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03INTRODUCTION
enG
ruleS Book2014
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GeneRAlTurk P ve i sigorta A.s. Adress: Muhittin Ustundag Cad. No:21 Kosuyolu – Kadıkoy Istanbul / Turkiye Telephone: 0090 216 545 03 00 Fax: 0090 216 545 03 01 E-mail: [email protected]
GeneRAl MAnAGeR Mr. Remzi Ufuk Teker Telephone: 0090 216 545 03 00 Mobile: 0090 533 767 86 44 E-mail: [email protected]
AssisTAnT GeneRAl MAnAGeR / FinAnCe Mr. dr. Abdullah kara Telephone: 0090 216 545 03 00 Mobile: 0090 533 638 61 41 E-mail: [email protected]
UndeRwRiTinG Mr. Umut Can Telephone: 0090 216 545 03 00 Mobile: 0090 530 391 11 49 E-mail: [email protected]
ClAiM Ms. Burcu Berrak Telephone: 0090 216 545 03 00 Mobile: 0090 533 354 16 58 E-mail: [email protected]
loSS PreVenTIon Mr. Cpt. deger Pamuk Telephone: 0090 216 545 03 00 Mobile: 0090 533 795 54 02 E-mail: [email protected]
TeAM AdMInISTrATor Ms. Tugce Gencalp Telephone: 0090 216 545 03 00 Mobile: 0090 533 293 55 11 E-mail: [email protected]
ACCoUnTAnT Mr. serkan koc Telephone: 0090 216 545 03 00 Mobile: 0090 538 445 60 61 E-mail: [email protected]
CredIT ConTrol wMs. Jale Inan Telephone: 0090 216 545 03 00 Mobile: 0090 533 529 20 74 E-mail: [email protected]
ConTACT
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deFInITIonS 48
SeCTIon A: InSUrAnCe 52
SeCTIon B: SCoPe oF CoVer 53
SeCTIon C: rISkS CoVered 54
Crew Injury, Illness or deathRepatriation Substitute expenses loss of effectsShipwreck Unemployment Indemnity Port expensesPassengersThird Parties Stowaways and refugees Port Charges life salvageCollisions with other Shipsdamage to other Ships ( other than by collision ) Pollution damage to Property ( other than by collision ) Towage of The shipTowage by The ShipWreck liabilitiesQuarantine expensesCargo liabilitiesUnrecoverable General Average ContributionsShip’s Proportion of General AverageFinesenquiry expensesInterference by lawful AuthoritiesConfiscation of Ship by Customs Authoritiessue and labour
SeCTIon d: eXClUded rISkS 61
risk Covered by Hull And War risks Policiesdouble InsuranceWar risksRadioactive ContamniationGuarantees, Undertakings and Certificates Unlawful Sanctionable and Hazardous Trades
SeCTIon e: eXClUded loSSeS 63
Hull damageequipment damagerepairsloss of HiredetentionCancellationBad debtsPollutionsalvageSpecialist operationsdrilling and Production operationsHeavy lift ShipsSubmarine diversnon-Marine PersonnelWaste disposalPaperless Trading
IndeX
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IndeX
SeCTIon F: SCoPe oF reCoVerY lIMITS 66net losslimits of recoveryAssured’s PropertyAmounts owing to the InsurerInterestPay to be PaiddeductiblesWilful Misconductobligation to Sue and labourwaiver of subrogationSanctions
SeCTIon G: oBlIGATIonS WITH reGArd To ClAIMS 69notificationdocumentationdevelopmentssettlementrecoveryevidencePowers of the Insurer relating To The Handling of Claimseffect of non-ComplianceSecurity
SeCTIon H: APPlICATIon And enTrY 71Applicationentryimmediate TerminationCertificates of entryJoint AssuredsCo-AssuredsInsured PartiesCharterer named as Joint Assured or Co-AssuredGroup entriesBridge of WarrantyAssignment
SeCTIon I: SHIP STAndArdS And SUrVeYS 74Classification and Condition of Shipsentry Surveysroutine or Claim Surveys and reviewsSurveys Following lay-Upeffect on Terms of entryeffect on non-Compliance
SeCTIon J: PerIod oF InSUrAnCe 75Policy YearInsurers noticePro-Rata PremiumCessation of InsuranceCancellation of Insuranceeffect of Cessation of Insuranceeffect of Cancellation of Insurance
SeCTIon k: PreMIUMS 77Premiumlaid-Up returnsPaymentlien
SeCTIon l: GenerAl TerMS And CondITIonS 78Powers of Board and Insurersdisclosurenoticeslaw and Jurisdiction
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In the rules the following words and expressions have the following meanings:
The Rules: theP&Iclassrulesoftheinsurerforthetimebeinginforce.
The Articles: thearticlesforthetimebeingoftheinsurer.
The Insurer: TURKPVEISIGORTAA.S.
Affiliated or Associated Charterer: whereboththeassuredorajointassuredandthechartererareundercommonowner-
shiportheassuredorajointassuredorthechartererrespectivelyeitherownsatleast50%ofthesharesinandvotingrightsoftheothersorownsaminorityofthesharesintheothersandcanprocurethatitismanagedandoperatedinaccordancewithitswishes.
Applicant: anypersonseekingtoenterashiponhisownoranother’sbehalforonwhosebehalfanapplicationismade.
Assured: everyownerorotherpersonwhobecomesandisforthetimebeinganassuredoftheinsurer.
Cabotage Trade: anysinglevoyagebetweentwoTurkishports,regardlessoftheroutechosenbytheassured.
Cargo: goods(otherthanacontainersuppliedbyoronbehalfofanassured)carriedunderacontractofcarriage.
Certificate of Entry: adocumentissuedpursuanttorule12.1includinganyendorsementthereto.
Co-assured: anypersonorpersonsotherthananassuredor jointassured,namedonthecer-tificateofentryinrespectofanassured’sentryinaccordancewithandsubjecttorules13.5–13.7.
Container: anydeviceorreceptacleinoronwhichcargoiscarriedandwhichiseitherdesignedtobe,orexpectedtobe,carriedintheship.
Crew: anypersonemployedaspartofaship’scomplementunderthetermsofacrewagree-mentorothercontractofserviceoremploymenttoserveonboardtheship,whetherornotonboardthatship.
Demise or Bareboat Charterer: achartererwhohassolepossessionoftheshipandsolecontrolofhermanagement
andcrew.
Effects: includesclothes,documents,navigationandothertechnicalinstrumentsandtools,butdoesnotincludevaluables.
Fines: includespenaltiesandotherimpositionssimilarinnaturetofines.
Hague Rules: theInternationalConventionfortheUnificationofCertainRulesrelatingtoBillsofLad-ingsignedatBrusselson25August1924.
deFInITIonS
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deFInITIonS
Hague-Visby Rules: theHagueRulesasamendedbytheProtocolConventionsignedatBrusselson23Feb-ruary1968.
Hull Policies: thepoliciescoveringthehullandmachineryofaship,includingexcessliabilitypolicies.
Insured Party: theassured,anyjointassuredandanyco-assuredinrespectofanentry.
Liabilities: liabilities,reasonablecostsandexpensesincurredbyanassured.
Owner: includesanowner,ownersinpartnership,ownersholdingseparatesharesinseveralty,partowner,trustee,mortgagee,charterer,operatororinsurer,builder,insurerorrein-surerwhoentersashipintheinsurerorwhoisajointassuredorco-assured.
Passenger: anypersoncarriedorintendedtobeorhavingbeencarriedonboardtheshipbyvirtueofanypassengercontract.
Ship: anyship,boat,hydrofoil,hovercraftoranyotherdescriptionofvessel,whethercom-pletedorunder construction, (includinga lighter, bargeor similar vesselhowsoeverpropelledbutexcludingafixedplatformorafixedrig)usedorintendedtobeusedforanypurposewhatsoeverinnavigationorotherwiseon,under,overorinwateroranypartofsuchship,oranyproportionofthetonnagethereoforanysharetherein.
The Ship: ashipwhichhasbeenenteredbytheinsurerforinsurance.
Tonnage: thegrosstonnageofashipasstatedintheCertificateofRegistryorotherofficialdocu-mentrelatingtotheregistrationoftheship.
Towage: any operation in connectionwith the holding, pushing, pulling,moving, escorting orguidingoforstandingbyashiporobject.
Unlawful, Prohibited or Sanctionable: unlawful,prohibitedorsanctionableunderUnitedNationsresolutionsorthetradeor
economicsanctions,lawsorregulationsoftheEuropeanUnion,UnitedKingdom,Unit-edStatesofAmerica,theplaceofincorporationordomicileoftheassuredortheship’sflagstate.
Valuables: money,negotiablesecurities,gold,silverware,jewelry,ornamentsorworksofart.
Wilful Misconduct: anactintentionallydoneoradeliberateomissionbyaninsuredpartywithknowledgethattheperformanceoromissionwillprobablyresultininjuryorloss,oranactdoneoromittedinsuchawayastoallowaninferenceofarecklessdisregardfortheprobableconsequences.
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• References to rule numbers shall include any sub-paragraphs of that rule.• Headings and sub-headings are for reference only and do not affect the construction of any rule.• In case any of the provisions of this Contract becomes invalid, this will not affect the validity of the Contract’s other remaining provisions during all the Contract period, unless the provision that became valid does not sustain the implementation of the contract or makes implementation impossible. An article that becomes null and void, will affect the mutual matters which are imposed to the opposite party and make them invalid and non-operative.
04SECTIONS
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SeCTIon A: InSUrAnCe
1.1 Therules,whicharesubjecttothearticles,containthetermsuponwhichP&Icov-erisgivenbytheinsurer.
1.2 Thestandardrisksagainstwhichanassuredisinsuredaresetoutinrule3.
1.3.1 Anassuredmaybeinsuredinrespectofrisksotherthanthosesetoutinrule3,orinrespectofrisksotherwiseexcluded,wheresuchriskshavebeenagreedbytheinsurers.
1.3.2 Anysuchrisksarecoveredsubjecttotheterms,conditions,limitationsandexclu-sionsoftherules.
1.3.3 Theinsurermayreinsureanysuchrisk.
1.4 Noact,omission,courseofdealingorforbearanceorreimbursementbytheinsurershallbetreatedasanyevidenceofawaiveroftheinsurer’srightsundertherules.
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SeCTIon B: SCoPe oF CoVer
2.1 The liabilities in respectofwhichanassured is insuredmusthavearisenbyreasonoftheassured’sinterestintheship,outofeventsoccurringduringthepolicyperiodandinconnectionwiththeoperationoftheship.
