The premium includes GST where it applies, under A New Tax System (Goods and Services Tax) Act 1999 (Cth). Insurance of the international transport of goods may be GST-free; the schedule shows the GST charged. Claims are paid as the GST on Claims provision sets out. Tell us your entitlement to input tax credits when you make a claim.

Privacy

We collect, use and disclose personal information about you, your employees and others named in the proposal or a claim to assess the proposal, administer this policy and manage claims, in accordance with the Privacy Act 1988 (Cth) and our privacy policy. Our privacy policy explains how a person can access and correct their information and how to complain about a privacy matter.

Complaints and Disputes

If you are unhappy with our service or a decision, contact us at the details in the schedule. We will acknowledge the complaint within one business day and give our decision within 30 calendar days.

If you are not satisfied with our response, or we have not responded within 30 calendar days, you may be able to take the complaint to the Australian Financial Complaints Authority (AFCA), a free and independent dispute resolution service, if it is within AFCA's rules: www.afca.org.au, 1800 931 678, info@afca.org.au.

Headings and References

Headings are for convenience only. A reference to legislation includes any legislation that amends or replaces it. A reference to a clause by its heading is a reference to that clause as it appears in this wording. A reference to an Institute clause is to the edition identified by its number and date in this policy.

How to Make a Claim

1. Take reasonable steps to protect the goods from further loss or damage (see the Minimising Loss obligation).
2. Contact your broker, or contact us or the surveyor or agent shown in the schedule or on the certificate, as soon as you can.
3. Make a written claim on the carrier, and keep the delivery receipt, the contract of carriage and the packing (see the Preserving Rights Against Carriers obligation).
4. Tell the police about any theft.
5. Give us the invoice, the packing list, the bill of lading, air waybill or consignment note, any survey report, and photographs of the damage.
6. We will acknowledge your claim, keep you informed, and tell you our decision.

Endorsement Library

An endorsement applies only if its code is shown in the schedule. Each endorsement changes this policy only as it states, and is read together with the variables shown for it in the schedule. Where an endorsement and the rest of this policy conflict, the endorsement applies to the extent of the conflict. If a variable an endorsement needs is not shown in the schedule, the default stated in the endorsement applies; if it has no default, the endorsement does not apply until we show the variable in the schedule.

E01 Temperature-Controlled Goods

This endorsement applies to goods that must be kept within a temperature range during transit, as described in the schedule for this endorsement.

We cover loss of or damage to those goods caused by a change in temperature that results from the breakdown of the refrigerating machinery or the insulation of the conveyance or container, where the breakdown lasts for at least the period shown in the schedule for this endorsement. This cover applies whatever the cover level shown in the schedule, and despite the exclusions in the Institute Clauses for inherent vice and for delay, to the extent of the change in temperature only.

This cover applies on these conditions:

• the goods are in sound condition and at the required temperature when the transit starts;
• the refrigerating machinery is set to the required temperature, and you keep, or ask the carrier to keep, a temperature record for the transit; and
• the goods are carried by a professional carrier, or in your own vehicle fitted with a working temperature alarm.

These conditions are not warranties. If you do not meet one, we may refuse only the part of the claim that the failure caused or contributed to, as the Insurance Contracts Act 1984 (Cth) condition sets out.

We do not cover loss or damage caused by the goods being packed or loaded at the wrong temperature, by the machinery being switched off or set wrongly by you or your employees, or by a failure to supply power that lasts less than the period shown.

Schedule variables: goods and temperature range; minimum breakdown period (default 24 hours); special excess.

E02 Used Goods

For goods that are used, second-hand or reconditioned, the Transit section covers only:

• for import and export transits by sea, the risks covered by the Institute Cargo Clauses (C), together with theft or non-delivery of an entire package;
• for import and export transits by air, the risks covered by the Institute Cargo Clauses (Air), except that we do not cover rust, oxidation, scratching, denting, chipping or bending unless the conveyance is involved in an accident; and
• for inland transits, the risks of Cover (C) in the Inland Transit Cover clause, together with theft or non-delivery of an entire package.

Schedule variables: none.

E03 Own Vehicle Carriage

For goods carried in your own vehicle:

• we do not cover theft of goods from a vehicle left unattended, unless the vehicle is locked with all windows and doors closed and the goods are in a closed, locked compartment or under a locked cover, or the vehicle is in a locked building or a locked and fenced compound;
• we do not cover theft from a vehicle left unattended overnight in the open, unless the schedule for this endorsement says otherwise;
• goods must be secured against movement during the transit; and
• the driver must hold a current licence for the vehicle.

These requirements are not warranties. If you do not meet one, we may refuse only the part of the claim that the failure caused or contributed to, as the Insurance Contracts Act 1984 (Cth) condition sets out.

The excess shown in the schedule for this endorsement applies to each claim for goods carried in your own vehicle.

