21 War Risks
Unless otherwise agreed in writing with the Managers on such terms as they may require, there shall be no recovery from the Club in respect of a Member’s liabilities, costs or expenses (irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the Member or on the part of the Member’s servants or agents) when the incident in respect of which such liability arises, or such costs or expenses are incurred, was caused by:
i
war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power or any act of terrorism;
ii
capture, seizure, arrest, restraint or detainment (barratry or piracy excepted) and the consequences thereof or any attempt thereat;
iii
mines, torpedoes, bombs, rockets, shells, explosives or other similar weapons of war, save for those liabilities, costs or expenses which arise solely by reason of:
a
the transport of any such weapons whether on board the entered ship or not, or
b
the use of any such weapons either as a result of Government order or through compliance with a written direction given by the Managers or Directors where the reason for such use was the avoidance or mitigation of liabilities, costs or expenses which would otherwise fall within the cover of the Club.
In the event of any dispute as to whether or not any act constitutes an act of terrorism, the decision of the Directors shall be final.
Provided always that:
(i) notwithstanding the exclusion of cover in Rules 20 and 21, the Club shall discharge and pay on behalf of the Owner liabilities, costs and expenses pursuant to a demand made under:
(a) a guarantee or other undertaking given by the Club to the Federal Maritime Commission under Section 2 of US Public Law 89-777; or
(b) a certificate issued by the Club in compliance with Article VII of the International Conventions on Civil Liability for Oil Pollution Damage 1969 and 1992 or any amendments thereof; or
(c) an undertaking given by the Club to the International Oil Compensation Fund 1992 in connection with the Small Tanker Oil Pollution Indemnification Agreement (STOPIA); or, except where such liabilities, costs and expenses arise from or are caused by an act of terrorism, the Tanker Oil Pollution Indemnification Agreement (TOPIA); including any addendum to, or variation or replacement of such Agreements, or
(d) a certificate issued by the Club in accordance with Article 7 of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001;
(ii) where any such guarantee, undertaking or certificate is provided by the Club on behalf of the Owner as guarantor or otherwise, the Owner agrees that:
(a) any payment by the Club under any guarantee, undertaking or certificate referred to in proviso (i) (a), (b), (c) and (d) above in discharge of the said liabilities, costs and expenses shall, to the extent of any amount recovered under any policy of insurance or extension to the cover provided by the Association, be by way of loan; and (b) there shall be assigned to the Club, to the extent and on the terms that the Managers determine in their discretion to be practicable, all the rights of the Owner under any such other insurance and against any third party; and (c) unless the Managers shall otherwise determine, the Owner shall indemnify the Club to the extent that any payment under any guarantee, undertaking or certificate referred to in proviso (i) (a), (b), (c) or (d) above in discharge of the said liabilities, costs and expenses is or would have been recoverable under a standard P&I war risk policy of insurance, had the Owner complied with all the terms and conditions thereof, under which the vessel shall be deemed to be insured without deductible for its full value.22 Equipment and Freight and other risks
The Club shall not under any circumstances, save only those provided for in the specific Rules enumerated hereunder, pay for loss of or damage to an entered ship, or her tackle, apparel, lashings, furniture, stores, fittings, equipment, or fuel, or for any proportion thereof, to the extent that the same are owned or leased by the Member or any associated person, or for the cost or charges of or relating in any manner whatsoever to the repair of an entered ship, or for loss of freight or hire or any proportion thereof, or for salvage, or for loss arising out of the cancellation of a charter or other engagement of an entered ship, or for bad debts, or for any loss or liability whatsoever arising out of the insolvency or fraud of the Member or its agents, or for demurrage on or detention of an entered ship.
(a) The specific Rules referred to are as follows:
Rule 25 iv - relating to life salvage;
Rule 25 xiii proviso (ix) - relating to loss of freight or hire, or claims for demurrage, detention and delay where such loss or claim forms part of a claim for liabilities in respect of cargo;
Rule 25 xv - relating to ship’s proportion of general average;
Rule 25 xvii - relating to confiscation;
Rule 25 xx b - relating to sue and labour;
Rule 25 xx c - relating to expenses incurred by direction of the Club.
Road Traffic Acts ii There shall be no recovery from the Club in respect of liabilities arising under any statute regarding the use or insurance of road vehicles. Landfills iii Unless and to the extent that the Directors shall in their absolute discretion otherwise determine, there shall be no recovery from the Club in respect of any liability, loss, damage, costs or expense, including, without limitation, liability for the cost of remedial works or clean-up operations, arising as a result of disposal or discharge at, presence in, or the escape or discharge or threat of escape or discharge from, any land based dump, site, storage or disposal facility of any substance previously carried on the entered ship whether as cargo, fuel, stores or waste and whether at any time mixed in whole or in part with any other substance whatsoever.23 Double Insurance
If a Member is, apart from the protection or indemnity of the Club, insured, protected or indemnified in any manner whatsoever against any of the liabilities, costs or expenses enumerated in Rule 25, no contribution shall be made by the Club to such liability, costs or expenses, on the basis of double insurance or otherwise, to the extent to which he is so insured or protected or indemnified. Nevertheless, with the approval of the Directors, a Member may be protected or indemnified by special agreement with the Club made either directly with himself or with other Insurers upon the terms that certain liabilities, costs or expenses shall be borne by the Club notwithstanding such other insurance, protection or indemnity.
24 Imprudent Trading
i
No claim shall be recoverable from the Club if it arises out of or is consequent upon an entered ship, or a ship in respect of which insurance is provided by the Club;
a
Carrying contraband, unless, for the purposes of this sub-clause a only, the Member has satisfied the Managers that it took such steps as appear to the Managers to be reasonable to avoid the carriage of such contraband; or
b
blockade running or being employed in an unlawful trade, or
Being employed by the Member in a carriage, trade or on a voyage which thereby in any way howsoever exposes the Club to the risk of being or becoming subject to any sanction, prohibition or adverse action in any form whatsoever by any State or International Organisation, unless the Directors otherwise determine, or
d
Performing any voyage or being employed in any trade which in the opinion of the Directors is imprudent, unsafe, unduly hazardous or improper.
Bribes and other Corrupt Activity
ii
There shall be no recovery from the Club in respect of sums, or the monetary equivalent of any other improper inducement or advantage, which are determined by the Directors in their absolute discretion to have been offered or paid by way of bribe or by any other corrupt or illicit activity.
b
For the purposes of this Rule 24 iii(i) an electronic trading system is any system which replaces or is intended to replace paper documents used for the sale of goods and/or their carriage by sea or partly by sea and other means of transport and which:
(a) Are documents of title or
(b) Entitle the holder to delivery or possession of the goods referred to in such documents, or
(c) Evidence a contract of carriage under which the rights and obligations of either of the contracting parties may be transferred to a third party; and
(ii) a "document" shall mean anything in which information of any description is recorded, including, but not limited to, computer or other electronically generated information.