2.2 Wheresuchliabilitieswouldnothavearisenbutforthetermsofanycontractorindemnity,thecontractorindemnitymusteithercorrespondtoanyspecificre-quirementssetoutinrule3orrule5,orhavebeenapprovedbytheinsurer.
2.3 An assured’s insurance is subject to the warranties, conditions, exceptions,limitationsandothertermssetoutintherulesandthecertificateofentry.
2.4 Anassuredisnotinsuredforanyliabilitiesincurredbyhiminacapacityotherthanthat inwhichhehasentered intothecontractof insurancewiththe in-surer.
2.5 Thispolicyofinsuranceisonlyapplicabletocabotagetrade.Unlessotherwiseagreedintheinsurancecontract,thereshallbenorecoverybytheassuredfromtheinsurerforanyliabilitiesincurredbytheassuredotherthanwhenengagedincabotagetrade.
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Crew injury, Illness or Death:
Repatriation:
Substitute Expenses:
Loss of Effects:Shipwreck Unemployment Indemnity:
Port Expenses to Crew:
Passengers:
Third Parties:Stowaways and Refugees Port Charges:
SeCTIon C: rISkS CoVered
3.1.1 Liabilitiesinrespectofcrewinjury,illnessordeath.
3.1.2.1 Liabilitiesinrespectofcrewrepatriation.
3.1.2.2 LiabilitiesinrespectofrepatriationunderGuidelineB2.5ofRegulation2.5ofthe2006MaritimeLabourConvention(MLC2006)ordomesticlegislationbyastatepartyimplementingMLC2006.
exclusion to 3.1.2 Liabilitiesarisingoutoftheterminationofanyagreement,orthesaleoftheship,or
anyotheractoftheassuredinrespectoftheship.
3.1.3 Expensesnecessarilyincurredinsendingsubstitutestoreplace crewwhohavedied,areincapacitatedorwhohavebeenleftashoreinconsequence
ofinjury,illness,ordesertion.Wagesareonlyrecoverablewhenpayabletosubsti-tutes,whileawaitingandduringrepatriation.03
3.1.4 Lossofcreweffects,excludingvaluables.
3.1.5 Wagesorothercompensationpayabletocrewarisingoutof theactualorconstructivetotallossoftheship.
3.1.6 Portandotherchargesassetoutinrule3.4incurredinrelationtocrew.
3.2.1 Liabilitiesinrespectoftheinjury,illnessordeathofapassenger.
3.2.2 Liabilitiestopassengersarisingoutofacasualtywhiletheyareonboardtheship.Forthepurposeofthisrule‘casualty’meanscollision,stranding,explosion,fireoranyothercauseaffectingtheconditionoftheshipsoastorenderherincapableofsafenavigationtoherintendeddestination;orathreattothelife,healthorsafetyofpassengers.
3.2.3 Lossofordamagetoapassenger’sbaggageoreffects,excludingvaluables.
3.2.4 Inrespectofanyliabilitiesarisingunderrule3.2,thepassengercontractmustrelievetheassuredofliabilitytothemaximumextentpermittedundertheappli-cablelaw.
exclusions to rule 3.2 1)Liabilitiesarisingoutofthecarriageofapassengerbyairunlesstheyoccur: a)duringrepatriationofaninjuredorsickpassenger,orfollowingacasualtyto
theship;or b)duringexcursionsfromtheship,subjecttoexclusion(2)below.
2)Contractual liabilitiesarising in respectofapassengerwhileonanexcursionfromtheshipincircumstanceswhereeither:
a)aseparatecontracthasbeenenteredintobythepassengerfortheexcursion,whetherornotwiththeassured;or
b)theassuredhaswaivedanyrightsofrecourseagainstanysub-contractororotherthirdpartyinrespectoftheexcursion.
3.3 Liabilitiesinrespectoftheinjury,illnessordeathofanypersonotherthancreworpassengers.
3.4 Portandotherchargessolelyincurredforthepurposeoflandingstowawaysor
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Life Salvage :
Collision with of Other Ships :
Damage to Other Ships (other than by collision) :
Pollution:
refugees,orotherssavedatsea,orlandingorsecuringthenecessarytreatmentforaninjuredorsickperson,otherthancrew,includingthenetlosstotheassuredinrespectoffuel,insurance,wages,storesandprovisionsincurredforsuchpurpose.
3.5 Sumsduetoathirdpartybecausehehassavedorattemptedtosavethelifeofanypersononorfromtheship.
3.6.1 One-fourth,orsuchotherproportionagreedbythemanagers,oftheliabilitiesaris-ingoutofacollisionotherthanthosesetoutinrule3.6.3.
3.6.2 Theliabilitiesarisingoutofacollisionrelatingto: 1)theraising,removing,destroying,lightingormarkingofwrecks,cargoorother
property 2)damagedonebysuchothershiptoanypropertynotbeinganothershiporany
cargoorotherpropertytherein 3)lossofordamagetocargoorotherpropertybeingcarriedintheship;ifthecargo
isthepropertyoftheassured,itisdeemedtobefullyinsured,andtheassuredisentitledonlytorecoverfromtheinsurertheamountbywhichsuchindemnityex-ceedsthesumrecoverableundersuchinsurance
4)theinjury,illnessordeathofanypersononboardsuchothership 5)pollutionliabilitiesasmaybecoveredunderrule3.8.
3.6.3 Thatpartoftheassured’scollisionliabilitywhichexceedsthesumrecoverableun-derthehullpoliciessolelybyreasonofsuchliabilityexceedingthevaluationoftheshipinthosepolicies.However,theinsurermaydeterminethepropervalue(beingthemarketvalueoftheshipwithoutcommitment)forwhichtheshipshouldhavebeeninsuredunderthehullpolicies,andtheinsurershallpayonlytheexcessoftheamountwhichwouldhavebeenrecoverableiftheshiphadbeeninsuredthereunderatsuchvalue.
3.6.4 Therewillbenorecoveryfromtheclubinsofarassuchcollisionliabilitiesarenotrecoverableunderthehullpoliciesbyreasonofanybreachofsuchpolicies.
3.6.5 Ifbothshipsaretoblamethen,unlesstheliabilityoftheownersofoneorbothofthembecomeslimitedbylaw,claimsshallbesettledupontheprincipleofcross-liabilities.
3.7 Liabilitiesforlossofordamageto,delayto,interferencewithrightsinrelationto,orliabilityforsalvageorwreckremovalcosts incurred in respect of, anyothershiporanycargoorotherpropertythereincausedotherthanbycollisionwiththeship.
3.8.1 Liabilitiesarisingoutofthedischargeorescapefromtheshipofanysubstance.
3.8.2 Thecostsofanymeasuresreasonablytakenafterthedischargeorescapeofanysubstancefromtheshipforthepurposeofavoidingorminimizinganyresultingloss,damageorcontaminationorcleaningupanyresultingpollution,togetherwithlia-bilityforanylossofordamagetopropertycausedbyanymeasuressotaken.
3.8.3 Thecostsofanymeasuresreasonablytakentopreventanimminentdangerofthedischargeorescapefromtheshipofanysubstance.
3.8.4 Extraordinaryliabilitiesincurredasaresultofcomplyingwithanyorderordirectiongivenoranymeasurestakenbyanyauthorityinconnectionwiththeshiporhercargoforpreventingorreducingpollutionortheriskthereofbytheescapefromtheshipofanysubstance,excludinganypermanentstructuralalterationtotheship.
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Damage to Property (other than by pollution ):
Towage of the Ship:
Towage by the Ship:
Wreck Liabilities:
3.8.5 Liabilities under a salvage agreement to compensate salvors forwork done ormeasurestakentopreventorreducepollutionortheriskthereofbytheescapefromtheshipofanysubstance.
3.8.6 Liabilitiesincurredaftertheshiphasbecomeawreckarisingfromthedischargeorescapefromsuchwreckofanysubstance.
3.8.7 Liabilitiesinrespectofpollutionwheresuchliabilitiesariseunderrules3.6,3.7,3.9,3.10,3.11and3.20.
exclusions to rule 3.8 Thereshallbenorecoveryinrespectof: 1)liabilitieswhichbutforthetermsofanycontractofcarriagewouldhavebeen
allowedingeneralaverageadjustedundertheun-amendedYorkAntwerpRules1994
2)liabilities,lossordamageincluding,withoutlimitation,liabilityforthecostofanyremedialworksorclean-upoperations,arisingasaresultofthepresencein,ortheescapeordischargeorthreatofescapeordischargefrom,anylandbaseddump,site,storageordisposal facilityofanysubstancepreviouslycarriedontheshipwhetherascargo,fuel,storesorwasteandwhetheratanytimemixedinwholeorinpartwithanyothersubstancewhatsoever.
3.9 Liabilitiesforlossofordamageto,orinterferencewithrightsinrelationto,anypropertynotbeinganyshiporanycargoorotherpropertythereinorthecargoorotherpropertyintendedtobeorbeingorhavingbeencarriedintheship.
3.10.1 Liabilitiesunderthetermsofacontractforthetowageoftheshipwhich: 1)relatetotheriskssetoutintheotherparagraphsofrule3; 2)ariseunderacontractfortowageundertakenintheordinarycourseoftradingfor
thepurposeofentering,leavingormanoeuvringwithinaport;or 3)ariseunderacontractforthetowageofcargobarges;or 4)ariseunderacontractwhichhasbeenapprovedbytheinsurer.
3.10.2 Liabilitiesunderthetermsofacontractfor,orarisingoutof,thetowagebytheshipofanyshiporobjectwhere:
1)suchliabilitiesrelatetotheriskssetoutintheotherparagraphsofrule3;and 2)thetowageisundertakenforthepurposeofsavinglifeorpropertyatsea;or 3)theshipistowingunderaUnitedKingdom,NetherlandsorScandinavianstand-
ardtowagecontract,thecurrentLloyd’sstandardformofsalvageagreement–nocurenopay,Towcon,Towhirestandardforms,allinmateriallyun-amendedform,oranyotherstandardformtowagecontractcontainingequivalentorbetterprotectionthanthesaidstandardconditionsorstandardforms,ortowhichtheinsurermay,onsuchtermsasitrequires,agreeinwriting.
3.11.1 Liabilitiesfororincidentaltotheraising,removal,destruction,lightingormarkingofthewreckoftheship.Thevalueofthewreckandallstoresandmaterialssavedmustbedeductedfromanyreimbursementandonlythebalanceisrecoverable.
