AIR TRANSPORTATION CARGO INSURANCE CLAUSES

I. Scope of Cover

This insurance is classified into two conditions-Air Transportation Risks and Air Transportation All Risks. Where the insured goods sustain loss or damage, the Company shall undertake to indemnify therefor according to the Insured Condition specified in the policy and the provisions of these Clauses.

1. Air Transportation Risks

This insurance covers :

(1) Total or partial loss of the insured goods caused in the course of transportation by lightning, fire, explosion, jettison due to the aircraft encountering bad weather or other perils, collision, overturning, crashing or missing of the aircraft and other accidents.

(2) Reasonable cost incurred by the Insured in salving the goods or averting or minimizing a loss recoverable under the policy, provided that such cost shall not exceed the value of the consignment so saved.

2. Air Transportation All Risks

Aside from the risks covered under the air Transportation Risks conditions as above, this insurance also covers all risks of loss of or damage to the insured goods whether partial or total, arising from external causes in the course of transit.

II. Exclusions

This insurance does not cover :

1. Loss or damage caused by the intentional act or fault of the Insured.

2. Loss or damage falling under the liability of the consignor.

3. Loss or damage arising from the quality or shortage of the insured goods prior to the attachment of this insurance.

4. Loss or damage arising from normal loss, inherent vice or nature of the insured goods, loss of market and/or delay in transit and any expenses arising therefrom.

5. Risks and liabilities covered and excluded by the Air Transportation War Risks Clause and Strikes, Riots and Civil Commotions Clause of the Company.

III. Commencement and 'Termination of Cover

1. Warehouse to Warehouse Clause:

This insurance attaches from the time the goods hereby insured leave the warehouse or place of storage named in the Policy for the commencement of the transit and continues in force in the ordinary course of transit until the insured goods are delivered to the consignee's final warehouse or place of storage at the destination named in the Policy or to any other place used by the Insured for allocation or distribution of the goods or for storage other than in the ordinary course of transit. This insurance shall, however, be limited to thirty(30)days after completion of discharge of the insured goods from the aircraft at the final airport of discharge before they reach the above mentioned warehouse or place of storage If prior to the expiry of the above mentioned thirty(30)days, the insured goods are to be forwarded to a destination other than that named in the Policy , this insurance shall terminate at the commencement of such transit.

2. If, owing to delay, deviation, forced discharge, reshipment or transhipment beyond the control of the Insured or any change or termination of the voyage arising from the exercise of a liberty granted to the carrier under the contract of carriage, the insured goods arrive at a place other than that named in the Policy, subject to immediate notice being given to the Company by the Insured and an additional premium being paid, if required, this insurance shall remain in force and shall terminate as hereunder:

1) lf the insured goods are sold at a place not named in the Policy, this insurance shall terminate on delivery of the goods sold, but in no event shall this insurance extend beyond thirty(30)days after completion of discharge of the insured goods from the carrying aircraft at such place.

2) If the insured goods are to be forwarded to the final destination named in the Policy or any other destination, this insurance shall terminate in accordance with Section(l)above.

IV. Duty of the Insured

It is the duty of the Insured to attend to all matters as specified hereunder：

a) The Insured shall take delivery of the insured goods in good time upon their arrival at port of destination named in the Policy. In the event of any damage to the insured goods, the Insured shall immediately apply for survey to the Survey and/or Settling Agent stipulated in the Policy. If the insured goods are found short in entire package or packages or to show apparent traces of damage, the Insured shall obtain from the carrier, bailee or other relevant authorities certificate of loss or damage and/or short delivery. Should the carrier, bailee or the other relevant authorities be responsible for such shortage or damage, the Insured shall lodge a claim against them in writing, and, if necessary, obtain their confirmation of an extension of the time limit of validity of such claim. Where the Insured fails to perform the duties as agreed upon above, the Insurer shall not be liable for any loss or damage arising therefrom.

b) The Insured shall take reasonable measures immediately to prevent or minimize loss or damage to insured goods exposed to insured risks. Otherwise, the Insurer shall not be liable for the enlarged loss or damage arising therefrom.

c) The following documents should accompany any claim hereunder made against the Insurer:

- Original Policy, Consignment Note, Invoice, Packing List, Weight Memo, Certificate of Loss or Damage and/or Short Delivery, Survey Report, Statement of Claim;

- If any third party is involved, letters, cables and facsimiles relative to pursuing of recovery from such party;

-Other available certificates and materials in connection with the determination of the nature and cause of the insured event and degree of damage to insured goods.

If the Insurer can‟t verify the loss status as a result of the Insured‟s failure to discharge the obligation to provide documents as prescribed in the preceding paragraph, the Insurer shall not be liable for the loss or damage that cannot be verified.

d) The Insured shall indemnify the Insured for the reasonable expenses incurred by him for having immediately taken effective measures in minimizing and preventing further loss of the subject-matter insured after damage was sustained but the amount of such indemnity shall not exceed sum insured.

V. Claim Settlement

Upon the receipt of the claim and the completed claim materials from the insured, the Insurer shall assess the claim in time. If the claim can not be assessed within the statutory period under complex circumstances, the both parties agree to extend the period but the extended period shall not exceed 30 days. For the claim which falls within the insurance coverage, the Insurer shall effect payment within 10 days after reaching an agreement on payment of indemnity with the Insured.