INSTITUTE CLAUSES FOR BUILDERS’ RISKS
This insurance is subject to English law and practice
VESSEL ............................................................................................................. Contract or Yard No .........................................
BUILDERS .......................................................................................................................................................................................
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BUILDERS’ YARDS .......................................................................................................................................................................
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SUBJECT OF INSURANCE
(Where more than one part of the subject-matter insured is described in Section I(A), Section I(B) or Section II below, then
the respective wording of Section I(A), Section I(B) or Section II shall be applied to each part separately.)
SECTION I. Provisional Period ..................................from .....................................................................................................
but this insurance to terminate upon delivery to Owners if prior to expiry of Provisional Period.
(A) HULL and MACHINERY etc. under construction at the yard or other premises of the Builders.
The subject-matter of this sub-section (A) is covered whilst at Builders’ Yard and at Builders’ premises elsewhere within the
port or place of construction at which the Builders’ Yard is situated and whilst in transit between such locations.
The Underwriters’ liability in respect of each item of this sub-section (A) which is at such locations shall attach from
the time:—
(i) of inception of this Section I if such item has already allocated to the Vessel;
(ii) of delivery to Builders of such item (if allocated when delivered after inception of this Section I;
(iii) of allocation by Builders if allocated after inception of this Section I.
(B) MACHINERY etc. insured hereon whilst under construction by Sub-Contractors.
The subject-matter of this sub-section (B) is covered whilst at Sub-Contractors’ works and at Sub-Contractors’ premises
elsewhere within the port or place of construction at which the Sub-Contractors’ works are situated and whilst in transit
between such locations.
The Underwriters’ liability in respect of each item of this sub-section (B) which is at such locations shall attach from
the time:
(i) of inception of this Section I if such item has already been allocated to the Vessel;
(ii) of delivery to the Sub-Contractors of such item (if allocated) when delivered after inception of this Section I;
(iii) of allocation by the Sub-Contractors if allocated after inception of this Section I.
The subject-matter of this subsection (B) is also covered whilst:
(a) in transit to Builders if the transit is within the port or place of construction at which the Builders’ Yard
is situated;
(b) at Builders’ Yard and at Builders’ premises elsewhere within the port or place of construction at which the
Builders’ Yard is situated and whilst in transit between such locations.
SECTION II. Provisional Period ..................................from .....................................................................................................
but this insurance to to terminate upon delivery to Owners if prior to expiry of Provisional Period.
MACHINERY etc. insured hereon from delivery to Builders.
The subject-matter of this Section II is covered whilst at Builders’ Yard and at Builders’ premises elsewhere within the
port or place of construction at which the Builders’ Yard is situated and whilst in transit between such locations. The
Underwriters’ liability in respect of each item of this Section II shall attach from the time of delivery to Builders.
Description Contract or Yard No. Provisionally alued at To be built at/by
Description Contract or Yard No. Provisionally alued at To be built at/by
Description Contract or Yard No. Provisionally valued at To be built at/by
(Continued) 213
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1 INSURED VALUE
1.1 Whereas the value stated herein is provisional, it is agreed that the final contract price, or the total building
cost plus ........................................ % whichever is the greater, of the subject-matter of this insurance
shall be the insured value.
1.2 Should the insured value. determined as above,
1.2.1 exceed the provisional value stated herein, the Assured agree to declare to the Underwriters hereon
the amount of such excess and to pay premium thereon at the full policy rates, and the Underwriters
agree to accept their proportionate shares of the increase,
or
1.2.2 be less than the provisional value stated herein, the sum insured by this insurance shall be reduced
proportionately and the Underwriters agree to return premium at the full policy rates on the amounts
by which their respective lines are reduced.
1.3 Nevertheless, should the insured value exceed 125% of the provisional value, then the limits of indemnity
under this insurance shall be 125% of the provisional value, any one accident or series of accidents arising
out of the same event.
