FD&D (CLASS 6) / PART IV / RULE 20

RISKS SPECIFICALLY EXCLUDED

20.1

Subject always to the absolute discretion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) under Rule 32.1 Sole Discretion to Decide, there shall be no recovery from the Association in respect of Costs which arise in respect of:

20.1.1 Bad debts

Claims against persons from whom there is, in the opinion of the Managers, no reasonable prospect of recovery, taking into account any legal problems of enforcement and any assets available to satisfy a judgement or award.

20.1.2 Admitted debts

Claims against a Member which relate to money owed by that Member and where, in the opinion of the Managers, there is no justification in the Member’s refusal to pay.

20.1.3 Claims against the Association

Claims against the Association.

20.1.4 Support

Any legal or other proceedings or the appointment of any lawyers or other experts at a time when the Member is not supported by the Association in respect of such proceedings or appointment or when the Member has failed to comply with a direction issued by the Managers under Rule 31.1 Control of Claims or the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) under Rule 32.2 Terms.

20.1.5 Matters the Member knew or ought to have known

Matters where the Member knew or ought to have known that the Member was in breach of any regulations or agreements whether relating to safety, navigation, port requirements, or contracts of employment, or otherwise.

20.1.6 Road vehicles

Liabilities which a Member may incur as the owner or operator of a road vehicle.

20.1.7 Diving

The activities of professional or commercial divers where the Member is responsible for such activities, unless:

20.1.7.1 special cover has been agreed between the Member and the Managers under Rule 7 Special Insurances; or

20.1.7.2 the activities are incidental to and carried out in relation to the inspection, repair or maintenance of the Entered Ship or in relation to damage caused by the Entered Ship; or

20.1.7.3 the activities are recreational.

20.1.8 Sanctions

Matters where the provision of cover or a payment by the Association in respect thereof may expose the Association or the Managers to the risk of being subject to any Sanction, penalty, prohibition or any adverse action by a state, international or supranational organisation or other competent authority.

20.1.9 Cyber risks

Liabilities directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus, computer process or any other electronic system;

Provided always that:

20.1.9.1 Subject otherwise to the terms of entry, the Costs otherwise recoverable shall not be prejudiced where liabilities arise from the use or operation of any computer, computer system, computer software programme, computer process or any other electronic system, if such use or operation is not as a means for inflicting harm;

20.1.9.2 Where the terms of entry otherwise afford cover in respect of the risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, this Rule 20.1.9 shall not operate to exclude Costs (which would otherwise be recoverable) in respect of liabilities arising from the use of any computer, computer system, computer software programme, computer process or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.

20.1.10 Declared Communicable Diseases

20.1.10.1 Liabilities directly arising from any transmission or alleged transmission of a Declared Communicable Disease.

20.1.10.2 The exclusion in Rule 20.1.10.1 shall not apply to liabilities which arise directly from an identified instance of a transmission of a Declared Communicable Disease, and it is established to the satisfaction of the Managers that such transmission took place before the date of determination by the World Health Organisation (WHO) of the Declared Communicable Disease.

20.1.10.3 Irrespective of whether Rule 20.1.10.2 may apply, there shall not in any event be cover for any:

20.1.10.3.1 liability, cost or expense to identify, clean up, detoxify, remove, monitor, or test for the Declared Communicable Disease whether the measures are preventative or remedial;

20.1.10.3.2 liability for or loss, cost or expense arising out of any loss of revenue, loss of hire, business interruption, loss of market, delay or any indirect financial loss, howsoever described, as a result of the Declared Communicable Disease;

20.1.10.3.3 loss, damage, liability, cost or expense caused by or arising out of fear of or the threat of the Declared Communicable Disease.

20.1.10.4 In this Rule 20.1.10, a Declared Communicable Disease is an outbreak of a Communicable Disease which the WHO has determined to be a Public Health Emergency of International Concern and Communicable Disease means any disease, known or unknown, which can be transmitted by means of any substance or agent from any organism to another organism where:

20.1.10.4.1 the substance or agent includes but is not limited to a virus, bacterium, parasite or other organism or any variation or mutation of any of the foregoing, whether deemed living or not, and

20.1.10.4.2 the method of transmission, whether direct or indirect, includes but is not limited to human touch or contact, airborne transmission, bodily fluid transmission, transmission to or from or via any solid object or surface or liquid or gas, and

20.1.10.4.3 the disease, substance or agent may, acting alone or in conjunction with other co-morbidities, conditions, genetic susceptibilities, or with the human immune system, cause death, illness or bodily harm or temporarily or permanently impair human physical or mental health or adversely affect the value of or safe use of property of any kind.