GENERAL TERMS AND CONDITIONS OF THE INSURED TRANSPORT SERVICE

Dear Customers! Your cargo from/to a foreign country is 100% insured upon the transportation process starts. So you can focus on your business without worrying about your asset on the move.

With the purpose to provide professional logistic solutions to our customers, we still learn and increase values & productivity in our activities on daily basis even now we’re approaching to a milestone stage of 10^th anniversary.

Landbridge LLC has been, since its establishment, aiming to increase business benefits of its customers by solving their problems in international freight transport. Still loyal to this purpose, the company pioneered in the transport & logistics sector of Mongolia as introducing liability insurance in freight transport in 2011. In this year too, the company becomes the first to cover all the cargo of its freight forwarding clients with cargo insurance, by signing a cooperation agreement with KHAAN INSURANCE LLC.

This insurance will offer indemnification to the loss(es) occurred to the cargoes being transported from a foreign country to Mongolia, or from Mongolia to a foreign country during transportation, with the following general terms.

CARGO INSURANCE

• No additional charge applies
• Both risk and cost saving
• Boosts business efficiency
• “Insurance warranty” will be provided upon customer’s request

CARGO INSURANCE

• Invoiced amount of the cargo being transported
• Transport cost and additional cost

INSURED RISKS

• All kinds of natural disasters
• All sudden hazards, accidents
• Risk caused by loading & fastening
• Risk caused by breach of transport procedures
• Sink, turnover or pile up of ship
• Turnover or off-roading of a ground vehicle
• Sabotage or theft by third party
• Unloading at the port of accident
• For cargos on the platform to be hit by surge
• For vehicles to hit/contact with a foreign object (excluding water)
• Jettison: Jettisoning in order to keep balance of aircraft or ship
• General Average: Change of route in case of threatening to the safety of other cargo or ship under the current circumstance
• Earthquake, volcanic activities, lightning, fire, explosion
• Any loss occurred outside the ship while loading/unloading the cargo (only complete destruction)
• Water from ocean, lake, river or rain to seep through ship, aircraft, vehicle, container, storage or port etc.

NOT-INSURED CARGO

• Cash
• Domestic or wild animal
• Transport package, container
• Explosive material
• Illegal items

NO INDEMNITY SHALL BE GRANTED TO THE CARGO WHICH COMES THROUGH SEVERE & HIGH RISKY COUNTRIES

The countries classified as severe or high risk countries in the Watchlist, announced by Joint Cargo Committee (JCC)

Including: Eastern Africa, Western Africa, Central Africa, Southern Africa

Please see the following table for details.

 INSURANCE PERIOD, SELF-RESPONSIBILITY

• Insurance period shall continue from the starting point of the cargo transport to delivery to the recipient.

SELF RESPONSIBILITY

• Owner of the cargo shall bear a certain amount of own responsibility in case of insurance risk. First USD 300 of each loss shall be the owner’s responsibility while the remaining part of the loss shall be indemnified by the insurance.
• If a partial theft is confirmed, the insured party shall bear up to USD1000 and the insurer shall indemnify the remaining part of the loss.

TERMS TO GRANT INDEMNITY

• In case of an insurance risk to the cargo, an indemnification shall be accounted with the percent which specified the loss by insurance assessment.
• The indemnification amount less the self-responsible amount shall be paid to the customer.
• Maximum indemnification amount at once shall be MNT 1.5 billion.
• The indemnification shall be paid within 22 business days after the customer has fully provided the documents and materials in relation with the insurance risk.

DOCUMENTS REQUIRED TO INDEMNIFICATION

• Request, formal letter of Customer on indemnification of loss
• Photos and other evidences which proves the insurance case
• Act & reference by relevant authorized and professional organization on cause, scope and items of loss.
• Conclusion of an expert of the Mongolian National Chamber of Trade and Industry
• Other necessary documents (references and conclusions from Police, National Emergency Management Agency, Court, Prosecutor Office, Investigation Agency, relevant administrative unit etc.)

NO INDEMNITY SHALL BE PROVIDED IN THE FOLLOWING CASES

• The necessary documents have not been collected and submitted within 22 business days after the insurance case is recorded
• It’s not possible to confirm occurrence of the insurance case
• Loss, defect or damage occurred due to an intentional action or natural properties of the goods such as normal wear & tear of goods, evaporation etc.
• Economic loss occurred to the goods
• Cost of restoration of the insurance item without making agreement with the insurance organization
• Loss occurred to transportation package and/or container.