FD&D (CLASS 6) / PART II / RULE 16

ASSOCIATED COMPANIES

16.1 Extension of Cover to Associated Companies

The Managers may accept the entry of any Ship on terms that the benefit of the cover afforded by the Association to a Member in respect of that Ship shall be extended to Associated Companies of that Member.  The rights and obligations as between the Association and any such Associated Company shall be such as may be agreed between the Member and the Managers.

16.2 Conditions of Reimbursement

The liability of the Association to the Member and to Associated Companies to whom cover is extended in accordance with Rule 16.1 shall be limited in amount to reimbursement of claims relating to liabilities, costs or expenses incurred by one or more of the Associated Companies to the extent and amount only that the Member:

16.2.1 would have incurred the same liabilities, costs and expenses if the same claims had been pursued against the Member; and

16.2.2 would thereafter have been entitled to obtain reimbursement from the Association in accordance with the terms of entry of the Ship in the Association.

Provided always that:

16.2.2.1 conduct of any Associated Company which would have entitled the Association to decline to indemnify that company shall be deemed to be the conduct of the Member.

16.3 Receipt of Reimbursement

The receipt by the Member, or any Associated Company to whom cover has been extended in accordance with
Rule 16.1 above, of any reimbursement by the Association shall be deemed to be the receipt by the Member and all such Associated Companies jointly and shall fully discharge the Association from any further liability to the Member and any Associated Companies in respect of the loss or damage in respect of which the claim was brought.