1/1/09 INSTITUTE CARGO CLAUSES (AIR)

(excluding sendings by Post)

RISKS COVERED

Risks

1. This insurance covers all risks of loss of or damage to the subject-matter insured

except as excluded by the provisions of Clauses 3, 4 and 5 below.

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 Clauses 3, 4 and 5 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 subjectmatter 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