Rules 2017

Gard Rules 2017

 Rules 2017

Copyright © 2017 Gard AS

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Preface Contents

Gard AS is acting as the agent of both Assuranceforeningen Gard Boards of Directors 8

-gjensidig- and Gard P. & I. (Bermuda) Ltd. Gard AS has prepared, and Office organisation – Contact details 10
the two associations’ Board of Directors have approved a joint set of Catastrophe telephone numbers 12
standard terms of cover for P&I risks (“Rules”) for the 2017 policy year. Out of office hours – Contact details 13
Rules P&I and Defence cover for ships and other floating structures29
For entries in Assuranceforeningen Gard -gjensidig-, the insurer is Contents 31
Assuranceforeningen Gard -gjensidig-. Likewise, for entries in Gard P. & I. Rules 37
(Bermuda) Ltd, the insurer is Gard P. & I. (Bermuda) Ltd. Appendices  105
P&I cover for mobile offshore units135
The Statutes of Assuranceforeningen Gard -gjensidig- and the Bye-Laws Contents 137
of Gard P. & I. (Bermuda) Ltd. are available on request and published on Rules 141
the Gard website. Appendices 178
Index 183
The Rules for the 2017 policy year which runs from 20 February 2017 to Standard Form Letters of Indemnity193
20 February 2018 contains some alterations to the Rules which applied
for the 2016 policy year. Further details of the alterations can be found
in Circular no 18/2016 “Amendments to the Rules 2017” which was sent
to the Members in January 2017. The circular can also be found on the
Gard website.

www.gard.no

5
Boards of Directors
Contact details

7
Boards of Directors Boards of Directors

The Board of Directors of Gard P. & I. (Bermuda) Ltd Executive Committee of Gard P. & I. (Bermuda) Ltd
Bengt Hermelin, Chairman Bermuda Trond Eilertsen, Chairman Norway
Kenneth Hvid, Deputy Chairman Teekay Shipping (Canada) Ltd., Canada Yngvil Åsheim BW Maritime, Norway
Nils Aden E.R. Schiffahrt GmbH & Cie. KG, Germany Ian Beveridge Bernhard Schulte, Germany
Yngvil Åsheim BW Maritime, Norway Morten W. Høegh Leif Höegh (UK) Ltd., United Kingdom
Ian Beveridge Bernhard Schulte GmbH & Co. KG, Germany Tadeusz Niszczota Polish Steamship Co., Poland
Ian Blackley Overseas Shipholding Group, USA Jane Sy Stolt Tankers B. V., Netherlands
K. C. Chang Evergreen Marine Corp. (Taiwan) Ltd., Taiwan Carl-Johan Hagman Stena Rederi AB, Sweden
Trond Eilertsen Norway Rolf Thore Roppestad, President Norway
Timothy C. Faries Bermuda
Costas Gerapetritis Navios Shipmanagement Inc, Greece Board of Directors of Assuranceforeningen Gard -gjensidig-
Carl Johan Hagman Stena Rederi AB, Sweden Trond Eilertsen, Chairman Norway
Herbjørn Hansson Nordic American Tankers Ltd, Bermuda Yngvil Åsheim BW Maritime Pte. Ltd., Singapore
Morten W. Høegh Leif Höegh (UK) Ltd., United Kingdom Morten W. Høegh Leif Höegh (UK) Ltd., United Kingdom
Stephen Knudtzon Norway Jane Sy Stolt Tankers B.V., Netherlands
Michael F. Lykiardopulo Lykiardopulo & Co. Ltd., United Kingdom Ian Beveridge Bernhard Schulte GmbH & Co. KG, Germany
Hans Peter Jebsen Kristian Gerhard Jebsen Skipsrederi AS, Norway
Tadeusz Niszczota Polish Steamship Company, Poland
Halvor Ribe J.J. Ugland Companies, Norway
Saleh Al-Shamekh The National Shipping Company of Saudi Arabia (Bahri), Saudi Arabia
Rajalingam Subramaniam AET Group, Singapore
Jane Sy Stolt Tankers B. V., Netherlands
Takaya Uchida Meiji Shipping Co. Ltd., Japan
Jan Eyvin Wang Wilh. Wilhelmsen ASA, Norway
Rolf Thore Roppestad, President Norway

8 9
Office organisation – Contact details Office organisation – Contact details

Lingard Limited, Hamilton Gard (Japan) K.K., Imabari

Office address Trott & Duncan Building, 17A Brunswick Street, Hamilton HM 10, Bermuda Office address Vogue 406, 3-9-36 Higashimura, Imabari-City 799-1506, Japan
Postal address P.O. Box HM 3038, Hamilton HM NX, Bermuda Telephone +81 (0)898 35 3901
Telephone +1 441 292 6766 Fax +81 (0)898 35 3902
Fax +1 441 292 7120
Gard (HK) Ltd., Hong Kong
Gard AS (Head office) Office address Room 3003, 30/F, The Centrium, 60 Wyndham Street, Central, Hong Kong
Office address Kittelsbuktveien 31, NO-4836 Arendal, Norway Telephone +852 2901 8688
Postal address P.O. Box 789 Stoa, NO-4809 Arendal, Norway Fax +852 2869 1645
Telephone +47 37 01 91 00
Fax +47 37 02 48 10 Oy Gard (Baltic) Ab, Helsinki
Website www.gard.no Office address Bulevardi 46, FIN-00120 Helsinki, Finland
Telephone +358 (0)30 600 3400
Gard AS, Bergen Fax +358 (0)9 6121 000
Office address Skipsbyggerhallen, Solheimsgaten 11, NO-5058 Bergen, Norway
Telephone +47 37 01 91 00 Gard (North America) Inc., New York
Fax +47 55 17 40 01 Office address 40 Fulton Street, New York, NY 10038, USA
Telephone +1 212 425 5100
Gard AS, Oslo Fax +1 212 425 8147
Office address Dronning Eufemias gate 6, NO-0111 Oslo, Norway
Postal address P.O. Box 1271 Vika, NO-0111 Oslo, Norway Gard (Greece) Ltd., Piraeus
Telephone +47 37 01 91 00 Office address 2, A. Papanastassiou Avenue, 185 34 Kastella, Piraeus, Greece
Fax +47 24 13 22 77 Telephone +30 210 413 8752
Fax +30 210 413 8751
Gard (UK) Limited, London
Office address 85 Gracechurch Street, London EC3V 0AA, United Kingdom Gard Marine & Energy – Escritório de Representação no Brasil Ltda
Telephone +44 (0)20 7444 7200 Office address Rua Lauro Muller 116 – Suite 3006 Botafogo, 22290-160, Rio de Janeiro, RJ, Brazil
Fax +44 (0)20 7623 8657 Telephone +55 21 3239 4875

Gard (Japan) K.K., Tokyo Gard (Singapore) Pte. Ltd., Singapore

Office address Shiodome City Center 8F, 1-5-2 Higashi Shinbashi, Minato-ku, Tokyo 105-7108, Japan Office address 72 Anson Rd, #13-02 Anson House, Singapore 079911, Singapore
Telephone +81 (0)3 5537 7266 Telephone +65 6709 8450
Fax +81 (0)3 3571 1586

10 For up to date contact details please see our website at www.gard.no 11

Catastrophe telephone numbers Out of office hours – Contact details

CATASTROPHE TELEPHONE NUMBER We list below the staff members whom our Members, clients or correspondents should contact
This telephone is manned on a 24 hour basis and should be used in the event of a catastrophic for assistance.
incident requiring the urgent assistance of Gard.
For international calls to Gard’s offices in Norway, please use the dialling code 47.
For calls to Gard (UK) Ltd. from outside the United Kingdom, please use the international dialling code 44
International: +47 90 52 41 00 National (Norway): 90 52 41 00
and omit the 0 at the beginning of the domestic area code.
For calls to Gard (Japan) K.K. from outside Japan, please use the international dialling code 81 and omit
the 0 at the beginning of the domestic area code.
Outside office hours telephone numbers For calls to Oy Gard (Baltic) AB from outside Finland, please use the dialling code 358 and omit the 0 at
These telephones may be used in the event of an incident requiring the urgent assistance of Gard. the beginning of the domestic area code.
For calls to Gard (HK) Ltd. from outside Hong Kong, please use the dialling code 852.

Gard AS For calls to Gard (Singapore) Pte. Ltd. from outside Singapore, please use the dialling code 65.

International: +47 90 52 41 00 National (Norway): 90 52 41 00 For calls to Gard (Greece) Ltd. from outside Greece, please use the dialling code 30.
For calls to Gard (North America) Inc. from outside the United States, please use the dialling code 1.
Gard (UK) Ltd
International: +44 7747 021 224 National (UK): 07747 021 224
Gard (Japan) K.K. LINGARD LIMITED
International: +81 3 3571 1585 National (Japan): 03 3571 1585
Graham Everard, Managing Director Mobile +1 (441) 330 3445 [email protected]
Oy Gard (Baltic) AB Jackie Stirling, Corporate Lawyer Mobile +1 (441) 305 3445 [email protected]
International: +358 50 402 7777 National (Finland): 050 402 7777
Cymone Williams, Personal Assistant Mobile +1 (441) 337 3445 [email protected]
Gard (HK) Ltd
International: +852 9461 6361 National (HK): 9461 6361
GARD
Gard (North America) Inc.
ADMINISTRATION
International: +1 917 856 6664 National (USA): 0917 856 6664
Gard (Greece) Ltd. Rolf Thore Roppestad, Chief Executive Officer
International: +30 6936 600 603 National (Greece): 6936 600 603 Mobile +47 97 55 92 45 [email protected]
Svein Buvik, Chief Human Resource Officer
Gard M&E Escritório de Rep (Brazil)
Mobile +47 97 55 93 18 [email protected]
International: +55 21 97445 9668 National (Brazil):021 97445 9668
Steinar Bye, Chief Financial Officer (CFO)
Gard (Singapore) Pte. Ltd.
Mobile +47 99 29 22 10 [email protected]
International: +65 6709 8462 National (Singapore): 6709 8462
Kristian Dalene, Chief Investment Officer (CIO)
Mobile +47 97 55 91 42 [email protected]
Ole Rikard Rønning, Chief Digital Officer Mobile +47 90 72 36 07 [email protected]
Nicolas Wilmot, Special Adviser Mobile +47 99 28 40 11 [email protected]

12 For up to date contact details please see our website at www.gard.no 13

Out of office hours – Contact details Out of office hours – Contact details

GROUP LEGAL Per Fredrik Jensen, Senior Claims Executive

Mobile +47 97 55 91 91 [email protected]
Kjetil Eivindstad, Chief Legal Counsel Mobile +47 97 55 92 18 [email protected]
Christopher Petrie, Senior Claims Executive, Lawyer
Lars Lislegard-Bækken, Vice President, Head of Compliance and Quality Management
Mobile +47 97 55 93 28 [email protected]
Mobile +47 97 55 91 96 [email protected]
Riika Ahtiala, Claims Executive Mobile +47 47 70 75 65 [email protected]
Tore A. Svinøy, Senior Lawyer Mobile +47 97 55 92 01 [email protected]
Gudrun Mortensen Aaserud, Claims Executive
Malin Petré Gustavi, Senior Lawyer Mobile +47 94 52 96 54 [email protected]
Mobile +47 97 55 91 17 [email protected]
Stig Garmann Tønnesen, Senior Lawyer Mobile +47 94 52 91 15 [email protected]
Lisbeth Christensen, Claims Executive Mobile +47 97 55 92 75 [email protected]
Ingvild Høgenes Nilsen, Claims Executive
CLAIMS Mobile +47 97 55 92 19 [email protected]
CLAIMS LEADERSHIP TEAM Roy Kenneth Jenssveen, Claims Executive
Christen Guddal, Chief Claims Officer Mobile +47 97 55 92 95 [email protected] Mobile +47 97 55 93 41 [email protected]

Leif Erik Abrahamsen, Vice President, Head of Marine Claims Gillian Woodroffe, Claims Executive Mobile +47 97 55 92 03 [email protected]
Mobile +47 99 28 41 12 [email protected]
Joakim Bronder, Vice President, Head of Defence Claims DRY CARGO CLAIMS NORTH (ARENDAL)
Mobile +47 97 55 91 19 [email protected] Stefan Bjarnelöf-Sovtic, Senior Manager Mobile +47 94 52 96 75 [email protected]
Alice Amundsen, Vice President, Head of People Claims Geir Kjebekk, Senior Adviser Mobile +47 97 55 92 52 [email protected]
Mobile +47 97 55 92 65 [email protected] Einar Gulbrandsen, Senior Claims Executive
Jan-Hugo Marthinsen, Vice President, Head of Offshore Energy Claims Mobile +47 97 55 91 64 [email protected]
Mobile +47 99.29 22 40 [email protected] Tom Bent Opsal Nielsen, Senior Claims Executive
Lene-Camilla Nordlie, Vice President, Head of Claims Improvements Mobile +47 94 52 93 62 [email protected]
Mobile +47 97 55 92 42 [email protected] Grethe Øynes, Senior Claims Executive Mobile +47 97 55 91 77 [email protected]
Nick Platt, Vice President, Head of Environmental Claims Osmund Høivold Johnsen, Claims Executive
Mobile +44 (0)7768 547402 [email protected] Mobile +47 94 52 96 16 [email protected]
Ajaz Peermohamed, Vice President, Head of Collision Claims Magnus Mannerström, Claims Executive Mobile +47 45 41 86 29 [email protected]
Mobile +44 (0)7747 758978 [email protected]
Linn Therese Mostad, Claims Executive Mobile +47 94 52 92 56 [email protected]
Mark Russell, Vice President, Head of Cargo Claims
Gitana Røyset, Claims Executive, Lawyer Mobile +47 97 55 91 41 [email protected]
Mobile +44 (0)7747 758789 [email protected]
Geir Sandnes, Vice President, Head of Claims Operations
DRY CARGO CLAIMS SOUTH (ARENDAL)
Mobile +47 97 55 91 63 [email protected]
Anne Boye, Senior Manager Mobile +47 97 55 91 18 [email protected]
Geir Kjebekk, Senior Adviser Mobile +47 97 55 92 52 [email protected]
PEOPLE CLAIMS (ARENDAL)
Morten Mauritz Seines, Senior Claims Executive, Lawyer
Cecilie Holm Nilsen, Senior Manager, Lawyer
Mobile +47 97 55 91 82 [email protected]
Mobile +47 94 52 91 80 [email protected]
Torgrim Andersen, Claims Executive Mobile +47 97 55 93 47 [email protected]
Trond Denstad, Senior Claims Executive Mobile +47 97 55 91 90 [email protected]
Hege Lunden, Claims Executive Mobile +47 94 52 96 35 [email protected]
Anja Lene Mathiesen, Claims Executive Mobile +47 97 55 92 26 [email protected]

14 For up to date contact details please see our website at www.gard.no 15

Out of office hours – Contact details Out of office hours – Contact details

Jonas Sandberg, Claims Executive, Lawyer P&I CLAIMS (OSLO)

Mobile +47 97 55 92 35 [email protected] Alejandra Hardisson Sterri, Senior Claims Executive, Lawyer
Beatriz Åsgård, Claims Executive Mobile +47 97 55 92 91 [email protected] Mobile +47 99 29 22 71 [email protected]
Are Solum, Claims Executive, Lawyer Mobile +47 94 52 93 96 [email protected] Teresa Marie Cunningham, Claims Executive
Janne Stålesen, Deputy Claims Executive Mobile +47 94 52 91 93 [email protected] Mobile +47 99 29 22 73 [email protected]
Kine Haaland, Claims Executive, Lawyer Mobile +47 94 52 22 52 [email protected]
CASUALTY, ENVIRONMENTAL & PROPERTY CLAIMS (ARENDAL) Tove Kaasine Skjeldal, Claims Executive Mobile +47 99 29 22 41 [email protected]
Andreas Brachel, Senior Manager Mobile +47 97 55 91 49 [email protected] Anette Stinessen, Claims Executive Mobile +47 94 52 22 45 [email protected]
Ole Gunstein Aasbø, Senior Claims Executive
Mobile +47 94 52 96 57 [email protected] OFFSHORE ENERGY CLAIMS (OSLO)
Tonje Castberg, Senior Claims Adviser Mobile +47 97 55 91 36 [email protected] Jan-Hugo Marthinsen, Vice President Mobile +47 99 29 22 40 [email protected]
Gunnar Espeland, Senior Claims Adviser Mobile +47 97 55 92 53 [email protected] Monica Midteng, Manager Mobile +47 24 13 22 61 [email protected]
Per Martin Langaas, Senior Claims Adviser Radmil Kranda, Senior Claims Executive, Lawyer
Mobile +47 97 55 92 68 [email protected] Mobile +47 99 29 22 13 [email protected]
Torgeir Bruborg, Senior Claims Executive, Lawyer Torstein Søreng, Senior Claims Executive Mobile +47 99 29 22 47 [email protected]
Mobile +47 94 52 96 18 [email protected]
Roar S. Larsen, Senior Claims Executive Mobile +47 97 55 91 43 [email protected] MARINE CLAIMS (OSLO)
Isabel Martin de Nieto McMath, Senior Claims Executive, Lawyer Ivar Brynildsen, Vice President Mobile +47 99 29 22 31 [email protected]
Mobile +47 94 52 96 19 [email protected] Karl Petter Mühlbradt, Senior Claims Adviser
Gunnar Beisland, Claims Executive Mobile +47 94 52 96 60 [email protected] Mobile +47 99 29 22 78 [email protected]
Grethe Ljøstad, Claims Executive Mobile +47 97 55 92 16 [email protected] Thomas Forssen, Senior Claims Executive Mobile +47 99 29 22 21 [email protected]
Paul Andor Marskar, Claims Executive Mobile +47 94 52 93 69 [email protected] Anne Glestad Lech, Senior Claims Adjuster
Inger Lill A. Jacobsen, Deputy Claims Executive Mobile +47 99 29 22 76 [email protected]
Mobile +47 97 55 92 44 [email protected] Atle Olav Nordbø, Senior Claims Adjuster
Ellen Evensen Leikvangen, Deputy Claims Executive Mobile +47 94 52 22 24 [email protected]
Mobile +47 97 55 93 14 [email protected] Helge Stian Ødegaard, Senior Claims Executive
Mobile +47 99 29 22 12 [email protected]
LIQUID CARGO CLAIMS (ARENDAL) Thomas Christiansen, Claims Executive Mobile +47 99 29 22 62 [email protected]
Jannike Rognøy Olsson, Senior Manager Mobile +47 97 55 91 94 [email protected] Hans Jørgen Hald, Claims Adjuster Mobile +47 99 29 22 17 [email protected]
Severin Frigstad, Senior Claims Executive Mobile +47 94 52 91 60 [email protected] Nils-Joakim Rosdahl, Claims Executive Mobile +47 94 52 22 43 [email protected]
Robert Skaare, Senior Claims Executive Mobile +47 94 52 93 52 [email protected] Mariya Simeonova, Deputy Claims Executive
Alf Ove Stenhagen, Senior Claims Executive [email protected]
Mobile +47 97 55 91 66 [email protected] Molly Skuggedal, Deputy Claims Executive
Johan Svensson, Claims Executive Mobile +47 94 52 96 55 [email protected] [email protected]
Christine Young, Deputy Claims Executive
[email protected]

16 For up to date contact details please see our website at www.gard.no 17

Out of office hours – Contact details Out of office hours – Contact details

MARINE CLAIMS (BERGEN) Fredrik Doksrød Olsen, Senior Claims Executive, Lawyer
Leif Erik Abrahamsen, Vice President Mobile +47 99 28 41 12 [email protected] Mobile +47 97 55 92 32 [email protected]
Sveinung Måkestad, Vice President Mobile +47 99 28 40 32 [email protected] Arne Sætra, Senior Lawyer Mobile +47 97 55 92 92 [email protected]
Svend Leo Larsen, Senior Claims Adviser Mobile +47 99 28 40 22 [email protected] Inger Eidem, Claims Executive, Lawyer Mobile +47 97 55 93 90 [email protected]
Per Martin Langaas, Senior Claims Adviser Fredrik Falck-Knutsen, Lawyer Mobile +47 97 55 91 78 [email protected]
Mobile +47 97 55 92 68 [email protected] Veronica Villegas, Lawyer Mobile +47 94 52 96 12 [email protected]
Asbjørn Asbjørnsen, Senior Claims Executive
Mobile +47 94 52 40 41 [email protected] CLAIMS IMPROVEMENTS
Nicholas Mark Coleman, Senior Claims Executive Lene-Camilla Nordlie, Vice President, Head of Claims Improvements
Mobile +47 99 28 40 72 [email protected] Mobile +47 97 55 92 42 [email protected]
Alf Inge Johannessen, Senior Claims Adjuster Andres Duran, Senior Business Analyst Mobile +47 97 55 92 61 [email protected]
Mobile +47 99 28 40 28 [email protected] Helge Christensen, Senior Business Analyst
Trond Justad, Senior Claims Executive Mobile +47 99 28 40 27 [email protected] Mobile +47 97 55 93 30 [email protected]
Vidar Solemdal, Senior Claims Executive Mobile +47 99 28 40 25 [email protected] Torgrim Andersen, Business Analyst Mobile +47 97 55 93 47 [email protected]
Påsan Vigerust, Senior Claims Executive Mobile +47 99 28 40 71 [email protected]
Marit Bjørnethun, Claims Adjuster Mobile +47 99 28 40 21 [email protected] LOSS PREVENTION & RISK ASSESSMENT (ARENDAL/BERGEN/SINGAPORE)
Merete Engevik, Claims Adjuster Mobile +47 99 28 40 55 [email protected]
Terje R. Paulsen, Vice President Mobile +47 94 52 40 85 [email protected]
Adrian Moylan, Casualty Lawyer Mobile +47 99 28 40 16 [email protected]
Bjarne Augestad, Senior Marine Surveyor Mobile +47 97 55 92 54 [email protected]
Svein Arne Nilsen, Claims Adjuster Mobile +47 99 28 40 34 [email protected]
Per Arne Sæther, Senior Marine Surveyor Mobile +47 99 28 40 29 [email protected]
Tutta Nygård, Claims Adjuster Mobile +47 99 28 40 23 [email protected]
Marius Schønberg, Senior Loss Prevention Executive
Bjørn Audun Vassenden, Claims Adjuster Mobile +47 99 28 40 33 [email protected]
Mobile +47 97 55 91 75 [email protected]
Eirik Lee Westerlund, Claims Executive Mobile +47 94 52 40 82 [email protected]
Kristin Urdahl, Senior Loss Prevention Executive
Heidi Floen, Team Leader, Marine non-lead Claims Mobile +47 94 52 93 92 [email protected]
Mobile +47 99 28 40 24 [email protected]
Per Haveland, Marine Surveyor Mobile +47 97 55 93 17 [email protected]
Hild Bjørnå, Deputy Claims Executive [email protected]
Valentin Klivnoy, Marine Surveyor Mobile +47 99 28 40 14 [email protected]
Gerda Høvik Mathiesen, Deputy Claims Executive
Kunal Pathak, Loss Prevention Executive, Asia
[email protected]
Mobile +65 9129 4530 [email protected]
Karen Smørholm, Deputy Claims Executive
Magnar Birkeland, Senior Risk Assessment Executive
[email protected]
Mobile +47 99 28 40 18 [email protected]
Lise Neset, Risk Assessment Executive Mobile +47 97 55 92 39 [email protected]
DEFENCE/CHARTERERS & TRADERS CLAIMS (ARENDAL)
Stuart Michael Kempson, Senior Manager
ACCOUNTING
Mobile +47 94 52 96 83 [email protected]
Kim Jefferies, Vice President Mobile +47 97 55 92 90 [email protected] Solvor Ek Hayes, Senior Manager Mobile +47 97 55 91 48 [email protected]

Philip Woodroffe, Senior Claims Adviser, Lawyer Jorunn Brekkestø Bjørkli, Senior Manager
Mobile +47 94 52 96 69 [email protected] Mobile +47 97 55 92 88 [email protected]

18 For up to date contact details please see our website at www.gard.no 19

Out of office hours – Contact details Out of office hours – Contact details

UNDERWRITING Fernando Iida, Underwriter Mobile +81 (0)80 4294 7788 [email protected]
Toshiyuki Kawana, Underwriter Mobile +81 90 6479 2544 [email protected]
Bjørnar Andresen, Chief Underwriting Officer Group
Mobile +47 99 29 22 90 [email protected] Fergas Wong, Underwriter Mobile +852 6016 9069 [email protected]

Line Dahle, Vice President, Chief Customer Officer Gina Cao, Deputy Underwriter Mobile +852 9013 7310 [email protected]
Mobile +47 99 28 40 53 [email protected]
Andre Kroneberg, Vice President, Chief Underwriting Officer Asia AMERICAS, MIDDLE EAST AND LONDON
Mobile +65 9159 4688 [email protected] Iain Laird, Vice President Mobile +44 (0)7768 547401 [email protected]
Audun Fjermedal Pettersen, Vice President, Chief Underwriting Officer Shipowners Petter Eid Skalstad, Area Manager Mobile +47 99 29 22 74 [email protected]
Mobile +47 97 55 92 10 [email protected] Stephen Mulcahy, Senior Underwriter Mobile +44 (0)7799 894670 [email protected]
Magne Nilssen, Vice President, Chief Underwriting Officer Specialty Samira Hmam, Underwriter Mobile +44 (0)7990 591911 [email protected]
Mobile +47 97 55 91 20 [email protected]

NORDIC AND NORTH AMERICA

PROCESS MANAGEMENT
Knut Goderstad, Vice President/Area Manager
Tonje Forøy Breivik, Senior Manager Mobile +47 97 55 93 58 [email protected] Mobile +47 97 55 91 27 [email protected]
Wenche Dahle-Olsen, Underwriter Mobile +47 97 55 92 71 [email protected] Reidun Haahjem, Vice President/Senior Underwriter
Karianne Hovet, Business Analyst Mobile +47 94 52 96 72 [email protected] Mobile +47 99 28 40 56 [email protected]
Patrik Palmgren, Manager Mobile +358 (0)40 046 5852 [email protected]
PORTFOLIO MANAGEMENT Sigvald Fossum, Senior Underwriter [email protected]
Jun Lin, Vice President Mobile +44 (0)7889 8116204 [email protected] Steinar Jørgensen, Senior Underwriter Mobile +47 99 29 22 49 [email protected]
Veith Huesmann, Senior Business Analyst Mobile +47 94 52 22 92 [email protected] Espen Olsen, Area Manager Mobile +47 99 28 40 51 [email protected]
Kjersti Bruborg, Business Analyst Mobile +47 97 55 91 89 [email protected] Mette Ellefsen, Underwriter Mobile +47 94 52 92 69 [email protected]
Magnus B. Olsen, Business Analyst Mobile +47 97 55 91 05 [email protected] Henry Hemtman, Underwriter Mobile +358 (0)50 414 6943 [email protected]
Yiting Xue, Business Analyst Mobile +47 99 29 22 06 [email protected] Ivar Rokne, Underwriter Mobile +47 99 28 40 74 [email protected]
Gabriella Svensson, Underwriter Mobile +47 94 52 96 58 [email protected]
ASIA
Andre Kroneberg, Vice President, Chief Underwriting Officer Asia NORTHERN EUROPE
Mobile +65 9159 4688 [email protected] Bjørn Fremmerlid, Vice President/Area Manager
Terje Holte, Vice President, Special Adviser Mobile +47 97 55 92 43 [email protected]
Mobile +65 9159 6831 [email protected] Michaela Carlström, Senior Underwriter Mobile +44 (0)7920 163586 [email protected]
Sid Lock, Area Manager Mobile +852 9196 4210 [email protected] Inger Aasbø Flaten, Senior Underwriter Mobile +47 97 55 93 12 [email protected]
Sven Jensen, Senior Underwriter Mobile +65 9150 2582 [email protected] Karianne Skarli, Senior Underwriter Mobile +47 97 55 92 72 [email protected]
Eilanda Lui, Senior Underwriter Mobile +65 9159 9402 [email protected] Jai Raymond Johansen, Underwriter Mobile +47 94 52 96 34 [email protected]
Thorbjörn Emanuelsson, Underwriter Mobile +852 6021 1797 [email protected] Tine Klemmetsen, Deputy Underwriter Mobile +47 94 52 93 43 [email protected]
Jiadi Sun, Underwriting Asia, Representative Ingrid Vinje Stiansen, Deputy Underwriter
Mobile +852 9878 9091 [email protected] Mobile +47 94 52 93 98 [email protected]

20 For up to date contact details please see our website at www.gard.no 21

Out of office hours – Contact details Out of office hours – Contact details

SOUTHERN EUROPE Kenneth Meyer, Senior Underwriter Mobile +47 99 28 41 05 [email protected]

Bart Mertens, Vice President/Area Manager May Kristin Lillebø, Underwriter Mobile +47 94 52 91 26 [email protected]
Mobile +47 94 52 96 32 [email protected] Atle Jonsborg Pedersen, Underwriter Mobile +47 99 29 22 65 [email protected]
Lisbet Fokstuen, Senior Underwiter Mobile +47 99 28 40 54 [email protected]
Nina Hovland, Senior Underwriter Mobile +47 99 28 40 62 [email protected] MARINE BUILDERS’ RISKS
Steinar Jørgensen, Senior Underwriter Mobile +47 99 29 22 49 [email protected] Knut Morten Finckenhagen, Vice President/Area Manager
Jostein Aasland, Underwriter Mobile +47 97 55 91 03 [email protected] Mobile +47 99 29 22 50 [email protected]
Anne Wenche Leland, Deputy Underwriter Ingunn Brenna, Senior Underwriter Mobile +47 99 29 22 55 [email protected]
Mobile +47 94 52 92 23 [email protected] Espen Lilloe-Olsen, Underwriter Mobile +47 94 52 22 14 [email protected]
Sigrun Ottersland, Deputy Underwriter Mobile +47 97 55 92 97 [email protected]
TRADING CERTIFICATES
ENERGY Inger-Helene Andersen, Underwriting Assistant
Gunnar Aasberg, Vice President/Area Manager Mobile +47 94 52 93 27 [email protected]
Mobile +47 99 29 22 25 [email protected] Liv Gundersen, Underwriting Assistant Mobile +47 94 52 91 23 [email protected]
Sabine C. Mazay, Senior Underwriter Mobile +47 99 29 22 30 [email protected] Hanna Kristensen, Underwriting Assistant Mobile +47 94 52 93 22 [email protected]
Liv Sand, Senior Underwriter Mobile +47 99 29 22 19 [email protected]
Liv Nordvik, Senior Underwriter Mobile +47 99 29 22 18 [email protected] GARD (UK) LIMITED
Henrik Aas, Underwriter Mobile +47 99 29 22 05 [email protected]
Thomas Nordberg, Managing Director Mobile +44 (0)7464 678866 [email protected]
Ingrid Helena Larsen, Underwriter Mobile +47 99 29 22 15 [email protected]
Nick Platt, Vice President, Head of Environmental Claims
Mobile +44 (0)7768 547402 [email protected]
CHARTERERS
Mark Russell, Vice President, Head of Cargo Claims
Terri Lynn Jay, Vice President/Area Manager Mobile +44 (0)7747 758789 [email protected]
Mobile +47 97 55 93 25 [email protected]
Sigvald Fossum, Senior Underwriter [email protected]
UNDERWRITING
Liv Kristensen, Senior Underwriter Mobile +47 97 55 91 21 [email protected]
Iain Laird, Vice President Mobile +44 (0)7768 547401 [email protected]
Vincent Gustavi, Underwriter Mobile +47 94 52 93 44 [email protected]
Stephen Mulcahy, Senior Underwriter Mobile +44 (0)7799 894670 [email protected]
Kristin Aanonsen, Underwriter Mobile +47 97 55 92 47 [email protected]
Michaela Carlström, Senior Underwriter Mobile +44 (0)7920 163586 [email protected]
Claudia Santander, Underwriter Mobile +47 94 52 96 11 [email protected]
Samira Hmam, Underwriter Mobile +44 (0)7990 591911 [email protected]

OFFSHORE
CLAIMS (LONDON)
Tore Furnes, Vice President/Area Manager
Ajaz Peermohamed, Vice President Mobile +44 (0)7747 758978 [email protected]
Mobile +47 97 55 92 86 [email protected]
Chris Connor, Senior Claims Executive Mobile +44 (0)7747 758845 [email protected]
Gisle Brøvig, Senior Underwriter Mobile +47 94 52 91 70 [email protected]
Tina Lind Havdahl, Senior Claims Executive
Michaela Carlström, Senior Underwriter Mobile +44 (0)7920 163586 [email protected]
Mobile +44 (0)7826 854156 [email protected]
Marianne Bruun Mackrill, Senior Underwriter
Adrian Hodgson, Senior Claims Executive Mobile +44 (0)7747 758956 [email protected]
Mobile +47 97 55 93 38 [email protected]

22 For up to date contact details please see our website at www.gard.no 23

Out of office hours – Contact details Out of office hours – Contact details

Nigel Wright, Senior Claims Executive Mobile +44 (0)7795 843634 [email protected] GARD (HK) LTD
Dean Forrest, Claims Executive Mobile +44 (0)7801 511643 [email protected]
Trygve Nøkleby, Managing Director Mobile +852 6391 2627 [email protected]
Jennie Gibson, Claims Executive Mobile +44 (0)7786 915855 [email protected]
Keri Marner, Claims Executive Mobile +44 (0)7901 536231 [email protected]
UNDERWRITING
Misty Sung, Claims Executive Mobile +44 (0)7881 921116 [email protected]
Sid Lock, Area Manager Mobile +852 9196 4210 [email protected]
Kelly Turner, Claims Executive Mobile +44 (0)7748 646665 [email protected]
Thorbjörn Emanuelsson, Underwriter Mobile +852 6021 1797 [email protected]
Weiyan Zhou, Claims Executive Mobile +44 (0)7917 351450 [email protected]
Jiadi Sun, Underwriting Asia, Representative
Mobile +852 9878 9091 [email protected]
DEFENCE CLAIMS (LONDON) Fergas Wong, Underwriter Mobile +852 6016 9069 [email protected]
Michael Kougellis, Senior Manager Mobile +44 (0)7525 590909 [email protected] Gina Cao, Deputy Underwriter Mobile +852 9013 7310 [email protected]
Balvinder Ahluwalia, Senior Lawyer Mobile +44 (0)7766 303047 [email protected]
Peter M. Chard, Senior Lawyer Mobile +44 (0)7766 251390 CLAIMS (HONG KONG)
Mobile +44 (0)7733 808051 [email protected] Sandra Guiguet, Senior Manager Mobile +852 9661 6287 [email protected]
Hélène-Laurence Courties, Senior Lawyer Mobile +44 (0)7917 195810 [email protected] Michelle Pun, Senior Claims Executive Mobile +852 9337 6463 [email protected]
Jim Edwards, Senior Lawyer Mobile +44 (0)7879 235982 Wallace Yeung, Senior Claims Executive Mobile +852 9124 6365 [email protected]
Mobile +44 (0)7547 480246 [email protected]
Sharon Chan, Claims Executive Mobile +852 6396 3192 [email protected]
James Hawes, Senior Lawyer Mobile +44 (0)7887 508198 [email protected]
Tracy Chan, Claims Executive Mobile +852 6478 7263 [email protected]
Monica Kohli, Senior Lawyer Mobile +44 (0)7920 423832 [email protected]
Charmaine Chu, Claims Executive Mobile +852 6478 7264 [email protected]
Helenka Leary, Senior Lawyer Mobile +44 (0)7766 251387 [email protected]
Zoe Ho, Claims Executive Mobile +852 6478 7262 [email protected]
Michael Moon, Senior Lawyer Mobile +44 (0)7720 738465 [email protected]
Patrick Lee, Claims Executive Mobile +852 9107 0302 [email protected]
Helen Sandgren, Senior Lawyer Mobile +44 (0)7901 530812 [email protected]
Jonathan Mapp, Claims Executive Mobile +852 6396 3191 [email protected]
Kelly Wagland, Senior Lawyer Mobile +44 (0)7789 938200 [email protected]
Chengkang Zhu, Claims Executive Mobile +852 9032 0502 [email protected]
Selena Challacombe, Lawyer Mobile +44 (0)7393 460326 [email protected]

DEFENCE (HONG KONG)

OY GARD (BALTIC) AB
Tony Wong, Senior Lawyer Mobile +852 6398 7265 [email protected]
Roberto Lencioni, Managing Director Mobile +358 (0)50 500 0000 [email protected] Joseph Liu, Laywer Mobile +852 6478 7260 [email protected]
Julia Zhu, Lawyer Mobile +852 9766 9081 [email protected]
UNDERWRITING
Henry Hemtman, Underwriter Mobile +358 (0)50 414 6943 [email protected] GARD (JAPAN) K.K.

