__________________________________________Insurance Co., Ltd.
ADDRESS :                                                               TLX :
                                                                FAX :
                                                                TEL :

OPEN POLICY OF MARINE CARGO INSURANCE
                                                                                           

                                
WE, _______________________________________ INSURANCE COMPANY, LIMITED.
(hereunder called the Company) hereby agree, in consideration of the payment to us by or on behalf of the Assured of the premium specified in the Schedule, to insure against loss damage liability or expense in the manner hereinafter provided.

IN WITNESS whereof the undersigned, acting on behalf of and under the authority of the Company, has subscribed his name.

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                                                                Authorized signature

Policy No.                           Dated                        

Name of Assured:

This insurance is subject to English jurisdiction.

 
SCHEDULE ATTACHING TO AND FORMING PART OF OPEN POLICY NO               
                                                          

1.      ASSURED                 :

2.      PERIOD OF INSURANCE   :

3.      SUBJECT MATTER  :
        INSURED (INTEREST)

4.      BASIS OF VALUATION    :

5.      VOYAGE                  :

6.      CONVEYANCE              :

7.      LIMITS OF LIABILITY    :

8.      CONDITION               :

        this insurance covers the risks of loss or damage to the subject-matter insured as provided in the following:-

INSTITUTE STANDARD CONDITIONS FOR CARGO CONTRACTS

Any shipments that would be covered hereunder but for the provisions of the Institute Classification Clause are held covered at an additional premium to be agreed; and the terms of such Institute Classification Clause shall not prejudice any claim hereunder, when presentation of the advice of such claim to Underwriters is the first indication that a transhipment, beyond the control of the Assured, has been made by a vessel which is not covered within the appropriate additional premium is paid as soon as practicable thereafter.

 
ALTERNATIVE CONDITIONS:

Where required because of stipulations within a letter of credit it is agreed to issue certificates subject to the following conditions and in conjunction with the SG Form policy.

9.      DEDUCTIBLES             :

10.     RATES/PREMIUMS  :

11.     PROFIT COMMISSION    :

12.     OTHER TERMS AND CONDITIONS    :

13.     CLAIM, IF ANY, PAYABLE AT/IN    :

All other than the above shall be arranged in each case prior to the attachment of risk.

 
OPEN POLICY OF MARINE CARGO INSURANCE

This Policy is to insure the subject matter specified for the transits and on the conditions named shipped by or for account of the Assured or the insurance of which is under their control as selling or purchasing agent unless insured elsewhere prior to inception of this contract or to insurable interest being acquired.

This Policy does not cover the interest of any other person, but this shall not prevent a transfer of the insurance by the Assured or Assignee.

It is a condition of this Policy that the Assured are bound to declare hereunder every consignment without exception the Company being bound to accept up to but not exceeding the amount specified herein.

Subject to written notice of cancellation by either the Company or the Assured as follows:-

MARINE AND/OR TRANSIT AND/OR STORAGE RISKS 30 DAYS)WAR RISKS STRIKES, RIOTS AND CIVIL COMMOTIONS RISKS               7 DAYS) from midnight
but                                                                             )  of the day
STRIKES, RIOTS AND CIVIL COMMOTIONS RISKS in                    )  notice of
respect of shipments and/or sendings to and/or                                  ) cancellation
from the United Stated of America (if any)                            48 HOURS  )  is issued.

This insurance does not cover any loss or damage to the property which at the time of the happening of such loss or damage is insured by or would but for the existence of this Policy be insured by any fire or other insurance policy or policies except in respect of any excess beyond the amount which would have been payable under fire or other insurance policy or policies had this insurance not been effected.

PARAMOUNT WARRANTIES

1.      Warranted free of capture, seizure, arrest restraint or detainment, and the consequences there of or of any attempt thereat; also from the consequences of hostilities or warlike operations, whether there be a declaration of war or not; but this warranty shall not exclude collision, contact with any fixed or floating object (other than a mine or torpedo), stranding, heavy weather or fire unless caused directly (and independently of the nature of the voyage or service which the vessel concerned or, in the case of a collision, any other vessel involved therein, is performing) by a hostile act by or against a belligerent power; and for the purpose of this warranty power includes any authority maintaining naval, military or air force in association with a power.
        Further warranted free from the consequences of civil war, revolution, rebellion, insurrection, or civil strike arising there from, or piracy.
2.      Warranted free of loss or damage
        (a)     caused by strikes, locked-out workmen, or persons taking part in labour disturbances,     riots or civil commotions;
        (b)     resulting from strikes, lock-outs, labour disturbances, riots or civil commotions.

