Deterioration of Stock in Cold Storage Insurance
Policy
Policy No
Whereas
the Insured named in the Schedule hereto has made to the
(hereinafter
called “the Insurers”) a written proposal by completing a questionnaire which
together with any other statements made in writing by the Insured for the
purpose of this Policy is deemed to be incorporated herein.
Now
this Policy of Insurance witnesses that subject to the Insured having paid to
the Insurers the premium mentioned in the Schedule and subject to the terms,
exclusions, provisions and conditions contained herein or endorsed hereon.
The
Insurers hereby agree with the Insured that if at any time during the period of
insurance stated in the Schedule or during any subsequent period for which the
Insured pays and the Insurers may accept the premium for the renewal of this
Policy, the goods specified in the Schedule suffer loss or damage caused by
deterioration due to any unforeseen and sudden physical loss of or damage to
the
machinery specified in the list of machinery attached to the questionnaire and
proposal of this Policy and indemnifiable under the machinery breakdown policy
in
force, the Insurers will indemnify the Insured in respect of such deterioration
in the
manner and to the extent hereinafter provided up to an amount not exceeding in
any one year of insurance in respect of each of the items specified in the
Schedule
the sum set opposite thereto and not exceeding in all the total sum expressed
in
the Schedule as insured hereby, unless the sum insured has been reinstated.
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The
Insurers shall not be liable for
1. the deductible stated
in the Schedule to be borne by the Insured in any one occurrence;
2.
any loss of the goods stored in the refrigerating chambers arising within the no-
claims period indicated by the Insured in the Schedule due to any deviation
from
the prescribed refrigerating temperature, unless such deterioration is caused
by
contamination as a result of escaping refrigerant or by accidental freezing of
the
goods or unless fresh goods which have not yet reached the prescribed
refrigerating temperature are hereby affected, the no-claims period being
defined
as the time period immediately following cessation of cooling during which,
with
storage room left sealed, no deterioration would take place;
3. any loss with regard to
the goods stored arising as a result of shrinkage,
inherent defects or diseases, natural deterioration or natural putrefaction;
4. any loss arising from
improper storage, damage to packing material, insufficient circulation of air,
non-uniformity of temperature;
5. any loss caused by
temporary repair of the refrigeration machinery specified in the list of machinery
which is carried out without the Insurers’ consent;
6. penalties for delay,
consequential loss or damage or liability of any nature whatsoever;
7. loss or damage directly
or indirectly caused by, or arising out of, or aggravated
by
a)
war, invasion, act of foreign enemy, hostilities (whether war be declared or
not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike,
lockout, civil
commotion, military or usurped power, a group of malicious persons acting on
behalf of or in connection with any political organization, conspiracy,
confiscation, commandeering, requisition or destruction or damage by order of
any government de jure or de facto or by any public authority;
b)
nuclear reaction, nuclear radiation or radioactive contamination;
c)
the wilful act or wilful negligence of the Insured or his representatives;
d)
fire, direct lightning, chemical explosion, extinguishing of a fire or
subsequent
demolition, aircraft or other aerial devices or articles dropped therefrom,
thefts or
attempts thereat, collapse of buildings, flood, inundation, earthquake,
subsidence,
landslide, avalanche, hurricane, cyclone, volcanic eruption or other natural
catastrophes.
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In
any action, suit or other proceeding where the Insurers allege that by reason
of the provisions of Exclusion a) above any loss, destruction or damage is not
covered by this Policy, the burden of proving that such loss, destruction or
damage is covered shall be upon the Insured.
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1. The due observance and
fulfilment of the terms of this Policy, insofar as they
relate to anything to be done or complied with by the Insured, and the truth of
the
statements and answers in the questionnaire, proposal and monthly declarations
made by the Insured shall be a condition precedent to any liability of the
Insurers.
2.
The Schedule and the questionnaire and proposal shall be deemed to be
incorporated
in and form part of this Policy and the expression “this Policy”,
wherever
used in this contract, shall be read as including the Schedule and the
questionnaire and proposal. Any word or expression to which a specific meaning
has been attached in any part of this Policy, of the Schedule or of the
questionnaire and proposal shall bear such meaning wherever it may appear.
3.
The Insured shall at his own expense take all reasonable precautions and
comply with all reasonable recommendations of the Insurers to prevent loss or
damage and comply with statutory requirements and manufacturers’
recommendations.