Tadashi Sugimoto, Managing Director Mobile +81 (0)80 4142 9688 [email protected]
CLAIMS (HELSINKI)
Johan Lång, Senior Manager Mobile +358 (0)50 414 6941 [email protected]
CLAIMS (TOKYO)
Martin Jansson, Claims Executive, Surveyor
Masamichi Yokoyama, Senior Manager Mobile +81 (0)80 3546 5062 [email protected]
Mobile +358 (0)50 414 6942 [email protected]
Louis Shepherd, Senior Lawyer Mobile +81 (0)90 4709 5174 [email protected]
Maaria Rätte, Deputy Claims Executive Mobile +358 (0)50 309 7278 [email protected]

24 For up to date contact details please see our website at www.gard.no 25

Out of office hours – Contact details Out of office hours – Contact details

Yoshio Imaizumi, Claims Executive Mobile +81 (0)80 3585 5933 [email protected] Dominic Hurst, Senior Lawyer Mobile +30 6949 723460 [email protected]
Hiroko Suzue, Claims Executive Mobile +81 (0)80 4142 9718 [email protected] Alexandra Chatzimichailoglou, Senior Claims Executive, Lawyer
Tatsuya Funatsu, Claims Executive Mobile +81 (0)80 4939 9488 [email protected] Mobile +30 6974 120812 [email protected]
Asami Kazama, Claims Executive Mobile +81 (0)80 4201 9314 [email protected] Dimitris Giginis, Senior Claims Executive Mobile +30 6981 031386 [email protected]
Peggy Lemou, Senior Claims Executive Mobile +30 6946 460128 [email protected]
UNDERWRITING Irene Anastassiou, Lawyer Mobile +30 694 8809789 [email protected]
Toshiyuki Kawana, Underwriter Mobile +81 (0)90 6479 2544 [email protected] Frode Fugelsnes, Lawyer Mobile +30 693 6570700 [email protected]
Fernando Iida, Underwriter Mobile +81 (0)80 4294 7788 [email protected] Christina Tsouni, Claims Executive Mobile +30 6947 322230 [email protected]
Betty Kalomiri, Deputy Claims Executive Mobile +30 697 449 3257 [email protected]
GARD (NORTH AMERICA) INC
GARD (SINGAPORE) PTE LTD
Sandra Gluck, President Mobile +1 (917) 670 3169 [email protected]
John Martin, Managing Director/Branch CEO
CLAIMS (NEW YORK) Mobile +65 9159 9452 [email protected]

Evanthia Coffee, Senior Lawyer Mobile +1 (917) 399 5918 [email protected] Andre Kroneberg, Vice President, Chief Underwriting Officer Asia
Mobile +65 9159 4688 [email protected]
Frank Gonynor, Senior Claims Adviser, Lawyer
Mobile +1 (917) 670 3164 [email protected] Kunal Pathak, Loss Prevention Executive, Asia
Mobile +65 9129 4530 [email protected]
Claudia Botero-Götz, Senior Lawyer Mobile +1 (646) 248 8109 [email protected]
Edward Fleureton, Senior Claims Executive
Mobile +1 (917) 670 3510 [email protected] CLAIMS (SINGAPORE)

Hugh Forde, Senior Lawyer Mobile +1 (917) 670 3753 [email protected] Ashley Beh, Claims Executive Mobile +65 9159 4391 [email protected]

Patrick Leahy, Senior Claims Executive, Lawyer Rahul Singhal, Claims Executive Mobile +65 9155 7189 [email protected]
Mobile +1 (917) 657 3386 [email protected] Puja Varaprasad, Claims Executive, Lawyer Mobile +65 9155 0761 [email protected]
Kunbi Sowunmi, Senior Lawyer Mobile +1 (646) 812 3447 [email protected]
Cheryl Acker, Claims Executive Mobile +1 (203) 258 7059 [email protected] DEFENCE (SINGAPORE)
Dina Gallaro, Claims Executive Mobile +1 (917) 670 3209 [email protected] Craig Johnston, Senior Manager, Defence
Ann-Marie Roach, Claims Executive Mobile +1 (646) 812 5644 [email protected] Mobile +65 9150 8626 [email protected]

Christine Thomas, Claims Executive Mobile +1 (646) 812 3456 [email protected] Wan Jing Tan, Lawyer Mobile +65 9150 1869 [email protected]

GARD (GREECE) LTD UNDERWRITING (SINGAPORE)

Terje Holte, Vice President Mobile +65 9159 6831 [email protected]
George Karkas, Managing Director Mobile +30 6944 513350 [email protected]
Eilanda Lui, Senior Underwriter Mobile +65 9159 9402 [email protected]
Sven Jensen, Senior Underwriter Mobile +65 9150 2582 [email protected]
CLAIMS (ATHENS)
Themis Ploumidakis, Senior Manager Mobile +30 6946 244965 [email protected]
Sarah Hamon-Mathiopoulou, Senior Lawyer
Mobile +30 6936 835210 [email protected]

26 For up to date contact details please see our website at www.gard.no 27

 Rules

P&I and Defence cover for ships

and other floating structures
 Rules
P&I and Defence cover for ships and other floating structures

Contents

Part I Availability of cover

Chapter 1 Introductory provisions 37

Rule 1 Interpretation 37
Rule 2 The cover 40
Chapter 2 Entries and duration of cover 42
Rule 3 Entries 42
Rule 4 Duration of cover 42
Rule 5 Certificate of Entry 43
Chapter 3 Conditions of cover 44
Rule 6 The Member’s duty of disclosure 44
Rule 7 Alteration of risk 44
Rule 8 Classification and certification of the Ship 45
Rule 9 Survey 46
Chapter 4 Premiums and Calls 48
Rule 10 Setting of Premium Ratings 48
Rule 11 Variation of Premium Ratings 48
Rule 12 Advance Calls and Deferred Calls 48
Rule 13 Supplementary Calls 49
Rule 14 Determination of Supplementary Calls and Deferred Calls etc. 49
Rule 15 Release Calls 49
Rule 16 Closing of Policy Years 50
Rule 17 Repayment of premium 50
Rule 18 Overspill Calls 50
Rule 19 Reserves 50
Rule 20 Payment 51
Rule 20A Insurance Premium Tax 51
Rule 21 Set-off 52
Rule 22 Laid-up returns 52

31
Rules for ships Rules for ships

Chapter 5 Termination and cesser 53 Chapter 2 Limitations etc. on P&I cover 73

Rule 23 Termination by a Member 53 Rule 51 General limitation of liability 73
Rule 24 Termination by the Association 53 Rule 51B Limitation and payment of Overspill Claims 73
Rule 25 Cesser 54 Rule 52 Limitations for charterers and Consortium Vessels 73
Rule 26 Effect of cesser or termination 56 Rule 53 Limitations – oil pollution, passengers and seamen 73
Rule 54 Amounts saved by the Member 74
Rule 55 Terms of contract 74
Part II P&I Cover Rule 56 Non-marine personnel 74
Rule 57 Liability occurring during through transports 75
Chapter 1 Risks covered 57 Rule 58 War risks 75
Rule 27 Liabilities in respect of Crew 57 Rule 59 Specialist operations 77
Rule 28 Liabilities in respect of passengers 59 Rule 60 Drilling, production and accommodation vessels, barges
Rule 29 Liability for other persons carried on board 60 and heavy lift vessels 78
Rule 30 Liability for persons not carried on board 61 Rule 61 Submarines, diving bells and divers 79
Rule 31 Diversion expenses 61 Rule 62 Waste incineration, disposal operations and landfills 79
Rule 32 Stowaways, refugees or persons saved at sea 61 Rule 63 Excluded losses 80
Rule 33 Life salvage 61
Rule 34 Cargo liability 62
Rule 35 Extra handling costs 64 Part III Cover for mobile offshore units
Rule 36 Collision with other ships 65
Rule 37 Damage to fixed or floating objects 66 Rule 64 Terms of cover 82
Rule 38 Pollution 66
Rule 39 Loss of or damage to property 67
Rule 40 Liability for obstruction and wreck removal 67 Part IV Defence cover
Rule 41 General average 67
Rule 42 Salvage 68 Chapter 1 Risks covered 83
Rule 43 Towage 68 Rule 65 Cases pertaining to the operation of the Ship 83
Rule 44 Legal costs 69 Rule 66 Cases pertaining to acquisition or disposal of the Ship 84
Rule 45 Enquiry expenses 69 Chapter 2 Limitations etc. on Defence cover 85
Rule 46 Measures to avert or minimise loss 70 Rule 67 Excluded costs 85
Rule 47 Fines 70 Rule 68 Disputes with the Association and other Members – unpaid sums 85
Rule 48 Disinfection and quarantine expenses 71 Rule 69 The Association’s right to control and direct
Rule 49 Confiscation of the Ship 71 the handling of a case – withdrawal of cover 86
Rule 50 Damage to Member’s own property 72 Rule 70 Limitation 86

32 33
Rules for ships Rules for ships

Part V General limitations etc. on P&I and Defence cover Appendices

Rule 71 Other insurance 88 Appendix I Additional insurances 105

Rule 72 Conduct of Member 89 1 Introduction 105
Rule 73 Nuclear perils 89 2 War risks 105
Rule 74 Unlawful trades etc. 90 3 Other additional insurances 111
Rule 75 Part tonnage 91 Appendix II Charterers’ limits including special limit for Consortium Claims 112
Rule 76 Deductibles 91 1 Introduction 112
Rule 77 Administrative costs, insolvency and sanctions etc. 91 2 Charterers co-assured under an Owner’s Entry 112
3 Charterers’ Entry – all categories of claims 112
4 Oil pollution – salvage 112
Part VI Miscellaneous provisions 5 Consortium Claims 113
Appendix III Oil pollution 116
Chapter 1 Joint Members, Co-assureds and Affiliates 92 1 Definitions 116
Rule 78 Cover for Co-assureds and Affiliates 92 2 Limit of insurance for Owner’s Entries 116
Rule 79 Joint Members, Co-assureds, Affiliates and Fleet Entries 94 Appendix IV Passengers and seamen 118
Chapter 2 Claims etc. 95 Appendix V Deductibles 122
Rule 80 Time of occurrence 95 1 Introduction 122
Rule 81 Time-bar 96 2 P&I entries 122
Rule 82 Obligations with respect to claims 97 3 Defence entries 123
Rule 83 Exclusion of liability 98 Appendix VI Rules on Overspill Claims and Overspill Calls and related matters 124
Rule 84 Recoveries from third parties 98 1 Interpretation 124
Rule 85 Discharge 100 2 Recoverability of Overspill Claims 125
Rule 86 Currency of payments 100 3 Payment of Overspill Claims 126
Rule 87 Payment first by Member 101 4 Overspill Claims – expert determinations 127
Rule 88 Payments and undertakings to third parties 102 5 Levying of Overspill Calls 129
Chapter 3 Assignment, law, arbitration and amendments to Rules 103 6 Closing of Policy Years for Overspill Calls 131
Rule 89 Assignment 103 7 Security for Overspill Calls on termination or cessor 132
Rule 90 Governing law 103 Appendix VII Particular clauses 133
Rule 91 Arbitration 103
Rule 92 Amendments to the Rules 104

34 35
 Rules
P&I and Defence cover for ships and other floating structures

PART I AVAILABILITY OF COVER

Chapter 1 Introductory provisions

Rule 1 Interpretation
1 In these Rules the following words or expressions shall have the following
meanings:

Advance Call
the initial premium payable for a Policy Year in respect of an entry (other
than a fixed premium entry) and calculated in accordance with Rule 12.

Affiliate
any person who is insured pursuant to Rule 78.1(a).

Articles of Association
for entries with Assuranceforeningen Gard -gjensidig-, the Statutes of
Assuranceforeningen Gard -gjensidig- and for entries with Gard P. & I.
(Bermuda) Ltd, the Bye-Laws of Gard P. & I. (Bermuda) Ltd.

Association
for entries with Assuranceforeningen Gard -gjensidig- the ‘Association’
means Assuranceforeningen Gard -gjensidig- and for entries with Gard
P. & I. (Bermuda) Ltd the ‘Association’ means Gard P. & I. (Bermuda) Ltd.

Bill of Lading
bill of lading or similar document of title.
Certificate of Entry
document issued by the Association pursuant to Rule 5.1, including
(where the context permits) any endorsement note in respect of the
relevant entry issued pursuant to Rule 5.3, which evidences the terms
and conditions of the contract of insurance in respect of the Ship.

Charterer’s Entry
an entry effected by a charterer and which does not insure any other
person except as a Co-assured or an Affiliate.
Consortium Agreement
shall have the meaning given to it in Appendix II
Consortium Claim
shall have the meaning given to it in Appendix II.
Consortium Vessel
shall have the meaning given to it in Appendix II.

37
Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Co-assured
Overspill Call
any person who is insured pursuant to Rule 78.1(b). shall have the meaning given to it in Appendix VI.

Crew
Overspill Claim
officers, including the master, and seamen contractually obliged to shall have the meaning given to it in Appendix VI.
serve on board the Ship, including substitutes and including such
Owner’s Entry
persons while proceeding to or from the Ship. an entry effected by an owner, bareboat or demise charterer or

Defence cover and Defence entry operator of the Ship and which does not insure a charterer of the Ship
insurance by the Association for risks specified in Part IV of these (other than a charterer insured as a Co-assured or an Affiliate).
Rules, and the entry of a Ship for such cover.
P&I cover and P&I entry

Deferred Call insurance by the Association for risks specified in Part II of these Rules,
the proportion of the Premium Rating for a Policy Year in respect of and the entry of a Ship for such cover.
an entry (other than a fixed premium entry) which shall be deferred for
Policy Year
payment in later years in accordance with Rule 12. a year from noon GMT on 20th February in any year to immediately

Group Excess Loss Policies prior to noon GMT on the next following 20th February.
the excess of loss reinsurance policy or policies effected by parties Pooling Agreement
to the Pooling Agreement. an Agreement, to which the Association is a party, between certain
Group Reinsurance Limit protection and indemnity associations dated 20 February 1998 and
shall have the meaning given to it in Appendix VI. any addendum to, or variation or replacement of such agreement.

Hull Policies
Premium Rating
the insurance policies effected on the hull and machinery of the Ship, the agreed rating on which the Advance Call is payable to the
including any excess liability policy. Association, or the fixed premium payable to the Association on a

Insurance Premium Tax fixed premium entry, according to the terms of the Ship’s entry.
Any taxes or other dues payable in respect of an entry of a Ship in the
Release Call
Association in the country where the Ship is registered, the country any premium which may be payable on termination or cesser of an
where the Member is resident, the country where the Member has a entry (other than a fixed premium entry) in accordance with Rule 15.1.
permanent place of business or in the country where the risk is located.
Ship

Joint Members a ship or other floating structure entered in the Association (other
where the Ship is entered in the names of more than one Member, than a mobile offshore unit entered in accordance with Part III of
the named Members. these Rules).

Member
Supplementary Call
an owner, operator or charterer (including a bareboat or demise further premium payable for a Policy Year in respect of an entry (other
charterer) of a ship entered in the Association who according to the than a fixed premium entry), in addition to the Advance Call and
Articles of Association and these Rules is entitled to membership of Deferred Call, but excluding any Overspill Call.
the Association, provided that, where the context allows, the term
‘Member’ shall, in these Rules, include a Co-assured and an Affiliate.

38 39
Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

2 Headings and notes are for reference only, and shall not affect the 5 Subject always to the provisions of Rule 2.4, the Association may in
construction of these Rules. its absolute discretion exercise powers conferred in the Articles of
3 Any reference to a charterer shall be deemed (unless otherwise expressly Association to pay compensation in respect of a liability, loss, cost or
indicated) to be a reference to a charterer other than a bareboat or expense which is not otherwise covered under these Rules.
demise charterer. 6 It shall be a condition of Defence cover that the Ship has valid and
4 Any reference to a person shall be deemed to include a reference to an subsisting P&I cover with the Association, except in the case of building
individual or a body corporate or unincorporate, as the context requires. or purchase contracts where there must be an undertaking by the
5 A person shall be deemed to be the manager or the operator of a Ship Member to enter the Ship for P&I cover at the latest on taking delivery of
for the purposes of these Rules if the Association in its discretion shall the same.
so determine.
6 Where any matter requires the agreement, approval or consent of the
Association, agreement, approval or consent shall only be deemed given
if in writing.

Rule 2 The cover

1 A Member shall be covered for such of the risks specified in Parts II,
III and IV of these Rules as are agreed between the Member and the
Association.
2 A Member with P&I cover shall be covered for such of the additional risks
specified in Appendix I as are either
a expressed in Appendix I to be available to such a Member; or

b expressly agreed between the Member and the Association.

Note: The risks specified in Appendix I are separately treated as
they are excluded from the Pooling Agreement and are subject to
a separate reinsurance programme.
3 The cover afforded by the Association to a Member shall be subject
to the Articles of Association and to these Rules and to any special
conditions agreed between the Association and the Member.
4 A Member is only covered in respect of liabilities, losses, costs and
expenses incurred by him which arise
a in direct connection with the operation of or, in the case of Defence

cover, acquisition or disposal of the Ship; and
b in respect of the Member’s interest in the Ship; and

c out of events occurring during the period of entry of the Ship for the

relevant risk in the Association.

40 41
Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Chapter 2 Entries and duration of cover Rule 5 Certificate of Entry

1 After an entry has been accepted, the Association shall issue a Certificate
Rule 3 Entries of Entry which shall evidence the terms and conditions of the contract
1 Application for an entry of a ship may be made by any owner, operator, of insurance.
charterer (including a bareboat or demise charterer) or other insurer of 2 The following provision will be deemed to be incorporated into all
that ship, and the entry shall be on the basis of either an Owner’s Entry Certificates of Entry:
or Charterer’s Entry.
2 A ship may be entered with the Association for less than its full tonnage. “This Certificate of Entry is evidence only of the contract of indemnity
3 Application for an entry of a ship shall be made in such form as may from insurance between the above named Member(s) and the Association
time to time be required by the Association. The particulars given in any and shall not be construed as evidence of any undertaking, financial or
application form, together with any other particulars or information given otherwise, on the part of the Association to any other party.
in writing in the course of applying for insurance or negotiating changes
in the terms of insurance, shall form the basis of the contract of insurance In the event that a Member tenders this Certificate as evidence of
between the Member and the Association. insurance under any applicable law relating to financial responsibility, or
4 The Association may refuse to accept an application for the entry of a otherwise shows or offers it to any other party as evidence of insurance,
ship, or may accept an application for P&I cover but not for Defence such use of this Certificate by the Member is not to be taken as any
cover, without stating grounds therefor, and whether or not the applicant indication that the Association thereby consents to act as guarantor or to
is already a Member of the Association. be sued directly in any jurisdiction whatsoever. The Association does not
so consent.”
Rule 4 Duration of cover
The cover shall commence at the time and date agreed by the 3 If the Association and a Member shall at any time agree a variation in the
Association and shall continue until immediately prior to noon GMT on terms and conditions of the contract of insurance the Association shall
the 20th February next ensuing, and thereafter, unless terminated in issue an endorsement note stating the terms of such variation and the
accordance with these Rules, from Policy Year to Policy Year. date from which such variation is to be effective.

42 43
Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Chapter 3 Conditions of cover 2 Where there is an alteration of the risk which has been intentionally
caused or agreed to by the Member and the Association would not
Rule 6 The Member’s duty of disclosure have accepted the entry at the same Premium Rating if it had known of
1 The Member shall prior to the conclusion of the contract of insurance such an alteration prior to the conclusion of the contract of insurance,
make full disclosure to the Association of all circumstances which the Association is free from liability to the extent that the liability, loss,
would be of relevance to the Association in deciding whether and on cost or expense incurred by the Member was caused or increased by
what conditions to accept the entry. Should the Member subsequently the alteration. Where the Association would have accepted the entry at
become aware of any such circumstances as are mentioned above, or the same Premium Rating but on other conditions, the Association shall
of any change in such circumstances as previously disclosed, he must only be liable to the extent that it is proved that any liability, loss, cost or
without undue delay inform the Association. expense would have been covered under the conditions the Association
2 Where the Member at the conclusion of the contract of insurance has would have accepted.
neglected his duty of disclosure and the Association would not have
accepted the entry at the Premium Rating agreed if the Member had Rule 8 Classification and certification of the Ship
made such disclosure as it was his duty to make, the Association is free 1 Unless otherwise agreed in writing between the Member and the
from liability. Where the Association would have accepted the entry Association it shall be a condition of the insurance of the Ship that:
at the same Premium Rating but on other conditions, the Association a the Ship shall be and remain throughout the period of entry classed

shall only be liable to the extent that it is proved that any liability, loss, with a classification society approved by the Association;
cost or expense would have been covered under those conditions the b the Member shall promptly call to the attention of that classification

Association would have accepted. society any incident, occurrence or condition which has given or
3 Where the Member neglects his duty of disclosure subsequent to the might have given rise to damage in respect of which the classification
conclusion of the contract of insurance and the Association would not society might make recommendations as to repairs or other action to
have accepted the entry at the same Premium Rating had it known of the be taken by the Member;
circumstances prior to the conclusion of the contract, the Association is c the Member shall comply with all the rules, recommendations and

free from liability. Where the Association would have accepted the entry requirements of that classification society relating to the Ship within
at the same Premium Rating but on other conditions, the Association the time or times specified by the society;
shall only be liable to the extent that it is proved that any liability, loss, d the Association is authorised to inspect any documents and obtain

cost or expense would have been covered under those conditions the any information relating to the maintenance of class of the Ship in the
Association would have accepted. possession of any classification society with which the Ship is or has at
any time been classed prior to and during the period of insurance and
Rule 7 Alteration of risk such classification society or societies are authorised to disclose and
1 Where after the conclusion of the contract of insurance circumstances make available such documents and information to the Association
occur which result in an alteration of the risk, the Member shall disclose upon request by it and for whatsoever purpose the Association in its
such circumstances to the Association without undue delay. sole discretion may consider necessary;

44 45
Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

e the Member shall immediately inform the Association if, at any

3 Should the Member refuse to co-operate in an inspection under Rule
time during the period of entry, the classification society with which 9.1, or fail to give notice in accordance with Rule 9.2, the Association will
the Ship is classed is changed and advise the Association of all thereafter be liable only to the extent that the Member can prove that
outstanding recommendations, requirements or restrictions specified any liability, cost or expense is not attributable to defects in the Ship that
by any classification society relating to the Ship as at the date of would have been detected in the course of an inspection under Rule 9.1.
such change; 4 Where an inspection reveals matters which, in the sole determination of
f the Member shall comply or procure compliance with all statutory
the Association, represent a deficiency in the Ship, the Association may
requirements of the state of the Ship’s flag relating to the exclude specified liabilities, losses, costs and expenses from the cover
construction, adaptation, condition, fitment, equipment, manning, until the deficiency has been repaired or otherwise remedied.
safe operation, security and management of the ship and at all times 5 By applying for an entry of a ship or upon the continuation of the entry of
maintain or procure the maintenance of the validity of such statutory the Ship in the Association, the Member;
certificates as are issued by or on behalf of the state of the Ship’s flag a consents to and authorizes the disclosure by the Association to any

in relation to such compliance. association which is a party to the Pooling Agreement the findings
2 The Association shall notify the Member when it intends to inspect of any survey or inspection of such ship undertaken on behalf of the
classification documents or request information from a classification Association either pursuant to an application for, or after entry in,
society in accordance with Rule 8.1.d. the Association.
3 The Member shall not be entitled to any recovery from the Association b waives any rights or claims against the Association of whatsoever

in respect of any claim arising during a period when the Member is not nature arising in respect of or relating to the contents of or opinions
fulfilling or has not fulfilled the conditions in Rule 8.1., provided always expressed in any survey or inspection report so disclosed,
that where the entry of a Ship is solely in the name of or on behalf of a provided that:
charterer, and the charterer is not responsible for the maintenance of i such survey or inspection reports may only be disclosed to another
the Ship, or for compliance with classification or statutory requirements, association when an application for entry of such ship is made thereto;
the rights of recovery of such charterer shall not be dependent on the and
fulfilment of the conditions in Rule 8.1(b), (c), (d), (e) and (f) above. ii the disclosure of the survey or inspection shall be for the limited
purpose only of that association considering an application to enter
Rule 9 Survey such ship for insurance.
1 The Association may at any time during the period of entry appoint
a surveyor to inspect the Ship on behalf of the Association.
2 Where the Ship has been laid-up for a period exceeding six months, the
Member shall give the Association not less than seven days notice prior
to the Ship leaving the place of lay-up for recommissioning, to afford the
Association an opportunity to inspect the Ship pursuant to Rule 9.1.

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Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Chapter 4 Premiums and Calls 3 Notification of Advance Calls and Deferred Calls effective for the
following Policy Year shall, if practicable, be given to Members prior to
Rule 10 Setting of Premium Ratings 20th January.
1 Each Ship’s Premium Rating shall be set taking into account all matters, 4 A Ship entered in the course of the Policy Year shall pay a daily pro
including the Member’s loss record, which the Association may consider rata proportion of the stipulated Advance Calls and Deferred Calls for
relevant in assessing the degree of risk involved. All Ships under the the year.
same management may at the discretion of the Association be deemed,
for the purpose of determining the loss record or otherwise for the Rule 13 Supplementary Calls
determination of Premium Rating, to be owned by one Member. If the Advance Calls and Deferred Calls for a Policy Year are considered
2 A Ship may be entered on the basis of a fixed premium in an amount insufficient to cover the claims on, or costs, expenses and outgoings
agreed between the Association and the Member. The provisions of of the Association, including any allocation to reserves the Association
Rules 12, 13, 15, 16, 17, 18 and 19 shall not apply to fixed premium may deem appropriate and including the excess, if any, of claims costs,
entries. expenses and outgoings of any closed Policy Year over the provisions or
3 The Association may, in its discretion, levy an additional fixed premium reserves made thereof, the Association may at any time during or after
for cover made available pursuant to Rule 2.2. The provisions of Rule 12 the end of the relevant Policy Year, call for one or more Supplementary
shall not apply to any such fixed premium. Calls which shall be levied on each Member in proportion to the net
Advance Calls for such year, unless the entry has been accepted on
Rule 11 Variation of Premium Ratings special terms which otherwise provide.
1 The Association may determine that for the next ensuing Policy Year the
Premium Ratings of the Ships entered in the Association shall generally Rule 14 Determination of Supplementary Calls and Deferred Calls etc.
be varied by a fixed percentage, before any further adjustment is made The Association may determine Advance Calls, Deferred Calls and
in order to take account of the Member’s loss record, alteration in the Supplementary Calls and variations in the Premium Rating, either
extent of the risk or any other factor the Association may deem relevant. generally for all entries or separately for any entry or category of entries.
2 Notification of variation of Premium Ratings effective for the following
Policy Year shall, if practicable, be given to Members prior to Rule 15 Release Calls
20th December. When an entry is terminated or shall cease, the Association may, without
awaiting the fixing of Deferred Calls and Supplementary Calls, determine
Rule 12 Advance Calls and Deferred Calls an additional premium for each open Policy year based on, but not
1 Before the commencement of each Policy Year, the Association shall limited to, the anticipated rate(s) of Deferred Calls and Supplementary
decide what percentage of the Premium Ratings of all Ships entered for Calls for each year. Upon payment of such Release Calls, the Member
that year is to be collected by way of Advance Calls in the Policy Year shall be released from all liabilities for further Deferred Calls and
to which it relates and what proportion shall be deferred for call in later Supplementary Calls in respect of the said entry and shall under no
years (the Deferred Call). circumstances be entitled to participate in the distribution of any surplus
2 The Association may at any time after the end of a Policy Year call for decided upon thereafter.
the Deferred Call in whole or in part. All Deferred Calls so made shall be
calculated pro rata of the Advance Calls in the relevant Policy Year.

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Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Rule 16 Closing of Policy Years Rule 20 Payment

1 The Association may decide to close a Policy Year at such time as it 1 Subject to Rule 20.3, Advance Calls are due in three instalments
deems expedient. as follows:
2 No further Deferred Calls and Supplementary Calls, other than Overspill a for the period 20th February – 20th June, on 20th March;

Calls, shall be levied in respect of a closed Policy Year. b for the period 20th June – 20th October, on 5th July;

c for the period 20th October – 20th February, on 5th November.

Rule 17 Repayment of premium 2 Where the Ship is entered in the course of a Policy Year, a pro rata
If, at the time of the closing of a Policy Year pursuant to Rule 16, the Advance Call for the four-monthly period in which it is entered is due at
Advance Calls, Deferred Calls and Supplementary Calls in respect of that once, with the remaining instalments, if any, due at the times specified in
year shall exceed the claims, costs, expenses and outgoings of the year, Rule 20.1.
the Association may decide that such excess shall be distributed, in whole 3 Advance Calls for Defence cover and Advance Calls of less than
or in part, to the Members entered in that Policy Year in proportion to USD 5,000 (or the equivalent in any other currency, as determined by the
their net Advance Calls. Association) per Ship are due in full on 20th March.
4 Fixed premiums are due on inception of cover.
Rule 18 Overspill Calls 5 Deferred Calls and Supplementary Calls, other than Release Calls, are
If the Association shall at any time determine that funds are or may in the due on the date specified by the Association.
future be required to pay part of an Overspill Claim (whether incurred 6 Any other sums debited by the Association to a member, including
by the Association or by any other party to the Pooling Agreement), Release Calls, Overspill Calls, Insurance Premium Tax for which the
the Association may levy one or more Overspill Calls to meet the Member is liable, reimbursement of deductibles, interest, costs or
Association’s liability for its proportion of such Overspill Claim, pursuant expenses, are due on demand.
to the terms and conditions as set out in Appendix VI to these Rules. 7 If any sums due to the Association from the Member are not paid on or
before the due date interest is chargeable on such unpaid sums at such
Rule 19 Reserves rate as the Association may from time to time determine.
1 The Association may establish and maintain such reserves as it may 8 Members’ Advance Calls, Deferred Calls, Supplementary Calls, Overspill
deem appropriate and may decide that any part of such reserves shall Calls, other premiums and other sums which cannot be collected shall be
be applied to reduce Deferred Calls and Supplementary Calls including deemed to be an expense of the Association.
Overspill Calls.
2 Reserve funds may not be distributed to the Members except as Rule 20A Insurance Premium Tax
provided for in the Articles of Association. The Member shall indemnify the Association and hold it harmless in
respect of any liability, cost or expense incurred or amount paid by
the Association in respect of any Insurance Premium Tax for which the
Member is liable.

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Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

Rule 21 Set-off Chapter 5 Termination and cesser

1 Without prejudice to anything elsewhere contained in the Articles of
Association or these Rules, the Association shall be entitled to set off any Rule 23 Termination by a Member
amount due from a Member to the Association against any amount due A Member may terminate the entry with effect from the end of the Policy
from the Association to such Member or its Co-assureds or Affiliates. Year in respect of one or more Ships by giving written notice thereof
2 A Member shall not set off against any amount due from it to the prior to 20th January. Except with the agreement of the Association, a
Association the amount of any claim it or its Co-assureds or Affiliates may Ship may not be withdrawn nor may notice of termination be given with
have against the Association. effect from any other date.

Rule 22 Laid-up returns Rule 24 Termination by the Association

1 Subject to any special terms which may have been agreed, if the Ship 1 The Association may terminate the entry with effect from the end of
has been laid up with no cargo on board at a safe lay-up location for a the Policy Year in respect of one or more Ships by giving written notice
period of at least 30 consecutive days, excluding the day of arrival at thereof prior to 20th January.
and the day of departure from the lay-up location, such proportion as 2 The Association may also terminate the insurance of any or all of the
the Association may decide of the Advance Call or of the fixed premium Ships entered by a Member:
payable, pro rata for the period of the lay-up, shall be returned to a without notice, where a casualty or other event has been brought

the Member. about by wilful misconduct on the part of the Member, as defined in
2 No claim for laid-up returns shall be recoverable from the Association Rule 72;
unless the Member has informed the Association of the lay-up of the Ship b on three days’ notice, where the Member has failed to pay when due

within 30 days after the commencement of the lay-up and the claim for and demanded any Advance Call, Deferred Call, Supplementary Call
laid-up returns is made within 30 days of the end of the lay-up period. or other amount due from him to the Association;
c on 14 days’ notice, where the Member has neglected a duty of

disclosure under Rule 6 or Rule 7 or where there has been an
alteration of the risk after the conclusion of the contract of insurance;
d on 45 days’ notice, without giving any reason.

