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Rule 2 A-E
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- Rule 2 A-E
- Part A Protection and Indemnity Risks
- Part B Ships
- Part C Detention or Diversion Expenses
- Part D Sue and Labour
- Part E Discretionary Claims
Part A Protection and Indemnity Risks
An insured owner who has entered his ship for insurance under rule 2 is insured against the protection and indemnity liabilities, costs and expenses specified in appendix C paragraphs C.1 to C.13.
PROVIDED ALWAYS that:
The liabilities, costs or expenses referred to in each paragraph (save in appendix C paragraphs C.4.2, C.5 and C.11) must, irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the insured owner or on the part of the insured owner’s servants or agents, have arisen or been incurred in respect of loss or damage, injury, illness or death or accident caused by:
War, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power, or any act of terrorism,
Capture, seizure, arrest, restraint or detainment (barratry and piracy excepted) and the consequences thereof or any attempt thereat;
Mines, torpedoes, bombs, rockets, shells, explosives or other similar weapons of war, save for those liabilities, costs and expenses which arise solely by reason of:
The transport of any such weapons whether on board the entered ship or not; or
The use of any such weapons either as a result of government order or through compliance with directions given by, or with the written agreement of, any other insurers where the reason for such use was the avoidance or mitigation of liabilities, costs or expenses which would otherwise fall within the cover of those other insurers.
Except as provided in paragraph 2.A.3 there shall be no recovery of the liabilities, costs or expenses referred to in appendix C paragraphs C.1 to C.8 and C.10 to C.12 inclusive which arise solely out of the terms of any agreement, contract or indemnity unless the terms of such agreement, contract or indemnity have been approved by the managers in writing. In giving such approval the managers may impose any terms or conditions as they may think fit, including the imposition of a premium.
There shall be no recovery of the liabilities, costs or expenses referred to in appendix C paragraphs C.1, C.2, C.3 and C.4.1, which arise out of the terms of any crew agreement, unless the terms of such crew agreement or contract of service or employment have been approved by the managers in accordance with the provisions of rule 2.A.2.
The maximum recovery from the club for claims under rule 2 part A in respect of any one accident shall be limited to whichever is the higher of the following:
Such limit of liability as may have been specified in or endorsed on the certificate of entry; or
Such limit of liability as shall have been determined by the board before or at the beginning of any policy year and notified by the managers to the insured owner.
Different limits of liability may be specified for different types of risk whether by the certificate of entry or by the board.
If no other limit shall have been so fixed, the limit of liability for the purposes of rule 2 part A shall be the sum or sums for which the club is reinsured in respect of the relevant claim.
Such limit or limits shall be independent of and in addition to the sums insured for the purposes of the risks specified in rule 2 part B.
Unless the board otherwise determines, it shall be a condition precedent of an insured owner’s right of recovery from the club in respect of each of the liabilities and expenses enumerated in rule 2 part A that the insured owner shall first have paid the same.
Part B Ships
Loss, whether partial or total, of the entered ship’s hull, materials, machinery and all other parts and equipment thereof (including cash for wages or disbursements, up to such limit as the board may from time to time determine) when caused by any of the following risks:
War, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power;
Capture, seizure, arrest, restraint or detainment, and the consequences thereof or any attempt thereat;
Mines, torpedoes, bombs or other weapons of war, including derelict mines, torpedoes, bombs or other derelict weapons of war;
Strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions;
Any terrorist or any person acting maliciously or from a political motive;
Piracy, barratry or violent theft by persons coming from outside the entered ship;
Confiscation or expropriation.
Part C Detention or Diversion Expenses
This Part of the cover insures an insured owner against loss sustained through the detention or diversion of an entered ship caused:
By war, civil war, warlike operations, revolution, rebellion, insurrection, civil strife, any hostile act by or against a belligerent power or by conditions brought about as a result of any of the foregoing;
As a result of compliance with orders, prohibitions or directions by the board or by any department and/or ministry of the government of the Republic of Singapore or any other government having the right to give such orders or any Singaporean military or naval authority given in order to avoid loss of or damage to the entered ship by any of the risks referred to in rule 2 part B;
By any government or department or agency thereof or by the armed forces of any government or by any persons acting or purporting to act on behalf of any government or any department or agency thereof where the detention or diversion is considered by the board in its discretion to have been caused, instigated, incited or encouraged by such government or department or agency in furtherance of its political aims;
By any group of persons which in pursuit of its political aims maintains an armed force;
By terrorists, pirates, bandits or rioters;
In order to avoid loss of or damage to the entered ship by any of the risks insured under rule 2 part B but only where and to the extent that the board in its discretion determine that the loss should be recoverable from the club.
