Standard Club

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Provisions applicable to the insurance afforded by the Association Under Rule 2, Parts A and B Terms as to the measure of indemnity or otherwise affecting the recoverability of loss


Franchise or Deductible

The insurance under Rule 2 Part A shall not be subject to a franchise or deductible.

B.2 General Average and Salvage


The insurance under Rule 2 Parts A and B covers, on the terms set out below, the Entered Ship’s proportion of salvage, salvage charges and/or general average. In case of general average sacrifice of the Entered Ship the Insured Owner may recover the whole of the loss without first enforcing his right of contribution from other parties.


General average and salvage shall be adjusted according to the law and practice obtaining at the place where the adventure ends, as if the contract of affreightment contained no special terms upon the subject; but where the contract of affreightment so provides the adjustment shall be according to the York-Antwerp Rules 1974.


When the Entered Ship sails in ballast, not under charter, the provisions of the York-Antwerp Rules 1974 (excluding Rules XX and XXI) shall be applicable, and the voyage for this purpose shall be deemed to continue from the port or place of departure until the arrival of the Entered Ship at the first port or place thereafter other than a port or place of refuge or a port or place of call for bunkering only. If at any such intermediate port or place there is an abandonment of the adventure originally contemplated the voyage shall thereupon be deemed to be terminated.


No claim in respect of salvage, salvage charges or general average shall be recoverable from the Association unless the loss arose from a risk insured by the Association under Rule 2 Part A or Part B or the loss was incurred to avoid such a risk.


Claims for salvage, salvage charges and general average, when recoverable hereunder, are payable in full if the Entered Ship liable to contribution is insured under Rule 2 for her full contributory value. If the Entered Ship is not insured under Rule 2 for her full contributory value or if only a part or percentage thereof is insured, the sum recoverable from the Association shall be reduced in proportion to the under insurance. PROVIDED ALWAYS that: the Directors shall have the power to admit a claim without reduction, or to direct that it shall only be reduced to some lesser extent, if the Directors in their discretion shall see fit.

B.3 Collision


An Insured Owner shall not be entitled to recover loss of or damage to an Entered Ship arising out of a collision with another ship or out of contact with any fixed or floating object unless such loss or damage has been caused by a risk insured by the Association under Rule 2 Part A or Part B.


Should the Entered Ship come into collision with or receive salvage services from another ship belonging wholly or in part to the same Insured Owner, or under the same management, the Insured Owners shall have the same rights of recovery from the Association as if the other ship had been entirely the property of owners not interested in the Entered Ship. In case a dispute shall arise between the Insured Owner and the Association either on the liability for the collision or on the amount payable for the services rendered it shall be referred to arbitration by a sole arbitrator to be agreed upon between the Association and the Insured Owner.


If the Insured Owner shall become entitled to recover under Rule 2 Part A or Part B in respect of loss of or damage to the Entered Ship arising out of collision with another ship, claims in respect of such loss or damage shall be settled on the principle of cross liabilities as if the owners of each ship had been compelled to pay to the owners of the other of such ships such one-half or other proportion of the latter’s damages as may have been properly allowed in ascertaining the balance or sum payable by or to the Insured Owner in consequence of such collision.

B.4 New for Old

Average is payable without deductions new for old, whether the average be particular or general.

B.5 Unrepaired Damage


The measure of indemnity in respect of claims for unrepaired damage shall be the reasonable depreciation in the market value of the Entered Ship, at the end of the Policy Year in which the damage occurred, arising from such unrepaired damage, but not exceeding the reasonable cost of repairs.


In no case shall the Association be liable for unrepaired damage in the event of a subsequent total loss whether or not covered under the Entered Ship’s terms of entry in the Association.


The Association will not be liable in respect of unrepaired damage for more than the Insured Value of the Entered Ship at the end of the policy year in which the damage occurred.

B.6 Constructive Total Loss


In ascertaining whether the Entered Ship is a constructive total loss, the Insured Value shall be taken as the repaired value and nothing in respect of the damaged or break-up value of the Entered Ship or wreck shall be taken into account.


No claim for constructive total loss based upon the cost of recovery and/or repair of the Entered Ship shall be recoverable hereunder unless such cost would exceed the Insured Value. In making this determination, only the cost relating to a single accident or sequence of damages arising from the same accident shall be taken into account.

B.7 Freight or Passage Money

In the event of actual or constructive total loss no claim shall be made by the Association for freight or passage money, whether or not notice of abandonment has been given.


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