Operational Joint Assured Policy or Transport Operators Liability Insurance Policy

TT Club Policy Book 2004

General Information
This policy is valid from 6/6/2007 to 5/6/2008 This policy covers:
Cargo Liabilities Errors and Omissions Third Party Liabilities Fines and Duty Costs Discretionary Insurance

Transport Operator Cover

T1 Cargo Liabilities

T2 Errors & Omissions

T3 Third Party Liabilities

T4 - Fines & Duty

T5 - Costs

T6 Discretionary Insurance

1- Definition / cover / deductible 2- NOT insured 3- Approved Contracts 4- Uninsured Subcontractors 5- CIS 6- Iraq 7- Personal Effects 8- Valuable Cargoes

1- Definition / Cover / Deductible 2- NOT insured

1- Definition / Cover / Deductible 2- NOT Insured 3- Employees 4- Equipment Sale 5- Limit of Liability

1- Definition / Cover / Deductible 2- NOT Insured 3- Additional Clauses

1- Definition / Cover / Deductible 2- Calculation of misdirection 3- General Average and Salvation

Policy Conditions Clause

To avoid rejection of a claim
KGLL should ensure that it does not fail at any time to provide full and accurate material information
Pays promptly any amounts due to TT Club

Makes declarations immediately, whenever applicable

T1 - Cargo Liabilities Clause

KGLL is insured for its liability for physical loss/damage of cargo and consequential loss arising from this. Deductible per accident US$ 2500/-

Limit per accident US$ 7000000/-

KGLL is NOT insured under this clause

To the extent that KGLLs liability is incurred/increased by:
A declaration of value by the customer An incorrect statement in or omission from the bill of lading Package/unit enumeration in the subcontractors bill of lading* for sea carriage which fails to correspond with the enumeration in KGLLs bill of lading* For liabilities in respect of bullion, precious stones or cash/securities For liabilities arising from unexplained losses discovered on inventory/stocktaking

Approved Contracts

KGLL is insured if its liabilities arise under a compulsory applicable transport law, or convention or a contract in KGLLs approved contract schedule, if it is established by court or approved TT club.

Uninsured Subcontractors
KGLL is not insured for liabilities on cargo carriage within:
Afghanistan Iran Lebanon Syria Yemen (entire territory) Africa (except Republic of South Africa) Commonwealth of Independent States (CIS)

Commonwealth of Independent States

CIS are the eleven countries that were part of the former soviet republics;
Armenia / Azerbaijan / Belarus / Georgia / Kazakhstan / Kyrgyzstan / Moldova / Russia / Tajikistan / Ukraine / Uzbekistan

Exception: If the subcontractors insurer or broker provides KGLL with a written confirmation that the first is fully insured on the date of the accident for its liabilities to KGLL under any contract and under any applicable mandatory law.

Additional Exceptions to CIS

There are many other exceptions that can be provided to you on a case by case basis However, these exceptions shall NOT apply to the following territories:
Abkhazia / Chechnya / Dagestan / Ingushetia/ Kabardino Balkaria / Nagorno Karabakh / Ossetia (North & South) / Tajikistan

Iraq
Iraq may be insured only if:
Carriage within Iraq is subcontracted KGLLs liability is limited to the amounts recovered from the subcontractor KGLL is merely an agent and may not be held liable for any loss, damage or claim which does not directly arise from KGLLs own negligent act or omission.

Personal Effects
May be insured only if:
KGLL did not know that cargo contained personal effects KGLLs customer is a transport operator
KGLL specifically offered in writing to arrange for cargo insurance

Special Limit: Valuable Cargoes

Special Limit of US$ 200000/- and deductible of US$ 2500/- for each accident of:
Processed tobacco/tobacco products Bottled spirits Precious jewelry/precious metal Valuable works of art Thoroughbred horses Computers/handheld electronic products/ mobile telephones (and electronic components of these)

T2 - Errors and Omissions Liability Clause

KGLL is insured for its liability for financial loss incurred by Customer arising from
Delay in performing its KGLL contractual obligations Failure to perform, not arising from loss/damage to cargo The person entitled to delivery as per BoL arising from delivery of cargo contrary to contractual obligation Physical loss/damage to cargo caused by incorrect statement or omission by KGLL.

