Table of Contents
SUPPLEMENTARY
CLAUSES...............................................................3
SUPPLEMENTARY
WARRANTIES........................................................4
SUPPLEMENTARY
EXCLUSIONS.........................................................4
1
NAVIGATION..................................................................................................
6
2
CONTINUATION.............................................................................................
6
3
TERMINATION................................................................................................
6
4
ASSIGNMENT.................................................................................................
6
5 PERILS
...........................................................................................................
7
6 EARTHQUAKE AND VOLCANIC ERUPTION
EXCLUSION.......................... 7
7 POLLUTION
HAZARD....................................................................................
7
8 COLLISION
LIABILITY...................................................................................
8
9 SISTERSHIP
...................................................................................................
9
10 PROTECTION AND
INDEMNITY.................................................................... 9
11 NOTICE OF CLAIM AND
TENDERS............................................................ 11
12 GENERAL AVERAGE AND SALVAGE
....................................................... 12
13 DEDUCTIBLE
...............................................................................................
12
14 DUTY OF ASSURED (SUE AND
LABOUR)................................................. 12
15 NEW FOR
OLD.............................................................................................
13
16 BOTTOM
TREATMENT................................................................................
13
17 WAGES AND
MAINTENANCE.....................................................................
13
18 AGENCY
COMMISSION...............................................................................
14
19 UNREPAIRED
DAMAGE..............................................................................
14
20 CONSTRUCTIVE TOTAL
LOSS................................................................... 14
21 FREIGHT WAIVER
.......................................................................................
14
22 DISBURSEMENTS
WARRANTY.................................................................. 14
23 RETURNS FOR CANCELLATION
............................................................... 15
24 WAR
EXCLUSION........................................................................................
16
25 STRIKES
EXCLUSION.................................................................................
16
26 MALICIOUS ACTS
EXCLUSION.................................................................. 16
27 INSTITUTE WEAPONS EXCLUSION
CLAUSE........................................... 17
Marine Hull Policy Wording 2011-2012 3
SUPPLEMENTARY CLAUSES
Automatic Attachment of New or Acquired Vessels
Clause
Should the Insured acquire an insurable interest in
any additional vessel or vessels through
purchase, charter or otherwise, then such insurance
as is afforded by this policy to other
similar vessels will apply to such additional
vessel or vessels as of the time they became at
the Insured’s risk. The value of such vessel or
vessels shall not exceed $ 500,000 any one
vessel.
Further, such vessels to be valued, unless
otherwise agreed, at the amount fixed between
the Insured and vendor or vendors prior to
attachment hereunder. The Insured agrees to
notify the Underwriter of any additional vessel or
vessels within fourteen (14) days of
attachment and to pay such additional premium at
the agreed policy rate for similar
vessels as may be mutually agreed between the
Insured and the Underwriter.
Shore Clause
It is agreed that any part or parts of the Interest
Insured (with the exception of diving and/or
fishing equipment & accessories) shall be
covered subject additionally to the Institute Cargo
Clauses (A) 1/1/82 and Institute Strikes Clauses
(Cargo) 1/1/82 whilst ashore for the
purposes of repair, overhaul, refitting or
otherwise, including whilst in transit.
Cross Liability Clause
Where more than one party comprises the Insured,
each of the parties shall for the purpose
of this policy, be considered as a separate and
distinct unit and the words " Insured" shall be
considered as applying to each party in the same
manner as if a separate policy had been
issued to each of the said parties and the
Underwriters hereby agree to waive all rights of
subrogation of action which they may have or
acquire against any of the aforesaid parties
arising out of the accident in respect of which any
claim is made hereunder.
Provided, nevertheless, that nothing in this clause
shall be deemed to increase the limit of
Underwriters' liability in respect of any one
accident or series of accidents.
Cancellation Clause
This Policy may be cancelled by either the
Underwriter or Insured giving the other party thirty
(30) days written notice of their intention to
cancel but such cancellation shall not prejudice
any risk or risks having already attached hereunder
prior to the time such cancellation
becomes effective.