1.4 Notwithstanding the above it is understood and agreed that any variation of the value for insurance on
account of a material alteration in the plans or fittings of the Vessel or a change in type from that originally
contemplated does not come within the scope of this clause and such a variation requires the specific
agreement of the Underwriters.
2 TRANSIT
Held covered at a premium to be arranged for transit not provided for in Section I or II above
3 DELAYED DELIVERY
Held covered at a premium to be arranged in the event of delivery to Owners being delayed beyond the
provisional period(s) mentioned above, but in no case shall any additional period of cover extend beyond 30
days from completion of Builders’ Trials.
4 DEVIATION OR CHANGE OF VOYAGE
Held covered in case of deviation or change of voyage, provided notice be given to the Underwriters immediately
after receipt of advices and any amended terms of cover and any additional premium required by them be agreed.
5 PERILS
5.1 SUBJECT ALWAYS TO ITS TERMS, CONDITIONS AND EXCLUSIONS this insurance is against
all risks of loss of or damage to the subject-matter insured caused and discovered during the period of
this insurance including the cost of repairing replacing or renewing any defective part condemned solely
in consequence of the discovery therein during the period of this insurance of a latent defect. In no case
shall this insurance cover the cost of renewing faulty welds.
5.2 In case of failure of launch, the Underwriters to bear all subsequent expenses incurred in completing launch.
6 EARTHQUAKE AND VOLCANIC ERUPTION EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by earthquake or volcanic eruption.
This exclusion applies to all claims including claims under Clauses 13, 17, 19 and 20.
7 POLLUTION HAZARD
This insurance covers loss of or damage to the Vessel caused by any governmental authority acting under the powers
vested in it to prevent or mitigate a pollution hazard, or threat thereof, resulting directly from damage to the Vessel
for which the Underwriters are liable under this insurance, provided such act of governmental authority has not
resulted from want of due diligence by the Assured, the Owners, or Managers of the Vessel or any of them to
prevent or mitigate such hazard or threat. Master, Officers, Crew or Pilots not to be considered Owners within
the meaning of this Clause 7 should they hold shares in the Vessel.
8 FAULTY DESIGN
Notwithstanding anything to the contrary which may be contained in the Policy or the clauses attached thereto,
this insurance includes loss of or damage to the subject-matter insured caused and discovered during the period
of this insurance arising from faulty design of any part or parts thereof but in no case shall this insurance extend
to cover the cost or expense of repairing, modifying, replacing or renewing such part or parts, nor any cost or
expense incurred by reason of betterment or alteration in design.
9 NAVIGATION
9.1 With leave to proceed to and from any wet or dry docks, harbours, ways, cradles and pontoons within
the port or place of construction and to proceed under own power, loaded or in ballast, as often as required,
for fitting out, docking, trials or delivery, within a distance by water of 250 nautical miles of the port
or place of construction, or held covered at a premium to be arranged in the event of such distance being
exceeded.
9.2 Any movement of the Vessel in tow outside the port or place of construction held covered at a premium
to be arranged, provided previous notice be given to the Underwriters.
10 DEDUCTIBLE
10.1 No claim arising from a peril insured against shall be payable under this insurance unless the aggregate
of all such claims arising out of each separate accident or occurrence (including claims under Clauses 13,
17, 19 and 20) exceeds............................................................................ in which case this sum shall be
deducted. Nevertheless the expense of sighting the bottom after stranding, if reasonably incurred specially
for that purpose, shall be paid even if no damage be found. This Clause 10.1 shall not apply to a claim
for total or constructive total loss of the Vessel or, in the event of such a claim, to any associated claim
under Clause 20 arising from the same accident or occurrence.
10.2 Claims for damage by heavy weather occurring during a single sea passage between two successive ports
shall be treated as being due to one accident. In the case of such heavy weather extending over a period
not wholly covered by this insurance the deductible to be applied to the claim recoverable hereunder shall
be the proportion of the above deductible that the number of days of such heavy weather falling within
the period of this insurance bears to the number of days of heavy weather during the single sea passage.