25 Preamble
The liabilities, costs and expenses against which a Member may be protected and indemnified by entry in the Club are limited to those set out in Rules 25 i to 25 xxi inclusive, subject always to
i
The terms therein provided, and
ii
The terms of this Rule and of all other Rules of Class 1 Protection and Indemnity insurance, and
iii
Any other terms and conditions applicable to the Member’s entry and in particular, where cover is excluded in respect of any sub-paragraph of this Rule 25 under the terms of the Member's entry, those liabilities, costs and expenses shall not be recoverable under any other sub-paragraph of this Rule 25.
Liability
to Persons
i
Liabilities, costs and expenses as set out in Rule 25 ii and in respect of the categories of persons set out in Rule 25 iii:
a
arising by operation of law; or
b
arising under any contract including any collective agreement approved in writing by the Managers prior to the event giving rise to the claim, and upon such terms as the Managers may require.
Covered Risks
ii
Damages or Compensation for Loss of Life or Personal Injury or Illness
a
Liability for damages or compensation in respect of personal injury, illness or death;
Medical and Funeral Expenses
b
Hospital, medical and/or funeral expenses, including repatriation of remains, in relation to injury, illness or death of any person, or any Seaman whilst engaged as crew of, or arising out of employment on board, an entered ship, provided reasonably incurred;
Repatriation
c
Repatriation expenses in respect of persons on board an entered ship in consequence of a casualty thereto or consequent on illness or injury to such persons, or in any other case where the Managers in their discretion determine that such expenses have been necessarily and reasonably incurred;
Crew Substitutes
d
Expenses necessarily incurred in sending abroad substitutes, or in securing, engaging, repatriating or deporting a substitute engaged abroad, to replace any Seaman on board an entered ship who shall have died, or who shall have been disembarked due to injury, illness, or deserted, or in any other case in which the Managers determine that such expenses were reasonably incurred, save that wages shall only be recoverable as part of such expenses when payable to substitutes, engaged abroad, whilst awaiting and during repatriation;
Shipwreck Unemployment Indemnity
e
Wages or other compensation for loss of employment payable to Seamen in consequence of the loss or constructive total loss of an entered ship;
provided always that:
in respect of paragraphs d and e of Rule 25 ii no such expenses shall be recoverable in consequence of the termination of any agreement whether in accordance with its terms, by mutual consent or by the Member’s breach, or by dismissal, or the sale of the entered ship or by reason of industrial action, or any other voluntary act of the Member giving rise to such expenses or where such expenses could reasonably have been avoided.
Compensation following a Casualty
f
(i) Damages or compensation for which a Member may be liable under a passage contract to passengers on board an entered ship in consequence of a casualty to that entered ship while they are on board, “casualty” meaning an incident involving either:
(a) collision, stranding, explosion, fire or any other cause affecting the physical condition of the entered ship so as to render it incapable of safe navigation to its intended destination; or
(b) a threat to the life, health or safety of passengers.
Provided that any claim on the Club under this paragraph f shall be reduced by the amount of any savings accruing to the Member as a result of the casualty.
(ii) Damages or compensation payable in respect of passengers under this paragraph f or any other paragraph applicable to passengers under Rule 25 ii shall include a Member’s liability for the cost of forwarding them to destination, returning them to port of embarkation, and their maintenance ashore.
Deviation Expenses
g
Port and deviation expenses when solely incurred:
(i) For the purpose of landing or disposing of stowaways, refugees or other persons rescued at sea; or
(ii) In order to secure the necessary treatment for an injured or sick person being carried on an entered ship; or
(iii) While awaiting a substitute for a deceased, injured or sick crew member or deserter; or
(iv) In attempting to save or saving life at sea; or
(v) In order to search for, and/or recover, persons missing from the ship;
Provided that such expenses have in the opinion of the Managers been reasonably incurred.
The expenses recoverable are limited to those additional costs of fuel, insurance, crew wages, stores, provisions and port charges over and above the ordinary operating costs of the Member which are incurred as a direct result of the deviation, less any savings in expenditure which would have been incurred by the Member but for the deviation.
Loss of Baggage and Effects
h
Loss of or damage to baggage and effects save for specie, bullion, precious or rare metals or stone, plate or other objects of a rare and precious nature, bank notes or other forms of currency, bonds or other negotiable instruments, whether the value is declared or not, unless in any such case the Managers have been notified prior to any such carriage, and any directions made by them complied with, provided that in respect of crew, cover hereunder is limited to their “effects” as defined in Rule 2.
Expenses in Respect of Deserters and Stowaways
i
Repatriation expenses in respect of crew members posted as [deserters], stowaways, refugees and persons rescued at sea.
Provided always that;
(i) such expenses have in the opinion of the Managers been reasonably incurred;
(ii) the Directors may agree in their discretion to cover any other expenses and costs incurred by the Member in respect of such persons.
Exclusion of Pollution Liabilities jWithout prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under Rules 25 i - iii or any other Rule is subject to Rule 22 iii.
Categories of Persons
iii
Those persons in the categories a - e below, but always excluding
(i) personnel (other than marine crew) on board the entered ship (being an accommodation ship), employed otherwise than by the Member under a contract with a third party which has been approved by the Managers;
(ii) Hotel and restaurant guests and other visitors and catering crew of the entered ship when the ship is moored (otherwise than on a temporary basis) and is open to the public as a hotel, restaurant, bar or other place of entertainment.
