/ -

1. (Marine Insurance)

1) /

(maritime adventure) (large numbers) ()

* () ()

2)

* ( 693 )

/

* : ( , , , ) ( , ) .

* Marine Insurance Act( MIA 1906)

A Contract of marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against marine losses, that is to say, the losses incidental to marine adventure.

MIA 1906 :

Marine Insurance, Insurable Interests( ), Insurable Interests (), Disclosure & Representation ( ), The Policy(), Double Insurance(), Warranties(), The Voyage(), Assignment of the policy( ). The premium(), Loss and Abandonment( ), partial Loss(), Measure of Indemnity(), Rights of Insurers on Payment, Return Premium, Mutual Insurance,

3)

Insurable Value()

Sum insured ( ),

cf) Agreed Value

(cf. )-,

cf) CFR price *110%

Assured/Insured(),

Cf) Co-assured(), -Owners/Managers/Operators-

Technical manager, Manager,

Insurer/Insurance company /Underwriter((/),

Cf)) P & I Association/ P & I Club

Premium( ),

Cf) Call (P & I , Asvance call, mutual call, supplementary call, unbudgeted call, overspill call, release call)

Insurance policy(policy)(),

Cf) Certificate of entry( P & I)

Insurable interests( ),

Claim amount(): insurance money

Cf) Loss payable clause.

,

clause incorporate.

2.

1) ( Warranties)

.

(1) (Expressed Warranty)

-Warranty of good safety( Warranted always to be in a safe port and safe berth)

-Warranty of Neutrality()

-Institute Warranty( IWL)

- Warranted no Bearing sea

-Warranted classification Maintained.

Cf) * Vessels to be IACS Classedcf) Vessel to undergo entry survey within 30 days of attachment by a Club-appointed surveyor at Member's expense.

Cf) The water tightness test should be carried out within 3 months at the Members expenses. The related cargo liabilities/claims shall be excluded until ratified to the satisfaction with the Club surveyors.

(2) (Implied Warranty )

. .

Warranty of Seaworthiness( )

/ , , ,

Before and at the beginning of the Voyage..

( )

cf ) -

cf) class surveyors survey alc .

Warranty of Legality( )

.

2) ( Utmost Good Faith )-disclosure and representation

/ (disclosure), (representation) ( )

cf) Act as if prudent uninsured owners!

(Best efforts to preserve, mitigate the loss of, and damage to

the property at the riskexercise due and reasonable

diligence, sue and labour)

cf) - Greece- -W&S

- - International trade fraud

pending-non-disclosed-.

3) ( Proximate Cause )

.

( The insurer is liable for any loss proximately caused by a peril insured against, but, subject aforesaid, he is nor liable for any loss which is not proximately caused by a peril insured against. MIA 55)

*: (Proximate in effect, Efficient) (causing),

* ( ) (onus of proof) .

3. (Maritime Perils)-

1) Perils of the seas, rivers, lakes or other navigable waters: Sinking, Stranding, Collision, Heavy weather,( )

2) Fire, Explosion(, )

3) Violent theft by persons from outside the Vessel( )

4) Jettison(:))

5) Piracy() act of public enemy

6) Breakdown of or accident to nuclear installments or reactors

7) Contact with aircraft or similar objects, or object falling from therefrom. Land conveyance, dock or harbour equipment or installment

8) Earthquake, volcanic eruption, or lightening(, )

9) Accidents in loading and discharging or shifting cargo or fuel

10) Bursting of boilers breakage of shafts or any latent defect in the machinery or hull

11) Negligence of Master officers or crew or pilot( )

cf) -

12) Negligence of repairers or charterers provided that such repairers or charterers are not an assured hereunder.

cf) /(subrogation)

13) Barratry () of Master, Officer or crew

Cf) Scuttling

4. (Marine Losses)

.

(Total Loss)

-(Actual T L)

-( Constructive T L)

( Partial Losses

-(Particular Average P.A.)

-(General Average)

Expenditure

(Salvage Charges)

(Sue and Labour Charges)

(Particular Charges)

(Extra Charges)

- Collision Liability

1) Total Loss

(Abandonment) .

Cf) Missing . 2

. MIA after the lapse of reasonable time..

2) (CTL)

. (abandonment .

(PA)

( Notice of abandonment) .

.

cf) ;: ??- (wreck) -wreck removal- P & I Club

cf) cargo removal from the wreck??

3) (Compromised T L/) ( Arranged T L )

.

4) P.A.-Particular Loss/ Particular Average

, P/A Particular Average

5) G.A.- General Average

There is a general average act where any extra-ordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property imperiled in the common adventure. MIA 66.

( .)

General average loss, caused by the direct consequential on a general average act., includes a general average expenditure as well as a general average sacrifice.

-

, , , ,

cf) - - . , --

( )

-

Jettison, Damage by the extinguishing the fire, Voluntary stranding, Ships material burnt for fuel.

- : /

(cf> )

- (GA Contribution)

- (GA Security, GA Guarantee)

: GA Guarantee cargo lien ??

GA Security

Demurrage. Loss of market, indirect loss

cf) YAR(the York Antwerp Rule) 1950, 1974, 1994

6) (Salvage Charge)

.

( cf. )

No Cure No Pay ( Lloyds Standard Form of Salvage Agreement(1890. -1908-1995.. 2000 9 1 updated)

Lump Sum Salvage contract

Fixed Amount Salvage contract

Amendment to Lloyds Open Form - Special Compensation P & I Clause SCOPIC

If a salvor engaged to conduct services under Lloyds Form is unsuccessful in their attempts to salve a ship and/or cargoes then they get no reward despite the fact that they may well have expended a significant amount of resources in endeavoring to achieve the success. On the other hand, if they were successful, they would expect for a fair reward.

Under Lloyds Open Form---In addition, if he has prevented or minimized environmental damage, the article 14 award is subject to an uplift of 30%-100%.

SCOPIC remuneration is based on time and materials, plus an uplift in all cases of 25%.

Fixed cost arbitration procedure( FCAP )-May 3 2005

Security amount USD1,000,000 -no hearing- 50 pages -time table 400 words - 3 -( 3000, 1000 )

7) (Extra Carges)

. ,

8) (Particular Charges)

9) (Sue and Labour Expenses)

.

10) Collision Liability/Running Down Clause RDC

cf) 3/4 RDC: Hull Underwriters

1/4 RDC P & I Club

cf) 4/4 RDC by the P & I : oil pollution, Injury/death claims

* P & I 4/4 RDC

* Sum Insured

Total loss( insured value) USD1 mill

3/4 RDC USD0.75mill

Sue & Labour USD1mill

Legal costs under RDC Cl USD0.75mill

(Double Insurance)

2 .

5. (Hull Policy) - /

1)

(ITC- Hulls, FPL. TLO only 3/4 RDC etc)

(Ships Age. Tonnage, Trading Ares, Cargo etc)

/ ( loss records)

(Single ton Owner., Fleet Owners etc)

Deductibles()

2)

(ILU) (Institute Time Clauses, Hulls)

-ITC- Hulls( )

TLO, Slalvage, Sue & Labour, General Average(Hull contributions), 3/4 RDC .

-ITC Hulls, FPL Unless..

( Free of Particular Loss unless caused by the vessel being stranded, sunk, burnt, on fire, or explosion, in collision or in contact with any external object other than water)

( )

cf), ..

ITC Hulls TLO only including G/A, S/C, S/L and 3/4 RDC( 3/4th collision liability)

ITC War & Strike Clauses-Hulls

cf) War Exclusion trading AREA

WAR RISKS TRADING WARRANTIES

For use with Insurance on Vessels engaged in World-Wide Trade, August 11, 2003

1. This coverage shall extend world-wide, but in the event of a vessel or craft insured hereunder sailing for, deviating towards, or being within the Territorial Waters of any of the Countries or places described in the Current Exclusions as set out below (including any port area that at the date of this notice constitutes part of such a country or place however it may hereafter be described) additional premium shall be paid at the discretion of insurers hereon.

Information of such voyage or deviation shall be given to insurers as soon as practicable, and the absence of prior advice shall not affect the cover hereon.

In the event of the assured not requiring continuation of coverage for a vessel proceeding into or remaining within an excluded area, he shall so advise insurers hereon before the commencement of such voyage, deviation or period, and it shall be at the insurers discretion whether and on what terms the insurance shall be reinstated.

2. Current Exclusions

a) Persian or Arabian Gulf and adjacent waters including the Gulf of Oman North of 24o N.

b) Angola (including Cabinda)

c) Israel

d) Lebanon

e) Libya (including Gulf of Sidre/Sirte)

f) Eritrea

g) Somalia

h) Congo, Democratic Republic of (formerly Zaire)

i) Liberia

j) Sri Lanka

k) Sierra Leone

l) Gulf of Aqaba and the Red Sea

m) Republic of Yemen

n) Pakistan

o) Oman

p) Syria

q) Algeria

r) Egypt

s) Indonesia excluding transiting vessels

t) Ivory coast

u) Nigeria and the Bakassi Peninsular

6.