PROVIDED ALWAYS that:
A loss caused by strikers, locked-out workmen or persons taking part in labour disturbances, or as a result of strikes, lock-outs or labour disturbances, or in order to avoid loss of or damage to the entered ship by any of the said risks, shall not be insured under this rule 2 part C;
There shall be no recovery under rule 2 part C if the insured owner intended to detain or divert the entered ship before the commencement of loading cargo or passengers for, or clearing in ballast on, the voyage during which the detention or diversion shall have occurred;
In the case of rule 2.C.1.2 the orders, prohibitions or directions were given after the commencement of the voyage.
The sums recoverable from the club in respect of a loss specified in rule 2.C.1 shall be as set out in rules 2.C.4 to 2.C.6.
In the event of the detention or diversion of an entered ship in any of the cases referred to in rule 2.C.1, the insured owner shall be entitled, subject to rule 2.C.6, to recover:
In the case of the detention of the entered ship, the daily running expenses of the entered ship during the period of the detention;
In the case of the diversion of the entered ship, the net extra running expenses of the entered ship incurred by the insured owner in consequence of the diversion over and above those which would have been incurred but for the same.
PROVIDED ALWAYS that:
No sum shall be recoverable from the club under rule 2 part C in respect of loss of profit or in respect of the amortization of the capital cost of the entered ship or in respect of the depreciation thereof, or in respect of any payments or principal or interest made under any mortgage o
From each claim there shall be deducted a sum equivalent to seven days’ daily running expenses of the entered ship or, in the case of a claim for net extra expenses only, a sum equivalent to the net extra expenses for seven days.
In the event of the detention of an entered ship by any of the causes referred to in rules 2.C.1.1, 2.C.1.3, 2.C.1.4 or 2.C.1.5 and lasting for a continuous period exceeding 90 days, the insured owner shall be entitled, subject to rule 2.C.6, to recover from the club in respect of such detention, in addition to any sums recoverable under rule 2.C.4, a sum calculated at the rate of ten per cent per annum of the insured value of the entered ship as specified in the certificate of entry and applied pro rata to the whole of the detention. PROVIDED ALWAYS that:
Unless the board in its discretion otherwise determines, the insured owner shall give credit against the said amount for any claim paid or payable by the club for damage received by the entered ship during such period.
The sums recoverable by an insured owner under rules 2.C.4 and 2.C.5 shall be limited as follows:
No sum shall be recoverable, in an insured owner’s claim for detention of an entered ship, in respect of any period during which that ship is:
Delayed solely because a decision on the part of the insured owner, his servants or agents, is awaited on the disposal, repair or movement of the entered ship, or
Awaiting repairs or being repaired, irrespective of whether the need for such decision or repairs has been created by damage caused to the entered ship by any of the risks specified in rule 2 part B or otherwise howsoever.
If the insured owner shall have received any hire or other contractual reward payable on a time basis (whether under a demise or time charterparty or otherwise howsoever) for the period in respect of which a claim is made under rule 2.C.4 and rule 2.C.5, he shall give credit for such hire or other reward in making his claim under rule 2.C.4.1 and 2.C.5 and if he shall have any right to receive such hire or other reward but shall not have received the same he shall assign his rights therein to the club.
Unless the board in its discretion otherwise determines, no sum shall be recoverable from the club in respect of any period after the entered ship has become or been accepted as an actual or constructive total loss (whether under the terms of a policy or contract against marine risks or under the cover specified in these rules), or after the club has accepted notice of abandonment or after the club has notified the insured owner in writing, whether or not he has given any notice of abandonment, that the club has decided to treat the entered ship as a constructive total loss.
Part D Sue and Labour
Extraordinary costs and expenses (not being the running expenses of the entered ship referred to in rule 2.C.4 or the liabilities and expenses referred to in appendix C paragraphs C.1 to C.12) reasonably incurred on or after the occurrence of any casualty, event or matter liable to give rise to a claim upon the club and incurred solely for the purpose of avoiding or minimising any losses, liabilities, costs or expenses against which the insured owner is insured by the club.
PROVIDED ALWAYS that:
Unless the board in its discretion shall otherwise determine, the following shall not be recoverable whether as sue and labour expenses or otherwise howsoever:
Any fines, penalties or other impositions such as are specified in rule 4.D.4;
Any other sum of money paid in consideration of the release of an entered ship from any capture, seizure, arrest, detainment, confiscation or expropriation.
Part E Discretionary Claims
Losses, liabilities, costs and expenses not otherwise recoverable under these rules which the board may decide to be within the scope of the club. Claims under rule 2 part E shall be recoverable to such extent only as the board may determine.