Crew
a
Seamen, including any replacement or substitute,
Covered Risks:
The following risks as set out in Rule 25 ii are covered in respect of these persons:
a damages or compensation for loss of life or personal injury or illness
b medical or funeral expenses
c repatriation
d crew substitutes
e shipwreck unemployment indemnity
g deviation expenses
h loss of baggage and effects
Supernumeraries
b
Supernumeraries and persons being carried other than pursuant to a contract for carriage
Covered Risks:
The following risks as set out in Rule 25 ii are covered in respect of these persons
a damages or compensation for loss of life or personal injury or illness
b medical or funeral expenses
c repatriation
g deviation expenses
h loss of baggage and effects
Note: It is recommended that whenever practicable an indemnity is taken from non-fare paying passengers. The Managers will provide a form of indemnity on request and may also arrange a separate insurance to cover such passengers’ risks and liabilities
Passengers
c
Passengers
Covered Risks:
The following risks as set out in Rule 25 ii are covered in respect of these persons
a damages or compensation for loss of life or personal injury or illness
b medical or funeral expenses
c repatriation
f compensation following a casualty
g deviation expenses
h loss of baggage and effects
provided always that:
(i) There shall be no recovery in relation to any liabilities, costs or expanses whatsoever arising out of travel by air save during:
(a) Repatriation by air of an injured or sick passenger or of a passenger following a casualty as defined in paragraph f (i) of Rule 25 ii; or
(b) Excursions from the insured vessel, (subject to proviso (ii) below;
(ii) There shall be no recovery in respect of contractual liabilities, costs or expenses incurred by a Member in respect of a passenger whilst on an excursion from the entered ship if:
(a) A separate contract has been entered into by the passenger for the excursion whether or not with the Member; and/or
(b) The Member has waived any or all of its rights of recourse against any sub-contractor or any third party in respect of the excursion.
Third Parties
d
Third parties within the categories set out below.
Covered Risks
The following risks as set out in Rule 25 ii are covered in respect of these persons:
a damages or compensation for loss of life or personal injury or illness
b medical or funeral expenses.
For a person:
(i) In respect of liability resulting from negligent navigation or management of the entered ship or other negligent act or omission on board or in relation to an entered ship;
(ii) In respect of liabilities arising in relation to any act, neglect or default in the handling of the cargo of an entered ship or in consequence of the negligence of persons employed solely for that purpose, from the time of receipt for shipment on quay or wharf until final delivery ex quay or wharf at the port of discharge.
Deserters
e
Deserters, stowaways, refugees and persons rescued at sea.
Covered Risks
The following risks as set out in Rule 25 ii are covered in respect of these persons
g deviation expenses
i expenses in respect of deserters and stowaways
provided always that:
Any wages due to a deserter shall, if and to the extent permissible by law, be retained by the Member and such savings deducted from a claim for reimbursement under paragraph i of Rule 25 ii.
Life Salvage
iv
To the extent not recoverable from hull underwriters, cargo owners or underwriters, sums awarded to third parties for the saving of, or attempting to save, the life of any person on or from an entered ship.
Collision Liability
v
Liabilities, costs and expenses arising within the categories and subject to the terms set out below consequent upon collision between an entered ship and any other ship:
a
One-fourth or such other proportion as may have been agreed by the Managers of such liabilities, costs and expenses, if and to the extent that such proportion is not covered under the collision liability clause contained in the Hull Policies of the entered ship.
Provided that the liabilities, costs and expenses are covered under the usual form of Lloyd’s policy with the Institute Time Clauses (Hulls) attached or the Hull Policies of the entered ship are in a form previously approved by the Managers in writing.
b
Liabilities, costs and expenses irrecoverable under the Hull Policies of the entered ship, solely because they exceed the ship’s insured value under those policies.
(i) There shall be no recovery under this paragraph b if in the opinion of the Managers the insured value is less than an amount reasonably reflecting the free uncommitted market value (“the proper value”) of the ship; or
(ii) The Managers may reduce such recovery to the amount, if any, that would have been irrecoverable under the ship’s Hull Policies had the ship been insured for the proper value.
(iii) At the request of a Member the Managers may, but shall not be obliged to, agree for the purposes of paragraph b of Rule 25 v, the proper value for which an entered ship should be insured for collision liabilities for the current year.
Note: When considering the proper value for which an entered ship should be insured or deemed to be insured for the purposes of Rule 25 v the Member must satisfy the Managers that the hull and machinery and/or excess liability policies of the Member concerned have been subject to periodic review as market conditions may require, so that the total amount of liability coverage contained in these policies is maintained at a figure which is as near as possible to the free uncommitted market value of the ship at the time of the incident giving rise to the claim.
Members should consult with their brokers and/or ship valuers in order to assess, in the light of the above, the amount for which insurances should be effected to cover collision and general average or salvage liabilities. Provided that the necessary insurances are effected, on the basis of the advice received, the Managers will give favourable consideration to a claim under these Rules consequent upon assessment of the value of the ship by a Court or Tribunal at an amount in excess of the insurances so effected.
c
A Member’s liability to indemnify the owner of the other ship against, or to pay, liabilities, costs and/or expenses of or incidental to:
(i) Raising, removal, destruction, lighting or marking of the wreck of such other ship, its cargo or other property on board.
(ii) Loss of, or damage to, or interference with rights in relation to any fixed or movable property, whether on or above, in or below land or water, caused by such other ship.
(iii) An actual or threatened escape or discharge of oil or any other substance (other than from the entered ship) save for that causing damage to the ship with which the entered ship is in collision or that causing damage to any property on board that ship.
(iv) Remuneration payable under the Special Compensation P&I (SCOPIC) Clause or special compensation and any increment awarded thereon under the provisions of Article 14 of the International Convention on Salvage 1989.
(v) Other risks excluded under the Hull Policies of the entered ship provided either
(a) that the cover under those Hull Policies is no less wide than under the usual form of Lloyd’s policy with the Institute Time Clauses (Hulls) attached or
(b) that the Hull Policies of the entered ship are in a form previously approved in writing by the Managers and upon such terms as they may require.
d
Loss or damage to cargo or other property being carried on an entered ship consequent upon collision
provided always that:
(i) the Member is insured by the Club for liabilities in respect of cargo, and subject to the terms of entry and the Rules applicable to such cover.
(ii) Rule 25 xiii proviso (vii) shall apply in respect of cargo being carried in the entered ship which is owned by the Member.
Note: It is recommended that bills of lading or any other relevant contract of carriage should whenever possible incorporate a ‘Both-to-Blame’ collision clause. A recommended form of such a clause is set out under ‘Clauses Recommended by the Association’ at the end of the Rules.
e
Unless otherwise provided for under a form of hull policy on the entered ship approved by the Managers in writing, if the entered ship and the other ship are both to blame for a collision, then (except where the liability of the owners of one or both of them becomes limited by law, in which event claims under this Rule 25 v shall be settled upon the principle of single liability) claims for reimbursement under this Rule 25 v shall be settled upon the principle of cross-liabilities, as if the owner of the entered ship had been compelled to pay the owner of the other ship such proportion of the latter’s damages as may have been properly allowed in ascertaining the balance or sum payable by or to the former in consequence of the collision.
f
No recovery shall be made under this Rule 25 v:
(i) in respect of any excess, franchise and/or deductible borne by the Member under the Hull Policies of the entered ship;
(ii) if there would otherwise be a right of recovery under the Hull Policies of the entered ship but for the conduct of the Member.
g
If a claim arises under this Rule upon a collision involving two ships belonging to the same Member, the Member shall be entitled to recover from the Club, and the Club shall have the same rights, as if the ships had belonged to different Owners.
h
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 v is subject to the following provisions:
(i) Rule 22 iii, and
(ii) In respect of pollution, Rule 18 ii and the note thereto.
