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Section I: Ship Standards and Risk Reviews
15.1 - Classification and condition of ships
Unless otherwise agreed by the managers, the following are conditions of the insurance of every ship:
- the ship must be and remain fully classed with a classification society approved by the managers or, provided agreed by the managers, remain fully approved by the government authority responsible for ship certification for the trade in question (hereafter ‘society/authority’)
- any matter in respect of which the society/authority might make recommendations about action to be taken must be promptly reported to the society/authority
- the member must comply with all the rules, recommendations and requirements of the society/authority within the time or times specified by that society/authority
- the managers may inspect any document, and/or obtain any information relating to the maintenance of the ship’s class or approval, in the possession of any society/authority with which the ship is or at any time has been classed or approved, and the member authorises such society/authority to disclose such documents and/or information to the managers for whatever purposes they may consider necessary
- the member must comply with all statutory requirements of the ship’s flag state relating to the construction, adaptation, condition, fitment, equipment, manning and operation of the ship and must at all times maintain the validity of such statutory certificates as are required or issued by or on behalf of the ship’s flag state, including those in respect of the ISM and ISPS codes.
Unless and to the extent the board otherwise decides, a member is not entitled to any recovery in respect of any liabilities arising during a period when any of the conditions in rule 15.1 have not been complied with.
15.3.1 - Ship risk reviews
The managers may, as a condition of acceptance or renewal of entry in the club or at any time thereafter, appoint a surveyor to undertake a ship risk review in respect of an applicant’s or member’s ship within a specified period. In the light of such ship risk review, the managers may decline the application, refuse to renew the entry or impose conditions on the terms of entry as they see fit.
If the applicant’s or member’s ship is not made available for a ship risk review within such period, no claim for recovery as a result of any incident arising after the expiry of such period will be allowed until such time as the ship risk review has been carried out, unless the board otherwise determines.
15.4 - Operational reviews
The managers may at any time, or following an incident which will or may cause the member to incur liabilities for which he may be insured by the club, appoint a surveyor to undertake a review of the member’s operations within a specified period. If the review does not take place within such period, no claim for recovery as a result of any incident arising after the expiry of such period will be allowed until such time as the review has been carried out, unless the board otherwise determines.
15.5 - Surveys following lay-up
In the event that a member has laid the ship up for more than 90 consecutive days he must, unless otherwise agreed by the managers, notify them of his intention to trade the ship at least seven days before she resumes trading. The managers may then require the member to have that ship undergo a ship risk review by a surveyor appointed by them. In the event that the member does not notify the club of his intention to trade the ship, no claim for recovery will be allowed unless the board otherwise determines.
15.6 - Effect on terms of entry
In the light of a ship risk review or review of the member’s operations, the managers may:
- terminate the member’s entry with immediate effect or from a time and date specified by a notice in writing to the member; or
- amend, vary or impose conditions on the terms of entry as they see fit.
15.7 - Effect of non-compliance
Any recommendations made by the managers or a surveyor following any ship risk review or review of the member’s operations must be carried out within a period specified by, and to the satisfaction of, the managers. If such recommendations are not carried out to the satisfaction of the managers within such period, no claim for recovery as a result of any incident arising after the expiry of such period will be allowed until such time as the recommendations have been carried out to the satisfaction of the managers, unless the board otherwise determines.
15.8 - Disclosure of survey reports
Every applicant or member:
- consents to and authorises the disclosure by the managers to any insurer participating in the Pooling Agreement of any survey of a ship undertaken on behalf of the club; and
- waives any rights or claims against the club or the managers of whatsoever nature arising in respect of or relating to the contents of or opinions expressed in any survey so disclosed.
Such survey may only be disclosed to another insurer participating in the Pooling Agreement when an application for entry of such ship is made thereto; and the disclosure of the survey shall be for the limited purpose only of that insurer considering an application to enter such ship for insurance.