The expression “heavy weather” in this Clause 10.2 shall be deemed to include contact with floating ice.
10.3 Excluding any interest comprised therein, recoveries against any claim which is subject to the above deductible
shall be credited to the Underwriters in full to the extent of the sum by which the aggregate of the claim
unreduced by any recoveries exceeds the above deductible.
10.4 Interest comprised in recoveries shall be apportioned between the Assured and the Underwriters, taking
into account the sums paid by the Underwriters and the dates when such payments were made, notwithstanding
that by the addition of interest the Underwriters may receive a larger sum than they have paid.
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11 UNREPAIRED DAMAGE
11.1 The measure of indemnity in respect of claims for unrepaired damage shall be the reasonable depreciation
in the market value of the Vessel at the time this insurance terminates arising from such unrepaired damage,
but not exceeding the reasonable cost of repairs.
11.2 In no case shall the Underwriters be liable for unrepaired damage in the event of a subsequent total loss
(whether or not covered under this insurance) sustained during the period covered by this insurance or
any extension thereof.
11.3 The Underwriters shall not be liable in respect of unrepaired damage for more than the insured value
at the time this insurance terminates.
12 CONSTRUCTIVE TOTAL LOSS
12.1 In ascertaining whether the subject-matter insured is a constructive total loss, the insured value shall be
taken as the repaired value and nothing in respect of the damaged or break-up value shall be taken into
account.
12.2 No claim for constructive total loss based upon the cost of recovery and/or repair shall be recoverable
hereunder unless such cost would exceed the insured value. In making this determination, only the cost
relating to a single accident or sequence of damages arising from the same accident shall be taken into
account.
13 GENERAL AVERAGE AND SALVAGE
13.1 This insurance covers the Vessel’s proportion of salvage, salvage charges and/or general average, reduced
in respect of any under-insurance, but in case of general average sacrifice of the Vessel the Assured may
recover in respect of the whole loss without first enforcing their right of contribution from other parties.
13.2 Adjustment to be according to the law and practice obtaining at the place where the adventure ends, as
if the contract of affreightment contained no special terms upon the subject; but where the contract of
affreightment so provides the adjustment shall be according to the York-Antwerp Rules.
13.3 When the Vessel sails in ballast, not under charter, the provisions of the York-Antwerp Rules, 1974 (excluding
Rules XX and XXI) shall be applicable, and the voyage for this purpose shall be deemed to continue from
the port or place of departure until the arrival of the Vessel at the first port or place thereafter other than
a port or place of refuge or a port or place of call for bunkering only. If at any such intermediate port
or place there is an abandonment of the adventure originally contemplated the voyage shall thereupon
be deemed to be terminated.
13.4 No claim under this Clause 13 shall in any case be allowed where the loss was not incurred to avoid or
in connection with the avoidance of a peril insured against.
14 NOTICE OF CLAIM
In the event of loss damage liability or expense which may result in a claim under this insurance, prompt notice
shall be given to the Underwriters prior to repair and, if the subject-matter is under construction abroad, to the
nearest Lloyd’s Agent so that a surveyor may be appointed to represent the Underwriters should they so desire.
15 CHANGE OF INTEREST
Any change of interest in the subject-matter insured shall not affect the validity of this insurance.
16 ASSIGNMENT
No assignment of or interest in this insurance or in any moneys which may be or become payable thereunder is
to be binding on or recognised. by the Underwriters unless a dated notice of such assignment or interest signed
by the Assured, and by the assignor in the case of subsequent assignment, is endorsed on the Policy and the Policy
with such endorsement is produced before payment of any claim or return of premium thereunder.
17 COLLISION LIABILITY
17.1 The Underwriters agree to indemnify the Assured for any sum or sums paid by the Assured to any other
person or persons by reason of the Assured becoming legally liable by way of damages for
17.1.1 loss of or damage to any other vessel or property on any other vessel
17.1.2 delay to or loss of use of any such other vessel or property thereon
17.1.3 general average of, salvage of, or salvage under contract of, any such other vessel or property thereon,
where such payment by the Assured is in consequence of the Vessel hereby insured coming into collision
with any other vessel.
