P&I (CLASS 3) / PART III / RULE 19

RISKS COVERED

Unless otherwise agreed between the Member and the Managers, the Member shall be insured by the Association against the following liabilities, costs and expenses 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:

19.1 Seafarers

Liabilities which a Member may incur, together with costs and expenses incidental thereto, in respect of Seafarers. The following shall be recoverable:

19.1.1 Injury, illness or death

Medical, hospital, funeral and other expenses necessarily incurred and wages, maintenance, compensation and damages payable by reason of the personal injury to, illness of or death of a Seafarer.

Notwithstanding the provisos to Rule 5.1 Right of Recovery, where a Member has failed to discharge or pay a liability for wages, maintenance, compensation or damages for the personal injury to, illness of or death of a Seafarer, the Association shall discharge or pay such liability on the Member’s behalf directly to such Seafarer or dependant thereof.

Provided always that:

19.1.1.1 the Seafarer or dependant has no enforceable right of recovery from any other party and otherwise would be uncompensated;

19.1.1.2 subject to Rule 19.1.1.3 below, the Association shall in no circumstances be liable for any sum in excess of the amount which the Member would have been able to recover from the Association under these Rules and the Member’s terms and conditions of entry;

19.1.1.3 where the Association is under no liability in respect of the claim by virtue of Rules 33.1 Failure to Pay and 35.1 Cesser for Failure to Pay, the Association shall nevertheless discharge or pay the claim to the extent that it arises from an event occurring prior to the cesser of the insurance, but only as agent of the Member and the Member shall reimburse the Association in full.

19.1.2 Shipwreck unemployment indemnity

Wages payable to a Seafarer during unemployment in consequence of the wreck or loss of an Entered Ship and other payments made to Seafarers in consequence of such wreck or loss under statutory obligation.

Provided always that:

19.1.2.1 any such wages and other payments which exceed two months’ basic wages shall not be recoverable from the Association.

19.1.3 Loss of effects

Compensation in respect of loss of or damage to the Personal Effects of a Seafarer or a relative of a Seafarer while on board the Entered Ship.

19.1.4 Substitutes

Expenses necessarily incurred in providing a substitute for a Seafarer who is unfit for duty, or has been left behind for any reason, where liability for such expenses could not reasonably have been avoided.

Provided always that:

19.1.4.1 wages shall only be recoverable as part of the said expenses when the Member is legally obliged to pay wages to two Seafarers simultaneously for the same job and is unable to recover such double wages from any other source.

19.1.5 Distressed seafarers, deserters and strikers

Expenses incurred by or chargeable to a Member under statutory obligation in respect of a distressed Seafarer or Seafarers who desert or go on strike, where such expenses are not recoverable under any other part of this Rule 19.1 and where such expenses cannot be recovered from the Seafarer.

19.1.6 Diversion

Diversion expenses associated with liabilities covered under this Rule 19.1 which are payable in accordance with Rule 19.6 Diversion Expenses.

19.1.7 Repatriation

Repatriation expenses associated with liabilities covered under this Rule 19.1 which are payable in accordance with Rule 19.7 Repatriation.

19.1.8 Collective and special agreements

The liabilities, costs and expenses insured under this Rule 19.1 may be extended to include those for which a Member may be liable under collective or special agreements which have received the prior approval of the Managers.

19.1.8.1 However there shall be no recovery under this Rule 19.1.8 arising out of a Member’s liability under a contract of indemnity or guarantee between the Member and a third party (see Rule 19.15 Contracts of Indemnity or Guarantee).

19.1.9 PROVIDED ALWAYS THAT:

19.1.9.1 There shall be no recovery under this Rule 19.1 in respect of liabilities, costs or expenses:

19.1.9.1.1 which arise as a result of the termination of an agreement of service in accordance with the terms thereof, or by mutual consent, or from any other discretionary act of the Member, or from the sale of an Entered Ship; or

19.1.9.1.2 in respect of Seafarers employed as catering staff on board the Entered Ship when moored (otherwise than on a temporary basis) and open to the public as a hotel, restaurant, bar or other place of entertainment.

19.2 Passengers

Liabilities which a Member may incur, together with costs and expenses incidental thereto, in respect of Passengers. The following shall be recoverable:

19.2.1 Injury, illness or death

Liabilities arising out of the personal injury to, illness of or death of a Passenger, including the diversion and repatriation expenses specified in Rules 19.6 Diversion Expenses and 19.7 Repatriation associated therewith.

