PICC PROPERTY AND CASUALTY COMPANY LIMITED
OCEAN MARINE CARGO CLAUSES(1/1/1981)
RECTIFIED AND ISSUED BY THE PEOPLE’S BANK OF CHINA
(PBOC)DATED 1/1/1995
I . Scope of Cover:
This insurance is classified into the following three Conditions- Free From Particular Average (F. P. A. )， With Average (W. A. ) and All Risks.
Where the goods insured hereunder sustain loss or damage ， the Company shall undertake to indemnify therefor according to the insured Condition
specified in the Policy and the Provisions of these Clauses :
1. Free From Particular Average (F. P. A. )This insurance covers :
1) Total or Constructive Total Loss of the whole consignment hereby insuredcaused in the course of transit by natural calamities: heavy weather， lightning，
tsunami， earthquake and flood. In case a constructive total loss is claimed for，the Insured shall abandon to the Company the damaged goods and all his rights
and title pertaining thereto. The goods on each lighter to or from the seagoingvessel shall be deemed a separate risk. Constructive Total Loss refers to the
loss where an actual total loss appears to be unavoidable or the cost to be incurredin recovering or reconditioning the goods together with the forwarding cost to
the destination named in the Policy would exceed their value on arrival.
2) Total or Partial Loss caused by accidents the carrying conveyance being grounded，stranded， sunk or in collision with floating ice or other objects as fire or explosion .
3) Partial loss of the insured goods attributable to heavy weather， lightning and/ortsunami， where the conveyance has been grounded， stranded， sunk or burnt.
irrespective of whether the event or events took place or after such accidents.
4) Partial of total loss consequent on falling of entire package or packages into sea during loading， transshipment or discharge.
5)Reasonable cost incurred by the insured on salvaging the goods or averting or
minimizing a loss recoverable under the Policy， provided that such cost shall
not exceed the sum insured of the consignment so saved.
6) Losses attributable to discharge of the insured goods at a pert of distress following
a sea peril as well as special charges arising from loading， warehousing and
forwarding of the goods at an intermediate port of call or refuge.
7) Sacrifice in and Contribution to General Average and Salvage Charges.
8) Such proportion of losses sustained by the shipowners as is to be reimbursed
by the Cargo Owner under the Contract of Affreightment Both to Blame Collision clause.
2. With Average (W. A. )
Aside from the risks covered under F. P. A. condition as above， this insurance
also covers partial losses of the insured goods caused by heavy weather ，
lightning， tsunami ， earthquake and/or flood.
3. All Risks
Aside from the risks covered under the F. P. A. and W. A. conditions as above，
this insurance also cover all risks of loss of or damage to the insured goods
whether partial or total， arising from external causes in the cause of transit.
II. Exclusions:
This insurance does not cover : .
1. Loss or damage caused by the intentional act or fault of the insured.
2. Loss or damage falling under the liability of the consignor.
3. Loss or damage arising from the inferior quality or shortage of the insured
goods prior to the attachment of this insurance.
4. Loss or damage arising from normal loss， inherent vice or nature of the
insured goods ， loss of market and/or delay in transit and any expenses
arising there from..
5. Risks and liabilities covered and excluded by the ocean marine (cargo)
war risks clauses and strike ， riot and civil commotion clauses of this Company.
III . Commencement to Termination of cover:
1. Warehouse to warehouses Clause :
This insurance attaches from the time the goods hereby insured leave the
ware-house or place of storage named in the Policy for the commencement of the
transit and continues in force in the ordinary course of transit including sea ，
land and inland waterway transits and transit in lighter until the insured goods
are delivered to the consignee s final warehouse or place of storage at the
destination named in the Policy or to any other place used by the insured
for allocation or distribution of the goods or for stories other than in the
ordinary course of transit. This insurance shall.， however ， be limited to
sixty (60) days after completion of discharge of the insured goods from the
seagoing vessel at the final port of discharge before they reach the above
mentioned warehouse or place of stories. If prior to the expire of the above
mentioned sixty ( 60) days ， the insured goods are to be forwarded to a
destination other than that named in the Policy ， this insurance shall terminate
at the commencement of such transit.
2. If， owing to delay ， deviation ， forced discharge ， reshipment or
transshipment beyond the control of the insured or any change or termination
of the voyage arising from the exercise of a liberty granted to the shipowners
under the contract of affreightment， the insured goods arrive at a port or
place other than that named in the Policy， Subject to immediate notice
being given to the Company by the insured and an additional premium
being paid， if repaired， this insurance shall remain in force and shall
terminate as hereunder :
1) If the insured goods are sold at port or place not named in the Policy ，
this insurance shall terminate on delivery of the goods sold， but in no event
shall this insurance extend beyond sixty (60) days after completion of
discharge of the insured goods from the carrying vessel at such port or place.
2) If the insured goods are to be forwarded to the final destination named
in the Policy or any other destination， this insurance shall terminate in
accordance with Section 1 above.
IV . Duty of the insured:
It is the duty of the insured to attend to all matters as specified hereunder ，
failing which the company reserves the right to reject his claim for any loss
if and when such failure prejudice the rights of the Company :
1. The insured shall take delivery of the insured goods in good time upon
their arrival at the port of destination named in the Policy. In the event of
any damage to the goods， the insured shall immediately apply for survey
to the Survey and/or settling assent stipulated in the Policy. If the insured
goods are found short in entire package or packages or to show apparent
traces of damage ， the insured shall obtain from the Carrier， bailed or
other relevant authorities (Customs and Port Authorities etc. ) certificate
of loss or damage and/or sbortlanded memo. Should the carrier， bailed
or the other relevant authorities be responsible for such shortage， the
insured shall lodge a claim with them in writing and ， if necessary ，
obtain their confirmation of an extension of them the time limit of validity
of such claim.
2. The insured shall ， and the Company also， take reasonable measures
immediately in salvaging the goods or preventing or minimizing a loss or
damage thereto. The measures so taken by the insured or by the Company
shall not be considered respectively， as a waiver of abandonment
hereunder ， or as an acceptance thereof.
3. In case of a change of voyage or any omission or error in the description
of the interest ， the name of the vessel or voyage， this insurance shall
remain in force only upon prompt notice to this Company when the insured
becomes aware of the same and payment of an additional premium if required.
4. The following documents should accompany any claim hereunder made
against this Company :
Original Policy， Bill of Lading. Invoice， Packing List， Tally Sheet，
Weight Memo， Certificate of Loss or Damage and/or Shorthand Memo，
Survey Report， statement of Claim.
If any third party is involved ， documents relative to pursuing of recovery
from such party should also be included.