Institute Time Clauses - Hulls 1.10.83
This insurance is subject to English law and practice
1 NAVIGATION
1.1 The Vessel is covered subject to the provisions of this insurance at all times and has leave to
sail or navigate with or without pilots, to go on trial trips and to assist and tow vessels or craft
in distress, but it is warranted that the Vessel shall not be towed, except as is customary or
to the first safe port or place when in need of assistance, or undertake towage or salvage
services under a contract previously arranged by the Assured and/or Owners and/or
Managers and/or Charterers. This Clause 1.1, shall not exclude customary towage in
connection with loading and discharging,
1.2 In the event of the Vessel being employed in trading operations which entail cargo loading or
discharging at sea from or into another vessel (not being a harbour or inshore craft) no claim
shall be recoverable under this insurance for loss of or damage to the Vessel or liability to
any other vessel arising from such loading or discharging operations, including whilst
approaching, lying alongside and leaving, unless previous notice that the Vessel is to be
employed in such operations has been given to the Underwriters and any amended terms of
cover and any additional premium required by them have been agreed.
1.3 In the event of the Vessel sailing (with or without cargo) with an intention of being (a) broken
up, or (b) sold for breaking up, any claim for loss of or damage to the Vessel occurring
subsequent to such sailing shall be limited to the market value of the Vessel as scrap at the
time when the loss or damage is sustained, unless previous notice has been given to the
Underwriters and any amendments to the terms of cover insured value and premium
required by them have been agreed. Nothing in this Clause 1.3 shall affect claims under
Clauses 8 and/or 11.
2 CONTINUATION
Should the Vessel at the expiration of this insurance be at sea or in distress or at a port of refuge
or of call, she shall, provided previous notice be given to the Underwriters, be held covered at a
pro rata monthly premium to her port of destination.
3 BREACH OF WARRANTY
Held covered in case of any breach of warranty as to cargo, trade, locality towage, salvage
services or date of sailing, 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.
4 TERMINATION
This Clause 4 shall prevail notwithstanding any provision whether written typed or printed
in this insurance inconsistent therewith.
Unless the Underwriters agree to the contrary in writing, this insurance shall terminate
automatically at the time of
4.1 change of the Classification Society of the Vessel, or change, suspension, discontinuance,
withdrawal or expiry of her Class therein, provided that if the Vessel is at sea such automatic
termination shall be deferred until arrival at her next port. However where such change,
suspension, discontinuance or withdrawal of her Class has resulted from loss or damage
covered by Clause 6 of this insurance or which would be covered by an insurance of the
Vessel subject to current Institute War and Strikes Clauses Hulls-Time such automatic
termination shall only operate should the Vessel sail from her next port without the prior
approval of the Classification Society.
4.2 any change, voluntary or otherwise, in the ownership or flag, transfer to new management,
or charter on a bareboat basis, or requisition for title or use of the Vessel, provided that, if the
Vessel has cargo on board and has already sailed from her loading port or is at sea in
ballast, such automatic termination shall if required be deferred, whilst the Vessel continues
her planned voyage, until arrival at final port of discharge if with cargo or at port of
destination if in ballast. However in the event a requisition for title or use without the prior
execution of a written agreement by the Assured, such automatic termination shall occur
fifteen days after such requisition whether the Vessel is at sea or in port.
A pro rata daily net return of premium shall be made.
5 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.
6 PERILS
6.1 This insurance covers loss of or damage to the subject-matter insured caused by
6.1.1. perils of the seas rivers lakes or other navigable waters
6.1.2 fire, explosion
6.1.3 violent theft by persons from outside the Vessel
6.1.4 jettison
6.1.5 piracy
6.1.6 breakdown of or accident to nuclear installations or reactors
6.1.7 contact with aircraft or similar objects, or objects falling therefrom, land conveyance,
dock or harbour equipment or installation
6.1.8 earthquake volcanic eruption or lightning.
6.2 This insurance covers loss of or damage to the subject-matter insured caused by
6.2.1 accidents in loading discharging or shifting cargo or fuel
6.2.2 bursting of boilers breakage of shafts or any latent defect in the machinery or hull
6.2.3 negligence of Master Officers Crew or Pilots
6.2.4 negligence of repairers or charterers provided such repairers or charterers are not an
Assured hereunder
6.2.5 barratry of Master Officers or Crew
provided such loss or damage has not resulted from want of due diligence by the Assured,
Owners or Managers.