17.2 The indemnity provided by this Clause 17 shall be in addition to the indemnity provided by the other
terms and conditions of this insurance and shall be subject to the following provisions:
17.2.1 Where the insured Vessel is in collision with another vessel and both vessels are to blame then, unless
the liability of one or both vessels becomes limited by law, the indemnity under this Clause 17 shall
be calculated on the principle of cross-liabilities as if the respective Owners had been compelled to
pay to each other such proportion of each other’s damages as may have been properly allowed in
ascertaining the balance or sum payable by or to the Assured in consequence of the collision.
17.2.2 In no case shall the Underwriters’ total liability under Clause 17.1 and 17.2 exceed their proportionate
part of the insured value of the Vessel hereby insured in respect of any one such collision.
17.3 The Underwriters will also pay the legal costs incurred by the Assured or which the Assured may be compelled to
pay in contesting liability or taking proceedings to limit liability, with the prior written consent of the
Underwriters.
EXCLUSIONS
17.4 Provided always that this Clause 17 shall in no case extend to any sum which the Assured shall pay for
in respect of
17.4.1 removal or disposal of obstructions, wrecks, cargoes or any other thing whatsoever
17.4.2 any real or personal property or thing whatsoever except other vessels or property on other vessels
17.4.3 the cargo or other property on, or the engagements of, the insured Vessel
17.4.4 loss of life, personal injury or illness
17.4.5 pollution or contamination of any real or personal property or thing whatsoever (except other vessels
with which the insured Vessel is in collision or property on such other vessels).
18 SISTERSHIP
Should the Vessel hereby insured come into collision with or receive salvage services from another vessel belonging
wholly or in part to the same Owners or under the same management, the Assured shall have the same rights under
this insurance as they would have were the other vessel entirely the property of Owners not interested in the Vessel
hereby insured; but in such cases the liability for the collision or the amount payable for the services rendered
shall be referred to a sole arbitrator to be agreed upon between the Underwriters and the Assured.
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(Continued) 215
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19 PROTECTION AND INDEMNITY
19.1 The Underwriters agree to indemnify the Assured for any sum or sums paid by the Assured to any other
person or persons by reason of the Assured becoming legally liable, as Owner of the Vessel, for any claim,
demand, damages and/or expenses, where such liability is in consequence of any of the following matters
or things and arises from an accident or occurrence during the period of this insurance:
19.1.1 loss of or damage to any fixed or movable object or property or thing or interest whatsoever,
other than the Vessel, arising from any cause whatsoever in so far as such loss or damage is not
covered by Clause 17
19.1.2 any attempted or actual raising, removal or destruction of any fixed or movable object or property
or other thing, including the wreck of the Vessel, or any neglect or failure to raise, remove, or destroy
the same
19.1.3 liability assumed by the Assured under contracts of customary towage for the purpose of entering
or leaving port or manoeuvring within the port
19.1.4 loss of life, personal injury, illness or payments made for life salvage.
19.2 The Underwriters agree to indemnify the Assured for any of the following arising from an accident or
occurrence during the period of this insurance:
19.2.1 the additional cost of fuel, insurance, wages, stores, provisions and port charges reasonably incurred
solely for the purpose of landing from the Vessel sick or injured persons or stowaways, refugees,
or persons saved at sea
19.2.2 additional expenses brought about by the outbreak of infectious disease on board the Vessel or ashore
19.2.3 fines imposed on the Vessel, on the Assured, or on any Master Officer crew member or agent of
the Vessel who is reimbursed by the Assured, for any act or neglect or breach of any statute or regulation
relating to the operation of the Vessel, provided that the Underwriters shall not be liable to indemnify
the Assured for any fines which result from any act neglect failure or default of the Assured their
agents or servants other than Master Officer or crew member
19.2.4 the expenses of the removal of the wreck of the Vessel from any place owned, leased or occupied
by the Assured
19.2.5 legal costs incurred by the Assured, or which the Assured may be compelled to pay, in avoiding,
minimising or contesting liability with the prior written consent of the Underwriters.