1) :Act as if prudent uninsured owners.

/ .

2) - ,(,P & I)

, ,

,-W.P Without prejudice Surveyor

3) Superintendent, Maritime Lawyer, Average Adjuster( ),

(Marine Consultant)

4) Repair(temporary or permanent)-Reasonable costs of Repairs

Removal expenses, Port charges, Permanent Repairs +Temporary Repairs

Tank Cleaning and Gas free for the repairs

Spare Parts

Superintendents fees/expenses

Class surveyors fee/exp

Survey fees etc.

cf) The key role as the Owners agent :

Situation Report

/

To assist the Master/Vessel- for the preparation of Sea Protest( Notary Public ), to assist the official enquiry( Marine police etc)

To secure the relevant vouchers and supporting

To recommend the measures to be taken for the interests of the Owners

To arrange and liaise with the Hull, P & I , Class Surveyors

7. Marine Cargo Insurance

. .

1)

-

(1) CIF(Cost,Insurance and Freight )

(Shipper)

. CIF 110%,FPA .

(2) DES(Delivery Ex Ship) DEQ( Delivery Ex Quay)

,

(Discharge port)

.

-(Consignees)

(1) FOB(Free On Board )

, . .

(2) FCA(free Carrier)

. ( CY, CFS) .

(3) CFR(cost and Freight)

CIF . FOB .

(4) FAS(free Alongside Ship)

FOB . .

(5) EXW(Ex Work

/ .

2)

( SG Policy) A/R, A/R(Air) W.A. FPA ICC(A), ICC(B), ICC(C), ICC(Air) .

(1)

T.P.N.R.( Theft, Pilferage and Non-Delivery)

R.F.W.D.(Rain and/or Fresh Water Damage)

Breakage()

leakage/Shortage(/)

Sweat & Heating( )

J.W.O.B.(jettison & Washing Over Board)

cf) : FPA+JWOB

C.O.O.C.( Contact with Oil and /or Other cargo)

Hook and Hole

Denting and Bending

Contamination( )

3) Institute Cargo Clauses( I.C.C.)

I.C.C.(A)

.

( )

-

-

- .

- ,

- /

I.C.C.( B) & (C)

- ,

-

-

-

-

* , , ( C )

-

-,

*( (C) )

* , ( C )

* ( 1 )( (C) )

4)

-/

(L/C), (Commercial Invoice)-

, () -, ,

, , , ,ETA discharge port

(Claims payable in Korea in the currency of USD), , (Assured)

(Premium paid)

5)

-

-

- (

)

- .

-

cf) Tariff Rate

cf) (I.C.C. Institute Classification Clause )

15 , Tariff.

25 .

( 1000), , .

(T/S Transshipment).

cf) Vessel Penalty( V/P)

* : (Liner)

1000 15 . Schedule .

6)

- 3 , .( )

3 .

Documents of Claims

i.

ii.

iii. (Bill of Lading)

iv. (Survey Report)

v.

vi.

cf> Incoterms 2000

INCOTERMS 2000

Group EDeparture

EXW Ex Works

Group F Main carriage unpaid

FCA Free Carrier (... named place)

FAS Free Alongside Ship (...named port of shipment)

FOB Free On Board (... named port of shipment)

Group Main carriage paid

CFR Cost and Freight (... named port of destination)

CIF Cost, Insurance and Freight (... named port of destination)

CPT Carriage Paid To (... named place of destination)

CIP Carriage and Insurance Paid To (... named place of destination)

Group DArrival

DAF Delivered At Frontier (... named place)

DES Delivered Ex Ship (... named port of destination)

DEQ Delivered Ex Quay (... named port of destination)

DDU Delivered Duty Unpaid (... named place of destination)

DDP Delivered Duty Paid (... named place of destination)

Further, under all terms, as in Incoterms 1990, the respective obligations of the parties have been grouped under 10 headings where each heading on the seller's side mirrors the position of the buyer with respect to the same subject matter.

1) EXW EX WORKS (... named place) "Ex works" means the seller's only responsibility is to make the goods available at the seller's premises, i.e. factory. The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk involved in collecting the goods from there to the desired destination. Ex works represents the minimum obligation of the seller.

2) FCA FREE CARRIER (... named place) This term has been designed to meet the requirements of multimodal transport, such as container or roll-on, roll-off traffic by trailers and ferries. It is based on the same name principle as F.O.B. (free on board), except that the seller fulfills its obligations when the goods are delivered to the custody of the carrier at the named place. If no precise place can be named at the time of the contract of sale, the parties should refer to the place where the carrier should take the goods into its charge. The risk of loss or damage to the goods is transferred from seller to buyer at that time and not at the ship's rail. The term "carrier" means any person by whom or in whose name a contract of carriage by road, rail, air, sea, or a combination of modes has been made. When a seller has been furnished a bill of lading, way bill or carrier's receipt, the seller duly fulfills its obligation by presenting such a document issued by a carrier.

3) FAS FREE ALONGSIDE SHIP (... named port of shipment) "F.A.S." or "free alongside ship" requires the seller to deliver the goods alongside the ship on the quay. From that point on, the buyer bears all costs and risks of loss and damage to the goods. Unlike F.O.B., F.A.S. requires the buyer to clear the goods for export and pay the cost of loading the goods.

4) FOB FREE ON BOARD (... named port of shipment) Under "F.O.B." the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i.e., off the dock and placed on the ship). The seller pays the cost of loading the goods.

5) CFR COST AND FREIGHT (... named port of destination) CFR requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail at the port of shipment (i.e. off the dock and placed on the ship). Insurance is the buyer's responsibility as well as stevedore charges at the named port of destination.

6) CIF COST, INSURANCE AND FREIGHT (... named port of destination) CIF is CFR with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods. The seller must contract with the insurer and pay the insurance premium. Insurance is generally more important in international shipping than domestic shipping, because U.S. laws generally hold a common carrier to be liable for lost or damaged goods.

7) CPT CARRIAGE PAID TO (... named place of destination) This term means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the first carrier, and not at the ship's rail. Accordingly, "freight/carriage paid to" can be used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. When the seller is required to furnish a bill of lading, way bill, or carrier receipt, the seller duly fulfills its obligation by presenting such a document issued by the person contracted with for carriage to the main destination.

8) CIP CARRIAGE AND INSURANCE PAID TO (... named place of destination) This term is the same as "freight/carriage paid to (CPT)" but with the additional requirement that the seller has to procure transport insurance against the risk of loss or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

9) DAF DELIVERED AT FRONTIER (... named place) "Delivered at frontier" means that the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. The term is primarily used when goods are carried by rail or truck. The seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs.

10) DES DELIVERED EX SHIP (... named port of destination) Means the seller shall make the goods available to the buyer on board the ship at the place named in the sales contract. The seller bears the full cost and risk involved in bringing the goods there. The cost of unloading the goods and any customs duties must be paid by the buyer.

11) DEQ DELIVERED EX QUAY (... named port of destination) Means the seller has agreed to make the goods available to the buyer on the quay or wharf at the place named in the sales contract. The seller bears the full cost and risks in delivering the goods to that point including unloading.

12) DDU DELIVERED DUTY UNPAID (... named place of destination) Under these terms, the seller fulfills his obligation to deliver when the goods have been available to the buyer "not cleared" for import at the point or place of the named destination. The seller bears all costs and risks involved in bringing the goods to the point or place of named destination. There is no obligation for import clearance.

13) DDP DELIVERED DUTY PAID (... named place of destination) represents the seller's maximum obligation. The term "DDP." is generally followed by words indicating the buyer's premises. It notes that the seller bears all risks and all costs until the goods are delivered. This term can be used irrespective of the mode of transport. If the parties wish to make clear that the seller is not responsible for certain costs, additional word should be added (for example, "delivered duty paid

8. P & I ,

1. P & I HISTORY

2. PROTECTION AND INDEMNITY COVER TODAY

3. P & I INSURANCE MARKET

4.

1) PROPER COVERAGE & OPTIMUM PREMIUM

2) LOSS RECORD & RENEWAL

3) 2003 Renewal Review

5. P & I (T.T.,FDD., Strike)

1. P & I HISTORY

1) MUTUAL INSURANCE ( )

Mutual Clubs:18 (Hull Insurance

Market)- Lloyds . Lloyds monopoly .

-Non-profit making Mutual Hull Insurance

To cover the claims and overhead costs.

