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FD&D (CLASS 6) / PART V / RULE 32
POWERS OF THE BOARD AND THE COMMITTEE RELATING TO THE CONTROL AND SETTLEMENT OF CLAIMS ON THE ASSOCIATION
32.1 Sole Discretion to Decide
Save insofar as is provided under Rule 31 Powers of the Managers relating to the Handling and Settlement of Claims the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have sole discretion to decide which legal or other proceedings shall be commenced or defended, which claims under Rule 18 Extent of Cover shall be taken up and as to the conduct thereof and as to the discontinuance or settlement of any such claims.
32.2 Terms
The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall be entitled at any time in their absolute discretion to impose such terms as they think fit as a condition of their continued support for a claim under Rule 18 Extent of Cover.
32.3 Small Claims
If the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall be of the opinion that it is not appropriate for a Member to be supported by the Association in connection with any claim or dispute or proceedings having regard solely to the probable Costs likely to be incurred in such proceedings as compared with the amount in dispute then the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may in its discretion (in addition to refusing to support the Member in such proceedings) pay to the Member out of the funds of this Class of the Association the whole or part of the claim by or against the Member as the Board (or, in the case of claims not exceeding 2,000,000, the Committee) may think fit.
32.4 Costs, Losses and Liabilities
32.4.1 The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power in its discretion to determine that the Member should be reimbursed in whole or in part for any Costs incurred for which the Association would not be liable by virtue of Rule 20 Risks Specifically Excluded.
32.4.2 The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power in its discretion to determine that the Member should be reimbursed in whole or in part for any losses, liabilities or expenses incurred, for which the Association would not be liable by virtue of Rule 19 General Exclusions, which are incidental to the risks covered by Rule 17 Risks Covered and 18 Extent of Cover.
32.5 Cover
The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may from time to time resolve that in respect of any specified future claims or classes of claims arising in the next Policy Year they will only be supported as to a specified amount or proportion of any type or types of Costs. Where the Board so resolves, notice of such resolution shall be given to all Members as soon as is conveniently possible and an appropriate endorsement shall be endorsed on the Terms of Entry of all Members for the next and future Policy Years.
32.6 Agreement of Claims
The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall meet as often as may be required for settlement of claims which shall be paid by the Association as the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may determine in accordance with these Rules, but the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power from time to time to authorise the Managers to effect payment of claims without prior reference to the Board (or, in the case of claims not exceeding USD2,000,000, the Committee). No Director shall sit on the Board and no Representative shall sit on the Committee while it is engaged in the settlement of any claim in which the Director or Representative is interested.
32.7 Power of the Board and the Committee in respect of Claims
Without prejudice to any other provisions of these Rules, the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power in its discretion to reject a claim or reduce the sum payable by the Association in respect thereof, if:
32.7.1 in the opinion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) the Member making the claim has not taken such steps before, at the time of, or after the incident or events giving rise to the claim, to protect the Member’s interests as the Member should have done or as the Member would have done if the Member had not been insured in this Class;
32.7.2 the Ship in respect of which the claim is submitted has ceased before the incident which gave rise to the claim to be fully classed by a classification society approved by the Managers or if the Member has failed fully and timely to comply with all the rules, recommendations and requirements of such society and the Member has failed to give notice of this cesser or failure to the Managers;
32.7.3 the Member has failed fully to comply with the recommendations of a surveyor appointed by the Managers under Rule 28 Classification and Condition of Ships;
32.7.4 the claim shall have been settled or any liability shall have been admitted, by or on behalf of, the Member without the prior consent in writing of the Managers;
32.7.5 the Member failed to comply with a recommendation or directive made at any time by the Board, the Committee or the Managers to the Member, in connection with the handling or settlement of the claim or potential claim;
32.7.6 the Member shall have failed to comply with any of the Member’s obligations under Rule 30 Obligation of the Member in respect of Claims.
32.8 Interest
Save only as provided in Rule 3.6 Insurance Act 2015 a Member shall not be entitled to be paid interest on the Member’s claim against the Association.