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MARINE HULL POLICY
For Consumer Insurance Contracts (Insurance wholly
for purposes unrelated to the Insured’s trade, business or profession) This Policy is issued in consideration of the payment
of premium as specified in the Policy Schedule and pursuant to the answers
given in the Insured’s Proposal Form (or when the Insured
applied for this insurance) and any other disclosures made by the Insured
between the time
of submission of the Insured’s Proposal Form (or when the Insured applied for
this insurance) and the time this contract is entered into. The
answers and any other disclosures given by the Insured shall form part of
this contract of insurance between the Insured and ……… INSURANCE
BHD (hereinafter called “the Company”). However, in the event of any
pre-contractual misrepresentation made in relation to the Insured’s
answers or in any disclosures given by the Insured, only the remedies in
Schedule 9 of the Financial Services Act 2013 will apply. This
Policy reflects the terms and conditions of the contract of insurance as
agreed between the Insured and the Company. For Non - Consumer Insurance Contracts (Insurance
for purposes related to the Insured’s trade, business or profession) This Policy is issued in consideration of the payment
of premium as specified in the Policy Schedule and pursuant to the answers
given in the Insured’s Proposal Form (or when the Insured
applied for this insurance) and any other disclosures made by the Insured
between the time
of submission of the Insured’s Proposal Form (or when the Insured applied for
this insurance) and the time this contract is entered into. The
answers and any other disclosures given by the Insured shall form part of
this contract of insurance between the Insured and ………. INSURANCE
BHD (hereinafter called “the Company”). In the event of any pre-contractual
misrepresentation made in relation to the Insured’s answers
or in any disclosures made by the Insured, it may result in avoidance of the
Insured’s contract of insurance, refusal or reduction of the
Insured’s claim(s), change of terms or termination of the Insured’s contract
of insurance. This
Policy reflects the terms and conditions of the contract of insurance as
agreed between the Insured and the Company. The Company hereby confirms that the person(s)
effecting this insurance specifies in the SCHEDULE and our Company have
entered into and
insurance contract where the latter agrees to insure against loss damage
liability or expense in the proportions and manner hereinafter provided
and the former agrees to pay the premium specifies in the SCHEDULE to the
latter as remuneration therefor. IN
WITNESS whereof, I the Undersigned of …………………………….on
behalf of the said COMPANY, have subscribed my Name in the place
specified in the SCHEDULE to this Policy on the date specified in the
SCHEDULE. This
insurance is subject to English law and practice as to liability for and
settlement of any and all claims unless any provision contained in this
insurance is inconsistent therewith. |
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CLAUSES/ENDORSEMENTS WHERE APPLICABLE AS STATED IN
THE POLICY SCHEDULE |
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INSTITUTE TIME 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 trail 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
This insurance shall not be prejudiced by reason of the Assured entering into
any contract with pilots or for customary towage which limits
or exempts the liability of the pilots and/or tugs and/or towboats and /or their owners when
the Assured or their agents accept or
are compelled to accept such contracts in accordance with established local
law or practice. 1.3 The practice of engaging helicopters for the
transportation of personnel, supplies and equipment to and/or from the Vessel
shall not prejudice
this insurance. 1.4
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. 1.5
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 1.5 shall affect claims under
Clauses 8 and/or 10. 2. CONTINUATION Should the Vessel at the expiration of this insurance be
at sea and in distress or missing, she shall, provided notice be given to the Underwriters prior to the expiration of this
insurance, be held covered until arrival at the next port in good safety, or
if in port and in distress until
the Vessel is made safe, at a pro rata monthly premium. 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 |
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4.
CLASSIFICATION
4.1 It is the duty of the Assured, Owners
and Managers at the inception of and throughout the period of this insurance to
ensure that
4.1.1 the Vessel is classed with a Classification
Society agreed by the Underwriters and that her class within that Society is
maintained,
4.1.2 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.
4.2 In the event of any breach of the duties
set out in Clause 4.1 above, unless
the Underwriters agree
to the contrary in
writing,
they
will be discharged from liability under
this insurance as from the date of the breach provided that if the
Vessel is at sea at such date the Underwriters'
discharge from liability is deferred until arrival at her next port.
4.3 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 Assured, Owners or Managers must be promptly
reported to the Classification Society.
4.4 Should the Underwriters wish to approach the Classification Society directly for
information and/or documents, the Assured will
provide
the necessary authorization.