3.11.2 Liabilitiesresultingfromtheactualorattemptedraising,removalordestructionofthewreckoftheship,cargooranyotherpropertyonboard.
3.11.3 Liabilitiesresultingfromthepresenceorinvoluntaryshiftingofthewreckoftheship,cargooranyotherpropertyonboardcausedbythecasualtywhichledtothelossoftheship,cargooranyotherpropertyonboard.Anassuredisnotentitledtobereimbursedbytheinsurerinrespectofanyliabilityincurredmorethantwoyearsaftertheship,cargooranyotherpropertyonboardbecameawreck.
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Quarantine Expenses:
Cargo Liabilities:
3.11.4 Liabilitiesfororincidentaltotheraising,removal,destructionordisposalofcargooranyotherpropertywhichisbeing,orhasbeen,carriedontheship.Thevalueofallcargooranyotherpropertysavedaccruingtotheassuredmustbedeductedfromanyreimbursementandonlythebalanceisrecoverable.
exclusions to rule 3.11 1)Thereshallbenorecoveryiftheassuredhas,withouttheagreementofthein-
surer,transferredhisinterestinthewreckotherthanbyabandonment,atanytimeaftertheshipbecameawreck.
2)Thereshallbenorecoveryunlesstheraising,removal,destruction,lightingormarkingofthewreck,ortheraising,removal,destructionordisposalofcargooranyotherproperty,wascompulsorybylaworwasundertakenwiththeagreementoftheinsurer.
(3)Anassuredisnotentitledtoreimbursementinrespectofanyliabilityunless he took reasonablemeasures to raise, remove, destroy, light ormarkthewreck,orraise,remove,destroyordisposeofcargooranyotherproperty.
4)Thereshallbenorecoveryunlesstheassuredhascontractedforremovalofthewreckontermswhichhavebeenapprovedbytheinsurer.
5)Thereshallbenorecoveryinrespectofliabilitiesfororincidentaltotheraising,removal,destruction,lightingormarkingofthewreckoftheshipunlesstheshipbecameawreckasaresultofacasualty.Forthepurposeofthisrule‘casualty’meanscollision,stranding,explosion,fireorsimilarfortuitousevent,butexcludesanywreckcausedbyderelictionorneglect.
3.12 Expensesincurredasadirectconsequenceofanoutbreakofinfectiousdiseaseontheship,includingquarantineanddisinfectionexpenses,andthenetlosstotheas-suredinrespectoffuel,insurance,wages,stores,provisions,cargohandlingandportcharges.
exclusion to rule 3.12 Thereshallbenorecoveryifatthetimetheshipwascharteredto,orwasunder
ordersfromtheassuredorherinsurerto,proceedtoaportitwasknown,orshouldintheinsurer’sviewreasonablyhavebeenanticipated,thatshewouldbequarantined.
3.13.1 Liabilitiesforlossorshortageof,ordamageto,orotherresponsibilityinre-spectof,cargoorotherpropertyintendedtobe,orbeing,orhavingbeencarriedin,onorbytheshiparisingoutofanybreachbytheassured,orbyanypersonforwhoseacts,neglectordefaulthemaybelegallyliable,ofhisobligationproperlytoload,handle,stow,carry,keep,carefor,dischargeanddeliversuchcargoorprop-erty,oroutofunseaworthinessorunfitnessoftheship.
3.13.2 Theextracostsincurredbytheassured: 1)intheactualdischargeordisposalofdamagedorworthlesscargo,providedthat
hecanonlyrecoversuchcostsifhehasnorecoursetorecoverthemfromanyotherparty;or
2)asadirectconsequenceofthefailurebycargointereststocollectorremovecargofromtheplaceofdischargeordelivery,providedthathecanonlyrecoversuchcoststotheextenttheyexceedtheproceedsofthesaleofthecargoandhehasnorecoursetorecoverthemfromanyotherparty.
3.13.3 Liabilitiesforlossofordamagetoorresponsibilityinrespectofcargoorotherpropertybeingcarriedbymeansoftransportotherthantheship,forwhichtheassuredmaybe liableundera contractof carriage,approvedby the insurer,providingforcarriagepartlytobeperformedbytheship.
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exclusions to rule 3.13 Thereshallbenorecoveryinrespectofliabilitiesarisingoutof: 1) the carriageof cargoon contractual termsmoreonerous to the carrier than
thoseoftheHagueorHague-VisbyRules,orequallywideexemptionsofthecarrierfromliability,savewhereitisonsuchtermssolelybyreasonoftheincorporationbylawoftheHamburgRulesorpartsthereof,totheextentthattheliabilitiesexceedthosewhichwouldhavebeenincurredhadthecontractbeenontheHague,Hague-VisbyorHamburgtermsasapplicable,unlessthecontracthasbeenapprovedinadvancebytheinsurer
2) adeviation,orasaconsequenceofadeviation,fromthecontractuallyagreedvoyage,whichmaydeprivetheassuredoftherighttorelyondefensesorrightsoflimitationwhichwouldotherwisehavebeenavailabletohim,unlessthe insurerhaveagreedthatcovermaycontinueunprejudiced
3) thefailuretoarriveorlatearrivaloftheshipataportofloading,orthefailuretoloadordelayinloadinganyparticularcargootherthanunderabillofladingalreadyissued
4) thedischargeofcargoataplaceotherthanthatstipulatedinthecontractofcarriage
5) thedeliveryofcargocarriedunderanegotiabledocumentoftitlewithoutpro-ductionofthatdocumentbythepersontowhomdeliveryismadeexceptwherethecargohasbeencarriedunderthetermsofanon-negotiabledocument,andhasbeenproperlydeliveredasrequiredbythatdocument,notwithstandingthattheassuredmaybeliableunderthetermsofanegotiabledocumentoftitleissuedbyoronbehalfofapartyotherthantheassuredprovidingforcarriageinpartupontheshipandinpartuponanothershiporbyanothermodeoftransport
6)deliveryofcargocarriedunderanon-negotiabledocumentwithoutproductionofsuchdocumentbythepersontowhomdeliveryismade,wheresuchproductionisrequiredbytheexpresstermsofthatdocumentorthelawtowhichthatdocument,orthecontractofcarriagecontainedinorevidencedbyit,issubject,exceptwheretheassuredisrequiredbyanyotherlawtowhichheissubjecttodeliverorrelin-quishcustodyorcontrolofthecargo,withoutproductionofsuchdocument
7)theissueofadocumentcontainingorevidencingthecontractofcarriagerecord-ingtheloadingorshipmentorreceiptforshipmentonadateotherthanthedateonwhichthecargowasinfactloaded,shippedorreceived
8)adocumentcontainingorevidencingthecontractofcarriage issuedwiththeknowledgeoftheassuredorhismasterwithanincorrectdescriptionofthecargooritsquantityorcondition
9)thecarriageoffinishedsteelproducts,unlesstheassuredtheassuredhasar-rangedforapreloadingsurveytobecarriedoutbyaninsurer-approvedsurveyorateachportofshipment,andthebillsofladinghavebeenclausedinaccordancewiththefindingsofthesurveyorastotheconditionofcargoatthetimeofloading
10)lossof,damagetoorresponsibilityinrespectofcargocarriedondeckunlessitiscarriedunderacontractofcarriagewhichpermitsittobecarriedondeckandthecontractstatesthatitisbeingsocarriedandeitheritexoneratestheassuredfromallliabilityinrespectofsuchcargooritappliestheHagueorHague-VisbyRulestosuchcargo,oritiscustomarytocarrysuchcargoondeck,orsuchcarriagehasbeenapprovedbytheinsurer
11)thecarriageofvaluables 12)goodscarriedunderadocumentcontaininggoodscarriedunderadocument
containingorevidencingthecontractofcarriagewherethevalueperunit,pieceorpackagehasbeenstatedtobeinexcessofUS$2,500,ortheequivalentinanyothercurrency,whichmaydeprivetheassuredoftherighttorelyondefencesorrightsoflimitationwhichwouldotherwisehavebeenavailabletohim,totheextentthatsuchliabilitiesexceedthatsum.
3.14 Theproportionofgeneralaverage,specialchargesorsalvagewhichtheassured
Hague and Hague-Visby Rules:
Deviation:
Loading:
Discharge:Documentation and Delivery:
Finished Steel Products:
Deck Cargo:
Valuables:
Unrecoverable Contributions:
Value Declared On Bill of Lading:
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isorwouldbeentitledtoclaimfromcargoorfromanotherpartywhichisnotrecov-erablesolelybyreasonofabreachofthecontractofcarriage.
exclusions to rule 3.14 1)Ifthecontributionisirrecoverablebyreasonofadeviation,rule3.13exclusion(2)
appliestoanyclaimunderrule3.14. 2)Theinsurermayrejectorreduceaclaimifthecontractofcarriageunderwhich
thecargowasbeingcarrieddidnotincludeArticleIVRule(2)(a)oftheHagueRules,asamendedbytheHague-VisbyRules,oranequallywideexemptionfromliability.
3.15 Ship’sproportionofgeneralaverage,specialchargesorsalvagenotrecov-erableunderthehullpoliciesbyreasonofgeneralthevalueoftheshipbe-ingassessedatasoundvalueinexcessoftheinsuredvalueunderthehullpolicies.Theinsurermaydeterminethepropervalue(beingthemarketval-ue of the shipwithout commitment) forwhich the ship should have beeninsuredunderthehullpolicies,andtheinsurershallpayonlytheamountoftheship’sproportionofgeneralaveragewhichwouldnothavebeenrecov-erable under the hull policies, if the ship had been insured thereunder atsuchvalue.
3.16 Finesimposedontheassuredoruponanyotherpersonwhomhereasonablyreim-bursesorislegallyliabletoindemnify:
3.16.1 forshortoroverdeliveryofcargo,orforfailuretocomplywithregulationsconcern-ingthedeclarationofgoodsorthedocumentationofcargo.
3.16.2 forsmugglingorbreachofanycustomsorimmigrationlaworregulation.
3.16.3 inrespectoftheaccidentalescapeordischargeofanysubstance,solongastheassuredisinsuredforpollutionliabilitiesbytheinsurersubjecttohistermsofentryandtherelevantlimitofliability.
exclusions to rule 3.16 Thereshallbenorecoveryinrespectofafineimposedfororarisingoutof:
1)claimsarisingfromanyactoftheassuredinbreachofthemandatoryrulesandregulationsofTurkishLaw,moralvalues,publicorderorrightsofpersonality
2)overloading 3)illegalfishing 4)anypersonalactordefaultonthepartoftheassuredorhismanager 5)wilfulmisconductonthepartofanypersonunlesstheassuredhasbeencom-
pelledbylawtopaythefine.
