The American Institute of Marine Underwriters (AIMU) has revised the association’s cargo clauses for the first time since 1966.
AIMU chairman David French said the revisions would make the forms more consistent with modern usage. The revisions were approved by AIMU’s board of directors at a meeting held April 28 in San Francisco.
With the proliferation of individual company forms over the years, it is hoped that these clauses can establish a standard form of reference when referring to different types of basic cargo coverage, he said.
“The clauses may prove helpful in defining terms in regards to coverage based on the consensus of leading underwriters in the industry,” French said.
Four forms were created providing the needed protection for the insured. They are: All Risks; Free of Particular Average – American Conditions; Free of Particular Average – English Conditions; and With Average.
An ocean marine cargo policy is a contract between the insured and the insurance company which provides automatic protection on all shipments coming within the contract coverage. Cargo clauses are the insuring agreements in a cargo policy.
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