Section I: Unit 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 unit:

1. the unit 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 unit certification for the trade in question (hereafter ‘society/authority’)
2. 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
3. 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
4. The managers may inspect any document, and/or obtain any information relating to the maintenance of the unit's class or approval, in the possession of any society/authority with which the unit 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.
5. The member must comply with all statutory requirements of the unit’s flag state and/or any state exercising jurisdiction over the unit 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  unit’s flag state and/or any state exercising jurisdiction over the unit, including those in respect of the ISM and ISPS codes.

15.2

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 unit risk review in respect of an applicant’s or member’s unit within a specified period. In the light of such unit 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.

15.3.2

If the applicant’s or member’s ship is not made available for a unit 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 unit 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 unit up for more than 90 consecutive days, he must, unless otherwise agreed by the managers, notify them of his intention to operate the unit at least seven days before she resumes operating. The managers may then require the member to have the unit undergo a unit risk review by a surveyor appointed by them. In the event that the member does not notify the club of his intention to operate the unit, 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: 

1. terminate the member’s entry with immediate effect or from a time and date specified by a notice in writing to the member; or
2. 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 unit 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.