Pollution
vi
Liabilities, losses, damages, costs and expenses caused by or consequent on the escape or discharge or threatened escape or discharge of oil or any other substance from the entered ship as follows:
Actual Escape of Pollutants
a
Liability for loss, damage or contamination.
Clean up Costs
b
Costs of any measures reasonably taken for the purpose of avoiding, minimising or cleaning up any pollution, any imminent danger of pollution, or any resulting loss, damage or contamination, together with any liability for any loss of or damage to property caused by any measures so taken.
Prevention Costs
c
Costs of any measures reasonably taken to prevent an imminent danger of discharge or escape from the entered ship of oil or any other substance which may cause pollution.
Costs Pursuant to Government Directions
d
Liabilities, costs or expenses following a casualty to the entered ship incurred as a result of compliance with the order or direction of any government or authority (other than in respect of repair or salvage or any permanent structural alteration to an entered ship) for the purpose of avoiding or minimising pollution or the imminent danger of pollution
provided always that:
(i) such liabilities, costs or expenses are not recoverable under the Hull Policies of the entered ship and
(ii) there shall be no recovery under this Rule in respect of liabilities that would be recoverable under such Hull Policies but for the conduct of the Member.
Voluntary Agreements
e
Liabilities, costs or expenses for which a Member may be liable or otherwise incur as a party to any agreement relating to oil pollution previously approved by the Managers on such terms as they may require.
Salvors’ Expenses
f
Liability for special compensation and any increment awarded thereon payable to salvors and incurred by a Member under the terms of the Special Compensation P&I Club (SCOPIC) Clause or under the provisions of Article 14 of the International Convention on Salvage 1989 or assumed under the terms of a standard form of salvage contract approved by the Managers.
provided always that:
(i) Unless otherwise agreed by the Managers in writing prior to the event giving rise to a claim, or unless the Directors shall in their discretion otherwise determine, there shall be no recovery under paragraphs a - f of this Rule 25 vi in respect of liabilities, costs and expenses which would have been recoverable by the Member in general average if the relevant charterparty or other contract of carriage had incorporated the unamended York Antwerp Rules 1994.
(ii) Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this or any other Rule is subject to Rule 22 iii.
(iii) A Member insured in respect of a ship which is a “relevant ship” as defined in the Small Tanker Oil Pollution Indemnification Agreement, including any addendum to, or variation or replacement of such agreement (STOPIA) shall, unless the Managers otherwise agree in writing, be a party to STOPIA for the period of entry of the ship in the Club.
Unless the Managers have agreed in writing or unless the Directors in their discretion otherwise determine, there shall be no cover under this Rule 25 vi in respect of such a ship so long as the Member is not a party to STOPIA.
(iv) A Member insured in respect of a ship which is eligible for entry in the Tanker Oil Pollution Indemnification Agreement (TOPIA) shall, unless the Managers otherwise agree in writing, be a party to TOPIA for the period of entry of that ship in the Club. Unless the Managers have agreed in writing or unless the Directors in their discretion otherwise determine, there shall be no cover under this Rule 25 vi in respect of such a ship so long as the Member is not a party to TOPIA.
Note: See Rule 18 ii under which, inter alia, the extent of the Club’s liability for claims involving oil pollution is determined by the Directors.
The limit with effect from 20 February 2009 is US$ 1,000,000,000 each vessel any one accident or occurrence.
Damage to Fixed and Floating Objects
vii
Liability for loss of, or damage to, or interference with rights in relation to any fixed or movable property, whether on or above, in or below land or water.
provided always that:
a
There shall be no recovery under this Rule 25 vii in respect of:
(i) the liabilities set out in the following Rules:
Rule 25 i-iii
Persons
Rule 25 ii h
Effects of seamen, supernumeraries or passengers
Rule 25 v
Collision
Rule 25 vi
Pollution
Rule 25 viii
Non contact damage to ships
Rule 25 ix
Towage contracts
Rule 25 xi
Wreck
to the extent that those liabilities are recoverable under the respective Rules set out above or would be recoverable but for any exclusions or other conditions of those Rules and/or under the terms of the Member’s entry.
(ii) Liabilities in respect of cargo or other property intended to be or having been carried in the entered ship to the extent that those liabilities are recoverable under Rule 25 xiii or would be recoverable but for any exclusions or other conditions of that Rule and/or under the terms of the Member’s entry.
(iii) Liabilities arising under the terms of any contract or undertaking, unless approved in writing by the Managers on such terms as they may require.
(iv) Any liabilities, costs and expenses covered under the Hull Policies of the entered ship.
(v) Any Excess, Franchise and/or Deductible borne by the Member under the Hull Policies of the entered ship.
b
If a claim is made on the Club under this Rule 25 vii for loss of or damage to or interference with rights in relation to any property belonging to the Member in respect of whose entered ship the claim arose, the Member shall be entitled to recover from the Club and the Club Rules shall apply in all respects, as if such property belonged to a third party, but to the extent only that such claim is not recoverable under any other insurance upon the said property, and provided that there shall be no recovery under this Rule in respect of any such claim which is not recoverable under any other insurance only by virtue of the existence of the cover provided by the Club.
c
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 vii is subject to the following provisions:
(i) In respect of pollution, Rule 18 ii and the note thereto; and
(ii) Rule 22 iii.
Damage to Vessels without Collision
viii
Liability for loss of, or damage to, or interference with rights in relation to any other ship or property therein occasioned otherwise than by collision with the entered ship.
a
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 viii is subject to the following provisions:
(i) In respect of pollution, Rule 18 ii and the note thereto; and
(ii) Rule 22 iii.
(iii) There shall be no recovery in respect of any liabilities relating to cargo or other property carried on the entered ship unless the Member is insured by the Club under Rule 25 xiii, and cover in respect of any such liabilities shall be subject to the terms of that Rule and to the applicable terms of entry.
If a claim arises under this Rule 25 viii upon loss of or damage to any other ship belonging to a Member, in respect of whose entered ship the claim arose, the Member shall be entitled to recover from the Club and the Club shall have the same rights as if the ship lost or damaged had belonged to a third party, but to the extent only that such claim is not recoverable under any other insurance upon such ship, and provided that there shall be no recovery under this Rule in respect of any such claim which is not recoverable under any other insurance only by virtue of the existence of the cover provided by the Club.