4.
a) Representatives of the Insurers shall at any reasonable time have the right
to
inspect and examine the risk and the Insured shall provide the representatives
of
the Insurers with all details and information necessary for the assessment of
the
risk.
b)
The Insured shall immediately notify the Insurers by telegram and in writing of
any material change in the risk and cause at his own expense such additional
precautions to be taken as circumstances may require to ensure safe operation
of
the insured items, and the scope of cover and/or premium shall, if necessary,
be
adjusted accordingly. No material alteration shall be made or admitted by the
Insured whereby the risk is increased, unless the continuance of the cover
provided under this Policy is confirmed in writing by the Insurers.
5. In the event of any
occurrence which might give rise to a claim under this Policy, the Insured
shall
a) immediately notify the
Insurers by telephone or telegram as well as in writing, giving an indication
as to the nature and extent of the loss or damage;
b)
take all steps within his power to minimize the extent of the loss or damage;
c) preserve the parts
affected and make them available for inspection by a representative or surveyor
of the Insurers;
d) furnish all such
information and documentary evidence as the Insurers may
require;
e)
inform the police authorities in the case of loss or damage due to burglary.
The
Insurers shall on no account be liable for loss or damage of which no notice
has been received by the Insurers within 14 days of its occurrence. Upon
notification being given to the Insurers under this condition, the Insured may
carry
out repairs of or make good any minor damage; in all other cases a
representative
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of
the Insurers shall have the opportunity of inspecting the loss or damage before
any repairs or alterations are effected. If a representative of the Insurers
does not
carry out the inspection within a period of time which could be considered
adequate under the circumstances, the Insured shall be entitled to proceed with
the repairs or replacement.
6.
The Insured shall at the expense of the Insurers do and concur in doing and
permit
to be done all such acts and things as may be necessary or required by the
Insurers in the interest of any rights or remedies, or of obtaining relief or
indemnity
from parties (other than those insured under this Policy) to which the Insurers
are
or would become entitled or which is or would be subrogated to them upon their
paying for or making good any loss or damage under this Policy, whether such
acts
and things are or become necessary or required before or after the Insured’s
indemnification by the Insurers.
7.
If any difference arises as to the amount to be paid under this Policy
(liability
being otherwise admitted), such difference shall be referred to the decision of
an
arbitrator to be appointed in writing by the parties in difference or, if they
cannot
agree upon a single arbitrator, to the decision of two arbitrators, one to be
appointed in writing by each of the parties, within one calendar month after
having
been required in writing so to do by either of the parties, or, in case the
arbitrators
do not agree, of an umpire to be
appointed in writing by the arbitrators before the
latter enter upon the reference. The umpire shall sit with the arbitrators and
preside
at their meetings. The making of an award shall be a condition precedent to any
right of action against the Insurers.
8.
a) If the proposal or declaration of the Insured is untrue in any material
respect, or if any claim made is fraudulent or substantially exaggerated, or if
any false
declaration or statement is made in support thereof, then this Policy shall be
void and the Insurers shall not be liable to make any payment hereunder.
b)
In the event of the Insurers disclaiming liability in respect of any claim and
if an action or suit is not commenced within three months after such disclaimer
or (in the case of arbitration taking place in pursuance of Condition 7 of this
Policy) within three months after the arbitrators or umpire have made their
award, all benefit
under this Policy in respect of such claim shall be forfeited.
9.
If at the time any claim arises under this Policy there is any other insurance
covering the same loss or damage, the Insurers shall not be liable to pay or
contribute more than their rateable proportion of any claim for such loss or
damage.
10.
This Policy may be terminated at the request of the Insured at any time, in
which
case the Insurers will retain the customary short-period rate for the time this
Policy has been in force. This Policy may equally be terminated at the option
of the
Insurers by seven days’ notice to that effect being given to the Insured, in
which
case the Insurers shall be liable to repay on demand a rateable proportion of
the
premium for the unexpired term from the date of cancellation less any
reasonable
inspection charges the Insurers may have incurred and less any long-term
discount
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on
premiums granted.
11.
Under an insurance for a third party’s account the beneficiary shall be
entitled
to exercise, in his own name, the rights of the Insured. Without obtaining the
Insured’s approval, the beneficiary shall further have the right to receive any
indemnity paid under this Policy and to transfer the Insured’s rights even if
the
beneficiary is not in possession of this Policy. Upon payment of indemnity the
Insurers may require evidence of the beneficiary having given his consent to
the
insurance and of the Insured having given his consent to the receipt of an
indemnity by the beneficiary.