3 Notwithstanding and without prejudice to Rules 24.1 and 24.2 and Rule
25.4, the Association may, on such notice in writing as the Association
may decide, terminate the entry in respect of any and all Ship(s) in
circumstances where the Member has exposed or may, in the opinion
of the Association, expose the Member or the Association to the risk of
being or becoming subject to any sanction, prohibition or adverse action
in any form whatsoever by the State of the Ship(s) flag, by any State
where the Association has its registered office or permanent place of
business or by any State being a Major Power or by the United Nations

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Rules for ships Part I. Availability of cover Rules for ships Part I. Availability of cover

or the European Union. For the purpose of this Rule 24.3 “Major Power” e the Ship is transferred to a new owner by sale or otherwise;

means any of the following States: United Kingdom, United States f new managers of the Ship are appointed or there is a change in the
of America, France, the Russian Federation and the People’s Republic operator of the Ship;
of China. g any mortgagee or other secured party enters into possession of

the Ship;
Rule 25 Cesser h the Ship ceases to be classed with a classification society approved by

1 A Member shall (subject to Rule 25.5) cease to be covered by the the Association, or its class is suspended;
Association in respect of any and all Ships entered by him in the i the Ship is requisitioned;

following circumstances: j the Ship, with the consent or knowledge of the Member, is being

a where the Member is a corporation, a resolution is passed for the
used for the furtherance of illegal purposes.
voluntary winding up of the Member or an order is made for its 3 Where a Ship disappears, it shall be deemed to be a total loss ten days
compulsory winding up or it is dissolved or a receiver or similar from the day it is last heard of.
official to all or part of its affairs is appointed or any secured party 4 Notwithstanding and without prejudice to Rules 25.1, 25.2 and 25.3,
takes possession of any of its property or it seeks protection from its a Member shall forthwith cease to be insured by the Association in
creditors under any applicable bankruptcy or insolvency laws or any respect of any and all Ship(s) entered by him if any Ship is employed by
similar event occurs (in the determination of the Association) in any the Member in a carriage, trade or on a voyage which will thereby in any
applicable jurisdiction; and way howsoever expose the Association to the risk of being or becoming
b where the Member is an individual, the Member dies or becomes
subject to any sanction, prohibition or adverse action in any form
incapable by reason of mental disorder of managing or administering whatsoever by any State where the Association has its registered office
his property and affairs or he becomes bankrupt or he makes any or permanent place of business or by any State being a Major Power
composition or arrangement with his creditors generally or a receiving or by the United Nations or the European Union. For the purpose of
order is made against him or any secured party takes possession of this Rule 25.4 “Major Power” means any of the following States: United
any of his property or any similar event occurs (in the determination of Kingdom, United States of America, France, the Russian Federation and
the Association) in any applicable jurisdiction. the People’s Republic of China.
2 The Member shall (subject to Rule 25.5) cease to be covered by the 5 Notwithstanding the provisions of Rules 25.1, 25.2 and 25.4, the
Association in respect of any Ship entered by him in the following Association may decide in any particular case that cover shall be
circumstances: continued without interruption, or that cover shall be reinstated, in either
a the Ship becomes a total loss;
case on such terms as the Association shall determine.
b the Ship is, in the determination of the Association, abandoned by the
6 Notwithstanding the provisions of Rule 25.2. (a), (b), (c) and (d), the
Member on account of its total loss appearing to be unavoidable; Association shall cover subject to these Rules and the terms of entry
c the Ship is accepted by the hull underwriters (whether of marine or
agreed, liabilities, losses, costs and expenses flowing from the casualty
war risks) as a constructive total loss; which gave rise to the total loss or constructive total loss of the Ship.
d the Ship suffers damage and the cost of repairs (as determined

by the Association) will equal or exceed the higher of 80% of its
insured value or of its value in repaired condition (as determined by
the Association);

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Rules for ships Part I. Availability of cover Rules for ships Part II. P&I cover

Rule 26 Effect of cesser or termination PART II P&I COVER

1 Where the insurance ceases or is terminated, the Member shall remain
liable for all Advance Calls, Deferred Calls, Supplementary Calls, Chapter 1 Risks covered
Overspill Calls and other premiums in respect of the then current Policy
Year pro rata for the period up to the date of cesser or termination, and Rule 27 Liabilities in respect of Crew
for all Deferred Calls, Supplementary Calls, Overspill Calls and premiums 1 The Association shall cover:
in respect of prior Policy Years. a liability to pay hospital, medical, maintenance, funeral and other

2 The Association shall be under no liability whatsoever by reason of costs and expenses incurred in relation to the injury to, or illness or
anything occurring after cessation or termination. death of, a member of the Crew, including costs and expenses of
repatriating the member of the Crew and his personal effects, or
sending home an urn of ashes or coffin and personal effects in the
case of death, and costs and expenses necessarily incurred in sending
a substitute to replace the repatriated or dead man;
b liability to repatriate and compensate a member of the Crew for

the loss of his employment caused in consequence of the actual or
constructive total loss of the Ship or of a major casualty rendering the
Ship unseaworthy and necessitating the signing off of the Crew;
c liability to pay compensation or damages in relation to the injury to, or

illness or death of, a member of the Crew;
d liability for costs and expenses of travelling incurred by a member of

the Crew when the travelling is occasioned by a close relative having
died or become seriously ill after the Crew member signed on, and
costs and expenses necessarily incurred in sending a substitute to
replace that Crew member;
e liability for wages payable to an injured or sick member of the Crew or

on death to his estate;
f liability in respect of loss of or damage to the personal effects of a

Crew member,
provided that under this Rule 27.1:
i where the liability arises under the terms of a crew agreement or other
contract of service or employment, and would not have arisen but
for those terms, the liability is not covered by the Association unless
those terms have been previously approved by the Association;
ii there shall be no recovery in relation to liability which arises under
a contract of indemnity or guarantee between the Member and
a third party;

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

iii the cover shall not include liabilities, costs or expenses arising out or any other act of the Member in respect of the Ship, save and to the
of the carriage of specie, bullion, precious or rare metals or stones, extent permitted by this Rule 27.3 in respect of the Member’s liability for
plate or other objects of a rare or precious nature, bank notes or other such expense under the Maritime Labour Convention 2006 as amended.
forms of currency, bonds or other negotiable instruments, whether the 4 Where the Association has issued to a Member certificates of insurance
value is declared or not, unless the Association has been notified prior or other financial security in respect of shipowners’ liability as required
to any such carriage, and any directions made by the Association have under Regulation 4.2, Standard A4.2.1 paragraph 1(b) or Regulation 2.5
been complied with. Standard A2.5.2 of the Maritime Labour Convention 2006 as amended
iv references to personal effects shall exclude valuables and any other (MLC Certificates), the Association shall discharge and pay on behalf
article which in the opinion of the Association is not an essential of the Member the liabilities, losses, costs and expenses set out in and
requirement of a Crew member. subject to the conditions in the Maritime Labour Convention Extension
2 The Association shall cover: Clause 2016 included in Appendix IV, section 4, to these Rules. The terms
a costs and expenses which are not recoverable under Rule 27.1 and
and conditions of the Maritime Labour Convention Extension Clause
which are necessarily incurred in sending a substitute to replace 2016 shall be deemed to be part of the contract of insurance with a
a member of the Crew who has been left behind; Member upon the approval by the Association of a Member’s application
b costs and expenses which are not recoverable under Rule 27.1, which
for MLC Certificates.
are necessarily incurred under a statutory obligation in repatriating
a member of the Crew of the Ship and in sending a substitute to Rule 28 Liabilities in respect of passengers
replace him and which would not have been incurred had there been 1 The Association shall cover:
no such statutory obligation; and a liability for injury to, or illness or death of, or loss of or damage to

c costs and expenses incurred as a direct consequence of complying
the effects of passengers and hospital, medical or funeral expenses
with an order for the deportation of a member of the Crew and in incurred in relation to such injury, illness or death;
sending a substitute to replace him which would not have been b liability to pay damages or compensation to passengers on board

incurred had no such order been made, the Ship where such liability arises in consequence of a casualty,
provided that such costs or expenses as are referred to in paragraphs (a), including any liability to return passengers to their port of departure
(b) and (c) do not arise out of or in consequence of: or to forward them to their port of destination and to pay for their
i the termination of any agreement; or maintenance ashore;
ii breach by the Member of any agreement or other contract of service c liability pursuant to mandatory rules of law for loss caused by delay in

or employment; or the carriage of passengers and their effects;
iii sale of the Ship; or d costs and expenses incurred as a direct consequence of complying

iv any other act of the Member in respect of the Ship. with an order for the deportation of a passenger which would not
3 The Association shall cover liability to repatriate a member of the Crew have been incurred had no such order been made,
pursuant to any statutory enactment giving effect to the Maritime Labour provided that:
Convention 2006 as amended or any materially similar enactment, i the Association’s liability under paragraphs (a) and (b) above shall not
provided always that there shall be no recovery in respect of liabilities exceed what it would have been had the passage contract relieved the
arising out of the termination of any agreement, or the sale of the Ship, Member of liability to the maximum extent permitted by applicable law;

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ii the Association’s liability under paragraph (d) above shall be subject 2 The Association shall cover costs and expenses incurred as a direct
to the provisos to Rule 27.2; consequence of complying with an order for the deportation of any such
iii the cover shall be subject to proviso (iii) to Rule 27.1; and other person carried on board which would not have been incurred had
iv for the purpose of paragraph (b) above a casualty shall be defined as no such order been made, subject to the provisos to Rule 27.2.
an incident or condition on board involving either collision, stranding,
explosion, fire or other cause rendering the Ship incapable of safe Rule 30 Liability for persons not carried on board
navigation to its intended destination or a threat to the life, health or The Association shall cover liability resulting from the injury to, or illness
safety of passengers. or death of persons, other than Crew, passengers and other persons
2 Where liabilities to passengers include liabilities arising under a non-war carried on board, provided that where the liability arises under the terms
certificate issued by the Association in compliance with either: of a contract or indemnity and would not have arisen but for those terms,
a Article 4bis of the Athens Convention relating to the Carriage of
the liability shall only be covered when and to the extent that those terms
Passengers and their Luggage by sea, 1974 and the Protocol thereto have been approved by the Association.
of 2002, or
b Regulation (EC) No.392/2009 of the European Parliament and of the
Rule 31 Diversion expenses
Council of 23rd April 2009 on the liability of carriers of passengers by The Association shall cover extra costs of fuel, insurance, wages, stores,
sea in the event of accidents, provisions and port charges attributable to a diversion, over and above
and such liabilities (“Certified Liabilities”) exceed or may exceed in the the costs that would have been incurred but for the diversion, where
aggregate the limit of cover specified in Appendix IV: these are incurred solely for the purpose of securing treatment for
i the Association may in its absolute discretion defer payment of a claim an injured or sick person on board, or for the purpose of searching for
in respect of those liabilities or any part thereof until the Certified a person missing from the Ship, or necessarily incurred while awaiting
Liabilities, or such part of the Certified Liabilities as the Association a substitute for such person, or for the purpose of saving persons at sea.
may decide, have been discharged; and
ii if and to the extent any Certified Liabilities discharged by the Rule 32 Stowaways, refugees or persons saved at sea
Association exceed the said limit any payment by the Association The Association shall cover costs and expenses directly and reasonably
in respect thereof shall be by way of loan and the Member shall incurred in consequence of the Ship having stowaways, refugees or
indemnify the Association in respect of such payment. persons saved at sea on board, but only to the extent that the Member
is legally liable for the costs and expenses or they are incurred with the
Rule 29 Liability for other persons carried on board approval of the Association. The cover does not include consequential
1 The Association shall cover liability arising out of the injury to, or illness or loss of profit or depreciation.
death of, or liability for loss of or damage to the effects of persons carried
on board other than Crew or passengers provided that: Rule 33 Life salvage
i in the case of a person other than a close relative of a member of The Association shall cover sums legally due to third parties by reason of
the Crew, the Association has approved the presence of such persons the fact that they have saved or attempted to save the life of any person
on board; on or from the Ship, but only if, and to the extent that, such payments
ii the cover shall be subject to proviso (iii) to Rule 27.1. are not recoverable under the Hull Policies or from cargo owners
or underwriters.

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Rule 34 Cargo liability iii liabilities, costs and expenses which would not have been incurred by
1 The Association shall cover the following liabilities when and to the the Member if the cargo had been carried on terms no less favourable
extent that they relate to cargo intended to be or being or having been to the Member than those laid down in the Hague or Hague-Visby
carried on the Ship: Rules, save where the contract of carriage is on terms less favourable
a liability for loss, shortage, damage or other responsibility arising out of to the Member than those laid down in the Hague or Hague-Visby
any breach by the Member, or by any person for whose acts, neglect Rules solely because of the relevant terms of carriage being of
or default he may be legally liable, of his obligation properly to load, mandatory application;
handle, stow, carry, keep, care for, discharge or deliver the cargo or iv liabilities, costs and expenses arising out of the discharge of cargo at
out of unseaworthiness or unfitness of the Ship; a port or place other than that stipulated in the contract of carriage;
b liability for loss, shortage, damage or other responsibility in respect of
v liabilities, costs and expenses arising out of the failure to arrive or
cargo carried by a means of transport other than the Ship, when the late arrival of the Ship at port of loading, or the failure to load any
liability arises under a through or transshipment Bill of Lading, or other particular cargo or cargoes in the Ship, other than liabilities, costs and
form of contract, providing for carriage partly to be performed by expenses arising under a Bill of Lading already issued;
the Ship, vi liability arising out of carriage under an ad valorem Bill of Lading
provided that unless and to the extent that the Association in its where a value of more than USD 2,500 (or the equivalent in any other
discretion shall otherwise decide, the cover under this Rule 34.1 does currency) per unit, piece or package is declared and in the case of
not include: Bills of Lading subject to the Hague or Hague-Visby Rules where a
i liabilities, costs and expenses arising out of delivery of cargo under a value of more than USD 2,500 (or the equivalent in any other currency)
negotiable Bill of Lading without production of that Bill of Lading by per unit, piece or package is also inserted in the Bill of Lading, to
the person to whom delivery is made except where cargo has been the extent, in any such case, that such liabilities, costs and expenses
carried on the Ship under the terms of a non-negotiable Bill of Lading, exceed in the aggregate USD 2,500 (or the equivalent in any other
waybill or other non-negotiable document, and has been properly currency) in respect of any unit, piece or package;
delivered as required by that document, notwithstanding that the Note: The Association as agent can arrange additional cover for the
Member may be liable under the terms of a negotiable Bill of Lading shipment of cargo with a declared value.
issued by or on behalf of a party other than the Member providing vii liabilities, costs and expenses arising out of the carriage of specie,
for carriage in part upon the Ship and in part by another mode bullion, precious or rare metals or stones, plate or other objects of a
of transport; rare or precious nature, bank notes or other forms of currency, bonds
ii liabilities, costs and expenses arising out of delivery of cargo carried or other negotiable instruments, whether the value is declared or not,
under a non-negotiable bill of lading, waybill or similar document unless the Association has been notified prior to any such carriage,
without production of such document by the person to whom delivery and any directions made by the Association have been complied
is made, where such production is required by the express terms of with;
that document or the law to which that document, or the contract of viii liability for shortage arising from failure to discharge all cargo
carriage contained in or evidenced by it, is subject, except where the on board unless the Member can show that all reasonable and
Member is required by any other law to which the Member is subject applicable discharge methods were attempted;
to deliver, or relinquish custody or control of, the cargo, without
production of such document;

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

ix liabilities, costs and expenses arising out of the issue of an ante- b in discharging or disposing, including storing, of cargo which has

dated or post-dated Bill of Lading, waybill or other document been rejected by the person entitled to delivery,
containing or evidencing the contract of carriage, that is to say a provided that there shall be no recovery under this Rule 35 of extra costs
Bill of Lading, waybill or other document recording the loading or and expenses which:
shipment or receipt for shipment on a date prior or subsequent to i the Member is able to recover from any other party; or
the date on which the cargo was in fact loaded, shipped or received ii are excepted from cover under Rule 46(a), or
as the case may be; iii form part of the daily running costs and expenses of the Ship.
x liabilities, costs and expenses arising out of the issue of a Bill of
Lading, waybill or other document containing or evidencing the Rule 36 Collision with other ships
contract of carriage, known by the Member or the master to contain 1 The Association shall cover liability to pay damages to any other person
an incorrect description of the cargo or its quantity or its condition; incurred as a result of a collision with another ship, if and to the extent
xi liabilities, costs and expenses arising out of a deviation or departure that such liability is not covered under the Hull Policies on the Ship,
from the contractually agreed voyage or adventure which deprives including:
the Member of the right to rely on defences or rights of limitation a i one fourth of the liability incurred by the member; or

which would otherwise have been available to him. ii four fourths, of such liability; or

Note: Additional cover in respect of deviation is available pursuant to iii such other fraction of such liability as may be applicable and have
Rule 2.2 – See Appendix I paragraph 4. been agreed with the Association;
2 The Association shall cover liability pursuant to compulsorily applicable b that part of the Member’s liability which exceeds the sum recoverable

rules of law for loss caused by delay in the carriage of cargo, provided under the Hull Policies solely by reason of the fact that the liability
that the Association shall in no circumstances cover liabilities, costs or exceeds the sums insured under those policies,
expenses arising out of the failure to arrive or late arrival of the Ship at provided that:
the port or place of loading. i the Member shall not be entitled to recover from the Association any
deductible borne by him under the Hull Policies; and
Rule 35 Extra handling costs ii the cover under this Rule shall exclude liability in respect of persons or
The Association shall cover extra costs and expenses, in excess of the property on board the Ship.
costs and expenses which would otherwise have been incurred: 2 Unless otherwise agreed between the Member and the Association as a
a in handling and discharging cargo where the extra costs and expenses
term of the Ship’s entry in the Association, if both ships are to blame, then
are necessarily consequent upon damage to the cargo or damage to where the liability of either or both of the ships in collision becomes limited
the Ship which would have been covered by the Hull Policies had the by law, claims under Rule 36.1 shall be settled upon the principle of single
Ship been fully insured on standard terms without deductible; liability, but in all other cases claims under this Rule shall be settled upon
the principle of cross-liabilities, as if the owner of each ship had been
compelled to pay the owner of the other ship such proportion of the latter’s
damages as may have been properly allowed in ascertaining the balance
or sum payable by or to the Member in consequence of the collision.

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Rule 37 Damage to fixed or floating objects Rule 39 Loss of or damage to property

The Association shall cover: The Association shall cover liability for loss of or damage to property not
a liability for loss of or damage to any fixed or floating object by reason
specified elsewhere in Part II of these Rules.
of contact between the Ship and such object, when not covered
under the Hull Policies; Rule 40 Liability for obstruction and wreck removal
b that part of the Member’s liability which exceeds the amount
The Association shall cover:
recoverable under the Hull Policies solely by reason of the fact that a costs and expenses relating to the raising, removal, destruction,

the liability exceeds the sums insured under those policies, lighting and marking of the Ship or of the wreck of the Ship or parts
provided that there shall be no recovery under this Rule 37 in respect of thereof or of its cargo lost as a result of a casualty, when such raising,
any deductible borne by the Member under the Hull Policies. removal, destruction, lighting and marking is compulsory by law or the
costs or expenses thereof are legally recoverable from the Member;
Rule 38 Pollution b liability incurred by reason of the Ship or the wreck of the Ship or parts

1 The Association shall cover: thereof as a result of a casualty causing an obstruction,
a liabilities, costs and expenses (excluding fines) arising in consequence
provided that:
of the discharge or escape from the Ship of oil or any other substance i recovery from the Association under this Rule shall be conditional
or the threat of such discharge or escape; upon the Member not having transferred his interest in the wreck
b liabilities, costs and expenses incurred by the Member pursuant
otherwise than by abandonment; and
to any agreement approved by the Association for the purpose of ii the realised value of the wreck and other property saved shall be
this Rule. credited to the Association.
2 A Member insured in respect of a Ship which is a “relevant ship” as
defined in the Small Tanker Oil Pollution Indemnification Agreement, Rule 41 General average
including any addendum to, or variation or replacement of such The Association shall cover:
agreement (“STOPIA”) shall, unless the Association otherwise agrees a the proportion of general average, special charges or salvage which a
in writing, be a party to STOPIA for the period of entry of the Ship in Member may be entitled to claim from cargo or from any other party
the Association. Unless the Association has agreed in writing or unless to the marine adventure and which is not legally recoverable solely
the Association in its discretion otherwise determine, there shall be by reason of a breach of the contract of carriage. Where contributing
no cover under this Rule 38 in respect of such a Ship so long as the cargo or any other contributing asset belongs to the Member, the
Member is not a party to STOPIA. Member shall be entitled to recover from the Association as if that
3 A Member insured in respect of a Ship which is eligible for entry in the contributing asset had belonged to a third party;
Tanker Oil Pollution Indemnification Agreement, including any addendum b the Ship’s proportion of general average, special charges or salvage

to, or variation or replacement of such agreement (“TOPIA”) shall, unless not recoverable under the Hull Policies solely by reason of the value
the Association otherwise agrees in writing, be a party to TOPIA for the of the Ship being assessed for contribution to general average
period of entry of that Ship in the Association. Unless the Association or salvage at a value in excess of the sums insured under the Hull
has agreed in writing or unless the Association in its discretion otherwise Policies, provided that cover shall only be available under this Rule
determines, there shall be no cover under this Rule 38 in respect of such 41(b) in any particular case if the Association shall in its absolute
a Ship so long as the Member is not a party to TOPIA. discretion so determine.

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

Rule 42 Salvage b the Ship is entered as a tug or otherwise on the basis that it will

The Association shall cover liability for special compensation awarded to engage in towing in the ordinary course of business, and the tow
a salvor is undertaken on contractual terms approved by the Association
a pursuant to Article 14 of the International Convention on Salvage
(whether or not the Member is a party to the contract); or
1989; or Notes: 1 The following standard terms of contracts are approved by
b pursuant to Article 14 of the International Convention on Salvage
the Association, provided they are not materially amended:
1989, as incorporated into Lloyd’s Open Form of Salvage Agreement (a) UK, Netherlands or Scandinavian standard towage conditions;
(1980, 1990, 1995, 2000 or 2011), or into any other salvage contract (b) “Towcon” or “Towhire”;
approved by the Association; or (c) Lloyd’s Standard form of Salvage Agreements.
c pursuant to the Special Compensation P&I Clubs Clause (SCOPIC)
2 The Association will otherwise expect the contract to incorporate a
as incorporated into Lloyd’s Open Form of Salvage Agreement term under which each Party is responsible for any loss or damage to
or any other “No Cure – No Pay” salvage contract approved by its own property or equipment and for loss of life or personal injury to
the Association. its own personnel, without any recourse against the other.
c cover has been agreed with the Association prior to the

Rule 43 Towage commencement of the towage.
1 The Association shall cover liabilities, costs and expenses arising out of
the towage of the Ship, or out of the towage of a vessel by the Ship, Rule 44 Legal costs
provided that such liabilities, costs and expenses are: The Association shall cover legal costs and expenses relating to any
a within the cover available under any other Rule; and
liability, loss, cost or expense which, in the opinion of the Association, is
b not excluded by Rules 43.2 or 43.3.
(or, apart from any applicable deductible, would be) likely to result in a
2 The Association shall not cover liabilities, losses, costs or expenses claim on the Association, but only to the extent that such legal costs and
incurred under or pursuant to the terms of a contract for the towage of expenses have been incurred with the agreement of the Association.
the Ship other than:
a a contract entered into for the purpose of entering or leaving port, or
Rule 45 Enquiry expenses
manoeuvring within the port, during the ordinary course of trading; or The Association shall cover costs and expenses incurred by a Member in
b a contract entered into in the ordinary course of trading for the
defending himself or in protecting his interests before a formal enquiry
towage of such ships as are habitually towed from place to place; or into the loss of or casualty involving the Ship, in cases in which, in the
c a contract which has been approved by the Association.
opinion of the Association, a claim upon the Association is likely to arise,
3 The Association shall not cover liability for loss of or damage to or wreck but only to the extent that such costs and expenses have been incurred
removal of a vessel or other floating structure towed by the Ship or the with the agreement of the Association.
cargo or other property on such tow (together with costs and expenses
associated therewith), save insofar as:
a the towage or attempt thereat is made for the purpose of saving or

attempting to save life or property at sea; or

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Rule 46 Measures to avert or minimise loss 2 The Association may, in its sole discretion, cover in whole or in part
The Association shall cover: a fine or penalty other than those listed in Rule 47.1 above imposed
a extraordinary costs and expenses reasonably incurred on or after
upon the Member (or imposed upon a third party whom the Member
the occurrence of a casualty or event for the purpose of avoiding or is legally obliged to reimburse), provided the Member has satisfied the
minimising any liability on the Association, other than: Association that he took such steps as appear to the Association to be
i costs and expenses claimable in general average; reasonable to avoid the event giving rise to the fine or penalty.
ii costs and expenses relating to the Ship being overloaded or the 3 The Association shall be under no obligation to give reasons for its
cargo being incorrectly stowed; decision pursuant to Rule 47.2 above.
iii costs and expenses resulting from measures that have been or could
have been accomplished by the Crew or by reasonable use of the Rule 48 Disinfection and quarantine expenses
Ship or its equipment; The Association shall cover costs and expenses, other than the Ship’s
iv costs and expenses resulting from making the Ship seaworthy for running costs and expenses, incurred by the Member in connection
receiving cargo; with quarantine orders or disinfection of the Ship or Crew on account of
b losses, costs and expenses incurred at the direction of the Association.
infectious diseases on board, except where the Ship has been ordered to
a port where the Member knew or should have anticipated that she would
Rule 47 Fines be quarantined.
1 The Association shall cover fines or other penalties imposed upon
a Member (or, imposed upon a third party whom the Member is Rule 49 Confiscation of the Ship
legally obliged to reimburse or whom the Member reimburses with the The Association may, in its discretion, authorise payment, in whole or in
Agreement of the Association) in respect of the Ship by any court, tribunal part, of a Member’s claim for loss of the Ship following confiscation of the
or other authority of competent jurisdiction for or in respect of any of Ship by any legally empowered court, tribunal or authority by reason of
the following: the infringement of any customs law or customs regulations, or any fines
a short- or over-delivery of cargo, or failure to comply with regulations
involving such confiscation, provided that:
concerning the declaration of goods, or documentation of cargo, a the amount recoverable from the Association shall under no

provided that the Member is insured by the Association for cargo circumstances exceed the market value of the Ship without
liability under Rule 34; commitment at the date of the confiscation;
b breach of any immigration law or regulations;
b the Member shall have satisfied the Association that he took such

c the accidental escape or discharge of oil or any other substance or
steps as appear to the Association to be reasonable to prevent
threat thereof, provided that the Member is insured for pollution the infringement of the customs law or regulation giving rise to
liability by the Association under Rule 38, and subject to the the confiscation;
applicable limit of liability under the P&I entry in respect of oil c no such claim shall be considered by the Association until such time as

pollution risk; the Member has been irrevocably deprived of his interest in the Ship;
d smuggling or any infringement of any custom law or regulation other
d the Association shall be under no obligation to give reasons for

than in relation to cargo carried on the Ship. its decision.

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

Rule 50 Damage to Member’s own property Chapter 2 Limitations etc. on P&I cover
Notwithstanding the terms of Rule 2.4 (b):
a if the Ship causes damage to property, other than cargo, belonging

Note: Limitations etc. which affect both P&I and Defence cover are set
wholly or in part to the Member, the Member shall be entitled to out in Part V.
recover from the Association under Rules 36 (collision with other
ships), 37 (damage to fixed or floating object), 39 (loss of or damage Rule 51 General limitation of liability
to property) or 40 (b) (liabilities for obstruction) as if the property Where the Member or a Co-assured is entitled to limit his liability
belonged to a third party; and pursuant to any rule of law, the maximum recovery under a P&I entry is
b in the event that any cargo lost or damaged on board the Ship
the amount to which the Member or the Co-assured may limit his liability.
shall be the property of the Member, the Member shall be entitled
to recover from the Association under Rule 34 (cargo liability) the Rule 51B Limitation and payment of Overspill Claims
same amount as would have been recoverable from him if the cargo 1 Without prejudice to any other applicable limit, the Association’s liability
had belonged to a third party and that third party had concluded under a P&I entry for an Overspill Claim shall be limited pursuant to the
a contract of carriage with the Member on terms incorporating the terms and conditions as are set out in Appendix VI.
Hague-Visby Rules. 2 The Association’s obligation to pay a compensation in respect of an
Overspill Claim shall be subject to such terms and conditions as are set
out in Appendix VI.

Rule 52 Limitations for charterers and Consortium Vessels

The Association’s liability under a P&I entry for any and all claims arising
under Charterer’s Entries or in respect of insurance of charterers under
Owner’s Entries or in respect of the Member’s liability for a Consortium
Claim arising out of the carriage of cargo on a Consortium Vessel shall be
limited to such sum or sums and subject to such terms and conditions as
are set out in Appendix II.

Rule 53 Limitations – oil pollution, passengers and seamen

1 The Association’s liability under an Owner’s Entry for any and all claims
in respect of oil pollution (including claims resulting from attempts to
reduce or prevent oil pollution) shall be limited to such sum or sums and
be subject to such terms and conditions as are set out in Appendix III.
2 The Association’s liability under an Owner’s Entry for any and all claims
which arise in respect of passengers and seamen shall be limited to such
sum or sums and be subject to such terms and conditions as are set out
in Appendix IV.

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

Rule 54 Amounts saved by the Member Rule 57 Liability occurring during through transports
Where the Member, as a result of an event for which he is covered by The Association shall not cover under a P&I entry:
the Association, has obtained extra revenue, saved costs or expenses or a liabilities, losses, costs or expenses incurred by the Member in respect

avoided liability or loss which would otherwise have been incurred and of death, personal injury, loss or damage to property, delay or other
which would not have been covered by the Association, the Association consequential loss sustained by any passenger by reason of carriage
may deduct from the compensation payable under a P&I entry an of that passenger by air or during any through carriage whilst the
amount corresponding to the benefit obtained. passenger is in the care of another carrier or during carriage to or
from the Ship, except liability for illness, injury or death of, or loss of or
Rule 55 Terms of contract damage to the effect of, passengers during:
The Association shall not cover under a P&I entry liabilities, losses, costs i carriage to and from the Ship in its own boats, or in port by means of
or expenses: other boats, or
a which would not have arisen but for the terms of a contract or
ii repatriation of injured or sick passengers or of passengers following
indemnity entered into by the Member, or by some other person a casualty to the Ship, or
acting on his behalf, unless the terms have previously been approved iii shore excursions from the Ship (subject to the provisions of Rule 57(b)
by the Association, or cover for such liabilities, losses, costs or below);
expenses has been agreed between the Member and the Association, b contractual liability in respect of passengers whilst on an excursion

or the Association decides, in its discretion, that the Member should from the Ship in circumstances where either:
be reimbursed; i a separate contract has been entered into by the passengers for the
b which result from, or would not have arisen but for the Member, or
excursion whether or not with the Member, or
some other person acting on his behalf having used terms of contract ii the Member has waived any or all of his rights of recourse against any
which the Association has prohibited, or omitted to use terms of subcontractor or other third party in respect of the excursion;
contract which are specified in Appendix VII or which the Association c liabilities, costs and expenses in respect of the carriage of cargo

has otherwise prescribed. arising out of contracts of carriage providing for carriage partly to be
performed by the Ship and partly by means of transport other than
Rule 56 Non-marine personnel the Ship, unless the transport is performed under a form of contract
The Association shall not cover under a P&I entry liabilities, losses, costs approved by the Association.
or expenses incurred by the Member in respect of any of the following:
a personnel (other than marine crew) on board the Ship (being an
Rule 58 War risks
accommodation vessel) employed otherwise than by the Member 1 The Association shall not cover under a P&I entry liabilities, losses, costs
where there has not been a contractual allocation of risks as between or expenses (irrespective of whether a contributory cause of the same
the Member and the employer of the personnel which has been being incurred was any neglect on the part of the Member or his servants
approved by the Association; or agents) when the loss or damage, injury, illness or death or other
b hotel and restaurant guests and other visitors and catering crew of the
accident in respect of which such liabilities arise or such losses, costs or
Ship when the Ship is moored (otherwise than on a temporary basis) expenses are incurred was caused by:
and is open to the public as a hotel restaurant, bar or other place a war, civil war, revolution, rebellion, insurrection or civil strife arising

of entertainment. therefrom, or any hostile act by or against a belligerent power, or any

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

act of terrorism (provided that, in the event of any dispute as to whether provided by the Association. Where any such guarantee, undertaking
or not, for the purpose of this paragraph (a), an act constitutes an act of or certificate is provided by the Association on behalf of the Member
terrorism, the Association shall in its absolute discretion determine that as guarantor or otherwise, the Member agrees that any payment by
dispute and the Association’s decision shall be final); the Association thereunder in discharge of the said liabilities, costs and
b capture, seizure, arrest, restraint or detainment, (barratry and piracy
expenses shall, to the extent of any amount recovered under any other
excepted), and the consequences thereof or any attempt thereat; policy of insurance or extension to the cover provided by the Association,
c mines, torpedoes, bombs, rockets, shells, explosives, or other similar
be by way of loan and that there shall be assigned to the Association
weapons of war (save for liabilities, costs or expenses which arise to the extent and on the terms that it determines in its discretion to be
solely by reason of the transport of any such weapons, whether on practicable all the rights of the Member under any other insurance and
board the entered Ship or not), provided always that this exclusion against any third party.
shall not apply to the use of such weapons, whether as a result of
government order or with the agreement of the Association, where Rule 59 Specialist operations
the reason for such use is the mitigation of liability, cost or expenses The Association shall not cover under a P&I entry liabilities, losses, costs
which would otherwise fall within the cover given by the Association. and expenses incurred by the Member during the course of performing
2 The exclusion in Rule 58.1 above shall not apply to liabilities, costs specialist operations including but not limited to dredging, blasting,
and expenses of a Member insofar only as they are discharged by the pile-driving, well stimulation, cable or pipelaying, construction,
Association on behalf of the Member pursuant to a demand made under installation or maintenance work, core sampling, depositing of spoil,
i a guarantee or other undertaking given by the Association to the Federal professional oil spill response or professional oil spill response training
Maritime Commission under Section 2 of US Public Law 89‑777, or and tank cleaning (otherwise than on the Ship), (but excluding fire-
ii a certificate issued by the Association in compliance with Article VII fighting), to the extent that such liabilities, losses, costs and expenses
of the International Conventions on Civil Liability for Oil Pollution arise as a consequence of:
Damage 1969 or 1992 or any amendments thereof, or a claims brought by any party for whose benefit the work has been

iii an undertaking given by the Association to the International Oil performed, or by any third party (whether connected with any party
Pollution Compensation Fund 1992 in connection with the Small for whose benefit the work has been performed or not), in respect of
Tanker Oil Pollution Indemnification Agreement as amended the specialist nature of the operations; or
(STOPIA), or, except where such liabilities, costs and expenses arise b the failure to perform such specialist operations by the Member or

from or are caused by an act of terrorism, the Tanker Oil Pollution the fitness for purpose and quality of the Member’s work, products
Indemnification Agreement as amended (TOPIA), or or services, including any defect in the Member’s work, products or
iv a certificate issued by the Association in compliance with Article 7 of services; or
the International Convention on Civil Liability for Bunker Oil Pollution c any loss of or damage to the contract work,

Damage, 2001 provided that this exclusion shall not apply to liabilities, losses, costs and
v a certificate issued by an Association in compliance with Article 12 of expenses incurred by the Member in respect of:
the Nairobi International Convention on the Removal of Wrecks, 2007 i loss of life, injury or illness of crew and other personnel on board
to the extent such liabilities, costs and expenses are not recovered by the the Ship;
Member under any other policy of insurance or any extension to the cover ii the wreck removal of the Ship; or

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Rules for ships Part II. P&I cover Rules for ships Part II. P&I cover

iii oil pollution from the Ship Rule 61 Submarines, diving bells and divers
but only to the extent that such liabilities, costs and expenses are within The Association shall not cover under a P&I entry liabilities, losses, costs
the cover available under any other Rule or the terms of entry agreed. or expenses arising out of
a the operation by the Member of submarines, mini-submarines or

Rule 60 Drilling, production and accommodation vessels, barges and heavy diving bells; or
lift vessels b the activities of professional or commercial divers where the Member

1 For drilling vessels, barges and any other vessels or barges employed is responsible for such activities other than
to carry out drilling or production operations in connection with oil or i activities arising out of salvage operations being conducted by the
gas exploration or production, including accommodation units moored Ship where the divers form part of the crew of that Ship (or of diving
or positioned on site as an integral part of any such operations, the bells or other similar equipment or craft operating from the Ship) and
Association shall not cover under a P&I entry any liabilities, losses, costs where the Member is responsible for the activities of such divers; and
or expenses arising out of or during drilling or production operations, ii incidental diving operations carried out in relation to the inspection,
provided that for the purpose of this Rule 60.1 repair or maintenance of the Ship or in relation to damage caused by
a the Ship shall be deemed to be carrying out production operations if,
the Ship; and
inter alia, it is a storage tanker or other vessel engaged in the storage iii recreational diving activities.
of oil, and either:
i the oil is transferred directly from a producing well to the storage Rule 62 Waste incineration, disposal operations and landfills
vessel; or 1 The Association shall not cover under a P&I entry liabilities, losses, costs
ii the storage vessel has oil and gas separation equipment on board or expenses arising out of waste incineration or waste disposal operations
and gas is being separated from oil whilst on board the storage vessel carried out by the Ship (other than any such operations carried out as an
other than by natural venting; and incidental part of other commercial activities).
b in respect of any Ship employed to carry out production operations
2 Unless and to the extent that the Association in its discretion shall
in connection with oil or gas production, the exclusion in this Rule otherwise decide, the cover under a P&I entry does not include any
60.1 shall apply from the time that a connection, whether directly liability, loss, damage, cost or expense, including, without limitation,
or indirectly, has been established between the Ship and the well liability for the cost of any remedial works or clean up operations, arising
pursuant to a contract under which the ship is employed, until such as a result of the presence in, or the escape or discharge or threat of
time that the ship is finally disconnected from the well in accordance escape or discharge from, any land based dump, site storage or disposal
with that contract. facility of any substance previously carried on the Ship whether as cargo,
2 For semi-submersible heavy lift vessels and any other vessels designed fuel, stores or waste and whether at any time mixed in whole or in part
exclusively for the carriage of heavy lift cargo, the Association shall not with any other substance whatsoever.
cover under a P&I entry liability for loss of or damage to or wreck removal
of cargo, save insofar as the carriage is undertaken on contractual terms
approved by the Association.

