Rule 29 Additional Premiums

If an Entered Ship shall proceed to or be or remain in any Additional Premium Area the provisions of Rule 29 shall have effect.

29.1

The Insured Owner shall pay to the Association an Additional Premium or Premiums as follows:

29.1.1

If, by virtue of a Special Premium Notice, the area is an Additional Premium Area in respect of Queen’s Enemy Risks, an Additional Premium or Premiums at such rate or rates, and for such period or periods, as the Secretary of State shall from time to time determine;

29.1.2

If, by virtue of a decision of the Directors, the area is an Additional Premium Area in respect of risks other than the Queen’s Enemy Risks, an Additional Premium or Premiums at such rate or rates, and for such period or periods, as shall be agreed with the Managers.

29.2

The Insured Owner shall continue to be insured while the Entered Ship proceeds to or is or remains within such area.

29.3

It is a condition of the insurance given by the Association that the Insured Owner shall ensure that the Association is given written notice before the Entered Ship proceeds into the Additional Premium Area. If this condition is not fulfilled then:

29.3.1

If, by virtue of a Special Premium Notice, the area is an Additional Premium Area in respect of the Queen’s Enemy Risks, the Insured Owner shall not be entitled to any recovery from the Association in respect of any claim arising from any of the Queen’s Enemy Risks and arising out of events occurring in the Additional Premium Area;

29.3.2

If, by virtue of a decision of the Directors, the area is an Additional Premium Area in respect of the risks other than the Queen’s Enemy Risks, the Insured Owner shall not be entitled to any recovery from the Association in respect of any claim arising from any risks other than the Queen’s Enemy Risks and arising out of events occurring in the Additional Premium Area;

29.3.3

If the area is an Additional Premium Area in respect of both the Queen’s Enemy and the non-Queen’s Enemy Risks, an Insured Owner shall not be entitled to any recovery from the Association in respect of any claim arising out of events occurring in the Additional Premium Area.

29.3.4

PROVIDED ALWAYS that: the Directors may in their discretion decide to allow recovery from the Association which would otherwise be excluded by Rule 29.3 either in whole or in part. Where the Directors do not exercise their discretion to allow recovery as aforesaid, the Association shall return to the Insured Owner any Additional Premium which may have been paid pursuant to Rule 29.1.

29.4

The terms of the insurance of the Entered Ship during such period as is referred to in Rule 29.2 shall be those current for the Entered Ship for the relevant Policy Year. PROVIDED ALWAYS that: If, in respect of risks other than the Queen’s Enemy Risks, the Managers shall specify that any special terms, conditions, exceptions or limitations shall apply whilst an Entered Ship shall be or remain in any Additional Premium Area, then the terms shall be those which are current for the relevant Policy Year as modified by such special terms, conditions, exceptions or limitations.

29.5

An Insured Owner shall be entitled to give written notice to the Association at any time before the Entered Ship enters an Additional Premium Area stating that he desires the cover of the Entered Ship to be suspended or restricted while the Entered Ship is within the said Area. PROVIDED ALWAYS that: if the Entered Ship is mortgaged, an Insured Owner shall not be entitled to give any such notice unless he shall have obtained and produced to the Association the written consent of his mortgagees to the suspension or restriction of the cover.

29.6

If, where permitted by Rule 29.5, an Insured Owner gives notice in writing that he desires the cover of the Entered Ship to be suspended, then:

29.6.1

The cover given by the Association in respect of the Entered Ship so specified shall be suspended and the Insured Owner shall remain uninsured in respect of such Entered Ship during the period while the Entered Ship is and remains in the Additional Premium Area; and

29.6.2

The Insured Owner shall be under no liability to pay an Additional Premium in accordance with Rule 29.1 but shall not be entitled to any return of Contributions paid or payable in respect of the Entered Ship unless the Directors in their discretion otherwise determine.

29.7

Unless the Insured Owner gives notice of suspension before the ship enters the designated Additional Premium Area, the cover of the Entered Ship shall not be suspended but the provisions of Rules 29.1, 29.2, 29.3 and 29.4 shall be applicable.

29.8

If, where permitted by Rule 29.5, an Insured Owner gives notice in writing that he desires the cover of the Entered Ship to be restricted, then:

29.8.1

At any time before the Entered Ship enters an Additional Premium Area, the Insured Owner and the Managers may agree in writing the terms of the cover which shall be applicable to the Entered Ship while within such Additional Premium Area and the amount of the premium payable to the Association for such a period;

29.8.2

In the event that no such agreement in writing shall be reached between the Insured Owner and the Managers as is referred to in Rule 29.8.1 before the Entered Ship enters the Additional Premium Area then the cover of the Entered Ship shall not be restricted but the provisions of Rules 29.1, 29.2, 29.3 and 29.4 shall be applicable.