EXCLUSIONS
19.3 Notwithstanding the provisions of Clauses 19.1 and 19.2 this Clause 19 does not cover any liability cost
or expense arising in respect of:
19.3.1 any direct or indirect payment of the Assured under workmen’s compensation or employers’ liability
acts and any other statutory or common law, general maritime law or other liability whatsoever in
respect of accidents to or illness of workmen or any other persons employed in any capacity whatsoever
by the Assured or others in on or in connection with the Vessel or her cargo materials or repairs
19.3.2 liability assumed by the Assured under agreement expressed or implied in respect of death or illness
of or injury to any person employed under a contract of service or apprenticeship by the other party
to such agreement
19.3.3 punitive or exemplary damages, however described
19.3.4 cargo or other property carried, to be carried or which has been carried on board the Vessel but
this Clause 19.3.4 shall not exclude any claim in respect of the extra cost of removing cargo from
the wreck of the Vessel
19.3.5 loss of or damage to property, owned by builders or repairers or for which they are responsible,
which is on board the Vessel
19.3.6 liability arising under a contract or indemnity in respect of containers, equipment, fuel or other property
on board the Vessel and which is owned or leased by the Assured
19.3.7 cash, negotiable instruments, precious metals or stones, valuables or objects of a rare or precious
nature, belonging to persons on board the Vessel, or non-essential personal effects of any Master,
Officer or crew member
19.3.8 fuel, insurance, wages, stores, provisions and port charges arising from delay to the Vessel while
awaiting a substitute for any Master, Officer or crew member
19.3.9 fines or penalties arising from overloading or illegal fishing
19.3.10 pollution or contamination of any real or personal property or thing whatsoever.
19.4 The indemnity provided by this Clause 19 shall be in addition to the indemnity provided by the other
terms and conditions of this insurance.
19.5 Where the Assured or the Underwriters may or could have limited their liability the indemnity under this
Clause 19 in respect of such liability shall not exceed Underwriters’ proportionate part of the amount
of such limitation.
19.6 In no case shall the Underwriters’ liability under this Clause 19 in respect of each separate accident or
occurrence or series of accidents arising out of the same event, exceed their proportionate part of the
insured value of the Vessel.
19.7 PROVIDED ALWAYS THAT
19.7.1 prompt notice must be given to the Underwriters of every casualty event or claim upon the Assured
which may give rise to a claim under this Clause 19 and of every event or matter which may cause
the Assured to incur liability costs or expense for which he may be insured under this Clause 19
19.7.2 the Assured shall not admit liability for or settle any claim for which he may be insured under this
Clause 19 without the prior written consent of the Underwriters.
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20 DUTY OF ASSURED (SUE AND LABOUR)
20.1 In case of any loss or misfortune it is the duty of the Assured and their servants and agents to take such
measures as may be reasonable for the purpose of averting or minimising a loss which would be recoverable
under this insurance.
20.2 Subject to the provisions below and to Clause 10 the Underwriters will contribute to charges properly
and reasonably incurred by the Assured their servants or agents for such measures. General average, salvage
charges (except as provided for in Clause 20.4) collision defence or attack costs and costs incurred by
the Assured in avoiding, minimising or contesting liability covered by Clause 19 are not recoverable under
this Clause 20.
20.3 Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering
the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise
prejudice the rights of either party
20.4 When a claim for total loss of the subject-matter insured is admitted under this insurance and expenses
have been reasonably incurred in saving or attempting to save the subject-matter insured and other property
and there are no proceeds, or the expenses exceed the proceeds, then this insurance shall bear its pro rata
share of such proportion of the expenses, or of the expenses in excess of the proceeds, as the case may
be as may reasonably be regarded as having been incurred in respect of the subject-matter insured.