Note: The HEAVYCON 2007 charter is approved provided it is not
materially amended.

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Rule 63 Excluded losses h claims by or against the Member relating to demurrage on, detention

1 The Association shall not cover under a P&I entry, except where and to of or delay to the Ship, unless such demurrage, detention or delay is
the extent that they form a part of a claim for expenses under Rule 46 covered under Rule 34;
(measures to avert or minimise loss): i liabilities, losses, costs or expenses which would have been

a loss of or damage to the Ship or any part thereof except to the extent
recoverable in general average if the York Antwerp Rules 1994 or the
that it forms part of a claim recoverable under Rule 49 (Confiscation of York Antwerp Rules 2016 had been incorporated into the charterparty
the Ship); or the contract of carriage;
b loss of or damage to any equipment on board the Ship or to any
j liabilities, losses, costs and expenses arising from the use of any

containers, lashings, stores or fuel thereon, to the extent that the electronic trading system, other than an electronic trading system
same are owned or leased by the Member or by any company approved in writing by the Association, to the extent that such
associated with or under the same management as the Member; liabilities, losses, costs and expenses would not (save insofar as the
c the cost of repairs to the Ship or any charges or expenses in
Association in its sole discretion otherwise determines) have arisen
connection therewith except to the extent that they form part of under a paper trading system. For the purposes of this sub–paragraph
a claim recoverable under Rule 41 (General average); (j) an “electronic trading system” is any system which replaces or is
d claims by or against the Member relating to loss of freight or hire on
intended to replace paper documents used for the sale of goods and/
the Ship or any proportion thereof unless freight or hire forms part of or their carriage by sea or partly by sea and other means of transport
a claim for liabilities in respect of cargo; and which:
e costs of salvage or services in the nature of salvage, rendered to the i are documents of title, or
Ship and any expenses in connection therewith except to the extent ii entitle the holder to delivery or possession of the goods referred to in
that they form part of a claim recoverable under Rule 33 (Life salvage), such documents, or
Rule 41 (General average) or Rule 42 (Salvage); iii evidence a contract of carriage under which the rights and obligations
f liabilities, losses, costs or expenses arising out of salvage operations
of either of the contracting parties may be transferred to a third party.
(including for the purpose of this sub-paragraph f, wreck removal)
conducted by the Ship or provided by the Member, other than: For the purpose of this sub-paragraph (j) a “document” shall mean
i liabilities, costs and expenses arising out of salvage operations anything in which information of any description is recorded including,
conducted by the Ship for the purpose of saving or attempting to but not limited to, computer or other electronically generated
save life at sea; and information.
ii liabilities, costs and expenses incurred by a professional salvor which
are covered by a special agreement between the Member and the 2 The Association shall not cover general monetary loss, or loss of time,
Association, and which arise out of the operation of, and in respect of loss through price or currency fluctuations, loss of market or similar loss
the Member’s interest in the Ship; resulting from delay, except where the Member is legally liable to a third
g liabilities, losses, costs or expenses arising out of cancellation of a
party for such loss and such liability is covered by the Association under
charter or other engagement of the Ship; these Rules.

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Rules for ships Part III. Cover for mobile offshore units Rules for ships Part IV. Defence cover

PART III COVER FOR MOBILE OFFSHORE UNITS PART IV DEFENCE COVER

Rule 64 Terms of cover Chapter 1 Risks covered

Cover for mobile offshore units may be made available by the
Association on the terms of separate Rules, and the provisions of the Rule 65 Cases pertaining to the operation of the Ship
other parts of these Rules shall not apply thereto. The Association shall cover legal and other costs necessarily incurred in
establishing or resisting claims concerning the following:
a contracts of affreightment, charterparties, bills of lading or other

contracts of carriage;
b loading, lightering, stowing, trimming or discharge of cargo;

c passengers and passenger monies;

d loss of or damage to the Ship or general average;

e delay of the Ship;

f property damage, personal injury or loss of life;

g repairs or deliveries to the Ship;

h salvage or towage unless the Ship is respectively a salvage vessel

or tug;
i agents or brokers;

j insurance contracts pertaining to the Ship;

k customs, harbour or other public or quasi-public authorities, but not

legal and other costs incurred in connection with or relating to:
i taxes or dues payable in countries where the Ship is registered, or
where the Member is resident, or where the Member has a permanent
place of business; or
ii actual or alleged infringement(s) of legislation or regulations relating
to safety, navigation or prevention of pollution.

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Rule 66 Cases pertaining to acquisition or disposal of the Ship Chapter 2 Limitations etc. on Defence cover
The Association shall cover legal and other costs necessarily incurred in
establishing or resisting claims in connection with:
Note: Limitations etc which affect both Defence and P&I cover are set
a building, purchase or mortgaging of the Ship, including claims in
out in Part V.
connection with the future employment of the Ship being built or
purchased, provided always that the Ship has been entered in the Rule 67 Excluded costs
Association for Defence cover at the latest on signing the relevant 1 The Association may decline to cover under a Defence entry all or part of
contract governing the building or purchase; the Member’s costs, where it is of the opinion that:
b sale of the entered Ship;
a there is no reasonable relation between the amount in dispute and

c conversion of or alterations to the Ship, including claims in connection the costs which are likely to be incurred;
with the future employment of the Ship being subject to conversion b there is no reasonable relation between the prospects of succeeding

or alteration, provided always that a separate agreement, pursuant to in establishing a claim or of having the claim enforced or the liability
which the Association agrees to provide Defence cover for such legal averted and the costs which are likely to be incurred;
and other costs has been entered into with the Association at the c the Member has failed to carry out his obligations under these Rules;

latest on the signing of the relevant contract for the conversion of or d the claim is unreasonable or tainted with illegality or other improper

the alterations to the Ship. conduct;
e for any other reason Defence cover should not apply.

2 The Association shall be under no liability to reimburse a Member for
costs incurred:
a before the Association has been notified of a claim under the Defence

cover;
b by the employment of lawyers, experts and other advisers appointed
by the Member without the Association’s approval.

Rule 68 Disputes with the Association and other Members – unpaid sums
1 The Association will not cover under a Defence entry costs of cases
against the Association itself, its subsidiaries, agents, representatives
or servants.
2 No cover shall be available under Defence entries to either party where
a dispute arises between Joint Members, Co-assureds, affiliates or
associates of the Member or Co-assureds or any combination thereof.
3 No Member shall be entitled to cover under a Defence entry so long
as Advance Calls, Deferred Calls or Supplementary Calls or other sums
of whatsoever nature owed to the Association, whether in respect of
Defence or P&I cover or otherwise, remain unpaid.

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Rules for ships Part IV. Defence cover Rules for ships Part IV. Defence cover

Rule 69 The Association’s right to control and direct the handling of a case 3 The Association shall determine in its absolute discretion whether legal
– withdrawal of cover and other costs for the purpose of this Rule 70 shall be deemed to fall
1 The Association shall have the right, if it so decides, to control or direct within the scope of Rule 65 or Rule 66 and whether the legal and other
the conduct or handling of any case or legal and other proceedings costs have arisen out of one or several events, irrespective of whether
relating to any matter in respect whereof legal and other costs are one or several Ships were involved.
covered under a Defence entry and to require the Member to settle, 4 The Association shall be under no obligation to give reasons for any of its
compromise or otherwise dispose of the case or legal and other decision under this Rule.
proceedings in such manner and upon such terms as the Associations
sees fit.
2 The Association may, in its sole discretion, at any stage of the handling
of the case, decline to cover under a Defence entry the legal and other
costs involved where:
a the Member, without the Association’s authority, or contrary to its

advice, proceeds with the case in a manner which in the view of the
Association is undesirable;
b the Member refuses to settle the case on conditions which the

Association recommends or which are recommended by lawyers
acting on behalf of the Association or the Member;
c any of the circumstances set out in Rule 67 subsequently materialise

or are brought to the attention of the Association.

Rule 70 Limitation
1 The Association shall not be obliged to compensate under a Defence
entry legal and other costs falling within the scope of Rule 65 and legal
and other costs incurred in establishing or resisting claims in connection
with purchase and sale of the Ship, including claims in connection with
the future employment of the Ship being purchased, falling within the
scope of Rule 66 (a) and (b) in excess of USD 10 million per event.
2 The Association shall not be obliged to compensate under a Defence
entry legal and other costs falling within the scope of Rule 66 (sale and
purchase disputes exempted) in excess of USD 1 million per event.

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Rules for ships Part V. General limitations etc. on P&I and defence cover Rules for ships Part V. General limitations etc. on P&I and defence cover

PART V GENERAL LIMITATIONS ETC. ON P&I AND DEFENCE COVER Rule 72 Conduct of Member
The Association shall not cover any liabilities, losses, costs or expenses

Note: Limitations which affect only P&I cover or only Defence cover are arising or incurred in circumstances where there has been wilful
set out in Parts II and IV respectively. misconduct on the part of the Member, such misconduct being an
act intentionally done, or a deliberate omission by the Member, with
Rule 71 Other insurance knowledge that the performance or omission will probably result in injury,
1 The Association shall not cover: or an act done or omitted in such a way as to allow an inference of a
a liabilities, losses, costs or expenses which are covered by the Hull
reckless disregard of the probable consequences.
Policies or would have been covered by the Hull Policies had the
Ship been fully insured on standard terms, without deductible, for Rule 73 Nuclear perils
an insured value which is at all times not less than the market value 1 The Association shall not cover any liabilities, losses, costs or expenses
from time to time of the Ship without commitment, provided that directly or indirectly caused by or contributed to by or arising from:
costs relating to claims for damage sustained by the Ship shall be a ionising radiations from, or the radioactive, toxic, explosive or other

covered under a Defence Entry to the extent that such damage is not hazardous or contaminating properties of:
recoverable under the Hull Policies by reason only of a deductible, i any nuclear fuel or any nuclear waste or the combustion of nuclear
and for the purposes of this proviso the deductible shall be deemed fuel, or
not to exceed one per cent of the Ship’s insured value; ii any nuclear installation, reactor or other nuclear assembly or nuclear
b liabilities, losses, costs or expenses recoverable under any other
component thereof; or
insurance or which would have been so recoverable: b any weapon or device employing atomic or nuclear fission and/or

i apart from any term in such other insurance excluding or limiting fusion or other like reaction or radioactive force or matter,
liability on the ground of double insurance; and c the radioactive, toxic, explosive or other hazardous or contaminating

ii if the Ship had not been entered in the Association with cover against properties of any radioactive matter
the risks set out in these Rules; other than liabilities, costs and expenses arising out of carriage of
c liabilities, losses, costs or expenses in relation to a person performing
“excepted matter” (as defined in the Nuclear Installations Act 1965 of
work in the service of the Ship covered by social insurance or by the United Kingdom or any regulations made thereunder) as cargo on
public or private insurance required by the legislation or collective the Ship.
wages agreement governing the contract of employment of such 2 The exclusion in Rule 73.1 above shall not apply to liabilities, costs
person, or which would have been so covered if such insurance had and expenses of a Member insofar only as they are discharged by the
been effected. Association on behalf of the Member pursuant to a demand made under:
2 The Association shall not cover under a Defence entry costs which are or i a guarantee or other undertaking given by the Association to the
can be covered under a P&I entry. Federal Maritime Commission under Section 2 of US Public Law 89-777,
or
ii a certificate issued by the Association in compliance with Article VII
of the International Conventions on Civil Liability for Oil Pollution
Damage 1969 or 1992 or any amendments thereof, or

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Rules for ships Part V. General limitations etc. on P&I and defence cover Rules for ships Part V. General limitations etc. on P&I and defence cover

iii an undertaking given by the Association to the International Oil Rule 75 Part tonnage
Pollution Compensation Fund 1992 in connection with the Small Where a Ship is entered with the Association for less than its full tonnage,
Tanker Oil Pollution Indemnification Agreement (STOPIA), or the Association shall only be liable to the Member for such proportion
iv a certificate issued by the Association in compliance with Article 7 of of any liability, loss, cost or expense as the entered tonnage bears to the
the International Convention on Civil Liability for Bunker Oil Pollution full tonnage.
Damage, 2001, or
v an undertaking given by the Association to the International Oil Rule 76 Deductibles
Pollution Compensation Fund 1992 in connection with the Small Unless otherwise agreed, cover shall be subject to the Association’s
Tanker Oil Pollution Indemnification Agreement as amended standard deductibles set out in Appendix V.
(STOPIA), or, except where such liabilities , costs and expenses arise
from or are caused by an act of terrorism, the Tanker Oil Pollution Rule 77 Administrative costs, insolvency and sanctions etc.
Indemnification Agreement as amended (TOPIA), or 1 The Association shall not cover:
vi a certificate issued by the Association in compliance with Article 12 of a the Member’s internal administrative costs or expenses;

the Nairobi International Convention on the Removal Wrecks, 2007 b liabilities, losses, costs and expenses arising out of the insolvency of

to the extent such liabilities, costs and expenses are not recovered by the Member or any other person or out of overdue or irrecoverable
the Member under any other policy of insurance or any extension to debts or out of any of the circumstances described in Rules 25.1(a)
the cover provided by the Association. Where any such guarantee, and (b).
undertaking or certificate is provided by the Association on behalf of 2 The Association shall not indemnify a Member against any liabilities,
the Member as guarantor or otherwise, the Member agrees that any costs or expenses where the provision of cover, the payment of any
payment by the Association thereunder in discharge of the said liabilities, claim or the provision of any benefit in respect of those liabilities, costs
costs and expenses shall, to the extent of any amount recovered under or expenses may expose the Association to any sanction, prohibition,
any other policy of insurance or extension to the cover provided by restriction or adverse action by any competent authority or government.
the Association, be by way of loan and that there shall be assigned to 3 The Member shall in no circumstances be entitled to recover from the
the Association to the extent and on the terms that it determines in its Association that part of any liabilities, costs or expenses which is not
discretion to be practicable all the rights of the Member under any other recovered by the Association from any party to the Pooling Agreement
insurance and against any third party. and/or from any reinsurer because of a shortfall in recovery from such
party or reinsurer by reason of any sanction, prohibition or adverse action
Rule 74 Unlawful trades etc. by a competent authority or government or the risk thereof if payment
The Association shall not cover liabilities, losses, costs or expenses were to be made by such party or reinsurer. For the purposes of this
arising out of or consequent upon the Ship carrying contraband, paragraph, “shortfall” includes, but is not limited to, any failure or delay
blockade running or being employed in or on an unlawful, unsafe or in recovery by the Association by reason of the said party or reinsurer
unduly hazardous trade or voyage. making payment into a designated account in compliance with the
requirements of any competent authority or government.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

PART VI MISCELLANEOUS PROVISIONS 5 The cover afforded to a Co-assured who has entered into a contract with
the Member for the provision of services to or by the Ship, and any sub-
Chapter 1 Joint Members, Co-assureds and Affiliates contractor of the Co-assured shall extend only to liabilities, losses, costs
and expenses which are to be born by the Member under the terms of
Rule 78 Cover for Co-assureds and Affiliates the contract and which would, if borne by the Member, be recoverable
1 The Association may agree, subject to the provisions of this Rule 78 and by the Member from the Association, provided that
to such other terms as may be required, to extend the cover afforded by a the contract has been approved by the Association; and

the Association to the Member to: b the contract provides that each party shall be similarly responsible for

a any person who is affiliated to or associated with the Member (not
any loss or damage to its own (or its sub-contractors’) property or loss
being a Co-assured or other Affiliate), and who shall not be specifically of life or personal injury to its own (or its sub-contractors) personnel.
named in the terms of entry; and 6 The cover afforded to all other categories of Co-assured, other than
b any other named co-assured.
those referred to in Rules 78.3, 78.4 and 78.5, shall only extend insofar as
2 Affiliates and Co-assured shall not be entitled to Membership of the such Co-assured may be found liable to pay in the first instance for loss
Association. or damage which is properly the responsibility of the Member (or, in the
3 The cover afforded to a Co-assured in categories (a), (b) and (c) below case of Defence cover, insofar as such Co-assured may be required to
shall extend only to liabilities, losses, costs and expenses (or, in respect resist a claim arising from such a liability), and nothing herein contained
of Defence cover, to costs incurred in connection with claims) arising out shall be construed as extending cover in respect of any amount which
of operations and/or activities customarily carried on by or at the risk would not have been recoverable from the Association by the Member
and responsibility of shipowners (or, in the case of a Charterer’s Entry, had the claim in respect of such loss or damage been made or enforced
charterers): against him.
a any person interested in the operation, management or manning of
7 The cover afforded to an Affiliate shall extend only, in the case of P&I
the Ship; cover, to claims made or enforced through the Affiliate in respect of any
b the holding company or the beneficial owner of the Member or of any
liabilities for which the Member has cover and, in the case of Defence
Co-assured falling within category (a) above; cover, to costs incurred in resisting claims which, if brought against the
c any mortgagee of the Ship.
Member, would be within his cover, and nothing herein contained shall
4 The cover afforded to a Co-assured who is a charterer of the Ship and be construed as entitling an Affiliate to recover any amount which would
who is affiliated to or associated with the Member (other than a Co- not have been recoverable from the Association by the Member had the
assured expressly given cover by the Association in accordance with Rule claim been made or enforced against the Member.
78.6) shall extend only to the risks, liabilities, losses, costs and expenses 8 To the extent that the Association has indemnified a Co-assured (other
in respect of which that Member has cover, and shall be limited in than a Co-assured in the categories referred to in Rules 78.3 and 78.4) or
accordance with Rule 52. an Affiliate in respect of a claim, it shall not be under any further liability
and shall not make any further payment to any person whatsoever,
including the Member, in respect of that claim or of the loss or damage
in respect of which that claim was brought.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

Rule 79 Joint Members, Co-assureds, Affiliates and Fleet Entries Chapter 2 Claims etc.
1 Joint Members and Co-assureds insured on any one entry shall be jointly
and severally liable for all sums due to the Association in respect of such Rule 80 Time of occurrence
entry. Members, Joint Members and Co-assureds insured on any entry 1 The event giving rise to a claim incurred by one Member in respect
in respect of one or more Ship(s) forming part of a Fleet Entry shall be of damage to or loss of cargo (including claims in respect of cargo’s
jointly and severally liable in respect of all sums due to the Association contribution to general average payable by the Member solely by reason
in respect of any or all Ships forming part of the Fleet Entry. For the of breach of contract of carriage) shall be deemed to arise as follows:
purpose of this section a Fleet Entry shall mean the entry of more than a all loss of or damage to cargo carried on the same cargo carrying

one Ship by one or more Members on the basis that those Ships shall be voyage shall be deemed to arise out of the same event (a “deemed
treated together as a fleet. event”), and that event shall be deemed to have occurred at the
2 Any payment by the Association to one of the Joint Members, Co- earliest of
assureds or Affiliates shall fully discharge the obligations of the i the first place of discharge or port at which such loss or damage was
Association in respect of such payment. ascertained and at the time of such ascertainment; and
3 Any communication by the Association to one Joint Member or ii if such loss or damage was ascertained after discharge of the
Co-assured shall be deemed to be communication to all. cargo from the Ship, at the time and place of discharge; and
4 The conduct or omission of one Joint Member or Co-assured which iii where the Member sold the Ship (or otherwise disposed of his interest
under these Rules would constitute a breach of the contract of insurance, in the Ship) during a cargo carrying voyage, at the time when his last
shall be deemed as the conduct or omission of all the Joint Members and entry for the Ship with the Association or any other association which
Co‑assureds. participates in the Pooling Agreement terminated and at the place
where the Ship was at that time
provided that
i any reference in this Rule 80.1 to a cargo carrying voyage shall
include, in cases where cargo is carried under a contract of carriage
partly in the Ship and partly by other means of transport, the entire
through or combined transport of that cargo under that contract;
and
ii whenever the Association can demonstrate that any loss or damage
either actually arose out of a particular event and that that event
occurred at or prior to the time of the deemed event, or actually
arose out of an event which occurred after the deemed event
(irrespective of whether the particular event or the date on which it
actually occurred can be identified), the Association may require that
such claim be treated separately from those other claims deemed as
aforesaid to have arisen out of the deemed event.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

b all loss or damage to cargo carried under a contract for carriage partly
the event unless litigation or a general average adjustment is in progress,
in the Ship and partly by other means of transport, being a contract when the claim becomes time-barred one year after the issue of the final
entered into during the period of entry of the Ship, arising out of an judgment or adjustment.
event occurring after the discharge of the relevant cargo from the
Ship (or after the Member sells the Ship, or otherwise disposes of the Rule 82 Obligations with respect to claims
interest in the Ship, if earlier) shall be deemed for the purpose of Rule 1 A Member shall:
2.4.c to have occurred at the time of discharge of the relevant cargo a promptly notify the Association of any event which may give rise to a

from the Ship (or immediately prior to sale or disposal referred to claim upon the Association, and of any formal enquiry into a loss or
above, if earlier). casualty involving the Ship;
2 Where the Member incurs a liability in respect of the death, disease or b upon the occurrence of any event which may give rise to a claim

personal injury of an individual, and the specific date on which any event upon the Association, take and continue to take all such steps as may
causing such death, disease or personal injury has not been ascertained, be reasonable, including the preservation of any right of recourse
the Member shall be deemed to have incurred the liability at a uniform against a third party, for the purpose of averting or minimising any
rate over the period during which the event or events causing the death, liability, loss, cost or expense in respect whereof he may be insured by
disease or personal injury occurred or may have occurred (“the period of the Association;
exposure”), and any claim the Member may have against the Association c notify and, if possible, consult the Association prior to taking any

shall be limited to such proportion of the liability as the period for which action as described in Rule 82.1(b) above;
the Member has relevant cover bears to the period of exposure. d promptly provide the Association with all documents and information

3 For the purposes of Defence cover the event giving rise to a claim shall which may be relevant to such event and which are required to enable
be deemed to arise as follows: the Association to determine whether the event is covered according
a claims arising out of contract (subject to paragraphs (b) and (c) below),
to these Rules;
in tort or under statute: when the cause of action accrues; e allow the Association or its appointees to interview any person who

b claims for salvage or towage: when the services are commenced;
in the opinion of the Association may have knowledge relevant to
c claims arising in connection with the building of a ship: at the date of
the event;
signing the building contract. f not without the prior consent of the Association admit liability for or

settle any claim for which he may be insured by the Association.
Rule 81 Time-bar 2 If a Member commits a breach of any of these obligations:
1 The Member shall have no right to compensation unless he has given a the Association may reject any claim, or reduce the sum payable, in

notice to the Association of any event which may give rise to a claim on relation to such event; and
the Association within six months of his becoming aware of it. b the Member shall reimburse to the Association such part of any costs

2 The Member’s claim for compensation becomes time-barred three or expenses incurred by the Association in relation to such event as
years from the date on which he became aware of his claim and of the the Association shall determine.
circumstances that determine its extent. 3 The Association shall have the right if it so decides to control or direct
3 Where a time-bar has not taken effect earlier, the Member’s claim for the conduct of any claim or legal or other proceedings relating to any
compensation becomes time-barred ten years from the occurrence of liability, loss, cost or expense in respect whereof the Member is or may

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

be insured, in whole or in part, and to instruct, on behalf of the Member, 2 Where the Association has made a payment in respect of any liability, loss,
lawyers and other advisers and experts to assist and to require the cost or expense to or on behalf of a Member, the whole of any recovery
Member to settle, compromise or otherwise dispose of such claim or from a third party in respect of that liability, loss, cost or expense shall be
proceedings in such manner and upon such terms as the Association sees credited and paid to the Association up to an amount corresponding to
fit, provided that no actions or directions of the Association shall imply the sum paid by the Association together with any interest element on that
an obligation to cover the liability, loss, cost or expense. If the Member sum comprised in the recovery, provided however, that
does not settle, compromise or dispose of a claim or of proceedings a where because of a deductible in his terms of entry the Member

after being required to do so by the Association, any recovery by the has contributed towards a liability, loss, cost or expense any such
Member from the Association in respect of such claim or proceedings interest element shall be apportioned between the Member and the
shall be limited to the amount he would have recovered if he had acted Association taking into account the payments made by each and the
as required by the Association. dates on which those payments were made; and
4 A Member shall, in respect of a dispute which falls under the cover, for b the Association shall retain the whole amount of any award of costs in

his own account, obtain information, make calculations, attend meetings respect of its own handling of any case; and
and otherwise provide assistance, where such work can be performed c In respect of a Defence Entry, any recovery from a third party in

by him or by persons employed by him or regularly engaged by him to respect of legal and other costs or expenses (the “Recovery”) shall be
perform such services. applied as follows and in the following order:
i first, if and to the extent a maximum deductible is agreed, the
Rule 83 Exclusion of liability Recovery shall be credited and paid to the Association up to
1 The Association shall not be liable for errors or omissions in the handling an amount corresponding to the sum of legal and other costs
of a case which may be committed by the Association’s employees or by or expenses paid by the Association, in excess of the Member’s
lawyers, advisers or other experts engaged by the Association on behalf maximum deductible, together with any interest element on that sum
of the Member. comprised in the Recovery;
2 The Association shall not be liable for monies which are lost, having ii secondly, if and to the extent the Association only has agreed to
been collected by persons engaged by the Association on behalf of the cover a percentage of legal and other costs or expenses incurred by
Member, or entrusted to such persons. the Member, the Association shall be credited and paid a proportion
3 The Association shall not be liable to pay interest on any sums due from of the Recovery corresponding to the percentage of legal and other
it to the Member. costs and expenses the Association has agreed to cover pursuant to
these Rules and the terms of entry agreed;
Rule 84 Recoveries from third parties iii finally when the requirements in (i) and (ii) above have been satisfied
1 When the Member has a right of recourse against a third party for any the Recovery shall be applied against the Member’s minimum
liability, loss, cost or expense covered by the Association, the Association deductible.
shall be subrogated to the Member’s right of recourse upon payment 3 Subject to Rule 84.2, all monies recovered for a Member with Defence
by the Association to the Member in respect of the liability, loss, cost cover shall be paid over to the Member, except that the Association may
or expense. deduct from such monies and retain any amount due to the Association
from the Member.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

4 Where a Member settles or compromises a claim within its Defence cover Rule 87 Payment first by Member
for a lump sum which includes costs or without making provision as to 1 Unless the Association shall in its absolute discretion otherwise
costs, the Association shall determine what part of that lump sum shall be determine, it is a condition precedent to a Member’s right to recover
deemed attributable to costs. from the Association in respect of any liability, loss, cost or expense that
he shall first have discharged or paid the same.
Rule 85 Discharge 2 The Association shall not be obliged to compensate a Member for a
Payment of a claim by the Association to a manager of the Ship or to any payment made to a third party unless the Member’s liability to make that
other agent of the Member shall fully discharge the Association’s liability payment has been determined by:
to the Member. a a final judgement or order of a competent court; or

b a final arbitration award (if settlement of the dispute by arbitration was

Rule 86 Currency of payments agreed upon before the dispute arose, or was, with the consent of the
1 The Association shall make all payments for liabilities, losses, costs Association, agreed upon subsequently); or
and expenses covered by the Association in the currency in which the c a final settlement of the dispute approved by the Association.

Member’s Premium Rating is calculated (the “premium currency”). 3 Notwithstanding sections 1 and 2 above, where a Member has failed
2 Where the Member has made a payment in respect of any liability, loss, to discharge a legal liability to pay damages or compensation for
cost or expense which is covered by the Association in a currency other personal injury, illness or death of a member of the Crew, or in respect
than the premium currency, that payment shall be converted into the of repatriation under any statutory enactment giving effect to the
premium currency at the rate of exchange ruling on the day payment was Maritime Labour Convention 2006 as amended or any materially similar
made by the Member. enactment, the Association shall discharge or pay such claim on the
3 Where a deductible under Rule 76 is expressed in Appendix V in a Member’s behalf directly to such member of the Crew or dependent
currency other than the premium currency, the deductible shall be thereof, provided always that;
converted into the premium currency at the rate of exchange ruling on a the member of the Crew or dependent has no enforceable right

the day payment was made by the Member. of recovery against any other party and would otherwise be
4 Where a payment in respect of a liability, loss, cost or expense is due uncompensated; and
at a fixed time and the Member without valid reason neglects to make b the amount payable by the Association shall under no circumstances

payment when due, the Member shall not be entitled to compensation at exceed the amount which the Member would otherwise have
a higher rate of exchange than that ruling on the day on which payment been able to recover from the Association under the Rules and the
was due. Member’s terms of entry, and
5 All rates of exchange for the purposes of this Rule 86 shall be as c with regard to liability, costs and expenses falling within Rule 27.3

conclusively certified by the Association. any payment made by the Association shall be made as agent only
of the Member, and the Member shall be liable to reimburse the
Association for the full amount of such payment.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Part VI. Miscellaneous provisions

Rule 88 Payments and undertakings to third parties Chapter 3 Assignment, law, arbitration and amendments to Rules
1 The Association shall be under no obligation to provide any guarantee,
certificate, bail or other security or undertaking (“security”) for or on Rule 89 Assignment
behalf of a Member, or to pay the costs of such provision. 1 The Member shall not assign or otherwise transfer its rights under its
2 The Association may at its discretion provide security or pay the cost of contract of insurance with the Association or otherwise arising pursuant
such provision in relation to liabilities within the scope of a Member’s to these Rules, save as provided in Rule 89.2.
cover, and may recover any costs incurred thereby from the Member. 2 The Association may, in its absolute discretion, consent to an assignment
3 The Member shall indemnify the Association for any liability the or transfer by of a Member of its rights as referred to in Rule 89.1, subject
Association may incur to a third party under or in connection with any to such terms and conditions as the Association deems fit and subject
security issued by the Association for or on behalf of the Member and for to the Association’s right to deduct from any sum due or to become
any payment made by the Association to a third party for or on behalf due from the Association to any assignee or transferee of the Member’s
of the Member (irrespective of whether that liability was incurred, or that rights such amount as the Association may estimate to be sufficient
payment was made during or after the period of the Member’s insurance to discharge any existing or anticipated liability of the Member to
by the Association), save to the extent that, had that third party pursued the Association.
its claims in respect of the relevant liability against the Member rather
than against the Association, or had that payment been made by the Rule 90 Governing law
Member rather than by the Association, the Member would have been The legal relationship between the Association and the Member shall be
entitled to reimbursement pursuant to these Rules. governed by these Rules and Norwegian law, but the provisions of the
Insurance Contracts Act of 16th June 1989 shall not apply.

Rule 91 Arbitration
1 Unless otherwise agreed, disputes between the Association and a
Member or a former Member or any other person arising out of the
contract of insurance or these Rules shall be resolved by arbitration. Each
party shall nominate one arbitrator and those so nominated shall appoint
an Umpire. If the arbitrators cannot agree on an Umpire or a party fails
to nominate his arbitrator, the nomination shall be made by the Chief
Justice of the Oslo City Court. Reasons shall be given for the award.
Arbitration proceedings shall take place in Oslo.
2 Any of the issues referred to in paragraph 4.2 of Appendix VI to these
Rules on which the Association and a Member cannot agree shall be
referred to a panel (the “Panel”) constituted and acting pursuant to such
terms and conditions as are set out in Appendix VI.

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Rules for ships Part VI. Miscellaneous provisions Rules for ships Appendices

Rule 92 Amendments to the Rules APPENDICES

1 The Rules may be amended at any time with effect from the beginning
of the following Policy Year, and the Association shall, where practicable, Appendix I Additional insurances
give notice of amendments to Members before 20th January.
2 If, in the determination of the Association, a substantial alteration of 1 Introduction
risk occurs, as a result of new legislation or for any other reason, the Additional insurances set out in this Appendix shall be subject to the
Association may make such amendments to the Rules as the situation Rules for P&I and Defence cover of Ships and other floating structures
may require, giving (save in the case where the amendment involves only (“the Rules”) save to the extent to which any of such Rules are
the making available of additional cover to the Member) at least two inconsistent with the terms and conditions expressly agreed between
months’ notice of the amendment. the Member and the Association.
3 When war has broken out or, in the determination of the Association
threatens to break out, the Association may decide that amendments 2 War risks
shall come into force at shorter notice. The Association has arranged an additional war risk insurance for the
benefit of its Members.