5. TERMINATION
This Clause 5 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
5.1 change
of the Classification Society of the Vessel, or change, suspension,
discontinuance, withdrawal or expiry of her Class
therein, or
any of the Classification Society's periodic surveys becoming overdue unless an
extension of time for such survey be
agreed by the Classification Society, provided that if the Vessel
is at sea such automatic termination shall deferred until arrival
at
her next port. However where such change, suspension,
discontinuance or withdrawal of her Class or where a periodic survey
becoming overdue 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 or in the case of
a periodic
survey
becoming overdue without the Classification Society having agreed an extension
of time for such survey,
5.2 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 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 at sea or in port.
A pro rata
daily net return of premium shall be made provided that 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.
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 contact
with land conveyance, dock or harbour equipment or installation
6.1.7 earthquake
volcanic eruption or lightning
6.1.8 accidents
in loading discharging or shifting cargo or fuel.
6.2 This
insurance covers loss of or damage to the subject-matter insured caused by
6.2.1 bursting
of boilers breakage of shafts or any latent defect in the machinery or hull
6.2.2 negligence
of Master Officers Crew or Pilots
6.2.3 negligence of repairers or charterers
provided such repairers or charterers are not an Assured hereunder
6.2.4 barratry of Master
Officers or Crew
6.2.5 Contact with
aircraft, helicopters or similar objects, or objects falling therefrom
provided
that such loss or damage has not resulted from want of due diligence by the
Assured, Owners, Managers or Superintendants or any of their
onshore management.
6.3 Masters 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 damage to the
environment, 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, Owners or Managers to prevent or mitigate such hazard
or damage, or threat thereof. 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 than,
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.
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.
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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, or threat
threreof, or 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) or damage to the
environment, or threat thereof, save that this exclusion shall not extend to
any sum which the Assured shall pay for or in respect of salvage remuneration
in which the skill and efforts of the salvors in preventing or minimising
damage to the environment as is referred to in Article 13 paragraph 1(b) of the International
Convention on Salvage, 1989 have been taken into account.
9. SISTERSHIP
Should the Vessel hereby insured come into collision with or receiver
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. GENERAL AVERAGE AND SALVAGE
10.1 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.
10.2 Adjustment
to be according to the law and practice obtaining at the place where the
adventure end, 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.
10.3 When the Vessel sails in ballast, not
under charter, the provisions of the York-Antwerp Rules, 1994 (excluding Rules
Xld), 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.
10.4 No claim
under this Clause 10 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.
10.5 No claim under this Clause 10 shall in any
case be allowed for or in respect of
10.5.1 special
compensation payable to a salvor under Article 14 of the International
Convention on Salvage, 1989 or under any other
provision in any statute, rule, law or contract
which is similar in substance
10.5.2 expenses or liabilities incurred in respect
of damage to the environment, or the threat of such damage, or as a consequence
of the
escape or
release of pollutant substances from the Vessel, or the threat or such escape
or release.
10.6 Clause 10.5 shall not however exclude any
sum which the Assured shall pay to salvors for or in respect of salvage
remuneration
in which the skill and efforts of the salvors in preventing or
minimising damage to the environment as is referred to in Article 13 paragraph
1(b) of the International Convention on Salvage, 1989 have been taken into
account.
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 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
11.5),
special compensation and expenses as referred to in Clause 10.5 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 11 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, excluding all special
compensation
and expenses
as referred to in Clause 10.5; 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
11 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. 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, 10, 11)
exceeds the deductible amount agreed 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
claim, to any associated claim under Clause 11 arising from the same
accident or occurrence.
12.2 Claims
for damage by heavy weather occuring 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
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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 deductibles.
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. NOTICE OF CLAIM AND TENDERS
13.1 In the
event of accident whereby loss or damage may result in a claim under this
insurance, notice must be given to the Underwriters
promptly
after the date on which the Assured, Owners or Managers become or should have
become aware of the loss or damage and prior to survey so that a surveyor may
be appointed if the Underwriters so desire.
If notice is
not given to the Underwriters within twelve months of that date unless the
Underwriters agree to the contrary in
writing, the Underwriters will be
automatically discharged from liability for any claim under this insurance in
respect of or arising out of such accident or the loss or damage.
13.2 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.
13.3 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 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.
13.4 Due credit shall be given against the
allowance as above for any amounts recovered in respect of fuel and store
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 allowance shall be reduced by a similar
proportion.
In the event
of failure by the Assured to comply with the conditions of Clauses 13.2 and/or
13.3 a deduction of 15% shall be made from the amount of the ascertained claim.
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 15.1and 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 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.
17. AGENCY COMMISION
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. 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.
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22.