6.3 Master Officers Crew or Pilots not to be considered Owners within the meaning of this
Clause 6 should they hold shares in the Vessel
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 3/4THS COLLISION LIABILITY
8.1 The Underwriters agree to Indemnify the Assured for three-fourths of 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
8.1.1. loss of or damage to any other vessel or property on any other vessel
8.1.2 delay to or loss of use of any such other vessel or property thereon
8.1.3 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.
8.2 The indemnity provided by this Clause 8 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:
8.2.1 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 8 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,
8.2.2 In no case shall the Underwriters’ total liability under Clauses 8.1 and 8.2 exceed their
proportionate part of three-fourths of the insured value of the Vessel hereby insured in
respect of any one collision.
Exclusions
8.4 Provided always that this Clause 8 shall in no case extend to any sum which the Assured
shall pay for or in respect of
8.4.1 removal or disposal of obstructions, wrecks, cargoes or any other thing whatsoever
8.4.2 any real or personal property or thing whatsoever except other vessels or property on
other vessels
8.4.3 the cargo or other property on, or the engagements of, the insured Vessel
8.4.4 loss of life, personal injury or illness
8.4.5 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).
8.3 The Underwriters will also pay three-fourths of 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.
9 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.
10 NOTICE OF CLAIM AND TENDERS
10.1 In the event of accident whereby loss or damage may result in a claim under this insurance,
notice shall be given to the Underwriters prior to survey and also, if the Vessel is abroad, to
the nearest Lloyd’s Agent so that a surveyor may be appointed to represent the
Underwriters should they so desire.
10.2 The Underwriters shall be entitled to decide the port to which the Vessel shall proceed for
docking or repair (the actual additional expense of the voyage arising from compliance with
the Underwriters. requirements being refunded to the Assured) and shall have a right of
veto concerning a place of repair or a repairing firm.
10.3 The Underwriters may also take tenders or may require further tenders to be taken for the
repair of the Vessel. Where such a tender has been taken and a tender is accepted with the
approval of the Underwriters, an allowance shall be made at the rate of 300fo per annum
on the insured value for time lost between the despatch of the invitations to tender required
by Underwriters and the acceptance of a tender to the extent that such time is lost solely as
the result of tenders having been taken and provided that the tender is accepted without
delay after receipt of the Underwriters’ approval. Due credit shall be given against the
allowance as above for any amounts recovered in respect of fuel and stores and wages
and maintenance of the Master Officers and Crew or any member thereof, including
amounts allowed in general average, and for any amounts recovered from third parties in
respect of damages for detention and/or loss of profit and/or running expenses, for the
period covered by the tender allowance or any part hereof, Where a part of the cost of the
repair of damage other than a fixed deductible is not recoverable from the Underwriters, the
allowance shall be reduced by a similar proportion.
10.4 In the event of failure to comply with the conditions of this Clause 10 a deduction of 15%
shall be made from the amount of the ascertained claim.
11 GENERAL AVERAGE AND SALVAGE
11.1 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.
11.2 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.
11.3 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.
11.4 No claim under this Clause 11 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.
12 DEDUCTIBLE
12.1 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 8,11 and 13) 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 12,1 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 13 arising
from the same accident or occurrence.
12.2 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 12.2 shall be deemed to include contact with
floating ice.
12.3 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.
12.4 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.
13 DUTY OF ASSURED (SUE AND LABOUR)
13.1 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.
13.2 Subject to the provisions below and to Clause 12 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 13,5) and
collision defence or attack costs are not recoverable under this Clause 13.
13.3 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.
13.4 When expenses are incurred pursuant to this Clause 13 the liability under this insurance
shall not exceed the proportion of such expenses that the amount insured hereunder bears
to the value of the Vessel as stated herein, or to the sound value of the Vessel at the time
of the occurrence giving rise to the expenditure if the sound value exceeds that value,
Where the Underwriters have admitted a claim for total loss and property insured by this
insurance is saved, the foregoing provisions shall not apply unless the expenses of suing
and labouring exceed the value of such property saved and then shall apply only to the
amount of the expenses which is in excess of such value.