Scope of cover

1 The special war risk P&I insurance will cover P&I risks set out in Part II,
Chapter 1, of the Rules for Ships, caused by war risks as described in
Rule 58 of the Rules for Ships, but subject always to special terms of entry
agreed between the individual Association and the individual Member
attached to or included in the Ship’s certificate of entry.
The cover is subject to a minimum deductible of USD 50,000 any one
event each Ship.
Further, the cover includes liabilities arising from acts of terrorism as
defined in the US Terrorism Risk Insurance Act 2002 as amended.
Details about additional premium for such liabilities will be sent out in a
separate circular.

Notice of cancellation, automatic termination of cover and war and

nuclear exclusion
2 The cover afforded is subject to Institute Notice of Cancellation,
Automatic Termination of Cover and War and Nuclear Exclusion Clause,
as set out below. The cover may be cancelled by the Managers giving
seven days’ notice (such cancellation becoming effective on the expiry of
seven days from midnight on the day on which notice of cancellation is
issued by the Managers).

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Rules for ships Appendices Rules for ships Appendices

Whether or not such notice of cancellation has been given, cover shall However, the International Group has decided that the Bio-Chem Risks
terminate automatically: shall be covered through a special pooling facility, covering the Member’s
i upon the outbreak of war (whether there be a declaration of war or liability in respect of:
not) between any of the following countries: i damages, compensation or expenses in consequence of personal
United Kingdom, United States of America, France, The Russian injury to or illness or death of any seamen; and
Federation, the People’s Republic of China and this insurance ii for legal costs and expenses incurred solely for the purpose of
excludes loss, damage, liability or expense arising from such outbreak avoiding or minimising any other P&I liability arising from a Bio-
of war; Chem Risk.
ii in the event of the Entered Ship being requisitioned either for title The limit of cover for the special insurance against the Bio-Chem risks
or use and this insurance excludes loss, damage, liability or expense is USD 30 million per Ship in the aggregate. The detailed terms and
arising from such requisition; conditions of the Bio-Chem cover are available in the special Bio–Chem
Cover shall not become effective if, subsequent to acceptance by the clause, as set out below.
Association and prior to the intended time of attachment of risk, there
has occurred any event which would have automatically terminated cover Limitation of cover
under the provisions of this Rule. 5 The cover for owners is limited to USD 500 million any one event each
Ship in excess of the proper value of the entered Ship or any amounts
TOPIA recoverable under any other P&I war risks cover which the Member has
3 The cover excludes loss, damage or expense arising from an act of arranged, whichever is greater. The minimum excess is the proper value
terrorism which the Member may incur or for which the Member may be of the Ship determined in accordance with Rule 71.1(a) of the Rules for
liable under TOPIA 2006. Ships or USD 100 million, whichever is the lesser.

Bio chem and computer virus 6 Where there is more than one Owner’s Entry or Charterer’s Entry in
4 The Association shall not be liable for any losses, liabilities, costs respect of an Entered Ship with the Association or any other P&I
or expenses directly or indirectly caused by or contributed to by or Association which participates in the reinsurance arrangements of the
arising from: International Group of P&I Clubs, the aggregate of all claims following
i any chemical, biological, bio-chemical or electromagnetic weapon; an event brought against the Association and/or such other Association
ii the use or operation, as a means for inflicting harm, of any shall be limited to USD 500,000,000. In these circumstances, the
computer virus; limit of liability shall be such proportion of USD 500,000,000 as the
iii Clause 4 (ii) above will not operate to exclude losses (which would claims recoverable under an Owner’s Entry or Charterer’s Entry in the
otherwise be covered under the terms of this policy) arising from Association bear to the aggregate of all the said claims recoverable
the use of any computer, computer system or computer software under all Owner’s Entries and Charterer’s Entries in respect of that Ship
programme or any other electronic system in the launch and/or with this or any other Association.
guidance system and/or firing mechanism of any weapon or missil.

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Rules for ships Appendices Rules for ships Appendices

Institute notice of cancellation, automatic termination of cover and war 3.2 loss damage liability or expense directly or indirectly caused by or
and nuclear exclusions clause – hulls arising from
This clause shall be paramount and shall override anything contained in 3.2.1 ionising radiations from or contamination by radioactivity from any
this insurance inconsistent therewith nuclear fuel or from any nuclear waste or from the combustion of
nuclear fuel
1 Cancellation 3.2.2 the radioactive, toxic, explosive or other hazardous or contaminating
Cover hereunder in respect of the risks of war, etc. may be cancelled properties of any nuclear installation, reactor or other nuclear assembly
by either the Underwriters or the Assured giving 7 days’ notice (such or nuclear component thereof
cancellation becoming effective on the expiry of 7 days from midnight 3.2.3 any weapon of war employing atomic or nuclear fission and/or fusion or
of the day on which notice of cancellation is issued by or to the other like reaction or radioactive force or matter.
Underwriters). The Underwriters agree however to reinstate cover subject
to agreement between the Underwriters and the Assured prior to the 4 Law and Practice
expiry of such notice of cancellation as to new rate of premium and/or This clause is subject to English law and practice.
conditions and/warranties.
Bio-chem and computer virus clause
2 Automatic Termination of Cover 1.1 Subject to the terms and conditions and exclusions set out herein, cover
Whether or not such notice of cancellation has been given cover is extended to include the liability of the Member:
hereunder in respect of the risks of war, etc, shall TERMINATE a to pay damages, compensation or expenses in consequence of

AUTOMATICALLY the personal injury to or illness or death of any seaman (including
2.1 upon the outbreak of war (whether there be a declaration of war or diversion expenses, repatriation and substitute expense and
not) between any of the following: United Kingdom, United States of Shipwreck unemployment indemnity),
America, France, the Russian Federation, the People’s Republic of China; b for the legal costs and expenses incurred solely for the purpose of

2.2 in respect of any Ship, in connection with which cover is granted avoiding or minimising any liability or risk insured by the Association
hereunder, in the event of such Ship being requisitioned either for title (other than under the Omnibus Rule)
or use. 1.2 where such liability would be recoverable under either
a cover provided by the Association for such liabilities, costs, losses and

3 Five Powers War and Nuclear Exclusions expenses as would be covered under the Rules for Ships but for the
This insurance excludes exclusion of war risks in Rule 58 of the Rules for Ships; or
3.1 loss damage liability or expense arising from; b any other policy of insurance providing equivalent cover.

3.1.1 the outbreak of war, whether there be a declaration of war or not, 1.3 save only for the operation of an exclusion of liabilities, costs, losses
between any of the following: United Kingdom, United States of and expenses directly or indirectly caused by or contributed to by or
America, France, the Russian Federation, the People’s Republic of China; arising from
3.1.2 requisition either for title or use a any chemical, biological, biochemical or electromagnetic weapon

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b the use or operation, as a means for inflicting harm, of any computer,

3 Other additional insurances
computer system, computer software program, malicious code, The Association may on terms and conditions expressly agreed between
computer virus or process or any other electronic system, the Member and the Association provide or assist in arranging other
c Clause 1.3 (b) shall not operate to exclude losses (which would
additional insurances for a number of liabilities or risks not covered
otherwise be covered under the terms of this policy) arising from under the Rules. Further information about other additional insurances is
the use of any computer, computer system or computer software available from the Association’s underwriting department.
programme or any other electronic system in the launch and/or
guidance system and/or firing mechanism of any weapon or missile.
1.4 other than liabilities, costs, losses and expenses arising from
a explosives or the methods of the detonation or attachment thereof

b the use of the entered Ship or its cargo as a means for inflicting harm,

unless such cargo is a chemical or bio-chemical weapon
c the use of any computer, computer system or computer software

program or any other electronic system in the launch and/or guidance
system and/or firing mechanism of any weapon or missile.

2 Excluded Areas
2.1 Unless and to the extent the Association may in their discretion otherwise
decide, there shall be no recovery in respect of any liabilities, costs,
losses and expenses directly or indirectly caused by or contributed to
by or arising out of any event, accident or occurrence within the ports,
places, zones or areas or during such period as are specified below:
2.2 At any time or times before, or at the commencement of, or during the
Policy Year, the Association may by notice to the Member change, vary,
extend, add to or otherwise alter the ports, places, countries, zones and
periods specified in Clause 2.1 from a date and time specified by the
Association not being less than 24 hours from midnight on the day the
notice is given to the Member.

3 Cancellation
Cover hereunder may by notice to the Member be cancelled by the
Association from a date and time specified by the Association, not being
less than 24 hours from midnight on the day notice of cancellation is
given to the Member.

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Appendix II Charterers’ limits including special limit for Consortium Claims i insured by the Association in respect of oil pollution under Charterer’s
Entries; or
1 Introduction ii covered for those risks under Charterer’s Entries with any other
The cover afforded under Charterer’s Entries and to charterers co- association which participates in the Pooling Agreement.
assured under Owners’ Entries as described in Rule 78.4 is limited
pursuant to Rule 52 in accordance with this Appendix II. In such circumstances the limit of liability of the Association shall be
such proportion of the sum set out in section (b) below as the claim by
2 Charterers co-assured under an Owner’s Entry the Member bears to the aggregate of all the said claims.
Cover afforded in respect of charterers co-assured under an Owner’s
Entry as described in Rule 78.4 is limited each incident or occurrence b Where a Ship is separately insured under more than one Charterer’s

each entry to whichever is the lesser of the Limitation Amount (if any) Entries with the Association or with the Association and any other
and USD 350 million. Any reference in this Appendix II, section 2, to the association(s) which participate(s) in the Pooling Agreement,
“Limitation Amount” means the amount to which the registered owner the aggregate of all claims for oil pollution brought against the
of the Ship could have limited its liability in the respect of the relevant Association and/or such other association(s) following an incident
matter had the registered owner of the Ship sought and not been denied or occurrence shall be limited to USD 350 million. The liability of
the right to limit. the Association in respect of each such claim shall be limited to that
proportion of USD 350 million that that claim bears to the aggregate
3 Charterers’ Entry – all categories of claims of the claims against the Association or the Association and such other
Subject to the provisions in section 4 below, the cover afforded to all association(s), if any.
assured under a Charterer’s Entry in respect of all liabilities, losses, costs
or expenses falling within Part II, chapter 1 of the Rules, is limited each 5 Consortium Claims
incident or occurrence each entry each Ship to USD 350 million. 5.1 Definitions
For the purpose of this section 5 to Appendix II to the Rules for Ships, the
4 Oil pollution – salvage following words and expressions shall have the following meanings:
a Where the Ship provides salvage or other assistance to another

ship following a casualty, a claim by the Member in respect of oil
Consortium Agreement
pollution arising out of the salvage, the assistance or the casualty shall any arrangement under which a Member agrees with other parties to
be aggregated with any claim or claims for liabilities, losses, costs the reciprocal exchange or sharing of cargo space on the Ship and
or expenses incurred in respect of oil pollution by any other ship(s) Consortium Vessels.
similarly engaged in connection with the same casualty when such
other ship(s) are either:

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Consortium Claim 5.4 Aggregation
means a claim as described in paragraph 5.2 of this section 5 to a Where the Member has more than one ship employed pursuant to

Appendix II to the Rules for Ships. the Consortium Agreement at the time the event giving rise to a
Consortium Claim occurs, all such ships shall be deemed to be an
Consortium Vessel Entry of one Ship.
means a ship, feeder vessel or space thereon, not being the Ship, b Where a Member employs one or more ships pursuant to the

employed to carry cargo under a Consortium Agreement. Consortium Agreement at the time the event giving rise to a
Consortium Claim occurs and the Member has an entry in respect of
5.2 Consortium Claims such ships in the Association and another association which is a party
A claim shall be a Consortium Claim where: to the Pooling Agreement
a it arises under a P&I entry of a Ship; and
i each such ship shall be deemed to be a part entry of one ship in the
b it arises out of the carriage of cargo on a Consortium Vessel; and
Association and the other association(s) which is a party to the Pooling
c that the Member and the operator of the Consortium Vessel are
Agreement, and
parties to a Consortium Agreement; and ii where the Consortium Claims incurred by the Association and the
d at the time cover pursuant to the special provisions in this section 5
other association(s) in respect of the Ship arising from that event out
initially attaches, the Member employs a Ship pursuant to that of the carriage of cargo on a Consortium Vessel in the aggregate
Consortium Agreement. exceed the sum specified in paragraph 5 below, the liability of the
For the purpose of a Consortium Claim under this Appendix II to the Association for such Consortium Claims shall be limited to that
Rules for Ships, the Consortium Vessel shall be treated as a Ship entered proportion of the sum specified in paragraph 5 below that the
on behalf of the Member under a Charterer’s Entry in the Association. Consortium Claims recoverable from the Association in respect of
each part entry bears to the aggregate of all the Consortium Claims
5.3 Allocation of Consortium Claims incurred by the Association and any other association which is a party
Where a Ship under an Owner’s Entry and a Ship under a Charterer’s to the Pooling Agreement.
Entry are both employed by the Member pursuant to a Consortium
Agreement at the time of the event giving rise to the Consortium Claim 5.5 Limit of insurance
occurs, the Consortium Claim of the Member shall for the purpose of The cover afforded for a Consortium Claim is limited pursuant to Rule 52
these Rules be treated as a claim arising in respect of the Owner’s Entry to USD 350 million each incident or occurrence in respect of all ships
of the Member. under any and all P&I entries of a Member in the Association and any
other association which is a party to the Pooling Agreement.

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Appendix III Oil pollution ii covered for those risks under Owner’s Entries with any other
association which participates in the Pooling Agreement.
1 Definitions In such circumstances the limit of the liability of the Association shall
Any reference in this Appendix to be such proportion of the sum set out in paragraph 2(c) above as the
a the “Limitation Amount” means the amount to which the registered
claim by the Member bears to the aggregate of all the said claims.
owner of the Ship could have limited its liability in respect of the e Where the Member and another party or other parties interested

relevant matter had the registered owner of the Ship sought and not in the operation of the Ship are insured under separate Owner’s
been denied the right to limit; Entries with the Association or with the Association and any other
b “oil pollution” includes attempts to reduce or prevent oil pollution;
association(s) which participate(s) in the Pooling Agreement,
the aggregate of all claims for oil pollution brought against the
2 Limit of insurance for Owner’s Entries Association and/or such other association(s) following an accident
a The cover afforded for oil pollution for Owner’s Entries is limited
or occurrence, shall be limited to the sum set out in paragraph 2(c)
pursuant to Rule 53.1 in accordance with this paragraph 2. above. The liability of the Association in respect of each such claim
b Cover afforded to a charterer co-assured under an Owner’s Entry, as
shall be limited to that proportion of the sum set out in paragraph 2(c)
described in Rule 78.4, and for a Consortium Claim as described in above that that claim recoverable from the Association bears to the
Appendix II, section 5, to these Rules, is limited to whichever is the aggregate of the claims recoverable against the Association or the
lesser of the Limitation Amount (if any) and USD 350 million each Association and such other association(s), if any.
incident or occurrence each Owner’s Entry.
c The limit of insurance for any and all claims in respect of oil pollution,

including claims under paragraph 2(b) above in this Appendix III, is
USD 1 billion each incident or occurrence each Owner’s Entry, provided
that if the total amount of claims against a Member in respect of oil
pollution following any one incident or occurrence exceeds
USD 1 billion the Association will not be liable to make any payment in
respect of the amount by which any such claims exceed USD 1 billion.
d Where the Ship provides salvage or other assistance to another

ship following a casualty, a claim by the Member in respect of oil
pollution arising out of the salvage, the assistance or the casualty shall
be aggregated with any claim or claims for liabilities, losses, costs
or expenses incurred in respect of oil pollution by any other ships
similarly engaged in connection with the same casualty when such
other ships are either:
i insured by the Association in respect of oil pollution under Owner’s
Entries; or

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Appendix IV Passengers and seamen i where claims in respect of liability to Passengers have been limited to
USD 2,000,000,000 in accordance with proviso (a) to such proportion
1 For the purposes of this Appendix IV, and without prejudice to anything of the balance of USD 1,000,000,000 as the claims recoverable by
else contained in these Rules for Ships, a “Passenger” shall mean a such persons in respect of liability to Seamen bears to the aggregate
person carried onboard a ship under a contract of carriage or who, with of all such claims otherwise recoverable from the Association and all
the consent of the carrier, is accompanying a vehicle or live animals such associations; and
covered by a contract for the carriage of goods and a “Seaman” shall ii in all other cases, to such proportion of USD 3,000,000,000 as the
mean any other person onboard a ship who is not a Passenger. claims recoverable by such persons in respect of liability to Passengers
and Seamen bears to the aggregate of all such claims claims
2 Unless otherwise limited to a lesser sum, the Association’s aggregate otherwise recoverable from the Association and all such associations.
liability arising under any one Owner’s Entry shall not exceed
i in respect of liability to Passengers USD 2,000,000,000 any one event; 3 The Association’s liability in respect of repatriation pursuant to Rule 27.3
and shall be limited to an amount, per Ship per event, equal to the Club
ii in respect of liability to Passengers and Seamen USD 3,000,000,000 retention* under the Pooling Agreement in the Policy Year the event
any one event. giving rise to the claim(s) occurred.

Provided always that:

* In the 2017 Policy Year the Club retention will amount to USD 10 million.
Where there is more than one Owner’s Entry in respect of the same ship
in the Association and/or or by any other association which participates in 4 Maritime Labour Convention extension clause 2016
the Pooling Agreement 1 Subject only to the other provisions of this MLC Extension
a the aggregate of claims in respect of liability to Passengers
(“the Extension”), the Association shall discharge and pay on the
recoverable from the Association and/or such other associations Member’s behalf under the 2006 Maritime Labour Convention
shall not exceed USD 2,000,000,000 any one event and the liability as amended (MLC 2006) or domestic legislation by a State Party
of the Association shall be limited to such proportion of that sum as implementing MLC 2006:
the claim recoverable by such persons from the Association bears a Liabilities in respect of outstanding wages and repatriation of a

to the aggregate of all such claims otherwise recoverable from the seafarer together with costs and expenses incidental thereto in
Association and from all such associations; accordance with Regulation 2.5, Standard A2.5 and Guideline B2.5;
b the aggregate of all claims in respect of liability to Passengers
and
and Seamen recoverable from the Association and/or such other b Liabilities in respect of compensating a seafarer for death or long-

associations shall not exceed USD 3,000,000,000 any one event and term disability in accordance with Regulation 4.2, Standard A4.2 and
the liability of the Association shall be limited: Guideline B4.2.

2 The Member shall reimburse the Association in full:

a any claim paid under paragraph 1(a) save to the extent that such

claim is in respect of liabilities, costs or expenses recoverable under
Rule 27.1 and 2; and

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b any claim paid under paragraph 1(b) save to the extent that such
e The Extension excludes loss, damage, liability or expense arising from:

claim is in respect of liabilities, costs or expenses recoverable under i The outbreak of war (whether there be a declaration of war or not)
Rule 27.1 and 2. between any of the following: the UK, the USA, France, The Russian
Federation, the People’s Republic of China;
3 There shall be no payment under paragraph 1(a) or paragraph 1(b) if ii Requisition for title or use.
and to the extent that the liability, cost or expense is recoverable under
any social security scheme or fund, separate insurance or any other 5 The Extension shall be subject to Rules 24.3, 25.4 and 77.2 and 3 and 73
similar arrangement. in the Rules for Ships.

4 The Association shall not discharge or pay any liabilities, costs or 6 Without prejudice to paragraph 5, cover under the Extension shall cease
expenses under paragraph 1(a) or paragraph 1(b), irrespective of whether 30 days after notice of termination in accordance with either Regulation
a contributory cause of the same being incurred was any neglect on the 2.5, Standard A2.5.2.11 or Regulation 4.2, Standard A4.2.12.
part of the Member or the Member’s servants or agents, where such
liabilities, costs or expenses were directly or indirectly caused by or 7 Any dispute arising out of or in connection with the Extension shall be
contributed to by or arise from: resolved in accordance with Rules 90 and 91.
a Any chemical, biological, bio-chemical or electromagnetic weapon

b The use or operation, as a means for inflicting harm, of any computer,
8 For the purpose of the Extension:
computer system, computer software programme, computer virus or “Member” means any insured party who is liable for the payment of calls,
process or any other electronic system. contributions, premium or other sums due under the terms of entry
c The Extension may be cancelled in respect of War Risks by the
“Seafarer” shall have the same meaning as in MLC 2006.
Association on 30 days’ notice to the Member (such cancellation “War Risks” means the risks set out in Rule 58.
becoming effective on the expiry of 30 days from midnight of the day
on which notice of cancellation is issued).
d Whether or not such notice of cancellation has been given the

Extension hereunder shall terminate automatically in respect of the
War Risks:
i Upon the outbreak of war (whether there be a declaration of war or
not) between any of the following: United Kingdom, United States
of America, France, the Russian Federation, the People’s Republic of
China;
ii In respect of any ship, in connection with which cover is granted
hereunder, in the event of such ship being requisitioned either for title
or use.

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Appendix V Deductibles b For the purpose of applying a deductible under this paragraph 2 there

shall be added to the relevant liabilities, losses, costs and expenses
1 Introduction (“the relevant liabilities”) as described in sub-paragraph (a) above the
a The Association’s standard deductibles shall be as set out in this
amount of any losses, costs and expenses which are covered under
Appendix. any of Rules 44, 45 and 46 and which are incurred in relation to the
b For the purposes of this Appendix, the Association shall determine in
relevant liabilities.
its absolute discretion under which Rule any particular liability, loss, c Where it is agreed in the terms of P&I entry that a separate deductible

cost or expense is covered. shall apply in respect of a particular category (but not all) of the
liabilities, losses, costs or expenses referred to in any of paragraphs
2 P&I entries 2 (a) (i) to 2 (a) (vi) above, that separate deductible shall apply to
a The standard deductibles for liabilities, losses, costs and expenses
all liabilities, losses, costs or expenses within that category and the
incurred by all the assureds under any one P&I entry are as follows standard deductible shall apply to all other liabilities, losses, costs or
(subject to paragraphs 2(b) and (c) below): expenses covered under the same Rule or Rules and arising out of the
i Crew same event or cargo carrying voyage.
All liabilities, costs and expenses covered under Rule 27 and arising
out of any one event: USD 7,000. 3 Defence entries
ii Passengers and others carried on board a The standard deductible for all legal and other costs covered under

All liabilities, costs and expenses covered under Rules 28 or 29 and Rules 65 and 66 and incurred by all the assured under any one
arising out of any one event: USD 7,000. Defence entry and arising out of any one event shall be 25 per cent
iii Cargo of the legal and other costs, subject to a minimum deductible of
All liabilities, costs and expenses covered under Rule 34 and arising USD 5,000.
out of any one cargo carrying voyage: USD 19,000. b The Association shall determine in its absolute discretion in respect of

iv Pollution the Defence cover whether legal and other costs and expenses have
All liabilities, costs and expenses covered under Rule 38 and arising arisen out of one or several events, irrespective of whether one or
out of any one event: USD 19,000. several Ships are involved.
v Fines
All liabilities, costs and expenses covered under Rule 47 and arising
out of any one event: USD 19,000.
vi Collision with other ships and damage to fixed or floating objects
All liabilities, costs and expenses covered under Rule 36.1(a) and
Rule 37(a) and arising out of any one event: USD 24,000.
vii Other P&I liabilities etc.
All liabilities, losses, costs and expenses covered under any Rule,
other than Rules 27, 28, 29, 34, 36.1(a), 37(a), 38 and 47 and arising
out of any one event: USD 7,000.

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Appendix VI Rules on Overspill Claims and Overspill Calls and related matters Overspill Claim
that part (if any) of a claim (other than a claim arising in respect of oil
1 Interpretation pollution) incurred by the Association or by any other party to the
1.1 In this Appendix the following words and expressions shall have the Pooling Agreement under the terms of entry of a ship which exceeds
following meanings: or may exceed the Group Reinsurance Limit.

Convention Limit
Overspill Claim Date
In respect of a ship, the limit of liability of the shipowner of that in relation to any Overspill Call, the time and date on which there
ship for claims (other than claims for loss of life or personal injury) occurred the incident or occurrence giving rise to the Overspill Claim
at the Overspill Claim Date, calculated in accordance with Article in respect of which the Overspill Call is made, or if the Policy Year in
6, paragraph 1(b) of the International Convention on Limitation of which such incident or occurrence has been closed in accordance with
Liability for Maritime Claims 1976 (the Convention) and converted the provisions of paragraphs 6.1 and 6.2, noon GMT on 20th August
from Special Drawing Rights into United States Dollars at the rate of of the Policy Year in respect of which the Association makes a
exchange conclusively certified by the Association as being the rate declaration under paragraph 6.3.
prevailing on the Overspill Claim Date, provided that
a when a ship is entered for a proportion (the “relevant proportion”) of
1.2 All claims incurred by the Association or any other party to the Pooling
its tonnage only, the Convention Limit shall be the relevant proportion Agreement under the entry of any one ship arising directly from any one
of the limit of liability calculated and converted as aforesaid, and incident or occurrence including any claim in respect of liability for the
b each ship shall be deemed to be a seagoing ship to which the
removal or non-removal of any wreck shall be treated for the purposes of
Convention applies, notwithstanding any provision in the Convention this Appendix VI as if they were one claim.
to the contrary.
1.3 Any reference to a claim incurred by the Association or by any other
Group Reinsurance Limit party to the Pooling Agreement shall be deemed to include the costs
the amount of the smallest claim (other than any claim arising in and expenses associated therewith.
respect of oil pollution) incurred by the Association or any other
party to the Pooling Agreement which would exhaust the largest 2 Recoverability of Overspill Claims
limit for any type of claim (other than any claim arising in respect 2.1 Without prejudice to any other applicable limit, any Overspill Claim
of oil pollution) from time to time imposed in the Group Excess incurred by the Association shall not be recoverable from the Association
Loss Policies. in excess of the aggregate of
a that part of the Overspill Claim which is eligible for pooling under


Overspill Call the Pooling Agreement but which, under the terms of the Pooling
a call levied by the Association pursuant to paragraph 5 for the Agreement, is to be borne by the Association, and
purpose of providing funds to pay part of an Overspill Claim. b the maximum amount that the Association is able to recover from the

other parties to the Pooling Agreement as their contributions to the
Overspill Claim under the terms of the Pooling Agreement.

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2.2 The aggregate amount referred to in paragraph 2.1 shall be reduced to c from such proportion as the Association in its discretion determines of

the extent that the Association can evidence any sums standing to the credit of the reserves as the Association may
a that costs have been properly incurred by it in collecting or seeking
in its discretion have established, and
to collect d by levying one or more Overspill Calls in accordance with paragraph

i Overspill Call levied to provide funds to pay that part of the Overspill 5, irrespective of whether the Association has sought to recover or
Claim referred to in paragraph 2.1(a) or, has recovered all or any of the sums referred to in paragraph 3.1 sub-
ii the amount referred to in paragraph 2.1(b) or paragraph (b), but provided the Association shall first have made a
b that it is unable to collect an amount equal to that part of the
determination in accordance with paragraph 3.1 sub-paragraph (c),
Overspill Call referred to in paragraph 2.1 sub-paragraph (a) which and
it had intended to pay out of the levy of Overspill Calls because e from any interest accruing to the Association on any funds provided

any Overspill Calls so levied, or parts thereof, are not economically as aforesaid.
recoverable, provided that if due to change in circumstances such
amounts subsequently become economically recoverable, the 3.2 The funds required to pay such proportion of any Overspill Claim
aggregate amount referred to in paragraph 2.1 shall be reinstated to incurred by any other party to the Pooling Agreement which the
that extent. Association is liable to contribute under the terms of the Pooling
Agreement shall be provided in the manner specified in paragraph 3.1
2.3 In evidencing the matters referred to in paragraph 2.2 sub-paragraph (b) sub-paragraphs (b) – (e).
the Association shall be required to show that
a it has levied Overspill Calls on all of its Members in respect of the
3.3 To the extent that the Association intends to provide funds required
Overspill Claim referred to in paragraph 2.1. on all Members entered to pay any Overspill Claim incurred by it in the manner specified in
in the Association on the Overspill Claim Date in accordance with and paragraph 3.1 sub-paragraph (d), the Association shall only be required
in the maximum amount permitted under paragraph 5, and to pay such Overspill Claim as and when such funds are received by it,
b it has levied those Overspill Calls in a timely manner, has not released
provided that it can show from time to time, in seeking to collect such
or otherwise waived a Member’s obligation to pay those Calls and has funds, it has taken the steps referred to in paragraph 2.3 sub-paragraph
taken all reasonable steps to recover those Calls. (a) and (b).

3 Payment of Overspill Claims 4 Overspill Claims – expert determinations

3.1 The funds required to pay any Overspill Claim incurred by the 4.1 Any of the issues referred to in paragraph 4.2 on which the Association
Association shall be provided and a Member cannot agree shall be referred to a panel (the Panel)
a from such sums as the Association is able to recover from the other
constituted in accordance with the arrangements established in the
parties to the Pooling Agreement as their contribution to the Overspill Pooling Agreement, which, acting as a body of experts and not as an
Claim, and arbitration tribunal, shall determine the issue.
b from such sums as the Association is able to recover from any special

insurance which may in the discretion of the Association have been
effected to protect the Association against the risk of payments of the
Overspill Claims, and

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4.2 This paragraph 4 shall apply to any issue of whether, for the purpose of 4.8 If the three members of the Panel cannot agree on any matter, the view
applying any of the provisions in paragraphs 2.2, 2.3 and 3.3 in relation of the majority shall prevail.
to any Overspill Claim (the “relevant Overspill Claim”),
a costs have been properly incurred in collecting or seeking to collect
4.9 The Panel shall not be required to give reasons for any determination.
Overspill Claims,
b any Overspill Call or part thereof is economically recoverable, or
4.10 The Panel’s determination shall be final and binding upon the
c in seeking to collect the funds referred to in paragraph 3.3, the
Association and the Member (subject only to paragraph 4.11) and there
Association has taken the steps referred to in that paragraph 3.3. shall be no right of appeal from such determination.

4.3 If the Panel has not been constituted at a time when the Member wishes 4.11 If the Panel makes a determination on an issue referred to in paragraph
to refer an issue to it, the Association shall, on request by the Member, 4.2 sub-paragraphs (b) or (c) the Association or the Member may refer the
give a direction for the constitution of the Panel as required under the issue back to the Panel, notwithstanding paragraph 4.10, if it considers
Pooling Agreement. that the position has materially changed since the Panel made its
determination.
4.4 The Association may (and, on the direction of the Member, shall) give
such direction as is required under the Pooling Agreement for the 4.12 The costs of the Panel shall be paid by the Association.
formal instruction of the Panel to investigate any issue and to give its
determination as soon as reasonably practicable. 4.13 Costs, indemnities and other sums payable to the Panel by the
Association in relation to any Overspill Claim, whether the reference to
4.5 The Panel shall in its discretion decide what information, documents, the Panel has been made under this paragraph 4 or under the Pooling
evidence and submissions it requires in order to determine an issue Agreement, shall be deemed to be costs properly incurred by the
and how to obtain these, and the Association and the Member shall co- Association in respect of that Overspill Claim for the purposes specified
operate fully with the Panel. in paragraph 2.2 sub-paragraph (a).

4.6 In determining any issue referred to it under this paragraph 4 the Panel 5 Levying of Overspill Calls
shall endeavour to follow the same procedure as it follows in determining 5.1 If
issues arising in respect of the relevant Overspill Claim which are referred a the Association shall at any time determine that funds are or may in

to it under the Pooling Agreement. future be required to pay part of an Overspill Claim (whether incurred
by the Association or by any other party to the Pooling Agreement);
4.7 In determining an issue the members of the Panel and
a shall rely on their own knowledge and expertise, and
b the Association shall have made a declaration under paragraphs 6.1

b may rely on any information documents evidence or submission
or 6.3 that a Policy Year shall remain open for the purpose of levying
provided to it by the Association or the Member as the Panel sees fit. an Overspill Call or Calls in respect of that Overspill Claim,
the Association in its discretion, at any time or times after such
declaration has been made, may levy one or more Overspill Calls in
respect of that Overspill Claim in accordance with paragraph 5.2.

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5.2 The Association shall levy any such Overspill Call 6 Closing of Policy Years for Overspill Calls
a on all Members entered in the Association on the Overspill Claim
6.1 If at any time prior to the expiry of a period of thirty-six months from the
Date in respect of ships entered by them at that time, notwithstanding commencement of a Policy Year (the “relevant Policy Year”), any of the
the fact that, if the Overspill Claim Date shall be in a Policy Year parties to the Pooling Agreement sends a notice (an “Overspill Notice”)
in respect of which the Association has made a declaration under in accordance with the Pooling Agreement that an incident or occurrence
paragraph 6.3, any such ship may not have been entered in the has occurred in the relevant Policy Year which has given or at any time
Association at the time the relevant incident or occurrence occurred, may give rise to an Overspill Claim, the Association shall as soon as
and practicable declare that the relevant Policy Year shall remain open for the
b at such percentage of the Convention Limit of each such ship as the
purpose of levying an Overspill Call or Calls in respect of that claim and
Association in its discretion shall decide. the relevant Policy Year shall not be closed for the purpose of making
an Overspill Call or Calls in respect of that claim until such date as the
5.3 An Overspill Call shall not be levied in respect of any ship entered on the Association shall determine.
Overspill Claim Date with an overall limit of cover equal to or less than
the Group Reinsurance Limit. 6.2 If at the expiry of the period of thirty-six months provided for in
paragraph 6.1, no Overspill Notice as therein provided for has been
5.4 The Association shall not levy on any Member in respect of the entry sent, the relevant Policy Year shall be closed automatically for the
of any ship an Overspill Call or Calls in respect of any one Overspill purpose of levying Overspill Calls only, whether or not closed for any
Claim exceeding in the aggregate two and a half per cent (2.5%) of the other purposes, such closure to have effect from the date falling thirty-six
Convention Limit of that ship. months after the commencement of the relevant Policy Year.

5.5 If at any time after the levying of an Overspill Call upon the Members 6.3 If at any time after a Policy Year has been closed in accordance with the
entered in the Association in any Policy Year, it shall appear to the provisions of paragraphs 6.1 and 6.2, it appears to the Association that
Association that the whole of such Overspill Call is unlikely to be required an incident or occurrence which occurred during such closed Policy Year
to meet the Overspill Claim in respect of which such Overspill Call was may then or at any time in the future give rise to an Overspill Claim,
levied, the Association may decide to dispose of any excess which in the Association shall as soon as practicable declare that the earliest
the opinion of the Association is not so required in one or both of the subsequent open Policy Year (not being a Policy Year in respect of which
following ways: the Association has already made a declaration in accordance with
a by transferring the excess or any part thereof to the reserve in
paragraphs 6.1 or 6.3) shall remain open for the purpose of levying an
accordance with Rule 19 in the Rules for Ships; or Overspill Call or Calls in respect of that claim, and such open Policy Year
b by returning the excess or any part thereof to those Members who
shall not be closed for the purpose of making an Overspill Call or Calls in
have paid that Overspill Call or Calls in proportion to the payments respect of that claim until such date as the Association shall determine.
made by them.
6.4 A Policy Year shall not be closed for the purpose of levying Overspill
Calls save in accordance with this paragraph 6.