3.      (a)     Should the risks excluded by Clause 1 (F.C  &  F. Clause) be reinstated in this Policy    by deletion of the said Clause, or should the risks or any of them mentioned in that clause or the risks of mines, bombs or other engines of war be insured under this Policy, Clause (b) below shall become operative and anying contained in this contract which is inconsistent with Clause (b) or which affords more extensive protection against the aforesaid risks than that afforded by the Institute War Clauses relevant to the particular form of transit  covered by this insurance is null and void.
        (b)     This policy is warranted free of any claim based upon loss or, or frustration of, the insured voyage or adventure caused by arrests restraints or detainments of Kings Princes Peoples Usurpers or persons attempting to usurp power.

INSTITUTE RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE

This clause shall paramount and shall override anything contained in this insurance inconsistence therewith.
1.      In no case shall this insurance cover loss damage Liability or expense directly or indirectly caused by or contributed to by or arising from
        1.1     ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any unclear waste or from the combustion of unclear fuel
        1.2     the radioactive, toxic, explosive or other hazardous or contamination  properties of any unclear installation, reactor or other unclear assembly or unclear component thereof.
        1.3     any weapon of war employing atomic or unclear and/or fusion or other like reaction or radioactive force or matter.

INSTITUTE DANGEROUS DRUGS CLAUSE

It is understood and agreed that no claim under this Policy will be paid in respect of drugs to which the various International Conventions relating Opium and other dangerous drugs apply unless
        (1)     the drugs shall be expressly declared as such in the policy and the name of the country form which, and the name of the country to which they are consigned shall be specifically stated in the policy
        (2)     the proof of loss is accompanied either by a licence, certificate or authorization issued by the Government of the country to which the drugs are consigned showing that the importation of the consignment into that country has been approved by that Government, or, alternatively, by a  licence, certificate or authorization issued by the Government of the country from which the drugs are consigned showing that the export of  the consignment to the destination stated has been approved by that Government:
                and
        (3)     the route by which the drugs were conveyed was usual and customary.
 
GENERAL CONDITIONS

1.      DECLARATION

It is a condition of this insurance that the Assured is bound to declared to this Company as soon as practicable after becoming known to the Assured (unless otherwise agreed) each and every shipment covered by this Policy, whether arrived or not, advising all the requisite particulars of the shipment as follow:
        (a)     Insured Interest (description, quantities, marks and numbers)
        (b)     Insured Value and Insured Amount
        (c)     Voyage
        (d)     Name and Sailing Date of Conveyance
        (e)     Conditions of Insurance
        (f)     Date of Risk Attachment

Against such declaration, this Company shall issue a policy or certificate of insurance which is necessary for the Assured to make a claim against this Company for any loss or damage happening to the insured interest.
If certificates and/or policies of insurance have been issued, as per below Clause 2, copies thereof should be attached to the declaration.
This Company being bound to accept such declarations up to but not exceeding the limits agreed and subject to all its terms and conditions in this policy.

2.      INSURANCE OF CERTIFICATES

Privilege can be granted to the Assured, in the manner and to the extension to be agreed between the Assured  and this Company, to issue and countersign this Company certificates or policies of insurance for any or all risks certificate or policy of insurance shall be valid unless countersigned by an authorized representative of the Assured. The Assured agrees to forward copies of all certificates and/or policies in this Clause 2 to this Company as soon as practicable.

Each and every certificate or policy of insurance issued under this Open Policy is subject to the terms and conditions of this Open Policy, whether expressly so stated in the certificate or policy of insurance or not. unless otherwise specially agreed by this Company.

