1/10/83 (FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
INSTITUTE VOYAGE CLAUSES
HULLS
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 all sea
from 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 additional premium required by them have been
agreed.
2 CHANGE OF VOYAGE
Held covered in case of deviation or change of voyage or
any breach of warranty as to towage or salvage services 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.
3 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.
4. PERILS
4.1. This insurance covers
loss of or damage to the subject-matter insured caused by
4.1.1. perils of the seas
rivers lakes or other navigable waters
4.1.2. fire, explosion
4.1.3. violent theft by
persons from outside the Vessel
4.1.4. jettison
4.1.5. piracy
4.1.6. breakdown of or
accident to nuclear installations or reactors
4.1.7. contact with
aircraft or similar objects, or objects falling thereform, land conveyance,
dock or harbour
equipment or installation
4.1.8. earthquake
volcanic eruption or lightning
4.2. This insurance covers
loss of or damage to the subject-matter insured caused by
4.2.1. accident in
loading discharging or shifting cargo or fuel
4.2.2. bursting of
boilers breakage of shafts or any latent defect in the machinery or hull
4.2.3. negligence of
Master Officers Crew or Pilots
4.2.4. negligence of
repairers or charterers provided such repairers or charterers are not an
Assured hereunder
4.2.5. barratry of Master
Officers or Crew
4.2.5.1. provided such loss or damage has not
resulted from want of due diligence by the Assured, Owners or
Managers or
Superintendents or any of their onshore management.
4.3.
Master Officers Crew or Pilots not to be considered Owners within
the meaning of this Clause 6 should
they hold shares in
the Vessel
5 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 that 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 5 should they hold shares in the Vessel.
6. 3/4THS COLLISION LIABILITY
6.1. 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
6.1.1. loss of
or damage to any other vessel or property on any other vessel
6.1.2. delay to
or loss of use of any such other vessel or property thereon
6.1.3. 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.
6.2.
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:
6.2.1. where the insured Vessel is in collisions 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.
6.2.2. 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.
6.3.
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.
EXCLUSIONS
6.4. Provided always that
this Clause 8 shall in no case extend to any sum which the Assured shall pay
for or in
respect of
6.4.1. removal
or disposal of obstructions, wrecks, cargoes or any other thing whatsoever
6.4.2. any real
or personal property or thing whatsoever except other vessels or property on other vessels
6.4.3. the
cargo or other property on or the engagements of, the insured Vessel
6.4.4. loss of life, personal injury or illness
6.4.5. pollution
or contamination of any real or personal property or thing whatsoever (except
other vessels
with which the insured Vessels is in collision or property on such
other vessels)
7. SISTERSHIP
Should be Vessel hereby come into collision with or
receive salvage services from another vessel belonging
wholly or in part 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.
8. NOTICE OF CLAIM AND TENDERS
8.1. 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.
8.2. 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 of
a repairing firm.
8.3. 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 30% per annum on the insured value for time lost between the despatch of the invitation to
tender required by the 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
agree 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 thereof.
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.
8.4. 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.
9. GENERAL AVERAGE AND SALVAGE
9.1.
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.
9.2. 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 be
York-Antwerp Rules.
9.3.
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.
9.4.
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.
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 Clause 6, 9 and
11) 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
11 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 additional of interest the Underwriters may receive a larger sum
than they have
paid.
11.
DUTY OF ASSURED (SUE AND LABOUR)
11.1. 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.
11.2. Subject to the provisions below and to Clause 10
the Underwriters will contribute to charges property and
reasonably incurred by the Assured their servants
or agents for such measures. General average salvage
charges
(except as provided for in Clause 11.5) and collision defence or attack costs
are not recoverable under this Clause 11.
11.3. 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.
11.4. 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.
11.5. 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.
11.6. 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.
12.
NEW FOR OLD
12.1. Claims payable without deduction new for old.
13.
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
13.1. gritblasting and/or other surface preparation of new
bottom plates ashore and supplying and
applying
any “shop” primer
thereto,
13.2. 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 or plating damaged during the course of fairing, either in
place of shore,
13.3. 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.
14.
WAGES AND MAINTENANCE
No claim 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.
15.
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.
16.
UNREPAIRED DAMAGE
16.1. The measure of indemnity in respect of claims for unrepaired
damage shall be the reasonable depreciation
in the market value
of the time this insurance terminates arising from such unrepaired damage, but
not
exceeding the reasonable cost of repairs.
16.2. 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.
16.3. The Underwriters shall not be liable in respect of
unrepaired damage for more than the insured value at the
time this insurance
terminates.
17.
CONSTRUCTIVE TOTAL LOSS
17.1. 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.
17.2. 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.
18.
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.
19.
DISBURSEMENTS WARRANTY
19.1. Additional insurances as follows are permitted:
19.1.1. Disbursements, Managers’ Commissions, Profits or Excess or Increased
Value of Hull and Machinery.
A sum not exceeding 25% of the value stated herein.
19.1.2. 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 19.1.1.
19.1.3. Freight or Hire, under contract 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 19.1.2 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.
19.1.4. 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 arte of freight at time of insurance plus the charges of
insurance. Any sum insured under 19.1.2 to be taken into account and only the
excess thereof may be insured.
19.1.5. 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
19.1.2 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 19.1.2 and
19.1.5 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.
19.1.6. 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.
19.1.7. 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.
19.1.8. Insurance irrespective of amount against :
Any risks excluded by Clauses 23, 24, 25 and 26 below.
19.2. Warranted that no insurance on any
interests enumerated in the foregoing 19.1.1 to 19.1.7 in excess of the
amounts permitted therein and no other insurance
which includes total loss of the Vessel P.P.I. , F.I.A., or
subject
to any other like terms, 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.
The following clauses shall be paramount
and shall override anything contained in this insurance inconsistent
therewith.
20.
WAR EXCLUSION
In no case shall this insurance cover loss damage liability or
expense caused by
20.1. war civil war revolution rebellion insurrection, or
civil strife arising therefrom, or any hostile act by or
against a
belligerent power
20.2.
capture seizure arrest restraint or detainment (barratry and piracy excepted),
and the consequences thereof
or any attempt
thereat
20.3. derelict mines torpedoes bombs or other derelict weapons of
war.
21.
STRIKES EXCLUSION
In no case shall this insurance cover loss damage liability or
expense caused by
21.1. strikes, locked-out workmen, or persons taking part in
labour disturbances, riots or civil commotions.
21.2. any terrorist or any person acting from a political motive.
22.
MALICIOUS ACTS EXCLUSION
In no case shall this insurance cover loss damage liability or
expense arising from
22.1. the detonation of an explosive
22.2. any weapon of war
and caused by any person acting maliciously or from a political
motive
23.
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 fussion or other like reaction or radioactive
force or matter.
_________________________________
CL.285 Sold by Witherby
& Co.Ltd., London_
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