*Premium+ investment returns=Claims cost, reinsurance costs,

management costs, transfer to reserve funds, guarantee fund,

tax etc..

1st May, 1855 the First Protection Club was formed.

( Mr. John Riley of Peter Tindall Riley & Co.)

The Shipowners Mutual Protection Society-forerunner of

the Britannia Steam Ship Insurance Association)

2) PROTECTION AND INDEMNITY Clubs

-the Britannia Steam Ship Insurance Association(1855)

-the West of England Steamship Owners Protection Association(1870)

-the North of England(1860)

-the Steamship Mutual(1874)-the North of England-first cargo cover

-The London Steamship( 1866)

the United Kingdom Mutual Steam Ship Assurance Association(1871)

-The American Steamship Owners Mutual P & I Association (1917)

-The Japan Ship Owners Mutual Protection and Indemnity Association (1950)

3) The International Group Agreement-IGA CLUBS

( the International Group of P & I Club)

1 American Steamship Owners Mutual Protection and Indemnity Association, Inc.

2 Assuranceforeningen Gard (Gjensidig)

3 Assuranceforeningen Skuld (Gjensidig)

4 The Britannia Steam Ship Insurance Association Ltd.

5 The Japan Ship Owners' Mutual Protection and Indemnity Association

6 The London Steam-Ship Owners' Mutual Insurance Association Ltd.

7 The North of England Protecting and Indemnity Association Ltd.

8 The Shipowners' Mutual Protection and Indemnity Association (Luxembourg)

9 The Standard Steamship Owners' Protection and Indemnity Association Ltd.

The Standard Steamship Owners' Protection and Indemnity Association (Bermuda) Ltd.

The Standard Steamship Owners Protection and Indemnity Association (London) Ltd.

10 The Steamship Mutual Underwriting Association Ltd.

The Steamship Mutual Underwriting Association (Bermuda) Ltd.

The Steamship Mutual Underwriting Association (Europe) Ltd.

11 Sveriges Angfartygs Assurance Forening (The Swedish Club)

12 The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd.

13 The West of England Ship Owners' Mutual Insurance Association (Luxembourg)

in Korea: Steamship, U.K., Britannia, London, Standard

West of England, North of England, Japan, America

4) P & I Clubs

Mutual Association/non-Profit making

/ Pool -

Committee & Manager Company

Manager

Entry & Calls-

1) Mutual Premium entry

Advance call/Supplementary call

Mutual Premium/Supplementary Premiums

Release calls

Unbudgeted Supplementary Calls

Overspill Calls

2) Fixed premium entry

Charterers Liability Insurance(CLI):

/

Other Fixed Market facilities- Terra Nova, Navigation, Korea P & I , Etc.

Premium rating of the ship: GRT( min.GRT 1500)

The vessels rate will be depend on various Factors such as :

Ship particulars(size and age), Trading area, Cargoes to be carried, Management/Owners and their Loss records and experience, The type of cargo, area of Trading, Flag, Crew contract, Deductibles,

Policy Year 1200 GMT Feb 20-Feb 20 next year

: P & I .

S/C or Supplementary Premiums: upon a percentage of the net Mutual Premium or upon a percentage of the premium ratings of the all ships entered for that year.

2. P & I Cover Today.

Protection :covering those liabilities arising out of owning a ship

Indemnity :covering those liabilities arising out of employment of a ship.

1) Protection

-Legal liabilities Contractual obligations of an Owner to his Crew

-by Law (KSA) or the common law(Civil Law)

The contractual Obligation: under collective agreement between Seamans Unions/Employees

1 Liability to persons other than seamen

3

2 Injury, illness and death of seamen

,

3 Repatriation and substitute of seamen reasonable cost of travel and maintenance.

( deserts, stowaways)

4 Shipwreck unemployment indemnity

5 Loss of or damage to the effects of seamen and others

6 Diversion expenses

/

7 Stowaways and refugees

8 Life salvage

9 Collision with other ships

Collision Liability - 1/4 RDC (Running Down Clause)

3/4RDC, 4/4 RDC

LOU

10 Loss of or Damage to Property(FIFO: Fixed or Floating Objects)

,

LOU

11 Pollution Risks

USD 1000 mill.

12 Towage of or by the Entered Ship-

13 Wreck Liabilities

14 Quarantine expenses

- fumigation .

*Quarantine- e.g. the threat of outbreak of Human Disease on board the ship or in the port.( not cover a situation where a ship is knowingly sent by her owners to a port already in quarantine)

2) INMEMNITY

1 Cargo-Shipowners Legal liability for loss or damage to the cargo

Cover for loss of or damage to cargo or other property carried, or intended to be carried or having been carried onboard a vessel is provided by the P & I Clubs

On deck cargo with an under deck B/L or deviation from the intended route : SOL(Ship Owners Liability ) Insurance should be taken.( where there is a deviation from the Bill of Lading)

Wrongly dated B/L( ante-dated or post-dated), Incorrect description of the cargo or its condition( Mates Receipt vs. B/L)- Clean B/L or Foul B/L

Transhipment of cargo is not covered.

Delivery cargo to the consignees Without production of B/L-

NOT COVERED BY the Club Rules.

2 Collision Liability to cargo on an entered ship

3 Cargos proportion of General Average

4 Ships Proportion of General Average

5 Fines

3) General Terms. Conditions . and Exceptions

Not insure the risk, liability cost or expenses to be fully insured under the usual Lloyds Hull Policy

Exclusion: War Risks

cf) The limit of cover is usd 200million from 2003 policy year excess of the Hull War Risks Policy. The Hull policy should extend their cover.

Nuclear Risks cf) carriage of excepted matter as cargo on the entered ship-special cover should be in advance agreed by the Club.

Damage to the entered ship, Loss of Hire/Freight relating to the entered ship, Bad debts insolvency or fraud of agents, Demurrage and detention of the entered ship ., ETC

cf) Life salvage, Unrecoverable GA contributions, Ships portion of General Average, Sue and Labour and legal costs.

Double Insurance

Contrabands, Blockade Running, Unlawful Trade, Imprudent or Hazardous Operation

4) Limitations/ Club Reinsurance

-1996 P & I Club Oil Pollution P& I Claims Unlimited cover IGA CLUB maximum limitations .

P & I Legal Liabilities P & I Cover .

( The amount of any claim recoverable from the Club is limited to the amount to which the shipowners liability is LEGALLY set either by the court or by virtue of the Shipowners Limitations etc)

wef 2005 policy year

Limitation: War Risks: USD500 million

Oil Pollution: USD1,000million

Total Limitation: USD4,250 million

TABLE A

I.G.A. CLUBS 2002/3

RETENTION, POOLING AND EXCESS REINSURANCE LAYERS

Layer

Layer Limit of Liability

Total Limit of Liability

OVERSPILL Up to 2.5% of tonnage limitation applicable to total entry with all I.G.A. Clubs.

Estimated to be further US$ 2.25 Billion

US$ 4,250M

4TH LAYER I.G.A. EXCESS OF LOSS REINSURANCE

***100% of US$ 500M 1 reintatement

US$ 2,030M

3RD LAYER I.G.A. EXCESS OF LOSS REINSURANCE

***100% of US$ 500M unlimited reinstatements

US$ 1,530M

2ND LAYER I.G.A.

**15% of

***75% of

US$ 1,030M

EXCESS OF LOSS

US$500M

US$ 500M

REINSURANCE

4 reinstatements

unlimited reinstatements

1ST LAYER I.G.A.

**15% of

*10% of

***75% of

US$ 530M

EXCESS OF LOSS

US$ 400M

US$ 500M

US$ 500M

REINSURANCE

4 reinstatements

unlimited reinstatements

*US$ 100M

POOL LAYERS

*US$ 10M

US$ 30M

*US$ 15M

US$ 20M

CLUB RETENTION

US$ 6M

US$ 6M

* Retained by International Group

** Placed by Benfield Greig Reinsurance Brokers

***Placed by Miller Marine Reinsurance Brokers

5) CLUB R/I :(Reinsurance Costs)

$ per G.T

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2002~3

()

$

%

Dirty Tanker

1.3985

1.3873

1.4367

1.4367

1.2346

0.6786

0.5479

0.4373

0.3953

0.3953

0.4859

0.6723

0.1864

38

Clean Tanker

0.5211

0.5304

0.5598

0.5598

0.4324

0.3031

0.2493

0.1970

0.1773

0.1773

0.23642

0.3324

0.0960

41

Passenger

0.4062

0.3980

0.4214

0.4214

0.4136

0.3274

0.3049

0.2762

0.2762

0.2762

0.3782

0.6841

0.3059

81

Dry(Other)

0.4062

0.3980

0.4214

0.4214

0.3061

0.2357

0.1957

0.1538

0.1453

0.1453

0.1984

0.2857

0.0873

44

Table B

IG Reinsurance Rates

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003yr

US$

Dirty Tanker

Clean Tanker

Passenger

Dry(Other)

3.