3.      ERRORS AND OMISSIONS
 
This insurance shall not be prejudiced by any unintentional error, omission or delay in remittance of copies of policies and/or certificates and/or declarations or by any unintentional error in the amount or the description of the interest, vessel or voyage or if the goods insured
be shipped by another vessel or conveyance; provided prompt notice be given this Company as soon as said facts become known to the Assured.

4.      INSPECTION OF REGARDS
  
This Company, or its agent, shall have the privilege at any time during business hours to inspect the records of the Assured as respects shipments coming with the terms of the Policy. This privilege expires twelve(12) months after final termination of the policy.

5.      PAYMENT OF PREMIUM

Premium shall be paid monthly by the Assured to this Company(unless otherwise agreed) immediately after receipt of the monthly statement of account from this Company or, at latest, within ten days from the day which the above statement of account is received by the Assured in case of the failure of immediate payment for some justifiable reason.

The rate of exchange for  converting the premium in foreign currency into Korean Won is agreed to be the closing T.T. Selling rate quoted _______________by on the day which this Company has accepted declarations from the Assured.

6.      PAYMENT OF CLAIM

Should the Assured be exempted, as a result of any loss or accident whether caused by the perils insured against or not during the currency of insurance, from paying freight and/or charges or any part thereof, which are included in the insured value, the settlement of claim shall be made on the basis of the amount which is equivalent to the insured value with the deduction of freight and/or charges so saved.

In case the payment of claim is to be made abroad, the amount of claim shall be paid in the foreign currency stated in the policy or certificate of insurance issued under this Open Policy.

In case of any claim payable in Korea, the amount of claim in the foreign currency in which the declaration has been made shall be converted into Korean Won at the closing T.T. selling rate quoted by _____________on the day of settlement of a claim.

In the event of loss or damage arising under this Open Policy, no claims shall be admitted unless a survey has been held with the approval of this Company, office of Agents specified in this policy.

No claim for loss by theft and/or pilferage shall be paid hereunder unless notice or survey has been given to this Company's Agent specified in this Policy within 30 days of the expiry of this insurance.

It is agreed that claims of up to US$2,500 (or equivalent in other currencies) will be settled on the written statement of the Assured together with relevant documentation without survey.
  

7.      LIMIT OF LIABILITY

Notwithstanding anything to the contrary contained in this Open Policy, this Company shall not be liable, in respect of all losses of and/or damages to and/or sue and labour and other charges for the insured interests loaded and/or to be loaded on any one conveyance or in any one place at any one time, for more than the limit(s) specified in the attached of the risk or before any known or reported loss or accident, for the increase of such limit (s) and the special agreement thereto of this Company is obtained.

If total value at risk exceeds the limit of liability provided, the Assured shall nevertheless report the full amount at risk to this Company any shall pay full premium thereon, in consideration of which the principle premium by this Company shall not alter or increase the limit of liability of this Company.

8.      ALTERATION
 
This Company reserves the right to alter rates and/or conditions and/or other items contained in this Open Policy by giving a thirty(30) days previous notice in writing to the Assured. Such alteration shall become effective on the expiry of thirty(30) days counting from midnight of the day on which such notice is given by this Company, but it shall no apply to any shipment by the vessel which shall have sailed from the port of loading before such alteration becomes effective.

Nothing in this clause, however, shall affect the war and S.R.C.C. risks to be covered under this Open Policy, which shall be subject to the respective Cancellation clauses contained in this Open Policy.

9.      DURATION

This Open Policy shall continue to remain in force until it shall be cancelled by either party giving to the other a thirty(30) days' previous notice in writing of the intention to determine (unless otherwise agreed).

Such cancellation shall become effective on the expiry of thirty(30) days counting from midnight of the day on which such notice is given by or to this Company, but it shall not apply to any shipment to which the risk shall have attached before such cancellation become effective.

10.     PROFIT COMMISSION
 
If coverage is continued at anniversary with this Company for a further term of not less than 12 months, this Company agree to allow a profit  Commission of percent (   %) such profit Commission to be calculated at the end of the present term and after all liability has expiry.

 
The Profit Commission shall be based on the net ascertained profit computed as follows:

                 INCOME                         LESS                  OUTGO

       Sixty percent (60%) of   all paid claims and outstanding
       the Gross premium                claim including claim expenses
       after deduction of               occurring on shipments made
       all return premium               during this Policy year, less
       during this policy year          salvage and recoveries.