Claims Co-Operation Clause
The Insured agree to give the Underwriter immediate
advice of all claims notified to them,
and the Insured shall afford to the Underwriter, or
its representatives, an opportunity to be
associated with them, at the expense of the
Underwriter, in defence of any claim, suit or
proceeding involving this reinsurance. The Insured
and Underwriter shall co-operate in every
respect in the defence of such claim, suit or
proceeding.
The Insured also agree not to admit a claim in
which the Underwriter might be interested,
without the written consent of the Underwriter.
Statutory Compliance Clause
The Insured shall have been deemed to have complied
with all statutory Worker’s
Compensation or Seaman’s Compensation requirements
in respect of insurance against
accident to, or illness of, their workmen and the
Underwriter shall not be responsible for
any claims which would be properly recoverable
under such insurance covering employees
under a contract of service with the Insured.
Marine Hull Policy Wording 2011-2012 4
SUPPLEMENTARY WARRANTIES
It is hereby warranted that:-
1. the vessels are in survey and will remain in
survey with the appropriate State,
Territory or Commonwealth legislation at all times
during the currency of the policy.
2. the vessels will be skippered, manned, crewed,
operated and licensed in
accordance with the regulations and by-laws and all
other applicable laws of the
appropriate government authorities of the
applicable State, Territory or Commonwealth
legislation at all times during the currency of the
policy.
3. all LP Gas installations to be fitted, approved
and serviced by licensed or
authorised LP Gas installers and the appropriate
Compliance Plate affixed as
required.
4. two or more persons to be on board for voyages
or trips in excess of 24 hours
5. the proposal, details of master form (where
required), and warranties incorporated
therein form the basis of this policy and are
incorporated therein.
6. permanent moorings leased or owned by the
Insured for the purpose of mooring the
insured vessels be maintained in good order,
inspected at least annually and
serviced in accordance with all applicable
statutory authority regulations.
7. In respect of classed vessels, that at the
inception of and throughout the period of this
insurance that:
i) the vessel is classed with a Classification
Society approved by Underwriters and
that her class within that Society is maintained,
ii) any recommendations, requirements or
restrictions imposed by the vessel’s
Classification Society which relate to the vessel’s
seaworthiness or to her
maintenance in a seaworthy condition are complied
with by the dates required by
that Society.
In the event of any breach of the duties set out
above, unless the Underwriter agrees to the
contrary in writing, they will be discharged from
liability under this insurance as from the date
of breach. Provided that if the vessel is at sea at
such date, the Underwriter’s discharge
from liability is deferred until arrival at her
next port.
Any incident, condition or damage in respect of
which the vessel’s Classification Society
might make recommendations as to repairs or other
action to be taken by the Insured,
Owners or Managers must be promptly reported to the
Classification Society.
Should the Underwriter wish to approach the
Classification Society directly for
information and/or documents, the Insured will
provide the necessary authorisation.
SUPPLEMENTARY EXCLUSIONS
1. This insurance excludes all liabilities arising
directly or indirectly out of or in connection
with boom netting, water skiing, para sailing, aqua
planing, tunnel diving and any
similar activities involving towing, pulling or
dragging of persons by the insured
vessels, and in addition excludes all liabilities
arising out of jet skis, wave runners or
any similar activity.
2. This insurance excludes all liability to or of
divers and/or swimmers and/or snorkellers
or as a result of diving and/or swimming and/or
snorkelling operations, and excludes
all liabilities arising out of diving and/or
swimming and/or snorkelling tuition.
3. No claim shall be allowed in respect of
liability to third parties arising from any accident
while a vessel is being towed by or is attached to
a motor vehicle or has
broken away or become accidentally detached from a
motor vehicle.
Marine Hull Policy Wording 2011-2012 5
4 SPECIALIST OPERATIONS (Dredges) EXCLUSION CLAUSE
The liability of the vessel is covered at all times
to the extent provided by the third party
liability section of this policy. However, it is
specifically agreed that the cover provided under
this policy does not include any liability, cost or
expense arising from the performance of
specialist operations including but not limited to,
dredging, blasting, pile driving, depositing of
spoil, construction, installation or maintenance
work to the extent that such liabilities, costs
and expenses arise as a consequence of:
a) claims brought by any party for whose benefit
the work has been performed, or by any
third party (whether connected with any party for
whose benefit the work has been
performed or not), in respect of the specialist
nature of the operations; or
b) the failure to perform such specialist
operations by the Assured or the fitness for
purpose and quality of the Assured’s work, products
or services, including any defect
in the Assured’s work, products or services; or
c) any loss of or damage to the contract works
(where applicable).
