GENERAL CONDITIONS
I.GEOGRAPHICAL LIMITATION AND INSURED GOODS
1.The provisions hereof apply to goods insured for carriage by water, land and air.
2.As insured goods shall be considered the merchandise identified in the policy details and/or declarations.
II.SUBJECT MATTER
The purpose of this policy is to insure, up to the amount insured and pursuant to the terms of the insurance contract, the payment of indemnity to the Insured for losses actually sustained and adequately substantiated, resulting from the covered risks.
III.AMOUNT INSURED
1.The amount insured, stipulated by the Insured, represents the indemnity limit payable for losses covered pursuant to the terms hereof, without implying, thereby, the Insurer’s recognition of such amount as prior determination of the actual value of the insured goods.
- The amount insured shall correspond to the subject matter insured, pursuant to the definition of Clause XIV (SETTLEMENT OF CLAIMS) of these General Conditions, but may also cover one or more of the following funds, provided that they are ratified by additional coverage and broken down into separate values in the policy and declaration:
a)buyer’s advance loss of profits from marketing or industrialization of the subject matter insured.
b)expenses, and
c)taxes
IV. SCOPE OF LIABILITY
The Scope of Liability represents the maximum amount Insurer will take on for each voyage of the same means of transport or by way of accumulation of goods and/or merchandise at ports or airports or other locations provided herein. The acceptance of shipments with values higher than the limit specified in the policy shall be subject to the Insurer’s prior and express consent, upon consultation in writing, at least three (3) business day prior to risk inception.
V. COVERED PERILS
For the purposes hereof, perils covered are those defined under the Special Conditions of each insurance type, which are an integrated and inseparable part hereof and are herein expressly ratified.
VI.RECOVERABLE LOSSES
Material losses and expenses reasonably incurred in the defense, safeguard and recovery of the subject matter, as well as in the minimization of its losses and damages, provided that these arise out directly from the risks covered by the agreement terms.
VII.NON-RECOVERABLE LOSSES
For the purposes hereof, non-recoverable losses are those expressly agreed to in the Special Conditions of each conveyance, which are an integrated and inseparable part of this policy.
VIII.GOODS NOT COVERED BY THE INSURANCE
1.In no event shall this policy cover:
a)any property involving risks other than those typical of goods in transit;
b)filming and/or cinematographic, photographic and similar equipment, whenever the risk of remaining in cinemas, studios, motion picture collectors, video storage, video rental or sale stores and shooting sets is involved.
c)third parties goods received for carriage.
d)cash, either in the form of coins or bills, precious metals and their alloys, whether processed or not, precious and semiprecious stones, gems and pearls, mounted or not; checks, securities, policies, documents and other obligations of any kind, lottery tickets, stamps and revenue stamps, other than for their material value (intrinsic);
2.Unless otherwise specified in the policy provisions, this insurance policy shall not cover:
a)mobility aid, in the cases of self-locomotion;
b)returned or redispatched;
c)second-hand goods and/or merchandise;
d)goods with no commercial value declared on the bill of lading;
e)goods carried on vessels which names are still to be notified;
f)galvanized and/or zinc-coated iron plates (tin), whenever the purchase document sets forth specifications under the minimum standard level set forth by ABNT - Brazilian Association of Technical Standards, concerning the weight, adherence and uniformity of the zinc coating;
g)goods carried on decks;
h)goods for display at exhibitions, whenever there is any risk of stay on the display sites;
i)goods carried on vessels that:
i.1)are excluded from the 1st Class of renown Classification Societies or that are ranked in an unknown class.
i.2)are older than twenty (20) years (as of the manufacture year of the vessel, according its class registration) or of unknown age; or
i.3)with a tonnage breadth – TAB lower than 1,000 Tons; or
i.4)are not self-propelled; or
i.5)are built in other material than iron or steel; or
i.6)are used in regular shipping lines which characteristics are unknown;
The following are considered recognized Classification Societies:
Lloyd’s Register; American Bureau of Shipping, Bureau Veritas, China Classification Society, Germanischer Lloyd, Korean Register of Shipping, Maritime Register of Shipping, Nippon Kaiji Kyokai; Norske Veritas, Registro Italiano.
