The below is a summary of key terms of the Wine Ark special lnsurance Policy held by the National
Storage group and is intended to be provided to Wine Ark Managed Cellarage customers to assist in
understanding the insurance coverage held by Wine Ark which will cover wine stored by Wine Ark
Managed Cellarage customers. Should customers have any further questions in relation to the
insurance policy, they can contact Arthur J Gallagher at [email protected].

Type of Policy: Specie (Wine) Policy which includes All Risks of Physical Loss or Damage

Period: Expiry of Storage Agreement

Interest: Bottled Wine / Spirits in storage owned by the Insured and/or for which the Insured
is responsible to insure.

Sum Insured: At Wine Ark premises as per the amount declared to Wine Ark

Cover: The property stored at Wine Ark locations which is notified to the insurer is insured
against physical loss or physical damage occurring during the period of insurance
while at the named locations or while in transit within the territorial limits specified
in the Schedule, subject to the following exclusions, basis of settlement and

The underwriters are only liable to the extent that any other valid insurance would
fail to cover any claim if this insurance had not been issued.

Basis of Settlement: The basis of settlement will be:

a) Current Release Wine:

Where a wine is of current vintage and available from a wholesale source the
replacement value is based upon the wholesale price. However should the wine be
available only from a retail source the replacement value is based upon the
recommended retail price. Should the wine be no longer available from wholesale or
retail services, the replacement value is the original purchase price.b) Recent Vintages:
When the vintage is no longer available from the distributor or winery the
replacement value has been based upon retail value.

c) Older Vintages:

(i) When the vintage is no longer available from either a wholesale or retail
source the replacement value will be based upon the latest available auction
(ii)Where the last available auction price is more than 2 year old,
replacement value will be based upon the last available auction price
indexed according to Australian Consumer Price Index but not exceeding last
available auction price plus 20%.
In both instances (i) and (ii), the replacement value thus determined will be adjusted
by discounts and charges (including handling and storage costs and other overheads)
to which the wine would have been subject had there been no damage. The
resulting amount will be adjusted to reflect its net present value at the time of the
loss or damage

d) Labels, Containers and Wrapping:

In the event of Damage affecting the labels or wrapping, the insurer shall be liable
for an amount sufficient to pay the costs of a new label or wrappings, and the cost of
reconditioning the goods, but in no case shall the insurer be liable for more than the
sum representing the cost which the insurer could have been called upon to pay if
the merchandise had been totally destroyed.

e) Magnums:

Where magnums are not available through any other documented source the
replacement value is based upon standard bottles plus a premium of 35%.
Key Exclusions:
1. Mysterious disappearance or unexplained loss
2. Loss or shortage discovered while taking inventory
3. Consequential loss of any kind
4. Loss or Damage caused by or resulting from:

i) natural ageing, gradual deterioration, inherent defect, rust or oxidation, moth, vermin or
corkfly, warping, shrinkage or ullage;
ii) any process or manufacture, modification or repair including recorking;
iii) aridity, humidity, exposure to light or extremes of temperature unless such loss or
damage is caused by frost or fire.

5. Any loss, damage, cost or expense whatsoever which arises whether directly or indirectly
from any kind of seepage or any kind of pollution and/or contamination.

Key Conditions:
Notice and proof of loss:
In the event of loss or damage that may give rise to a claim under this insurance notice is to
be given to the insured’s broker or agent as soon as reasonably possible, and in any event no
later than 90 days after the expiration of the policy period, and to the police if a crime is
In the event of loss or damage to the insured property the insured must give the
underwriters such relevant information and evidence as may reasonably be required and cooperate fully in the investigation or adjustment of any claim. If required by the underwriters
the insured must submit to examination under oath by any person designated by the

Insurer: Certain Underwriters at Lloyds of London