3.17 Costsandexpensesincurredinprotectinganassured’sinterestsbeforeaformalenquiryintoacasualtytotheshipwhere,intheopinionoftheinsurer,aclaimupontheinsurerislikelytoarise,orinothercasesastheinsurerdetermines.
3.18 Costsandexpensesincurredinprotectinganassured’sinterestsincasesofinterferencebyanylawfulauthorityofanycountry,butonlytotheextentthatthosecostsandexpenseshavebeenincurredwiththeprioragreementofthein-surer.
3.19 Lossoftheshipfollowingitsconfiscationbyanylegallyempoweredbodyinrespectoftheinfringementofanycustomslaworregulationbutonlyifandtotheextentthat,notwithstandingrule5.1,the insurerdecidesthattheassuredshallrecoverfromtheinsurer.
Ship’s Proportion of General Average:
Fines:
Enquiry Expenses:
Interference by Lawful Authorities:
Confiscation of Ship by Authorities:
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exclusions to rule 3.19 1) claimsarisingfromanyactoftheassuredinbreachofthemandatoryrulesand
regulationsofTurkishLaw,moralvalues,publicorderorrightsofpersonality 2)Theamountrecoverableshallnotexceedthemarketvalueoftheshipatthedate
oftheconfiscation. 3) Theassuredmusthavesatisfiedtheinsurerthathetookallsuchstepsasappear
totheinsurertobereasonabletopreventtheinfringementofthecustomslaworregulationgivingrisetotheconfiscation.
4) Noclaimwillbeconsideredbytheinsureruntiltheassuredhasbeendeprivedofhisinterestintheship
3.20 Extraordinarycostsandexpenses,includinglegal,survey,expertandcorrespond-entfees,reasonablyincurredonoraftertheoccurrenceofanyeventliabletogiverisetoaclaimupontheinsurerandincurredsolelyforthepurposeofavoidingorminimizinganyliabilityagainstwhichtheassuredisinsuredbytheinsurer,butonlyto the extent that those costs and expenses have been incurredwith the prioragreementoftheinsurer.
exclusion to rule 3.20 Unlesstheinsurerotherwisedecides,thereshallbedeductedfromsuchcostsand
expensesthedeductiblewhichwouldhavebeenapplicablehadtheliabilityorex-penditureagainstwhichtheassuredisinsuredbytheinsurerbeenincurred.
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4.1 Thereshallbenorecoveryfromtheinsurerinrespectofanyliabilitieswhichwouldberecoverablefromunderwritersiftheshipwere,atthetimeoftheincidentgivingrisetosuchliabilities,fullyinsuredunderhullpoliciesontermsequivalenttothoseoftheusualLloyd’smarinepolicywiththeInstituteTimeClauses(Hulls)1.10.83attachedortotheextentthattheshipwasfullyinsuredtoapropervalue(beingthemarketvalueoftheshipwithoutcommitment)underaP&Iwarriskspolicyinclud-ingpiracy risks. The insurermaydetermine theproper value forwhich the shipshouldhavebeeninsuredundertheP&Iwarriskspolicy.Unlessotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectofanyfranchiseordeductiblebornebytheassuredundersuchpolicies.
4.2 Unlessotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectofanyliabilitiesrecoverableunderanyotherinsuranceorwhichwouldhavebeensore-coverable:
1)apartfromanytermsinsuchotherinsuranceexcludingorlimitingliabilityonthegroundofdoubleinsurance;and3
2)iftheshiphadnotbeenenteredintheinsurerwithcoverfortheriskssetoutintherules.
4.3 Thereshallbenorecovery inrespectofanyliabilities, irrespectiveofwhetheracontributorycauseofthesamebeingincurredwasanyneglectonthepartoftheassuredorhisservantsoragents,incurredasaresultof:
1)war,civilwar,revolution,rebellion,insurrectionorcivilstrifearisingtherefrom,oranyhostileactbyoragainstabelligerentpower,oranyactofterrorism;
2)capture,seizure,arrest,restraintordetainment(barratryandpiracyexcepted)andtheconsequencesthereoforanyattemptthereat;
3)mines,torpedoes,bombs,rockets,shells,explosivesorothersimilarweaponsofwar,savethatthisexclusiondoesnotapplytoliabilitieswhicharisesolelybyrea-sonof:
a)thetransportofanysuchweaponswhetheronboardtheshipornot;or b)theuseofanysuchweapons,eitherasaresultofgovernmentorderorwiththe
agreementoftheinsurer,wherethereasonforsuchusewastheavoidanceormitigationofliabilitieswhichwouldotherwisefallwithinthecovergivenbytheinsurer.
Intheeventofanydisputeastowhetherornotanyactconstitutesanactofterror-ism,thedecisionoftheinsurershallbefinal.
4.4 Thereshallbenorecovery inrespectofanyliabilities, irrespectiveofwhetheracontributorycauseofthesamebeingincurredwasanyneglectonthepartoftheassuredorhisservantsoragents,directlyorindirectlycausedbyorarisingfrom:
1)ionizingradiationsfromorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwasteorfromthecombustionofnuclearfuel;or
2)theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanynuclearinstallation,reactororothernuclearassemblyornuclearcomponentthereof;or
3)anyweaponordeviceemployingatomicornuclearfissionand/orfusionorotherlikereactionorradioactiveforceormatter;or
4)theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanyradioactivematter.
4.5 Notwithstandingtheexclusionsinrules4.3and4.4,theinsurerwilldischargeonbehalfoftheassuredliabilitiesarisingunderademandmadepursuanttotheissuebytheinsureronbehalfoftheassuredof:
Risks Covered by Hull and War Risks Policies:
Double Insurance:
War Risks:
Radioactive Contamination:
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1) acertificateincompliancewithArticleVIIoftheInternationalConventionsonCivilLiabilityforOilPollutionDamage1969and1992oranyamendmentsthereof;or
2) acertificateincompliancewithArticle7oftheInternationalConventiononCivilLiabilityforBunkerOilPollutionDamage2001;or
3)anyotherguarantee,certificateorundertakingissuedbytheinsurerpursuanttoanystatute,convention,treatyorlaw.
4) acertificateincompliancewithArticle4bisoftheAthensConventionRelatingtotheCarriageofPassengersandTheirLuggagebySea2002.
4.6 Theassuredshallindemnifytheinsurertotheextentthatanypaymentunderanysuchguarantee, undertakingor certificate is orwouldhavebeen recoverable inwholeorinpartunderastandardP&Iwarriskspolicyhadtheassuredcompliedwiththetermsandconditionsthereof.
4.7 Theassuredagreesthatanypaymentbythe insurerunderanysuchguarantee,undertakingorcertificateshall,totheextentofanyamountrecoveredunderanypolicyofinsuranceoradditionalcoverprovidedbytheinsurer,bebywayofloanandthereshallbeassignedtotheinsurertotheextentandonthetermstheinsurerdeterminetobepracticable,alltherightsoftheassuredunderanyotherinsuranceandagainstanythirdparty.
4.8 Noclaimisrecoverableifitarisesoutoforisconsequentupontheshipblockade-runningorbeingemployedinanunlawful,prohibitedorsanctionablecarriage,trade,voyageoroperation,oriftheprovisionofinsuranceforacarriage,trade,voy-ageoroperationisorbecomesunlawful,prohibitedorsanctionableoriftheinsurerdeterminesthatthecarriage,trade,voyageoroperationwasimprudent,unsafe,undulyhazardousorimproper.
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5 Exceptasprovidedinthisruleorotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectof:
5.1 Lossofordamagetotheshiporanypartthereof,saveasprovidedforinrule3.19.
5.2 Lossofordamagetoanyequipment,containers,lashings,stores,orfuelonboardtheshiptotheextentthattheyareownedorleasedbytheassuredoranyassoci-atedcompany.
5.3 Thecostofrepairstotheshiporanychargesorexpensesinconnectiontherewithsaveasprovidedforinrules3.14and3.15.
5.4 Lossoffreight,hire,time,market,production,profitoranyotherdirectorindirectlosseswhatsoeveroranyproportionthereof inrelationtotheship,unlesssuchloss,withtheagreementoftheinsurer,formspartofaclaimforliabilitiesinrespectofcargo.
5.5.1 Lossarisingoutofdemurrageon,detentionof,ordelaytotheshipor,exceptasprovidedforinrules3.1.6and3.4,runningcostsoftheship,unlesssuchcosts,withtheagreementoftheinsurer,formpartofaclaimforliabilitiesinrespectofcargo.
5.5.2 Liabilitiesarisingoutofarrestordetentionofordelaytotheshippursuanttoaclaimagainsttheassuredliabilityforwhichisnotcoveredundertherules.
5.6 Lossarisingoutofthecancellationofanycontractorengagementinrelationtotheship.
5.7 Lossarisingoutofirrecoverabledebtsortheinsolvencyofanyperson.
5.8 Liabilitiesarisingoutoftheactual,orthreatened,escapeordischargeofanysub-stancesaveasprovidedforinrule3.8.
5.9 Salvageorotherservicesinthenatureofsalvageprovidedtotheship,andanyli-abilitiesinconnectiontherewith,otherthansuchasmaybecoveredunderrules3.5,3.8.5,3.14or3.15.
5.10 Liabilitiesarisingoutofsalvageoperations(includingwreckremoval)conductedbytheshiporprovidedbytheassuredotherthanliabilitiesarisingoutofsalvageop-erationsconductedbytheshipforthepurposeofsavingorattemptingtosavelifeatsea.
5.11 Liabilitiesincurredduringthecourseofperformingspecialistoperationsincludingbutnotlimitedtodredging,blasting,pile-driving,wellstimulation,cableorpipelaying,construction,installationormaintenancework,coresampling,depositingofspoil,professionaloilspillresponseorprofessionaloilspillresponsetrainingandtankcleaning(otherthanontheship),butexcludingfire-fighting,totheextentthatsuchliabilitiesariseasaconsequenceof:
1) claimsbroughtbyanypartyforwhosebenefittheworkhasbeenperformed,orbyanythirdparty(whetherconnectedwithanypartyforwhosebenefittheworkhasbeenperformedornot),inrespectofthespecialistnatureoftheoperations;or
2)thefailuretoperformsuchspecialistoperationsbytheassuredorthefitnessforpurposeorqualityoftheassured’swork,productsorservices;or
3)anylossofordamagetothecontractworkincluding,butnotlimitedtomateri-als, components, parts, machinery, fixtures, equipment and any other property
Hull damage:
Equipment Damage:
Repairs:
Loss of Hire:
Detention:
Cancellation:
Bad Debts:
Pollution:
Salvage:
Specialist Operations:
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whichisorisdestinedtobecomeapartofthecompletedprojectwhichisthesub-jectofthecontractunderwhichtheshipisworking,ortobeuseduporconsumedinthecompletionofsuchproject.