IX.DEDUCTIBLES
Deductible amounts with a relative or absolute value, whichever is higher, for each separate loss event, shall be freely agreed upon by the parties.
a)A minimum deductible amount of 0.50% or R$ 500,00(1), whichever is higher, shall apply pursuant to the Specific Conditions “312 – Deductibles for International and Domestic Transport Insurance (expect single operations of domestic land transport)” and “313 - Deductibles for Single Operations and Domestic Land Transport Insurance”.
Note:Unless otherwise expressly determined in the policy.
(1)Or its equivalent in U.S. dollars for policies contracted in foreign currency.
X.FORMS OF INSURANCE CONTRACTING AND PAYMENT OF PREMIUM
1.Single Policy: is the one issued to cover a single shipment.
1.1Payment terms: at sight, prior to risk inception.
2.Policy declaration: aims to cover several shipments, which are notified to Insurer by way of a form Declaration or of a Declaration transmitted by electronic media.
2.1Premium Payment Terms: monthly invoicing for payment within 30 days at the latest from the date of invoice issuance.
3.Annual Policy with premium payment in installments: is that policy intended to cover several shipments, based on a fixed or adjustable premium;
3.1Premium payment terms: pursuant to the provisions of Clause XI (PREMIUM PAYMENT) of these General Conditions;
XI.PREMIUM PAYMENT
- Default in the payment of the insurance premium at sight, in single policies, of the first installment, in the cases of insurance with split costs or failure to pay the monthly amount, in the cases of policy declaration, on the due date for payment indicated in the corresponding insurance note, shall imply the automatic cancellation of the policy, regardless of judicial or extra-judicial notification and, should there be a premium to be paid on the account of any risk period elapsed, this shall be charged in execution proceedings, pursuant to Art. 27 f Decree-Law No. 73, of November 21, 1966, subjecting indebtedness, in addition to monetary adjustment, to a monthly interest rate established by the law, prorated on a daily basis through the date of effective payment, plus legal penalties prescribed by the applicable laws in force, to be calculated over the total indebtedness, without prejudice to the reimbursement of expenses the Insurer has to bear as a result of claim recovery proceedings.
The Insured hereby authorizes Insurer to issue a bill of exchange under which it may even be the nominated Borrower, which it undertakes to accept and pay, also if submitted by third party endorsees.
2.For the purpose of coverage in insurance policies funded by premium payment in installments, in the event of default in the payment of one of the installments, the number of days corresponding to the premium rate calculated based on the ratio between the premium actually paid and the premium due shall follow the table below:
RATIO BETWEEN THE VALUE PAID AND THE ANNUALIZED AMOUNT DUE (%) / NO. OF DAYS FOR ADJUSTED VALIDITY / RATIO BETWEEN THE VALUE PAID AND THE ANNUALIZED AMOUNT DUE (%) / NO. OF DAYS FOR ADJUSTED VALIDITY13 / 15 / 73 / 195
20 / 30 / 75 / 210
27 / 45 / 78 / 225
30 / 60 / 80 / 240
37 / 75 / 83 / 255
40 / 90 / 85 / 270
46 / 105 / 88 / 285
50 / 120 / 90 / 300
56 / 135 / 93 / 315
60 / 150 / 95 / 330
66 / 165 / 98 / 345
70 / 180 / 100 / 365
2.1If, from the comparison between the value paid with the total annualized amount due in the policy, a percent rate which is not mentioned in the table above results, the number of days for the adjusted validity term shall be the one corresponding to the immediately higher rate.
2.2The Insured may recover the right to the contracted coverage for the validity term initially agreed, provided that it resumes the payment of the premium due within the time set forth in this clause, and Insurer shall be solely entitled to charge the legal interest rate corresponding to the rate adopted by the financial market.
3.When the deadline falls on a day when there is no bank operation, payment of the insurance premium may be effected on the first business day with normal banking operations that is subsequent to that date.