Provided that
this exclusion shall not apply to liabilities, costs and expenses incurred by
the
Assured in respect of the wreck removal of the
insured Vessel but only to the extent that
such liabilities, costs and expenses are otherwise
covered by this policy.
5 SPECIALIST OPERATIONS (Workboats and the like)
EXCLUSION CLAUSE
The liability of the vessel is covered at all times
to the extent provided by the third party
liability section of this policy. However it is
specifically agreed that the cover provided under
this policy does not include any liability, cost or
expense arising from the performance of
specialist operations including but not limited to
pile driving, cable or pipe laying, core
sampling, blasting, depositing of soil,
construction, installation or maintenance work to the
extent that such liabilities, costs and expenses
arise as a consequence of:
a) claims brought by any party for whose benefit
the work has been performed, or by any
third party (whether connected with any party for
whose benefit the work has been
performed or not), in respect of the specialist
nature of the operations; or
b) the failure to perform such specialist
operations by the Assured or the fitness for
purpose and quality of the Assured’s work, products
or services, including any defect
in the Assured’s work, products or services; or
c) any loss of or damage to the contract works
(where applicable.
Provided that
this exclusion shall not apply to liabilities, costs and expenses incurred by
the
Assured in respect of the wreck removal of the
insured Vessel but only to the extent that
such liabilities, costs and expenses are otherwise
covered by this policy.
Marine Hull Policy Wording 2011-2012 6
INSTITUTE TIME CLAUSES HULLS
PORT RISKS including LIMITED NAVIGATION
This insurance is subject to Australian law and
practice
1 NAVIGATION
1.1 The Vessel has leave to proceed to and from any
wet or dry docks harbours
ways cradles and pontoons, within the limits
specified in this insurance.
1.2 The Vessel is held covered in case of deviation
or change of voyage, provided
notice be given immediately after receipt of
advices and any amended terms of
cover and any additional premium required be
agreed.
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 TERMINATION
This Clause 3 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
3.1 change of the Classification Society of the
Vessel, or change, suspension,
discontinuance, withdrawal or expiry of her Class
there in, 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 5
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,
3.2 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. However, in the event of 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 in port or at
sea.
4 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.
Marine Hull Policy Wording 2011-2012 7
5 PERILS
5.1 This insurance covers loss of or damage to the
subject-matter insured caused by
5.1.1 perils of the seas rivers lakes or other
navigable waters
5.1.2 fire lightning explosion
5.1.3 violent theft by persons from outside the
Vessel
5.1.4 jettison
5.1.5 piracy
5.1.6 breakdown of or accident to nuclear
installations or reactors
5.1.7 contact with aircraft or similar objects, or
objects falling therefrom, land
conveyance, dock or harbour equipment or
installation.
5.2 This insurance covers loss of or damage to the
subject-matter insured caused by
5.2.1 accidents in loading discharging or shifting
cargo or fuel
5.2.2 bursting of boilers breakage of shafts or any
latent defect in the
machinery or hull
5.2.3 negligence of Master Officers Crew or Pilots
5.2.4 negligence of repairers or charterers
provided such repairers or
charterers are not an Assured hereunder
5.2.5 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.
5.3 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 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 8,
10, 12 and 14.
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.
Marine Hull Policy Wording 2011-2012 8
8 COLLISION LIABILITY
8.1 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
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 the insured
value of the Vessel
hereby insured in respect of any one such
collision.
8.3 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
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).
Marine Hull Policy Wording 2011-2012 9
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 PROTECTION AND INDEMNITY
10.1 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:
10.1.1 loss of or damage to any fixed or movable
object or property or other
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 8
10.1.2 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
10.1.3 liability assumed by the Assured under
contracts of customary towage
for the purpose of entering or leaving port or
manoeuvring within the
port during the ordinary course of trading
10.1.4 loss of life, personal injury, illness or
payments made for life salvage
10.1.5 liability under Clause 1(a) of the current
Lloyd's Standard Form of
Salvage Agreement in respect of unsuccessful,
partially successful, or
uncompleted services if and to the extent that the
salvor's expenses
plus the increment exceed any amount otherwise
recoverable under the
Agreement.