Thisexclusiondoesnotapplytoliabilitiesincurredinrespectof: a)injury,illnessordeathofanypersononboardtheship b)wreckremovaloftheship c)oilpollutionemanatingfromtheshiporthethreatthereofbutonlytothe
extentthatsuchliabilitiesarecoveredbytheinsurerinaccordancewiththeserules.
5.12.1 Liabilitiesincurredinrespectoftheship,beingadrillingshiporanyothershipemployedtocarryoutdrillingorproductionoperationsinconnectionwith oil or gas exploration or production, including any accommodationshipmooredorpositionedonsiteasan integralpartofanysuchopera-tions, to theextent thatsuch liabilitiesariseoutoforduringdrillingorproductionoperations.
5.12.2 Ashipshallbedeemedtobecarryingoutproductionoperationsif,interalia,itisastoragetankerorothershipengagedinthestorageofoil,andeithertheoilistransferreddirectlyfromaproducingwelltothestorageship;orthestorageshiphasoilandgasseparationequipmentonboardandgasisbeingseparatedfromoilwhileonboardthestorageshipotherthanbynaturalventing.
5.13 Lossofordamagetoorwreckremovalofcargocarriedonasemisubmers-ibleheavyliftshiporanyothershipdesignedexclusivelyforthecarriageofheavyliftcargo,savetotheextentthatsuchcargo isbeingcarriedunderthetermsofacontractonHeavycontermsoranyothertermsapprovedbytheinsurer.
5.14 Liabilitiesincurredinconnectionwithanyclaimarisingoutof: 1) theoperationby theassuredofsubmarines,mini submarinesordiving
bells;or 2)theactivitiesofprofessionalorcommercialdiverswheretheassuredisre-
sponsibleforsuchactivities,otherthan: a) activities arising out of salvage operations being conducted by the ship
wherethediversformpartofthecrewofthatship(orofdivingbellsorothersimilarequipmentorcraftoperatingfromtheship)andwheretheassuredisresponsiblefortheactivitiesofsuchdivers;and
b)incidentaldivingoperationscarriedoutinrelationtotheinspection,repairormaintenanceoftheshiporinrelationtodamagecausedbytheship;and
c)recreationaldivingactivities.
5.15 Liabilitiesincurredinrespectof: 1)personnel(otherthanmarinecrew)onboardtheship(beinganaccommoda-
tionship)employedotherthanbytheassuredwheretherehasnotbeenacon-tractualallocationofrisksbetweentheassuredandtheemployeroftheper-sonnelapprovedbytheinsurer;
2)hotelandrestaurantguestsandothervisitorsandcateringpersonneloftheshipwhensheismoored(otherthanonatemporarybasis)andisopentothepublicasahotel,restaurant,barorotherplaceofentertainment.
5.16 Liabilitiesincurredinconnectionwithanyclaimbroughtagainsttheassuredarisingoutofwasteincinerationordisposaloperationscarriedoutbytheship,otherthananysuchoperationscarriedoutasanincidentalpartofothercom-mercialactivities,notbeingspecialistoperations.
Drilling and Production Operations:
Heavy Lift Ships:
Submarines and Divers:
Non-Marine Personnel:
Waste Disposal:
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5.17 Liabilities and losses arising from the use of any electronic trading system,otherthananelectronictradingsystemapprovedbytheinsurer,totheextentthatsuchliabilitiesandlosseswouldnot(saveinsofarastheinsurerotherwisedetermine)havearisenunderapapertradingsystem.
Forthepurposeofthisrule: 1) anelectronictradingsystemisanysystemwhichreplacesorisintendedto
replacepaperdocumentsusedforthesaleofgoodsand/ortheircarriagebyseaorpartlybyseaandothermeansoftransportandwhich:
a)aredocumentsoftitle;or b)entitletheholdertodeliveryorpossessionofthegoodsreferredtoinsuch
documents;or c)evidenceacontractofcarriageunderwhichtherightsandobligationsof
eitherofthecontractingpartiesmaybetransferredtoathirdparty. 2)a‘document’shallmeananythinginwhichinformationofanydescriptionis
recordedincluding,butnotlimitedto,computerorotherelectronically-generatedinformation.
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SeCTIon F: SCoPe oF reCoVerY And lIMITS
6.1 Ifanassuredincursanyoftheliabilitiessetoutinrule3,heisentitledtorecoverthenetamountofsuchliabilities,deductinganycostsandexpenseswhichwouldhavebeenincurredinanyeventtogetherwithanysavingsaccruingtohimandanyrecov-eriesmadebyhim,unlessotherwiseagreedbytheinsurer.
6.2.1 Undernocircumstancesshalltherecoverybyanyperson exceed: 1)theamounttowhichtheassuredisentitledtolimithisliability,orwouldhave
beensoentitledunderanyrelevantlawhadhesopetitioned; 2)anyotherlimitcontainedintheserulesorsetoutintheassured’scertificateof
entry; 3)iflessthanthefulltonnageoftheshipisenteredintheinsurer,suchproportion
oftheamountreferredtoinrule6.1,orthelimitsreferredtoinparagraphs(1)and2)above,astheenteredtonnagebearstothefulltonnageoftheship.
6.2.2 Iftheclaimsofallinsuredpartiesinrespectofliabilitiesinsuredbytheinsurerex-ceedormayexceedintheaggregateanylimitofcoversetoutintherulesorinthecertificateofentry:
1) theassuredshallbeentitledtorecoverinrespectofsuchclaimsinprioritytotheclaimsofanyotherinsuredpartiesandanyjointassuredsshallbeentitledtore-coverinrespectofsuchclaimsinprioritytotheclaimsofanyco-assureds;
2)wheretheaggregateoftheclaimsoftheassuredexceedsormayexceedthesaidlimit,theassuredshallbeentitledtorecoverinrespectofsuchclaimstotheexclu-sionofanyclaimsofanyotherinsuredparties;
3)wheretheaggregateoftheclaimsofanyjointassuredsexceedsormayexceedthesaidlimitoranypartthereofremainingafterapplicationofrule6.2.2(1),anyjointassuredshallbeentitledtorecoverinrespectofsuchclaims
a)totheexclusionofanyclaimsofanyco-assureds;and b)onlysuchproportionoftheremainingpartofthelimitastheclaimofthatjoint
assuredbearstothetotalofallclaimsofalljointassureds; 4)wheretheaggregateoftheclaimsofanyco-assuredsexceedsormayexceedthe
saidlimitoranypartthereofremainingaftertheapplicationofrules6.2.2(1)and(3),anyco-assuredshallbeentitledtorecoverinrespectofsuchclaimsonlysuchpro-portionoftheremainingpartofthelimitastheclaimofthatco-assuredbearstothetotalofallclaimsofallco-assureds.
6.2.3 Ifintheopinionoftheinsurertheclaimsofallinsuredpartiesintheaggregateex-ceedormayexceedanylimitsetoutintherulesorinthecertificateofentry,theinsurermaydeferpaymentofaclaimoranypartthereof.
6.2.4 Whereaguarantee,undertakingorcertificateprovidedforinrule4.5hasbeenis-suedandintheopinionoftheinsurertheclaimsofallinsuredpartiesintheaggre-gateexceedormayexceedanylimitsetoutintherulesorinthecertificateofentry,theinsurer:
1)maydeferpaymentofaclaimoranypartthereofastheyseefit;and 2)shallnotbeunderanyobligationtoreimburseanassureduntiltheyaresatisfied
thatallliabilitiesarisingunderdemandsmadeorwhichmaybemadeunderanysuchguarantee,undertakingorcertificatehavebeenorcanbesatisfiedwithinsuchlimit.
6.3 Anylimitsonthecoverprovidedbytheinsurerapplyintheaggregatetoallinsuredpartiesandaffiliatedorassociatedcompanies.
6.4 Subjecttoanylowerlimitsofcovercontainedintherulesorsetoutintheassured’s
Net loss:
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certificateofentry,theliabilityoftheinsurertoallinsuredpartiesforallclaimsarisingunderanyoneowner’sentry,shallbelimitedintheaggregatetoUS$500millionanyoneevent.
6.5 Ifaclaimarisesfollowingacollisioninvolvingtwoshipsbelongingtothesame
assured,heisentitledtorecoverfromtheinsurer,andtheinsurerhasthesamerights,asiftheshipshadbelongedtodifferentowners.
6.6 Ifaclaimarisesunderrules3.7or3.9followinglossofordamagetoanyship,cargoorotherpropertyorobjectbelongingtotheassuredinrespectofwhoseshiptheclaimarose,theassuredisentitledtorecoverfromtheinsurer,andtheinsurerhasthesamerights,asifsuchship,cargoorotherpropertyorobjectlostordamagedhadbelongedtoathirdparty,butonlytotheextentthatsuchlossordamageisnotrecoverableunderanyotherinsuranceuponthesaidship,cargoorotherpropertyorobject.
6.7 Ifthecargoinrespectofwhichaclaimarisesunderrule3.13isthepropertyoftheassured,heisentitled,subjecttotheexclusionstorule3.13,torecoversuchliabil-itiesaswouldhavebeenrecoverableifthatpropertybelongedtoathirdpartyandthatthirdpartyhadconcludedacontractofcarriagewiththeassured.
6.8 Theinsurerisnotliabletomakeanypaymentinrespectofanyclaimwhileanysumisduefromtheassured,ordueinrespectofashipenteredunderthesamegroupratingagreement;however,ifanypaymentismade,theinsurermaydeductanysumwhichisduefromanassuredrelatingtoanypolicyyear.
6.9 Innocaseisinterestpayableonsumsduefromtheinsurer.
6.10 Unlesstheinsurerotherwisedetermines,itisaconditionprecedentofanassured’srighttorecoverinrespectofanyliabilitiesthathemusthavefirstdischargedorpaidthesameoutoffundsbelongingtohimunconditionallyandnotbywayofloanorotherwise.
6.11 Anysumrecoverableshallbesubjecttosuchdeductibleashasbeenagreedbytheinsureror,ifnotsoagreed,shallbesubjecttothestandarddeductiblesdeterminedbytheinsurerfromtimetotime.Unlessotherwiseagreed,deductiblesshallapplyanyoneevent.