19.2.2 Baggage

Liability arising out of the loss of or damage to a Passenger’s baggage.

19.2.3 Casualty

Liability to a Passenger consequent upon an incident or condition on board involving either:

19.2.3.1 collision, stranding, explosion, fire or any other cause affecting the physical condition of the Entered Ship so as to render it incapable of safe navigation to its intended destination; or

19.2.3.2 a threat to the life, health or safety of Passengers.

19.2.4 PROVIDED ALWAYS THAT:

19.2.4.1 the ticket of passage shall relieve the Member of liability, costs and expenses to the maximum extent permitted by the appropriate law, and

19.2.4.2 there shall be no recovery:

19.2.4.2.1 in respect of the cost of forwarding Passengers to their destination or returning them to their port of embarkation, or of their maintenance ashore except insofar as such costs may arise as a consequence of an incident covered under Rules 19.2.1 Injury, illness or death and 19.2.3 Casualty.

19.2.4.2.2 in respect of liabilities arising out of any contract other than the ticket of passage or a charter party.

19.2.4.2.3 in respect of liabilities arising or remaining with the Member as a result of any waiver of rights of recourse against any third party in respect of an excursion by a Passenger away from the Entered Ship.

19.2.4.2.4 in respect of liabilities, costs or expenses incurred as a result of the carriage of a Passenger by air except where such liabilities, costs or expenses arise during the repatriation of a Passenger by air in circumstances covered under Rules 19.2.1 Injury, Illness or Death and 19.2.3 Casualty or, subject always to Rule 19.2.4.2.2, during an excursion from an Entered Ship.

19.2.4.2.5 in respect of loss of or damage to specie, bullion, precious or rare materials or stones, plate, jewellery or other objects of a rare or precious nature, bank notes or other forms of currency, bonds or other negotiable instruments whether carried as cargo or a Passenger’s baggage, unless the value has been declared to the Managers prior to any such carriage, any additional premium paid and any directions made by the Managers for safe custody and carriage complied with.

19.3 MLC 2006

The cover afforded to Members in respect of their liabilities under MLC 2006 is detailed in the relevant Certificate of Entry of the Entered Ship.

19.4 Injury to, Illness of or Death of Third Parties

Compensation and damages for which the Member is liable which are payable by reason of personal injury to, illness of or death of any person, other than a Seafarer or Passenger, and the diversion expenses specified in Rule 19.6 Diversion Expenses associated with the said injury, illness or death.

Provided always that:

19.4.1 cover under this Rule 19.4 is limited to liabilities, costs and expenses arising out of a negligent act or omission on board or in relation to the operation of the Entered Ship, or in relation to the handling of its cargo from the time of receipt of that cargo at the port of shipment until delivery of that cargo at the port of discharge; and

19.4.2 the Member shall take all appropriate steps permitted by law to recover such liabilities, costs and expenses from any other person or insurer concerned with such third party; and

19.4.3 there shall be no recovery under this Rule 19.4:

19.4.3.1 unless the Managers have (except in the case of a relative of a Seafarer) approved of the presence of the third party to travel on board the Entered Ship and the terms and conditions on which the third party is carried, and the Member has paid or agreed to pay such additional Call or premium as may be required by the Association; or

19.4.3.2 in respect of personnel (other than marine crew) employed otherwise than by the Member where the Entered Ship is providing accommodation to such personnel in relation to their employment on an oil or gas production or exploration facility, unless there has been a contractual allocation of risks as between the Member and the employer of the said personnel which has been approved by the Association (see Rule 19.15 Contracts of Indemnity or Guarantee); or

19.4.3.3 in respect of hotel, restaurant, bar or other guests or visitors and catering crew on board the Entered Ship when moored (other than on a temporary basis) and open to the public as a hotel, restaurant, bar or other place of entertainment.

19.5 Stowaways or Persons Saved at Sea

The cost to a Member necessarily incurred in maintaining, landing, deporting or repatriating stowaways or persons saved at sea, including diversion expenses under Rule 19.6 Diversion Expenses and repatriation expenses under Rule 19.7 Repatriation.

Provided always that:

19.5.1 the Member shall take all appropriate steps permitted by law to recover such expenses from the stowaway or person saved at sea, or from any other person or insurer, or from any national or international bodies or organisations concerned with such persons; and

19.5.2 there shall be no recovery in respect of any consequential loss of profit or depreciation.