Towage
ix
a
Liabilities of a Member, other than for the cost of any contracted services, arising from and/or in respect of the towage of an entered ship
Provided that there shall be no recovery in respect of liabilities, costs and expenses incurred under or pursuant to the terms of a contract for towage of an entered ship, unless that contract:
(i) Is entered into during the ordinary course of trading for the purpose of entering, leaving or manoeuvring within a port;
(ii) Is entered into during the ordinary course of trading, when the entered ship is habitually towed from place to place and has been declared as such to the Managers, to the extent only that such liability is not recoverable under the Hull Policies of the entered ship other than by reason of the conduct of the Member;
(iii) Is on Lloyd’s Open Form of Salvage Agreement (1980,1990,1995 or 2000, whether or not incorporating SCOPIC) or any other form of salvage contract approved by the Managers in writing on such terms as they may require;
(iv) Incorporates a term to the effect that each of the Owner of the entered Ship and the owner of the towing vessel shall be responsible for any loss or damage to his own vessel, and for loss of life or personal injury on his own vessel, without any recourse whatsoever against the other.
b
Liabilities of a Member arising from and/or in respect of towage by the entered ship,
Provided that in respect of liability for loss of or damage to or wreck removal of a vessel or other floating structure towed by the entered Ship or the cargo or other property on such tow (together with costs and expenses associated therewith), there shall be no recovery under this Rule save insofar as:
(i) the towage or attempt thereat is made for the purpose of saving or attempting to save life or property at sea, or
(ii) the entered ship is towing under a contract approved in writing by the Managers on such terms as they may require; or
(iii) If the entered Ship is working under a time charter and there is no contract between the Member and the owner of the tow, the Managers have approved in writing the terms of that time charter.
c
There shall be no recovery in respect of liabilities, costs and expenses arising out of towage otherwise than in accordance with this Rule 25 ix and cover hereunder is in any event limited to the liabilities set out under Rules 25 i-xxi (excluding this Rule 25 ix) to the extent that such Rules are applicable to the Member’s entry in the Club.
d
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 ix is subject to the following provisions:
(i) in respect of pollution Rule 18 ii and the note thereto; and
(ii) Rule 22 iii.
Note: The Managers will ordinarily only approve contracts for towage by an entered Ship pursuant to paragraph b (ii) above of this Rule 25 ix in terms not less favourable to the towing vessel than:
a) United Kingdom, Netherlands and Scandinavian standard towage conditions
b) Towcon and Towhire
c) The Lloyds standard form of salvage agreement (1980, 1990, 1995 or 2000, whether or not incorporating SCOPIC) - no-cure no pay;
d) a contract that contains a term that the parties to the towage contract, and any parties on whose behalf they contract, shall be responsible for any loss or damage to or wreck removal of their own ship, cargo or property and for loss of life or personal injury thereon, without recourse against the other and will indemnify the other against any such liability (a “knock for knock” clause).
e) Other contracts where (i) A term or terms of the contract complying with d) above is or is likely to be unlawful or unenforceable in whole or in part; and (ii) The contract does not impose on the Member any liability to any person arising out of any act, neglect or default of the owner of the tow or any other person; and (iii) The contract limits the liability of the Member under the contract or otherwise to the maximum extent possible by law. In addition, the Managers recommend in all cases, and particularly when cargo is carried on board the towed vessel, that; 1) a Himalaya clause or similar provision should be incorporated in the towage or other contract under which the entered ship is hired to perform towage services, to protect the tug owner's own employees, servants and sub-contractors from being sued in tort by the hirer or charterer of the tug; and 2) the towage or other contract under which the entered ship is hired to perform towage services should include a requirement that any other contract entered into by the hirer or charterer of the tug with any third party should contain a Himalaya clause, under which the tug is afforded the same defences as the hirer or charterer.Contracts and Indemnities
x
a
Liabilities in respect of risks covered under any Rule (other than this Rule 25 x) which is applicable to and not excluded by the terms of the Member’s entry in the Club, arising under the terms of an indemnity, undertaking or contract made by the Member;
provided always that:
the terms of the indemnity, undertaking or contract shall have been approved in writing by the Managers, or the Directors have in their discretion determined that a particular claim falls within the scope of Club cover.
b
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 x is subject to the following provisions:
(i) in respect of pollution, Rule 18 ii and the note thereto; and
(ii) Rule 22 iii.
Removal of Wreck
xi
a
Costs and expenses of or incidental to or liabilities arising out of the actual, or attempted raising, removal, destruction, lighting or marking of:
(i) the wreck of an entered ship, including any part thereof; or,
(ii) cargo, equipment or other property carried on the entered ship, to the extent that the Member is unable to recover those costs from the owner of such property or from any other party;
provided always that:
(a) Such raising, removal, destruction, lighting or marking is compulsory by law, or the costs thereof are legally recoverable from the Member; and
(b) The casualty or event giving rise to a claim under paragraph a of this Rule 25 xi occurred during the period of the ship’s entry in the Club, and in the case of actual, constructive or compromised total loss of the entered ship the Member shall continue to be covered by the Club in respect of such liabilities notwithstanding the provisions of Rule 36 v.
b
Liabilities arising out of the presence or involuntary shifting of, or obstruction caused by, the wreck of an entered ship, including any part thereof or cargo, equipment or other property carried thereon.
provided always that:
in respect of paragraph b of this Rule 25 xi:
(i) The event causing the loss or wreck of the entered ship has occurred during the period of entry of that ship in the Club and liability is attributable to such event;
(ii) Unless the Directors in their absolute discretion otherwise determine, there shall be no recovery in respect of:
(a) Liabilities resulting from the failure of the Member to take such measures as are reasonable to raise, remove, destroy, light or mark the wreck; and
(b) Any liabilities incurred more than two years after the entered ship became a wreck.
c
To the extent of the Member’s interest therein, the value of:
(i) The wreck itself and all stores and materials saved shall be deducted from any reimbursement made by the Club under this Rule 25 xi; and/or
(ii) All cargo saved, shall be deducted from any reimbursement made by the Club under either Rule 25 xi a (ii) or Rule 25 xiii.
