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Section B: Scope of Cover, Recovery and Limits
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- Section B: Scope of Cover, Recovery and Limits
- 2.3 - Loss of Time Calculation
- 2.5.1 - Daily Entered Sum
- 2.6 - Limits of Recovery
- 2.8 - Recovery For Onshore Events
- 2.9 - Recovery For Ship Related Events
- 2.11 - Amounts owing to the club
- 2.12 - Pre-existing circumstances
- 2.13 - Obligation to sue and labour
- 2.14 - Wilful misconduct
- 2.15 - Sanctions
The Strike & Delay cover protects the member against financial loss of income caused by specified delays to an entered ship occurring or commencing during the period of its entry in the club to the extent that such delay is caused by an insured risk.
Under a charterer’s entry, a member is entitled to recover for his liability to indemnify another person in respect of the risks set out in rule 3.
2.3 - Loss of Time Calculation
Only the time during which the ship has been deprived in whole or in part of income under a relevant employment contract shall count. There shall be no recovery for a delay, or any part thereof, in the absence of loss of income either because the member is entitled to payment under the applicable employment contract notwithstanding the delay or because the member would never have been entitled to payment, irrespective of the delay.
The loss of time may arise out of a single continuous period of delay or in respect of a series of intermittent delays during the course of a visit to a single port or visits to more than one port, provided that: (1) time shall not start to run unless the delay has lasted for a continuous period of more than 24 hours; thereafter, the member is entitled to recover from the commencement of the incident. Any applicable deductible and limit of days covered under the certificate of entry shall run from the commencement of the incident; (2) period of delays separated by intervals of more than 48 consecutive hours shall be treated as separate incidents save in respect of delays covered under 3.22, 3.23, 3.31, 3.32 or 3.33.
2.5.1 - Daily Entered Sum
Each ship is entered with the club for a specific entered sum which shall constitute the maximum amount the member is entitled to recover for each day (and pro-rata for any part of a day) the ship was delayed by reason of an insured risk.
The member warrants the daily entered sum agreed with the club is a fair and reasonable estimate of one of the following: (1) ship’s daily revenue (less bunkers or other costs saved in case of a delay); or (2) the daily hire or other remuneration payable by him (less such expenses as the member saves or ought to have saved due to the ship being delayed); or (3) the ship’s daily running costs.
Any change in the daily entered sum during the course of the policy year must be agreed in writing by the managers.
2.6 - Limits of Recovery
must be agreed in writing by the managers. (1) the maximum number of days (less deductible) specifically agreed in the member’s certificate of entry for the relevant insured risk; (2) any aggregate or other limits specifically agreed in the member’s certificate of entry.
In any event, the member’s claim against the club is limited to the net loss suffered in respect of any delay caused by one of the insured risks, after deduction of: (1) any amount which is recoverable by way of hire, demurrage, damages, under any guarantee or which can be avoided by placing the ship off-hire; (2) any recovery in respect of loss of time and/or ship’s daily running costs made from third parties or in general average; (3) any recovery made from another insurer.
2.8 - Recovery For Onshore Events
Recovery in respect of claims for delay under rules 3.1 to 3.13 shall be limited to: (1) the period during which the relevant risk persists; and (2) after the relevant risk has ended (or “thereafter”), the period during which the ship is at the affected port or area and the after-effects of the relevant risk are still directly affecting the port or area and the entered ship provided that the ship arrived at such port or area within fifteen days after the relevant risk has ended.
2.9 - Recovery For Ship Related Events
There shall be no recovery under rules 3.22, 3.23, 3.31, 3.32, 3.33, 3.34 or 3.35 in respect of any period of delay: (1) commencing 12 months or more after the original incident; or (2) resulting from the ship becoming an actual, constructive or economic total loss; or (3) resulting from the ship slow steaming solely as a result of one or more of the above events beyond her immediate next port of call or refuge.
Where repairs arising from an incident covered under rules 3.22, 3.23, 3.31, 3.32, 3.33, 3.34 or 3.35 are undertaken concurrently with other work, the time in excess of the deductible period that is common to both categories of work will be split equally.
2.11 - Amounts owing to the club
The club is not liable to make any payment in respect of any claim while any sum is due to the club from the member either in respect of a ship entered or under the same group rating agreement; however, if the club makes any payment, it may deduct any sum which is due from a member relating to any policy year.
2.12 - Pre-existing circumstances
No claim shall be allowed if in the opinion of the board the loss was due to circumstances existing at the time the ship was entered with the club.
2.13 - Obligation to sue and labour
A member must at all times take all reasonable steps to avoid or minimise any loss, damage or liability in respect of which he may be insured by the club. If a member is in breach of this obligation, the board may reject any claim by the member for reimbursement or reduce the sum payable by the club.
2.14 - Wilful misconduct
Unless the board otherwise decides, no claim is recoverable in respect of any losses which in its opinion have been incurred owing to the privity or wilful misconduct of an insured party.
2.15 - Sanctions
The member shall in no circumstances be entitled to recover from the club that part of any loss which is not recovered by the club from any reinsurance(s) by reason of any sanction, prohibition or adverse action against them by any state or international organisation or the risk thereof if payment were to be made by such reinsurers. This rule applies to any failure or delay in recovery by the club by reason of the reinsurers making payment into a designated account in compliance with the requirements of any state or international organisation.