19.6 Diversion Expenses

The cost to a Member in respect of diversion expenses in circumstances which could entitle the Member to recover under Rule 19.1 Seafarers, Rule 19.2 Passengers, Rule 19.3 MLC 2006, Rule 19.4 Injury to, Illness of or Death of Third Parties (notwithstanding Rule 19.4.1) or Rule 19.5 Stowaways or Persons Saved at Sea, but confined to the net loss to the Member (over and above the expenses that would have been incurred but for the diversion or delay) in respect of port charges, bunkers, insurance, Seafarers’ wages, stores and provisions necessarily incurred as a result of the diversion, while securing medical attention for sick or injured persons on board the ship, or while awaiting a substitute, or for the purpose of attempting to save life at sea.

19.7 Repatriation

The cost to a Member of maintaining, repatriating or deporting persons in circumstances which would entitle the Member to recover under Rule 19.1 Seafarers, Rule 19.2 Passengers, Rule 19.3 MLC 2006, Rule 19.4 Injury to, Illness of or Death of Third Parties or Rule 19.5 Stowaways or Persons Saved at Sea.

19.8 Life Salvage

Sums awarded to third parties by reason of the fact that they have saved or attempted to save the life of any person on or from an Entered Ship but only if, and to the extent that, such payments are not recoverable under the Hull Policies of the Entered Ship or from cargo owners or insurers.

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.

19.10 Damage to Property

Liabilities which a Member may incur, together with costs and expenses incidental thereto, to pay damages or compensation for any loss of, or damage to, or infringement of rights in connection with, property.

The following shall be recoverable:

19.10.1 Fixed and floating objects

Liability arising out of any loss of or damage to any harbour, dock, pier, jetty, land or any object whatsoever moveable or immoveable (not being another ship or cargo or other property therein or cargo or other property carried in the Entered Ship) by reason of contact between the Entered Ship and such harbour, dock, pier, jetty, land or moveable or immoveable object.

19.10.2 Passengers’ baggage

Liability arising out of the loss of or damage to a Passenger’s baggage insofar as such liability may be covered under Rule 19.2 Passengers.

19.10.3 Excess liabilities

That part of the Member’s liability which exceeds the amount recoverable under the Hull Policies on the Entered Ship in respect of the liabilities set out in Rule 19.10.1 above, subject always to provisos 19.9.2.1 and 19.9.10.1 to Rule 19.9 Collision.

19.10.4 Non-contact damage to ships

Liability for losses caused to the owner of 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.

19.10.5 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.

19.10.6 Wreck removal

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

19.10.7 Other property losses

Liability for loss of, or damage to, or infringement of rights in connection with, the property of any person (other than those persons interested in cargo carried in the Entered Ship).

Provided always that:

19.10.7.1 this Rule 19.10.7 excludes liabilities which may be covered under Rules 19.10.1, 19.10.2, 19.10.3, 19.10.4, 19.10.5 and 19.10.6 above.

19.10.8 PROVIDED ALWAYS THAT:

19.10.8.1 there shall be no recovery under this Rule 19.10 in respect of expenditure arising out of a Member’s liability under a contract of indemnity or guarantee between a Member and a third party (see Rule 19.15 Contracts of Indemnity or Guarantee);

19.10.8.2 there shall be no recovery under this Rule 19.10 in respect of any liabilities which a Member may incur to persons interested in another ship, or cargo or other property therein, by reason of a collision between the Entered Ship and that other ship (see Rule 19.9 Collision) or to persons interested in cargo carried in the Entered Ship (see Rule 19.17 Cargo);

19.10.8.3 if the loss, damage or expense relates to any property belonging to the Member (other than that carried on board the Entered Ship – see Rule 20.1.2 Equipment), such Member shall be entitled to recover from the Association, and the Association shall have the same rights, as if such property belonged to a third party, but to the extent only that such loss, damage or expense is not recoverable under any other insurances upon the said property.

19.11 Non-Contact Damage to Ships

Liabilities which a Member may incur, together with costs and expenses incidental thereto, as a result of damage caused to another ship otherwise than by collision between that other ship and the Entered Ship.

The following shall be recoverable:

19.11.1 Other ship or cargo

Liability for loss of or damage to any other ship, or cargo or other property therein, together with damages resulting therefrom.

19.11.2 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 or Rule 19.4 Injury to, Illness of or Death of Third Parties.

19.11.3 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.

