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Continuity of Cover under Cargo Protect: Case Study - Typhoon Jebi - Japan

When major weather events like the recent Typhoon Jebi (Japan) disrupt trade and transport links, cargo owners/shippers trading to or from the impacted area have cause for concern around whether their cargo remains covered during the period of disruption.

Most import/export Marine Insurance policies issued in Australia should have, as the base cover, the internationally recognised Institute Cargo Clauses (A) 1.1.09 (ICC A 1.1.09), or their specialist commodity derivatives.

These clauses are designed with maritime event disruptions in mind - just like Typhoon Jebi. The below information offers a brief description of the cover provided, as well as some useful follow-up actions:

The cover provided under Marine Protect insurance includes conditions of cover that address delay and termination of transit before the delivery port, or change of voyage where the destination is altered during the shipment:

  • Delay
    Shipment delays can occur with the restriction of access to port facilities following major weather events.
  • Termination
    A shipping contract (contract of carriage) may allow the ship to terminate the contract/voyage at an interim port or at the destination - but prior to unloading. This situation may arise where the ship does not wish to sail into port facilities experiencing major disruption or delay.

Note: cover will automatically terminate unless an intermediary proactively requests cover be maintained (i.e prompt notice is given to nti and continuation of cover is requested). An additional premium may be required.

Once nti has been advised, cover will continue until the goods are sold - within a period of up to 60 days or otherwise agreed, or within the same 60 days the goods are forwarded to the contracted destination when the provisions of Clause 8 of ICC A 1.1.09 prevail.

Advise nti as soon as you become aware of a termination of the contract of carriage. Monitor and comply with any period limitation – and advise nti if an extension is required.

Change of Voyage 
If you’re required to change the destination of goods after attachment of cover (e.g. to avoiding the area impacted by Typhoon Jebi), you should advise nti as soon as possible - including details of the new destination/voyage. Amended terms may apply.

Forwarding Charges 
This includes cover for reimbursement of extra charges to unload, store and forward the goods to final destination insured, when the transit is terminated before the final contracted destination, and as a result of a risk covered.

Advise nti of the details of any event likely to be covered by the policy and retain documentation to support any claim for extra charges.

In all claim, incident or event circumstances
Ensure all reasonable measures are taken to protect goods. Promptly and formally (i.e. In writing) hold third parties accountable for any loss, damage or expense.

Customers or intermediaries needing to make further arrangements for policy cover under nti's Cargo Protect Insurance should contact nti via the nti Marine Team or your nti Business Development Manager to find out more.

Customers or intermediaries needing to make a claim under nti's Cargo Protect Insurance should contact nti directly to speak to one of our dedicated Marine Protect claims experts below, or Call NTI Accident Assist (1800 NTI NOW or 1800 684 699). This will enable claims to be actioned as quickly as possible.

Mike Sullivan
National Manager – Marine Claims
Ph: 03 9860 5649

Gunna Sinniah
Specialist – Marine Claims
Ph: 02 8227 7771

Juha Vuorinen
Specialist – Marine Claims
Ph: 02 8227 7771

Article contributor

Mike Sullivan
National Manager Marine Claims

Mike Sullivan is the NTI's National Manager, Marine Claims. Mike came to us from CGU and has over 35 years of experience.