FD&D (CLASS 6) / PART IV / RULE 24

EXCLUSION OF RISKS COVERED BY HULL POLICIES

The Association shall not insure a Member to any extent whatsoever against any Costs, loss liability or expense against which the Member would be insured (save to the extent of any franchise or deductible) if the Entered Ship were fully insured either:

24.1

Under Hull Policies on terms not less wide than those of the Lloyd’s Marine Policy MAR Form 1/1/82 with the Institute Time Clauses Hulls 1/10/83 attached; or

24.2

Under policies providing for Time Charterers’ liability for damage to Hull on terms not less wide than those available under Rule 19.24.2 of the Rules of Class 3 – Protection & Indemnity – of the Association.

24.3 PROVIDED ALWAYS THAT:

24.3.1 Any franchise or deductible to which any such policy is subject shall be deemed not to exceed 1 percent of the Entered Ship’s insured value or, if not known, of the free uncommitted market value of the Entered Ship; and

24.3.2 The Member shall provide the Managers with satisfactory evidence of the relevant franchise or deductible.