19.11.4 Wreck removal

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

19.11.5 PROVIDED ALWAYS THAT:

19.11.5.1 if the loss or damage relates to any ship, or cargo or other property therein, belonging to the Member such Member shall be entitled to recover from the Association and the Association shall have the same rights, as if such ship or cargo or other property belonged to a third party, but to the extent only that such loss, damage or expense is not recoverable under any other insurance upon the said ship, cargo or other property.

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.

19.13 Wreck Removal

Liabilities which a Member may incur, together with costs and expenses incidental thereto, in respect of:

19.13.1 Entered Ship

The raising, removal, destruction, lighting or marking of the wreck of an Entered Ship, or of any cargo, equipment or other property which is or was carried on board an Entered Ship.

19.13.2 The presence or involuntary shifting of the wreck of an Entered Ship, including any cargo, equipment or other property which is or was carried on board.

19.13.3 Other ship

The raising, removal, destruction, lighting or marking of the wreck of any other ship, and of any cargo or other property which is or was on board any other ship.

19.13.4 PROVIDED ALWAYS THAT:

19.13.4.1 the costs of raising, removal, destruction, lighting or marking were compulsory by law, or the costs thereof were legally recoverable from the Member under a contract approved by the Managers;

19.13.4.2 the value of the wreck itself and of any stores and materials or cargo or other property saved shall either be credited to the Association or deducted from any recovery due from the Association;

19.13.4.3 there shall be no recovery under this Rule 19.13 if the Member shall, without the consent of the Managers in writing, transfer the Member’s interest in the wreck, cargo or other property (otherwise than by abandonment) prior to the said raising, removal, destruction, lighting or marking;

19.13.4.4 there shall be no recovery under this Rule 19.13 in respect of any liability incurred more than two years after the ship, cargo, equipment or other property became a wreck, or was lost, unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion decides otherwise; and

19.13.4.5 the Entered Ship became a wreck as a result of an event occurring during the period of entry of the Ship in the Association, in which case the Association shall continue to be liable for the claim notwithstanding that in other respects the liability of the Association shall have terminated pursuant to Rule 34 Cesser of Ship Entry.

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.

19.15 Contracts of Indemnity or Guarantee

Liability which a Member may incur, together with costs and expenses incidental thereto, for injury to, illness of or death of any person or for loss of, or damage to, cargo (subject to Rule 20.1.4 Cargo and freight) or other property, arising under the terms of a contract made by the Member in relation to services to be provided to or by an Entered Ship.

Provided always that:

19.15.1 the 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

19.15.2 the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion decides that the Member should be reimbursed.

19.16 Quarantine

Extraordinary expenses incurred by a Member, as a direct consequence of an outbreak of infectious disease, for disinfection of an Entered Ship or the cargo or persons on board such Ship, or in respect of quarantine.

Provided always that:

19.16.1 the ordinary expenses of loading and discharging cargo, and of provisions for Seafarers or Passengers, and of bunkers during the period of detention while in quarantine, shall be deducted from the actual expenses incurred and the balance only shall be recoverable;

19.16.2 in the case of an Entered Ship, which is not already under contract, being ordered or chartered to proceed to a port where it is known or should be reasonably anticipated that such Ship will, as a result, be subjected to quarantine there or elsewhere there shall be no recovery of expenses arising at, or consequent upon the Ship having been at, such port.

19.17 Cargo

Liabilities which a Member may incur, or expenditure which the Member may be unable to recover, together with costs and expenses incidental thereto, in respect of cargo intended to be, or being, or having been carried in an Entered Ship, which arises out of a breach by the Member or by persons for whose acts, neglect or default the Member is liable, of the Member’s obligations or duties as a carrier properly and carefully to load, handle, stow, carry, keep, care for, discharge or deliver the cargo or out of unseaworthiness or unfitness of the Entered Ship.

The following shall be recoverable:

19.17.1 Loss, shortage and damage

Liability for loss or shortage of, or damage to, or other responsibility for, cargo (other than cargo carried under a contract of through carriage).

19.17.2 Damaged cargo

The additional costs of discharging, disposing of, or restowing, damaged cargo insofar as these costs cannot be recovered from any other party.

19.17.3 Unrecoverable expenditure

The additional costs of discharging and disposing of, or of restowing, cargo which are necessarily incurred in order to continue the safe prosecution of the voyage following a casualty, insofar as these costs cannot be recovered from any other party and could not form part of general average expenditure.

19.17.4 Through transit

Liability for loss or shortage of, or damage to, or other responsibility for cargo carried under a contract of through carriage, including transit by land, water or air to or from the Entered Ship.

