Clause 7 - Applications for Insurance
A. The Applicant Assured must make to the Managers a fair presentation of the risks by providing the Managers with all circumstances which the Applicant Assured knows or ought to know would influence the Club in deciding whether and on what terms to provide cover,
B. The Applicant Assured and its agent shall ensure that every material representation as to a matter of fact is substantially correct, and every material representation as to a matter of expectation or belief is made in good faith.
C. In accordance with Clause 5L of these Terms & Conditions, Section 8 of the Insurance Act 2015 is excluded. Any breach of paragraphs A and B above shall entitle the Club to avoid the contract of insurance, regardless of whether the breach is innocent, deliberate or reckless.
D. The Assured is obliged to disclose every change in circumstance which the Assured or its agent knows or ought to know alters or may alter the risks covered by the Club. Upon such disclosure, or failure to disclose, the Managers may amend the Assured’s premium or terms of entry, or terminate the policy in respect of such ship with effect from the time of disclosure or failure to disclose.
E. The Managers shall be entitled, in their discretion and without assigning any reason, to refuse any application for the entry of a ship for insurance in the Club whether or not the Applicant Assured of such a ship is a Member.
F. Unless otherwise agreed in writing by the Managers, and without prejudice to the generality of this Clause, the following additional requirements apply to entries where, upon written agreement between the Assured and the Managers, the Assured may declare risks in arrears:
i. the Assured warrants that all ships chartered by the Assured and/ or its affiliate or associate during the policy year shall be entered solely with the Club.
ii. declarations by the Assured shall be made no later than 90 days or such other period as it is agreed in writing by the Managers from the date the Assured becomes Charterer.
iii. a breach of any of the conditions in i) and ii) above shall entitle the Club to amend the Assured’s premium or other terms of entry, including but not limited to declining or restricting cover, or to terminate the insurance effective from the expiry of 7 days’ notice.