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3.1.1 - Crew injury, illness or death

Liabilities in respect of crew injury, illness or death.

3.1.2 - Repatriation

Liabilities in respect of crew repatriation.

Exclusion to rule 3.1.2

Liabilities arising out of the termination of any agreement, or the sale of the unit, or any other act of the member in respect of the unit, unless the board considers that such termination or other act was necessary in the interests of the safety of the unit or crew, or the proper running of the unit.

3.1.3 - Substitute expenses

Expenses necessarily incurred in sending substitutes to replace crew who have died, are incapacitated or who have been left ashore in consequence of injury, illness or desertion. Wages are only recoverable when payable to substitutes while awaiting and during repatriation.

3.1.4 - Loss of effects

Loss of crew effects, excluding valuables.

3.1.5 - Shipwreck unemployment indemnity

Wages or other compensation payable to crew arising out of the actual or constructive total loss of the unit.

3.1.6 - Port expenses

Port and other charges as set out in rule 3.3 incurred in relation to crew.

3.2 - Third Parties

Liabilities in respect of the injury, illness or death of any person other than crew.

3.3 - Stowaways and refugees: port charges

Port and other charges solely incurred for the purpose of landing stowaways or refugees, or others saved at sea, or, with the agreement of the managers, a deceased person, or landing or securing the necessary treatment for an injured or sick person, other than crew, including the net loss to the member in respect of fuel, insurance, wages, stores and provisions incurred for such purpose.

3.4.1 - Collision

Liabilities arising out of a collision, if and to the extent that such liabilities are not covered under the hull policies, including that part of the member’s collision liability which exceeds the sum recoverable under the hull policies solely by reason of such liability exceeding the valuation of the unit in those policies. However, the board may determine the proper value (being the market value of the unit without commitment) for which the unit should have been insured under the hull policies, and the club shall pay only the excess of the amount which would have been recoverable if the unit had been insured thereunder at such value.

3.4.2

There will be no recovery from the club insofar as such collision liabilities are not recoverable under the hull policies by reason of any breach of such policies.

3.4.3

If the other ship and the unit are both to blame then, unless the liability of the owners of one or both of them becomes limited by law, claims shall be settled upon the principle of cross-liabilities.

3.5 - Damage to other ships (other than by collision)

Liabilities for loss of or damage to, delay to, interference with rights in relation to, or liability for salvage or wreck removal costs incurred in respect of, a ship or any cargo or other property therein caused other than by collision with the unit. Exclusions to rule 3.5 (1) Liabilities in respect of any property owned or leased by the member. (2) Liabilities which are within the scope of cover provided under rule 3.4.

3.6.1 - Pollution

Liabilities arising out of the discharge or escape of any substance from the unit, including the costs of any measures reasonably taken for the purpose of avoiding or minimising any resulting loss, damage or contamination or cleaning up any resulting pollution, together with liability for any loss of or damage to property caused by any measures so taken.

3.6.2

The costs of any measures reasonably taken to prevent an imminent danger of the discharge or escape of any substance from the unit. Exclusion to rules 3.6.1 and 3.6.2 There shall be no recovery unless the liabilities have arisen under statute, general law, contract, a voluntary agreement assuming strict liability, a salvage agreement to compensate salvors for work done or out of measures taken to prevent or reduce pollution or the risk thereof by the escape from the unit of any substance.

3.6.3

Liabilities incurred after the unit has become a wreck arising from the discharge or escape from such wreck of any substance.

3.6.4

Liabilities in respect of pollution where such liabilities arise under rules 3.4, 3.5, 3.7, 3.8 and 3.11.

3.6.5

Fines imposed on the member or upon any other person whom he reasonably reimburses or is legally liable to indemnify in respect of the accidental discharge or escape of any substance arising from risks covered under rules 3.6.1, 3.6.3 and 3.6.4.

Exclusion to rules 3.6.4 and 3.6.5

Unless the board otherwise determines, there shall be no recovery in respect of any liability incurred more than two years after the unit became a wreck.

Exclusion to rule 3.6.5

Unless the board otherwise determines, there shall be no recovery in respect of a fine imposed for or arising out of:

(1) any personal act or default on the part of the member or his managers

(2) wilful misconduct on the part of any person unless the member has been compelled by law to pay the fine. 

Exclusions to rule 3.6 There shall be no recovery in respect of:

(1) liabilities which are recoverable under the hull policies or any other insurance

(2) liabilities including fines and any consequential losses arising therefrom which arise out of:

a pollution from the hole or well or subsea or subsurface operation in respect of which the unit is employed or utilised other than pollution from the unit and measures taken to avert or minimise such liabilities;

b subsea or subsurface or underground pollution other than pollution from the unit;

c the discharge or escape of any substance from any riser, f lowline, umbilical, floating hose, buoyancy float or tank or mooring system connected to the unit or out of measures to avert or minimise such liabilities unless such riser, f lowline, umbilical, floating hose, buoyancy float or tank or mooring system is part of the unit as defined

(3) liabilities, including fines, loss or damage including, without limitation, liability for the cost of any remedial works or clean-up operations, arising as a result of the presence in, or the escape or discharge or threat of escape or discharge from, any land based dump, site, storage or disposal facility of any substance previously carried on the unit whether as cargo, fuel, stores or waste and whether at any time mixed in whole or in part with any other substance whatsoever.