13.5 When a claim for total loss of the Vessel is admitted under this insurance and expenses
have been reasonably incurred in saving or attempting to save the Vessel 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 Vessel; but if the Vessel be insured for less than
its sound value at the time of the occurrence giving rise to the expenditure, the amount
recoverable under this clause shall be reduced in proportion to the under-insurance.
13.6 The sum recoverable under this Clause 13 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.
14 NEW FOR OLD
Claims payable without deduction new for old.
15 BOTTOM TREATMENT
In no case shall a claim be allowed in respect of scraping gritblasting and/or other surface
preparation or painting of the Vessel’s bottom except that
15.1 gritblasting and/or other surface preparation of new bottom plates ashore and supplying
and applying any "shop" primer thereto,
15.2 gritblasting and/or other surface preparation of:
the butts or area of plating immediately adjacent to any renewed or refitted plating
damaged during the course of welding and/or repairs, areas of plating damaged during the
course of fairing, either in place or ashore,
15.3 supplying and applying the first coat of primer/anti-corrosive to those particular areas
mentioned in 15.1 and 15.2 above,
shall be allowed as part of the reasonable cost of repairs in respect of bottom plating damaged
by an insured peril.
16 WAGES AND MAINTAINANCE
No claims shall be allowed, other than in general average, for wages and maintenance of the
Master Officers and Crew, or any member thereof except when incurred solely for the necessary
removal of the Vessel from one port to another for the repair of damage covered by the
Underwriters, or for trial trips for such repairs, and then only for such wages and maintenance as
are incurred whilst the Vessel is under way.
17 AGENCY COMMISSION
In no case shall any sum be allowed under this insurance either by way of remuneration of the
Assured for time and trouble taken to obtain and supply information or documents or in respect
of the commission or charges of any manager, agent. managing or agency company or the like,
appointed by or on behalf of the Assured to perform such services.
18 UNREPAIRED DAMAGE
18.1 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.
18.2 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.
18.3 The Underwriters shall not be liable in respect of unrepaired damage for more than the
insured value at the time this insurance terminates.
19 CONSTRUCTIVE TOTAL LOSS
19.1 In ascertaining whether the Vessel 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 of the
Vessel or wreck shall be taken into account.
19.2 No claim for constructive total loss based upon the cost of recovery and/or repair of the
Vessel 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.
20 FREIGHT WAIVER
In the event of total or constructive total loss no claim to be made by the Underwriters for freight
whether notice of abandonment has been given or not.
21 DISBURSEMENT WARRANTY
21.1 Additional insurances as follows are permitted:
21.1.1. Disbursements, Managers’ Commissions, Profits or Excess or increased Value of
Hull and Machinery. A sum not exceeding 25% of the value stated herein.
21.1.2 Freight, Chartered Freight or Anticipated Freight, insured for time. A sum not
exceeding 25% of the value as stated herein less any sum insured, however
described, under 21.1.1.
21.1.3 Freight, or Hire, under contracts for voyage. A sum not exceeding the gross freight
or hire for the current cargo passage and next succeeding cargo passage (such
insurance to include, if required, a preliminary and an intermediate ballast passage)
plus the charges of insurance. In the case of a voyage charter where payment is
made on a time basis, the sum permitted for insurance shall be calculated on the
estimated duration of the voyage, subject to the limitation of two cargo passages as
laid down herein. Any sum insured under 21.1.2 to be taken into account and only
the excess thereof may be insured, which excess shall be reduced as the freight or
hire is advanced or earned by the gross amount so advanced or earned.
21.1.4 Anticipated Freight if the Vessel sails in ballast and not under Charter. A sum not
exceeding the anticipated gross freight on next cargo passage, such sum to be
reasonably estimated on the basis of the current rate of freight at time of insurance
plus the charges of insurance. Any sum insured under 21.1.2 to be taken into
account and only the excess thereof may be insured
21.1.5 Time Charter Hire or Charter Hire for Series of Voyages. A sum not exceeding 50%
of the gross hire which is to be earned under the charter in a period not exceeding
18 months. Any sum insured under 21,1,2 to be taken into account and only the
excess thereof may be insured, which excess shall be reduced as the hire is
advanced or earned under the charter by 50% of the gross amount so advanced or
earned but the sum insured need not be reduced while the total of the sums insured
under 21.1.2 and 21.1.5 does not exceed 50% of the gross hire still to be earned
under the charter An insurance under this Section may begin on the signing of the
charter.