Provided always that:

19.17.4.1 such 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.

19.17.5 Contracts of indemnity

Liabilities arising under the terms of a contract of indemnity which relates to the handling or custody of cargo insofar as such liability may be covered under Rule 19.15 Contracts of Indemnity or Guarantee subject always to Rule 20.1.4 Cargo and freight.

19.17.6 Collision liability to cargo

Liability for loss of or damage to cargo carried in an Entered Ship under Rule 19.9.3 Collision liability to cargo.

19.17.7 Disposing of cargo

The additional costs of storing and disposing of cargo rejected or not collected by receivers insofar as these costs cannot be met out of the salved value of such cargo or recovered from any other party, even where such rejection or failure to collect does not arise out of a breach by the Member or any other person of their obligations or duties as a carrier.

Provided always that:

19.17.7.1 there shall be no recovery in respect of storage costs for the first 30 days following discharge.

19.17.8 PROVIDED ALWAYS THAT:

19.17.8.1 Hague Visby Rules

unless Special Cover has been agreed in writing by the Managers, if a Member enters into a contract of carriage by sea which is on terms less favourable to the carrier than those contained in the Hague or Hague Visby Rules, the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may in its discretion reject any claim or reduce it to the extent by which the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) considers such claim would have been reduced had the contract of carriage been on terms as favourable to the carrier as those contained in the Hague or Hague Visby Rules;

19.17.8.2 Deviation

there shall be no recovery where the Member has become liable in consequence of a deviation from the contractually agreed voyage unless in the case of a deviation authorised by the Member, prior notice of the intended deviation has been given to the Managers or, in the case of a deviation without the Member’s authority, the earliest possible notice has been given to the Managers after the Member has received information thereof and, in either case, the Managers have confirmed to the Member that cover under this Rule continues unprejudiced. Nevertheless, the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may allow such a claim either in part or in whole if, in its discretion, it considers that the Member had reasonable grounds for believing that no deviation was to be or had been made. If, upon receiving information of the deviation, the Managers advise the Member that cover under this Rule is prejudiced and the Member then requests the Managers to arrange Special Cover to cover the Member’s liabilities under this Rule, the cost of such insurance shall be borne by the Member;

19.17.8.3 Loading and discharge

unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall, in its discretion, otherwise determine there shall be no recovery in respect of a Member’s liability:

19.17.8.3.1 for the cost of carrying cargo to the port of destination stipulated in the contract of carriage from another port at which the cargo was discharged from an Entered Ship, or for storage or other charges; or

19.17.8.3.2 arising, otherwise than under a bill of lading already issued, out of the failure to arrive or late arrival of an Entered Ship at a port of loading, or out of failure to load, or late loading of, any particular cargo or cargoes in an Entered Ship; or

19.17.8.3.3 arising out of the delivery of cargo carried under a negotiable bill of lading or similar document of title (including an electronic bill of lading) without production (or the equivalent thereof in the case of an electronic bill of lading) by the person to whom delivery is made of the relevant bill of lading or document of title, except where cargo has been carried in the Entered Ship either

19.17.8.3.3.1 under the terms of a non-negotiable bill of lading, waybill or other non-negotiable document (and has been properly delivered as required by that document) and liability arises under the terms of a negotiable bill of lading or other similar document of title issued on behalf of a party other than the Member providing for carriage partly by a means of transport other than the Entered Ship or

19.17.8.3.3.2 under the terms of an approved electronic trading system and has been properly delivered to the person so entitled in accordance therewith; or

19.17.8.3.4 arising out of the delivery of cargo carried under a non-negotiable bill of lading, waybill or similar document without production of such document by the person to whom delivery is made, where such production is required by the express terms of that document or the law to which that document, or the contract of carriage contained in or evidenced by it, is subject, except where the Member is required by any other law to deliver, or relinquish custody or control of the cargo, without production of such document; or

19.17.8.3.5 arising out of the discharge of cargo at a port or place other than the port or place provided in the contract of carriage; or

19.17.8.3.6 arising from the mistaken, imprudent or illegal exercise of a lien over cargo; or

19.17.8.3.7 in respect of the issue of an ante-dated or post-dated bill of lading, waybill or other document containing or evidencing the contract of carriage; or

19.17.8.3.8 in respect of a bill of lading, waybill or other document containing or evidencing the contract of carriage issued with an incorrect description of the cargo, its quantity or condition, or of its port of loading or discharge with the knowledge either of the Member (or of any agent appointed by the Member in which the Member has a substantial interest) or of the Master of the Entered Ship.