P & I Hard market 2002 Renewal 2003 2004 Club . P & I Clubs Reserve Fund , P & I Claims / P & I anti-shipowner P & I

cf) -2004

: Power-L/R

1) Proper Coverage/Optimum Insurance Premium/Rating

-Coverage

-Proper deductibles. Proper trading area, proper ratings,

- Proper clubs( Financial status and claims services)

- Risk

RDC/CREW /Passenger Risks

- Rating .

- Management /

- To buy extra insurance?

CLI(TCL)/SOL/detention/loss of hire/strike insurance

Deductibles

2) Loss Record(Ratio) & Renewal

Loss records Loss prevention -from Top management to Crew.

Crew education/training

Oil Pollution- U.S. C.G. ,

Cf) 1) oil pollution chlth 300,000 cash

3) AMrpol .

Port State Control, Flag State Control, Classification Survey

Renewal

* /

*Club Financial Status

*Club Members, Services, General Increase, Supplementary Calls,

Unbudgeted Calls.

*Switch of Clubs

3) 2003 Renewal Review

1996/2001 Soft Market hard( from 2001~); Zero-Rate-Claims cost Underwriting Loss Free reserve 25% General Increase ,

2~3 . .

: 4(2000-2003) IGA Clubs-General Increase, R/I,

S/C and R/C (as of Feb 2003)

A Club 4 Call Record

No

Club

Advance Call

Advance Call

General Increase

(G.I) for 2002/3

Plus increase in R/I Costs

Estimated S/call

For 2002/3

(2001/2)

Additional Release Call for 2002/3

(2001/2)

ETC

Total G.I in terms of ETC

1

American

2000/1

5

Yes

25%

2001/2

10

Yes

25%

+25%

2002/3

12.5%

Yes

40%

+25%

26%

2003/4

25%*

Yes

20%

+25%

25%

*ETP (Estimated Total Premium) 25%

2

Britannia

2000/1

+6.08%

2001/2

25%

+10.57%

2002/3

15%

Yes

40%

+17.19%

28.8%

2003/4

15%

Yes

40%

TBA

15%

3

Gard

2000/1

0%

Yes

25%

0

2001/2

10%

Yes

25%

+25%

2002/3

25%

Yes

25%

+50%

25%

2003/4

15%

Yes

25%

+50%

15%

4

Japan

2000/1

0

Yes

20%

+5%

2001/2

10%

Yes

20%

+5%

2002/3

0%

Yes

20%

+5%

0%

2003/4

10%

Yes

30%

+5%

+19.16%

5

London

2000/1

5%

Yes

+20%

2001/2

10%

Yes

40%

+20%

2002/3

27.5%

Yes

40%

+20%

27.5%

2003/4

25%

Yes

40%

+60%

25%

6

North of England

2000/1

5%

Yes

25%

+25%

2001/2

10%

Yes

25%

+25%

2002/3

25%

Yes

25%

+25%

25%

7

Shipowners

2000/1

0

Yes

25%

+30%

2001/2

0

Yes

25%

+30%

2002/3

20%

Yes

25%

+30%

20%

2003/4

15%

No

25%

+30%

15%

8

Skuld

2000/1

0

Yes

65%

+30%

2001/2

10%

Yes

20%

+30%

2002/3

30%

Yes

20%

+30%

30%

9

Standard

2000/1

0

Yes

25%

+20%of ETP

2001/2

7.5%

Yes

25%

+20%

2002/3

12.5%

Yes

38.89%

+20%

25%

10

Steamship

2000/1

5%

Yes

30%

+25%

2001/2

10%

Yes

40%

+25%

2002/3

25%

Yes

0%

+25%

25%

2003/4

25%

Yes

0

+25%

25%

Mutual Premiums

11

Swedish

2000/1

0

Yes

0

+25%

2001/2

7.5%

Yes

0

+25%

2002/3

25%

Yes

0

+25%

25%

2003/4

25%

Yes

0

+25%

25%

12

UK

2000/1

0

Yes

0

+5%

2001/2

7.5%

Yes

0

+5%

2002/3

20%

Yes

0

+5%

20%

2003/4

25%

Yes

0

+5%

25%

Mutual Premiums

13

West of England

2000/1

5%

50%

+25%

2001/2

10%

20%

+15%

2002/3

25%

20%

+15%

25%

4. P & I

1) T.T. Club

Through Transportation Club( Through Transportation Mutual Association Ltd)

( Multimodal Transportation) .

_ / ( cf. )

-,Container , ,

- 3

Container Terminal /Depo operators risk/liability

2) F.D.D. Club

Freight, Demurrage and Defense Club

Non-P & I matters Legal cost/ Claims . Deductible Mutual Base P & I

dead fright, demurrage, dispatch claims, , , , official investigation/inquiries.

3) Strike Club

Strike loss of earning strike detention loss .

Class 1;Strike, lock out

Class 2: Strikecongestion berth waiting

Class 3: Strike

* Loss of Earning Strike Club . ( )

4) Time Charterers Lisbility(TCL) or CLI

Damage to Hull

FDD( Legal Costs)

,Carriers

cf) Open cover//

9.

1.

( )-

(Carriers) (Shipped On Board:, Shipped B/L), (Received B/L, :CY, CFS ) .

, ()

( Commercial Invoice, B/L, Cargo Insurance Policy)

2. B/L

1)

(Shipped B/L), Shipped on Board

(Received B/L):CY, CFS . .()

2) (Consignee)

(Straight B/L)

B/L ,

(Non-negotiable)

(Order B/L)

Order Order of A .

to Order ; To Order of Shipper; To order of aaa company or banks name)

(Negotiable)

3)

-Clean B/L : . Shipped in apparent good order etc.

-Foul B/L: Mate Receipt(M/R) B/L

Foul B/L Shipper(,) (Letter of Indemnity, L/I) Clean B/L

L/I 3

Cf> comments:

(Letter of Indemnity) .

LOI .

LOI

On Deck Cargo: Under Deck B/L

4)

Ocean B/L B/L. 3 ,

Through B/L ( ) .

Multimodal B/L()- Cover.

cf) Transshipment B/L( ) . Nego.

cf) Charter Party B/L :

3. , ,

-

- ( )

-: , , (Agent)

-: 1 . 3 ( Original B/L, O B/L). O B/L .

cf) ANTE-DATED B/L(B/L, )

cf) Post Dated B/L

cf) B/L description should be in conformity with the same of mate receipts.

ANTE-DATED B/L

3 HAGUE/VISBY RULES P&I CLUB COVER . cf) comments- Steel Product ANTE-DATED B/L . H ( 150 DEPOSIT) .- ANTE-DATED B/L .

2. B/L 1) B/L M/R (IN CONFORMITY WITH) , . B/L AUTHORITY ( B/L () UNAUTHORIZED B/L -> AUTHORITY ).2) , B/L ( ) B/L , , SECURITY 1 .

4.

(Notify Party)

/

( /)

: ,

, prepaid(), collect(, )

. OB/L

()

5.

, ,

1)

O B/L , 3 O B/L . O B/L / .

Guarantee() . O B/L

- correction OB/L .

- Cargo Manifest ( )

2) /

- : .

-

- :

6.

- O B/L OBL .

*

Prima Facie Evidence of the receipt of the cargo/ Document of Title/ Delivery of the cargo in exchange of the one original B/L at the discharge port/ In the other ports than the original discharge ports-all originals should be corrected and exchanged.

- D/O: Delivery Order

OB/L D/O D/O . D/O

- : /

* : Consignee

* to order : shippper OBL

to order of Shipper :

to order of AAA bank : AAA bank OBL

7. Letter of Undertaking( : )-

- : OBL ( P & I : )

8. (Protection & Indemnity)

- ( ) P & I Club .

- OBL

- Ante-dated, Post-dated B/L

: 1) , ,

2)

Delivery of cargo without production of the original Bill of Lading

P & I wording

Liability arising from the delivery of cargo without production of the bills of lading is not recoverable under the Rules unless the Board in its discretion so decides. However, if members decide for commercial reasons to make such delivery but need to protect their position, they are recommended to require the following letter of indemnity from cargo owners to be countersigned by an acceptable bank:

To:

_ _ _ _ _ _ _ _ _

[insert name of owners] the owners of the [insert name of ship]

Dear Sirs,

Ship:

_ _ _ _ _ _ _ _ _

[insert name of ship]

Voyage:

_ _ _ _ _ _ _ _ _

[insert load/discharge port, as stated in the Bill of Lading]

Cargo

_ _ _ _ _ _ _ _ _

[insert description of cargo]

Bill(s) of Lading

_ _ _ _ _ _ _ _ _

[insert identification number, date, place of issue]

The above cargo was shipped on the above vessel by [insert name of shipper] and consigned to [insert name of consignee or to whose order the Bill of Lading is made out, as appropriate] for delivery at the port of [insert name of discharge port stated in the Bill of Lading] but the Bills of Lading have not arrived and we, [insert name of party requesting delivery], hereby request you to give delivery of the said cargo to [insert name of party to whom delivery is to be made] without production of the original Bill(s) of Lading.

