Common use of Object of Insurance Clause in Contracts

Object of Insurance. 2.1 The object of insurance is the cargo indicated in the insurance policy, which is transported using a means of transport, and the policyholder’s financial interest in the cargo. 2.2 The financial interest in the cargo that need not be indicated separately in the insurance agreement: a) costs of removal or disposal of damaged or destroyed cargo (not exceeding 10% of the sum insured); b) a financial claim raised against a person insured under Institute Cargo Clauses (e.g. a claim raised under the General Average adjustment). 2.3 The financial interest in the cargo that is insured only if separately indicated in the insurance agreement: a) direct costs related to the carriage of the cargo (e.g. freight charges paid to the carrier); b) taxes and duties related to the importation or exportation of the cargo (e.g. customs duties); c) non-refundable taxes related to the placement of the cargo in free circulation (e.g. excise duty); d) direct costs related to a late arrival of the cargo (not exceeding the freight charges). 2.4 The means of transport carrying the cargo and the goods handling equipment shall be technically sound and suitable for carrying the cargo, considering the nature of the cargo, the route and other circumstances of carriage. The means of transport shall comply with the legislation effective in the countries of departure, transit and destination and with applicable regulatory requirements (e.g. the certificate issued by the vessels classification society, etc.). 2.5 The following do not constitute an object of insurance (unless otherwise agreed in the insurance agreement): a) an item not being transported (e.g. goods stored); b) cargo driven by its own power; c) towed cargo; d) means of transport carrying the cargo (incl. a container or trailer); e) cash, bankcards, securities, bonds, gift cards, lottery tickets, coupons, invoices, checks, tax stamps, docu­ ments, plans, designs, drawings, archives, information and software contained in an information proces­ sing system or storage medium; f) weapons, ammunition and explosives; g) items of historical or artistic value; h) precious stones, pearls, items made of precious metals or materials; i) living creatures, including humans, animals, fish, birds, insects, plants, etc.; j) dead bodies, donor organs, incl. donor blood; k) radioactive material; l) contraband, incl. goods whose carriage is prohibited by the relevant legislation of the country of departure, destination or transit.