19.17.8.4 ad valorem bills of lading
where cargo or other property is carried under an ad valorem bill of lading or other document of title, contract of carriage or waybill in which a value of more than two thousand five hundred Dollars (USD2,500) (or the equivalent in any other currency) is declared and/or inserted by reference to a unit, piece, package or otherwise, where the effect of such a declaration / insertion is to deprive the Member of any right or rights of limitation to which the Member would otherwise have been entitled and cause the Member to incur a greater liability than the Member would have done but for such declaration / insertion, to the extent that such liability thereby exceeds two thousand five hundred Dollars (USD2,500) (or the equivalent in any other currency) in respect of any such unit, piece or package there shall be no recovery, unless

19.17.8.4.1 Special Cover has been agreed by the Managers in writing after receiving prior notice from the Member or the earliest possible notice after the Member has received notice of the said carriage;

19.17.8.5 Rare and valuable cargo
there shall be no recovery in respect of loss of or damage to specie, bullion, precious or rare metals or stones, plate, jewellery or other objects of a rare or precious nature, bank notes or other forms of currency, bonds or other negotiable instruments, unless the contract of carriage and the spaces, apparatus and means used for the carriage and the instructions given for the safe custody thereof, have been approved by the Managers prior to any such carriage and any directions made by the Managers have been complied with;

19.17.8.6 Member’s own cargo
where the cargo in respect of which a claim arises belongs to a Member, such Member shall be entitled to recover from the Association, and the Association shall have the same rights, as if such cargo belonged to a third party and that third party had entered into a contract of carriage with the Member.

19.17.8.7 Paperless trading
there shall be no recovery from the Association for any liability, cost or expense arising from the use of any electronic trading system, other than an electronic system approved in writing by the Managers, to the extent that such liability, cost or expense would (save insofar as the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion otherwise determines) not have arisen under a paper trading system.

For the purposes of this proviso:

19.17.8.7.1 an electronic trading system is any system which replaces or is intended to replace paper documents used for the sale of goods and/or their carriage by sea or partly by sea and other means of transport which

19.17.8.7.1.1 are documents of title, or

19.17.8.7.1.2 entitle the holder to delivery or possession of the goods referred to in such documents, or

19.17.8.7.1.3 evidence a contract of carriage under which the rights and obligations of either of the contracting parties may be transferred to a third party.

19.17.8.7.2 a ‘document’ shall mean anything in which information of any description is recorded including, but not limited to, computer or other electronically generated information.

19.17.8.8 Slot charters
a Member who is a slot or space charterer of an Entered Ship may recover under this Rule for the Member’s liabilities, together with costs and expenses incidental thereto, to persons interested in other cargoes carried in the Entered Ship, whether or not the Member is a carrier;

19.17.8.9 Deck cargo
there shall be no recovery where the Member has become liable in consequence of the carriage of cargo on deck unless the cargo is suitable for carriage as loaded on the deck of the Entered Ship and either:

19.17.8.9.1 Special Cover has been agreed by the Managers in writing after receiving prior notice from the Member or the earliest possible notice after the Member has received notice of the said carriage; or

19.17.8.9.2 the contract of carriage is specially claused to the effect that the cargo is carried on deck and either provides that the carrier is free from all liability for loss or damage to such cargo or provides the carrier with rights, immunities and limitations no less favourable than those contained in the Hague Rules or Hague Visby Rules; or

19.17.8.9.3 the contract of carriage contains an appropriate liberty to carry cargo on deck and provides for the Hague Rules or Hague Visby Rules to apply to such cargo; or

19.17.8.9.4 where the contract of carriage is compulsorily subject to the Hamburg Rules by operation of law, the Member has complied with the provisions of paragraphs 1 and 2 of Article 9 thereof.
Nevertheless, the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may allow such a recovery in whole or in part if, in its discretion, it considers that the Member had reasonable grounds for believing that the conditions of this proviso had been complied with.

19.18 General Average

19.18.1 Ship’s proportion of general average

The Entered Ship’s proportion of general average expenditure (including salvage) and sue and labour expenses not recoverable under the Hull Policies by reason of the value of the Ship being assessed for contribution to general average or salvage at a sound value in excess of the insured value under such policies. 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.

19.18.1.1 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 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 general average act.

