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P&I (CLASS 3) / PART III / RULE 19 RISKS COVERED / 19.14 Towage
19.14.1 Towage of an Entered Ship
Liability which a Member may incur, together with costs and expenses incidental thereto, arising out of the towage of an Entered Ship:
19.14.1.1 under the terms of a contract entered into for the purpose of entering or leaving port, or manoeuvring within the port, during the ordinary course of trading;
19.14.1.2 in the ordinary course of trading of an Entered Ship which is habitually towed from port to port or from place to place.
Provided always that:
19.14.1.2.1 such liability shall only be covered by the Association to the extent that the Member is not insured against such liability under the Hull Policies on the Entered Ship; and
19.14.1.2.2 such Ship has been so declared to the Managers;
19.14.1.3 under the terms of any other contract for the towage of an Entered Ship.
Provided always that:
19.14.1.3.1 the towage contract 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.
19.14.2 Towage by an Entered Ship
Liability which a Member may incur, together with costs and expenses incidental thereto, arising out of the towage by an Entered Ship of any ship or object.
Provided always that:
19.14.2.1 an Entered Ship specially designed or converted for the purpose of towage shall have been declared as such to the Managers at the time of entry or at the time of conversion for the purpose of towage; and
19.14.2.2 the towage contract 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; or
19.14.2.3 the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion shall, having regard to all the circumstances, consider the terms of the towage contract as reasonable and the liability as coming within the scope of the cover afforded by the Association; however
19.14.2.4 there shall be no recovery from the Association in respect of any liability for loss of, damage to or wreck removal of, a towed ship or object or of any cargo or other property carried thereon, whether such liability arises under the terms of a contract or otherwise, unless the Managers have agreed in writing to cover such liability.