1 We insure you for:

1.1 Physical loss and damage arising from:

1.1.1 Perils of the sea or other navigable waters

1.1.2 Fire, lightning or explosion

1.1.3 Piracy risks or violent theft by persons outside the ship

1.1.4 Jettison

1.1.5 Breakdown/accident to nuclear installations/reactors

1.1.6 Contact with berths, equipment, road vehicles or aircraft or objects falling from aircraft  

1.1.7 Accidents in loading, discharging or shifting cargo/fuel

1.1.8 Bursting of boilers, breakage of shafts or latent defect in machinery/hull

1.1.9 Negligence of crew members or pilots

1.1.10 Negligence of repairers or charterers - unless we insure the repairers/charterers under this clause

1.1.11 Barratry

1.1.12 Lawful acts of an authority in respect of existing or threatened pollution arising from damage to an insured ship from an insured risk

1.2 Salvage contributions arising from the avoidance of loss/damage arising under 1.1

2 We do not insure you under this clause for damage arising:

2.1 from earthquake/volcanic eruption

2.2 from war or strikes riots & terrorist risks

2.3 from hostile detonation of a nuclear weapon

2.4 after the ship has been requisitioned with your prior agreement

2.5 15 days after the ship has been requisitioned without your prior agreement

2.6 after you cease to have an interest in the ship

2.7 from lack of due diligence by you or the owners/managers of the ship not acting as a crew member

Qualifications

3 Bottom Plating

In case of a claim for damage to bottom plating we will be responsible only for scraping, grit blasting or other surface preparation/painting of the ship’s bottom - and then only for:

3.1 new bottom plates prepared ashore

3.2 the butts or areas of plating immediately adjacent to renewed or refitted plates, which have been damaged during repair

3.3 areas of plating damaged in the course of fairing in place or ashore

3.4 supplying the first coat of primer or anti-corrosive to the areas mentioned above

4 Wages/Maintenance

4.1 We will not be responsible for wages/maintenance of crew members unless incurred:

4.1.1 solely during removal of the ship, with the Managers’ agreement, from one port to another for repairs or trials after repairs and

4.1.2 while the ship is moving through the water

4.2 We do not insure you for the charges of anyone whom you appoint to obtain/supply information or documents

5 Unrepaired damage

5.1 If damage is unrepaired when your insurance ceases, we will pay the reasonable depreciation in the market value of the ship attributable to it, not exceeding the lower of:

5.1.1 the reasonable repair costs and

5.1.2 the insured value of the ship

5.2 We will not pay for unrepaired damage if the ship subsequently becomes a total loss during the period of your insurance, even if this arises from an insured risk

6 Total Loss

6.1 In case of actual total loss we will pay the insured value of the ship

6.2 If the reasonable cost of recovery and repairs arising from one accident is estimated to exceed the insured value, we will pay the insured value as a constructive total loss, less any salvage value

7 Tenders

7.1 The Managers may:

7.1.1 decide where the ship will go for repairs - and will refund to you the additional expense of any necessary voyage to get there

7.1.2 veto any repairer or place of repair

7.2 The Managers may take tenders (or require that further tenders be taken). If they do, and they accept a tender, you are entitled to a tender allowance of 30% on the insured value per year for time lost between sending invitations to tender and accepting tenders if:

7.2.1 the time is lost solely as a result of taking tenders and

7.2.2 you accept the tender without delay

7.3 We deduct from the tender allowance any of the following recovered for any part of the period covered by the allowance:

7.3.1 amounts for fuel, stores and wages/maintenance of crew members - including amounts allowed in general average

7.3.2 damages from anyone else for detention, loss of profit or running expenses

7.4 If part of the cost of the repair (except the deductible) is not recoverable under this clause, we will reduce the tender allowance by the same proportion

7.5 If the Managers are not given a reasonable opportunity to require tenders, we will deduct 15% from the claim

8 Salvage

8.1 If your ship is insured for less than its salved value, we will pay salvage contributions reduced by the percentage by which the insured value is less than the salved value