19.18.2 Unrecoverable general average contribution

The cost to the Member of that proportion of general average expenditure (including salvage) and special charges which should be paid by cargo or by some other party to the maritime adventure, but which are not so paid after the exhaustion of all legal remedies against such parties solely by reason of a breach of the contract of carriage. Subject always to provisos 19.17.8.1, 19.17.8.2, 19.17.8.3 and 19.17.8.7 insofar as they are capable of application.

19.18.3 PROVIDED ALWAYS THAT:

General average shall be adjusted according to the York-Antwerp Rules 1974, 1994 or 2016 or on other contractual terms approved by the Managers. If it is not, then any recovery from the Association shall be limited to what would be recoverable if general average were adjusted according to the law and practice of the place where the adventure ended.

19.19 Fines

Fines or other penalties, together with costs and expenses incidental thereto, imposed in respect of the Entered Ship by any court, tribunal, or authority of competent jurisdiction, upon a Member or upon any Seafarer or person whom the Member may be legally liable to reimburse (other than under the terms of a contract or indemnity, unless and only to the extent such terms have been previously approved by the Managers) or reasonably reimburses with the approval of the Managers, for:

19.19.1 Cargo

Short or over delivery of cargo or failure to comply with regulations relating to declaration of goods or to documentation of the cargo (other than fines or penalties arising from the smuggling of goods or cargo or any attempt thereat), subject always to the Association having agreed to cover the Member’s responsibilities in respect of cargo under Rule 19.17 Cargo.

19.19.2 Immigration laws

Breach of any immigration law or regulation.

19.19.3 Pollution

The accidental escape or discharge of oil or any other substance subject always to:

19.19.3.1 the Association having agreed to cover the Member’s liabilities together with the costs and expenses incidental thereto, in respect of such accidental escape or discharge under Rule 19.12 Pollution; and

19.19.3.2 any overall Limit of Liability in respect of such escape or discharge.

19.19.4 Other faults

Any other act, neglect or default of a Seafarer or other servant or agent of the Member in the course of their duties in respect of the Entered Ship and which, in the discretion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee), comes within the scope of the cover afforded by the Association.

19.19.5 PROVIDED ALWAYS THAT:

There shall be no recovery from the Association of a fine or other penalty nor of the costs and expenses relating thereto:

19.19.5.1 imposed for the overloading of an Entered Ship; or

19.19.5.2 imposed for illegal fishing (including the costs and expenses incurred in defending any allegation of illegal fishing); or

19.19.5.3 imposed for the infringement of regulations relating to safe navigation (including the maintenance of proper charts), unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) is satisfied that the Member had taken all reasonable steps to prevent the infringement which gave rise to the fine or other penalty; or

19.19.5.4 imposed for a criminal activity which the Member had knowledge of, recklessly disregarded, or failed to take reasonable steps to prevent; or

19.19.5.5 imposed for an infringement of MARPOL regulations where the Entered Ship’s oily water separator or similar pollution prevention device has been bypassed or rendered inoperable.

19.19.5.6 involving the confiscation of an Entered Ship by reason of the infringement of any customs law or customs regulation unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion authorises the recovery, in whole or in part, by the Member of the Member’s loss arising by reason of such confiscation.

19.19.5.6.1 The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in exercising its discretion under proviso 19.19.5.6 above shall take account of the following:

19.19.5.6.1.1 the amount recoverable from the Association shall in no circumstances exceed the market value (without commitment) of the Entered Ship at the date of the confiscation;

19.19.5.6.1.2 the Member shall satisfy the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) that the Member took all reasonable steps to prevent the infringement which gave rise to the confiscation;

19.19.5.6.1.3 the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) will only consider authorising such a recovery after the Member has been permanently deprived of the Member’s interest in the Entered Ship.

19.20 Legal Costs, Sue and Labour

19.20.1 Legal costs

Legal costs and expenses which a Member may incur in respect of any liability or expenditure against which the Member is insured under these Rules.

19.20.2 Sue and labour

Losses, costs and expenses necessarily incurred by a Member after an incident in order to avoid or reduce a liability or expenditure against which the Member is insured by the Association, even if such losses, costs and expenses would otherwise be excluded by these Rules. Administrative expenses incurred by a Member including the salary or retainer of any employee or third party shall be excluded.

19.20.3 Special direction

Losses, costs and expenses which a Member may be required to incur by special direction of the Association in cases in which the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) decides that it is in the interests of the Association that the direction be given, even if such losses, costs and expenses would otherwise be excluded by these Rules.