(4) liabilities including fines and any consequential losses arising therefrom which arise out of any oil pollution incident within  the United States Exclusive Economic Zone, unless otherwise agreed by the managers.

3.7 - Damage to other ships (other than by collision)

Liabilities for loss of or damage to, delay to, interference with rights in relation to, or liability for salvage or wreck removal costs incurred in respect of, any other ship or any cargo or other property therein caused other than by collision with the units. 

Exclusions to rule 3.7

(1) Liabilities in respect of any property owned or leased by the member.

(2) Liabilities which are within the scope of cover provided under rule 3.4. 

3.8.1 - Wreck liabilities

Liabilities for or incidental to the raising, removal, destruction, lighting or marking of the wreck of the unit or any property on board. The value of the wreck and all property saved must be deducted from any reimbursement and only the balance is recoverable.

3.8.2

Liabilities resulting from the actual or attempted raising, removal or destruction of the wreck of the unit or property on board. 

3.8.3

Liabilities for or incidental to the raising, removal, destruction, lighting or marking of the drill string, blow-out preventer, blow-out preventer stack, diverter or marine riser or any part thereof owned  or leased by the member which has been lost or deposited on the seabed as a result of a casualty and which is not in or connected to any hole or well (hereafter ‘additional drilling equipment’).

3.8.4

Liabilities resulting from the presence or involuntary shifting of the wreck of the unit or property on board caused by the casualty which led to the loss of the unit.

Exclusions to rule 3.8

(1) There shall be no recovery if the member has, without the agreement of the managers, transferred his interest in the wreck other than by abandonment, at any time after the unit became a wreck.

(2) There shall be no recovery unless the raising, removal, destruction, lighting or marking of the wreck of the unit, property on board or additional drilling equipment was compulsory by law or legally recoverable from the member under contract, or was undertaken with the agreement of the managers.

(3) Unless the board otherwise determines, a member is not entitled to reimbursement in respect of any liability unless he took reasonable measures to raise, remove, destroy, light or mark the wreck of the unit, property on board or additional drilling equipment.

(4) There shall be no recovery for any liabilities for or relating to clean-up of debris, tools, machinery or equipment lost or deposited on the seabed during operations, save to the extent recoverable under rules 3.8.1 to 3.8.4 above.

(5) Unless the board otherwise determines, there shall be no recovery in respect of any liability incurred more than two years after the unit, property on board or additional drilling equipment became a wreck.

(6) There shall be no recovery in respect of loss of or damage to any property belonging to or the legal responsibility of any person employing the unit pursuant to any contract and any other party having an owning interest in the concession, prospect or field in respect of which the unit is employed or utilised where the liability arises in connection with a hole or well or subsea or subsurface operation in respect of which the unit is employed or utilised.

(7) Unless the board otherwise determines, there shall be no recovery unless the member has contracted for removal of the wreck on terms which have been approved by the managers.

(8) There shall be no recovery in respect of liabilities for or incidental to the raising, removal, destruction, lighting or marking of the wreck of the unit unless the unit became a wreck as a result of a casualty. For the purpose of this rule, ‘casualty’ means collision, stranding, explosion, fire or similar fortuitous event, but excludes any wreck caused by dereliction or neglect.

3.9 - Fines

Fines, other than fines arising from risks covered under rule 3.6, imposed on the member or upon any other person whom he reasonably reimburses or is legally liable to indemnify:

3.9.1

for smuggling or breach of any customs or immigration law or regulation, other than in relation to any hydrocarbons on board or in the unit.

3.9.2

for any other matter to the extent that the member has satisfied the board that he took all such steps as appear to the board to be reasonable to avoid the event giving rise to the fine; in addition, any amounts claimed in respect of such fine are recoverable only to the extent the board may determine.

Exclusions to rule 3.9 Unless the board otherwise determines, there shall be no recovery in respect of a fine imposed for or arising out of:

(1) overloading

(2) any personal act or default on the part of the member or his managers

(3) wilful misconduct on the part of any person unless the member has been compelled bylaw to pay the fine.

3.10 - Enquiry expenses

Costs and expenses incurred in protecting a member’s interests before a formal enquiry into a casualty to the unit where, in the opinion of the managers, a claim upon the club is likely to arise, or in other cases as the board determines.

3.11 - Sue and Labour

Extraordinary costs and expenses, including legal, survey, expert and correspondent fees, reasonably incurred on or after the occurrence of any event liable to give rise to a claim upon the club and incurred solely for the purpose of avoiding or minimising any liability against which the member is insured by the club, but only to the extent that those costs and expenses have been incurred with the prior agreement of the managers, or to the extent that the board determines.

Exclusion to rule 3.11

Unless the managers or the board otherwise decide, there shall be deducted from such costs and expenses the deductible which would have been applicable had the liability or expenditure against which the member is insured by the club been incurred.

3.12 - Omnibus

Any liabilities which the board may determine to be within the scope of club cover, but only to the extent that it decides that the member shall recover from the club.

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