Provided that if any such proceeds are realised by the Member after reimbursement by the Club and without deduction in accordance with paragraphs (i) and (ii) above, the Member shall pay any such proceeds to the Club up to the amount of any prior reimbursement.
d
Unless the Managers otherwise agree in writing, there shall be no recovery under this Rule 25 xi or any other Rule in respect of any liability, costs or expenses incurred by the Member after the transfer of its interest in the cargo or wreck, otherwise than by abandonment, prior to the actual or attempted raising, removal, destruction, lighting or marking of the wreck or prior to incurring any other liabilities covered by this Rule 25 xi.
e
There shall be no recovery under this Rule xi in respect of any liabilities arising under the terms of any contract or undertaking, unless approved in writing by the Managers on such terms as they may require.
f
Without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this Rule 25 xi is subject to the following provisions:
(i) In respect of pollution, Rule 18 ii and the note thereto; and
(ii) Rule 22 iii and,
(iii)Provisos (x) and (xii) to Rule 25 xiii.Quarantine Expenses
xii
Extraordinary expenses consequent on the outbreak of infectious or contagious disease upon an entered ship or in respect of quarantine as follows:
a
The disinfection of the entered ship or of persons on board her under quarantine or pursuant to any public health order, including the cost of taking in fuel in quarantine, and of loading and discharging cargo and of the victualling of the crew and passengers provided that there shall be deducted from any recovery under this Rule 25 xii any of such costs and expenses as would have been incurred but for the quarantine or public health order;
b
Fuel consumed or towage in proceeding to and from and lying at a special station or place solely in accordance with quarantine or public health orders;
c
Expenses directly consequent upon deviating to a port or place of refuge and resuming the voyage thereafter by reason of quarantine or public health orders;
provided always that:
There shall be no recovery under this Rule 25 xii if the entered ship, not already being so contracted, is ordered or chartered to proceed to a port at which it was known or should in the determination of the Directors have reasonably been anticipated that the entered ship would be subject to quarantine.
Cargo Liabilities
xiii
Liabilities and costs insofar as they relate to cargo or other property intended to be or being or having been carried in an entered ship as follows:
Loss, Shortage, Damage and other Responsibility
a
Liability for loss, shortage, damage or other responsibility arising out of any breach by the Member, or by any person for whose acts, neglect or default he may be legally liable, of his obligation as carrier by sea properly to load, handle, stow, carry, keep, care for, discharge or deliver the cargo or property or out of unseaworthiness or unfitness of the entered ship.
Handling of Damaged or Worthless Cargo
b
The extra costs (over and above those required by and/or incurred in the performance of his obligations under the contract of carriage) incurred by the Member in restowing, discharging or disposing of damaged or worthless cargo, provided that the Member has no recourse to recover such costs from any other party and, in respect of such cargo, the Member shall only be entitled to recover such extra costs if and to the extent that they exceed any proceeds of sale of the cargo payable to the Member.
Failure of Cargo Interests to Collect Cargo
c
The extra costs and liabilities incurred by the Member arising directly out of the failure by cargo interests to collect or remove cargo from the port or place of discharge or delivery provided that:
(i) The Member is legally liable for such costs or has incurred them under the direction or with the approval of the Managers; and
(ii) The Member has no recourse to recover such costs from any other party; and
(iii) The Member shall only be entitled to recover such extra costs if and to the extent that they exceed the proceeds of the sale of the cargo; and
(iv) In any event there shall be no recovery in respect of
(a) storage charges for the first 30 days following discharge and
(b) any costs and liabilities (including storage charges), under paragraph c of this Rule 25 xiii, which have been incurred prior to notification of the failure to collect or remove cargo being received by the Managers.
Through Transport
d
Liability for loss and shortage of, damage to or other responsibility in respect of cargo or other property for which the Member may be liable under a through or transhipment bill of lading or other form of contract of carriage providing for carriage partly to be performed by an entered ship, provided that:
(i) the terms of any such contract of carriage have been approved in writing by the Managers on such terms as they may require;
(ii) where part of the carriage is performed by the Member in his capacity as an Owner (as defined in Rule 2) of a ship which he has not entered in the Club, the Member may recover from the Club for liability in respect of loss, shortage, damage or other responsibility in respect of cargo or other property only to the extent that it occurred during, or was consequent upon, that part of the carriage performed by the entered vessel.
Provided always that:
in relation to paragraphs a - d of this Rule 25 xiii
Hague Rules and Hague-Visby Rules
(i) Unless and to the extent that the Directors in their discretion otherwise determine or special terms have been agreed in writing by the Managers, there shall be no recovery from the Club in respect of any liabilities, costs and expenses which would not have been incurred or become payable by the Member if the cargo or other property had been carried under a bill of lading or other contract of carriage incorporating terms no less favourable to the carrier than the Hague Rules or Hague-Visby Rules.
Note: A Member should ensure wherever possible that any bill of lading or other contract of carriage to which any other is the contracting party contains a provision in the same or substantially the same form as the “Himalaya” clause set out under the ‘Clauses recommended by the Association’ at the end of the Rules, extending any exemptions and immunities of the carrier to that Member, and to each of his servants, agents and subcontractors.
Through and Transhipment Bills of Lading
(ii) Where a through or transhipment bill of lading or other contract of carriage has been issued by the Member in accordance with paragraph d of this Rule 25 xiii there shall be no recovery from the Club in respect of liabilities, costs or expenses incurred by the Member under or in connection with such a bill of lading or other contract of carriage, unless the Member preserves its rights of recourse against any sub-contractor by sub-contracting only on terms that:
(a) the sub-contractor shall be liable to the Member to the same extent as is the Member to any other person under the Member’s bill of lading or other contract of carriage, or
(b) have been approved in writing by the Managers.
Deviation
(iii) There shall be no recovery from the Club in respect of any liabilities, costs and expenses arising out of or incurred in consequence of a deviation of an entered ship and/or a deviation in relation to cargo before, during or after being carried in an entered ship, including without limitation any geographical or other departure from the contractually agreed voyage or adventure, unless
(a) in the case of a deviation authorised by the Member, it shall prior thereto have given notice of the same to the Managers, or in the case of a deviation without its authority, it shall have given notice to the Managers immediately upon receiving information thereof, and the Managers have in writing agreed cover in respect of such losses, costs and expenses on such terms as they may require; or
(b) to the extent that the Directors in their discretion otherwise determine.
Note: If the contract of carriage contains an appropriate Voyage Liberty Clause, an example of which is set out under ‘Clauses Recommended by the Association’ at the end of the Rules, some unplanned deviations may be permissible. The Managers may in such circumstances determine that no additional premium is to be paid by the Member. (The shipment of cargo on deck without a specific statement to that effect in the Bill of Lading may amount to a deviation in addition to an infringement of the requirements of proviso (x) to this Rule 25 xiii.)