In consideration of your complying with our above request, we hereby agree as follows:

1 To indemnify you, your servants and agents and to hold all of you harmless in respect of any liability, loss, damage or expenses of whatsoever nature which you may sustain by reason of delivering the cargo in accordance with our request.

2 In the event of any proceedings being commenced against you or any of your servants or agents in connection with the delivery of the cargo as aforesaid to provide you or them on demand with sufficient funds to defend the same..

3 If, in connection with the delivery of the cargo as aforesaid, the ship or any other ship or property belonging to you should be arrested or detained or if the arrest or detention thereof should be threatened to provide on demand such bail or other security as may be required to prevent such arrest or detention or to secure the release of such ship or property and to indemnify you in respect of any liability, loss, damage or expenses caused by such arrest or detention or threatened arrest or detention whether or not such arrest or detention or threatened arrest or detention may be justified.

4 As soon as all original Bills of Lading for the above cargo shall have come into our possession to deliver the same to you, whereupon our liability hereunder shall cease.

()

5 The liability of each and every person under this indemnity shall be joint and several and shall not be conditional upon your proceeding first against any person, whether or not such person is party to or liable under this indemnity.

6 The liability of each and every person under this indemnity shall in no circumstances exceed 200% of the CIF value of the above cargo..

CIF 200%

7 This indemnity shall be governed by and construed in accordance with English law and every person liable under this indemnity shall at your request submit to the jurisdiction of the High Court of Justice of England.

Yours faithfully,

For and on behalf of[insert name of Requestor]

For and on behalf of[insert name of Bank]

9.

2

813 ( ) 1 . 1 "" 1 . 2 .

814 ( ) . 1. , 2. , , , 3. 4. 5. 6. 7. 8. 9. 10. 12 , , . 12 . . [ 1991.12.31]

8142 ( ) 8141 . . [ 1991.12.31]

815 ( ) .

816 ( ) 1 . 1 1 .

817 ( ) .

818 (2 )2 . 8161 1 .

819 ( )818 . .

820 () 129, 130, 132 133 .

2

821 ( ) .

822 () .

823 ( , ) . . 1 .

824 () .

825 ( ) . . 1 .

826 ( ) .

827 ( ) , 10 3 10 3 .

828 ( ) .

829 () 80711 3 . .

830 ()148, 787, 7901 806 . 134, 136, 1492, 787 7912, 800, 8002, 806, 808 811 . 150, 78921 4, 7893, 7901, 806 811 . [ 1991.12.31]

831 () 781, 7821, 783, 784, 786, 787, 7901, 791, 792 797, 802, 807, 808 811 . [ 1991.12.31

10. The HAGUE-VISBY RULES

The Hague-Visby RulesThe Hague Rules as Amended by the Brussels Protocol 1968

International Convention for the Unification of Certain Rules of Law

Relating to Bills of Lading 1924

And Protocol to Amend 1971

Hague Rule( COGSA:Carriage of Goods By sea Act 1924)

Hague-Visby Rules(COGSA 1971)

- 1962 / 2004 .

1

- ( carrier) :

- (Contract of Carriage):

(document of title)

- cargo(): (livestock)

, ,

,

Carriage of Goods:

( from ships tackle to tackle)

2 6 , , , , ,

* loading, handling, stowage, carriage, custody, care and discharge.

3 -

1. ( Before and at the beginning of the voyage exercise due diligence)

1. Make the Ship seaworthy

2. Properly man, equip and supply the ship

3. Make the holds, refrigerating and cooling chambers, and all other parts of the ship in which goods are carried,

Fit and safe for their Reception, carriage and preservation.

2. Carriers shall ---Properly and carefully---

load,

handle,

carry,

keep,

care for,

and discharge the goods carried.

3. , , B/L Shipper

4. prima facie evidence of the receipt of the cargo

3( third party acting under good faith)

5.An action of indemnity( claims)

.

1 .

* : ( - )

Time bar- Time extension to be agreed or a suit to be proceeded.

4 -

42 ( )

1) , Act. Omission, Neglect or default(- )

_ / ,

Senior employee

-

due diligence .

2) ( Fire) ,unless caused by the actual fault and privity of the carriers

-

-

-

- Sue & L

3) Perils, danger and accidents of the sea or other navigable waters

( , )

4) (Act of God)

5) Act of War

6) Act of public enemy( )

7) ..(eg Suez ..)

8)

9) ,

10) Strikes(), lockouts(),

11)

12)

* deviation()

13) Wastage in bulk or weight or damage --- inherent vice( )

,

14)

15) ,

16)

17) shipper act, fault, negligence

--- Shipper -

Act or Omission of the shippers or owners of the goods, his agent or representative

,

,

: v 2%, 5%, Bulk 1.5~2%

Cement in bag 0.5% etc.

(latent defects) .( . - , wear & tear .)

Reference:

789 (-) . 787 7881 . 1. 2. 3. , 4. 5. , 6. 7. 8. 9. 10. 11.

( ..)

1/ 1 SDR 666.67

SDR 2/ Kilograms

US COGSA US$500

Case study: Container

Bulk Cargo : package / metric tons??

On deck ??

-Reference:

7892 ( )787 789 500 . , . 1 . 1. . . 2. . 1 2 . , .

The Hague-Visby RulesThe Hague Rules as Amended by the Brussels Protocol 1968

1

Article I

2

In these Rules the following words are employed, with the meanings set out below:

3

(a) 'Carrier' includes the owner or the charterer who enters into a contract of carriage with a shipper.

4

(b) 'Contract of carriage' applies only to contracts of carriage covered by a bill of lading or any similar document of title, in so far as such document relates to the carriage of goods by sea, including any bill of lading or any similar document as aforesaid issued under or pursuant to a charter party from the moment at which such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same.

5

(c) 'Goods' includes goods, wares, merchandise, and articles of every kind whatsoever except live animals and cargo which by the contract of carriage is stated as being carried on deck and is so carried.

6

(d) 'Ship' means any vessel used for the carriage of goods by sea.

7

(e) 'Carriage of goods' covers the period from the time when the goods are loaded on to the time they are discharged from the ship.

8

Article II

9

Subject to the provisions of Article VI, under every contract of carriage of goods by sea the carrier, in relation to the loading, handling, stowage, carriage, custody, care and discharge of such goods, shall be subject to the responsibilities and liabilities and entitled to the rights and immunities hereinafter set forth.

10

Article III

11

1. The carrier shall be bound before and at the beginning of the voyage to exercise due diligence to:

12

(a) Make the ship seaworthy;

13

(b) Properly man, equip and supply the ship;

14

(c) Make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation.

15

2. Subject to the provisions of Article IV, the carrier shall properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried.

16

3. After receiving the goods into his charge the carrier or the master or agent of the carrier shall, on demand of the shipper, issue to the shipper a bill of lading showing among other things:

17

(a) The leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of such goods starts, provided such marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or coverings in which such goods are contained, in such a manner as should ordinarily remain legible until the end of the voyage.

18

(b) Either the number of packages or pieces, or the quantity, or weight, as the case may be, as furnished in writing by the shipper.

19

(c) The apparent order and condition of the goods.

20

Provided that no carrier, master or agent of the carrier shall be bound to state or show in the bill of lading any marks, number, quantity or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received, or which he has had no reasonable means of checking.

21

4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as therein described in accordance with paragraph 3 (a), (b) and (c). However, proof to the contrary shall not be admissible when the bill of lading has been transferred to a third party acting in good faith.

22

5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of the marks, number, quantity and weight, as furnished by him, and the shipper shall indemnify the carrier against all loss, damages and expenses arising or resulting from inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way limit his responsibility and liability under the contract of carriage to any person other than the shipper.

23

6. Unless notice of loss or damage and the general nature of such loss or damage be given in writing to the carrier or his agent at the port of discharge before or at the time of the removal of the goods into the custody of the person entitled to delivery thereof under the contract of carriage, or, if the loss or damage be not apparent, within three days, such removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading.

24

The notice in writing need not be given if the state of the goods has, at the time of their receipt, been the subject of joint survey or inspection.

25

Subject to paragraph 6bis the carrier and the ship shall in any event be discharged from all liability whatsoever in respect of the goods, unless suit is brought within one year of their delivery or of the date when they should have been delivered. This period, may however, be extended if the parties so agree after the cause of action has arisen.