4.In the event of declaration policy, if the loss event occurs within the time for the payment of the insurance premium, and no payment has been made as of the date of loss, the right to indemnity shall not be impaired, provided that the corresponding amount is settled within that time.
5.The right to indemnity attaching to a single policy shall be contingent, in the first place, to the production of proof of premium payment prior to the date of risk inception.
6.Payments of premium made by checks shall only be considered settled for the purposes of coverage upon full compensation of the amounts between drawee banks.
XII.PROCEDURES FOR POLICY ACCEPTANCE AND RENEWAL
1.The Insurer shall be allowed fifteen days as of the date of receipt of application to reject or accept the risk proposed.
2.The 15-day term shall be reduced to 7 days in the case of acceptance of single policies.
3.In case of renewal, the 15-day term shall be counted as of the original policy expiration date, provided that the application for renewal is received by the Insurer prior to the date of risk inception, otherwise the procedure described in item 1 above is to be followed.
4.The Insurer’s failure to respond, in writing, shall imply tacit acceptance of the risk proposed.
5.If Insurer requests that the date of policy inception is set for a date later than the periods provided in items 1 and 2 above, the Insurer may accept such date as the date of actual acceptance, and the term for refusal shall be counted as of the date of application receipt.
6.Any advance payment of the premium, either in whole or in part, shall not imply any liability for the Insurance Company, which, should it reject the application, shall return the amounts paid, duly adjusted by the TR [Reference Rate] variation as of the date of payment by the Insured through the date of actual refund.
XIII.COVERAGE TERM
1.This insurance coverage shall be valid for the time indicated specified in the policy.
2.The coverage term shall be counted as of the date set forth in the application as the date of policy inception or, inexisting such determination, as of the date of application receipt by the Insurer.
XIV.SETTLEMENT OF CLAIMS
The settlement of any claims covered hereunder shall be handled according to the following rules:
1.The Insurer shall retain the right to choose between:
a)cause damages to be repaired;
b)pay indemnification in kind; or
c)replace the destroyed or damaged goods.
2.Subject Matter Value
2.1For the purposes hereof, value of the subject matter insured means the cost value mentioned on the commercial invoice or an equivalent document, plus freight costs.
In the absence of a commercial invoice or a similar document, the costs shall correspond to the value of the subject matter insured at the place and on the date of shipment.
2.2Any indemnity payment shall be subject to value corroboration of the subject matter insured and, in case the declared value is exacerbated, the Insurer shall be entitled to reduce it to the value indicated in this clause, in which case it shall be discharged from the obligation of refunding the premium paid.
2.3.In case the insurance is contracted for an amount lower than the value of the subject matter, the Insurer shall, for all purposes and effect, be considered insurer of this difference and shall also share pro rata liability for the losses incurred and the general average contributions.
3.Insurable Interest.
3.1.In order to qualify for payment of damages hereunder, the Insured shall have an insurable interest over the subject matter insured on the occasion of the loss event.
3.2.This insurance coverage shall not revert to the benefit of the carrier nor of any other bailee.
- Survey
4.1.Any losses or averages shall always be inspected jointly with the Insurer’s surveyor, with the carrier’s representative and entity in charge of custody and control of the goods, with due regard for the terms and procedures established in the Special Conditions of each insurance type, which are an integrated and inseparable part hereof.
4.2.The Insurer shall retain the right to, at all times and at its own expenses, survey the subject matter.
4.3.Any intervention by the surveyor, which duties are not limited to the determination of the cause, nature and extension of losses, shall not be construed as prior acknowledgment of the Insurer’s liability to the Insured, which indemnity rights shall always be determined by the terms and conditions hereof.
- Basic Documents for the Settlement of Claims
For the purposes hereof, the basic documentation required for claim adjustment and settlement is that provided in the Special Conditions of each coverage type integrating this policy.
The Insurance Company may request any other documents as are necessary to clarify reasonable and justified doubts.