10.2 The Underwriters agree to indemnify the
Assured for any of the following arising
from an accident or occurrence during the period of
this insurance:
10.2.1 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
10.2.2 additional expenses brought about by the
outbreak of infectious disease
on board the Vessel or ashore
10.2.3 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
Marine Hull Policy Wording 2011-2012 10
10.2.4 the expenses of the removal of the wreck of
the Vessel from any place
owned, leased or occupied by the Assured
10.2.5 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
10.3 Notwithstanding the provisions of Clauses 10.1
and 10.2 this Clause 10 does not
cover any liability cost or expense arising in
respect of:
10.3.1 any direct or indirect payment by 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
about or in connection with the Vessel or her
cargo, materials or repairs
10.3.2 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
10.3.3 punitive or exemplary damages, however
described
10.3.4 cargo or other property carried, to be
carried or which has been carried
on board the Vessel but this Clause 10.3.4 shall
not exclude any claim
in respect of the extra cost of removing cargo from
the wreck of the
Vessel
10.3.5 property, owned by builders or repairers or
for which they are
responsible, which is on board the Vessel
10.3.6 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
10.3.7 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
10.3.8 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
10.3.9 fines or penalties arising from overloading
or illegal fishing
10.3.10 pollution or contamination of any real or
personal property or thing
whatsoever (This Clause shall not exclude any
amount recoverable
under Clause 10.1.5)
10.3.11 general average, sue and labour and salvage
charges, salvage, and/or
collision liability to any extent that they are not
recoverable under
Clauses 8, 12 and 14 by reason of the agreed value
and/or the amount
insured in respect of the Vessel being inadequate.
Marine Hull Policy Wording 2011-2012 11
10.4 The indemnity provided by this Clause 10 shall
be in addition to the indemnity
provided by the other terms and conditions of this
insurance.
10.5 Where the Assured or the Underwriters may or
could have limited their liability
the indemnity under this Clause 10 in respect of
such liability shall not exceed
Underwriters' proportionate part of the amount of
such limitation.
10.6 In no case shall the Underwriters' liability
under this Clause 10 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.
10.7 PROVIDED ALWAYS THAT
10.7.1 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
10 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
10.
10.7.2 the Assured shall not admit liability for or
settle any claim for which he may
be insured under this Clause 10 without the prior
written consent of the
Underwriters.
11 NOTICE OF CLAIM AND TENDERS
11.1 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.
11.2 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.
11.3 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 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
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.
11.4 In the event of failure to comply with the
conditions of this Clause 11, a deduction
of 15% shall be made from the amount of the
ascertained claim.
Marine Hull Policy Wording 2011-2012 12
12 GENERAL AVERAGE AND SALVAGE
12.1 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.
12.2 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.
12.3 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.
12.4 No claim under this Clause 12 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.
13 DEDUCTIBLE
13.1 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, 10, 12 and 14)
exceeds the
amount stated in the Policy Schedule 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 13.1 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 14 arising from the same accident or
occurrence.
13.2 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.
13.3 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.
14 DUTY OF ASSURED (SUE AND LABOUR)
14.1 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.
14.2 Subject to the provisions below and to Clause
13 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 14.5) collision defence or
attack costs and costs incurred
by the Assured in avoiding, minimising or
contesting liability covered by Clause
10 are not recoverable under this Clause 14.
Marine Hull Policy Wording 2011-2012 13
14.3 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.
14.4 When expenses are incurred pursuant to this
Clause 14 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.
14.5 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.
14.6 The sum recoverable under this Clause 14 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.
15 NEW FOR OLD
Claims payable without deduction new for old.
16 BOTTOM TREATMENT
In no case shall a claim be allowed in respect of
scraping grit blasting and/or other surface
preparation or painting of the Vessel's bottom
except that
16.1 grit blasting and/or other surface preparation
of new bottom plates ashore and
supplying and applying any "shop" primer
thereto,
16.2 grit blasting 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,
16.3 supplying and applying the first coat of
primer/anti-corrosive to those particular
areas mentioned in 16.1 and 16.2 above, shall be
allowed as part of the
reasonable cost of repairs in respect of bottom
plating damaged by an insured
peril.