26

In the case of any actual or apprehended loss or damage the carrier and the receiver shall give all reasonable facilities to each other for inspecting and tallying the goods.

27

6 bis. An action for indemnity against a third person may be brought even after the expiration of the year provided for in the preceding paragraph if brought within the time allowed by the law of the Court seized of the case. However, the time allowed shall be not less than three months, commencing from the day when the person bringing such action for indemnity has settled the claim or has been served with process in the action against himself.

28

7, After the goods are loaded the bill of lading to be issued by the carrier, master, or agent of the carrier, to the shipper shall, if the shipper so demands be a 'shipped' bill of lading, provided that if the shipper shall have previously taken up any document of title to such goods, he shall surrender the same as against the issue of the 'shipped' bill of lading, but at the option of the carrier such document of title may be noted at the port of shipment by the carrier, master, or agent with the name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted, if it shows the particulars mentioned in paragraph 3 of Article III, shall for the purpose of this article be deemed to constitute a 'shipped' bill of lading.

29

8. Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to, or in connection with, goods arising from negligence, fault, or failure in the duties and obligations provided in this article or lessening such liability otherwise than as provided in these Rules, shall be null and void and of no effect. A benefit of insurance in favour of the carrier or similar clause shall be deemed to be a clause relieving the carrier from liability.

30

Article IV

31

1. Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped and supplied, and to make the holds, refrigerating and cool chambers and all other parts of the ship in which goods are carried fit and safe for their reception, carriage and preservation in accordance with the provisions of paragraph 1 of Article III. Whenever loss or damage has resulted from unseaworthiness the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this article.

32

2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from:

33

(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the navigation or in the management of the ship.

34

(b) Fire, unless caused by the actual fault or privity of the carrier.

35

(c) Perils, dangers and accidents of the sea or other navigable waters.

36

(d) Act of God.

37

(e) Act of war.

38

(f) Act of public enemies.

39

(g) Arrest or restraint of princes, rulers or people, or seizure under legal process.

40

(h) Quarantine restrictions.

41

(i) Act or omission of the shipper or owner of the goods, his agent or representative.

42

(j) Strikes or lockouts or stoppage or restraint of labour from whatever cause, whether partial or general.

43

(k) Riots and civil commotions.

44

(l) Saving or attempting to save life or property at sea.

45

(m) Wastage in bulk of weight or any other loss or damage arising from inherent defect, quality or vice of the goods.

46

(n) Insufficiency of packing.

47

(o) Insufficiency or inadequacy of marks.

48

(p) Latent defects not discoverable by due diligence.

49

(q) Any other cause arising without the actual fault or privity of the carrier, or without the fault or neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage.

50

3. The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising or resulting from any cause without the act, fault or neglect of the shipper, his agents or his servants.

51

4. Any deviation in saving or attempting to save life or property at sea or any reasonable deviation shall not be deemed to be an infringement or breach of these Rules or of the contract of carriage, and the carrier shall not be liable for any loss or damage resulting therefrom.

52

5 (a) Unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding the equivalent of 666.67 units of account per package or unit or units of account per kilo of gross weight of the goods lost or damaged, whichever is the higher.

53

(b) The total amount recoverable shall be calculated by reference to the value of such goods at the place and time at which the goods are discharged from the ship in accordance with the contract or should have been so discharged.

54

The value of the goods shall be fixed according to the commodity exchange price, or, if there be no such price, according to the current market price, or, if there be no commodity exchange price or current market price, by reference to the normal value of goods of the same kind and quality.

55

(c) Where a container, pallet or similar article of transport is used to consolidate goods, the number of packages or units enumerated in the bill of lading as packed in such article of transport shall be deemed the number of packages or units for the purpose of this paragraph as far as these packages or units are concerned. Except as aforesaid such article of transport shall be considered the package or unit.

56

(d) The unit of account mentioned in this Article is the special drawing right as defined by the International Monetary Fund. The amounts mentioned in h_visby/art/art04_5asub-paragraph (a) of this paragraph shall be converted into national currency on the basis of the value of that currency on a date to be determined by the law of the Court seized of the case.

57

(e) Neither the carrier nor the ship shall be entitled to the benefit of the limitation of liability provided for in this paragraph if it is proved that the damage resulted from an act or omission of the carrier done with intent to cause damage, or recklessly and with knowledge that damage would probably result.

58

(f) The declaration mentioned in sub-paragraph (a) of this paragraph, if embodied in the bill of lading, shall be prima facie evidence, but shall not be binding or conclusive on the carrier.

59

(g) By agreement between the carrier, master or agent of the carrier and the shipper other maximum amounts than those mentioned in sub-paragraph (a) of this paragraph may be fixed, provided that no maximum amount so fixed shall be less than the appropriate maximum mentioned in that sub-paragraph.

60

(h) Neither the carrier nor the ship shall be responsible in any event for loss or damage to, or in connection with, goods if the nature or value thereof has been knowingly mis-stated by the shipper in the bill of lading.

61

6. Goods of an inflammable, explosive or dangerous nature to the shipment whereof the carrier, master or agent of the carrier has not consented with knowledge of their nature and character, may at any time before discharge be landed at any place, or destroyed or rendered innocuous by the carrier without compensation and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. If any such goods shipped with such knowledge and consent shall become a danger to the ship or cargo, they may in like manner be landed at any place, or destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average, if any.

62

Article IV bis

63

1. The defences and limits of liability provided for in these Rules shall apply in any action against the carrier in respect of loss or damage to goods covered by a contract of carriage whether the action be founded in contract or in tort.

64

2. If such an action is brought against a servant or agent of the carrier (such servant or agent not being an independent contractor), such servant or agent shall be entitled to avail himself of the defences and limits of liability which the carrier is entitled to invoke under these Rules.

65

3. The aggregate of the amounts recoverable from the carrier, and such servants and agents, shall in no case exceed the limit provided for in these Rules.

66

4. Nevertheless, a servant or agent of the carrier shall not be entitled to avail himself of the provisions of this article, if it is proved that the damage resulted from an act or omission of the servant or agent done with intent to cause damage or recklessly and with knowledge that damage would probably result.

67

Article V

68

A carrier shall be at liberty to surrender in whole or in part all or any of his rights and immunities or to increase any of his responsibilities and obligations under these Rules, provided such surrender or increase shall be embodied in the bill of lading issued to the shipper. The provisions of these Rules shall not be applicable to charter parties, but if bills of lading are issued in the case of a ship under a charter party they shall comply with the terms of these Rules. Nothing in these Rules shall be held to prevent the insertion in a bill of lading of any lawful provision regarding general average.

69

Article VI

70

Notwithstanding the provisions of the preceding articles, a carrier, master or agent of the carrier and a shipper shall in regard to any particular goods be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities of the carrier in respect of such goods, or his obligation as to seaworthiness, so far as this stipulation is not contrary to public policy, or the care or diligence of his servants or agents in regard to the loading, handling, stowage, carriage, custody, care and discharge of the goods carried by sea, provided that in this case no bill of lading has been or shall be issued and that the terms agreed shall be embodied in a receipt which shall be a non-negotiable document and shall be marked as such.

71

An agreement so entered into shall have full legal effect.

72

Provided that this article shall not apply to ordinary commercial shipments made in the ordinary course of trade, but only to other shipments where the character or condition of the property to be carried or the circumstances, terms and conditions under which the carriage is to be performed are such as reasonably to justify a special agreement.

73

Article VII

74

Nothing herein contained shall prevent a carrier or a shipper from entering into any agreement, stipulation, condition, reservation or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to, or in connection with, the custody and care and handling of goods prior to the loading on, and subsequent to the discharge from, the ship on which the goods are carried by sea.

75

Article VIII

76

The provisions of these Rules shall not affect the rights and obligations of the carrier under any statute for the time being in force relating to the limitation of the liability of owners of sea-going vessels.

77

Article IX

78

These Rules shall not affect the provisions of any international Convention or national law governing liability for nuclear damage.

79

Article X

80

The provisions of these Rules shall apply to every bill of lading relating to the carriage of goods between ports in two different States if

81

(a) the bill of lading is issued in a contracting State, or

82

(b) the carriage is from a port in a contracting State, or

83

(c) the contract contained in or evidenced by the bill of lading provides that these Rules or legislation of any State giving effect to them are to govern the contract;

84

whatever may be the nationality of the ship, the carrier, the shipper, the consignee, or any other interested person.

85

(The last two paragraphs of this Article are not reproduced. They require contracting States to apply the Rules to bills of lading mentioned in the Article and authorise them to apply the Rules to other bills of lading).

