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Section H: Application and Entry
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- Section H: Application and Entry
- 10.1 - Application
- 11.1 - Entry
- 11.2 - Immediate termination
- 12.1 - Certificates of entry
- 13.1 - Joint entrants
- 13.5 - Co-assureds
- 13.8 - Insured parties
- 13.13 - Charterer named as joint entrant or co-assured
- 13.14 - Group entries
- 13.17 - Affiliated and associated companies
- 13.18 - Breach of warranty
- 14.1 - Assignment
10.1 - Application
The applicant must make to the managers a fair presentation of the risk by providing the managers with all material particulars and information together with any additional particulars and information as the managers may require.
The applicant will ensure that every material representation as to a matter of fact is substantially correct, and every material representation as to a matter of expectation or belief is made in good faith.
The managers may, without giving any reason, refuse any application for the entry of a ship in the club.
11.1 - Entry
Unless the managers otherwise decide, each person whose entry has been accepted under the rules becomes a member of the club. Whenever the managers accept an entry by way of reinsurance, the insurer reinsured by the club or person insured by such an insurer may, if the managers agree, become a member.
11.2 - Immediate termination
The member is obliged to disclose any change in any material information relating to an entry including, but not limited to, change of: management, flag, classification society, government authority responsible for ship certification for the trade in question, nationality of crew, trading or operating area or nature of trade or operation. Upon such disclosure, or failure to disclose, the managers may amend the member’s premium rating or terms of entry, or terminate the entry in respect of such ship with effect from the time of disclosure or failure to disclose.
The managers may accept an entry on terms as to premium other than those set out in the rules, in particular on a fixed premium basis.
The member is bound by and must observe and perform the obligations under the rules, and must provide the managers with electronic and postal addresses for service of notices.
The member warrants that he is, in relation to the ship:
- her owner or charterer; or
- a manager or operator having control of her operation and employment; or
- any other person in possession and control of her.
Under a charterer’s entry, the member warrants that he will, unless otherwise agreed with the managers, declare to the club all ships chartered by him.
12.1 - Certificates of entry
The managers will send the member a certificate of entry stating the date of commencement of cover and the terms and conditions on which the ship has been accepted for insurance.
If at any time there is a variation in the terms of entry, the managers will send the member an endorsement stating the terms of such variation and the date from which such variation is to be effective.
Every certificate of entry issued is conclusive evidence as to its terms; if the managers believe that such documentation contains any error or omission, they may issue a new certificate or endorsement which will be conclusive as aforesaid.
13.1 - Joint entrants
The managers may accept an application from a member for another person or persons to become joint entrants in respect of that member’s entry. Each joint entrant has an independent right of recovery from the club.
Unless otherwise agreed by the managers, the member and all joint entrants are jointly and severally liable to pay all amounts due to the club in respect of such entry.
- a The member and each joint entrant warrants that the joint entrant is, in relation to the ship:
- interested in her operation, management or manning; or
- the holding company or the beneficial owner of the member or of any person interested in her operation, management or manning; or
- a mortgagee of the ship or a financial institution (or its subsidiary or affiliate) leasing the ship as owner to the member; or
- the charterer.
- b The liability of a joint entrant and the member to each other shall not be excluded nor discharged by reason of the joint entrant being accepted by the club as a joint entrant in accordance with this rule 13. Any payment by the club to the member in respect of any liabilities insured by the club shall operate only as satisfaction but not exclusion or discharge of the liability of the joint entrant to the member.
The member warrants that he has at all times full power and authority to act in the name of and/or on behalf of all joint entrants.
13.5 - Co-assureds
The managers may accept an application from a member for another person or persons to become co-assureds in respect of that member’s entry.
The liability of the club to a co-assured only extends insofar as he may be found liable to pay in the first instance for liabilities which are properly the responsibility of either the member or, as appropriate, an affiliated or associated charterer insured under the same entry, which, if the member or such affiliated or associated charterer has entered into a contract with the co-assured, means those liabilities which are to be borne by the member or the affiliated or associated charterer, as appropriate, under such contract. Cover does not extend to any amount to the extent that such amount would not have been recoverable from the club by the member or the affiliated or associated charterer had the claim been made or enforced against him or to any liabilities to be borne by any of the co-assureds under the said contract.
Once the club has indemnified a co-assured, it shall not be under any further liability to any person in respect of that claim.
13.8 - Insured parties
The receipt by an insured party of any sums paid by the club in respect of such an entry is sufficient discharge by the club for the same.
Any provision of the rules by which an insured party ceases either to be insured or to be entitled to recover from the club is deemed to apply to all insured parties. Failure by an insured party to comply with any of the obligations under the rules is deemed to be the failure of all insured parties.
Conduct of an insured party which would have entitled the club to decline to indemnify it is deemed to be the conduct of all insured parties.
The contents of any communication between an insured party and the club is deemed to be within the knowledge of all insured parties.
The cover provided to joint entrants and co-assureds does not extend to any liabilities or disputes either among such joint entrants and co-assureds, or with the member.
13.13 - Charterer named as joint entrant or co-assured
- a Unless otherwise agreed by the managers, where a charterer is named as a joint entrant or co-assured, all insured parties, including such charterer, warrant that the charterer is either:
- an affiliated or associated charterer; or
- has contracted with the member or a joint entrant for the provision of services to or by the ship and that contract has been approved by the managers.
- b Any charterer named as a co-assured in accordance with rule 13.13 a (2) above is only covered for liabilities which are to be borne by the member or other joint entrant under the terms of the relevant contract and would, if borne by the member or that joint entrant, be recoverable by either from the club.
13.14 - Group entries
The managers may accept an entry on the basis that the ship is part of a group rating agreement and assess premium accordingly.
The member or a joint entrant must be designated group principal and any communication from or on behalf of the club to the group principal is deemed to be within the knowledge of all insured parties in the group and any communication from and action taken by the group principal is deemed conclusively to be made with the full approval of any and all insured parties within that group.
All persons entering ships under a group rating agreement and the group principal remain jointly and severally liable to pay all amounts due to the club in respect of any and all ships in the same group.
13.17 - Affiliated and associated companies
In the case of a claim which would be recoverable from the club being enforced against an affiliated or associated company of a member, but not of a joint entrant or a co-assured, such company shall, if the member so requires in writing, be entitled to recover such sum from the club but only to the extent to which the member would have been entitled to recover if the claim had been enforced against him.
13.18 - Breach of warranty
In the event of any breach of the warranties set out in rules 10.2, 11.5, 11.6 and 13.4, all insured parties’ insurance shall terminate automatically from the time of the breach. In such circumstances, the member shall be, and remain, liable for all premium, including overspill calls, up to the time of the breach.
In the event of any breach by a joint entrant or co-assured of the warranties set out in rules 13.3 and 13.13, the joint entrant’s or coassured’s insurance shall terminate automatically from the time of the breach. If a joint entrant is in breach, he shall be, and remain, liable for all premium, including overspill calls, up to the time of the breach.
14.1 - Assignment
No insurance given by the club and no interest under the rules or under any contract between the club and any member may be assigned without the agreement of the managers. Any assignment made without such agreement shall, unless the managers otherwise determine, be of no effect and the assignee shall have no rights against the club.
In the event that the managers agree, the club is entitled in settling any claim presented by the assignee to deduct or retain such amount as the managers may then estimate to be sufficient to discharge any actual or potential liabilities of the assignor to the club.