12.
The indemnity shall be payable one month after determination by the Insurers
of the full amount due. Notwithstanding the above, the Insured may, one month
after the Insurers have been duly notified of the loss and have acknowledged
their
liability, claim as an instalment the minimum amount payable under the
prevailing
circumstances. The running of the periods shall be suspended for the time
during
which the indemnity is unascertainable or not payable due to reasons within the
Insured’s control.
The
Insurers shall be entitled to withhold indemnification
a) if there are doubts
regarding the Insured’s right to receive the indemnity, pending receipt by the
Insurers of the necessary proof;
b) if in connection with
the claim an examination by the police or an inquiry under criminal law has
been initiated against the Insured, pending completion of such examination or
inquiry.
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This
Policy shall only apply if
1.
the refrigeration machinery specified in the list of machinery attached to the
questionnaire and proposal
of this Policy is insured under a machinery breakdown policy in force;
2. the insured
refrigeration machinery specified in the aforesaid list of machinery is under
constant supervision by qualified personnel or is connected to an automatic
alarm system in a constantly attended location;
3.
the stock is not stored in “controlled atmosphere” chambers;
4. at the time of the loss
or damage the goods are stored in the refrigerating
chambers;
5.
the Insured maintains on a daily basis a stockbook in which the type, quantity
and value of the goods
stored and the beginning and the end of the storage period are entered for each
refrigerating chamber separately;
6.
during the entire period of storage the Insured records in a log-book the
condition
of the insured goods and at least three temperature readings per day
from each refrigerating chamber, the accuracy of the temperature readings being
checked by means of a calibrated, independent reference thermometer at least
every 14 days.
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Memo 1 - It
shall be a requirement of this Policy that the sum insured is equal to the
Sum insured estimated
maximum selling price obtainable for the stored goods during the period
of
this Policy, such maximum selling price being indicated in the Schedule
submitted
by the insured prior to the commencement of insurance. The Insured shall be
obliged to furnish the Insurers not later than 10 days after the close of each
month either with copies of the aforesaid stockbook or with a duly completed
declaration showing the average quantity and value per day of the goods stored
during the preceding month (monthly declaration).
The monthly declaration
shall be based on the selling price obtainable for the
goods.
Stockbook copies and
monthly declarations shall be regarded as forming an integral part of this
Policy.
If
after the occurrence of a loss it is found that the last monthly declaration
previous to the loss is less than the amount that ought to have been declared,
then the
amount which would have been recoverable by the Insured shall be reduced in
such proportion as the amount of the said last monthly declaration bears to the
amount that ought to have been declared.
The
sum insured shall be reduced by any indemnity paid under this Policy for the
remaining policy period unless it has been reinstated by payment of an
additional
premium on a pro-rata basis. This additional premium shall not be taken into
account in the final adjustment of premium as provided for in Memo 2.
The first premium shall be
due on receipt of this Policy, and all renewal premiums
at the commencement of each new period of insurance. Taxes, fees and any other
Memo 2 - Premium charges
shown in this Policy or in the premium bill shall be paid with the premium.
The
premium payable at the commencement of any one year of insurance shall be
a deposit premium based on 75% of the sum insured as specified in the Schedule
and shall be subject to adjustment at the end of each year of insurance in
accordance with the stockbook copies or the monthly declarations submitted to
the
Insurers.
Should
it be found on the basis of such information that at the end of any year of
insurance the deposit premium paid was too high, premium adjustment shall be
made subject to the total premium payable by the Insured being not less than
50%
of the full premium based on the sum insured stated in the Schedule. Failure on
the part of the Insured to submit stockbook copies or monthly declarations
shall
entitle the Insurers to apply the maximum sum insured as fixed in the Schedule
for
premium calculation. Any difference in premium so determined, whether due to or
by the insured, shall be settled within one month of the dispatch of the
statement
showing the premium adjustment.
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Memo 3 - Basis of All
claims shall be settled on the basis of the value stated in the monthly
indemnity declaration
immediately prior to the occurrence of the loss or the selling price
which would have been
obtainable, whichever is the lower. When determining the indemnity the Insurers
shall take into consideration all circumstances which may influence the amount
of indemnity, such as proceeds from a sale of the goods as well as storage
costs saved due to the termination of the storage.
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