Valuable Cargo
(iv) There shall be no recovery from the Club in respect of any liabilities, costs or expenses arising out of the carriage of specie, bullion, precious or rare metals or stones, plate, jewellery or other objects of a rare or precious nature, banknotes or other forms of currency, bonds or other negotiable instruments, unless the contract of carriage relating thereto and the spaces, apparatus and means in which the same are to be carried and the instructions given with regard to the safe custody thereof have been approved in writing by the Managers on such terms as they may require.
Ad Valorem Bills of Lading
(v) There shall be no recovery from the Club in respect of any liabilities, costs or other expenses arising out of carriage under an ad valorem bill of lading or other document of title, waybill or other contract of carriage in which a value of more than United States dollars two thousand five hundred (US$2,500) (or the equivalent in any other currency) is declared and/or inserted by reference to a unit, piece, package or otherwise, where the effect of such a declaration/insertion is to deprive the carrier of any right or rights of limitation to which he would otherwise have been entitled and cause him to incur a greater liability than he would have done but for such declaration/insertion, to the extent that such liability thereby exceeds United States dollars two thousand five hundred (US$2,500) (or the equivalent in any other currency) in respect of any such unit piece or package, unless the contract of carriage has been approved in writing by the Managers on such terms as they may require.
Refrigerated Cargo
(vi) The Managers may at any time require to be satisfied as to the spaces, plant and apparatus, and means used for the carriage of refrigerated cargo in an entered ship, the instructions given to those on board and the terms of the contract of carriage under which the same is to be carried, and the Member shall upon such request supply the relevant information to the Managers. In the event the Managers withhold their approval and so notify the Member in writing, there shall be no recovery from the Club in respect of any loss of or damage to such refrigerated cargo carried upon any voyage which began after the service on the Member of such notice.
Member’s Own Cargo
(vii) if the cargo in respect of which a claim is made on the Club under paragraphs a - d of this Rule 25 xiii is owned by the Member, the Member shall be entitled to recover from the Club and the Club Rules shall apply in all respects as if such cargo belonged to a third party, and that third party had concluded a contract of carriage of the cargo with the Member on the terms of the Club's recommended standard terms of carriage as referred to in proviso (i) above.
Discretionary Claims
(viii) Unless and to the extent that the Directors shall in their absolute discretion otherwise determine (and in any event only if they are satisfied that the Member took such steps as appear to those Directors to be reasonable to avoid the event or circumstances giving rise to such liabilities, costs and expenses), there shall be no recovery from the Club under paragraphs a - d of this Rule 25 xiii in respect of the Member’s liabilities, costs or expenses arising out of:
(a) the discharge of the cargo or any part thereof at any port or place other than a port or place permitted by the relevant contract of carriage;
(b) the delivery of cargo carried on an entered ship without the production of the relevant bill of lading;
(c) the delivery of cargo carried under a non-negotiable bill of lading, waybill or similar document without production of such document by the person to whom delivery is made, where such production is required pursuant to the terms of and/or the law applicable to that document, except where the Member is obliged by law to deliver or relinquish custody or control of, the cargo, without production of such document;
(d) the issue of an ante dated or post dated bill of lading, waybill or other document containing or evidencing the contract of carriage;
(e) the issue of a bill of lading, waybill or other document containing or evidencing the contract of carriage known by the Member or the Master of the entered ship to contain an incorrect description of the cargo or its condition or quantity;
(f) the failure to arrive or late arrival of an entered ship at any port of loading, or out of the failure to load or delay in loading any particular cargo or cargoes in an entered ship otherwise than under a bill of lading already issued.
Loss of Freight or Hire, Detention or Demurrage
(ix) Loss of freight or hire or any proportion thereof, or claims for demurrage on, detention of, or delay to an entered ship shall be recoverable under this Rule 25 xiii if, but only if, such loss or claim forms part of a claim for liabilities in respect of cargo or is, with the consent of the Managers, included in the settlement of a claim;
Deck Cargo
(x) Unless and to the extent otherwise agreed in writing by the Managers, there shall be no recovery from the Club in respect of liabilities for loss, shortage, damage or other responsibility arising out of the carriage of cargo on deck unless the cargo and the ship are, in the opinion of the Managers, suitable for carriage on deck and the Bill of Lading or other contract of carriage:
(a) states that the cargo is carried on deck and either provides that the carrier is free from all liability for loss of or damage to cargo or provides the carrier with rights, immunities and limitations no less favourable then those contained in the Hague Rules or Hague-Visby Rules; or
(b) contains an appropriate liberty to carry cargo on deck and provides for the Hague Rules or the Hague-Visby Rules to apply to such cargo.
Note: A suitably worded deck cargo carriage clause may exclude liability for deck cargo where the Hague Rules or Hague-Visby Rules do not apply. Two examples are set out under the ‘Clauses Recommended by the Association’ at the end of the Rules. A clause giving general permission to carry on deck may not be “an appropriate liberty” for the purposes of paragraph (b) of proviso (x) to this Rule 25 xiii. The Managers will on request but at the Member’s expense endeavour to arrange an insurance to cover the Member’s liability in respect of cargo carried otherwise than in accordance with paragraphs (a) and (b) of proviso (x) to this Rule 25 xiii.
Exclusion of Pollution Liabilities
(xi) There shall be no recovery under this Rule 25 xiii in respect of:
(a) any liabilities, costs or expenses arising out of the escape or discharge or threatened escape or discharge of any substance from the entered ship or any property therein including cargo, or from any other ship or any property therein, or from any fixed or other movable thing or object whatsoever;
(b) any liability, loss, damage, cost or expense, including, without limitation, liability for the cost of remedial works or clean-up operations, arising as a result of the disposal or discharge at, presence in, or the escape or discharge or threat of escape or discharge from, any land based dump, site, storage or disposal facility of any substance previously carried or intended for carriage on the entered ship whether as cargo, fuel, stores or waste and whether at any time mixed in whole or in part with any other substance whatsoever, unless the Directors shall in their absolute discretion otherwise determine.
Heavy Lift Cargo
(xii) There shall be no recovery from the Club in respect of loss of or damage to or wreck removal of cargo carried on a semi-submersible heavy lift vessel or any other vessel designed exclusively for the carriage of heavy lift cargo, save to the extent that such cargo is being carried under the terms of a contract on Heavycon terms or on such terms as the Managers may otherwise agree in writing.