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7 Security for Overspill Calls on termination or cessor Appendix VII Particular clauses
7.1 If
a the Association makes a declaration in accordance with paragraphs
The “New Jason Clause” and the “Both to Blame Collision Clause” are
6.1 or 6.3 that a Policy Year shall remain open for the purpose of recommended inserted in all charterparties, Bills of Lading, waybills and
levying an Overspill Call or Calls, and other contracts containing or evidencing the contract of carriage used in
b a Member who is liable to pay any such Overspill Call or Calls as may
international trade.
be levied by the Association in accordance with paragraph 5 ceases
or has ceased to be insured by the Association for any reason, or the
Association determines that the insurance of any such Member cease,
the Association may require such Member to provide to the Association
by such date as the Association may determine (the “due date”) a
guarantee or other security in respect of the Member’s estimated future
liability for such Overspill Call or Calls, such guarantee or other security
to be in such form and amount (the “guarantee amount”) and upon such
terms as the Association in its discretion may deem to be appropriate in
the circumstances.

7.2 Unless and until such guarantee or other security as is required by the
Association has been provided by the Member, the Member shall not
be entitled to recovery from the Association of any claims whatsoever
and whensoever arising in respect of any and all ships entered in the
Association for any Policy Year by him or on his behalf.

7.3 If such guarantee or other security is not provided by the Member to the
Association by the due date, a sum equal to the guarantee amount shall
be due and payable by the Member to the Association on the due date,
and shall be retained by the Association as a security deposit on such
terms as the Association in its discretion may deem to be appropriate in
the circumstances.

7.4 The provision of a guarantee or other security as required by the

Association (including a payment in accordance with paragraph 7.3) shall
in no way restrict or limit the Member’s liability to pay such Overspill
Call or Calls as may be levied by the Association in accordance with
paragraph 5.

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 Rules
P&I cover for mobile offshore units

Contents

Chapter 1 Introductory provisions 141

Rule 1 Interpretation 141
Rule 2 The cover 143
Chapter 2 Entries and duration of cover 144
Rule 3 Entries 144
Rule 4 Duration of cover 144
Rule 5 Certificate of Entry 144
Chapter 3 Conditions of cover 146
Rule 6 The Member’s duty of disclosure 146
Rule 7 Alteration of risk 146
Rule 8 Classification and certification of the Vessel 147
Rule 9 Survey 148
Chapter 4 Premiums 149
Rule 10 Premiums 149
Rule 11 Payment 149
Rule 11A Insurance Premium Tax 150
Rule 12 Set-off 150
Rule 13 Laid-up returns 150
Chapter 5 Termination and cesser 151
Rule 14 Termination by a Member 151
Rule 15 Termination by the Association 151
Rule 16 Cesser 152
Rule 17 Effect of cesser or termination 153

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Chapter 6 The cover 154 Chapter 8 Joint Members, Co-assureds and Affiliates 168
Rule 18 Liabilities in respect of crew 154 Rule 46 Cover for Co-assureds and Protective Co-assureds 168
Rule 19 Liability for persons other than Crew members 155 Rule 47 Cover for Affiliates 169
Rule 19A Diversion expenses 155 Rule 48 Joint Members, Co-assureds, Affiliates and Fleet Entries 169
Rule 19B Refugees or persons saved at sea 155 Chapter 9 Claims 171
Rule 20 Collision with vessels 156 Rule 49 Time-bar 171
Rule 21 Damage to fixed or floating objects 156 Rule 50 Obligations with respect to claims 171
Rule 22 Pollution 156 Rule 51 Exclusion of liability 172
Rule 23 Loss of or damage to property 157 Rule 52 Recoveries from third parties 173
Rule 24 Liability for obstruction, wreck removal and clean-up costs 157 Rule 53 Discharge 173
Rule 25 Salvage 157 Rule 54 Currency of payments 173
Rule 26 Fines 158 Rule 55 Payment first by Member 174
Rule 27 Legal costs 159 Rule 56 Payments and undertakings to third parties 175
Rule 28 Enquiry expenses 159 Chapter 10 Assignment, law, arbitration and amendments to Rules 176
Rule 29 Measures to avert or minimise loss 159 Rule 57 Assignment 176
Rule 29A Damage to Member’s own property 159 Rule 58 Governing law 176
Chapter 7 Limitations etc. on cover 160 Rule 59 Arbitration 176
Rule 30 Limitation of liability, sanctions and other restrictions Rule 60 Amendments to the Rules 177
in the right of recovery 160
Rule 31 Pollution from well and damage to
property caused by blowout etc. 161 Appendices
Rule 32 Production operations 161
Rule 33 Loss of hole, well and reservoir 162 Appendix I Premium conditions 178
Rule 34 Excluded removal and clean-up costs 162 A. Premium adjustments for renewals and termination (Rule 10) 178
Rule 35 Construction operations 162 B. Terms of Contract (Rule 39.2) 179
Rule 36 Other excluded losses 162 Appendix II Additional insurances – War risks 181
Rule 37 Amounts saved by the Member 163
Rule 38 Other insurance 163
Rule 39 Terms of contract the Association shall not cover 164
Rule 40 Conduct of the Member 164
Rule 41 War risks 165
Rule 42 Nuclear perils 165
Rule 43 Part tonnage 166
Rule 44 Deductibles 166
Rule 45 US owned, operated or managed Vessels 167

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Chapter 1 Introductory provisions

Rule 1 Interpretation
1 In these Rules the following words or expressions shall mean:
Affiliate
a person insured pursuant to Rule 47.

Articles of Association
for entries with Assuranceforeningen Gard -gjensidig-, the Statutes of
Assuranceforeningen Gard -gjensidig- and for entries with Gard P. & I.
(Bermuda) Ltd, the Bye-Laws of Gard P. & I. (Bermuda) Ltd.

Association
for entries with Assuranceforeningen Gard -gjensidig-the ‘Association’
means Assuranceforeningen Gard -gjensidig- and for entries with Gard
P. & I. (Bermuda) Ltd the ‘Association’ means Gard P. & I. (Bermuda) Ltd.

Certificate of Entry
a document issued by the Association pursuant to Rule 5.1, including
(where the context permits) any endorsement note in respect of the
relevant entry issued pursuant to Rule 5.3, which evidences the terms
and conditions of the contract of insurance in respect of the Vessel.

Co-assured
any person who is insured pursuant to Rule 46.1.

Crew
officers, including the platform manager or master, and workers
contractually obliged to serve on board the Vessel, including
substitutes and including such persons while proceeding to or from
the Vessel.
Hull Policies
the insurance policies effected on the hull and machinery of the
Vessel, including any excess liability policy.
Insurance Premium Tax
Any taxes or other dues payable in respect of an entry of a Vessel in the
Association in the country where the Vessel is registered, the country
where the Member is resident, the country where the Member has a
permanent place of business or in the country where the risk is located.

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Joint Members 6 Where any matter requires the agreement, approval or consent of the
where the Vessel is entered in the names of more than one Member, Association, agreement, approval or consent shall only be deemed given
the named Members. if in writing.
Member
an owner, operator or charterer of a vessel entered in the Association Rule 2 The cover
who according to the Articles of Association and these Rules is 1 A Member shall be covered for
entitled to membership of the Association, provided that, where the a such of the risks specified in Chapter 6 of these Rules as are agreed

context allows, the term “Member” shall, in these Rules, include an between the Member and the Association; and
Co-assured and an Affiliate. b such of the additional risks specified in Appendix II as are either

Policy Year expressed in Appendix II to be available to such a Member or as are
a year from noon GMT on 20th February in any year to immediately expressly agreed between the Member and the Association.
prior to noon GMT on the next following 20th February. 2 The cover afforded by the Association to a Member shall be subject

Premium Rating to the Articles of Association and to these Rules and to any special
the fixed premium payable to the Association according to the terms conditions agreed between the Association and the Member.
of the Vessel’s entry. 3 A Member is only covered in respect of liabilities, losses, costs and

Protective Co-assured expenses incurred by him which arise in direct connection with the
any person who is insured pursuant to Rule 46.3. operation of the Vessel, with coverage including but not limited to:

Vessel a in direct connection with the operation of the Vessel, which will be

any offshore unit, any other ship or vessel or mobile or temporarily deemed to include activity at one or more supply bases provided that
fixed craft, including the risers, flow lines, umbilicals, floating hoses, such activity is in direct connection with the operation of the Vessel
buoyancy floats or tanks and mooring systems, or any other item or and transport between the Vessel and a supply base or a port or
equipment used as an integral part of the unit’s operations, or any part airport in the vicinity of the base;
thereof as accepted by and entered in the Association under these b in respect of the Member’s interest in the Vessel; and

Rules or any other description of unit noted in the Certificate of Entry. c out of events occurring during the period of entry of the Vessel in the

Association.
2 Headings and notes are for reference only, and shall not affect the 4 Subject always to the provisions of Rule 2.3, the Association may in
construction of these Rules. its absolute discretion exercise powers conferred in the Articles of
3 Any reference to a person shall be deemed to include a reference to an Association to pay compensation in respect of a liability, loss, cost or
individual or a body corporate or unincorporate, as the context requires. expense which is not otherwise covered under these Rules.
4 A Vessel shall only be deemed to be US owned, operated or managed
for the purposes of these Rules if it is identified as such in the terms
of entry.
5 A person shall be deemed to be the manager or the operator of a Vessel
for the purposes of these Rules if the Association in its discretion shall
so determine.

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Chapter 2 Entries and duration of cover In the event that the Member tenders this Certificate as evidence of
insurance under any applicable law relating to financial responsibility, or
Rule 3 Entries otherwise shows or offers it to any other party as evidence of insurance,
1 Application for an entry of a Vessel may be made by any owner, operator, such use of this Certificate by the Member is not to be taken as any
charterer or other insurer of that Vessel. indication that the Association thereby consents to act as guarantor or to
2 A vessel may be entered with the Association for a partial interest only. be sued directly in any jurisdiction whatsoever. The Association does not
3 Application for the entry of a vessel shall be made in such form as may so consent.”
from time to time be required by the Association. The particulars given in
any application form, together with any other particulars or information 3 If the Association and a Member at any time agree a variation in the
given in writing in the course of applying for insurance or negotiating terms and conditions of the contract of insurance the Association shall
changes in the terms of insurance, shall form the basis of the contract of issue an endorsement note stating the terms of such variation and the
insurance between the Member and the Association. date from which such variation is to be effective.
4 The Association may refuse to accept an application for an entry of
a vessel without stating grounds therefore, and whether or not the
applicant is already a Member of the Association.

Rule 4 Duration of cover

The cover shall commence at the time and date agreed by the
Association and shall continue until immediately prior to noon GMT on
the 20th February next ensuing, and thereafter, unless terminated in
accordance with these Rules, from Policy Year to Policy Year.

Rule 5 Certificate of Entry

1 After an entry has been accepted, the Association shall issue a Certificate
of Entry which shall evidence the terms and conditions of the contract
of insurance.
2 The following provision will be deemed to be incorporated into all
Certificates of Entry:

“This Certificate of Entry is evidence only of the contract of indemnity

insurance between the above named Member(s) and the Association
and shall not be construed as evidence of any undertaking, financial or
otherwise, on the part of the Association to any other party.

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Chapter 3 Conditions of cover 2 Where there is an alteration of the risk which has been intentionally caused
or agreed to by the Member and the Association would not have accepted
Rule 6 The Member’s duty of disclosure the entry at the same Premium Rating if it had known of such an alteration
1 The Member shall prior to the conclusion of the contract of insurance prior to the conclusion of the contract of insurance, the Association is free
make full disclosure to the Association of all circumstances which from liability to the extent that any liability, loss, cost, or expense incurred
would be of relevance to the Association in deciding whether and on by the Member was caused or increased by the alteration. Where the
what conditions to accept the entry. Should the Member subsequently Association would have accepted the entry at the same Premium Rating
become aware of any such circumstances as are mentioned above, or but on other conditions, the Association shall only be liable to the extent
of any change in such circumstances as previously disclosed, he must that it is proved that any liability, loss, cost or expense would have been
without undue delay inform the Association. covered under the conditions the Association would have accepted.
2 Where the Member at the conclusion of the contract of insurance has
neglected his duty of disclosure and the Association would not have Rule 8 Classification and certification of the Vessel
accepted the entry at the Premium Rating agreed if the Member had 1 Unless otherwise agreed in writing between the Member and the
made such disclosure as it was his duty to make, the Association is free Association it shall be a condition of the insurance of the Vessel that:
from liability. Where the Association would have accepted the entry a the Vessel shall be and remain throughout the period of entry classed

on the same Premium Rating but on other conditions, the Association with a classification society approved by the Association;
shall only be liable to the extent that it is proved that any liability, loss, b the Member shall promptly call to the attention of that classification

cost or expense would have been covered under those conditions the society any incident, occurrence or condition which has given or
Association would have accepted. might have given rise to damage in respect of which the classification
3 Where the Member neglects his duty of disclosure subsequent to the society might make recommendations as to repairs or other action to
conclusion of the contract of insurance and the Association would not be taken by the Member;
have accepted the entry at the same Premium Rating had it known of the c the Member shall comply with all the rules, recommendations and

circumstances prior to the conclusion of the contract, the Association is requirements of that classification society relating to the Vessel within
free from liability. Where the Association would have accepted the entry the time or times specified by the society;
at the same Premium Rating but on other conditions, the Association d the Association is authorised to inspect any documents and obtain

shall only be liable to the extent that it is proved that any liability, loss, any information relating to the maintenance of class of the Vessel
cost or expense would have been covered under those conditions the in the possession of any classification society with which the Vessel
Association would have accepted. is or has at any time been classed prior to and during the period of
insurance and such classification society or societies are authorised
Rule 7 Alteration of risk to disclose and make available such documents and information to
1 Where after the conclusion of the contract of insurance circumstances the Association upon request by it and for whatsoever purpose the
occur which result in an alteration of the risk, the Member shall disclose Association in its sole discretion may consider necessary.
such circumstances to the Association without undue delay.

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e the Member shall immediately inform the Association if, at any

Chapter 4 Premiums
time during the period of entry, the classification society with which
the Vessel is classed is changed and advise the Association of all Rule 10 Premiums
outstanding recommendations, requirements or restrictions specified 1 Each Vessel shall be entered on the basis of a fixed premium in an
by any classification society relating to the Vessel as at the date of amount agreed between the Association and the Member.
such change; 2 The Association may determine (either generally for all entries, or
f the Member shall comply or procure compliance with all statutory
separately for any entry or category of entries) that for the next ensuing
requirements of the state of the Vessel’s flag relating to the Policy Year the Premium Rating of the Vessels entered in the Association
construction, adaptations, condition, fitment, equipment, manning, shall be altered by a fixed percentage, before any further adjustment
safe operation, security and management of the Vessel and at all is made in order to take account of the Member’s loss record, alteration
times maintain or procure the maintenance of the validity of such in the extent of the risk or any other factor the Association may
statutory certificates as are issued by or on behalf of the state of the deem relevant.
Vessel’s flag in relation to such compliance. 3 The Association may, in its sole discretion, levy an additional fixed
2 The Association shall notify the Member when it intends to inspect premium for cover made available pursuant to Rule 2.1(b).
classification documents or request information documents or request 4 The Association may, in its sole discretion, agree or levy premium
information from a classification society in accordance with Rule 8.1.d. adjustments on the renewal or termination of an entry in accordance with
3 The Member shall not be entitled to any recovery from the Association the premium conditions set out in paragraph A of Appendix I.
in respect of any claim arising during a period when the Member is not
fulfilling or has not fulfilled the conditions in Rule 8.1. Rule 11 Payment
1 Premiums are due in three instalments as follows:
Rule 9 Survey a for the period 20th February – 20th June, on 20th March;

1 The Association may at any time during the period of entry appoint a b for the period 20th June – 20th October, on 5th July;

surveyor to inspect the Vessel on behalf of the Association. c for the period 20th October – 20th February, on 5th November.

2 Where the Vessel has been laid-up for a period exceeding six months, 2 Where the Vessel is entered in the course of a Policy Year, a pro rata
the Member shall give the Association not less than seven days’ notice premium for the four-monthly period in which it is entered is due at once,
prior to the Vessel leaving the place of lay-up for recommissioning, to with the remaining instalments, if any, due at the times specified
afford the Association an opportunity to inspect the Vessel pursuant to in Rule 11.1.
Rule 9.1. 3 Any other sums debited by the Association to a Member, including
3 Where an inspection reveals matters which, in the sole discretion of the Insurance Premium Tax for which the Member is liable, reimbursement of
Association, represent a deficiency in the Vessel, the Association may deductibles, interest, costs or expenses, are due on demand.
exclude specified liabilities, losses, costs and expenses from the cover 4 If any sums due to the Association from the Member are not paid on or
until the deficiency has been repaired or otherwise remedied. before the due date interest is chargeable on such unpaid sums at such
rate as the Association may from time to time decide.

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Rule 11A Insurance Premium Tax Chapter 5 Termination and cesser

The Member shall indemnify the Association and hold it harmless in
respect of any liability, cost or expense incurred or amount paid by Rule 14 Termination by a Member
the Association in respect of any Insurance Premium Tax for which the A Member may terminate the entry with effect from the end of the Policy
Member is liable. Year in respect of one or more Vessels by giving written notice thereof
prior to 20th January. Except with the agreement of the Association, a
Rule 12 Set-off Vessel may not be withdrawn nor may notice of termination be given with
1 Without prejudice to anything elsewhere contained in the Articles of effect from any other date.
Association or these Rules, the Association shall be entitled to set off any
amount due from a Member to the Association against any amount due Rule 15 Termination by the Association
from the Association to such Member or its Co-assureds or Affiliates. 1 The Association may terminate the entry with effect from the end of the
2 A Member shall not set off against any amount due from it to the Policy Year in respect of one or more Vessels by giving written notice
Association the amount of any claim it or its Co-assureds or Affiliates may thereof prior to 20th January.
have against the Association. 2 The Association may also terminate the insurance of any or all of the
Vessels entered by a Member:
Rule 13 Laid-up returns a without notice, where a casualty or other event has been brought about

1 Subject to any special terms which may have been agreed, if the Vessel has by wilful misconduct on the part of the Member, as defined in Rule 40;
been laid up in a safe port or other approved lay-up location for a period b on three days’ notice, where the Member has failed to pay when

of at least 15 consecutive days (or, in case of a U.S. owned, operated or due and demanded any premium or other amount due from him to
managed unit, 30 consecutive days), excluding the day of arrival at and the Association;
the day of departure from the lay-up location, such proportion as the c on 14 days’ notice, where the Member has neglected a duty of

Association may decide of the premium payable, pro rata for the period of disclosure under Rule 6 or Rule 7 or where there has been an
the lay-up, shall be returned to the Member. alteration of the risk after conclusion of the contract of insurance;
2 The Member shall disclose to the Association any major repairs d on 45 days’ notice, without giving any reason.

or alterations to be undertaken during lay-up, and if required by 3 Notwithstanding and without prejudice to Rules 15.1 and 15.2 and Rule
the Association shall forward to the Association a copy or copies of 16.4, the Association may, on such notice in writing as the Association
the contract or contracts for such works, and the Association may in its may decide, terminate the entry in respect of any and all Vessel(s) in
discretion make adjustments to the rate at which laid-up returns are circumstances where the Member has exposed or may, in the opinion of
payable under Rule 13.1. the Association, expose the Member or the Association to the risk of being
3 No claim for laid-up returns shall be recoverable from the Association or becoming subject to any sanction, prohibition or adverse action in any
unless the Member has informed the Association of the lay-up of form whatsoever by the State of the Vessel(s) flag, by any State where the
the Vessel within 30 days after the commencement of the lay-up and Association has its registered office or permanent place of business or by
the claim for laid-up returns is made within 30 days of the end of the any State being a Major Power or by the United Nations or the European
lay‑up period. Union. For the purpose of this Rule 15.3 “Major Power” means any of the
following States: United Kingdom, United States of America, France, the
Russian Federation and the People’s Republic of China.

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Rule 16 Cesser g the Vessel ceases to be classed with a classification society approved
1 A Member shall (subject to Rule 16.5) cease to be covered by the by the Association, or its class is suspended;
Association in respect of any and all Vessels entered by him in the h the Vessel is requisitioned;

following circumstances: i the Vessel, with the consent or knowledge of the Member, is being

a where the Member is a corporation, a resolution is passed for the
used for the furtherance of illegal purposes.
voluntary winding up of the Member or an order is made for its 3 Where the Vessel disappears, it shall be deemed to be a total loss ten
compulsory winding up or it is dissolved or a receiver or similar days from the day it is last heard from.
official to all or part of its affairs is appointed or any secured party 4 Notwithstanding and without prejudice to Rules 16.1, 16.2 and 16.3, a
takes possession of any of its property or it seeks protection from its Member shall forthwith cease to be insured by the Association in respect
creditors under any applicable bankruptcy or insolvency laws or any of any and all Vessel(s) entered by him if any Vessel is employed by the
similar event occurs (in the determination of the Association) in any Member in a carriage, trade or on a voyage which will thereby in any
applicable jurisdiction; and way howsoever expose the Association to the risk of being or becoming
b where the Member is an individual, the Member dies or becomes
subject to any sanction, prohibition or adverse action in any form
incapable by reason of mental disorder of managing or administering whatsoever by any State where the Association has its registered office
his property and affairs or he becomes bankrupt or he makes any or permanent place of business or by any State being a Major Power
composition or arrangement with his creditors generally or a receiving or by the United Nations or the European Union. For the purpose of
order is made against him or any secured party takes possession of this Rule 16.4 “Major Power” means any of the following States: United
any of his property or any similar event occurs (in the determination of Kingdom, United States of America, France, the Russian Federation and
the Association) in any applicable jurisdiction. the People’s Republic of China.
2 The Member shall (subject to Rule 16.5) cease to be covered by the 5 Notwithstanding the provisions of Rules 16.1, 16.2 and 16.4, the
Association in respect of any Vessel entered by him in the following Association may decide in any particular case that cover shall be
circumstances: continued without interruption, or that cover shall be reinstated, in either
a the Vessel becomes a total loss;
case on such terms as the Association shall determine.
b the Vessel is accepted by the hull underwriters (whether of marine or
6 Notwithstanding the provisions of Rule 16.2. (a), (b) and (c) the
war risks) as a constructive total loss; Association shall cover subject to these Rules and the terms of entry
c the Vessel suffers damage and the cost of repairs (as determined
agreed, liabilities, losses, costs and expenses flowing from the casualty
by the Association) will equal or exceed the higher of 80% of its which gave rise to the total loss or constructive total loss of the Vessel.
insured value or of its value in repaired condition (as determined by
the Association); Rule 17 Effect of cesser or termination
d the Vessel is transferred to a new owner by sale or otherwise;
1 Where the insurance ceases or is terminated, the Member shall remain
e new managers of the Vessel are appointed or there is a change in the
liable for all premiums in respect of the then current Policy Year pro
operator of the Vessel; rata for the period up to the date of cesser or termination, and for all
f any mortgagee or other secured party enters into possession of
premiums in respect of prior Policy Years.
the Vessel; 2 The Association shall be under no liability whatsoever by reason of
anything occurring after the date of cessation or termination.

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Chapter 6 The cover plate or other objects of a rare or precious nature, bank notes or other
forms of currency, bonds or other negotiable instruments, whether the
Rule 18 Liabilities in respect of crew value is declared or not, unless the Association has been notified prior
1 The Association shall cover: to any such carriage, and any directions made by the Association have
a liability to pay hospital, medical, maintenance, funeral and other
been complied with;
costs and expenses incurred in relation to the injury to, or illness or iv there shall be no recovery in relation to liability which arises under
death of, a member of the Crew, including costs and expenses of a contract of indemnity or guarantee between the Member and a
repatriating the member of the Crew and his personal effects, or third party.
sending home an urn of ashes or coffin and personal effects in the 2 The Association shall cover liability to repatriate a member of the Crew
case of death, and costs and expenses necessarily incurred in sending pursuant to any statutory enactment giving effect to the Maritime Labour
a substitute to replace the repatriated or dead man; Convention 2006 as amended or any materially similar enactment,
b liability to repatriate and compensate a member of the Crew for
provided always that there shall be no recovery in respect of liabilities
the loss of his employment caused in consequence of the actual or arising out of the termination of any agreement, or the sale of the Vessel,
constructive total loss of the Vessel or of a major casualty rendering or any other act of the Member in respect of the Vessel, save and to the
the Vessel unseaworthy and necessitating the signing off of the Crew; extent permitted by this Rule 18.2 in respect of the Member’s liability for
c liability to pay compensation or damages in relation to the injury to, or
such expense under the Maritime Labour Convention 2006 as amended.
illness or death of, a member of the Crew;
d liability for costs and expenses of travelling incurred by a member of
Rule 19 Liability for persons other than Crew members
the Crew when the travelling is occasioned by a close relative having The Association shall cover liability resulting from the injury to, or illness
died or become seriously ill after the Crew member signed on, and or death of, persons other than members of the Crew.
costs and expenses necessarily incurred in sending a substitute to
replace that Crew member; Rule 19A Diversion expenses
e liability for wages payable to an injured or sick member of the Crew or
The Association shall cover extra costs of fuel, insurance, wages, stores,
on death to his estate; provisions and port charges attributable to a diversion, over and above
f liability in respect of loss of or damage to the personal effects of a
the costs that would have been incurred but for the diversion, where
Crew member, these are incurred solely for the purpose of securing treatment for an
provided that under this Rule 18.1: injured or sick person on board, or for the purpose of searching for a
i where the liability arises under the terms of a crew agreement or other person missing from the Vessel, or necessarily incurred while awaiting a
contract of service or employment, and would not have arisen but substitute for such person, or for the purpose of saving persons at sea.
for those terms, the liability is not covered by the Association unless
those terms have been previously approved by the Association; Rule 19B Refugees or persons saved at sea
ii references to personal effects shall exclude valuables and any other The Association shall cover costs and expenses directly and reasonably
article which in the opinion of the Association is not an essential incurred in consequence of the Vessel having refugees or persons saved
requirement of a Crew member. at sea on board, but only to the extent that the Member is legally liable
iii the cover shall not include liabilities, costs or expenses arising out
of the carriage of specie, bullion, precious or rare metals or stones,

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for the costs and expenses or they are incurred with the approval of the Rule 23 Loss of or damage to property
Association. The cover does not include consequential loss of profit The Association shall cover liability for loss of or damage to property not
or depreciation. specified elsewhere in this chapter.

Rule 20 Collision with vessels Rule 24 Liability for obstruction, wreck removal and clean-up costs
1 The Association shall cover liability to pay damages to any other person The Association shall cover:
incurred as a result of a collision with another vessel, if and to the extent a costs and expenses relating to the raising, removal, destruction,

that such liability is not covered under the Hull Policies, provided that lighting and marking of the Vessel or of the wreck of the Vessel or
a the Member shall not be entitled to recover from the Association any
parts thereof or of its equipment lost as a result of a casualty, when
deductible borne by him under the Hull Policies; and such raising, removal, destruction, lighting and marking is compulsory
b the cover under this Rule shall exclude liability in respect of persons or
by law or the costs or expenses thereof are legally recoverable from
property on board the Vessel. the Member under contract or otherwise;
2 Unless otherwise agreed between the Member and the Association b liability incurred by reason of the Vessel or the wreck of the Vessel

as a term of the Vessel’s entry in the Association, if both vessels are to or parts thereof as a result of a casualty causing an obstruction,
blame, then where the liability of either or both of the vessels in collision provided that:
becomes limited by law, claims under Rule 20.1 shall be settled upon the i recovery from the Association under this Rule shall be conditional
principle of single liability, but in all other cases claims under this Rule upon the Member not having transferred his interest in the wreck
shall be settled upon the principle of cross-liabilities, as if the owner of otherwise than by abandonment; and
each vessel had been compelled to pay the owner of the other vessel ii the realised value of the wreck and other property saved shall be
such proportion of the latter’s damages as may have been properly credited to the Association.
allowed in ascertaining the balance or sum payable by or to the Member In no circumstances shall cover under this Rule extend to any costs
in consequence of the collision. relating to removal or clean-up of any part of the drilling or production
equipment lost or deposited on the seabed once the equipment has
Rule 21 Damage to fixed or floating objects been deployed for drilling or production. For the purpose of this Rule
The Association shall cover liability for loss of or damage to any fixed or equipment shall be considered deployed from the time installation of the
floating object by reason of contact between the Vessel and such object, equipment, or any part of the equipment, for drillling or production has
if and to the extent not covered under the Hull Policies, provided that commenced.
there shall be no recovery under this Rule 21 in respect of any deductible
borne by the Member under the Hull Policies. Rule 25 Salvage
The Association shall cover liability for special compensation awarded
Rule 22 Pollution to a salvor
The Association shall cover liabilities, costs and expenses (excluding a pursuant to Article 14 of the International Convention on Salvage

fines) arising in consequence of the discharge or escape from the Vessel 1989; or
of oil or any other pollution or the threat of such discharge or escape.

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b pursuant to Article 14 of the International Convention on Salvage

Rule 27 Legal costs
1989, as incorporated into Lloyd’s Open Form of Salvage Agreement The Association shall cover legal costs and expenses relating to any
(1980, 1990, 1995, 2000 or 2011), or into any other salvage contract liability, loss, cost or expense which, in the opinion of the Association, is
approved by the Association; or (or, apart from any applicable deductible, would be) likely to result in a
c pursuant to the Special Compensation P&I Clubs Clause (SCOPIC)
claim on the Association, but only to the extent that such legal costs and
as incorporated into Lloyd’s Open Form of Salvage Agreement expenses have been incurred with the agreement of the Association.
or any other “No Cure – No Pay” salvage contract approved by
the Association. Rule 28 Enquiry expenses
The Association shall cover costs and expenses incurred by a Member in
Rule 26 Fines defending himself or in protecting his interests before a formal enquiry
1 The Association shall cover fines imposed upon the Member in respect into the loss of or casualty involving the Vessel, in cases in which, in the
of the Vessel by any court, tribunal or other authority of competent opinion of the Association, a claim upon the Association is likely to arise,
jurisdiction for or in respect of any of the following: but only to the extent that such costs and expenses have been incurred
a failure to comply with regulations concerning the declaration of
with the agreement of the Association.
goods, or documentation of cargo, provided that the Member is
insured by the Association for cargo liability under Rule 23; Rule 29 Measures to avert or minimise loss
b breach of any immigration law or regulations;
The Association shall cover:
c the accidental escape or discharge of oil or any other substance,
a extraordinary costs and expenses reasonably incurred on or after

provided that the Member is insured for pollution liability by the the occurrence of a casualty or event for the purpose of avoiding or
Association under Rule 22; minimising any liability on the Association, other than:
d smuggling or any infringement of any custom law or regulation other
i costs and expenses resulting from measures that have been or could
than in relation to cargo carried on the Vessel. have been accomplished by the Crew or by reasonable use of the
Vessel or its equipment;
2 The Association may, in its sole discretion, cover in whole or in part ii loss resulting from non-fulfilment, or delay in fulfilment, of a contract
a a fine other than those listed in Rule 26.1 above imposed upon the
or of an agreement for the sale of the Vessel;
Member, provided the Member has satisfied the Association that iii cost and expenses relating to the regaining of control of the well
he took such steps as appear to the Association to be reasonable to which is being drilled or worked over or serviced by the Vessel.
avoid the event giving rise to the fine or penalty; b losses, costs and expenses incurred at the direction of the Association.

b any fine imposed not upon the Member but the master or Crew

member of the Vessel or on any other servant or agent of the Rule 29A Damage to Member’s own property
Member or on another party, provided that the Member has been If and to the extent the Vessel causes damage to property, other than
compelled by law to pay or reimburse such fine or that the Association cargo, belonging wholly or in part to the Member, the Member shall be
determines that it was reasonable for the Member to have paid or entitled to recover from the Association under Rule 20 (collision with
reimbursed the same. vessels), Rule 21 (damage to fixed or floating objects) Rule 23 (loss of
3 The Association shall be under no obligation to give reasons for its or damage to property) or Rule 24 (b) (liability for obstruction) as if the
decision pursuant to Rule 26.2 above. property belonged to a third party.

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Chapter 7 Limitations etc. on cover 5 The Member shall in no circumstances be entitled to recover from the
Association that part of any liabilities, costs or expenses which is not
Rule 30 Limitation of liability, sanctions and other restrictions on the right recovered by the Association from any reinsurer because of a shortfall
of recovery in recovery from such reinsurer by reason of any sanction, prohibition
1 Where the Member or a Co-Assured is entitled to limit his liability or adverse action by a competent authority or government or the risk
pursuant to any rule of law, the maximum recovery is the amount to thereof if payment were to be made by such reinsurer. For the purposes
which the Member or the Co-assured may limit his liability save insofar of this paragraph, “shortfall” includes, but is not limited to, any failure or
as liabilities, losses, costs and expenses in excess of the amount to which delay in recovery by the Association by reason of the reinsurer making
the Member may limit his liability are incurred pursuant to a contract payment into a designated account in compliance with the requirements
approved by the Association. of any competent authority or government.
2 In any case, the liability of the Association for any and all liabilities, losses,
costs and expenses incurred by all Members, Co-assureds and Affiliates Rule 31 Pollution from well and damage to property caused by blowout etc.
insured under any one entry and which arise out of any one event shall The Association shall not cover:
be limited to the sum insured in the terms of entry, provided always that a liabilities, losses, costs or expenses arising out of pollution from the

to the extent the Association has reinsured the risks insured under any well which is being drilled or worked over or serviced by the Vessel
one entry, the Association shall only be obliged to pay any amount in and measures taken to avert or minimise such liabilities, costs or
excess of USD 100 million per event as and when such funds are received expenses;
by the Association from the reinsurer(s). b liability for loss or damage to property belonging to any person

3 Notwithstanding Rule 30.2 above, the liability of the Association for fines chartering the Vessel by way of a charterparty or other contract for
as described in Rule 26 shall be limited to USD 50 million per Vessel the employment of the Vessel and any other party having an owning
per event provided that if the total amount of all categories of liabilities, interest in the field being serviced by the Vessel, caused by blow-
losses, costs and expenses falling within Rule 26 and any other Rules out, cratering, seepage or any other uncontrolled flow of oil, gas or
incurred by all Members, Co-assureds and Affiliates under any one entry water from the well or reservoirs, provided that the liability arises
and which arise out of any one event exceeds the sum insured in the in connection with the well which is being drilled or worked over or
terms of entry referred to in Rule 30.2 above, the Association shall not serviced by the Vessel.
be liable to make any payment in respect of the amount by which such
claims exceed the sum insured in the terms of entry referred to in Rule Rule 32 Production operations
30.2 above. The Association shall not cover liabilities, losses, costs or expenses arising
4 The Association shall not indemnify a Member against any liabilities, from a vessel engaged in production operations out of seepage or an
costs or expenses where the provision of cover, the payment of any uncontrolled flow from any flow line, riser or umbilical connected to the
claim or the provision of any benefit in respect of those liabilities, costs producing well prior to the product entering the Vessel, save insofar such
or expenses may expose the Association to any sanction, prohibition, flow line, riser or umbilical would be included in the description of the
restriction or adverse action by any competent authority or government. Vessel but always subject to Rule 31(a), and out of measures taken to
avert or minimise such liabilities, losses, costs or expenses.

