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P&I (CLASS 3) / PART II / RULE 8
JOINT ENTRIES AND CO-ASSUREDS
8.1 Joint Members
8.1.1 The Managers may accept an application by the Member as the Senior Member for another person or persons to be added to the entry of a Ship (hereinafter referred to as Joint Members)
Provided always that:
8.1.1.1 unless otherwise agreed in writing by the Managers, the Senior Member and all Joint Members shall be jointly and severally liable to pay all Contributions or other sums due to the Association in respect of such entry, and the receipt by any one of such persons of any sums payable by the Association shall be a sufficient discharge of the Association for the same;
8.1.1.2 the Association shall not insure any Joint Member against any liabilities, costs or expenses which arise other than out of operations and/or activities customarily carried on by or at the risk and responsibility of shipowners (or in the case of a charterer’s entry, a charterer) and which are within the scope of the cover afforded by these Rules and the Certificate of Entry.
8.1.2 In relation to such application under Rule 8.1.1 the Senior Member and each Joint Member warrants that the Joint Member is, in relation to the Entered Ship:
8.1.2.1 interested in its operation, management or manning, or
8.1.2.2 the holding company or the beneficial owner of the Senior Member or any Joint Member falling within Rule 8.1.2.1, or
8.1.2.3 a mortgagee or a financial institution (or its subsidiary or affiliate) leasing the Ship as shipowner to the Senior Member, or
8.1.2.4 the bareboat or demise charterer.
8.1.3 For the purpose of this Rule 8.1, the liability of the Senior Member and all Joint Members to each other shall not be excluded nor be discharged by reason of co-assurance and any payment to the Senior Member or one of the Joint Members in respect of any losses, liabilities and the costs and expenses incidental thereto shall operate only as satisfaction but not exclusion or discharge of the liability of the Senior Member and the Joint Members to each other.
8.2 Co-assureds
The Managers may accept the addition to the entry of a Ship by a Senior Member of the following person or persons as a Co-assured:
8.2.1 a charterer, other than a bareboat or demise charterer, which is affiliated to or associated with the Senior Member
Provided always that:
8.2.1.1 such charterer shall only be covered for the risks, liabilities, costs and expenses for which the Senior Member has cover in accordance with the terms of entry of the Ship in the Association;
8.2.1.2 for the purposes of this Rule 8.2.1 a charterer shall only be affiliated to or associated with the Senior Member if
8.2.1.2.1 both the Senior Member and the charterer have the same parent or
8.2.1.2.2 one of the Senior Member and charterer is the parent of the other;
8.2.1.2.3 where ‘parent’ in Rules 8.2.1.2.1 and 8.2.1.2.2 above is a company which owns at least 50% of the shares in and voting rights of another or owns a minority of the share in the other and the ability to procure that it is managed and operated in accordance with its wishes.
8.2.2 a contractor of the Senior Member for the provision of services by or to the Entered Ship
Provided always that:
8.2.2.1 the contract has been approved by the Association; and
8.2.2.2 the contract includes a Knock for Knock agreement in respect of any and all persons in the contractor’s group; and
8.2.2.3 the Co-assured contractor shall only be covered for liabilities, costs and expenses which are to be borne by the Senior Member under the terms of the contract and to the extent they would, if borne by the Senior Member, be recoverable from the Association in accordance with the terms of entry of the Ship in the Association; and
8.2.2.4 once the Association has made indemnification under such cover for such liabilities, costs and expenses it shall not in respect of that loss or damage be under any further liability and shall not make any further payment to any person whatsoever, including the Senior Member and all Joint Members and Co-assureds insured under the same entry.
8.2.3 other persons (except charterers other than bareboat or demise charterers)
Provided always that:
8.2.3.1 the liability of the Association to such a person only extends insofar as such person may be found liable to pay in the first instance for loss or damage which is properly the responsibility of the Senior Member or, where so entered under Rule 8.2.1, such person’s affiliated or associated charterer insured under the same entry and nothing herein contained shall be construed as extending cover in respect of any amount to the extent such amount would not have been recoverable from the Association by the Senior Member or affiliated or associated charterer insured under the same entry had the claim in respect of such loss or damage been made or enforced against such person; and
8.2.3.2 once the Association has made indemnification under such cover it shall not be under any further liability and shall not make any further payment to any person whatsoever, including, where the Co-assured is insured under the same entry as the Senior Member, such Senior Member and all Joint Members and, in the case of the Co-assured of an affiliated or associated charterer under that entry, such charterer, in respect of that loss.
8.3 Disclosure
Failure by the Senior Member or any Joint Member or Co-assured to disclose material information within the knowledge of the Senior Member or the Joint Member or Co-assured shall be deemed to have been failure of the Senior Member and all the Joint Members and Co-assureds.
8.4 Conduct
Conduct of the Senior Member or any Joint Member or Co-assured which would have entitled the Association to decline to indemnify the Senior Member, Joint Member or Co-assured shall be deemed the conduct of the Senior Member and all the Joint Members and Co-assureds.
8.5 Limits of Cover
Where any Ship is entered in the names of or on behalf of Joint Members and Co-assureds any limits on the cover provided by the Association and set out in these Rules or the Certificate of Entry shall apply to all Joint Members and Co-assureds in the aggregate as if the Ship had been entered by the Senior Member only.
8.6 Communications
Unless the Managers have otherwise agreed in writing, all communication from or on behalf of the Association to the Senior Member or any Joint Member or Co-assured shall be deemed to be within the knowledge of the Senior Member and all Joint Members and Co-assureds and any communication from the Senior Member or any Joint Member or Co-assured to the Association or to the Managers shall be deemed to have been made with the full approval and authority of the Senior Member and all the Joint Members and Co-assureds.
8.7 PROVIDED ALWAYS THAT:
There shall be no recovery in respect of any liabilities, costs or expenses which arise as the result of a claim brought between any of the Joint Members and Co-assureds, or with the Senior Member.