Limit per accident US$ 100000/ Deductible per accident US$ 2500/-

KGLL is NOT insured

If delay is caused by special instructions by customer For KGLL own operational loss Intentional and reckless conduct Package enumeration Valuable cargo Approved contracts Uninsured subcontractors Iraq Personal effects Valuable cargo (special limits)

T3 Third Parties Liabilities Clause

KGLL is insured for its liability;
For physical loss/damage to 3P property For death, injury or illness of any 3P For liability of KGLLs 3P to any of its 3P for loss/damage and/or death or injury of 3P To compensate 3P if KGLLs liability arises out of a contract
For lease/sale of equipment for use in KGLLs insured service With KGLLs subcontractor/venturer

Limit per accident US$ 7000000/ Deductible per accident US$ 2500/-

KGLL is NOT insured under this clause;

If the contract states that KGLL incurs liability without fault or negligence Liquidated damages Death, illness and/or injury of KGLL employee Which is covered by employers liability insurance By using unlicensed vehicle Arising from accident in USA/Canada owned/leased chassis/trailer for use on public road In respect of KGLL handling equipment during its use by someone else

KGLL is NOT insured under this clause;

In respect of KGLL equipment not insured for loss/damage As owner/lessee of land which is not insured Arising from erection or dismantling of insured handling equipment unless for maintenance, inspection or repair Arising from relocation of handling equipment outside the KGLL premises Which are contractual liabilities to compensate someone else for physical loss/damage to KGLL owned/lease property.

Employees

Employees of KGLL are insured as long as they are assured by another insurance company.

Transfer of Interest in equipment under contract of sale

Such sold equipments are insured only if:
TT agrees to insure the item directly before the sale Item is sold as is where is New owner is only given right to quiet use Expressly exclude any warranty, fitness of use and merchantability The accident occurs during KGLLs period of insurance

Limit of Liability

Shall cover any third party in accordance with the minimum requirements under the applicable law for injury or death of a person or damage to property.

T4 Fines and Duties Clause

KGLL is insured for fines, penalties, duties, taxes and fiscal charges imposed on it by an authority due to confiscation of property including KGLL insured equipment. (carrying or handling equipment). This applies to:
Import/Export carriage of cargo, conveyance or equipment Immigration Safety at work Security/anti-terrorism Pollution (only if arising from physical loss/damage of cargo or equipment) Joint venturer/partners are insured for their liability arising from KGLLs failure to perform its contractual obligations

Limit per accident US$ 100000/ Deductible per accident US$ 2500/-

KGLL is NOT insured

For Tariffs on companies In respect of KGLL owner/leased equipment which is NOT insured for loss/damage For liability/confiscation arising from KGLL making customs bond/guarantee available to another operator, unless arising from:
Assistance which the operator provides to KGLL in its insured services, or Insured services which KGLL provides to the operator.

Intentional or reckless conduct (claims may be reduced or rejected by TT)

The following clauses also apply:

Valuable cargo (exclusions) Uninsured subcontractors CIS Iraq Valuable Cargo (Special Limits)

T5 Costs Clause
KGLL is insured for:
Mitigation (costs minimizing claims) Investigation & Defense (including survey fees) Disposal Quarantine & Disinfection (including fumigation) other than in the normal course of business Misdirection General Average and Salvage Uncollected Cargo= Costs by failure of consignee to collect cargo proceeds from such cargo sums which can be recovered from someone else Completion of carriage (additional costs to normal expenses)

Limit per accident US$ 7000000/ Deductible per accident NIL

Calculation of Misdirection
Costs of carriage of cargo from the place where KGLL originally received them + cost of carriage to the place where it was misdirected freight or other charges that KGLL would have paid for the normal course of carriage. Carriage will NOT be by air unless that was the original means of transportation or the TT agrees to the same. Deductibles: if costs arising from the above equation are less than 500$ then no claim will be accepted under this clause.

General Average and Salvation Guarantees

TT may assist KGL in releasing cargo licenses for general average or salvage contributions, usually by:
Arranging for cargo underwriters to give necessary guarantee, or TT giving the guarantee directly

When TT gives a guarantee KGLL will obtain:

A complete valuation form for the cargo Prior to delivery of the cargo, counter security acceptable to TT from the consignee or its cargo underwriters.

T6 Discretionary Insurance
KGLL is insured at the discretion of TT for the following;
Incidental to insured services Interference of international organizations or authorities (which TT considers unwarranted) Where TT considers this to be its interests or those of its members

Limit per accident US$ 7000000/ Deductible per accident NIL

Definitions
Cargo: includes
Carrying equipment unless supplied by KGLL Anything used for packing or securing goods

Carrying Equipment:
container/ chassis / trailer / rolling stock / genset / swap body / igloo Anything else specified as carrying equipment in your assets schedule.

Insured Services: services set out on the KGLL certificate in respect of which TT has agreed that KGLL is insured;

Operations Freight Forwarder Haulage Operator Logistics Operator Warehouse Operator Excluded Cargoes

Trading Area Worldwide Middle East Middle East Kuwait and Qatar

Traffic Modes Air/Road/Sea Road Road

Personal effects (if more than 10% of turnover) Bulk Cargo

Flexi tank
Project

 General Average and Salvage: sacrifice or expenditure to save property in a sea voyage, to which in principle, all owners of the saved property contribute proportionally. General: reduction of reimbursement of a claim because the value of equipment or property in KGLL declaration is less than its actual or new replacement value. Declaration: is a declaration of information which is to be provided by KGLL to TT in order to calculate the premium.

Thank you & Be Safe