P&I (CLASS 3) / PART III / RULE 19 RISKS COVERED / 19.12 Pollution

Liabilities which a Member may incur, together with costs and expenses incidental thereto, as the result of an escape or discharge or threatened escape or discharge of oil or any other substance from the Entered Ship or from other property.

The following shall be recoverable:

19.12.1 Damages

Liability for damages or compensation payable to any person arising from an escape or discharge or threatened escape or discharge of oil or any other substance from the Entered Ship or from other property.

19.12.2 Clean-up

The costs of any measures reasonably taken for the purpose of preventing, minimising or cleaning up an escape or discharge of oil or any other substance from the Entered Ship or from other property together with any liability for losses or damages arising from any measures so taken.

Provided always that:

19.12.2.1 the value of any ship or wreck and of any stores and materials, or cargo or other property, removed and saved as the result of any such measures shall either be credited to the Association or deducted from any recovery due from the Association.

19.12.3 Agreement

Liability which a Member may incur, together with costs and expenses incidental thereto, as a party to any agreement relating to oil pollution, for loss, damage or expenses, including expenditure reasonably incurred in accordance with the Member’s obligations under such agreement.

Provided always that:

19.12.3.1 such agreement has been approved by the Managers and the Member has paid or agreed to pay such additional Call or premium as may be required by the Association.

19.12.4 Government order

The costs or liabilities incurred as a result of compliance with any order or direction given by any Government or authority as a consequence of an incident involving an escape or discharge or threatened escape or discharge of oil or any other substance for the purpose of preventing or reducing any such escape, discharge or threat or damage incidental thereto.

Provided always that:

19.12.4.1 such costs or liabilities shall not be recoverable where the compliance with such an order or direction is a requirement prior to the normal operation or salvage or repair of the Entered Ship; and

19.12.4.2 such costs or liabilities are not recoverable under the Hull Policies on the Entered Ship.

19.12.5 Salvors’ special compensation

Liability which a Member may incur to pay special compensation to a salvor of an Entered Ship under the terms of the Special Compensation P&I Club (SCOPIC) Clause or in respect of work done or measures taken to prevent or minimise damage to the environment under the provisions of Article 14 of the International Convention on Salvage 1989 or the terms of a standard form salvage agreement equivalent thereto approved by the Association.

19.12.6 Fines

Liability which a Member may incur for the payment of fines in respect of an escape or discharge or threatened escape or discharge of oil or any other substance insofar as such liability may be covered under Rule 19.19 Fines.

19.12.7 PROVIDED ALWAYS THAT:

19.12.7.1 there shall be no recovery in respect of losses, liabilities, or the costs and expenses incidental thereto, arising as the result of an escape or discharge or threatened escape or discharge of oil or any other substance other than under this Rule 19.12 and all recoveries hereunder shall be subject to any Limit of Liability; and

19.12.7.2 there shall be no recovery under this Rule 19.12 of any liabilities in respect of cargo which come within the provisions of Rule 19.17 Cargo; and

19.12.7.3 there shall be no recovery under this Rule 19.12 of any liabilities in respect of expenditure which forms or could form a part of General Average expenditure under any unamended version of the York/Antwerp Rules; and

19.12.7.4 there shall be no recovery under this Rule 19.12 of any liabilities arising as a consequence of the escape or discharge or threatened escape or discharge of any oil or other substance (previously carried on the Ship) from any land-based dump, storage or disposal facility, unless the escape or discharge results directly from an error in the management or navigation of the Entered Ship, or unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion decides otherwise; and

19.12.7.5 unless otherwise limited to a lesser sum, the Association’s aggregate liability in respect of losses, liabilities, and the costs and expenses incidental thereto, arising as a result of an escape or discharge or threatened escape or discharge of oil to the Senior Member, all Joint Members and Co-assureds under any one Certificate of Entry shall be limited to the Limit of Liability for each Entered Ship in respect of any one incident or occurrence except that:

19.12.7.5.1 where an Entered Ship is also separately insured on behalf of any person (other than a charterer who is not a demise or bareboat charterer) by the Association or by another association which participates in the Pooling Agreement, the aggregate of claims in respect of losses, liabilities, and the costs and expenses incidental thereto, arising as a result of an escape or discharge or threatened escape or discharge of oil recoverable from the Association and/or such other association(s), shall be limited to the Limit of Liability in respect of any one incident or occurrence. If such claims exceed this limit, the liability of the Association in respect of each Certificate of Entry shall be limited to that proportion of the limit that claims recoverable from the Association under that Certificate of Entry bear to the aggregate of the said claims recoverable from the Association and from such other association(s), if any; and

19.12.7.5.2 when the Entered Ship and other ships provide salvage or other assistance to another ship following a casualty and such other ships are insured for losses, liabilities, and the costs and expenses incidental thereto, arising as a result of an escape or discharge or threatened escape or discharge of oil with the Association and/or with any other association which participates in the Pooling Agreement and General Excess Loss Reinsurance Contract, the aggregate of claims from the Entered Ship and such other ships in respect of losses, liabilities, and the costs and expenses incidental thereto, arising as a result of an escape or discharge or threatened escape or discharge of oil arising from the said salvage or other assistance recoverable from the Association and/or such other association(s), shall be limited to the Limit of Liability. If such claims exceed this limit, the liability of the Association in respect of each Entered Ship shall be limited to that proportion of the limit that claims recoverable from the Association in respect of that Ship bear to the aggregate of the said claims recoverable from the Association and from such other association(s), if any; and

19.12.7.6

19.12.7.6.1 where an Entered Ship is a ‘relevant ship’ as defined in TOPIA, the Member shall be a party to that agreement for the period of entry of the Ship in the Association unless the Association otherwise agrees in writing. Where an Entered Ship is a ‘relevant ship’ as defined in STOPIA, the Member shall be a party to that agreement for the period of entry of the Ship in the Association unless the Association otherwise agrees in writing. There shall be no recovery under this Rule in respect of any event arising during a period when the Member is not in compliance with such requirements unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion decides otherwise.

19.12.7.6.2 the Association is the agent of the Member in respect of any Entered Ship which is a ‘relevant ship’ as defined in TOPIA or STOPIA as regards any and all communications and dealings under those agreements.