United Nations Marine Cargo Insurance, Intermediate Cover
United Nations (UN)
copy @ Lex Mercatoria
10.1 Agreed and insurable value
10.1.1 Where an agreed value is stated in this insurance this agreed value shall be conclusive between the assured and the insurer as to the value of the insured cargo in the absence of fraud.
10.1.2 Where there is no agreed value, the insurable value of the cargo is
the commercial invoice value or, if there is no such invoice, the market value of the cargo at the time and place of commencement of the cover, plus
10.1.2.1 if not already included, freight and other expenses incidental to the transport, customs duties, insurance costs, and
10.1.2.2 an expected profit of . . . %.
the market value at the place of destination at the time of the arrival of the cargo or, if the cargo does not arrive, at the time it should have arrived at the place of destination.
10.1.3 Where there is no agreed value and the term "agreed value" is used in other provisions of this insurance, this term shall be deemed also to cover the insurable value, as defined in 10.1.2 above.
10.2 Sum insured The insurer's total liability under Part A and clauses 4 and 5 of Part C shall be limited to the sum insured. A separate limit shall apply to claims under clause 6 of Part C as provided therein.
10.3 Under- and over-insurance
10.3.1 Where the sum insured is less than the agreed value, the insurer is only liable to pay that proportion of any loss covered by this insurance that the sum insured bears to the agreed value.
10.3.2 Where the sum insured is higher than the agreed value, the assured may not recover more than the agreed value.
Where the assured has a claim under Part C, clauses 5 and/or 6, the indemnity payable under this insurance shall not be reduced by reason of the agreed value being less than the actual or contributory value of the insured cargo.
10.4.1 Where the assured has a claim under Part C, clause 5, of this insurance other than for general average sacrifice of the cargo, and the agreed value is less than the full contributory value of the cargo, the insurer shall only pay such proportion of general average, salvage and salvage charges as the agreed value bears to the full contributory value.
10.4.2 Where the cargo has suffered damage covered by this insurance and such damage constitutes a deduction from the contributory value, the same amount must be deducted from the agreed value when determining whether the agreed value is less than the contributory value.
10.5 Co-insurance Where two or more insurers are liable under this insurance,
10.5.1 each insurer is liable only for his proportion of the claim, which is the proportion that his subscription bears to the sum insured, and shall on no account be held jointly liable with his co-insurers.
each insurer agrees to be subject to the jurisdiction of the courts applicable to the leading insurer for all disputes under this insurance. The leading insurer is authorized by his co-insurers to accept and conduct legal proceedings on their behalf.
11 Total losses
11.1 A claim for loss by a peril insured against may be for a total loss, as herein defined, or otherwise for a partial loss.
11.2 Actual total loss occurs where the insured cargo is destroyed or so damaged as to cease to be a thing of the kind insured or where the assured is irretrievably deprived of the cargo.
11.3 Presumed total loss occurs where the carrying vessel is missing with the insured cargo and no news of the vessel or the cargo has been received within a reasonable time but not to exceed . . . months.
11.4 Constructive total loss occurs:
11.4.1 where the assured has been deprived of the free use and disposal of the insured cargo, and
188.8.131.52 it is unlikely that he will be able to recover it within a reasonable time but not to exceed . . . months, or
184.108.40.206 he could not recover it without incurring an expenditure which would exceed its value on recovery;
11.4.2 where the insured cargo has been damaged and it cannot be repaired or reconditioned and forwarded to its destination without:
220.127.116.11 becoming an actual total loss before arrival, or
18.104.22.168 incurring an expenditure which would exceed its value on arrival.
11.5 Where there is a valid claim for a total loss recoverable under this insurance, the amount payable by the insurer is the sum insured in respect of the cargo.
12.1 Where the assured elects to claim for a constructive total loss rather than for a partial loss, or where there is a presumed total loss, the assured shall with reasonable diligence notify the insurer that he wishes to abandon what remains of the cargo to the insurer.
12.2 Unless otherwise directed by applicable law, no notice of abandonment need be given if, at the time when the assured receives reliable information of the loss, there would be no possibility of benefit to the insurer if notice were given to him or where the insurer has expressly waived the need for such notice.
12.3 Notice of abandonment may be expressed in any terms which indicate the intention of the assured unconditionally to abandon his interest in the cargo to the insurer. The insurer shall advise the assured whether he accepts or rejects the notice of abandonment within a reasonable time from the date on which the notice is tendered.
12.4 Where notice of abandonment is given as provided herein, the rights of the assured shall not be prejudiced by the refusal of the insurer to accept the abandonment.
12.5 Where notice of abandonment is accepted, the abandonment is irrevocable and the acceptance of the notice of abandonment conclusively admits liability for the loss and the sufficiency of the notice. Upon acceptance of abandonment, the insurer may, if he so wishes, take over whatever may remain of the cargo, with all the rights and obligations attached thereto.
13 Partial losses
13.1 Total loss of part Where part of the cargo is totally lost, the assured is entitled to be indemnified for such proportion of the agreed value, if a value has been agreed, or of the insurable value, if no value has been agreed, as the insurable value of the part lost bears to the insurable value of the whole.
13.2.1 Where the whole or any part of the cargo has been delivered damaged at its destination, the assured is entitled to be indemnified for such proportion of the agreed value, if a value has been agreed, or of the insurable value, if no value has been agreed, as the difference between the gross sound and damaged values at the place of destination bears to the gross sound value.
13.2.2 If the assured chooses to recondition or to repair any part of the cargo which has been delivered damaged at its destination, he may, alternatively, claim the reasonable cost of such reconditioning or repair at the time of arrival at its destination.