86

(Article 11 to 16 of the International Convention for the unification of certain rules of law relating to bills of lading signed at Brussels on August 25, 1974 are not reproduced. They deal with the coming into force of the Convention, procedure for ratification, accession and denunciation and the right to call for a fresh conference to consider amendments to the Rules contained in the Convention).

11.

*ADDENDUM 1 * Home page B/L .

TERMS & CONDITIONS OF CARRIAGE

MULTIMODAL TRANSPORT BILL OF LADING

1. DEFINITIONS

Carriage means the whole or any part of the carriage, loading, unloading, storing, warehousing, handling and any and all other services whatsoever undertaken by the Carrier in relation to the Goods.Carrier the shipping companyContainer includes any container (including an open top container), flat rack, platform, trailer, transportable tank, pallet or any other similar article used to consolidate the Goods and any connected equipment.eight includes all charges payable to the Carrier in accordance with the applicable Tariff and this bill of lading.Goods means the whole or any part of the cargo and any packaging accepted from the Shipper and includes any Container not supplied by or on behalf of the Carrier.Hague Rules means the provisions of the International Convention for the Unification of Certain Rules relating to Bills of Lading signed at Brussels on 25th August 1924 1924 1968 and includes the amendments by the Protocol signed at Brussels on 23rd February 1968, but only if such amendments are compulsorily applicable to this bill of lading. (It is expressly provided that nothing in this bill of lading shall be construed as contractually applying the said Rules as amended by said Protocol).Holder means any Person for the time being in possession of this bill of lading to or in whom rights of suit and/or liability under this bill of lading have been transferred or vested. Merchant , , , includes the Shipper, Holder, Consignee, Receiver of the Goods, any Person owning or entitled to the possession the Goods or of this bill of lading and anyone acting on behalf of such Person.Multimodal Transport arises if the Place of Receipt and/or the Place of Delivery are indicated on the reverse hereof in the relevant spaces.Ocean Transport means the same as Port-to Port Shipment.Package where a Container is loaded with more than one package or unit, the packages or other shipping units enumerated on the reverse hereof as packed in such Container and entered in the box on the reverse hereof entitled Carriers Receipt are each deemed a Package.Person includes an individual, corporation, or other legal entity.Port-to-Port Shipment arises when the Carriage is not Multimodal.Subcontractor includes owners, charterers and operators of vessels (other than the Carrier), stevedores, terminal and groupage operators, road and rail transport operators, warehousemen and any independent contractors employed by the Carrier performing the Carriage and any direct or indirect Subcontractors, servants and agents thereof whether in direct contractual privity or not.Terms and Conditions means all terms, rights, defences, provisions, conditions, exceptions, limitations and liberties hereof.

COGSA means the US Carriage of Goods by Sea Act 1936.Vessel means any water borne craft used in the Carriage under this Bill of Lading which may be a feeder vessel or an ocean vessel.

2. CARRIERS TARIFF

The terms and conditions of the Carriers applicable Tariff are incorporated herein. Attention is drawn to the terms therein relating to free storage time and to container and vehicle demurrage or detention. Copies of the relevant provisions of the applicable Tariff are obtainable from the Carrier upon request. In the case of inconsistency between this bill of lading and the applicable Tariff, this bill of lading shall prevail.

3. WARRANTY

The Merchant warrants that in agreeing to the Terms and Conditions hereof he is, or has the authority to contract on behalf of, the Person owning or entitled to possession of the Goods and this bill of lading.

4. SUBCONTRACTING

4.1 The Carrier shall be entitled to sub-contract on any terms whatsoever the whole or any part of the Carriage.

4.2 The Merchant undertakes that no claim or allegation whether arising in contract, bailment, tort or otherwise shall be made against any servant, agent, or Subcontractor of the Carrier which imposes or attempts to impose upon any of them or any vessel owned or chartered by any of them any liability whatsoever in connection with the Goods or the Carriage of the Goods whether or not arising out of negligence on the part of such Person, and, if any such claim or allegation should nevertheless be made, to indemnify the Carrier against all consequences thereof. Without prejudice to the foregoing every such servant, agent, and Subcontractor shall have the benefit of all Terms and Conditions of whatsoever nature herein contained or otherwise benefiting the Carrier including clause 26 hereof, the law and jurisdiction clause, as if such Terms and Conditions (including clause 26

hereof) were expressly for their benefit and, in entering into this contract, the Carrier, to the extent of such Terms and Conditions, does so on its own behalf, and also as agent and trustee for such servants, agents and Subcontractors.

4.3 The provisions of the second sentence of clause 4.2 including but not limited to the undertaking of the Merchant contained therein, shall extend to all claims or allegations of whatsoever nature against other Persons chartering space on the carrying vessel.

4.4 The Merchant further undertakes that no claim or allegation in respect of the Goods shall be made against the Carrier by any Person other than in accordance with the Terms and Conditions of this bill of lading which imposes or attempts to impose upon the Carrier any liability whatsoever in connection with the Goods or the Carriage of the Goods, whether or not arising out of negligence on the part of the Carrier, and if any such claim or allegation should nevertheless be made, to indemnify the Carrier against all consequences thereof.

5. CARRIERS RESPONSIBILITY : PORT-TO-PORT SHIPMENT

5.1 Where the Carriage is Port-to-Port, then the liability (if any) of the Carrier for loss of or damage to the Goods occurring between the time of loading at the Port of Loading and the time of discharge at the Port of Discharge shall be determined in accordance with any national law making the Hague Rules compulsorily applicable to this bill of lading (which will be US COGSA for shipments to or from the United States of America) or in any other case in accordance with the Hague Rules Articles 1-8 inclusive only.

5.2 The Carrier shall have no liability whatsoever for any loss or damage to the Goods while in its actual or constructive possession before loading or after discharge, howsoever caused. Notwithstanding the above, in case and to the extent that any applicable compulsory law provides to the contrary, the Carrier shall have the benefit of every right, defence, limitation and liberty in the Hague Rules as applied by clause 5.1 during such additional compulsory period of responsibility, notwithstanding that the loss or damage did not occur at sea.

5.3 Where US COGSA Carriage of Goods by sea Act 1924 applies then the provisions stated in the said Act shall govern before loading on the vessel or after discharge therefrom, as the case may be, during Carriage to or from a container yard or container freight station in or immediately adjacent to the sea terminal at the Port of Loading and/or Discharge. If the Carrier is requested by the Merchant to procure Carriage by an inland carrier in the United States of America and the inland carrier in his discretion agrees to do so, such carriage shall be procured by the Carrier as agent only to the Merchant and such carriage shall be subject to the inland carriers contract and tariff. If for any reason the Carrier is denied the right to act as agent at these times, his liability for loss damage or delay to the Goods shall be determined in accordance with clause 6 hereof.

5.4 In the event that the Merchant requests the Carrier to deliver the Goods:

(a) at a port other than the Port of Discharge; or(b) (save in the United States of America) at a place of delivery instead of the Port of Discharge, and the Carrier in its absolute discretion agrees to such request, such further Carriage will be undertaken on the basis that the Terms and Conditions of this bill of lading are to apply to such Carriage as if the ultimate destination agreed with the Merchant had been entered on the reverse side of this bill of lading as the Port of Discharge or Place of Delivery.

6. CARRIERS RESPONSIBILITY - MULTIMODAL TRANSPORT

Where the Carriage is Multimodal Transport, the Carrier undertakes to perform and/or in his own name to procure performance of the Carriage from the Place of Receipt or the Port of Loading, whichever is applicable, to the Port of Discharge or the Place of Delivery, whichever is applicable, and, save as is otherwise provided for in this bill of lading, the Carrier shall be liable for loss or damage occurring during the Carriage only to the extent set out below:

6.1 Where the stage of Carriage where loss or damage occurred is not known.

(a) Exclusions The Carrier shall be relieved of liability for any loss or damage where such loss or damage was caused by:(i) an act or omission of the Merchant or Person acting on behalf of the Merchant other than the Carrier, his servant, agent or Subcontractor,(ii) compliance with instructions of any Person entitled to give them.(iii) insufficient or defective condition of packing or marks,(iv) handling, loading, stowage or unloading of the Goods by the Merchant or any Person acting on his behalf,(v) inherent vice of the Goods,(vi) strike, lock out, stoppage or restraint of labour, from whatever cause, whether partial or general,(vii) a nuclear incident,(viii) any cause or event which the Carrier could not avoid and the consequences whereof he could not prevent by the exercise of reasonable diligence.