21.1.6 Premiums. A sum not exceeding the actual premiums of all interests insured for a
period not exceeding 12 months (excluding premiums insured under the foregoing
sections but including, if required, the premium or estimated calls on any Club or
War etc. Risk insurance) reducing pro rata monthly.
21.1.7 Returns of Premium. A sum not exceeding the actual returns which are allowable
under any insurance but which would not be recoverable thereunder in the event of
a total loss of the Vessel whether by insured perils or otherwise.
21.1.8 Insurance irrespective of amount insured against:
Any risks excluded by Clauses 23, 24, 25 and 26 below.
21.2 Warranted that no insurance on any interests enumerated in the foregoing 21.1.1 to 21.1.7
in excess of the amounts permitted therein and no other insurance which includes total loss
of the Vessel P P.I., F I.A., OI subject to any other like term, is or shall be effected to
operate during the currency of this insurance by or for account of the Assured, Owners,
Managers or Mortgagees, Provided always that a breach of this warranty shall not afford
the Underwriters any defence to a claim by a Mortgagee who has accepted this insurance
without knowledge of such breach.
22 RETURNS FOR LAY-UP AND CANCELLATION
22.1 To return as follows:
22.1.1 Pro rata monthly net for each uncommenced month if this insurance be cancelled by
agreement.
22.1.2 For each period of 30 consecutive days the Vessel may be laid up in a port or in a
lay-up area provided such port or lay-up area is approved by the Underwriters (with
special liberties as hereinafter allowed)
(a) per cent not under repair
(b) per cent under repair
If the Vessel is under repair during part only of a period for which a return is
claimable, the return shall be calculated pro rata to the number of days under (a)
and (b) respectively.
22.2 PROVIDED ALWAYS THAT
22.2.1 a total loss of the Vessel, whether by insured perils or otherwise, has not occurred
during the period covered by this insurance or any extension thereof.
22.2.2 in no case shall a return be allowed when the Vessel is lying in exposed or
unprotected waters, or in a port or lay-up area not approved by the Underwriters but,
provided the Underwriters agree that such non-approved lay-up area is deemed to
be within the vicinity of the approved port or lay-up area, days during which the
Vessel is laid up in such non-approved lay-up area may be added to days in the
approved port or lay-up area to calculate a period of 30 consecutive days and a
return shall be allowed for the proportion of such period during which the Vessel is
actually laid up in the approved port or lay-up area.
22.2.3 loading or discharging operations or the presence of cargo on board shall not debar
returns but no return shall be allowed for any period during which the Vessel is being
used for the storage of cargo or for lightening purposes.
22.2.4 in the event of any amendment of the annual rate, the above rates of return shall be
adjusted accordingly.
22.2.5 in the event of any return recoverable under this Clause 22 being based on 30
consecutive days which fall on successive insurances effected for the same
Assured, this insurance shall only be liable for an amount calculated at pro rata of
the period rates 22.1.2 (a) and/or (b) above for the number of days which come
within the period of this insurance and to which a return is actually applicable. Such
overlapping period shall run, at the option of the Assured, either from the first day on
which the Vessel is laid up or the first day of a period of 30 consecutive days as
provided under 22.1.2 (a) or (b), or 22.2.2 above.
The following clauses (23-26) shall be paramount
and shall override anything in this insurance inconsistent therewith
23 WAR EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by
23.1 war civil war revolution rebellion insurrection or civil strife arising therefrom, or any hostile
act by or against a belligerent power.
23.2 capture seizure arrest restraint or detainment (barratry and piracy excepted), and the
consequences thereof or any attempt thereat.
23.3 derelict mines, torpedoes bombs or other derelict weapons of war.
24 STRIKES EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by
24.1 strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil
commotions.
24.2 any terrorist or any person acting from a political motive.
25 MALICIOUS ACTS EXCLUSION
In no case shall this insurance cover loss damage liability or expense arising from
25.1 the detonation of an explosive
25.2 any weapon of war
and caused by any person acting maliciously or from a political motive.
26 NUCLEAR EXCLUSION
In no case shall this insurance cover loss, damage, liability or expense arising from any weapon
of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force
or matter.