6.12 Theinsurermayundertakethedefenseofanassuredorinstitutelegalproceedingsonhisbehalfinrespectofanyamountnotrecoverablebyreasonofanydeductibleinordertoascertainthelegalpositionoftheassured.Althoughtheinsurermaypaythecostsofsuchlegalproceedings,theassuredshallbearanydamagesthereinadjudgedorawardedagainsthim.
6.13 Noclaimisrecoverableinrespectofanyliabilitieswhichin theopinionoftheinsurerhasbeenincurredowingtotheprivityorwilfulmiscon-
ductofaninsuredparty.
6.14 Anassuredmustatalltimestakeallreasonablestepstoavoidorminimizeanyloss,damageorliabilityinrespectofwhichhemaybeinsuredbytheinsurer.Ifanassuredisinbreachofthisobligation,theinsurermayrejectanyclaimbytheas-suredforreimbursementorreducethesumpayablebytheinsurer.
6.15 Whereapartyisnamedasajointassuredorco-assuredandawaiverofsubroga-tionisrequiredunderacontract,rightsofsubrogationagainstsuchjointassuredorco-assuredarewaivedonlywheretheinsurerhasagreedsuchawaiver;anysuch
Assured’s Property:
Amounts Owing the Insurer:
Interest:
Pay to Be Paid:
Deductibles:
Wilful Misconduct:
Obligation to Sue and Labour:
Waiver of Subrogation:
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waiverappliesonlyinrespectofthoseliabilitieswhicharebornebytheassuredorotherjointassuredunderthetermsoftherelevantcontractandnottoanyliabilitieswhicharetobebornebytheotherparty.
6.16 Theassuredshallinnocircumstancesbeentitledtorecoverfromtheinsurerthatpartofanyliabilitieswhichisnotrecoveredbytheinsurerfromanyotherpartyunderanyreinsurance(s)becauseofashortfallinrecoveryfromthepartiesorrein-surersthereunderbyreasonofanysanction,prohibitionoradverseactionagainstthembyanystateorinternationalorganizationortheriskthereofifpaymentweretobemadebysuchpartiesorreinsurers.Forthepurposesofthisrule6.16“short-fall”includesanyfailureordelayinrecoverybytheinsurerbyreasonofthepartiesor reinsurersmakingpayment intoadesignatedaccount incompliancewiththerequirementsofanystateorinternationalorganization.
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7.1 Anassuredmustpromptlynotifytheinsurerinwritingnotlaterthan10daysofeverymatterandofeveryclaimmadebyathirdpartyagainsthimwhichmayleadtoaclaimforrecovery.
7.2 Anassuredmustsubmithisclaimfor reimbursementofany liabilitieswithin12monthsofdischargingorsettlingthem,andmustproduceinsupportofeachclaimallinformationtheinsurermayrequire.
7.3 Anassuredmustnotifythe insurerofany informationordocumentation inhispower,custody,controlorknowledgerelevanttoanymatterandmust,assoonasrequestedbytheinsurer,givetotheinsurerand/ortotheexpertsorlawyersappointedtoactonhisbehalfallsuchdocumentationandallowittobeinspectedandcopied
7.4 Anassuredmustallowtheinsurer,ortheappointedexpertsorlawyers,tointerviewanypersonemployedbytheassuredwhomtheinsurerconsidersmayhaveknowl-edgeofthematter.Ifanysuchpersonisrequiredtogiveevidenceatanylegalpro-ceedingsrelatingtoamatter,theassuredwillusehisbestendeavourstomakesureheattends.
7.5 Anassuredmustkeeptheinsurerfullyinformedoftheprogressofanymatterwhichwillormaycausetheassuredtoincurliabilitiesforwhichheisormaybeinsuredbytheinsurerinwholeorinpart,includinganycostsorexpenses,andofanyactionproposedinrelationtosuchmatter.
7.6 Anassuredmustnotsettle,compromiseoradmitliabilityforanymatterforwhichheisormaybeinsuredbytheinsurerinwholeorinpartwithouttheapprovaloftheinsurer.Iftheassureddoesenterintoasettlementagreementforanymatterwhichmaybeinsurerbytheinsurerinwholeorinpart,theassuredmustnotifythein-surerinwriting.Iftheinsurerdoesnotapprovethesettlementagreementwithin15daysofnotificationofthemattertotheinsured,thesettlementagreementwillbeinvalidagainsttheinsurer.
7.7 Anassuredwhoincursanycostsorexpenseswithouttheagreementoftheinsurer,orwithoutthematterbeingconductedbyanexpertorlawyerappointedorprevi-ouslyapprovedbytheinsurer,willonlybeentitledtoreimbursementbytheinsurerforthereasonablecostsandexpensesincurred.
7.8 Anassuredmustnotwithholdorconcealanyevidencewhichitisormayberelevanttodisclose,ormakeanyfalsestatement.Ifsuchevidenceiswithheldorconcealedorfalsestatementismade,anyliabilitiesalreadyincurredorreimbursedbythein-surermustberepaidbytheassured.
8.1 Theinsurershallinformtheassuredwithinfivedaysfromthedateofnotificationmadeinaccordancewithrule7.1,whetheritwilltakethenecessarylegalstepsanddecisionsonbehalfoftheassuredunderitsownresponsibilityandaccountandas-sistinthedefenseoftheassuredwithregardstotheclaimpresented.
8.2 Theinsurerhastherighttocontrolordirecttheconductofanymatterorlegalpro-ceedingsrelatingtoanyliabilitiesinrespectofwhichtheassuredisormaybein-suredbytheinsurerinwholeorinpart,andinparticulartodirecttheassuredtouseaparticularexpertorlawyer.
Notification:
Documentation:
Developments:
Settlement:
Recovery:
Evidence:
Powers of the Insurer Relating to the Handling of Claims:
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8.3 Theinsurerhastherighttorequiretheassuredtosettle,compromiseorotherwisedisposeofanymatterorproceedinginsuchmannerastheyseefit.
8.4 Theinsurermayatanytimeonnoticetotheassuredwithdrawtheirapprovalofanyexpertorlawyerappointedtoactonbehalfoftheassured;insuchcircumstancestheassuredwillhavenofurtherentitlementtoreimbursementofanyofthecostsorexpensesofthatexpertorlawyer.
8.5 Theinsurermayatanytimeappoint,onbehalfofanassuredattheexpenseoftheinsurersubjecttoanyapplicabledeductible,expertsorlawyerstodealwithanymatterwhichmayresultinliabilitiesinrespectofwhichtheassuredisormaybeinsuredbytheinsurerinwholeorinpart.
8.6 Ifanassuredfailstocomplywithanyrequirementunderrules7and8,thein-surershallnotbeunderanyobligationtoreimbursehim.
9.1 Theinsurerisundernoobligationtoprovidesecurityonbehalfofanassured,butwhereitisprovideditshallbeonsuchtermsastheinsurerconsidersappropriateandshallnotconstituteanyadmissionofliabilitybytheinsurerfortheclaiminre-spectofwhichitisgiven.
9.2 Anassuredonwhosebehalftheinsurerhasprovidedsecurity,withorwithouttheassured’sexpressauthority,shallondemandreplacethesecurityorpaytothein-surerasumcorresponding to theamountofsuchsecuritywhetherornotsuchamountmayberecoverableinwholeorinpartfromtheinsurer.
9.3 Innocaseshalltheinsurerbeliableforthedetentionoftheship,orforanyotherdetentionorattachmentofanassured’sassets,or foranydamagewhatsoevercausedtoanassuredbyreasonoftheprovisionornon-provisionofsecurity.
9.4 Anassuredshallupondemandreimbursetheinsurersuchsumorsumsasthein-surerhaspaidonhisbehalforundersecurityprovidedbytheinsurertotheextentthatsuchpaymentis,intheopinionoftheinsurer,inrespectofliabilitiesnotrecov-erablefromtheinsurer.
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SeCTIon H: APPlICATIon And enTrY
10.1 Theapplicantmustprovidetheinsurerwithallmaterialparticularsandinformationtogetherwithanyadditionalparticularsandinformationastheinsurermayrequire.
10.2 Theapplicantwarrantsonhisownbehalfandonbehalfofanyotherpersonthathehasprovidedallmaterialinformationandthatallsuchinformationis,sofarasheknowsorcouldwithreasonablediligenceascertain,trueandcomplete,andwillremainsothroughouttheperiodofinsurance.Theinformationsoprovidedformsthebasisofthecontractofinsurancebetweentheapplicantandtheinsurer.
10.3 Theinsurermay,withoutgivinganyreason,refuseanyapplicationfortheentryofashipwiththeinsurer.
11.1 Unlesstheinsurerotherwisedecide,eachpersonwhoseentryhasbeenacceptedundertherulesbecomesanassuredoftheinsurer.Whenevertheinsureracceptsanentrybywayofreinsurance,theinsurerreinsuredbytheinsurerorpersoninsuredbysuchaninsurermay,iftheinsureragrees,becomeanassured.
11.2 Theassuredisobligedtodiscloseanychangeinanymaterialinformationrelatingtoanentryincluding,butnotlimitedto,changeof:management,flag,classifica-tionsociety,governmentauthorityresponsibleforshipcertificationforthetradeinquestion,nationalityofcrew,tradingoroperatingareaornatureoftradeoroperation.Uponsuchdisclosure,orfailuretodisclose,theinsurermayamendtheassured’spremiumratingortermsofentry,orterminatetheentryinrespectofsuchship.
11.3 Theassuredisboundbyandmustobserveandperformtheobligationsundertherules,andmustprovidetheinsurerwithelectronicandpostaladdressesforserviceofnotices.
11.4 Theassuredwarrantsthatheis,inrelationtotheship: 1)herownerorcharterer;or 2)aninsureroroperatorhavingcontrolofheroperationandemployment;or 3)anyotherpersoninpossessionandcontrolofher
11.5 Under a charterer’s entry, the assured warrants that he will, unless otherwiseagreedwiththeinsurer,declaretotheinsurerallshipscharteredbyhim.
12.1 Theinsurerwillsendtheassuredacertificateofentrystatingthedateofcom-mencementofcoverandthetermsandconditionsonwhichtheshiphasbeenac-ceptedforinsurance.
12.2 Ifatanytimethereisavariationinthetermsofentry,theinsurerwillsendtheas-suredanendorsementstatingthetermsofsuchvariationandthedatefromwhichsuchvariationistobeeffective.
