P&I (CLASS 3) / PART III / RULE 19 RISKS COVERED / 19.25 Special Cover for Salvors

Without prejudice to the generality of Rule 19.24 Special Cover and in accordance with Rule 2.47.2 a Member may be insured against liabilities, together with costs and expenses incidental thereto, which may be incurred in connection with any salvage service or attempted salvage service provided to a ship by the Member or by any subcontractor of the Member or any of their respective servants or agents. The following may be covered:

19.25.1 Salvage ships

Liabilities, together with costs and expenses incidental thereto, arising in respect of the Member’s interest in an Entered Ship out of events occurring during the period of entry of the Ship in the Association and in connection with the operation of the Ship.

19.25.2 Oil pollution

Liabilities, together with costs and expenses incidental thereto, caused by an escape or discharge of oil which occurs during such salvage services in accordance with the provisions of Rule 19.12 Pollution, whether or not they are in respect of a Member’s interest in an Entered Ship (despite the provisions of Rule 3.1 Extent of Cover).

19.25.3 Salvors’ liabilities

Liabilities, together with costs and expenses incidental thereto, caused by events occurring during such salvage services, and which are not covered under Rules 19.25.1 or 19.25.2 above, whether or not they are in respect of a Member’s interest in an Entered Ship (despite the provisions of Rule 3.1 Extent of Cover).

19.25.4 PROVIDED ALWAYS THAT:

19.25.4.1 Specific cover

there shall be no recovery under this Rule unless cover has been specifically extended in writing by the Managers and the Member has paid or agreed to pay such additional Call or premium as may be required by the Association;

19.25.4.2 Risks covered

the cover given under this Rule 19.25 in connection with any salvage or attempted salvage service provided to a ship shall be in all respects the same as that given under Rule 19.1 to Rule 19.23 inclusive in respect of the operation of Entered Ships, save that in the case of cover given under Rules 19.25.2 or 19.25.3 the liability need not have been imposed or incurred in respect of an Entered Ship;

19.25.4.3 Contracts of indemnity or guarantee

there shall be no recovery in respect of any liability which would not have been incurred but for the provisions of a contract of indemnity or guarantee given by the Member or the Member’s subcontractor, or any of their respective servants or agents, unless the Managers shall have approved such contract in advance and the Member has paid or agreed to pay such additional Call or premium as may be required by the Association (see Rule 19.15 Contracts of Indemnity or Guarantee);

19.25.4.4 Application for cover

it is a condition of every insurance under Rules 19.25.2 and 19.25.3 that the Member and each of the Member’s Associated Companies, shall at the time when the Member’s cover is afforded under this Rule and thereafter within 30 days before the beginning of each Policy Year, apply to enter for insurance in the Association every ship of which they are then in possession or control, being a ship used or intended to be used in connection with salvage operations, on terms that every such application may be accepted in respect of such one or more ships as the Managers may in their discretion determine.