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Rule 33 Loss of hole, well and reservoir c costs of salvage or services in the nature of salvage, rendered to the

The Association shall not cover: Vessel and any costs or expenses in connection therewith, except to
a loss of or damage to the hole or well;
the extent that they form part of a claim recoverable under Rule 25
b loss of or damage to the reservoir;
(Salvage);
provided that the loss or damage arise in connection with the hole or d liabilities, losses, costs or expenses arising out of cancellation of a

well which is being drilled or worked over or serviced by the Vessel. charter or other engagement of the Vessel;
e liabilities, losses, costs or expenses arising out of the insolvency of the

Rule 34 Excluded removal and clean-up costs Member or any other person or out of overdue or irrecoverable debts
The Association shall not cover any costs relating to removal or clean‑up or out of any of the circumstances described in Rules 16.1(a) or (b);
of debris lost or deposited on the seabed during operations, unless such f the Member’s internal administrative costs and expenses.

costs are recoverable under Rule 24. 2 Unless and to the extent that the Association in its sole discretion shall
otherwise decide, the Association shall not cover any liability, loss, damage,
Rule 35 Construction operations cost or expense, including, without limitation, liability for the cost of any
Where the Vessel is engaged in construction operations, the Association remedial works or clean-up operations, arising as a result of the presence in,
shall not cover liability in respect of pollution from, loss of or damage or the escape or discharge or threat of escape or discharge from, any land
to the contract works, or to the materials supplied or to be supplied for based dump site, storage or disposal facility of any substance previously
the contract works to the extent that the pollution, loss or damage arises carried on the Vessel whether as cargo, fuel, stores or waste and whether at
either any time mixed in whole or in part with any other substance whatsoever.
a out of the installation or repair or other work being undertaken by

the Vessel; or Rule 37 Amounts saved by the Member
b during the navigation of the Vessel to or from or about the site
Where the Member, as a result of an event for which he is covered by
where the work is to be undertaken, where that liability is covered by the Association, has obtained extra revenue, saved costs or expenses or
builders all risk insurance or construction all risk insurance or would be avoided liability or loss which would otherwise have been incurred and
so covered had the Member been named as co-assured on standard which would not have been covered by the Association, the Association
builders all risk or construction all risk insurance policies in respect of may deduct from the compensation an amount corresponding to the
the project of which the contract works form a part. benefit obtained.

Rule 36 Other excluded losses Rule 38 Other insurance

1 The Association shall not cover, except (in the case of paragraphs (a)–(d) The Association shall not cover:
below) where and to the extent that they form part of a claim recoverable a liabilities, losses, costs or expenses which are covered by the Hull

under Rule 29: Policies or which would have been covered by the Hull Policies had
a loss of or damage to the Vessel, its equipment, outfit or supplies,
the Vessel been fully insured on standard terms, without deductible,
used on board or outside the Vessel; for an insured value which is at all times not less than the market value
b loss of hire due to the Member;
from time to time of the Vessel without commitment;

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b liabilities, losses, costs or expenses recoverable under any other

done, or a deliberate omission by the Member, with knowledge that the
insurance or which would have been so recoverable: performance or omission will probably result in injury, or an act done or
i apart from any term in such other insurance excluding or limiting omitted in such a way as to allow an inference of a reckless disregard of
liability on the ground of double insurance; and the probable consequences.
ii if the Vessel had not been entered in the Association with cover
against the risks set out in these Rules; Rule 41 War risks
c liabilities, losses, costs or expenses in relation to a person performing
The Association shall not cover liabilities, losses, costs or expenses
work in the service of the Vessel covered by social insurance or by (irrespective of whether a contributory cause of the same being incurred
public or private insurance required by the legislation or collective was any neglect on the part of the Member or his servants or agents)
wages agreement governing the contract of employment of such when the loss or damage, injury, illness or death or other accident in
person, or which would have been so covered if such insurance had respect of which such liabilities arise or such losses, costs or expenses are
been effected. incurred was caused by:
a war, civil war, revolution, rebellion, insurrection or civil strife arising

Rule 39 Terms of contract the Association shall not cover therefrom, or any hostile act by or against a belligerent power,
1 The Association shall not cover liabilities, losses, costs or expenses: or any act of terrorism (provided that, in the event of any dispute
a which would not have arisen but for the terms of a contract entered into
as to whether or not, for the purpose of this paragraph (a), an act
by the Member that result in a greater liability than follow from terms of constitutes an act of terrorism, the Association shall in its absolute
contract which are customary in the area where the Vessel operates; discretion determine that dispute and the Association’s decision shall
b which result from, or would not have arisen but for the Member
be final);
having used terms of contract which the Association has prohibited, or b capture, seizure, arrest, restraint or detainment, (barratry and piracy

omitted to use terms which the Association has prescribed. excepted), and the consequences thereof or any attempt thereat;
2 The Association shall not cover liabilities, losses, costs or expenses c mines, torpedoes, bombs, rockets, shells, explosives, or other similar

incurred pursuant to a contract entered into by the Member for the weapons of war, provided always that this exclusion shall not apply to
provision of services by the Vessel (other than a U.S. owned, operated or the use of such weapons, whether as a result of government order or
managed Vessel) which would not have been incurred had that contract with the agreement of the Association, where the reason for such use
contained a division of liability as between the parties which either is the mitigation of liability, cost or expenses which would otherwise
a is in accordance with the premium conditions set out in Appendix I B
fall within the cover given by the Association.
or with the terms of entry; or
Note: Additional cover in respect of war risks is available pursuant to
b has been approved by the Association after the date of entry, and for
Rule 2.1(b) – see Appendix II.
which a variation in the Premium Rating has been agreed.
Rule 42 Nuclear perils
Rule 40 Conduct of the Member The Association shall not cover liabilities, losses, costs or expenses
The Association shall not cover liabilities, losses, costs or expenses arising directly or indirectly caused by or contributed to by or arising from:
or incurred in circumstances where there has been wilful misconduct a ionising radiation from or contamination by radioactivity from any

on the part of the Member, such misconduct being an act intentionally nuclear fuel or from any nuclear waste or from the combustion of
nuclear fuel; or

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b the radioactive, toxic, explosive or other hazardous or contaminating

Rule 45 US owned, operated or managed Vessels
properties of any nuclear installation, reactor or other nuclear 1 The Association shall not cover under the entry of a US owned, operated
assembly or nuclear component thereof; or or managed Vessel any liability, loss, cost or expense of any description
c any weapon of war employing atomic or nuclear fission and/or fusion
howsoever arising out of or relating to:
or other like reaction or radioactive force or matter a any liability resulting from personal injury or bodily injury or

other than liabilities, costs and expenses arising out of the use or occupational disease in respect of any employee including without
presence on board the Vessel of equipment or substances containing limitation “borrowed employees” of the Member that may arise
low-radiation industrial radioactive isotopes customarily used in under any worker’s compensation law, unemployment compensation
the offshore industry, provided always that such equipment and/or or disability benefit laws, United States Longshoremen and
substances are carried, kept and used in accordance with statutory Haborworkers Compensation Act, and any other form of maritime
rules and regulations governing the carriage, custody and use of such employers liability (other than Jones Act, general maritime law
equipment and/or substances. remedies of the United States and any claims under the Death on the
High Seas Act) or any similar laws, and/or by reason of the relationship
Rule 43 Part tonnage of master and servant, nor to any employee of the Member in respect
Where a Vessel is entered with the Association for an insured interest of of injury to or the death of another employee of the Member injured
less than one hundred per cent, the Association shall only be liable to the in the course of such employment; or
Member for such proportion of any liability, loss, cost or expense as the b any liability to the spouse, child, parent, brother or sister, or

insured interest bears to the full one hundred per cent interest. dependent of any employee as a consequence of paragraph (a)
above; or
Rule 44 Deductibles c any liability which any director, officer, partner, principal, employee

1 Save as set out in rule 44.2 below, and unless otherwise agreed, the or stockholder of the Member may have to any employee of the
cover shall be subject to a deductible of USD 10,000 in respect of all Member (other than liability that may arise under Jones Act, general
liabilities, losses, costs and expenses arising under any one entry from maritime law remedies of the United States and any claims under the
any one event. Death on the High Seas Act).
2 To the extent the Vessel is: 2 The exclusions from cover under Rules 45.1(a) and (b) apply:
i US owned, operated or managed, or a whether the Member may be liable as an employer or in any other

ii the liabilities, losses, costs and expenses are made, asserted or capacity; and
enforced in the US, b to any obligation of the Member to share damages with or repay any

the cover shall be subject to a deductible of USD 250,000 unless party who is required to pay damages because of the injury.
otherwise agreed with the Association.

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Chapter 8 Joint Members, Co-assureds and Affiliates 7 The Association agrees to waive any rights of subrogation it may have
against the Protective Co-insured party in respect of liabilities, costs
Rule 46 Cover for Co-assureds and Protective Co-assureds and expenses which are to be borne by the Member under the terms of
1 The Association may agree, subject to the provisions of this Rule 46 and the Charterparty.
to such other terms as may be required to extend the cover afforded 8 Provided that an address for notification has been advised to the
by the Association to the Member to any person who is named in the Association, the Association undertakes to give the Protective Co-insured
Certificate of Entry as a Co-assured. party notice in writing with the same period of notice as to the Member
2 The cover afforded to a Co-assured in categories (a), (b) and (c) below in all cases where the Association terminates the entry. If termination is
shall extend only to liabilities, losses, costs and expenses arising out of attributable to the failure by the Member to pay when due and demanded
operations and/or activities customarily carried on by or at the risk and any premium or other amount due from him to the Association, the
responsibility of the owner of the Vessel: Association undertakes not to exercise such rights without giving the
a any person interested in the operation, management or manning of
Protective Co-assured party thirty (30) days’ notice in writing.
the Vessel;
b the holding company or the beneficial owner of the Member or of any
Rule 47 Cover for Affiliates
Co-assured falling within category a) above; 1 The Association shall extend the cover afforded by the Association to
c any mortgagee of the Vessel.
the Member to any person who is affiliated to or associated with the
3 Where a Member enters into a charterparty or other contract for the Member.
employment of the Vessel (the “Charterparty”), the other party to 2 The cover afforded to an Affiliate shall extend only to claims made or
the Charterparty and its co-ventures, affiliates and associates and any enforced against the Affiliate in respect of any liabilities for which the
other interested parties may, by agreement with the Association, be Member has cover and nothing herein contained shall be construed as
named in the Certificate of Entry as a Protective Co-assured under the entitling an Affiliate to recover any amount which would not have been
Member’s cover. recoverable from the Association by the Member had the claim been
4 The Co-assured and Protective Co-assured shall not be entitled to made or enforced against the Member.
Membership of the Association. 3 Affiliates shall not be entitled to Membership of the Association.
5 The Protective Co-assured party may recover from the Association any
liabilities, costs and expenses which are incurred by it and which Rule 48 Joint Members, Co-assureds, Affiliates and Fleet Entries
a are to be borne by the Member under the terms of the Charterparty;
1 Joint Members and Co-assureds insured on any one entry shall be jointly
and and severally liable for all sums due to the Association in respect of such
b would, if borne by the Member, be recoverable by the Member from
entry. Members, Joint Members and Co-assureds insured on any entry
the Association. in respect of one or more Vessel(s) forming part of a Fleet Entry shall be
6 The Protective Co-assured party may not recover from the Association jointly and severally liable in respect of all sums due to the Association
any liabilities, costs and expenses which are to be borne by the in respect of any or all Vessels forming part of the Fleet Entry. For the
Protective Co-assured party under the terms of the Charterparty. purpose of this section a Fleet Entry shall mean the entry of more than
one Vessel by one or more Members on the basis that those Vessels shall
be treated together as a fleet.

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2 Any payment by the Association to one of the Joint Members, Chapter 9 Claims
Co-assureds or Affiliates shall fully discharge the obligations of the
Association in respect of such payment. Rule 49 Time-bar
3 Any communication by the Association to one Joint Member shall be 1 The Member shall have no right to compensation unless he has given
deemed to be communication to all. notice to the Association of any event which may give rise to a claim on
4 The conduct or omission of one Joint Member which under these Rules the Association within six months of his becoming aware of it.
would constitute a breach of the contract of insurance, shall be deemed 2 The Member’s claim for compensation becomes time-barred three
as the conduct or omission of all the Joint Members. years from the date on which he became aware of his claim and of the
5 To the extent that the Association has indemnified a Co-assured or an circumstances that determine its extent.
Affiliate in respect of a claim, it shall not be under any further liability and 3 Where a time-bar has not taken effect earlier, the Member’s claim for
shall not make any further payment to any person whatsoever, including compensation becomes time-barred ten years from the occurrence of
the Member, in respect of that claim. the event unless litigation or a general average adjustment is in progress,
when the claim becomes time-barred one year after the issue of the final
judgment or adjustment.

Rule 50 Obligations with respect to claims

1 A Member shall:
a promptly notify the Association of any event which may give rise to a

claim upon the Association, and of any formal enquiry into a loss or
casualty involving the Vessel;
b upon the occurrence of any event which may give rise to a claim

upon the Association, take and continue to take all such steps as may
be reasonable, including the preservation of any right of recourse
against a third party, for the purpose of averting or minimising any
liability, loss, cost or expense in respect whereof he may be insured by
the Association;
c notify and, if possible, consult the Association prior to taking any

action as described in Rule 50.1(b) above;
d promptly provide the Association with all documents and information

which may be relevant to such event and which are required to enable
the Association to determine whether the event is covered according
to these Rules;
e allow the Association or its appointees to interview any person who

in the opinion of the Association may have knowledge relevant to
the event;

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f not without the prior consent of the Association admit liability for or
3 The Association shall not be liable to pay interest on any sums due from
settle any claim for which he may be insured by the Association. it to the Member.
2 If a Member commits a breach of any of these obligations
a the Association may reject any claim, or reduce the sum payable, in
Rule 52 Recoveries from third parties
relation to such event; and 1 When the Member has a right of recourse against a third party for any
b the Member shall reimburse to the Association such part of any costs
liability, loss, cost or expense covered by the Association, the Association
or expenses incurred by the Association in relation to such event as shall be subrogated to the Member’s right of recourse upon payment
the Association shall determine. by the Association to the Member in respect of the liability, loss, cost
3 The Association shall have the right if it so decides to control or direct or expense.
the conduct of any claim or legal or other proceedings relating to any 2 Where the Association has made a payment in respect of any liability,
liability, loss, cost or expense in respect whereof the Member is or may loss, cost or expense to or on behalf of a Member, the whole of any
be insured, in whole or in part, and to instruct, on behalf of the Member, recovery from a third party in respect of that liability, loss, cost or
lawyers and other advisers and experts to assist and to require the expense shall be credited and paid to the Association up to an amount
Member to settle, compromise or otherwise dispose of such claim or corresponding to the sum paid by the Association together with any
proceedings in such manner and upon such terms as the Association sees interest element on that sum comprised in the recovery, provided
fit, provided that no actions or directions of the Association shall imply however, that
an obligation to cover the liability, loss, cost or expense. If the Member a where because of a deductible in his terms of entry the Member

does not settle, compromise or dispose of a claim or of proceedings has contributed towards a liability, loss, cost or expense any such
after being required to do so by the Association, any recovery by the interest element shall be apportioned between the Member and the
Member from the Association in respect of such claim or proceedings Association taking into account the payments made by each and the
shall be limited to the amount he would have recovered if he had acted dates on which those payments were made; and
as required by the Association. b the Association shall retain the whole amount of any award of costs in

4 A Member shall, in respect of a dispute which falls under the cover, for respect of its own handling of any case.
his own account, obtain information, make calculations, attend meetings
and otherwise provide assistance, where such work can be performed Rule 53 Discharge
by him or by persons employed by him or regularly engaged by him to Payment of a claim by the Association to a manager of the Vessel or to
perform such services. any other agent of the Member shall fully discharge the Association’s
liability to the Member.
Rule 51 Exclusion of liability
1 The Association shall not be liable for errors or omissions in the handling Rule 54 Currency of payments
of a case which may be committed by the Association’s employees or by 1 The Association shall make all payments for liabilities, losses, costs
lawyers, advisers or other experts engaged by the Association on behalf and expenses covered by the Association in the currency in which the
of the Member. Member’s Premium Rating is calculated (the “premium currency”).
2 The Association shall not be liable for monies which are lost, having 2 Where the Member has made a payment in respect of any liability, loss,
been collected by persons engaged by the Association on behalf of the cost or expense which is covered by the Association in a currency other
Member, or entrusted to such persons.

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than the premium currency, that payment shall be converted into the a the member of the Crew or dependent has no enforceable right

premium currency at the rate of exchange ruling on the day payment was of recovery against any other party and would otherwise be
made by the Member. uncompensated;
3 Where a deductible under Rule 44 is expressed in a currency other b the amount payable by the Association shall under no circumstances

than the premium currency, the deductible shall be converted into the exceed the amount which the Member would otherwise have
premium currency at the rate of exchange ruling on the day payment was been able to recover from the Association under the Rules and the
made by the Member. Member’s terms of entry; and
4 Where a payment in respect of a liability, loss, cost or expense is due c with regard to liability, costs and expenses falling within Rule 18.2

at a fixed time and the Member without valid reason neglects to make above any payment made by the Association shall be made as agent
payment when due, the Member shall not be entitled to compensation at only of the Member, and the Member shall be liable to reimburse the
a higher rate of exchange than that ruling on the day on which payment Association for the full amount of such payment.
was due.
5 All rates of exchange for the purposes of this Rule 54 shall be as Rule 56 Payments and undertakings to third parties
conclusively certified by the Association. 1 The Association shall be under no obligation to provide any guarantee,
certificate, bail or other security or undertaking (“security”) for or on
Rule 55 Payment first by Member behalf of a Member, or to pay the costs of such provision.
1 Unless the Association shall in its absolute discretion otherwise 2 The Association may at its discretion provide security or pay the cost of
determine, it is a condition precedent to a Member’s right to recover such provision in relation to liabilities within the scope of a Member’s
from the Association in respect of any liability, loss, cost or expense that cover, and may recover any costs incurred thereby from the Member.
he shall first have discharged or paid the same. 3 The Member shall indemnify the Association for any liability the
2 The Association shall not be obliged to compensate a Member for a Association may incur to a third party under or in connection with any
payment made to a third party unless the Member’s liability to make that security issued by the Association for or on behalf of the Member and for
payment has been determined by: any payment made by the Association to a third party for or on behalf
a a final judgement or order of a competent court; or
of the Member (irrespective of whether that liability was incurred, or that
b a final arbitration award (if settlement of the dispute by arbitration was
payment was made during or after the period of the Member’s insurance
agreed upon before the dispute arose, or was, with the consent of the by the Association), save to the extent that, had that third party pursued
Association, agreed upon subsequently); or its claims in respect of the relevant liability against the Member rather
c a final settlement of the dispute approved by the Association.
than against the Association, or had that payment been made by the
3 Notwithstanding sections 1 and 2 above, where a Member has failed to Member rather than by the Association, the Member would have been
discharge a legal liability to pay damages or compensation for personal entitled to reimbursement pursuant to these Rules.
injury, illness or death of a member of the Crew or in respect of repatriation 4 The Protective Co-assured shall indemnify the Association for any
under any statutory enactment giving effect to the 2006 Maritime liability incurred or any payment made by the Association to a third party
Labour Convention as amended or any materially similar enactment the which are to be borne by the Protective Co-assured under the terms of
Association shall discharge or pay such claim on the Member’s behalf the Charterparty.
directly to such member of the Crew or dependent thereof, provided
always that;

174 175
Rules for mobile offshore units Rules for mobile offshore units

Chapter 10 Assignment, law, arbitration and amendments to Rules Rule 60 Amendments to the Rules
1 The Rules may be amended at any time with effect from the beginning
Rule 57 Assignment of the following Policy Year, and the Association shall, where practicable,
1 The Member shall not assign or otherwise transfer its rights under its give notice of amendments to Members before 20th January.
contract of insurance with the Association or otherwise arising pursuant 2 If, in the determination of the Association, a substantial alteration of
to these Rules, save as provided in Rule 57.2. risk occurs, as a result of new legislation or for any other reason, the
2 The Association may, in its absolute discretion, consent to an assignment Association may make such amendments to the Rules as the situation
or transfer by of a Member of its rights as referred to in Rule 57.1, subject may require, giving (save in the case where the amendment involves only
to such terms and conditions as the Association deems fit and subject the making available of additional cover to the Member) at least two
to the Association’s right to deduct from any sum due or to become months’ notice of the amendment.
due from the Association to any assignee or transferee of the Member’s 3 When war has broken out or, in the determination of the Association
rights such amount as the Association may estimate to be sufficient threatens to break out, the Association may decide that amendments
to discharge any existing or anticipated liability of the Member to shall come into force at shorter notice.
the Association.

Rule 58 Governing law

The legal relationship between the Association and the Member shall be
governed by these Rules and Norwegian law, but the provisions of the
Insurance Contracts Act of 16th June 1989 shall not apply.

Rule 59 Arbitration
Unless otherwise agreed, disputes between the Association and a
Member or a former Member or any other person arising out of the
contract of insurance or these Rules shall be resolved by arbitration. Each
party shall nominate one arbitrator and those so nominated shall appoint
an Umpire. If the arbitrators cannot agree on an Umpire or a party fails
to nominate his arbitrator, the nomination shall be made by the Chief
Justice of the Oslo City Court. Reasons shall be given for the award.
Arbitration proceedings shall take place in Oslo.

176 177
Rules for mobile offshore units Appendices Rules for mobile offshore units Appendices

Appendices B Terms of Contract (Rule 39.2)

Appendix I Premium conditions 1 Introduction

a The premium conditions set out in this paragraph B are applicable for

A Premium adjustments for renewals and termination (Rule 10) all Vessels except US owned, operated or managed Vessels.
b The Premium Rating agreed with the Member, and the cover available

1 Premium deferral for renewal to the Member are subject to any contract entered into by the Member
a When a Vessel is entered for a Policy Year, the Association and the
for the provision of services by the Vessel containing a division of
Member may agree that a proportion of the premium payable for liability which is either
that Policy Year shall be deferred and shall only be payable in the i in accordance with these premium conditions or with the terms of
circumstances described in paragraph A.1(b). entry; or
b If the Member terminates the entry pursuant to Rule 14 at the end
ii approved by the Association after the date of entry, and for which a
of the Policy Year referred to in paragraph A.1(a), the deferred variation in the Premium Rating is agreed.
proportion of the premium payable shall become payable to the c For the purpose of these premium conditions:

Association on demand. The Member shall have no other liability i “Operator” means the party chartering the Vessel by way of a
for payment of the deferred proportion, which shall be deemed to charterparty or other form of contract, including any other party having
be cancelled on the entry being renewed for the next subsequent an owning interest in the field being serviced by the Vessel;
Policy Year or being terminated pursuant to Rule 15 or ceasing under ii “Operator Group” means the Operator their respective co-venturers,
Rule 16. its and their parents and Affiliates together with the other contractors
of Operator;
2 Additional premium on termination iii a Vessel shall be deemed to be an accommodation vessel if the
On any termination of an entry under Rule 14 the Association may levy Association so determines.
an additional premium determined by the Association, subject to the
following: 2 Guidelines indicating how various contractual arrangements entered into
i where the loss ratio during the four year period ending on the date of by the Member will influence Premium Rating. Except to the extent set
termination, or the period of entry, if less than four years, is between out specifically in relevant cases below, the following divisions of liability
51 and 75 per cent, the additional premium shall not exceed five per in contracts entered into are acceptable within the standard cover and
cent of the premium payable in the last year of entry; Premium Rating:
ii where the loss ratio during the four year period ending on the date a Where the Member is liable for the injury, illness or death of his own

of termination, or the period of entry, if less than four years, exceeds employees and the employees of any of his sub-contractors.
75 per cent, the additional premium shall not exceed ten per cent of b Where the Member is liable for loss of or damage to his own property

the premium payable in the last year of entry. and property belonging to any of his sub-contractors, provided that
cover is conditional upon the Member obtaining a hold harmless
agreement from any of his sub-contractors in respect of liability for the
sub-contractor’s property in the care, custody or control of the Member,
onboard or outside the Vessel.

178 179
Rules for mobile offshore units Appendices Rules for mobile offshore units Appendices

c Where the Member is liable for the injury, illness or death of the
Appendix II Additional insurances – War risks
Operator’s employees, or the employees of the Operator Group,
subject as follows The Association has arranged additional War Risk P&I Cover for the
Note: In the event that the Member obtains a hold harmless undertaking benefit of Members insured for P&I risks pursuant to the Rules for P&I
from the Operator in respect of the Operator’s employees, there shall be cover for Mobile Offshore Units. The terms and conditions for this
a rebate of 5 per cent of premium on the first USD 50 million of cover. additional War Risk P&I Cover are as follows:
In the event the Member obtains a hold harmless undertaking from the
Operator in respect of the employees of the “Operator’s Group”, there War Risks P&I Cover for Mobile Offshore Units (the “War Risks

shall be a rebate of 10 per cent of premium on the first USD 50 million P&I Cover”)
of cover. The War Risks P&I cover afforded is subject to the Rules for P&I cover for
i In the case of accommodation vessels (including flotels), where Mobile Offshore Units (the “Rules”), save that the war risks exclusion in
the Member is liable in tort for the injury, illness or death of the Rule 41 shall not apply. The War Risk P&I Cover shall apply to liabilities,
accommodees of the Operator Group, provided that the number of losses, costs and expenses as set out in Chapter 6 of the Rules caused by
such accommodees at risk does not exceed 15 persons. war risks as defined in Rule 41. Such cover will include liability or loss in
Note: In the event of the number of such employees exceeding 15 excess of the amounts recoverable under the Vessel’s Hull and Machinery
persons, cover is available for each excess tranche of up to 50 persons at and/or Crew/Marine War Risks Insurance and any P&I inclusion clauses
an additional premium of 15 per cent on the first USD 50 million of cover, applicable thereto, but subject always to any special terms of entry
but subject always to a maximum additional premium of 50 per cent. agreed between the Association and the individual Member and set out
ii In the case of accommodation vessels (including flotels), where the in the relevant Vessel’s Certificate of Entry. The maximum limit of cover is
Member is strictly liable in contract for the injury, illness or death of equal to the maximum policy limit for P&I risk.
accommodees of the Operator Group, provided that the number of
such accommodees at risk does not exceed 15 persons. Notice of Cancellation – Automatic Termination of Cover

Note: In the event of the number of such employees exceeding 15 The War Risks P&I cover is subject to the Institute Notice of Cancellation,
persons, cover is available for each excess tranche of up to 10 persons at Automatic Termination of Cover and War and Nuclear Exclusions Clause -
an additional premium of 5 per cent on the first USD 50 million of cover, Hulls etc. CL359 dated 1 January 1995.
but subject always to a maximum additional premium of 100 per cent.
d Where the Member is liable in tort for loss of or damage to property

of the Operator’s Group, provided that cover is conditional upon the
Member obtaining a hold harmless agreement in respect of liability for
such property in the care, custody or control of the Member, on board
or outside the Vessel.

180 181
Index
 Index

R: Rules for P&I and Defence cover for ships and other floating structures
M: Rules for P&I cover for mobile offshore units

A B
Additional insurances R 2.2 Bill of lading
Advance Call – contract of carriage R 65.a
– cesser, and R 26.1 – delivery without production of R 34.1.i
– defence cover, and R 68.3 Blockade R 74
– deferred call, and R 12.2 Bunkers
– determination of R 12.1, R 14 – diversion expenses R 31
– definition of R1 – loss of, exclusion for R 63.1.b
– laid-up returns, and R 22
– payment of R 20 C
– release call, and R 15 Cargo
– repayment of  R 17 – damage to or loss of R 34
– supplementary call, and R 13 – disputes in connection with R 65.b
– termination, and R 24.2(b) – extraordinary cost of discharge R 35
Affiliates R 1, M 1 – rejected R 35
– cover for  R 78, M 47 – terms of carriage R 34.1.ii, R 55
– joint members and R 79, M 48 Cesser R 25, M 16
– Membership and R 78.2, M 47.3 – effect of R 26, M 17
Alteration of Risk R 7, M 7 Charterparty
Amendments to the Rules R 92, M 60 – cancellation of,
Arbitration R 91, M 59 – exclusion for loss by R 63.1.g, M 36.1.d
Assignment R 89, M 57 – disputes concerning R 65

185
Index Index

Classification D E G
– cessation of, Deductibles R 76, M 44 Effects General average R 41
– effect on cover R 25.2.h, M 16.2.g Defence cover R 1.1 – crew, belonging to R 27.1.f, M 18.f – cargo’s proportion of R 41.a
– requirement of R 8, M 8 – risks insured under R 65, R 66 – passengers and other, – disputes in connection with R 65.d
Clean-up costs M 34 – limitations on R 67, R 68, R 69, R 70 – belonging to R 28.a, R 29.1 – ship’s proportion R 41.b
Co-assured R 1, M 1 Deferred Call Enquiry expenses R 45, M 28
– cover for R 78, M 46 – definition of R 1.1 Equipment on ship H
– disputes between R 68.2 – determination of  R 12.2 – exclusion of liability Hague-Visby Rules
– joint Members and R 79, M 48 – failure to pay R 24.2.b, R 20.7 – for damage to R 63.1.b, M 36.1.a – cargo liability, effect on R 34.1.ii
– limitation R 51, M 30 – payment of R 20.4, R 20.5 Exchange – Members’ own cargo, and R 50.b
– Membership and R 78.2, M 46.4 – release call, and R 15 – rates of R 86, M 54 Hazardous operation R 74
Collision R 36, M 20 Definitions R 1, M I Extra handling costs R 35 Hole
Combined transport R 57 Delay – loss of M 33
Confiscation of ship R 49 – cargo R 34.2 F Hull policies R 1, M 1
Contracts – exclusion of liability for R 63.2 Fines R 47 – collision excess R 36.1.i, M 20.1.a
– defence cover and R 65, R 66 – passenger R 28.c – pollution and R 38.1.a, M 22 – disputes under R 65.j
– requirements Deportation R 27.2 Fixed and floating objects R 37, M 21 – FFO cover and R 37, M 21,
– as to terms of R 27, R 34, R 55, R 57, Detention R 63.l.h Fraud R 72, M 40 – general average and R 41.b
 M 18, M 39 Deviation R 34.1.xi – termination R 24.2.a, M 15.2.a – life salvage and R 33
Consortium R 1.1, R 52, Appendix II.5 Disclosure Freight – limitation of cover
Contraband R 74 – Members’ duty of R 6, M 6 – disputes in connection with R 65.a – in respect of R 71.1.a, M 38.a
Crew R 27, M 18 – termination when the Member has – exclusion for loss R 63.1.d
– death of or injury to R 27.1.c, M 18.c – neglected his duty of R 24.2.c, M 15.2.c I
– fines imposed on R 47.1 Disputes with the Association Illness
– quarantine of R 48  R 90, R 91, M 58, M 59 – crew, of R 27, M 18
Crew agreement R 27, M 18 Disinfection R 48 – diversion due to R 31
Diversion expenses R 31 – others than crew
Diving bells R 61 – and passengers, of R 29, M 19
Double insurance R 71, M 38 – passengers R 28
Dredgers R 59
Drilling vessels R 60

186 187
Index Index

Injury Limitation of cover M P

– crew, to R 27, M 18 – accommodation vessels R 60.1 Management Passengers R 28
– diversion for R 31 – affiliates, and R 78, M 47 – change of R 25.2.f, M 16.2.e – disputes relating to R 65.c
– others than crew – cargo liability R 34.1 Maritime Labour Convention 2006 – limitation R 53, Appendix IV
– and passengers, of R 29, M 19 – charterer R 52  R 27.3, R 87.3, Appendix IV. 3, – through transport R 57
– passengers R 28 – classification R 8, M 8  M 18.2, M 55.3 Payment R 20, M 11
Insolvency R 77.b, M 36.1.e – clean-up costs M 34 Market value – first by Member,
Insurance Premium Tax R 1.1, R 20.6, – co-assured and R 78, M 46 – relevance to cover R 71.1.a, M 38.a – as condition of recovery R 87, M 55
 R 20A, M 1.1, M 11.3, M 11A – conduct of Member R 72, M 40 Membership – joint Member, co-assured
Insurance year – contract, unusual terms of R 55, M 39 – affiliates R 78.2, M 47.3 – and affiliates, to R 79.2, M 48.2
– closing of R 16 – defence R 70 – cesser of R 25, R 26, M 16, M 17 Pollution R 38, M 22
Interest – deviation R 34.1.x – co-assured R 78.2, M 46.4 – limitation of cover in respect of R 53
– sums due to – divers R 61 – commencement of R 4, M 4 Premium
– the Association R 20.7, M 11.4 – drilling vessels R 60 – termination by – advance R 12
– sums due to – general monetary loss R 63.2, M 36.2 – the Association R 24, R 26, M 15, M 17 – Defence cover and unpaid R 68
– the Member R 83.3, M 51.3 – hole, well and reservoir, loss of M 33 – termination by – determination of
– limitation – the Member R 23, R 26, M 14, M 17 Supplementary Calls R 14
J – of liability R 51, R 52, R 53, M 30 Mobile offshore units R 64 – failure to pay R 24.2.b, M 15.2.b
Joint members R 1, M 1 – nuclear perils R 73, M 42 – Mobile Offshore Units M 10
– communications to R 79.3, M 48.3 – oil pollution R 53 N – overspill calls R 18
– conduct of R 79.4, M 48.4 – other excluded losses R 63, M 36 Non-marine personnel R 56 – payment of R 20, M 11
– disputes between R 68.2 – other insurance R 71, M 38 Notification – return of R 17
– liability of R 79.1, M 48.1 – other restrictions M 30.2 – co-assured, to R 79.3, M 48.3 – setting of premium ratings R 10
– payment to R 79.2, M 48.2 – specialist operations R 59 – event, of R 82.1, M 50.1 – supplementary calls R 13
– submarines R 61 – joint Members, to R 79.3, M 48.3 – variation of R 11
L – through transport R 57 Nuclear perils R 73, M 42 Privity R 72, M 40
Laid-up returns R 22, M 13 – towage R 43 Property
Law – unlawful or hazardous operation R 74 O – loss of or damage to R 39, M 23
– governing the Rules R 90, M 58 – unpaid sums R 68 Obstruction – Members’ own R 50
Legal costs – war risk R 58, M 41 – removal of ship as R 40, M 24 Protective co-insurance R 78.5, M 46
– P&I cover and R 44, M 27 – waste incineration Oil pollution, see pollution
– recovered R 84, M 52 – and disposal operation R 62 Overspill Call R 18
– security for R 88, M 56 – well, damage to M 33 Ownership
Limitation of liability R 51, M 30 – change of R 25.2.e, M 16.2.d

188 189
Index Index

Q Ship T V
Quarantine R 48 – building of R 66.a Termination Valuable cargo
– classification of R 8, M 8 – Association’s right to R 24, M 15 – limitation R 34.1.vi
R – collision of R 36, M 20 – effect of R 26, M 17 Valuables R 27.1, R 28, R 29.1, M 18
Radioactivity – damage to R 63.1.a, M 36.1.a – Member’s right to R 23, M14
– exclusion of cover R 73, M 42 – FFO Collision with R 37, M 21 Through transport R 57 W
Refugees R 32 – management of R 25.2.f, M 16.2.e Time-bar R 81, M 49 Wages R 27, M 18
Release Calls R 15 – ownership of R 25.2.e, M 16.2.d Time of occurrence R 80 War risks R 58, M 41
Requisition – purchase of R 66.a Towage R 43 Waybills R 34.1.i
– cover, effect on R 25.2.i, M 16.2.h – requisition of R 25.2.i, M 16.2.h – limitation R 43 Withdrawal
Reserves  R 19 – survey of R 9, M 9 – Defence cover R 69
Reservoir – total loss of R 25.2.a, M 16.2.a U Wreck
– loss of M 33 Social insurance R 71.1.c, M 38.c Unlawful trade R 74 – removal of R 40, M 24
Stores of ship – cessation of cover R 25.2.j, M 16.2.i – sale of interest in R 40, M 24
S – diversion and R 31
Salvage R 42 – exclusion of
– dispute in connection with R 65.h – liability for R 63.1.b, M 36.1.a
– exclusion for R 63.1.f Stowaways R 32
– expenses of, under LOF 90 R 42.b Submarines R 61
– life R 33 Subrogation R 84, M 52
Savings Substitutes
– made by Member R 54, M 37 – crew, for a member of R 27, M 18
Security R 88, M 56 Supplementary Call R 13
Set-off – determination of R 14
– Association’s right to R 21.1, M 12.1 – Defence cover and R 68
– Member’s right to R 21.2, M 12.2 – failure to pay R 24.2.b, R 20.7
– release R 15
Survey R 9, M 9

190 191
Standard Form Letters of Indemnity
 Standard Form Letters of Indemnity

BILLS OF LADING – DELIVERY OF CARGO

STANDARD FORMS OF LETTERS OF INDEMNITY TO BE GIVEN IN RETURN FOR:

A Delivery of cargo without production of the original bill of lading

B Delivery of cargo at a port other than that stated in the bill of lading
C Delivery of cargo at a port other than that stated in the bill of lading and without
production of the original bill of lading

In December 1998, the International Group of P&I Clubs issued a Circular to Members (see
Gard Member Circular No 9/98) recommending revised wordings of the standard form
Letters of Indemnity for use by Members in circumstances where they are requested to
deliver cargo without production of the original bill of lading and/or to deliver cargo at a
port other than that stated in the bill of lading.