8.2 If your ship receives salvage services from another ship in the same ownership/management, this will not affect your insurance but liability for the amounts payable will be determined by a sole arbitrator, agreed by you and by the Managers  

9 New for Old

We pay claims for physical loss and damage without deduction new for old

1 We insure you for:

Your liability for the following arising from your ship coming into collision with another ship:

1.1 Physical loss of and damage to the other ship*

1.2 Delay/loss of use of the other ship*

1.3 General average/salvage contributions in respect of the other ship*

*or of property on board the ship

Qualifications

2 Set Off

If both ships are to blame, we will limit your claim to the proportion of the damage to the other ship (or property on board it) for which you are liable:

2.1 unless the liability of one or both of the ships is limited by law

2.2 irrespective of the amount you have to pay, or which may be paid to you, after any set off of your claim against the other ship  

3 Associated Ships

If your insured ship collides with another ship in the same ownership/management, this will not affect your insurance but liability will be determined by a sole arbitrator, agreed by you and by the Managers

1 We insure you for your liability for:

1.1 Physical loss of or damage to third party property - and consequential loss arising from this

1.2 Death, injury or illness of third parties - and consequential loss arising from this

1.3 Your neglect/failure to raise remove or destroy any insured ship or any third party property - damaged as a result of an accident as specified at 1.1

1.4 Special compensation to a salvor of your ship for measures taken to protect the environment, subject, if arising from actual or threatened pollution, to your limit for pollution as stated in your certificate and to G1:3. We only insure you under this paragraph (1.4) to the extent that the compensation:

1.4.1 is not payable by anyone with an interest in the salved property and

1.4.2 is imposed on you under Article 14 of the International Convention on Salvage 1989 (or legislation giving effect to this) or is assumed under a standard form of salvage agreement approved by the Managers  

1.5 Life salvage

1.6 Towage, as long as:

1.6.1 it is under a contract for customary towage for entering/leaving port or manoeuvring within port, during the ordinary course of trading and not made necessary by an accident or

1.6.2 the Managers have approved it in advance

2 We do not insure you under this clause for liabilities:

2.1 under 1.1 in respect of loss of or damage to:

2.1.1 another ship with which your ship has collided (or property on this ship)

2.1.2 property of a builder/repairer, or for which the builder/repairer is responsible, on your ship

2.1.3 high value goods, precious metal, precious jewellery or valuable works of art
 belonging to anyone on board your ship

2.1.4 non-essential personal effects of crew members

2.2 under 1.2 in respect of:

2.2.1 death, injury or illness of your employee - or of anyone employed to work on or in connection with your ship, or with its repair, or with equipment used or property carried on it

2.2.2 your contractual liability to compensate someone else in respect of that other person’s employees or your own employees

2.3 arising from pollution - except as specified at 1.4

2.4 in respect of your owned/leased carrying equipment which we do not insure for loss/damage

2.5 which are contractual liabilities in respect of your owned/leased:

2.5.1 fuel or property (other than equipment)

2.5.2 handling equipment which we do not insure for loss/damage

1 We insure you for:

Your liability for fines and other penalties, including confiscation, imposed by an authority on you (or anyone acting for you) in respect of the following:

1.1 safety at work on or relating to your ship

1.2 smuggling

1.3 any customs regulation relating to the construction/adaptation/fitment of your ship

1.4 immigration

1.5 any other act neglect or default of your employees/agents - in the course of their duties in respect of your ship

2 We do not insure you under this clause:

2.1 for breach of regulations relating to:

2.1.1 overloading of an insured ship

2.1.2 illegal fishing

2.1.3 pollution

2.1.4 competition, regulation of companies or privacy and protection of personal data, including the General Data Protection Regulation (GDPR)

2.2 in respect of your owned/leased carrying equipment which we do not insure for loss/damage

Qualifications

3 Intentional/Reckless Conduct

The Directors may in their discretion reduce or reject a claim if you or your employee has acted (or failed to act) intentionally or recklessly

