INSTITUTE ADDITIONAL EXPENSES CLAUSES (CARGO-WAR RISKS) 1/7/85
This insurance is only to cover additional expenses incurred in consequence of War Risks, and only to the extent and subject to the conditions set forth in the following clauses:-
1 In the event of interruption or frustration of the voyage or adventure by arrests, restraints, detainment or acts of Kings, Princes and Peoples in prosecution of hostilities or by blockades or other warlike operations, whether there be a declaration of war or not, and whether by a belligerent or otherwise, or by reason of the exercise by the carrier of any liberty granted by any “War Risks” clause in the contract of affreightment, and the goods being discharged at a port other than the port of destination specified in this insurance, or where a country or district is specified in this insurance as the destination of the voyage, being discharged outside the limits of such country or district , the Underwriters shall pay (subject to the limit stated below) their proportion of additional expenses ( including additional marine and war risks premiums and duty, if any) reasonably incurred by the Assured , in consequence of such interruption or frustration and discharge, for landing and /or warehousing charges and/or for transshipment to original destination or for returning the goods to the point of origin of the shipment or for transshipping to a substituted destination.
2 The additional expenses for returning the good to the point of origin of the shipment or for transshipping to a substituted destination referred to in Clause 1 shall be considered reasonably incurred only if
2.1 the approval thereto of the underwriters hereon has been first obtained, or
2.2 the sum for which the goods could have been sold there at the time the decision to transport the good was made, less all necessary charges incurred in transporting the goods, including duty, if any, exceeds the sum which could have been realized by a sale at the place where the voyage or adventure was interrupted or frustrated, less duty, if any, which would have become payable in event of sale there, and is not less than the sum which could have been realized at some other place to which the Assured might reasonably have sent the goods, less all necessary charges which would have been incurred in transporting the goods, including duty, if any.
3. Subject to the provisions of Clause 2, if the goods are returned to the point of origin of the shipment or transshipped to a substituted destination, and the sum realized or which could be realized there, by the sale of the goods, exceeds the sum insured hereunder, the Underwriter’s liability hereunder for additional expenses in respect of transport and duty shall be limited to the amount by which the said additional expenses incurred exceed the difference between the sum realized or which could be realized by the sale of the goods and the sum insured hereunder.
4. This insurance does not cover any expenses
4.1 incurred as a result of physical damage to vessel or cargo,
4.1.1 which may be recoverable under Marine or War Risks insurances on the goods, or
4.1.2 which may not be recoverable under such insurances by a reason of insufficiency of the sum insured thereunder,
4.2 incurred subsequent to and in consequence of prohibition by the Government of the United Kingdom or of any of its Allies whereby the Assured is prevented from removing the goods from the port or place or country of discharge.
5. Warranted that the goods are covered by insurance against War Risks and against Marine Risks to an extent not less than the cover provided by the Institute Cargo Clauses (C)
6 .Risk to commence at times of sailing and it is warranted that when the vessel sails the contract of carriage provides for discharge of the goods at the destination named in this insurance.
7 Where the vessel has the optio
