1 We insure you for the following in respect of your insured carrying equipment:

1.1 Physical loss of and damage arising from an accident or from war/strikes riots & terrorist or piracy risks while the equipment is off lease

1.2 Your liability for general average and salvage contributions 

2 We do not insure you under this clause for:

2.1 physical loss or damage arising from:

2.1.1 defects in design/manufacture

2.1.2 wear and tear

2.1.3 mechanical/electrical breakdown or malfunction

2.1.4 equipment found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss

2.2 loss/damage to lights, winding handles, tyres/wheels of a chassis/trailer unless due to loss of the chassis/trailer or to an accident also damaging another part of the chassis/trailer

2.3 risks after you cease to have an interest in the equipment

2.4 loss/damage - except actual total loss - to equipment valued as at 5 below at less than:

2.4.1 USD 5000: reefer/tank container; reefer/tank trailer; rail wagon

2.4.2 USD 3000: trailer (except as specified at 2.4.1)

2.4.3 USD 1000: all other carrying equipment

Qualifications

3 Declaration

3.1 You will show in your declaration the number of items - and aggregate insured value on the adjustment date - of each type of carrying equipment

3.2 You will not reduce the insured value of any item during your account year

4 War/SR&T(Strikes Riots & Terrorist) & Piracy Risks

4.1 CTL (Constructive Total Loss)
If you are deprived by seizure of possession of equipment for a continuous period of 12 months, we will regard it as a constructive total loss for the purposes of your insurance for war/SR&T or piracy risks at the date this period commenced - provided that the equipment

4.1.1 was insured for war/SR&T or piracy risks on that date and

4.1.2 had not already become a total loss as a result of an insured risk at some time during the period

4.2 We do not insure you for war risks arising from:

4.2.1 hostile detonation of a nuclear weapon

4.2.2 war (declared or not) between permanent members of the UN Security Council

4.2.3 capture or seizure by an authority of your country

4.2.4 seizure under any customs or quarantine regulation

4.2.5 ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause

4.3 The Managers may at any time decide that we will not insure you for war, SR&T or piracy risks either entirely or in respect of your equipment which is in any country, territory or area (whether of land or sea). The Managers will notify you by Circular as at G2:41 of this decision, which will take effect at 2400 GMT on the seventh day after notice is given

4.4 Our insurance for war risks in respect of equipment which is not on board an oversea ship or aircraft when the loss/damage occurs is subject to a limit of USD 50,000 each accident and in the aggregate each account year. For the avoidance of doubt, this limit does not apply to piracy or SR&T risks (unless arising from war) and cover is in any case subject to 4.3

4.5 Insurance for war, SR&T and piracy risks will automatically terminate on:

4.5.1 hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)

4.5.2 war as at 4.2.2

5 Amounts Recoverable

Amounts recoverable from us will not exceed:

5.1 Owned equipment:

5.1.1 Loss: insured value at time of loss

5.1.2 Damage: reasonable repair costs - not exceeding insured value

5.2 Leased equipment:

5.2.1 Loss: amount payable under lease - or insured value if no amount specified

5.2.2 Damage: reasonable repair costs - not exceeding amount payable under lease

6 Constructive Total Loss (CTL)

If the reasonable repair costs of damage sustained in one accident are estimated to exceed the applicable amount specified at 5 above, we will pay this amount as a CTL, less any salvage value

7 Interest in Ship/Aircraft

G1:5 does not apply to this clause

8 Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

1 We insure you as stated below

1.1 We insure you for your liability for the following, including resulting consequential loss:

1.1.1 physical loss of and damage to third party property

1.1.2 death, injury or illness of any third party

1.1.3 pollution

1.2 We insure you for your liability to indemnify a third party for its liability for the following, including resulting consequential loss 

1.2.1 physical loss of and damage to third party property

1.2.2 death, injury or illness of any third party except as at 1.2.3

1.2.3 death, injury or illness of your employee unless excluded at 2.1

1.2.4 pollution 

1.3 We insure an assured for liabilities directly to an employee of a joint assured and conversely a joint assured for liabilities directly to an employee of the assured or another joint assured