20.5 The sum recoverable under this Clause 20 shall be in addition to the loss otherwise recoverable under
this insurance but shall in no circumstances exceed the amount insured under this insurance in respect
of the Vessel.
The following clauses shall he paramount and shall override anything contained in this insurance inconsistent therewith.
21 WAR EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by
21.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or
against a belligerent power
21.2 capture seizure arrest restraint or detainment (barratry and piracy excepted), and the consequences thereof
or any attempt thereat
21.3 derelict mines torpedoes bombs or other derelict weapons of war.
22 STRIKES EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by
22.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions
22.2 any terrorist or any person acting from a political motive.
23 MALICIOUS ACTS EXCLUSION
In no case shall this insurance cover loss damage liability or expense arising from
23.1 the detonation of an explosive
23.2 any weapon of war
and caused by any person acting maliciously or from a political motive.
24 NUCLEAR EXCLUSION,
In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed
to by or arising from
24.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear
waste from the combustion of nuclear fuel
24.2 the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear
component thereof
24.3 any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive
force or matter.
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CL. 351. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters 217
CL. 351. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters 217
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1/6/88 “These clauses are purely illustrative. Different policy conditions may be agreed. The specimen clauses are available to any interested person upon request. In particular:
(a) in relation to any clause which excludes losses from the cover, insurers may agree a separate insurance policy covering such losses or may extend the clause to
cover such events;
(b) in relation to clauses making cover of certain risks subject to specific conditions each insurer may alter the said conditions”.
(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
INSTITUTE WAR CLAUSES
BUILDERS’ RISKS
This insurance is subject to English law and practice
1 ATTACHMENT
This insurance shall not attach to the subject-matter insured until the Vessel is launched and then shall attach only
to such part of the subject-matter as is built into or is in or on the Vessel at the time of the launch. The insurance
against the said risks shall attach to the remainder of the subject-matter insured only as it is placed in or on the
Vessel subsequent to the launch.
2 PERILS
Subject always to the exclusions hereinafter referred to, this insurance covers loss of or damage to the subjectmatter
insured caused by
2.l war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or
against a belligerent power
2.2 capture seizure arrest restraint or detainment, arising from perils covered under 2.1 above, and the
consequences thereof or any attempt thereat
2.3 derelict mines torpedoes bombs or other derelict weapons of war.
3 PROTECTION AND INDEMNITY
This insurance also covers, subject to the limitation of liability provided for in Clauses 19.5 and 19.6 of the Institute
Clauses for Builders’ Risks 1/6/88, the liability under Clause 19 of the Institute Clauses for Builders’ Risks 1/6/88
which is excluded by Clauses 21, 22.2 and 23.
Provided however that such cover shall not attach until the vessel is launched.
4 INCORPORATION
The Institute Clauses for Builders’ Risks 1/6/88 except Clauses 4, 5.1 and 5.2, 7, 8, 21, 22, 23 and 24 are deemed
to be incorporated in this insurance, in so far as they do not conflict with the provisions of these clauses.
5 DETAINMENT
In the event that the Vessel shall have been the subject of capture seizure arrest restraint or detainment, and the
Assured shall thereby have lost the free use and disposal of the Vessel for a continuous period of 12 months then
for the purpose of ascertaining whether the Vessel is a constructive total loss the Assured shall be deemed to have
been deprived of the possession of the Vessel without any likelihood of recovery.
