Clause 3 - Special Risks Cover
The special risks cover contained in this Clause 3 shall form part of the Assured’s insurance if expressly agreed to by the Managers in writing and incorporated by means of a short form reference in the Assured’s certificate of entry and/or endorsement slip.
1. Space Charterers/Consortium Extension
This extension covers liabilities of the Assured in respect of risks set out in Clause 2, incurred in its capacity as a space charterer of a ship operating in a consortium as declared arising out of the carriage of cargo (“consortium claim”) but only where space is exchanged or shared on a reciprocal basis, and provided always that this extension shall not apply where cover on similar terms in respect of such consortium claim is (or would have been, absent any double insurance clause) given under an Owner’s P&I insurance afforded by the Club or by any other insurer.
An exchange or sharing of a space will be on a reciprocal basis if the intention is that the space given and taken are broadly in balance.
2. War & Terror Inclusion
Notwithstanding Clause 5(E), cover is hereby restored to include liabilities, costs or expenses which would otherwise be excluded by Clause 5(E). Unless otherwise agreed in writing, such cover shall be subject to all other terms contained in the certificate of entry of the entered ship and shall be provided upon and subject to the following terms and conditions:
A. Warranted that the entered ship is chartered on terms to the effect that:
i. Owner is entitled to refuse to send the entered ship to any port or place that is dangerous by reason of war risks (as defined in any current standard war risks insurance policy), and
ii. Owner is in any event entitled to insure its interests against such war risks, and
iii. Charterer is liable to reimburse the Owner in respect of any war risks premium incurred as a result of the entered ship being ordered to or employed in such port or place.
B. Held covered in the event of breach of this warranty at a premium to be agreed.
C. The Assured to use its best endeavours to ensure that the entered ship is chartered on terms to the effect that “Charterer is under no circumstances whatsoever to be liable for any loss, damage or expense which is or could be covered by war risks insurance available commercially”.
D. Subject to the Notice of Cancellation, Automatic Termination of Cover and Five Powers War Exclusion Clause as follows:
This extension of cover may be cancelled by either the Club or the Assured giving 7 days’ notice (such cancellation becoming effective on the expiry of 7 days from midnight of the day on which notice of cancellation is issued by or to the Club). The Club agrees however to reinstate cover, if required, at terms to be agreed between the Club and the Assured, prior to the expiry of such notice of cancellation.
2. Automatic Termination of Cover
Whether or not notice of cancellation has been given this
extension of cover shall terminate automatically
2.1 upon the outbreak of war (whether there be a declaration of war or not) between any of the following: United Kingdom, United States of America, France, the Russian Federation, the People’s Republic of China;
2.2 in respect of any ship in the event of such ship being requisitioned either for title or use.
3. Five Powers War Exclusion
This extension of cover excludes
3.1 loss damage liability or expense arising from
3.1.1 the outbreak of war (whether there be a declaration of war or not) between any of the following: United Kingdom, United States of America, France, the Russian Federation, the People’s Republic of China;
3.1.2 requisition either for title or use.
E. This insurance is not subject to the current navigation limitations for Hull War, Piracy, Terrorism and Related Perils, but cover may be cancelled by either the Club or the Assured giving seven days’ notice (such cancellation becoming effective on the expiry of seven days from midnight GMT on the day on which Notice of Cancellation is issued by or to the Managers).
F. However, in no case shall this extension cover loss, damage, liability or expense directly or indirectly caused by or contributed to, by or arising from any chemical, biological, bio-chemical or electromagnetic weapon.