DISBURSEMENTS WARRANTY
22.1 Additional insurances as follows are
permitted:
22.1.1 Disbursements,
Managers' Commisions, 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 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 24, 25, 26 and 27 below.
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 LAY-UP AND CANCELLATION
23.1 To return as
follows:
23.1.1 pro rata monthly net for each uncommenced
month if this insurance be cancelled by agreement,
23.1.2 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,
(a)
per cent net not under repair
(b)
per cent net under repair
23.1.3 The Vessel shall not be considered to be under
repair when work is undertaken in respect of ordinary wear and tear of the
Vessel
and/or
following recommendations in the Vessel's Classification Society survey, but
any repairs following loss of or damage to the
Vessel or involving structural alterations, whether covered by
this insurance or otherwise shall be considered as under repair.
23.1.4 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 23.1.2 (a) and (b) respectively.
23.2 PROVIDED ALWAYS
THAT
23.2.1 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.
23.2.2 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
23.2.3 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
lightering purposes
23.2.4 In the event of any amendment of the annual
rate, the above rates of return shall be adjusted accordingly.
23.2.5 In the
event of any return recoverable under this Clause 23 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 23.1.2(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 23.1.2(1) or (b) above.
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.
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27.
RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE In
no case shall this insurance cover loss damage liability or expense directly
or indirectly caused by or contributed to by or arising from 27.1 ionising radiations from or
contamination by radioactivity from any nuclear fuel or from any nuclear
waste or from the combustion Of nuclear fuel 27.2 the radioactive, toxic, explosive or
other hazardous or contaminating properties of any nuclear installation,
reactor or other nuclear
assembly or nuclear component thereof 27.3 any weapon of war employing atomic or
nuclear fission and/or fusion or other like reaction or radioactive force or
matter. CL 280 INSTITUTE WAR AND STRIKES CLAUSES Hulls - Time (This insurance is subject to
English law and practice) 1. PERILS Subject
always to the exclusions hereinafter referred to, this insurance covers loss
of or damage to the Vessel caused by 1.1 war civil war revolution rebellion
insurrection, or civil strife arising therefrom, or any hostile act by or
against a belligerent power 1.2 capture seizure arrest restraint or
detainment, and the consequences thereof or any attempt thereat 1.3 derelict
mines torpedoes bombs or other derelict weapons of war 1.4 strikers, locked-out workmen, or
persons taking part in labour disturbances, riots or civil commotions 1.5 any terrorist or any person acting
maliciously or from a political motive 1.6 confiscation or expropriation. 2. INCORPORATION The
Institute Time Clauses - Hulls 1/10/83 (including 4/4ths Collision Clause)
except Clauses 1.2, 2, 3, 4, 6, 12, 21.1.8, 22, 23, 24, 25 and 26
are deemed to be incorporated in this insurance in so far as they do not
conflict with the provisions of these clauses. Held
covered in case of breach of warranty as to towage or salvage services
provided notice be given to the Underwriters immediately
after receipt of advices and any additional premium required by them be
agreed. 3. DETAINMENT In the event that the Vessel shall have been the
subject of capture seizure arrest restraint detainment confiscation or
expropriation, and the Assured shall thereby have lost the free use and
disposal of the Vessel for a continuous period of 12 months then for the
purpose of ascertaining
whether the Vessel is a constructive total loss the Assured shall be deemed
to have been deprived of the possession of the Vessel
without any likelihood of recovery. 4. EXCLUSIONS This
insurance excludes 4.1 loss damage liability or expense
arising from 4.1.1 any detonation of any weapon of war
employing atomic or nuclear fission and/or fusion or other
like reaction or radioactive force
or matter, hereinafter called a nuclear weapon of war 4.1.2 the
outbreak of war (whether there be a declaration of war or not) between any of
the following countries: United
Kingdom, United States of America, France, the
Union of Soviet Socialist Republics, the
People's Republic of China 4.1.3 requisition or pre-emption 4.1.4 capture seizure arrest detainment
confiscation or expropriation by or under the order of the government or any
public or local
authority of the country in which the Vessel is owned or registered. 4.1.5 arrest restraint detainment
confiscation or expropriation under quarantine regulations or by reason of
infringement of any customs
or trading regulations. 4.1.6 the operation of ordinary judicial
process, failure to provide security or to pay any fine or penalty or any
financial cause 4.1.7 piracy (but this exclusion shall not