6 EXCLUSIONS
This insurance excludes
6.1 loss damage liability or expense arising from
6.1.1 any detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other
like reaction or radioactive force or matter, hereinafter called a nuclear weapon of war
6.1.2 the outbreak of war (whether there be a declaration of war or not) between any of the following
countries:
United Kingdom United States of America, France, the Union of Soviet Socialist Republics,
the People’s Republic of China
6.1.3 confiscation expropriation requisition or pre-emption
6.1.4 capture seizure arrest restraint or detainment by or under the order of the government or any public
or local authority of the country in which the Vessel is owned or registered
6.1.5 arrest restraint or detainment under quarantine regulations or by reason of infringement of any customs
or trading regulations
6.1.6 the operation of ordinary judicial process, failure to provide security or to pay any fine or penalty
or any financial cause
6.1.7 any claims based upon loss of or frustration of any voyage or contract for sale or other adventure,
6.2 loss damage liability or expense covered by the Institute Clauses for Builders’ Risks 1/6/88 or which would
be recoverable thereunder but for Clause 10 thereof,
6.3 any claim for any sum recoverable under any other insurance on the property hereby insured or which
would be recoverable under such insurance but for the existence of this insurance,
6.4 any claim for expenses arising from delay except such expenses as would be recoverable in principle in
English law and practice under the York-Antwerp Rules 1974.
7 TERMINATION
7.1 This insurance may be cancelled by either the Underwriters 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 Underwriters). The Underwriters agree however to reinstate this insurance
subject to agreement between the Underwriters and the Assured prior to the expiry of such notice of
cancellation as to new rate of premium and/or conditions and/or warranties.
7.2 Whether or not such notice of cancellation has been given this insurance shall TERMINATE
AUTOMATICALLY
7.2.1 upon the occurrence of any hostile detonation of any nuclear weapon of war as defined in Clause
6.1.1 wheresoever or whensoever such detonation may occur and whether or not the Vessel may be
involved
7.2.2 upon the outbreak of war (whether there be a declaration of war or not) between any of the
following countries:
United Kingdom, United States of America, France, the Union of Soviet Socialist Republics,
the People’s Republic of China
7.2.3 in the event of the Vessel being requisitioned, either for title or use.
7.3 In the event either of cancellation by notice or of automatic termination of this insurance by reason of
the operation of this Clause 7 pro rata net return of premium shall be payable to the Assured.
This insurance shall not become effective if, subsequent to its acceptance by the Underwriters and prior to the intended
time of its attachment, there has occurred any event which would have automatically terminated this insurance under
the provisions of Clause 7 above.
218 CL. 349. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters
SPECIMEN
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1/6/88 “These clauses are purely illustrative. Different policy conditions may be agreed. The specimen clauses are available to any interested person upon request. In particular:
(a) in relation to any clause which excludes losses from the cover, insurers may agree a separate insurance policy covering such losses or may extend the clause to
cover such events;
(b) in relation to clauses making cover of certain risks subject to specific conditions each insurer may alter the said conditions”.
(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
INSTITUTES STRIKES CLAUSES
BUILDERS’ RISKS
This insurance is subject to English law and practice
1 PERILS
Subject always to the exclusions hereinafter referred to, this insurance covers loss of or damage to the subjectmatter
insured caused by
1.1 strikers. locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions
1.2 any terrorist or any person acting maliciously or from a political motive.
2 PROTECTION AND INDEMNITY
This insurance also covers, subject to the limitation of liability provided for in Clauses 19.5 and 19.6 of the Institute
Clauses for Builders’ Risks 1/6/88, the liability under Clause 19 of the Institute Clauses for Builders’ Risks 1/6/88
which is excluded by Clause 22.1.
3 INCORPORATION
The Institute Clauses for Builders’ Risks 1/6/88 are deemed to be incorporated in this insurance, in so far as they
do not conflict with the provisions of these clauses, but this insurance excludes any claim which would be recoverable
under the said clauses.
4 RETURNS OF PREMIUM
No return of premium hereunder unless specially agreed.
5 EXCLUSIONS
This insurance excludes
5.1 any loss of or damage to the subject-matter insured covered by the Institute War Clauses Builders’ Risks
1/6/88
5.2 any claim for expenses arising from delay except such expenses as would be recoverable in principle in
English law and practice under the York-Antwerp Rules 1974
5.3 piracy (but this exclusion shall not affect cover under Clause 1.1)
5.4 any claim based upon loss of or frustration of any voyage or contract for sale or other adventure.
The following clauses shall he paramount and shall override anything contained in this insurance inconsistent therewith.
