11 Basis of Contribution
i
Before the commencement of a Policy Year the Directors shall determine whether there shall be a general increase in the premium rating of all Members and if so its amount.
ii
At the beginning of each policy year the Managers shall, unless the entry has been accepted upon special terms which otherwise provide, agree the Mutual Premium in respect of the relevant ship to be paid by a Member taking into account any general increase determined by the Directors and all other matters which the Managers may consider relevant.
iii
Such Mutual Premium shall be levied on and paid by the Member during the relevant Policy Year and in such subsequent years and in such instalments as the Directors may from time to time determine.
iv
A ship entered in the course of a Policy Year shall pay a daily pro-rata proportion of the Mutual Premium to the beginning of the next policy year.
v
The Managers may require a vessel to contribute to Mutual Premium on a minimum tonnage.
vi
Ships entered upon terms that any of the risks specified in the Rules are excluded may receive such rebate of Mutual Premium as may be agreed by the Managers at the time such exclusions take effect.
vii
If, at any time before the final instalment of Mutual Premium in respect of a policy year has become payable, it shall appear to the Directors unlikely that the whole of such Mutual Premium is required for the purposes set out in Rule 10:
a
the Directors may resolve to reduce the amount of Mutual Premium payable in respect of that Policy Year; and
b
the liability of a Member under paragraph ii of this Rule to pay Mutual Premium shall be reduced accordingly.
viii
In the event of any Member making default in payment of any contribution due from it to the Club, the same shall (subject to the provisions as to any entries on special terms) be paid by such of the other Members entered rateably in proportion to the contributions last due from them respectively and payment may be enforced by the Club. Each Member who may for the time being be entitled to receive from the Club any payment in respect of any loss, claim or demand, shall bear and contribute to the proportion thereof due in respect of any ship or ships entered by it, including the ship in respect of which the loss, claim or demand arises.
12 Additional Premium
At any time or times during or after the end of each Policy Year (but not after such Policy Year has been closed) the Directors may decide to levy from the Members who have or have had ships entered for insurance in respect of that year, unless its entry has been accepted upon special terms which otherwise provide, one or more Additional Premiums. Such Additional Premium or Premiums shall be paid by each Member, at such time or times and at such rate or at such percentage of the Mutual Premium already paid as the Directors may decide.
13 Proration of Premium
A Member shall be liable for contribution in respect of an entered ship to the premiums levied by the Club for the current Policy Year pro rata only to the period beginning with that Policy Year and ending at noon on the day upon which the ship was legally transferred by bill of sale or other formal document whereby the ownership was legally transferred, provided that notice in writing is given to the Managers within one month after the happening of that event.
14 Period of Cover
i
The cover afforded by the Club shall begin at the time stated in the Certificate of Entry for the commencement of the cover and continue until noon of 20 February next following (unless otherwise agreed at the time of entry).
ii
Save where the Club has exercised any right to terminate an entry as otherwise provided in these Rules, the cover shall continue from Policy Year to Policy Year unless:
a
notice shall have been given in writing by either the Member to the Managers or the Managers to the Member not later than noon GMT on 20 December in any year, that the insurance specified in the notice is to cease, in either of which events the insurance shall cease at the end of the then current Policy Year; or
b
the Managers shall have given notice at any time before noon GMT on 20 February that the terms of the insurance by the Club for the next Policy Year relating to premium and/or deductibles are to be changed including any general increase in premium, in which event, unless terms are agreed between the Member and the Managers before noon GMT on 20 February immediately following such notice, the insurance shall thereupon cease; or
c
the Managers by 30 days notice in writing to a Member at any time terminate the entry in respect of any ship.
iii
An entered ship shall not be withdrawn from the Club at any other time or in any other manner except with the consent of the Directors.
15 Release Calls
i
Upon the entry of a Member ceasing in respect of an entered Ship, the Managers may demand, at any time in their absolute discretion after the date of the said cessation of entry, an amount to release the Member from liability for further mutual and/or additional premium in respect of the said ship, other than Overspill Calls. The Directors may at their sole and absolute discretion lay down or revise from time to time terms as to levying of release calls and the said amount shall be assessed in accordance with those terms. The amount assessed shall be immediately payable by the Member on demand to the Managers without deduction or set off. However, the Managers may, in their absolute discretion at any time accept a guarantee, including a guarantee or other security required by the Managers in replacement for one already provided:
(i) In an amount;
(ii) In a form; and
(iii) From a bank,
approved by the Managers, to be provided within such period as specified by them to secure payment of such instalments of mutual and/or additional premium as may be levied in respect of the said ship until each of the years in which the ship was entered in the Club has been closed. The provision of such guarantee, or any replacement guarantee or other security required by the Managers on their approved terms, shall not release the Member from any liability in respect of Overspill Calls.
ii
In the event that the release call assessed is paid in full on demand, the Member shall be released from any liability for any further mutual and/or additional premium in respect of the said ship which may be levied after the date of the said assessment, other than in respect of Overspill Calls, but shall not be entitled to participate in any subsequent return of premium.
iii
The Managers may demand such additional amounts as may be chargeable in accordance with any revision of the terms laid down by the Directors as they may from time to time determine in accordance with their powers under this Rule:
a
If the amount previously assessed, or any part thereof, has not already been paid on demand;
b
If any guarantee has not been provided in accordance with the terms approved by the Managers;
c
Where a guarantee has been provided under paragraph i above as hereinbefore set out, save that the outstanding amount of that security shall be deducted from any additional amount assessed and the Managers shall be entitled to demand immediate payment of the balance due or, in their absolute discretion, increased and/or replacement security in respect of the same. The provisions of paragraph i above shall apply in like manner to the granting of any increased or replacement security to the Managers.
iv
Unless and until:
a
any amounts due in accordance with this Rule are paid; and/or
b
a guarantee is provided in accordance with the terms approved by the Managers, the Managers shall be entitled to take such action as they see fit to recover the amounts due and/or enforce any agreement for the provision of a guarantee in respect of the same, including but not limited to appropriating or withholding any sums whatsoever due from the Club to the Member as shall be sufficient in the opinion of the Managers to pay and/or secure that Member’s liability for existing or future premium.
v
Nothing in the provisions of this Rule shall prevent the Managers from imposing such other terms and conditions as in their sole and absolute discretion they see fit in respect of the release of a Member from liability to pay further premium as it falls due.
