MARINE INSURANCE

PRODUCT DISCLOSURE SHEET

(Please read this Product Disclosure Sheet before you decide to take up the Marine Cargo Insurance. Be sure to also read the general terms and conditions.)

What is this product about ?

This policy covers loss or damage to your goods caused by peril insured whilst in transit from one place to another by sea or by air or by rail or land conveyance.

What are the covers / benefits provided ?

This policy covers cargo whilst in transit and including storage in the ordinary course of transit. They are subject to the terms of the Institute Cargo Clauses. The most commonly used clauses are:-

Institute Cargo Clauses (A) or Institute Cargo Clauses (Air)

• Covers all risks of loss of or damage to the cargo.

Institute Cargo Clauses (B)

• Covers loss of or damage caused by the following perils :-
  a. fire or explosion
  b. vessel or craft being stranded, grounded, sunk or capsized
  c. overturning or derailment of land conveyance
  d. collision or contact of vessel, craft or conveyance with any external object other than water
  e. discharge of cargo at a port of distress
  f. earthquake, volcanic eruption and lightning
  g. general average sacrifice
  h. jettison or washing overboard
  i. entry of sea, lake or river water into the vessel craft conveyance container or place of storage
  j. total loss of any package overboard or dropped whilst loading on to, or unloading from vessel or craft.

Institute Cargo Clauses (C)

• Covers the following named perils :-
  a. fire or explosion
  b. vessel or craft being stranded, grounded, sunk or capsized
  c. overturning or derailment of land conveyance
  d. collision or contact of vessel craft or conveyance with any external object other than water
  e. discharge of cargo at a port of distress
  f. general average sacrifice
  g. jettison

With the payment of additional premium, the cover of this policy may be extended to include the following coverage:-

Institute War Clauses (Cargo)/ (Air Cargo)

Cover loss or damage resulting from war perils whilst the cargo is at sea or in the air. The exclusions are the same as for the Cargo Clauses with the additional exclusion of frustration of the voyage (i.e. no claim is payable if cargo cannot be delivered or shipped because of a war).

Institute Strikes Clauses (Cargo)/ (Air Cargo)

Cover loss or damage caused by strikers, rioters, terrorists or person acting from a political motive. Exclusions are the same as for the War Clauses but there is an additional exclusion regarding the shortage or withholding of labour. The duration of cover is the same as the Cargo Clauses.

How much premium do I have to pay?

The premium you have to pay may vary depending on the type of cargo, method of packing, vessel used, method of shipment, voyage, coverage required, claim experience and our underwriting requirements. The premium rate is applied to the insured value.

What is the payment mode and how do I pay the premium?

You may pay your premium either by cash, or cheque.

What are some of the key terms and conditions that I should be aware of ?

• Duty of disclosure
• You must give all the facts which you know or ought to know.
• You must ensure that the proposal form is completed accurately as it forms the basis of the insurance contract.

• Sum Insured

You must ensure that the cargo is insured as per the Invoice Value plus 10% for import and export and Invoice Value only for domestic transit.

• You must inform insurer if the goods are shipped on deck and not in a container. Otherwise, it is understood that the goods are shipped under deck.

• Claims

You must notify us or the survey agents named in the policy in writing with full details as soon as possible.

You must submit your claim with all the supporting information and documents to us or the settling agent/survey agent named in the policy and give full cooperation to us or the settling agent or survey agent in assessing your claim.

• Deductible/Excess

This is the amount you have bear before we indemnify you of a loss.

• Premium Warranty

• For single voyage policy, premium must be paid before attachment of cover.
• For Marine Open cover, Premium must be paid and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the major exclusions under this policy?

This policy does not cover:-

a) loss damage or expense attributable to wilful misconduct of the insured.

b) loss damage or expense caused by inherent vice or nature of the subject matter insured.

c) ordinary leakage, ordinary loss in weight or volume or ordinary wear & tear of the subject matter insured.

d) loss damage or expense arising from insolvency or financial default of owners managers charterers or operators of the vessel.

e) loss damage or expense arising from unseaworthiness of vessel or craft, unfitness of vessel, craft conveyance container or liftvan for the safe carriage of the subject matter insured, where the Insured or their servant are privy to such unseaworthiness or unfitness at the time the subject matter is loaded therein.

f) loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject matter insured.

g) loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against.

h) loss damage or expense arising from the use of any weapon of war, weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.

What are the pre-acceptance conditions for this product?

• No claims for the past 3 years.
• Insured has never been declined, cancelled or refused coverage previously.

Can I cancel my policy?

You may cancel your policy by giving written notice to be substantiated with evidence that the shipment has been cancelled by buyer/supplier to the insurance company. Upon cancellation, you are entitled to a refund of the premium based on the unexpired period of insurance less 10% administration charge.

Where can I obtain further information?

If you have any enquiries, please contact us at:

Customer Service
Dara Insurance Plc
Canadia Tower, 3rd Floor
No. 315, Corner of Ang Duong St.and Preah Monivong Blvd.,
Sangkat Wat Phnom, Khan Daun Penh, Phnom Penh, Cambodia.

Tel : +855 23 901 353
E-mail : enquiries@darainsurance.com.kh
Website: www.darainsurance.com.kh