Cargo’s Proportion of General Average
xiv
Contribution by cargo or some other party to the maritime adventure to general average, special charges or salvage which is not legally recoverable solely by reason of a breach of the contract of carriage;
provided always that:
a
Provisos (i) - (xii) to Rule 25 xiii shall apply to any claim under this Rule 25 xiv;
b
Any cargo allowance stated in the adjustment, but for which credit has not in fact been taken by cargo, shall be deducted.
Note: No proportion of any sacrifices of ship or interest, commission or adjustment charges on sacrifices of ship (which are normally recoverable from Hull Underwriters) are payable under this Rule.
Ship’s Proportion General Average
xv
A Member shall be entitled to recover the entered ship’s proportion of general average, special charges or salvage not recoverable under the Hull Policies by reason of the value of the entered ship being assessed for contribution to general average or salvage at a sound value in excess of the insured value under the Hull Policies;
provided always that:
a
There shall be no recovery under this Rule 25 xv if in the opinion of the Managers the insured value is less than an amount reasonably reflecting the free uncommitted market value (“the proper value”) of the ship; or
b
The Managers may reduce such recovery to the amount, if any, that would have been irrecoverable under the ship’s Hull Policies had the ship been insured for the proper value.
c
At the request of a Member the Managers may, but shall not be obliged to, agree for the purposes of this Rule 25 xv, the proper value for which an entered ship should be insured under the Hull Policies for the current year.
Note: When considering the ‘proper value’ for which an entered ship should be insured or deemed to be insured for the purpose of Rule 25 xv, the Member must satisfy the Managers that the hull and machinery and/or excess liability policies of the Member concerned have been subject to periodic review as market conditions may require, so that the total amount of liability coverage contained in these policies is maintained at a figure which is as near as possible to the free uncommitted market value of the ship at the time of the incident giving rise to the claim.
Members should consult with their brokers and/or ship valuers in order to assess, ln the light of the above, the amount for which insurances should be effected to cover collision and general average or salvage liabilities. Provided that the necessary insurances are effected, on the basis of the advice received, the Managers will give favourable consideration to a claim under these Rules consequent upon assessment of the value of the ship by a Court or Tribunal at an amount in excess of the insurances so effected.
Fines
xvi
Fines for which a Member is liable or for which a Member, with the approval of the Managers, assumes responsibility, imposed in respect of an entered ship by any court, tribunal or authority of competent jurisdiction as follows:
Cargo
a
Fines for short or over delivery of cargo, or for failure to comply with regulations concerning the declaration of goods, or the documentation of cargo;
provided always that:
the Member is insured by the Club for liability in respect of cargo, and subject to the terms of entry and the Rules applicable to such cover.
Immigration Laws
b
Fines for breach of any law or regulation relating to immigration;
Pollution
c
Fines in respect of the accidental escape or discharge of oil or any other substance or the threat thereof;
provided always that:
the Member is insured for pollution liability by the Club, and subject to the terms of entry, the Rules, and the limit of liability applicable to such cover.
Smuggling
d
Fines for smuggling or any infringement of any customs law or customs regulation other than in relation to cargo carried on the entered ship.
Other Fines
e
There shall be no recovery in respect of fines other than those specified in paragraphs a - d of this Rule 25 xvi unless the Member has satisfied the Directors that it took such steps as appear to the Directors to be reasonable to avoid the event giving rise to the fine;
provided always that:
Any amount claimed under paragraph e of this Rule 25 xvi in respect of any such fine shall be recoverable to such extent only as the Directors in their absolute discretion may determine without having to give any reason for their decision; and
without prejudice to any other provision, exclusion, limitation or condition set out in these Rules, cover under this or any other Rule is subject to Rule 22 iii.Confiscation
xvii
Notwithstanding the terms of Rule 22, the Directors in their discretion may authorize the payment, in whole or in part, of an Owner’s claim for loss of an entered ship following confiscation of the ship by any legally empowered court, tribunal or authority by reason of the infringement of any customs law or customs regulation;
provided always that:
a
the amount recoverable from the Club shall under no circumstances exceed the market value of the ship without commitment at the date of the confiscation;
b
the Owner shall have satisfied the Directors that he took such steps as appear to the Directors to be reasonable to prevent the infringement of the customs law or customs regulation giving rise to the confiscation;
c
any amount claimed under this Rule 25 xvii shall be recoverable to such extent only as the Directors in their absolute discretion may determine without having to give any reason for their decision;
d
no such claim shall be considered by the Directors until such time as the Owner has been finally deprived of his full interest in the entered ship.
Enquiry
xviii
Costs and expenses incurred by a Member in defending himself or in protecting his interests before a formal enquiry into the loss of or casualty to an entered ship in cases which, in the opinion of the Managers, may affect any claim upon the Club arising out of such loss or casualty.
Expenses Incidental to Shipowning
xix
Liabilities, costs and expenses incidental to the business of owning, operating or managing ships which the Directors may decide to be within the scope of the cover of the Club. Claims under this paragraph shall be recoverable to such extent only as the Directors in their absolute discretion may determine without having to give reasons for their decision.
Legal and other Expenses
xx
Legal Costs and Expenses
a
Costs and expenses including legal costs and charges, which a Member may incur in respect of any liability or expenditure against which he is insured by the Club;
Sue and Labour
b
Extraordinary costs and expenses reasonably incurred upon or after any casualty, occurrence or event which is likely to give rise to a claim covered by the Club, solely for the purpose of avoiding or minimising any liability or expenditure arising from such claim;
Expenses Incurred under Direction of Club
c
Costs, expenses and losses which a Member may incur by special direction of the Club in relation to claims which the Directors consider affect or may affect the interests of the Members or the Club;
provided always that:
There shall be no recovery under this Rule 25 xx in respect of any costs or expenses save to the extent that
(i) the same have been incurred with the consent in writing of the Managers, or
(ii) the Directors in their absolute discretion shall otherwise determine.
Loss of or Damage to Containers
xxi
Loss of or damage to containers owned or leased by the Member;
provided always that:
there shall be no recovery under this Rule 25 xxi unless the Member has obtained the prior written agreement of the Managers to extend his cover in terms of this Rule and the Member has agreed to such special terms, and has agreed to pay such additional premium as the Managers may require.
Deductibles
xxii
Unless otherwise agreed, any liabilities, costs and expenses recoverable under Rule 25 shall be limited to the excess of stipulated deductibles. Deductibles to be applied to particular claims will be on the basis agreed between the Managers and Members as part of the terms and conditions upon which the entry of the ship is either accepted or continued. In the absence of contrary notification from the Club, the deductibles applicable to any particular entry at the end of any policy year shall be deemed to continue to apply to that entry in the next policy year.
