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A Danish tobacco wholesaler took out a cargo insurance policy with the assistance of an insurance broker that included "tobacco transport" with an insurance sum of Dkr20 million. The policy was issued on Danish Extended Conditions (UDB, which are based on and similar to the Institute Cargo Clauses (A) conditions) with a Scandinavian insurer. Under Section 7 of the UDB, insurance cover commences when the "insured item is lifted or moved into building or storage at the point of departure and this is done in direct connection with the loading onto or into the means of transport used to immediately commence the transport".