affect cover under Clause 1.4). 4.2 loss damage liability or expense
covered by the Institute Time Clauses - Hulls 1/10/83 (including 4/4ths
Collision Clause) or which
would be recoverable thereunder but Clause 12 thereof. 4.3 any claim for any sum recoverable
under any other insurance on the Vessel or which would be recoverable under
such insurance
but for the existence of this insurance, 4.4 any claim for expenses arising from
delay except such expenses as would be recoverable in principle in English
law and practice
under the York-Antwerp Rules 1974 5. TERMINATION 5.1 This
insurance may be cancelled by either the Underwriters or the Assured giving 7
days notice (such cancellation becoming effective
on the expiry of 7 days from midnight of the day on which notice of
cancellation is issued by or to the
Underwriters). The Underwriters
agree however to reinstate this insurance subject to agreement between the
Underwriters and the Assured prior to the
expiry of such notice of cancellation as to new rate of premium and/or
conditions and/or warranties. 5.2 Whether or not such notice of
cancellation has been given this Insurance shall TERMINATE AUTOMATICALLY 5.2.1 upon
the occurrence of any hostile detonation of any nuclear weapon of war as
defined in Clause 4.1.1 wheresoever or whensoever such
detonation may occur and whether or not the Vessel may be involved 5.2.2 upon the outbreak of war (whether there
be a declaration of war or not) between any of the following
countries: United Kingdom, United States of America, France, the
Union of Soviet Socialist Republics,
the People's Republic of
China 5.2.3 in the event of the Vessel being
requisitioned, either for title or use. 5.3 In the event either of cancellation
by notice or of automatic termination of this insurance by reason of the
operation of this Clause 5, or
of the sale of the Vessel, pro rata net return of premium shall be payable to
the Assured. |
|
This insurance shall not become effective if, subsequent
to its acceptance by the Underwriters and prior to the intended time of its attachment, there has occured any event which would have
automatically terminated this insurance under the provisions of Clause 5 above. |
|
CL
281 |
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IT CLARIFICATION CLAUSE Property
damage covered under this insurance shall mean physical damage to the
substance of property. Physical
damage to the substance of property shall not include damage to data of
software, in particular any detrimental change in data, software
or computer programs that is caused by a deletion, a corruption or a
deformation of the original structure. Consequently
the following are excluded from this insurance. A. Loss of or
damage to data or software, in particular any detrimental change in data,
software or computer programs that is caused by a deletion,
a corruption or a deformation of the original structure and any business
interruption losses resulting from such loss or damage. Notwithstanding
this exclusion, loss of or damage to data or software which is the direct
consequence of Insured physical damage to the substance
of property shall be covered. B. Loss or
damage resulting from an impairment in the function, availability, range of
use or accessibility of data, software or computer programs,
and any business interruption losses resulting from such loss or damage. (Munich
Re) |
|
CLAUSES/ENDORSEMENTS APPLY TO THE WHOLE POLICY |
|
INSTITUTE RADIOACTIVE CONTAMINATION, CHEMICAL,
BIOLOGICAL, BIO-CHEMICAL 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 of 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. CL
370 (10/11/03) MARINE CYBER ENDORSEMENT 1.
Subject only to paragraph 3 below, in no case shall this insurance cover
loss, damage, liability or expense directly or indirectly caused by
or contributed by or arising from the use or operation, as a means for
inflicting harm, of any computer, computer system, computer software
programme, malicious code, computer virus, computer process or any other
electronic system. 2. Subject to the conditions, limitations and exclusions
of the policy to which this clause attaches, the indemnity otherwise
recoverable hereunder shall not be prejudiced by the use or
operation of any computer, computer system, computer software programme,
computer process
or any other electronic system, if such use or operation is not as a means
for inflicting harm. 3. Where this clause is endorsed on policies covering
risks of war, civil war, revolution, rebellion, insurrection, or civil strife
arising therefrom, or any hostile act by or against a belligerent power, or
terrorism or any person acting from a political motive, paragraph 1 shall not operate to exclude losses (which would otherwise be
covered) arising from the use of any computer, computer system or computer software programme or any other electronic system in
the launch and/or guidance system and/or firing mechanism of any weapon or missile.
LMA5403 11
November 2019 TERMINATION OF TRANSIT CLAUSE (TERRORISM) 2009 This clause shall be paramount
and shall override anything contained in this insurance inconsistent
therewith. 1.