4 Illegality

If insurance for any of the matters specified at 1 above is held to be illegal, this will apply only to the matters concerned and will not affect other insurance under this clause or elsewhere in your policy

5 Enforcement of Reimbursement

If it is held by a court or tribunal that you have no right to enforce reimbursement of a claim under this clause, we undertake to treat the claim as if your right is enforceable unless it would be illegal for us to do so

1 We insure you for the following costs (subject to X5:3):

1.1 Mitigation

Costs of minimising a claim  

1.2 Investigation & Defence

Costs arising from investigating an accident which may give rise to a claim and protecting your interests in relation to it (including legal and survey fees) - including the costs of recovering a debt if payment is withheld solely because of a claim  

1.3 Disposal & Wreck Removal

Costs, additional to costs which you would have incurred in any event, of lighting, marking, raising (or attempted raising), removal or destruction of the wreck of your insured ship and property on board it, which appears during your period of insurance

1.4 Infectious Disease

Additional costs as a result of the outbreak of infectious disease on your ship or ashore

1.5 Landing Sick/Injured Persons & Stowaways/Refugees

Additional costs, including landing persons saved at sea by your ship

2 We do not insure you under this clause for costs arising from:

2.1 delay while awaiting a substitute crew member

2.2 earthquake/volcanic eruption

2.3 war, strikes riots & terrorist risks - except costs under 1.1-1.2 for mitigation or investigation/defence of a claim which we insure under X2-X4 or X6

2.4 hostile detonation of a nuclear weapon

Qualifications

3 Approval/Agreement

We only insure you if:

3.1 the Managers have agreed to the costs or

3.2 the Directors decide that the costs were properly incurred

1 We insure you for:

1.1 Your liability for the following, to the extent that you would have been insured under X3:1.1-1.2 save only for the exclusion at X3:2.3:

1.1.1 Physical loss of or damage to third party property - and consequential loss arising from this

1.1.2 Death, injury or illness of third parties - and consequential loss arising from this

1.2 Fines imposed as a result of breach of regulations relating to pollution by an authority on you (or anyone acting for you) as owner of an insured ship

2 We do not insure you under this clause for:

2.1 fines and penalties for non-compliance with the International Convention for the Prevention of Pollution from Ships 1973 as modified by the Protocol of 1978 and subsequent protocols (and legislation implementing the convention) concerning the construction, adaptation and equipping of ships  

2.2 breach of regulations in respect of your owned/leased carrying equipment which we do not insure for loss/damage

Qualifications

3 References to X4

The following paragraphs of X4 also apply to claims under 1.2 above:

3.1 Intentional/Reckless Conduct (X4:3)

3.2 Illegality (X4:4)

3.3 Enforcement of Reimbursement (X4:5)

X7 applies to clauses X1-X6

1 Insured Ships & Insured Trading Area

We insure you under X1-X6 only for risks arising from the management, navigation or operation of your insured ships within your insured trading area

2 General provisions

G1:5 does not apply to X1-X6

3 Additional Insurances

3.1 The Managers may refuse to pay further claims if you effect additional insurances for:

3.1.1 disbursements, managers’ commission, profits or excess/ increased value of the hull and machinery - exceeding 25% of the insured value of the ship

3.1.2 premiums:

a. exceeding the actual premiums of all interests insured or
b. for a period of more than 12 months or
c. for a sum that does not reduce pro rata monthly

3.1.3 returns of premium other than for an amount reflecting the actual returns allowable under any insurance which is irrevocable in the event of total loss of the ship, whether by risks insured or otherwise

3.1.4 total loss of ship on Policy Proof of Interest (PPI), Full Interest Admitted (FIA) or other similar terms

3.2 We will not refuse to pay claims by a joint assured - which is insured as mortgagee of the insured ship and which accepted this insurance without knowledge that additional insurance as at 3.1 had been effected

4 Chartered Ship

We do not insure you in respect of an insured ship while it is chartered to someone else