Schedule variables: special excess (default the excess shown in the schedule); whether overnight parking in the open is allowed.

E04 Dangerous Goods

The goods include dangerous goods of the classes described in the schedule for this endorsement.

The cover for those goods applies on the condition that they are classified, packed, marked, labelled, documented and carried as the Australian Code for the Transport of Dangerous Goods by Road and Rail requires for inland transits, the International Maritime Dangerous Goods Code requires for transits by sea, and the IATA Dangerous Goods Regulations require for transits by air.

This condition is not a warranty. If you do not meet it, we may refuse only the part of the claim that the failure caused or contributed to, as the Insurance Contracts Act 1984 (Cth) condition sets out.

We do not cover liability of any kind, including for pollution or contamination, or the cost of clean-up, under this endorsement.

Schedule variables: dangerous goods classes; special excess.

E05 Theft-Attractive Goods Excess

The excess shown in the schedule for this endorsement replaces the excess shown in the schedule for each claim for theft, pilferage or non-delivery of theft-attractive goods.

Schedule variables: special excess (default $2,500 or 10% of the claim, whichever is greater).

E06 Replacement Clause for Machinery

The Institute Replacement Clause CL372 1/12/08 applies to machinery, equipment and other goods made up of parts. Where a part is lost or damaged, we pay the cost of replacing or repairing the part, including forwarding and refitting, but not more than the insured value of the whole item.

Schedule variables: none.

E07 Import Duty and Taxes

For import transits, the value of the goods in the Basis of Valuation provision includes the import duty, GST and other taxes payable on their entry into Australia, where you pay them and cannot recover them after the loss.

We pay that part of the value only where the duty or tax has been paid or is payable and is not refunded or remitted because of the loss.

Schedule variables: none.

E08 Seller's Contingent Interest

For export transits of goods you sell on terms under which the buyer arranges the insurance, such as FOB, FCA or CFR under Incoterms 2020, we cover your interest in the goods if they are lost or damaged by a risk this policy insures and the buyer does not pay for them, or rejects them, because of the loss or damage.

We pay only to the extent you cannot recover from the buyer or the buyer's insurer. You must not tell the buyer or anyone else that this cover exists, and you must take reasonable steps to recover from the buyer, with our help if you ask for it.

Schedule variables: sub-limit any one conveyance.

E09 Storage in Transit

For inland transits, storage of the goods in the course of transit at the places shown in the schedule for this endorsement is insured for up to the number of days shown, despite the 7 day limit in the When Transit Starts and Ends clause.

The limit any one conveyance applies to each place of storage. The cover applies on the condition that each place of storage is a closed building, locked when unattended. This condition is not a warranty. If you do not meet it, we may refuse only the part of the claim that the failure caused or contributed to, as the Insurance Contracts Act 1984 (Cth) condition sets out.

Schedule variables: places of storage; maximum number of days (default 30); limit at each place.

E10 High-Risk Areas

The transits to or from the countries or areas shown in the schedule for this endorsement are insured on the terms and at the additional premium shown for them. Any other transit to or from an area listed as a war risk area by the Joint War Committee of the Lloyd's Market Association, or to or from a country subject to sanctions under the laws named in the Sanctions condition, is insured only if you tell us before it starts and we agree.

This endorsement does not change the Sanctions condition.

Schedule variables: countries or areas; terms and additional premium for each.

Licence and Trademark Notice

This wording's text is licensed under Creative Commons Attribution 4.0 International (CC BY 4.0). The licence applies to the wording text only. It does not extend to, and no licence is granted in, the Institute Clauses named in this wording, which are published by the Lloyd's Market Association and the International Underwriting Association of London and remain subject to their terms. Nor does it extend to the "Meridian" name, the Cuttleflow Systems name, logo, bearing mark, or any other trademark, trade dress, or brand asset, all of which remain the property of their respective owners and may not be used without separate permission.

An adopting insurer's own schedule, proposal, endorsements and other materials prepared for use with this wording are not required to be released under CC BY 4.0 merely because they are used together with this wording; CC BY 4.0 requires only that you attribute the wording text you use.

This wording is provided for general use and adaptation. Adopting insurers and their advisers are responsible for obtaining their own legal, regulatory, and reinsurance advice before use, including on the use of the Institute Clauses and on whether a Product Disclosure Statement and Target Market Determination are required. Use of this wording requires the approval of the relevant capacity provider. Any Wording Partner review and sign-off letter issued in respect of this wording runs to Cuttleflow Pty Ltd t/a Cuttleflow Systems only and does not constitute legal advice to any adopting insurer or insured.

Designed for the Australian market. Assumes application of the Marine Insurance Act 1909 (Cth) to Sea Transits, including coastal carriage, and of the Insurance Contracts Act 1984 (Cth) to Non-Sea Transits, that is carriage by air, post, courier, road and rail. Users are responsible for their own legal review, regulatory compliance, and reinsurance alignment.