(b) Burden of Proof ()- The burden of proof that the loss or damage was due to one or more of the causes or events specified in this clause 6.1 shall rest upon the Carrier. Save that if the Carrier establishes that, in the circumstances of the case, the loss or damage could be attributed to one or more of the causes or events specified in clause 6.1(a)(iii), (iv) or (v), it shall be presumed that it was so caused. The Merchant shall, however, be entitled to prove that the loss or damage was not, in fact, caused either wholly or partly by one or more of these causes or events.(c) Limitation of Liability Except as provided in clauses 7.2(a), (b) or 7.3, if clause 6.1 operates, total compensation shall under no circumstances whatsoever and howsoever arising

exceed USD 500 per package where Carriage includes Carriage to, from or through a port in the United States of America and in all other cases 2 SDR per kilo of the gross weight of the Goods lost or damaged.

6.2 Where the stage of Carriage where the loss or damage occurred is known.

Notwithstanding anything provided for in clause 6.1 and subject to clause 18, the liability of the Carrier in respect of such loss or damage shall be determined:(a) by the provisions contained in any international convention or national law which provisions:

(i) cannot be departed from by private contract to the detriment of the Merchant, and(ii) would have applied if the Merchant had made a separate and direct contract with the Carrier in respect of the particular stage of the Carriage during which the loss or damage occurred and received as evidence thereof any particular document which must be issued if such international convention or national law shall apply; or

(b) in case of shipments to or from the United States of America by the provisions of US COGSA if the loss or damage is known to have occurred during Carriage by sea to or from the USA or during Carriage to or from a container yard or container freight station in or immediately adjacent to the sea terminal at the Port of Loading or of Discharge in ports of the USA; or

(c) by the Hague Rules Articles 1-8 only inclusive where the provisions of clauses 6.2(a) or (b) do not apply if the loss or damage is known to have occurred during Carriage by sea; or(d) if the loss or damage is known to have occurred during Carriage inland in the USA, in accordance with the contract of carriage or tariffs of any inland carrier in whose custody the loss or damage occurred or, in the absence of such contract or tariff by the provisions of Clause 6.1, and in either case the law of the State of New York will apply; or(e) where the provisions of clause 6.2(a), (b), (c) and/or (d) above do not apply, in accordance with the contract of carriage or tariffs of any inland carrier in whose custody the loss or damage occurred or in the absence of such contract or tariff by the provisions of clause 6.1.For the purposes of clause 6.2 references in the Hague Rules to carriage by sea shall be deemed to include references to all waterborne Carriage and the Hague Rules shall be construed accordingly.

6.3 If the Place of Receipt or Place of Delivery is not named on the reverse hereof the Carrier shall be under no liability whatsoever for loss or damage to the Goods howsoever occurring:

(a) if the Place of Receipt is not named on the reverse hereof and such loss or damage arises prior to loading on to the vessel; or

(b) if the Place of Delivery is not named on the reverse hereof, if such loss or damage arises subsequent to discharge from the vessel, save that where US COGSA applies then the provisions stated in said Act shall govern before loading on to and after discharge from any vessel and during Carriage to or from a container yard or container freight station in or immediately adjacent to the sea terminal at the Port of Loading and/or Discharge.

6.4 Amendment of Place of DeliveryIn the event that the Merchant requests, and the Carrier agrees to amend the Place of Delivery, such amended Carriage will be undertaken on the basis that the Terms and Conditions of this bill of lading are to apply until the goods are delivered to the Merchant at such amended Place of Delivery.

7. COMPENSATION AND LIABILITY PROVISIONS Invoice value//CIF paid

7.1 Subject always to the Carriers right to limit liability as provided for herein, if the Carrier is liable for compensation in respect of loss of or damage to the Goods, such compensation shall be calculated by reference to the invoice value of the Goods plus Freight and insurance if paid. If there is no invoice value of the Goods or if any such invoice is not bona fide, such compensation shall be calculated by reference to the value of such Goods at the place and time they are delivered or should have been delivered to the Merchant. The value of the Goods shall be fixed according to the current market price, by reference to the normal value of goods of the same kind and/or quality.

7.2 Save as is provided in clause 7.3:

(a) Where the Hague Rules apply hereunder by national law by virtue of clause 5.1 or clause 6.2(a) the Carriers liability shall in no event exceed the amounts provided in the applicable national law. If the Hague Rules Article 1-8 only apply pursuant to clauses 5.1 or 6(c) the Carriers maximum liability shall in no event exceed GBP 100 per Package or unit.(b) Where Carriage includes Carriage to, from or through a port in the United States of America and US COGSA applies by virtue of clauses 5.1 or 6.2(b) neither the Carrier nor the Vessel shall in any event be or become liable in an amount exceeding US$500 per Package or customary freight unit.(c) In all other cases compensation shall not exceed the limitation of liability of 2 SDR per kilo as provided in clause 6.1(c).

7.3 The Merchant agrees and acknowledges that the Carrier has no knowledge of the value of the Goods and higher compensation than that provided for in this bill of lading may be claimed only when, with the consent of the Carrier, the value of the Goods declared by the Shipper upon delivery to the Carrier has been stated in the box marked Declared Value on the reverse of this bill of lading and extra freight paid. In that case, the amount of the declared value shall be substituted for the limits laid down in this bill of lading. Any partial loss or damage shall be adjusted pro rata on the basis of such declared value.

7.4 Nothing in this bill of lading shall operate to limit or deprive the Carrier of any statutory protection, defence, exception or limitation of liability authorised by any applicable laws, statutes or regulations of any country. The Carrier shall have the benefit of the said laws, statutes or regulations as if it were the owner of any carrying ship or vessel.

8. GENERAL

8.1 The Carrier does not undertake that the Goods or any documents relating thereto shall arrive or be available at any point or place at any stage during the Carriage or at the Port of Discharge or the Place of Delivery at any particular time or to meet any particular requirement of any licence, permission, sale contract, or credit of the Merchant or any market or use of the Goods and the Carrier shall under no circumstances whatsoever and howsoever arising be liable for any direct, indirect or consequential loss or damage caused by delay. If the Carrier should nevertheless be held legally liable for any such direct or indirect or consequential loss or damage caused by such alleged delay, such liability shall in no event exceed the Freight paid for the Carriage.

8.2 Save as is otherwise provided herein, the Carrier shall under no circumstances be liable for direct or indirect or consequential loss or damage arising from any other cause whatsoever or for loss of profits.

8.3 Once the Goods have been received by the Carrier for Carriage the Merchant shall not be entitled neither to impede, delay, suspend or stop or otherwise interfere with the Carriers intended manner of performance of the Carriage or the exercise of the liberties conferred by this bill of lading nor to instruct or require delivery of the Goods at other than the Port of Discharge or Place of Delivery named on the reverse hereof or such other Port or Place selected by the Carrier in the exercise of the liberties herein, for any reason whatsoever including but not limited to the exercise of any right of stoppage in transit conferred by the Merchants contract of sale or otherwise. The Merchant shall indemnify the Carrier against all claims, liabilities, loss, damages, costs, delay, attorney fees and/or expenses caused to the Carrier, his Subcontractors, servants or agents or to any other cargo or to the owner of such cargo during the Carriage arising or resulting from any stoppage (whether temporary or permanent) in the Carriage of the Goods whether at the request of the Merchant, or in consequence of any breach by the Merchant of this clause, or in consequence of any dispute whatsoever in respect of the Goods (including, but without restriction, disputes as to ownership, title, quality, quantity or description of and/or payment for the Goods) involving any one or more party defined herein as the Merchant as between themselves or with any third party other than the Carrier and the liberties provided for in clauses 19 and 20 shall be available to the Carrier in the event of any such stoppage.

8.4 The Terms and Conditions of this bill of lading shall govern the responsibility of the Carrier in connection with or arising out of the supplying of a Container to the Merchant whether before, during or after the Carriage.

9. NOTICE OF LOSS, TIME BAR

Unless notice of loss or damage and the general nature of such loss or damage be given in writing to the Carrier or his agents at the Place of Delivery (or Port of Discharge if no Place of Delivery is named on the reverse hereof) before or at the time of removal of the Goods into the custody of the Merchant or if the loss or damage is not apparent within three days thereafter, such removal shall be prima facie evidence of the delivery by the Carrier of the Goods as described in this bill of lading. In any event, the Carrier shall be discharged from all liability whatsoever in respect of the Goods unless suit is brought within one year after their delivery or the date when they should have been delivered.

10. DEFENCES AND LIMITS FOR THE CARRIER

The Terms and Conditions of whatever nature provided for in this bill of lading shall apply in any action against the Carrier for any loss or damage whatsoever and howsoever occurring (and, without restricting the generality of the foregoing, including delay, late delivery and/or delivery without surrender of this bill of lading) and whether the action be founded in contract, bailment or in tort and even if the loss or damage arose as a result of unseaworthiness, negligence or fundamental breach of contract

11. SHIPPER-PACKED CONTAINERS

If a Container has not been packed by the Carrier:

11.1 This bill of lading shall be a receipt only for such a Container;

11.2 The