P&I (CLASS 3) / PART III / RULE 19 RISKS COVERED / 19.9 Collision

Liabilities which a Member may incur, together with costs and expenses incidental thereto, as a result of a collision between an Entered Ship and any other ship.

The following shall be recoverable:

19.9.1 Collision clause

The one-fourth of the Member’s liability (or such other proportion as may be applicable and agreed by the Managers) which is not covered under Clause 8 of the Institute Time Clauses Hulls 1/10/83 or under other forms of Hull Policies on the Entered Ship approved by the Managers.

19.9.2 Excess collision

That part of the Member’s liability which exceeds the amount recoverable under the Hull Policies on the Entered Ship and any amount recoverable under Rule 19.9.1 above solely by reason of such liability exceeding the insured value under the said policies.

Provided always that:

19.9.2.1 Proper value
for the purposes of this Rule 19.9.2 the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall determine whether the Entered Ship was insured for a proper value under the Hull Policies on that Ship. If the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) determines the amount actually insured to be less than the proper value, the Member shall only be entitled to recover the excess of such proper value.

19.9.2.1.1 Note: In determining whether the Ship was insured for a proper value the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) will need to be satisfied that the said Hull Policies have been the subject of periodic review in the light of proper advice on market conditions. A proper value will be a figure which is reasonably close to the equivalent of the free uncommitted market value of the Ship at the time of the collision.

19.9.3 Collision liability to cargo

Loss of or damage to cargo carried in an Entered Ship, arising out of a collision between the Entered Ship and another ship caused by the fault both of the Entered Ship and of the other ship, for which a Member may be liable to indemnify the owner or charterer of such other ship solely by reason of responsibility for such loss or damage being determined in a country where the liability for such loss or damage is joint and several and the “Both to Blame Collision Clause” is held invalid.

Provided always that:

19.9.3.1 there shall be no cover under this Rule 19.9.3 unless the Association has agreed to cover the Member’s liabilities in respect of cargo under Rule 19.17 Cargo and cover under this Rule 19.9.3 shall be in accordance with the provisions of Rule 19.17.

19.9.4 Injury and death

Liability for the injury to, or death of, Seafarers or others insofar as such liability may be covered under Rule 19.1 Seafarers, Rule 19.2 Passengers, and Rule 19.4 Injury to, Illness of or Death of Third Parties.

19.9.5 Property damage

Liability for loss of or damage to property (other than the ship with which the Entered Ship collided, or cargo or other property on that other ship) insofar as such liability may be covered under Rule 19.10 Damage to Property.

19.9.6 Non-contact damage to ships

Liability for losses caused to any other ship or cargo or other property therein insofar as such liability may be covered under Rule 19.11 Non-Contact Damage to Ships.

19.9.7 Pollution

Liability 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 19.12 Pollution.

19.9.8 Wreck removal

Liability for removal of wrecks insofar as such liability may be covered under Rule 19.13 Wreck Removal.

19.9.9 Cargo

Liability in respect of cargo insofar as such liability may be covered under Rule 19.17 Cargo.

19.9.10 PROVIDED ALWAYS THAT:

19.9.10.1 Hull policies
a Member shall not be entitled to recover any amounts which would be recoverable under the Hull Policies on the Entered Ship or which would have been recoverable had there been no franchise or deductible applicable to those policies;

19.9.10.2 Both to blame
unless otherwise provided for under a form of Hull Policy on the Entered Ship approved by the Managers, if both ships are to blame then, when the liability of either or both of the ships in collision becomes limited by law, claims under this Rule 19.9 shall be settled on the principle of single liability. Otherwise claims under this Rule 19.9 shall be settled on the principle of cross-liabilities, as if the owner of each ship had been compelled to pay the owner of the other ship such proportion of the latter’s damages as may have been properly allowed in ascertaining the balance or sum payable by or to the Member in consequence of the collision;

19.9.10.3 Member’s own ships
if a collision occurs involving two or more ships belonging to the same Member, or where a claim arises in respect of cargo belonging to a Member, the Member shall be entitled to recover from the Association and the Association shall have the same rights as if the ships had belonged to different owners, or as if the cargo had belonged to a third party.