2 We do not insure you under this clause for liabilities:

2.1 for death, injury or illness of your employee which you incur as an employer or which would normally be insured under an Employers Liability insurance

2.2 arising from ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.3 arising from an accident on a public road in USA/Canada or Mexico involving a trailer or chassis

2.4 as owner/lessee of land which is not an insured location

2.5 arising from erection or dismantling of handling equipment - unless for inspection, maintenance or repair (or movement which is not excluded under 2.7)

2.6 arising from movement of handling equipment - other than within the same terminal, port or depot

2.7 excluded at G1:2

2.8 in respect of any risk which is insured under Z4

Qualifications

3 Limit of Liability

In the event that it is held in any court or tribunal that anyone, other than the assured or a named joint assured or co-assured, is entitled to be insured under this insurance, then the limit of liability for this insurance for such a person will not exceed the lesser of the minimum insurance requirements under the applicable law and the limit stated in your policy

4 Products Liability 

We will not deem your insured carrying equipment to be product for the purposes of the definition of products liability at Y1

1 We insure you for:

1.1 The following, imposed on you by an authority, as a result of breach of regulations listed at 1.3:

1.1.1 Fines and other penalties, including confiscation 

1.1.2 Duty and sales/excise tax and similar fiscal charges

1.1.3 Costs

1.2 Liability for financial loss incurred by a third party as a result of a liability specified at 1.1

1.3 The regulations referred to at 1.1 relate to:

1.3.1 import/export and carriage of cargo, conveyances or equipment

1.3.2 immigration

1.3.3 safety at work, including corporate manslaughter and corporate homicide

1.3.4 security/anti-terrorism

2 We do not insure you under this clause:

for liability/confiscation arising from:

2.1 breach of regulations relating to competition or regulation of companies or privacy and protection of personal data, including the General Data Protection Regulation (GDPR)

2.2 ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.3 your owned/leased carrying equipment which we do not insure for loss/damage

2.4 your making your customs bond/guarantee available to another person - unless this arises from:

2.4.1 assistance which an operator provides to you in your insured services
        or
2.4.2 other insured services which you provide

Qualifications

3 Intentional or Reckless Conduct

The Directors may in their discretion reduce or reject a claim if you or your employee has acted (or failed to act) intentionally or recklessly

4 Illegality

If insurance for any of the matters specified at 1 above is held to be illegal, this will apply only to the matters concerned and will not affect other insurance under this clause or elsewhere in your policy

5 Enforcement of Reimbursement

If it is held by a court or tribunal that you have no right to enforce reimbursement of a claim under this clause, we undertake to treat the claim as if your right is enforceable unless it would be illegal for us to do so

6 Limit

Limit: USD 100,000 each accident and in the aggregate each account year

1 We insure you for the following costs (subject to Z5:3):

1.1 Mitigation

Costs of minimising a claim

1.2 Investigation & Defence

Costs arising from investigating an accident which may give rise to a claim and protecting your interests in relation to it (including legal and survey fees) - including the costs of recovering a debt if payment is withheld solely because of a claim

1.3 Disposal

Costs additional to costs which you would have incurred in any event, of disposing of or removing insured carrying equipment or cargo after an accident to it, subject to G1:5

1.4 Quarantine & Disinfection (including fumigation)

Costs other than costs incurred in the normal course of business

2 We do not insure you under this clause for:

2.1 costs which are insured under Z4:1.1.3

2.2 costs of search, rescue and related transport following the winding up or bankruptcy of a lessee

Qualifications

3 Approval/Agreement

We only insure you if:

3.1 the Managers have agreed to the costs or

3.2 the Directors decide that the costs were properly incurred

4 Limits

Claims under 1.1 & 1.2 above are subject to the limit for the claim being investigated/defended, or mitigated, and are included in this claim for this purpose

5 Deductibles

Claims are subject to deductibles as below:

5.1      1.1:              as for the claim being mitigated

5.2      1.2-1.4:        nil

6 Interest in Ship/Aircraft

G1:5 does not apply to costs specified at 1.1 and 1.2 if the claim (or possible claim) is under Z1