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PICC PROPERTY AND CASUALTY COMPANY LIMITED
OCEAN?MARINE?CARGO?CLAUSES(1/1/1981)
RECTIFIED AND ISSUED BY THE PEOPLE’S BANK OF CHINA
(PBOC)DATED 1/1/1995I?.?Scope?of?Cover:This?insurance?is?classified?into?the?following?three?Conditions-?Free?From?Particular?Average?(F.?P.?A.?),?With?Average?(W.?A.?)?and?All?Risks.?Where?the?goods?insured?hereunder?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.?Free?From?Particular?Average?(F.?P.?A.?)This?insurance?covers?:1)?Total?or?Constructive?Total?Loss?of?the?whole?consignment?hereby?insured?caused?in?the?course?of?transit?by?natural?calamities:?heavy?weather,?lightning,?tsunami,?earthquake?and?flood.?In?case?a?constructive?total?loss?is?claimed?for,?the?Insured?shall?abandon?to?the?Company?the?damaged?goods?and?all?his?rights?and?title?pertaining?thereto.?The?goods?on?each?lighter?to?or?from?the?seagoing?vessel?shall?be?deemed?a?separate?risk.?Constructive?Total?Loss?refers?to?the?loss?where?an?actual?total?loss?appears?to?be?unavoidable?or?the?cost?to?be?incurred?in?recovering?or?reconditioning?the?goods?together?with?the?forwarding?cost?to?the?destination?named?in?the?Policy?would?exceed?their?value?on?arrival.2)?Total?or?Partial?Loss?caused?by?accidents?the?carrying?conveyance?being?grounded,?stranded,?sunk?or?in?collision?with?floating?ice?or?other?objects?as?fire?or?explosion?.3)?Partial?loss?of?the?insured?goods?attributable?to?heavy?weather,?lightning?and/or?tsunami,?where?the?conveyance?has?been?grounded,?stranded,?sunk?or?burnt.?irrespective?of?whether?the?event?or?events?took?place?or?after?such?accidents.4)?Partial?of?total?loss?consequent?on?falling?of?entire?package?or?packages?into?sea?during?loading,?transshipment?or?discharge.5)Reasonable?cost?incurred?by?the?insured?on?salvaging?the?goods?or?averting?or?minimizing?a?loss?recoverable?under?the?Policy,?provided?that?such?cost?sh
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