6.Time for Payment of Damages
Once delivered by the Insured, all the documents required for the appropriate investigation of the claim proceedings, the Insurer shall pay the damages within thirty (30) days at the latest.
Counting of this term shall be interrupted and then resumed in case additional documents to those considered basic documentation are required for claim settlement.
XV.TOTAL LOSS
For the purposes hereof, a total loss event occurs whenever the recoverable losses are equal to or higher than seventy-five percent (75%) of the subject matter value insured, as defined in item 2 of Clause XIV (CLAIM SETTLEMENT) of these General Conditions.
The concept of TOTAL LOSS may be applied unit by unit, provided that each unit may be separately appraised and that the subject matter does not consist of goods in bulk, merchandise in packing other than unit volumes or packages invoiced globally without content discrimination and value breakdown for each of them.
XVI.SALVAGE
1.For the purposes hereof, salvage shall mean any product likely to be recovered from an event of loss with a residual economic value.
2.If an event of loss occurs affecting the goods described in this policy, the Insured shall undertake all measures within his control as early as possible, in order to preserve salvage and avoid the aggravation of losses.
3.The Insured is not entitled to abandon the salvage product or averaged goods to the Insurer’s care, except in the cases provided under the Special Conditions of each insurance coverage type integrating this policy.
4.The Insurance Company may, upon the Insured’s consent, diligently pursue the use of salvage, provided that no action undertaken by the Insurer is held as an acceptance of the obligation to indemnify the Insured for the losses incurred.
XVII.CONCURRENT POLICIES
If, upon the occurrence of an event of loss, the property insured hereunder is concurrently covered by other insurance policies against the same risks, liability shall be apportioned pursuant to the criteria described below:
a.Damages shall be calculated per policy, as if each were the only one existing to grant coverage for the losses, provided that the General Conditions, specific and particular to each insurance contract, are duly observed.
b.Damages payable under each policy shall be:
b.1.equal to the indemnity amounts calculated pursuant to item “a” above, whenever their sum is equal to or lower than the losses incurred;
b.2.equal to the amounts obtained from the pro rata distribution of losses to the indemnity amounts calculated as provided in item “a”, whenever their sum is higher than such losses.
XVIII.SUBROGATION OF RIGHTS
Upon the payment of damages, which proof shall be valid as an instrument of assignment, the Insurer shall be subrogated, up to the amount of damages paid, in all Insured’s rights and actions against those who, for action or omission, may have caused the losses covered by the Insurer or may have contributed thereto, and the Insured hereby agrees to provide all necessary support for the exercise of such subrogated rights.
XIX.TERMINATION AND CANCELLATION
1.This agreement may be terminated at any time, either in whole or in part, by either party, except for the ongoing risks, upon prior notice, in writing, which shall not be exceed:
1.1Additional Coverage for War and Strikes
a)Destinations from or to the United States of America
WARSTRIKES
7 days48 hours
b)Other destinations
WARSTRIKES
7 days7 days
1.2Other Coverage or the policy:30 days
3.This Agreement and/or addendum shall be automatically cancelled:
a)in case of default in the payment provided in item 1 of Clause XI (PAYMENT OF THE PREMIUM) of these General Conditions;
b)if the Insured has not declared any shipment after six (6) months have elapsed, in which event neither the premium nor the expenses shall be refunded.
c)in case of bankruptcy or proceedings in law or at equity involving the insured company.
XX.INSURED’S OBLIGATIONS
1.In case of losses covered by this policy, the Insured, its employees and agents undertake to comply with the following provisions:
a)to notify the Insurer immediately, in writing, of any and all losses, including a general average statement, even if the fact is broadly known to the public;
b)regardless of any legal and administrative proceedings they might be subject to, to undertake all the arrangements for the defense, safeguard and preservation of the subject matter insured, as well as to mitigate the damages, in addition to acting act pursuant to the instructions received from the Insurer.
The Insurer shall be liable for any disbursement arising out of the measures above, such as the salvage expenses or costs due to third parties on a pro rata basis to the amount insured, provided that the losses are covered by the guarantees hereof;