As a result of comments from shipowners and shipowners’ organisations, a further review

of the wordings was undertaken and further modifications to the standard wordings were
made. Moreover, discussions took place between the International Group and the British
Bankers Association (BBA) and a separate standard wording was agreed on the basis of
which banks members of the BBA would be prepared in principle to join in the Letters of
Indemnity while, through the auspices of the International Chamber of Commerce, the BBA
would endeavour to promote this agreed standard wording within the international business
community.

In consequence of the agreement reached with the BBA, the three recommended standard
form Letters of Indemnity are issued in two versions: INT GROUP A (for delivery of cargo
without production of the original bill of lading), INT GROUP B (for delivery of cargo at a
port other than that stated in the bill of lading against production of at least one original bill
of lading), and INT GROUP C (for delivery of cargo at a port other than that stated in the bill
of lading and without production of the original bill of lading) for use when the commercial
party requesting delivery (the “Requestor”) will alone be signing the Letter of Indemnity, and
INT GROUP AA, INT GROUP BB and INT GROUP CC for use when a bank will be joining in
the Letter of Indemnity and which forms incorporate, in addition to the same indemnities
given by the Requestor under INT GROUP A, B and C, the separate standard wording
agreed with the banks.

195
Standard Form Letters of Indemnity Standard Form Letters of Indemnity

The principal features of the wordings are explained below. and request the shipowner to accommodate his request), the liability of the Requestor will
continue until it can be established to the satisfaction of the shipowner that no such claim
Financial Limit will be made.
The liability of the Requestor should generally not be limited. However, where a bank is to
join in the Letter of Indemnity it will generally insist upon a fixed monetary limit. The amount Accordingly, unless the shipowner is satisfied that no claim of this nature will be made, the
of the limit must be a matter for negotiation in order that it properly reflects the potential liability of the bank under INT GROUP BB and CC will be as described under INT GROUP AA
exposure in the particular circumstances, taking into account, inter alia, the sound market above.
value of the cargo at the time of delivery, but it is recommended that the limit should be a
minimum of 200% of the sound market value of the cargo at the time of delivery. Scope of security
The Requestor is obliged to provide bail or other security not only to prevent or lift the
Duration of security arrest of the ship the subject matter of the indemnity, but also any other ship in the same
Under INT GROUP A and AA, the liability of the Requestor (and, hence, the bank under AA) or associated ownership, management or control. In addition, the Requestor is obliged to
terminates upon the delivery of all original bills of lading to the shipowner. If the original provide bail or other security to prevent interference in the use or trading of the ship, such
bills of lading are not delivered to the shipowner, the Requestor’s liability under the Letter of as a caveat being entered on the ship’s registry to prevent the sale of the ship the subject
Indemnity continues. matter of the indemnity.

Subject to delivery of all original bills of lading as stated, and to the two exceptions Where a bank joins in the Letter of Indemnity it will generally not agree to provide bail or
described below, the bank’s liability under INT GROUP AA is for an initial period of six years, other security. However, the bank will pay any amount up to the limit of its liability under the
but which is automatically renewable from time to time for further periods of two years at Letter of Indemnity in order to enable the shipowner to arrange the provision of security if
the request of the shipowner. The exceptions are (1) that, rather than agree to an extension the Requestor fails to provide bail or other security.
of its liability, the bank has the option of discharging its liability by paying the maximum
amount payable under its indemnity and (2) that, in the event of a demand being made by Tankers
the shipowner to the bank for payment under the indemnity before the termination date, A provision designed to give greater security to tankers has been incorporated, whereby
or in the event of the bank being notified by the shipowner of the commencement of legal requested delivery of a bulk liquid or gas cargo to a terminal or facility, or to another ship,
proceedings against the shipowner before the termination date, the liability of the bank will lighter or barge is to be deemed to be delivery to the party to whom delivery has been
continue until the demand has been paid or the legal proceedings have been concluded, requested.
the bank, if called upon so to do, paying the amount of any judgment or settlement payable
by the shipowner if the Requestor has failed to do so. …………

Under INT GROUP B, C, BB and CC, since it is possible for a claim to be pursued against a Members are reminded that, unless the Association’s Board of Directors otherwise
shipowner for delivering cargo at a port other than that stated in the bill of lading despite determines, there is no cover in respect of liabilities arising out of the delivery of cargo
cargo being delivered against production of the original bill of lading, or all original bills of without production of the original bill of lading and/or delivery at a port other than that
lading being subsequently delivered to the shipowner (in particular, in circumstances where a stated in the bill of lading and that, in such circumstances, Members are strongly advised to
charterer may require a cargo owner to receive his cargo at such other port against his wishes ensure that they are fully satisfied with the financial standing and authority of those who are
to issue and sign these indemnities.

196 197
Standard Form Letters of Indemnity Standard Form Letters of Indemnity – Overview

The standard form Letters of Indemnity are designed to cover a broad range of trades Standard Form Letters of Indemnity Page
and operations, and Members may wish to modify the standard forms to suit particular
requirements. However, in this event, it must be appreciated that if a bank is to join in the Int group a
Letter of Indemnity there may be limited scope for amendment, and that the Requestor’s Standard form letter of indemnity to be given in return for delivering cargo
bank will have to be consulted if any material change is contemplated. The Managers will be without production of the original bill of lading 200-201
pleased to advise Members regarding any proposed modification.
Int group aa
Finally, it is not uncommon for Members to be requested by charterers to agree clauses Standard form letter of indemnity to be given in return for delivering cargo
in charter parties which expressly provide for the delivery of cargo without production of without production of the original bill of lading incorporating a bank’s
bills of lading and/or at ports other than those stated in the bills of lading against Letters of agreement to join in the letter of indemnity 202-205
Indemnity. Members are strongly advised not to accept such clauses and it is recommended
that Members seek advice from the Managers before responding to such requests. Int group b
Standard form letter of indemnity to be given in return for delivering cargo
at a port other than that stated in the bill of lading 206-207

Int group bb
Standard form letter of indemnity to be given in return for delivering cargo
at a port other than that stated in the bill of lading incorporating a bank’s
agreement to join in the letter of indemnity 208-211

Int group c
Standard form letter of indemnity to be given in return for delivering cargo
at a port other than that stated in the bill of lading and without production
of the original bill of lading 212-213

Int group cc
Standard form letter of indemnity to be given in return for delivering cargo
at a port other than that stated in the bill of lading and without production
of the original bill of lading incorporating a bank’s agreement to join in
the letter of indemnity 214-217

198 199
Standard Form Letters of Indemnity – Int Group A Standard Form Letters of Indemnity – Int Group A

INT GROUP A 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
or property in the same or associated ownership, management or control, should be
Standard form letter of indemnity to be given in return for delivering cargo without arrested or detained or should the arrest or detention thereof be threatened, or should
production of the original bill of lading there be any interference in the use or trading of the vessel (whether by virtue of a caveat
being entered on the ship’s registry or otherwise howsoever), to provide on demand such
To: [insert name of Owners] [insert date] bail or other security as may be required to prevent such arrest or detention or to secure
The Owners of the [insert name of ship] the release of such ship or property or to remove such interference and to indemnify you
[insert address] in respect of any liability, loss, damage or expense caused by such arrest or detention
or threatened arrest or detention or such interference, whether or not such arrest or
Dear Sirs detention or threatened arrest or detention or such interference may be justified.
4 If the place at which we have asked you to make delivery is a bulk liquid or gas terminal
Ship: [insert name of ship] or facility, or another ship, lighter or barge, then delivery to such terminal, facility, ship,
Voyage: [insert load and discharge ports as stated in the bill of lading] lighter or barge shall be deemed to be delivery to the party to whom we have requested
Cargo: [insert description of cargo] you to make such delivery.
Bill of lading: [insert identification numbers, date and place of issue] 5 As soon as all original bills of lading for the above cargo shall have come into our
possession, to deliver the same to you, or otherwise to cause all original bills of lading to
The above cargo was shipped on the above ship by [insert name of shipper] and consigned be delivered to you, whereupon our liability hereunder shall cease.
to [insert name of consignee or party to whose order the bill of lading is made out, as 6 The liability of each and every person under this indemnity shall be joint and several and
appropriate] for delivery at the port of [insert name of discharge port stated in the bill shall not be conditional upon your proceeding first against any person, whether or not
of lading] but the bill of lading has not arrived and we, [insert name of party requesting such person is party to or liable under this indemnity.
delivery], hereby request you to deliver the said cargo to [insert name of party to whom 7 This indemnity shall be governed by and construed in accordance with English law and
delivery is to be made] or to such party as you believe to be or to represent [insert name each and every person liable under this indemnity shall at your request submit to the
of party to whom delivery is to be made] or to be acting on behalf of [insert name of party jurisdiction of the High Court of Justice of England.
to whom delivery is to be made] at [insert place where delivery is to be made] without
production of the original bill of lading. Yours faithfully
For and on behalf of [insert name of Requestor]
In consideration of your complying with our above request, we hereby agree as follows:- The Requestor
…………………………………
1 To indemnify you, your servants and agents and to hold all of you harmless in respect Signature
of any liability, loss, damage or expense of whatsoever nature which you may sustain by
reason of delivering the cargo in accordance with our request.
2 In the event of any proceedings being commenced against you or any of your servants or
agents in connection with the delivery of the cargo as aforesaid, to provide you or them
on demand with sufficient funds to defend the same.

200 201
Standard Form Letters of Indemnity – Int Group AA Standard Form Letters of Indemnity – Int Group AA

INT GROUP AA 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
or property in the same or associated ownership, management or control, should be
Standard form letter of indemnity to be given in return for delivering cargo without arrested or detained or should the arrest or detention thereof be threatened, or should
production of the original bill of lading incorporating a bank’s agreement to join in the there be any interference in the use or trading of the vessel (whether by virtue of a caveat
letter of indemnity being entered on the ship’s registry or otherwise howsoever), to provide on demand such
bail or other security as may be required to prevent such arrest or detention or to secure
To: [insert name of Owners] [insert date] the release of such ship or property or to remove such interference and to indemnify you
The Owners of the [insert name of ship] in respect of any liability, loss, damage or expense caused by such arrest or detention
[insert address] or threatened arrest or detention or such interference, whether or not such arrest or
detention or threatened arrest or detention or such interference may be justified.
Dear Sirs 4 If the place at which we have asked you to make delivery is a bulk liquid or gas terminal
or facility, or another ship, lighter or barge, then delivery to such terminal, facility, ship,
Ship: [insert name of ship] lighter or barge shall be deemed to be delivery to the party to whom we have requested
Voyage: [insert load and discharge ports as stated in the bill of lading] you to make such delivery.
Cargo: [insert description of cargo] 5 As soon as all original bills of lading for the above cargo shall have come into our
Bill of lading: [insert identification numbers, date and place of issue] possession, to deliver the same to you, or otherwise to cause all original bills of lading to
be delivered to you, whereupon our liability hereunder shall cease.
The above cargo was shipped on the above ship by [insert name of shipper] and consigned 6 The liability of each and every person under this indemnity shall be joint and several and
to [insert name of consignee or party to whose order the bill of lading is made out, as shall not be conditional upon your proceeding first against any person, whether or not
appropriate] for delivery at the port of [insert name of discharge port stated in the bill such person is party to or liable under this indemnity.
of lading] but the bill of lading has not arrived and we, [insert name of party requesting 7 This indemnity shall be governed by and construed in accordance with English law and
delivery], hereby request you to deliver the said cargo to [insert name of party to whom each and every person liable under this indemnity shall at your request submit to the
delivery is to be made] or to such party as you believe to be or to represent [insert name jurisdiction of the High Court of Justice of England.
of party to whom delivery is to be made] or to be acting on behalf of [insert name of party
to whom delivery is to be made]at [insert place where delivery is to be made] without Yours faithfully
production of the original bill of lading. For and on behalf of [insert name of Requestor]
The Requestor
In consideration of your complying with our above request, we hereby agree as follows:- …………………………………
Signature
1 To indemnify you, your servants and agents and to hold all of you harmless in respect
of any liability, loss, damage or expense of whatsoever nature which you may sustain by
reason of delivering the cargo in accordance with our request.
2 In the event of any proceedings being commenced against you or any of your servants or
agents in connection with the delivery of the cargo as aforesaid, to provide you or them
on demand with sufficient funds to defend the same.

202 203
Standard Form Letters of Indemnity – Int Group AA Standard Form Letters of Indemnity – Int Group AA

We, [insert name of the Bank], hereby agree to join in this Indemnity providing always that Any such extension shall be for a period of two years from the then current Termination Date
the Bank’s liability:- and, should the Bank for any reason be unwilling to extend the Termination Date, the Bank
shall discharge its liability by the payment to you of the maximum sum payable hereunder (or
1 shall be restricted to payment of specified sums of money demanded in relation to the such lesser sum as you may require).
Indemnity (and shall not extend to the provision of bail or other security)
2 shall be to make payment to you forthwith on your written demand in the form of a signed However, in the event of the Bank receiving a written notice signed by you, on or before
letter certifying that the amount demanded is a sum due to be paid to you under the the then current Termination Date, stating that legal proceedings have been commenced
terms of the Indemnity and has not been paid to you by the Requestor or is a sum which against you as a result of your having delivered the said cargo as specified in the Indemnity,
represents monetary compensation due to you in respect of the failure by the Requestor the Bank agrees that its liability hereunder will not terminate until receipt by the Bank of
to fulfil its obligations to you under the Indemnity. For the avoidance of doubt the Bank your signed written notice stating that all legal proceedings have been concluded and that
hereby confirms that:- any sum or sums payable to you by the Requestor and/or the Bank in connection therewith
a such compensation shall include, but not be limited to, payment of any amount up to have been paid and received in full and final settlement of all liabilities arising under
the amount stated in proviso 3 below in order to enable you to arrange the provision the Indemnity.
of security to release the ship (or any other ship in the same or associated ownership,
management or control) from arrest or to prevent any such arrest or to prevent any 6 shall be governed by and construed in accordance with the law governing the Indemnity
interference in the use or trading of the ship, or other ship as aforesaid, and and the Bank agrees to submit to the jurisdiction of the court stated within the Indemnity.
b in the event that the amount of compensation so paid is less than the amount stated in
proviso 3 below, the liability of the Bank hereunder shall continue but shall be reduced It should be understood that, where appropriate, the Bank will only produce and deliver to
by the amount of compensation paid. you all original bills of lading should the same come into the Bank’s possession, but the Bank
3 shall be limited to a sum or sums not exceeding in aggregate [insert currency and amount agrees that, in that event, it shall do so.
in figures and words]
4 subject to proviso 5 below, shall terminate on [date six years from the date of the The Bank agrees to promptly notify you in the event of any change in the full details of the
Indemnity ) (the ‘Termination Date’), except in respect of any demands for payment office to which any demand or notice is to be addressed and which is stated below and it
received by the Bank hereunder at the address indicated below on or before that date. is agreed that you shall also promptly notify the Bank in the event of any change in your
5 shall be extended at your request from time to time for a period of two calendar years at a address as stated above.
time provided that:-
a the Bank shall receive a written notice signed by you and stating that the Indemnity is Please quote the Bank’s Indemnity Ref ……………………… in all correspondence with the
required by you to remain in force for a further period of two years, and Bank and any demands for payment and notices hereunder.
b such notice is received by the Bank at the address indicated below on or before the
then current Termination Date. Yours faithfully
For and on behalf of [insert name of bank]
[insert full details of the office to which any demand or notice is to be addressed]
…………………………….
Signature

204 205
Standard Form Letters of Indemnity – Int Group B Standard Form Letters of Indemnity – Int Group B

INT GROUP B 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
or property in the same or associated ownership, management or control, should be
Standard form letter of indemnity to be given in return for delivering cargo at a port arrested or detained or should the arrest or detention thereof be threatened, or should
other than that stated in the bill of lading there be any interference in the use or trading of the vessel (whether by virtue of a caveat
being entered on the ship’s registry or otherwise howsoever), to provide on demand such
To: [insert name of Owners] [insert date] bail or other security as may be required to prevent such arrest or detention or to secure
The Owners of the [insert name of ship] the release of such ship or property or to remove such interference and to indemnify you
[insert address] in respect of any liability, loss, damage or expense caused by such arrest or detention
or threatened arrest or detention or such interference, whether or not such arrest or
Dear Sirs detention or threatened arrest or detention or such interference may be justified.
4 The liability of each and every person under this indemnity shall be joint and several and
Ship: [insert name of ship] shall not be conditional upon your proceeding first against any person, whether or not
Voyage: [insert load and discharge ports as stated in the bill of lading] such person is party to or liable under this indemnity.
Cargo: [insert description of cargo] 5 This indemnity shall be governed by and construed in accordance with English law and
Bill of lading: [insert identification numbers, date and place of issue] each and every person liable under this indemnity shall at your request submit to the
jurisdiction of the High Court of Justice of England.
The above cargo was shipped on the above ship by [insert name of shipper] and consigned
to [insert name of consignee or party to whose order the bill of lading is made out, as Yours faithfully
appropriate] for delivery at the port of [insert name of discharge port stated in the bill of For and on behalf of [insert name of Requestor]
lading] but we, [insert name of party requesting substituted delivery], hereby request you to The Requestor
order the ship to proceed to and deliver the said cargo at [insert name of substitute port or …………………………………
place of delivery] against production of at least one original bill of lading. Signature

In consideration of your complying with our above request, we hereby agree as follows:-

1 To indemnify you, your servants and agents and to hold all of you harmless in respect
of any liability, loss, damage or expense of whatsoever nature which you may sustain by
reason of the ship proceeding and giving delivery of the cargo against production of at
least one original bill of lading in accordance with our request.
2 In the event of any proceedings being commenced against you or any of your servants
or agents in connection with the ship proceeding and giving delivery of the cargo as
aforesaid, to provide you or them on demand with sufficient funds to defend the same.

206 207
Standard Form Letters of Indemnity – Int Group BB Standard Form Letters of Indemnity – Int Group BB

INT GROUP BB 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
or property in the same or associated ownership, management or control, should be
Standard form letter of indemnity to be given in return for delivering cargo at a port arrested or detained or should the arrest or detention thereof be threatened, or should
other than that stated in the bill of lading incorporating a bank’s agreement to join in there be any interference in the use or trading of the vessel (whether by virtue of a caveat
the letter of indemnity being entered on the ship’s registry or otherwise howsoever), to provide on demand such
bail or other security as may be required to prevent such arrest or detention or to secure
To: [insert name of Owners] [insert date] the release of such ship or property or to remove such interference and to indemnify you
The Owners of the [insert name of ship] in respect of any liability, loss, damage or expense caused by such arrest or detention
[insert address] or threatened arrest or detention or such interference, whether or not such arrest or
detention or threatened arrest or detention or such interference may be justified.
Dear Sirs 4 The liability of each and every person under this indemnity shall be joint and several and
shall not be conditional upon your proceeding first against any person, whether or not
Ship: [insert name of ship] such person is party to or liable under this indemnity.
Voyage: [insert load and discharge ports as stated in the bill of lading] 5 This indemnity shall be governed by and construed in accordance with English law and
Cargo: [insert description of cargo] each and every person liable under this indemnity shall at your request submit to the
Bill of lading: [insert identification numbers, date and place of issue] jurisdiction of the High Court of Justice of England.

The above cargo was shipped on the above ship by [insert name of shipper] and consigned Yours faithfully
to [insert name of consignee or party to whose order the bill of lading is made out, as For and on behalf of [insert name of Requestor]
appropriate] for delivery at the port of [insert name of discharge port stated in the bill of The Requestor
lading] but we, [insert name of party requesting substituted delivery], hereby request you to …………………………………
order the ship to proceed to and deliver the said cargo at [insert name of substitute port or Signature
place of delivery] against production of at least one original bill of lading.

In consideration of your complying with our above request, we hereby agree as follows:-

1 To indemnify you, your servants and agents and to hold all of you harmless in respect
of any liability, loss, damage or expense of whatsoever nature which you may sustain by
reason of the ship proceeding and giving delivery of the cargo against production of at
least one original bill of lading in accordance with our request.
2 In the event of any proceedings being commenced against you or any of your servants
or agents in connection with the ship proceeding and giving delivery of the cargo as
aforesaid, to provide you or them on demand with sufficient funds to defend the same.

208 209
Standard Form Letters of Indemnity – Int Group BB Standard Form Letters of Indemnity – Int Group BB

We, [insert name of the Bank], hereby agree to join in this Indemnity providing always that Any such extension shall be for a period of two years from the then current Termination Date
the Bank’s liability:- and, should the Bank for any reason be unwilling to extend the Termination Date, the Bank
shall discharge its liability by the payment to you of the maximum sum payable hereunder (or
1 shall be restricted to payment of specified sums of money demanded in relation to the such lesser sum as you may require).
Indemnity (and shall not extend to the provision of bail or other security)
2 shall be to make payment to you forthwith on your written demand in the form of a signed However, in the event of the Bank receiving a written notice signed by you, on or before
letter certifying that the amount demanded is a sum due to be paid to you under the the then current Termination Date, stating that legal proceedings have been commenced
terms of the Indemnity and has not been paid to you by the Requestor or is a sum which against you as a result of your having delivered the said cargo as specified in the Indemnity,
represents monetary compensation due to you in respect of the failure by the Requestor the Bank agrees that its liability hereunder will not terminate until receipt by the Bank of
to fulfil its obligations to you under the Indemnity. For the avoidance of doubt the Bank your signed written notice stating that all legal proceedings have been concluded and that
hereby confirms that:- any sum or sums payable to you by the Requestor and/or the Bank in connection therewith
a such compensation shall include, but not be limited to, payment of any amount up to have been paid and received in full and final settlement of all liabilities arising under
the amount stated in proviso 3 below in order to enable you to arrange the provision the Indemnity.
of security to release the ship (or any other ship in the same or associated ownership,
management or control) from arrest or to prevent any such arrest or to prevent any 6 shall be governed by and construed in accordance with the law governing the Indemnity
interference in the use or trading of the ship, or other ship as aforesaid, and and the Bank agrees to submit to the jurisdiction of the court stated within the Indemnity.
b in the event that the amount of compensation so paid is less than the amount stated in
proviso 3 below, the liability of the Bank hereunder shall continue but shall be reduced It should be understood that, where appropriate, the Bank will only produce and deliver to
by the amount of compensation paid. you all original bills of lading should the same come into the Bank’s possession, but the Bank
3 shall be limited to a sum or sums not exceeding in aggregate [insert currency and amount agrees that, in that event, it shall do so.
in figures and words]
4 subject to proviso 5 below, shall terminate on [date six years from the date of the The Bank agrees to promptly notify you in the event of any change in the full details of the
Indemnity ) (the ‘Termination Date’), except in respect of any demands for payment office to which any demand or notice is to be addressed and which is stated below and it
received by the Bank hereunder at the address indicated below on or before that date. is agreed that you shall also promptly notify the Bank in the event of any change in your
5 shall be extended at your request from time to time for a period of two calendar years at a address as stated above.
time provided that:-
a the Bank shall receive a written notice signed by you and stating that the Indemnity is Please quote the Bank’s Indemnity Ref ……………………… in all correspondence with the
required by you to remain in force for a further period of two years, and Bank and any demands for payment and notices hereunder.
b such notice is received by the Bank at the address indicated below on or before the
then current Termination Date. Yours faithfully
For and on behalf of [insert name of bank]
[insert full details of the office to which any demand or notice is to be addressed]
…………………………….
Signature

210 211
Standard Form Letters of Indemnity – Int Group C Standard Form Letters of Indemnity – Int Group C

INT GROUP C 2 In the event of any proceedings being commenced against you or any of your servants
or agents in connection with the ship proceeding and giving delivery of the cargo as
Standard form letter of indemnity to be given in return for delivering cargo at a port aforesaid, to provide you or them on demand with sufficient funds to defend the same.
other than that stated in the bill of lading and without production of the original bill of 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
lading or property in the same or associated ownership, management or control, should be
arrested or detained or should the arrest or detention thereof be threatened, or should
To: [insert name of Owners] [insert date] there be any interference in the use or trading of the vessel (whether by virtue of a caveat
The Owners of the [insert name of ship] being entered on the ship’s registry or otherwise howsoever), to provide on demand such
[insert address] bail or other security as may be required to prevent such arrest or detention or to secure
the release of such ship or property or to remove such interference and to indemnify you
Dear Sirs in respect of any liability, loss, damage or expense caused by such arrest or detention
or threatened arrest or detention or such interference, whether or not such arrest or
Ship: [insert name of ship] detention or threatened arrest or detention or such interference may be justified.
Voyage: [insert load and discharge ports as stated in the bill of lading] 4 If the place at which we have asked you to make delivery is a bulk liquid or gas terminal
Cargo: [insert description of cargo] or facility, or another ship, lighter or barge, then delivery to such terminal, facility, ship,
Bill of lading: [insert identification numbers, date and place of issue] lighter or barge shall be deemed to be delivery to the party to whom we have requested
you to make such delivery.
The above cargo was shipped on the above vessel by [insert name of shipper] and 5 As soon as all original bills of lading for the above cargo shall have come into our
consigned to [insert name of consignee or party to whose order the bills of lading are made possession, to deliver the same to you, or otherwise to cause all original bills of lading to
out, as appropriate] for delivery at the port of [insert name of discharge port stated in the be delivered to you.
bills of lading] but we, [insert name of party requesting substituted delivery], hereby request 6 The liability of each and every person under this indemnity shall be joint and several and
you to order the vessel to proceed to and deliver the said cargo at [insert name of substitute shall not be conditional upon your proceeding first against any person, whether or not
port or place of delivery] to [“X [name of the specific party] or to such party as you believe to such person is party to or liable under this indemnity.
be or to represent X or to be acting on behalf of X“] without production of the original bill 7 This indemnity shall be governed by and construed in accordance with English law and
of lading. each and every person liable under this indemnity shall at your request submit to the
jurisdiction of the High Court of Justice of England.
In consideration of your complying with our above request, we hereby agree as follows:-
Yours faithfully
1 To indemnify you, your servants and agents and to hold all of you harmless in respect For and on behalf of [insert name of Requestor]
of any liability, loss, damage or expense of whatsoever nature which you may sustain The Requestor
by reason of the ship proceeding and giving delivery of the cargo in accordance with …………………………………
our request. Signature

212 213
Standard Form Letters of Indemnity – Int Group CC Standard Form Letters of Indemnity – Int Group CC

INT GROUP CC 2 In the event of any proceedings being commenced against you or any of your servants
or agents in connection with the ship proceeding and giving delivery of the cargo as
Standard form letter of indemnity to be given in return for delivering cargo at a port aforesaid, to provide you or them on demand with sufficient funds to defend the same.
other than that stated in the bill of lading and without production of the original bill of 3 If, in connection with the delivery of the cargo as aforesaid, the ship, or any other ship
lading incorporating a bank’s agreement to join in the letter of indemnity or property in the same or associated ownership, management or control, should be
arrested or detained or should the arrest or detention thereof be threatened, or should
To: [insert name of Owners] [insert date] there be any interference in the use or trading of the vessel (whether by virtue of a caveat
The Owners of the [insert name of ship] being entered on the ship’s registry or otherwise howsoever), to provide on demand such
[insert address] bail or other security as may be required to prevent such arrest or detention or to secure
the release of such ship or property or to remove such interference and to indemnify you
Dear Sirs in respect of any liability, loss, damage or expense caused by such arrest or detention
or threatened arrest or detention or such interference, whether or not such arrest or
Ship: [insert name of ship] detention or threatened arrest or detention or such interference may be justified.
Voyage: [insert load and discharge ports as stated in the bill of lading] 4 If the place at which we have asked you to make delivery is a bulk liquid or gas terminal
Cargo: [insert description of cargo] or facility, or another ship, lighter or barge, then delivery to such terminal, facility, ship,
Bill of lading: [insert identification numbers, date and place of issue] lighter or barge shall be deemed to be delivery to the party to whom we have requested
you to make such delivery.
The above cargo was shipped on the above vessel by [insert name of shipper] and 5 As soon as all original bills of lading for the above cargo shall have come into our
consigned to [insert name of consignee or party to whose order the bills of lading are made possession, to deliver the same to you, or otherwise to cause all original bills of lading to
out, as appropriate] for delivery at the port of [insert name of discharge port stated in the be delivered to you.
bills of lading] but we, [insert name of party requesting substituted delivery], hereby request 6 The liability of each and every person under this indemnity shall be joint and several and
you to order the vessel to proceed to and deliver the said cargo at [insert name of substitute shall not be conditional upon your proceeding first against any person, whether or not
port or place of delivery] to [“X [name of the specific party] or to such party as you believe to such person is party to or liable under this indemnity.
be or to represent X or to be acting on behalf of X”] without production of the original bill of 7 This indemnity shall be governed by and construed in accordance with English law and
lading. each and every person liable under this indemnity shall at your request submit to the
jurisdiction of the High Court of Justice of England.
In consideration of your complying with our above request, we hereby agree as follows:-
Yours faithfully
1 To indemnify you, your servants and agents and to hold all of you harmless in respect For and on behalf of [insert name of Requestor]
of any liability, loss, damage or expense of whatsoever nature which you may sustain The Requestor
by reason of the ship proceeding and giving delivery of the cargo in accordance with …………………………………
our request. Signature

214 215
Standard Form Letters of Indemnity – Int Group CC Standard Form Letters of Indemnity – Int Group CC

We, [insert name of the Bank], hereby agree to join in this Indemnity providing always that Any such extension shall be for a period of two years from the then current Termination Date
the Bank’s liability:- and, should the Bank for any reason be unwilling to extend the Termination Date, the Bank
shall discharge its liability by the payment to you of the maximum sum payable hereunder (or
1 shall be restricted to payment of specified sums of money demanded in relation to the such lesser sum as you may require).
indemnity (and shall not extend to the provision of bail or other security)
2 shall be to make payment to you forthwith on your written demand in the form of a signed However, in the event of the Bank receiving a written notice signed by you, on or before
letter certifying that the amount demanded is a sum due to be paid to you under the the then current Termination Date, stating that legal proceedings have been commenced
terms of the Indemnity and has not been paid to you by the Requestor or is a sum which against you as a result of your having delivered the said cargo as specified in the Indemnity,
represents monetary compensation due to you in respect of the failure by the Requestor the Bank agrees that its liability hereunder will not terminate until receipt by the Bank of
to fulfil its obligations to you under the Indemnity. For the avoidance of doubt the Bank your signed written notice stating that all legal proceedings have been concluded and that
hereby confirms that:- any sum or sums payable to you by the Requestor and/or the Bank in connection therewith
a such compensation shall include, but not be limited to, payment of any amount up to have been paid and received in full and final settlement of all liabilities arising under
the amount stated in proviso 3 below in order to enable you to arrange the provision the Indemnity.
of security to release the ship (or any other ship in the same or associated ownership,
management or control) from arrest or to prevent any such arrest or to prevent any 6 shall be governed by and construed in accordance with the law governing the Indemnity
interference in the use or trading of the ship, or other ship as aforesaid, and and the Bank agrees to submit to the jurisdiction of the court stated within the Indemnity.
b in the event that the amount of compensation so paid is less than the amount stated in
proviso 3 below, the liability of the Bank hereunder shall continue but shall be reduced It should be understood that, where appropriate, the Bank will only produce and deliver to
by the amount of compensation paid. you all original bills of lading should the same come into the Bank’s possession, but the Bank
3 shall be limited to a sum or sums not exceeding in aggregate [insert currency and amount agrees that, in that event, it shall do so.
in figures and words]
4 subject to proviso 5 below, shall terminate on [date six years from the date of the The Bank agrees to promptly notify you in the event of any change in the full details of the
Indemnity ) (the ‘Termination Date’), except in respect of any demands for payment office to which any demand or notice is to be addressed and which is stated below and it
received by the Bank hereunder at the address indicated below on or before that date. is agreed that you shall also promptly notify the Bank in the event of any change in your
5 shall be extended at your request from time to time for a period of two calendar years at a address as stated above.
time provided that:-
a the Bank shall receive a written notice signed by you and stating that the Indemnity is Please quote the Bank’s Indemnity Ref ……………………… in all correspondence with the
required by you to remain in force for a further period of two years, and Bank and any demands for payment and notices hereunder.
b such notice is received by the Bank at the address indicated below on or before the
then current Termination Date. Yours faithfully
For and on behalf of [insert name of bank]
[insert full details of the office to which any demand or notice is to be addressed]
……………………….
Signature

216 217
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