Notwithstanding
any provision to the contrary contained in the contract of insurance or the
Clauses referred to therein, it is agreed that in
so far as the contract of insurance covers loss of or damage to the
subject-matter insured caused by any act of terrorism being an act of
any person acting on behalf of, or in connection with, any organisation which
carries out activities directed towards the overthrowing or
influencing, by force or violence, of any government whether or not legally
constituted or any person acting from a political, ideological
or religious motive, such cover is conditional upon the subject-matter
insured being in the ordinary course of transit and, in any
event, SHALL TERMINATE: either 1.1 as per the transit clauses contained
within the contract of insurance, or 1.2 on completion of unloading from the carrying vehicle
or other conveyance in or at the final warehouse or place of storage at the destination
named in the contract of insurance, 1.3
on completion of unloading from the carrying vehicle or other conveyance in
or at any other warehouse or place of storage, whether prior
to or at the destination named in the contract of insurance, which the
Assured or their employees elect to use either for storage other
than in the ordinary course of transit or for allocation or distribution, or 1.4
when the Assured or their employees elect to use any carrying vehicle or
other conveyance or any container for storage other than in
the ordinary course of transit, or 1.5
in respect
of marine transits, on the expiry of 60 days after completion of discharge
overside of the subject-matter insured from the oversea
vessel at the final port of discharge, |
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1.6 in respect of air transits, on the expiry of
30 days after unloading the subject-matter insured from the aircraft at the
final place of
discharge,
whichever shall first occur.
2. If the contract of insurance or the Clauses
referred to therein specifically provide cover for inland or other further
transits following on
from storage, or
termination as provided for above, cover will re-attach, and continues during
the ordinary course of that transit terminating
again
in accordance with clause 1.
JC2009/056
01/01/2009
** JC2009/056 shall only be applicable in the event
Terrorism is not an exclusion under this policy **
SANCTION LIMITATION AND EXCLUSION CLAUSE (LMA 3100)
No insurer
shall be deemed to provide cover and no insurer shall be liable to pay any
claim or provide any benefit hereunder to the extent that the provision of such
cover, payment of such claim or provision of such benefit would expose that
insurer to any sanction, prohibition or restriction under United Nations
resolutions or the trade or economic sanctions, laws or regulations of the
European Union, United Kingdom or United States of America.
CORONAVIRUS EXCLUSION LMA 5395 - with effect from
01.01.2021
(for
use on marine and energy liability policies)
This clause
shall be paramount and shall override anything in this insurance inconsistent
therewith. This insurance excludes coverage for:
1)
any loss, damage, liability, cost, or expense directly arising from the
transmission or alleged transmission of:
a)
Coronavirus disease (COVID 19);
b)
Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2); or
c)
any mutation or variation of SARS-CoV-2; or from any fear or threat of a), b)
or c) above;
2)
any liability, cost or expense to identify, clean up, detoxify, remove,
monitor, or test for a), b) or c) above;
3) any
liability for or loss, cost or expense arising out of any loss of revenue, loss
of hire, business interruption, loss of market, delay or any indirect financial
loss, howsoever described, as a result of any of a), b) or c) above or the fear
or the threat thereof.
All
other terms, conditions and limitations of the insurance remain the same.
LMA5395
09
April 2020
DUTY OF DISCLOSURE
Consumer Insurance Contracts
Where the
Insured has applied for this Insurance wholly for purposes unrelated to the
Insured’s trade, business or profession, the Insured had a duty to take
reasonable care not to make a misrepresentation in answering the questions in
the Proposal Form (or when the Insured applied for this insurance) i.e. the
Insured should have answered the questions fully and accurately. Failure to
have taken reasonable care in answering the
questions may result in avoidance of the Insured’s contract of insurance,
refusal or reduction of the Insured’s claim(s), change of terms or termination of the Insured’s contract of insurance
in accordance with the remedies in Schedule 9 of the Financial Services Act 2013. The Insured was also required to
disclose any other matter that the Insured knew to be relevant to the Company’s
decision in accepting the risks and determining the rates and terms to be
applied.
The Insured
also has a duty to tell the Company immediately if at any time after the
Insured’s contract of insurance has been entered into, varied or renewed with
the Company any of the information given in the Proposal Form (or when the
Insured applied for this insurance) is inaccurate or has changed.
Non - Consumer Insurance Contracts
Where the
Insured has applied for this Insurance wholly for purposes related to the
Insured’s trade, business or profession, the Insured had
a duty to disclose any matter that the
Insured knows to be relevant to the Company’s decision in accepting the risks
and determining the
rates and terms to be applied and any matter
a reasonable person in the circumstances could be expected to know to be
relevant otherwise
it may result in avoidance of the Insured’s
contract of insurance, refusal or reduction of the Insured’s claim(s), change
of terms or termination
of Insured’s contract of insurance.
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