12.3 Everycertificateofentryissuedisconclusiveevidenceastoitsterms;iftheinsurerbelievesthatsuchdocumentationcontainsanyerrororomissiontheymayissueanewcertificateorendorsementwhichwillbeconclusiveasaforesaid.
13.1 Theinsurermayacceptanapplicationfromanassuredforanotherpersonorper-sonstobecomejointassuredsinrespectofthatassured’sentry.Eachjointassuredhasanindependentrightofrecoveryfromtheinsurer.
13.2 Unlessotherwiseagreedbytheinsurer,theassuredandalljointassuredsarejoint-lyandseverallyliabletopayallamountsduetotheinsurerinrespectofsuchentry.
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13.3 Theassuredandeachjointassuredwarrantsthatthejointassuredis,inrela-tiontotheship:
1)interestedinheroperation,managementormanning;or, 2)theholdingcompanyorthebeneficialowneroftheassuredorofanypersonin-
terestedinheroperation,managementormanning;or, 3)thecharterer.
13.4 Theassuredwarrantsthathehasatalltimesfullpowerandauthoritytoactinthenameofand/oronbehalfofalljointassureds.
13.5 Theinsurermayacceptanapplicationfromanassuredforanotherpersonorper-sonstobecomeco-assuredsinrespectofthatassured’sentry.
13.6 Theliabilityoftheinsurertoaco-assuredonlyextendsinsofarashemaybefoundliabletopayinthefirstinstanceforliabilitieswhichareproperlythere-sponsibilityoftheassuredwhich,iftheassuredhasenteredintoacontractwiththeco-assured,meansthoseliabilitieswhicharetobebornebytheassuredunder such contract.Coverdoesnotextend toanyamountwhichwouldnothavebeenrecoverablefromtheinsurerbytheassuredhadtheclaimbeenmadeorenforcedagainsthimortoanyliabilitiestobebornebyanyoftheco-as-suredsunderthesaidcontract.
13.7 Oncetheinsurerhasindemnifiedaco-assureditshallnotbeunderanyfurtherlia-bilitytoanypersoninrespectofthatclaim.
13.8 Thereceiptbyaninsuredpartyofanysumspaidbytheinsurerinrespectofsuchanentryissufficientdischargebytheinsurerforthesame.
13.9 Anyprovisionoftherulesbywhichaninsuredpartyceaseseithertobeinsuredor
tobeentitledtorecoverfromtheinsurerisdeemedtoapplytoallinsuredparties.Failurebyaninsuredpartytocomplywithanyoftheobligationsundertherulesisdeemedtobethefailureofallinsuredparties.
13.10 Conductofaninsuredpartywhichwouldhaveentitledtheinsurertodeclinetoin-demnifyitisdeemedtobetheconductofallinsuredparties.
13.11 Thecontentsofanycommunicationbetweenaninsuredpartyandtheinsurer isdeemedtobewithintheknowledgeofallinsuredparties.
13.12 Thecoverprovidedtojointassuredsandco-assuredsdoesnotextendtoanyliabilitiesordisputeseitheramongsuchjointassuredsandco-assureds,orwiththeassured.
13.13 a.Unlessotherwiseagreedbytheinsurer,whereachartererisnamedasajointas-suredorco-assured,allinsuredparties,includingsuchcharterer,warrantthatthechartereriseither:
1)anaffiliatedorassociatedcharterer;or 2)hascontractedwiththeassuredorajointassuredfortheprovisionofservicesto
orbytheshipandthatcontracthasbeenapprovedbytheinsurer. b.Anycharterernamedasaco-assuredinaccordancewithrule13.13a(2)aboveis
onlycoveredforliabilitieswhicharetobebornebytheassuredorotherjointas-suredunderthetermsoftherelevantcontractandwould,ifbornebytheassuredorthatjointassured,berecoverablebyeitherfromtheinsurer.
13.14 Theinsurermayacceptanentryonthebasisthattheshipispartofagroupratingagreementandassesspremiumaccordingly.
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13.15 Onepersonmustbedesignatedgroupprincipalandanycommunicationfromoronbehalfoftheinsurertothegroupprincipalisdeemedtobewithintheknowledgeofallinsuredpartiesinthegroupandanycommunicationfromandactiontakenbythegroupprincipalisdeemedconclusivelytobemadewiththefullapprovalofanyandallinsuredpartieswithinthatgroup.
13.16 Allpersonsenteringshipsunderagroupratingagreementandthegroupprincipalremainjointlyandseverallyliabletopayallamountsduetotheinsurerinrespectofanyandallshipsinthesamegroup.
13.17 Intheeventofanybreachofthewarrantiessetoutinrule,10.2,11.4,11.5and13.4,all insuredparties’ insuranceshall terminateasperapplicablerulesofTCCauto-maticallyfromthetimeofthebreach.Insuchcircumstances,theassuredshallbe,andremain,liableforallpremiumuptothetimeofthebreach.
13.18 Intheeventofanybreachbyajointassuredoraco-assuredofthewarrantiessetoutinrules13.3and13.13,thejointassured’sorco-assured’sinsuranceshallterminateautomaticallyfromthetimeofthebreach.Ifajointassuredisinbreach,heshallbe,andremain,liableforallpremiumuptothetimeofthebreach.
14.1 Noinsurancegivenbytheinsurerandnointerestundertherulesorunderanycon-
tractbetweentheinsurerandanyassuredmaybeassignedwithouttheagreementoftheinsurer.Anyassignmentmadewithoutsuchagreementshall,unlessthein-surerotherwisedetermine,beofnoeffectandtheassigneeshallhavenorightsagainsttheinsurer.
14.2 Intheeventthatthe insureragrees,the insurer isentitled insettlinganyclaimpresentedbytheassigneetodeductorretainsuchamountastheinsurersmaythenestimatetobesufficienttodischargeanyactualorpotentialliabilitiesoftheas-signortotheinsurer.
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SeCTIon I: SHIP STAndArdS And SUrVeYS
15.1 Unlessotherwiseagreedbytheinsurer,thefollowingconditionsofinsuranceofeveryship:
1) theshipmustbeandremainfullyclassedwithaclassificationsocietyap-provedbytheinsurer,or,providedagreedbytheinsurer,remainfullyapprovedbythegovernmentauthorityresponsibleforshipcertificationforthetrade inquestion(hereafter‘society/authority’)
2)anymatterinrespectofwhichthesociety/authoritymightmakerecommenda-tionsaboutactiontobetakenmustbepromptlyreportedtothesociety/authority
3)theassuredmustcomplywithalltherules,recommendationsandrequire-mentsofthesociety/authoritywithinthetimeortimesspecifiedbythatsocie-ty/authority
4)theinsurermayinspectanydocument,and/orobtainanyinformationrelatingto themaintenanceof the ship’s classor approval, in thepossessionof anysociety/authoritywithwhichtheshipisoratanytimehasbeenclassedorap-proved, and the assured authorises such society/authority to disclose suchdocumentsand/or informationtotheinsurerforwhateverpurposestheymayconsidernecessary
5)theassuredmustcomplywithallstatutoryrequirementsoftheship’sflagstate relating to the construction, adaptation, condition, fitment, equipment,manningandoperationoftheshipandmustatalltimesmaintainthevalidityofsuchstatutorycertificatesasarerequiredorissuedbyoronbehalfoftheship’sflagstate,includingthoseinrespectoftheISMandISPScodes.
15.2 Unlessandtotheextenttheinsurerotherwisedecides,anassuredisnotentitledtoanyrecoveryinrespectofanyliabilitiesarisingduringaperiodwhenanyofthecondi-tionsinrule15.1havenotbeencompliedwith.
15.3 Theinsurermay,asaconditionofacceptanceorrenewalofentrywiththeinsurer,appointasurveyorto inspectanapplicant’sorassured’sship. Inthelightofsuchsurvey,theinsurermaydeclinetheapplication,refusetorenewtheentryorimposeconditionsonthetermsofentryastheyseefit.
15.4 Theinsurermayatanytime,orfollowinganaccidentwhichwillormaycausetheassuredtoincurliabilitiesforwhichhemaybeinsuredbytheinsurer,appointasur-veyortoinspectanassured’sshiporundertakeareviewoftheassured’soperationswithinaspecifiedperiod.Iftheshipisnotmadeavailableforsurvey,orthereviewdoesnottakeplace,withinsuchperiod,noclaimforrecoveryasaresultofanyinci-dentarisingaftertheexpiryofsuchperiodwillbeallowed.
15.5 Intheeventthatanassuredhaslaidtheshipupformorethan90consecutivedayshemust,unlessotherwiseagreedbytheinsurer,notifythemofhisintentiontotradetheshipatleastsevendaysbeforesheresumestrading.Theinsurermaythenrequiretheassuredtohavethatshipinspectedbyasurveyorappointedbythem.Intheeventthattheassureddoesnotnotifytheinsurerofhisintentiontotradetheship,noclaimforrecoverywillbeallowed.
15.6 Inthelightofasurveyorreviewtheinsurermay: 1)terminatetheassured’sentry;or 2)amend,varyorimposeconditionsonthetermsofentryastheyseefit
15.7 Anyrecommendationsmadebytheinsurerorasurveyorfollowinganysurveyorreviewmustbecarriedoutwithinthetimespecifiedby,andtothesatisfactionof,theinsurerandnorecoveryshallbeallowedinrespectofanyincidentarisingafteranysuchrecommenda-tionshavebeenmadeuntiltheyhavebeencompliedwithtothesatisfactionoftheinsurer.
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SeCTIon J: PerIod oF InSUrAnCe
16.1 Unlessotherwiseagreedatthetimeofentryorsetoutintherules,thein-suranceprovidedbytheinsurerbeginsatthetimestatedintheassured’scertificateofentry,andcontinuesforaperiodof12months,orotherperiodasstatedonthecertificateofentry,unlessterminatedinaccordancewiththerules.
16.2 Ifanassureddoesnotwishtocontinuetheinsuranceinrespectoftheshiphemustgivenoticeinwritingtotheinsurernotlaterthan30daysbeforetheex-piryoftheperiodofinsurance.
16.3 Theshipmaynotbewithdrawnatanyothertimeorinanyothermannerexceptwiththeconsentoftheinsurer.
16.4 Theinsurermay,inrespectoftheship,atanytimeandbygivingvalidreasons;1) givetoanassuredsevendays’noticethatheisnotentitledtoanyrecoveryinrespectofanyclaimarisingduringtheperiodfromexpiryofthatnoticeuntilsuchfurthertimeastheinsurerspecifies;or
2) terminatetheentryon30days’noticeinwritinggivennotlaterthan30daysbeforetheexpiryoftheperiodofinsurance.