17 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, with the agreement
of the Underwriters, 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.
Marine Hull Policy Wording 2011-2012 14
18 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.
19 UNREPAIRED DAMAGE
19.1 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.
19.2 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.
19.3 The Underwriters shall not be liable in
respect of unrepaired damage for more
than the insured value at the time this insurance
terminates.
20 CONSTRUCTIVE TOTAL LOSS
20.1 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.
20.2 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.
21 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.
22 DISBURSEMENTS WARRANTY
22.1 Additional insurances as follows are permitted
22.1.1 Disbursements, Managers'
Commissions, Profits or Excess or
Increased Value of Hull and Machinery. A sum not exceeding 25% of
the value stated herein.
22.1.2 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 22.1.1.
22.1.3 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
Marine Hull Policy Wording 2011-2012 15
two cargo passages as laid down herein. Any sum
insured under
22.1.2 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.
22.1.4 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
22.1.2 to be taken into account and only the excess
thereof may be insured.
22.1.5 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
22.1.2 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 22.1.2 and 22.1.5 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.
22.1.6 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.
22.1.7 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.
22.1.8 Insurance irrespective of amount
against:
Any risks excluded by Clauses 6, 24, 25, 26 and 27.
22.2 Warranted that no insurance on any interests
enumerated in the foregoing 22.1.1
to 22.1.7 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
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.
23 RETURNS FOR CANCELLATION
To return pro rata monthly net for each uncommenced
month if this insurance be cancelled
either by agreement or by the operation of Clause 3
provided that a total loss of the Vessel,
whether by insured perils or otherwise, has not
occurred during the period of this insurance
or any extension thereof.
Marine Hull Policy Wording 2011-2012 16
The following clauses shall be paramount and shall
override anything contained in
this insurance inconsistent therewith.
24 WAR EXCLUSION
In no case shall this insurance cover loss damage
liability or expense caused by
24.1 war civil war revolution rebellion
insurrection, or civil strife arising therefrom, or
any hostile act by or against a belligerent power
24.2 capture seizure arrest restraint or detainment
(barratry and piracy excepted), and
the consequences thereof or any attempt thereat
24.3 derelict mines torpedoes bombs or other
derelict weapons of war.
25 STRIKES EXCLUSION
In no case shall this insurance cover loss damage
liability or expense caused by
25.1 strikers, locked-out workmen, or persons
taking part in labour disturbances, riots
or civil commotions
25.2 any terrorist or any person acting from a
political motive,
26 MALICIOUS ACTS EXCLUSION
In no case shall this insurance cover loss damage
liability or expense arising from
26.1 the detonation of an explosive
26.2 any weapon of war and caused by any person
acting maliciously or from a
political motive.
Marine Hull Policy Wording 2011-2012 17
27 INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL,
BIOLOGICAL,
BIOCHEMICAL AND ELECTROMAGNETIC WEAPONS EXCLUSION
CLAUSE
This clause shall be paramount and shall override
anything contained in this
insurance inconsistent therewith
1. In no case shall this insurance cover loss
damage liability or expense directly or
indirectly caused by or contributed to by or
arising from
1.1 ionising radiations from or contamination by
radioactivity from any nuclear fuel or
from any nuclear waste or from the combustion of
nuclear fuel
1.2 the radioactive, toxic, explosive or other
hazardous or contaminating properties
of any nuclear installation, reactor or other
nuclear assembly or nuclear
component thereof
1.3 any weapon or device employing atomic or
nuclear fission and/or fusion or other
like reaction or radioactive force or matter
1.4 the radioactive, toxic, explosive or other
hazardous or contaminating properties
of any radioactive matter. The exclusion in this
sub-clause does not extend to
radioactive isotopes, other than nuclear fuel, when
such isotopes are being
prepared, carried, stored, or used for commercial,
agricultural, medical, scientific
or other similar peaceful purposes
1.5 any chemical, biological, bio-chemical, or
electromagnetic weapon.
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