Appendix I: Clauses
This Appendix contains full wordings of clauses which may be incorporated, where contractually agreed, in the terms and conditions on which a ship is entered in the Association by, or on behalf of the Owner, by means of a short form reference to such clause in the Certificate of Entry or in an Endorsement Slip.
Attention is drawn to Rule 5L & Rule 7 concerning the exclusion of the Insurance Act 2015.
This entry is to cover the time and/or voyage and/or slot charterer(s), being a charterer which is affiliated to or associated with the Member insured under the same entry and named in this Certificate of Entry/Endorsement in respect of claims recoverable under the Rules and terms of entry set out herein.
This entry is subject to the terms of Rule 5(B) and the aggregate amount recoverable from the Association by all such charterer(s) named as co-assured(s) in respect of all claims arising out of any event, or (for cargo claims) any one cargo voyage, is limited to a maximum of US$350 million,
PROVIDED ALWAYS that:
- for any and all claims in respect of oil pollution, the aggregate amount recoverable by all the joint owners named above shall in no event exceed US$1,000 million any one event, and shall be subject to provisos (a) and (b) of Rule 5(B)(ii).
- for any and all claims
i. in respect of liability to Passengers, the aggregate amount recoverable by all the joint owners named above shall in no event exceed US$2,000 million any one event and
ii. in respect of liability to Passengers and Seamen, the aggregate amount recoverable by all the joint owners named above shall in no event exceed US$3,000 million any one event.
Conduct of any one of the parties insured hereunder which is sufficient to bar that insured’s right under this entry shall bar the rights of recovery of all the said insureds.
This entry is extended to cover the Owner’s liabilities, incurred as space charterer of a Consortium Vessel operating in a consortium identified in the Certificate of Entry/Endorsement, arising out of the carriage of cargo and excluding any physical damage to such a Consortium Vessel, its equipment or containers on board, but only where space is exchanged or shared on a reciprocal basis as defined below. This entry is subject to the Rules and the terms and conditions of entry of the entered ship and the aggregate amount recoverable from the Association under this entry in respect of all claims arising out of any one event, or (for cargo claims) any one cargo voyage, is limited:
a) in respect of all entered ships employed in the consortium to a maximum of US$350 million,
b) where the Owner has ships entered in the Association and any other insurer which is a party to the Pooling Agreement, to that proportion of a maximum of US$350 million as the claims incurred by the Association bear to the claims incurred by the Association and any such other insurers.
PROVIDED ALWAYS that for any and all claims in respect of oil pollution, the aggregate amount recoverable by the Owner in respect of any one entered ship and any Consortium Vessel shall not exceed US$1,000 million any one event, and shall be subject to provisos (a) and (b) of Rule 5(B)(ii).
An exchange or sharing a space will be on a reciprocal basis if the intention is that the space given and taken is broadly in balance.
1 Subject only to the other provisions of this MLC Extension (“the Extension”), the Association shall discharge and pay on the Member’s behalf under the 2006 Maritime Labour Convention as amended (MLC 2006) or domestic legislation by a State Party implementing MLC 2006:
(a) Liabilities in respect of outstanding wages and repatriation of a seafarer together with costs and expenses incidental thereto in accordance with Regulation 2.5, Standard A2.5 and Guideline B2.5; and
(b) Liabilities in respect of compensating a seafarer for death or long-term disability in accordance with Regulation 4.2, Standard A4.2 and Guideline B4.2.
2 The Member shall reimburse the Association in full:
(a) any claim paid under paragraph 1(a) save to the extent that such claim is in respect of liabilities, costs or expenses recoverable under Rule 2, Sections 2, 3, 4(A), or 6, and
(b) any claim paid under paragraph 1(b) save to the extent that such claim is in respect of liabilities, costs or expenses recoverable under Rule 2, Sections 2 or 3.
3 There shall be no payment under paragraph 1(a) or paragraph 1(b) if and to the extent that the liability, cost or expense is recoverable under any social security scheme or fund, separate insurance or any other similar arrangement.
4 The Association shall not discharge or pay any liabilities, costs or expenses under paragraph 1(a) or paragraph 1(b), irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the Member or the Member’s servants or agents, where such liabilities, costs or expenses were directly or indirectly caused by or contributed to by or arise from:
(a) Any chemical, biological, bio-chemical or electromagnetic weapon
(b) The use or operation, as a means for inflicting harm, of any computer system, computer software programme, computer virus or process, or any other electronic system.
5 (a) The Extension may be cancelled in respect of War Risks by the Association on 30 days’ notice to the Member (such cancellation becoming effective on the expiry of 30 days from midnight of the day on which notice of cancellation is issued).
(b) Whether or not such notice of cancellation has been given the Extension hereunder shall terminate automatically in respect of the War Risks:
(i) 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;
(ii) In respect of any ship, in connection with which cover is granted hereunder, in the event of such ship being requisitioned either for title or use.
(c) The Extension excludes loss, damage, liability or expense arising from:
(i) The outbreak of war (whether there be a declaration of war or not) between any of the following: the UK, the USA, France, The Russian Federation, the People’s Republic of China;
(ii) Requisition for title or use.
6 The Extension shall be subject to Rules 5(F) and 5(V).
7 Without prejudice to paragraph 5, cover under the Extension shall cease 30 days after notice of termination in accordance with Regulation 2.5, Standard A188.8.131.52 or Regulation 4.2, Standard A4.2.12.
8 Any dispute arising out of or in connection with the Extension shall be resolved in accordance with Rule 40.
9 For the purpose of the Extension:
“Member” means any insured party who is liable for the payment of calls, contributions, premium or other sums due under the terms of entry. “Seafarer” shall have the same meaning as in MLC 2006.
“War Risks” means the risks set out in Rule 5(E).