If there is a deficit relating to the previous year, such deficit shall be carried forward to the current term but a deficit produced in any one policy period shall no be carried over for more than two consecutive years.

 
CERTIFICATE OF MARINE CARGO INSURANCE
__________________________________________________________________________________________  
Certificate No.

This is to certify that the Assured are insured under and subject to the conditions of Open Policy No.____________ of the ____________________________________________INSURANCE CO.,LTD and that the Assured is entitled to declare to the said Open Policy the shipments attaching thereto.

Assured :
Claims, if any, payable at :            Ref.No.
  Claims are payable in the
Survey should be a proved by  :        Amount insured
Ship or Vessel called the              Conditions;
Sailing or on about
at and from
arrived at                   Institute Radioactive Contamination Exclusion Clause
                             Other conditions as per Open Policy
goods and merchandises
    Marks and Numbers as per Invoice No. specified above
place and Date signed in                No.  of  Certificates issued

This Certificate represents and takes the place of the Policy and conveys all rights of the original policy-holder (for the purpose of collectioning any loss or claim) as fully as if the property was covered by a Open Policy direct to the holder of this Certificate.

This Company agrees losses, if any, shall by payable to the order of Assured on surrender of this Certificate.

Settlement under one copy shall render all others null and void.

Contrary to the wording of this form, this insurance is governed by the standard form of English Marine Insurance Policy.

in the event of loss or damage arising under this insurance, no claims will be admitted unless a survey has been held with the approval of this Company's office
or Agents specified in this Certificate
           SEE IMPORTANT INSTRUCTIONS ON REVERSE
                     INSURANCE CO.,LTD

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                                                            Authorized Signatory
This Certificate is not valid unless the Declaration be signed by an authorized representative of the Assured.
                                                     Signed Date
IMPORTANT
PROCEDURE IN THE EVENT OF LOSS OR DAMAGE FOR WHICH
UNDERWRITERS MAY BE LIABLE
LIABILITY FOR CARRIERS, BAILEES OR OTHER THIRD PARTIES

It is the duty of the Assured and their Agents, in all cases, to take such measures as may be reasonable for the purpose of averting or minimising a loss and to ensure that all rights against Carriers, Bailees or other third parties are properly preserved and exercised.
In particular, the Assured or their Agents are required :
1.      To claim immediately on the Carriers, port Authorities or other Bailees for any missing package.
2.      In no circumstances except under written protest, to give clean receipts where goods are in doubtful condition.
3.      When delivery is made by Container, to ensure that the Container and its seals are examined immediately by their responsible official.
        If the Container is delivered damaged or with seals broken or missing or with seals other than as stated in the shipping documents, to clause the delivery receipt accordingly and retain all defective or irregular seals for subsequent identification.
4.      To apply immediately for survey by Carriers' or other Bailees' Representatives if any loss or damage be apparent and claim on the Carriers or other Bailees for any actual loss or damage found at such survey
5.      To give notice in writing to the Carriers or other Bailees within 3 days of delivery if the loss or damage was not apparent at the time of taking delivery.
NOTE : The Consignees or their Agents are recommended to make themselves familiar with the Regulations of the Port Authorities at the port of discharge.

INSTRUCTIONS FOR SURVEY

In the event of loss or damage which may involve a claim under this insurance, immediate notice of such loss or damage should be given to and a Survey Report obtained from this Company's Office or Agent specified in this Policy or Certificate.

DOCUMENTATION OF CLAIMS

To enable claims to be dealt with promptly, the Assured or their Agents are advised to submit all available supporting documents without delay, including when applicable.
1.      Original policy or certificate of insurance.
2.      Original or certified copy of shipping invoices, together with shipping specification and/or weight notes.
3.      Original certified copy of Bill of Landing and/or other contract of carriage
4.      Survey report or other documentary evidence to show the extent of the loss or damage.
5.      Landing account and weigh notes at port of discharge and final destination
6.      Correspondence exchange with the Carriers and other Parties regarding their Liability for the loss or damage.