1. MAIN INSURANCE CONDITIONS

• Free of particular average (F.P.A)

This is the narrowest form of coverage and it covers against any total loss. When partial loss is specifically covered in the policy (extended coverage titled F.P.A. unless) it is recoverable from the insurer only if the loss is the result of one of the following major events: sinking, capsizing, stranding or grounding of the vessel, collision or contact of the vessel with fixed movable or floating objects, entry of water, falling of the insured package during loading, transhipment or unloading, derailment, overturning or breakage of the land conveyance, flooding, tidal waves, volcanic eruption, earthquake, lightning, cyclone, fire or explosion.

General Average and salvage charges.

• "All Risks"  

It covers the above risks plus the damage and loss suffered by the cargo during the transport : storm, shifting of cargo, water damage, breakage, hook damage, robbery, dropping overboard ... Theft, pilferage and total losses are covered subject to the production of documents proving the non-delivery or the breaking and entering.

• Cargo loaded on deck 

Cargo loaded on deck is generally covered under "F.P.A.conditions except for jettison throw away and washing overboard" terms with an extra premium and subject to previous declaration to the underwriters unless loading on containerships in which case the cargo is covered under "All risks" terms.

• Are not covered, except special agreements

The damage and loss resulting from inherent vice of the cargo, effect of atmospheric temperature, ordinary leakage or ordinary loss in weight or volume, unsuitability of packing, delay in forwarding or arrival of the insured cargo, losses of exchange rate or market, wilful misconduct or gross negligence of the assured or any other beneficiary of the insurance, war confiscation, seizure, contamination due to atomic or nuclear fission or fusion, piracy of a political nature or related to war, strikes, riots and civils disorder.

• Insured value

The Insured Value is based on the value of the cargo including costs, charges and profit (maximum 20%).

• Perishable goods under controlled temperature

Frozen products can be covered for variations of temperatures during transport, according to French clause 47 bis (frozen food clause). It is possible to extend this cover to positive refrigerated temperature.

• Deductible

Loss or damage due to an "F.P.A. condition" unless other cases, is always settled irrespective of percentage. Under other events, they are settled with or without deductible according to particular agreements between insured and underwriters.

2.   WAR RISKS

War risks and strikes, riots and civil commotionare perils that are generally excluded on the Cargo insurance forms. For an extra premium charge the insured often may be able to obtain War Risk insurance (Waterborne coverage) for the time that the cargo is actually loaded on board the ocean-going vessel itself until it is discharged at the port of destination.

The standard rate is 0.04%.

War on land may be also covered including Strikes, riots and civil commotion by endorsement which covers concurrently with the Warehouse to Warehouse coverage of the Open Cargo Policy. Often the War Risks and S.R. & C.C. coverage are included in the same policy.

French assured such risks are reinsured with the Caisse Centrale de Réassurance.