6 WAR EXCLUSION
In no case shall this insurance cover loss damage or expense caused by war civil war revolution rebellion insurrection,
or civil strife arising therefrom, or any hostile act by or against a belligerent power.
7 NUCLEAR EXCLUSION
In no case shall this insurance cover loss damage liability or expense directly or indirectly caused by or contributed
to by or arising from
7.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear
waste from the combustion of nuclear fuel
7.2 the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear
component thereof
7.3 any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive
force or matter.
CL. 350. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters 219
CL. 350. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters 219
SPECIMEN
SPECIMEN
SPECIMEN
1
2
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1/6/88 “These clauses are purely illustrative. Different policy conditions may be agreed. The specimen clauses are available to any interested person upon request. In particular:
(a) in relation to any clause which excludes losses from the cover, insurers may agree a separate insurance policy covering such losses or may extend the clause to
cover such events;
(b) in relation to clauses making cover of certain risks subject to specific conditions each insurer may alter the said conditions”.
(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
BUILDERS’ RISKS
INSTITUTE CLAUSE FOR LIMITATION OF LIABILITY IN RESPECT OF
FAULTY DESIGN & P. & I. RISKS
(Inst. F.D. & P. & I. Clause)
Notwithstanding anything to the contrary which may be contained in the Policy or the clauses attached thereto:—
(1) This insurance includes loss of or damage to the subject-matter insured caused and discovered during the
period of this insurance arising from faulty design of any part or parts thereof but in no case shall this
insurance extend to cover the cost or expense of repairing, modifying, replacing or renewing such part
or parts, nor any cost or expense incurred by reason of betterment or alteration in design.
(2) The amount recoverable under the Protection and Indemnity Clause in respect of any one accident or
series of accidents arising out of the same event shall in no case exceed the sum hereby insured.
CL. 352. Sold by Witherby & Co. Ltd., London. — © Copyright — The Institute of London Underwriters
1/12/72 “These clauses are purely illustrative. Different policy conditions may be agreed. The specimen clauses are available to any interested person upon request. In particular:
(a) in relation to any clause which excludes losses from the cover, insurers may agree a separate insurance policy covering such losses or may extend the clause to
cover such events;
(b) in relation to clauses making cover of certain risks subject to specific conditions each insurer may alter the said conditions”.
INSTITUTE DEDUCTIBLE CLAUSE
BUILDERS’ RISKS
Notwithstanding anything to the contrary which may he contained in the
Policy or the clauses attached thereto, no claim arising from a peril insured against
shall be payable under this insurance unless the aggregate of all such claims arising
out of each separate accident or occurrence (including claims under the Collision,
Protection and Indemnity, Removal of Wreck, and Suing and Labouring Clauses)
exceeds ............................................................... in which case this sum shall be deducted.
Nevertheless the expense of sighting the bottom after stranding, if reasonably
incurred specially for that purpose, shall be paid even if no damage be found. This
paragraph shall not apply to a claim for total or constructive total loss of the
subject matter insured.
Claims for damage by heavy weather occurring during a single sea passage
between two successive ports shall be treated as being due to one accident. In the
case of such heavy weather extending over a period not wholly covered by this
insurance the deductible to be applied to the claim recoverable hereunder shall be
the proportion of the above deductible that the number of days of such heavy
weather falling within the period of this insurance bears to the number of days of
heavy weather during the single sea passage.
The expression “heavy weather” in the preceding paragraph shall be deemed
to include contact with floating ice.
Excluding any interest comprised therein, recoveries against any claim which
is subject to the above deductible shall be credited to the Underwriters in full to
the extent of the sum by which the aggregate of the claim unreduced by any
recoveries exceeds the above deductible.
Interest comprised in recoveries shall be apportioned between the Assured and
the Underwriters, taking into account the sums paid by Underwriters and the dates
when such payments were made, notwithstanding that by the addition of interest
the Underwriters may receive a larger sum than they have paid.
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