Soon to be
Rule 32 Effects of Cesser and Cancellation of Insurance
When an Insured Owner’s insurance ceases under or by reason of the operation of any of these Rules other than Rule 31:
Such Insured Owner and his Successors shall be and remain liable for all Contributions, Additional Premiums, Premiums and any other sums whatsoever payable in respect of the Policy Year in which the insurance ceases, and in respect of previous Policy Years, unless and to the extent that Rule 34 is applicable and/or the Insured Owner’s liability may have been otherwise agreed under Rule 35;
Subject to Rule 32.2 and to the other provisions of these Rules and to the terms of entry in the Club of the Entered Ship or Ships in respect of which insurance has ceased, the Club shall remain liable in respect of such Entered Ship or (as the case may be) Ships for all claims under these Rules arising out of any event which has occurred prior to the time of cessation of the insurance, but shall not otherwise be under any liability whatsoever by reason of anything occurring after such time.
When an Insured Owner’s insurance is cancelled in accordance with Rule 31 (which time is hereinafter in Rule 32 referred to as “the date of cancellation”):
Such Insured Owner and his Successors shall be and remain liable for all contributions, Additional Premiums, Premiums and other sums payable in respect of the Policy Year in which the date of cancellation occurs pro rata only for the period up to the date of cancellation or such earlier date as the Managers in their discretion decide and stipulate in writing, and in respect of previous Policy Years;
The Club shall with effect from the date of cancellation cease to be liable for any claims of whatsoever kind under these Rules in respect of any and all ships entered in the Club by or on behalf of such Insured Owner irrespective of whether:
Such claims have occurred or arisen or may arise by reason of any event which has occurred at any time prior to the date of cancellation, including during previous Policy Years;
Such claims arise by reason of any event occurring after the date of cancellation;
The Club may have admitted liability for or appointed lawyers, surveyors or any other person to deal with such claims;
The club at the date of, or prior to the date of, cancellation knew that such claims might or would arise, and as from the date of cancellation any liability of the club for such claims shall terminate retrospectively and the club shall be under no liability to such insured owner for any such claims or on any account whatsoever.
PROVIDED ALWAYS that:
The board may in its discretion and upon such terms as it thinks fit, including but not restricted to terms as to payment of contributions, additional premiums, premiums or other sums, agree to pay either in whole or in part any claim in respect of any ship entered by an insured owner for which the club is under no liability by virtue of rule 32, whether such claim has arisen before or arises after the date of cessation or the date of cancellation, as the case may be, or remit wholly or partly any payment of contributions, additional premiums, premiums or other sums paid or payable to the club.