16.5 Subjecttorule18.2,anassuredisonlyliableforpremiuminrespectoftheshippro-ratafortheperiodfromthetimestatedintheassured’scertificateofentryuntilnoonGMT:
1) onthedayownershipwaslegallytransferred;or 2)onthedateofcessationofinsurance.
17.1 Anassuredshallceasetobe insuredbythe insurer inrespectofanyandallshipsenteredbyhimif:
1) beinganindividual,hedies,becomesofunsoundmind,orbankruptormakesanyarrangementwithhiscreditorsgenerally;or
2)beingacompany,aresolutionispassedforitsvoluntarywinding-uporanorderismadeforitscompulsorywindinguporitisdissolvedorseeksprotec-tionfromitscreditorsunderanyapplicablebankruptcyor insolvencylawsoranysimilareventoccursinanyapplicablejurisdiction.
17.2 Anassuredshallceasetobeinsuredbytheinsurerinrespectofanyshipen-teredbyhimif:
1) hesellsorassignsthewholeoranypartofhisinterestintheship,unlesstheinsurerhaveagreedtosuchassignmentandtoanassignmentoftherelevantinsurancebytheinsurerpursuanttorule14.1;or
2) theshipbecomes,or isacceptedbyhull underwritersas, anactualorconstructivetotalloss,orthere isacompromisereachedwithhullunder-writers,ortheinsurerdecide,thattheshipcanbeconsideredordeemedtobeanactualorconstructivetotalloss,exceptasregardsliabilitiesflowingdirectlyfromthecasualtywhichgaverisetotheactualorconstructivelossoftheship,orsuchlaterdateastheinsurermaydetermine;theinsurermay,however, agree to extend the period of insurance on such terms as theythinkfit;or
3)noticeisgivenunderrules16.2to16.4andisnotwithdrawnbyagreementbeforetheexpiryoftheperiodofinsurance;or
4)theentryisterminatedorceasesinaccordancewithrules15or16.4;or 5)theshipisemployedbytheassuredinacarriage,trade,voyageoroperation
whichwilltherebyinanywayhowsoeverexposetheinsurertotheriskofbeingorbecomingsubjecttoanysanction,prohibitionoradverseactioninanyformwhatsoeverbyanystateorinternationalorganization,oriftheprovisionofin-
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suranceforacarriage,trade,voyageoroperationisorbecomesunlawful,pro-hibitedorsanctionable,unlesstheinsurershallotherwisedetermine.
17.3 Ifanassuredfailstopaywhendueanddemandedbytheinsureranysumow-ingfromhimtotheinsurerincludinganysumforwhichheisliableunderrule13.16:
1) unlessandtotheextenttheinsurerotherwisedecides,anassuredwillnotbeentitledtoanyrecoveryinrespectofanyclaimarisingfromthedateofsuchfailureuntilthedatesuchsumowingtotheinsurerispaidinfull;and
2)hisinsurancewillbecancelled,whetherornotitmayalreadyhaveceasedforsomeotherreason,ifafterserviceonhimofanoticestatingthattherearesumsowingandrequiringpaymentbyaspecificdatehefailstopayanysuminfullonorbeforesuchdate.
17.4 Theinsurermay,butarenotobligedto,specifytheamountoutstanding;anyinaccuracyinthedemandastotheamountstatedtobeowingshallnotinvali-datethenoticeunlessthereisnosumowingatall.
17.5 Whereanassuredceasestobeinsuredinrespectofanyshiporatall(‘thedateofcessation’)then:
1)suchassuredandhissuccessorsare,andremain, liableforallpremiuminrespectofthatpartofthepolicyyearforwhichtheshipwasonrisk,andprevi-ouspolicyyears
2) the insurer remains liable forallclaimsarisingoutofanyeventoccurringbeforethedateofcessation,butisundernoliabilityforanythingoccurringafterthedateofcessation.
17.6 Whenanassured ceases tobe insuredunder rule16.4he remains liable forpremiumforthepolicyyearinwhichthecessationoccurspro-rataonlyfortheperiodbeginningwiththedateofentryandendingwiththedateoftermination.
17.7 Whenanassuredceasestobeinsuredbyvirtueofrule17.2(2),hecontinuestobeinsuredbytheinsurerinrespectofwreckliabilitiesinaccordancewithrules3.8.6and3.11,andonsuchothertermsasmaybeagreedbytheinsurer.
17.8 Whenanassured’sinsuranceiscancelledunderrule17.3then: 1)ifthecancellationoccurswhiletheassuredis,butforthecancellation,in-
sured,suchassuredandhissuccessorsare,andremain,liableforallpremiuminrespectofthepolicyyearduringwhichthedatespecifiedinthenotice(‘thedateofcancellation’)occurspro-rataonlyfortheperiodbeginningwiththedateofentryandendingwiththedateofcancellationandinrespectofprevi-ouspolicyyears irrespectiveofwhetherornotnoticehasbeengivenunderrule17.3;
2)ifthecancellationoccursaftertheassuredhasceasedtobeinsuredforsomeotherreason,suchassuredandhissuccessorsremainliableforallpremiumasprovidedforinrule17.5(1);
3)theinsurerceasestobeliableforanyclaimsinrespectofanyshipsenteredbysuchassured:
a)whichmayarisebyreasonofanyeventoccurringafterthedateofcancel-lation;or
b)whichhaveaccruedorarisenduringapolicyyearforwhichsumsremainedowingbutunpaidbytheassuredinfullorinpartatthedateofcancellation;or
c)whichmayhaveaccruedorariseninanyyearotherthanonereferredtoin(3)babove,whetherornottheinsurermayhaveadmittedliabilityforsuchclaimsormayhaveknown,atthedateofcancellation,thataclaimwaslikelytoaccrue.
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SeCTIon k: PreMIUMS
18.1 Theassuredagreestopayallpremiumandothersumsdeterminedbytheinsurer,insuchmannerandatsuchtimeastheinsurermayrequire.
18.2 Ifashipislaid-upinasafeportwithoutanycargoonboardfor30ormoreconsecu-tivedaysafterfinallymooringthere,theassuredis,subjecttorule18.3,allowedapro-ratareturnofpremiumuptoamaximumrateof75%.Anylay-upreturnisre-ducedpro-rataforanyperiodofshiftingwithintheportduringlay-up.
exclusions to rule 18.2 Unlessotherwiseagreedbytheinsurers,thereshallbenoreturnif: a.therearecrewonboardtheshipotherthanforsecurityorformaintenancenec-
essaryforthesafetyoftheship;or b.repairsarecarriedoutotherthanforthesafetyoftheship.
18.3 Ifanassureddoesnotnotifyandsubmithisclaimforreimbursementtotheinsurerinwritingwithinthreemonthsunderrule16.5,orwithinthreemonthsoftheendofthepolicyyearunderrule18.2,noallowanceorreturnshallbemadeunlesstheinsurerotherwisedetermine.
19.1.1 Anypremiumorothersumsdueshallbedesignatedinsuchcurrency,andbepay-ableinsuchmannerandatsuchtime,astheinsurermayspecify.Ifanysumdueisnotpaidonthespecifieddate,timebeingoftheessence,suchassuredshallpayinterestontheamountoutstandingfromthatdateuntilthedateofpaymentatsuchrateastheinsurerdetermines.Theinsurermay,however,waivepaymentofinterestinwholeorinpart.
19.1.2 Whereanassuredhasappointedabroker,thebrokeristheagentoftheassured.Paymentsofthepremiumandothersumsduetotheinsurershallnotbeconsideredreceivedbytheinsureruntilactuallyreceivedbyit,andpaymentbytheassuredtohisbrokerorotherintermediaryshallnotconstitutepaymenttotheinsurer.
19.1.3 Wheretheassuredhasappointedabroker,paymentbytheinsurertothebrokerofsumsduetotheassuredshallconstitutepaymenttotheassured.Anysuchpay-mentshallfullydischargetheinsurer’sliabilityinrespectofsuchsums.
19.2 Iftheship,whichissubjecttoinsurancecoverage,isnotinthepossessionoftheassured,theassuredacknowledgesthattogetherwiththepolicyholder,heshallbejointlyandseverallyliableforalltheclaimsarisingfromcontractofinsuranceinfavoroftheinsured;inthisregard,theassuredacknowledgesthatforalltheclaimsoftheinsured,precautionaryattachmentshallbeapplicabletoeveryship,whichareinpossessionoftheassured,inaccordancewiththearticles1352p.1(r),1353and1369ofTurkishCommercialCodenumbered6102.
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SeCTIon l: GenerAl TerMS And CondITIonS
20.1 Whenevertheinsurer’sagreementorapprovalisrequiredbytherules,itmustbegiveninwriting,andnoagreementorapprovalshallbeofanyeffectintheabsenceofsuchwrittenagreement.
20.2 The insurershallbeentitledtogivedisclosureof informationrelatingtotheassured’sbusinesswhichhasbecomeknowntotheinsurerwheresuchdisclo-sureisrequiredbylaw,oranyrule,regulation,orderordirectionofanyauthor-ityorifnecessaryfortheproperperformanceoftheinsurer’sobligations.
20.3 Allnoticesanddocumentsrequiredbytherulestobegiventotheinsurermustbeinwritingandaddressedtotheinsurer.
20.4 Allnoticesanddocumentsrequiredbytherulestobeservedonanassuredmaybeservedastheinsurerdecideseitherpersonally,orbypost,faxore-mailtohim:
1)athisaddressasrecordedbytheinsurer;or 2)atanyotheraddresshehasnotifiedtheinsurerasbeinghisaddressforser-
vice;or 3)atanyaddressofabrokeroragentthroughwhomanyshiphasbeenentered
intheinsurer.20.5 Everynoticeanddocumentservedpersonallyisdeemedservedonthedayof
service;ifservedbypost,faxore-mailisdeemedservedontheseconddayafterpostingorsending.Proofofpostingissufficientproofofservicebypost,whiletheinsurer’srecordofanyelectroniccommunicationissufficientproofofser-vicebyothermeans.
21 Anyandalldisputesarisingoutoforinconnectionwiththerulesandanycon-tractofinsurancebetweentheinsurerandaninsuredpartyaregovernedbyandconstruedinaccordancewithTurkishLawandshallbereferredtotheIstanbulCommercialCourtwhichspecializesinMaritimeaffairsunlessthepartiesagreeotherwise.
Powers of Board and Insurers:
Disclosure:
Notices:
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