19.20.4 PROVIDED ALWAYS THAT:

19.20.4.1 no such losses, costs or expenses shall be recoverable unless either they have been incurred with the prior agreement of the Managers or the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall determine that such losses, costs and expenses were reasonably incurred;

19.20.4.2 unless otherwise agreed the costs and expenses incurred under Rule 19.20.1 shall be free of deductible and any losses, costs and expenses incurred under Rules 19.20.2 or 19.20.3 shall bear the same deductible as the liability or expenditure so avoided or reduced would have borne;

19.20.4.3 costs and expenses incurred in respect of a formal enquiry into a casualty involving an Entered Ship shall be recoverable to such extent only as the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may determine;

19.20.4.4 losses, costs and expenses arising from or related to ransom demands or extortion shall be recoverable only to such extent as the Board may determine.

19.21 Charterer’s Entry

A Member may be insured against liabilities, together with costs and expenses incidental thereto, which may be incurred by reason of the Member’s interest as charterer of a Ship or part thereof (other than a demise or bareboat charterer) in accordance with these Rules and the Member’s Certificate of Entry.

Provided always that:

19.21.1 there shall be no recovery from the Association excess of the Limit of Liability; and

19.21.2 there shall be no recovery for loss of or damage to the Entered Ship in accordance with Rule 20.1.1 Damage to the Entered Ship.

19.22 Consortium P&I Cover

19.22.1 Consortium Claims

Where liability arises out of the carriage of cargo on a Consortium Vessel the claim shall be recoverable under these Rules as a Consortium Claim in accordance with the terms of the Pooling Agreement.

19.22.1.1 A claim shall be a Consortium Claim where:

19.22.1.1.1 it arises under the entry of a Ship (or any entered part of a Ship) in the Association under this Class; and

19.22.1.1.2 it arises out of the carriage of cargo on a Consortium Vessel; and

19.22.1.1.3 the Member (or any charterer affiliated to or associated with the Member coassured under the same entry) and the operator of the Consortium Vessel are parties to a “Consortium Agreement” ; and

19.22.1.1.4 at the time the cover in respect of Consortium Claims attaches the Member employs a Ship entered in the Association pursuant to that Consortium Agreement.

19.22.1.2 For the purposes of a Consortium Claim the Consortium Vessel shall be treated as a ship entered in the Association on behalf of the Member under a Charterer’s Entry.

19.22.2 Allocation of Consortium Claims

Where a Ship under an Owner’s Entry and a Ship under a Charterer’s Entry are both employed by the Member pursuant to a Consortium Agreement at the time of the event giving rise to the Consortium Claim occurs, the Consortium Claim of the Member shall for all purposes be treated as a claim arising in respect of the Owner’s Entry of the Member.

19.22.3 Aggregation

19.22.3.1 Where the Member has more than one Entered Ship employed pursuant to the Consortium Agreement at the time the event giving rise to the Consortium Claim occurs, all such Entered Ships shall be deemed to be an entry (or, as the case may be, part entry) of one Entered Ship.

19.22.3.2 Where one or more ships of the Member is / are employed pursuant to the Consortium Agreement at the time the event giving rise to the “Consortium Claim” occurs and the Member has an entry in respect of any of those ships in more than one association being a party to the Pooling Agreement where “Consortium Claims” on each of the associations in respect of the Entered Ships arising from that event out of the carriage of cargo on one Consortium Vessel exceed the Limit of Liability, the “Consortium Claims” on all such associations shall be limited to such proportion of that amount as those Consortium Claims bear to the aggregate of the Consortium Claims on all the associations.

19.22.4 Exclusions

There shall be no recovery in respect of a Consortium Claim in respect of:

19.22.4.1 physical damage to the Consortium Vessel;

19.22.4.2 physical damage to equipment or containers owned by or leased to the Member on board the Consortium Vessel;

19.22.4.3 losses, liabilities, and the costs and expenses incidental thereto, otherwise excluded under these Rules.

19.22.5 Limit of liability

The limit of liability in respect of a Consortium Claim shall not exceed the Limit of Liability in the aggregate any one incident or occurrence under any and all entries of the Member in the Association and in any other association which is a party to the Pooling Agreement.

19.23 Risks Incidental to Ship Owning

Liabilities, costs and expenses incidental to the business of owning, operating, chartering or managing Ships which, in the discretion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee), come within the scope of the cover afforded by the Association, but only to the extent that the Board may decide that the Member should recover from the Association.

19.24 Special Cover

Subject always to the Articles of Association of the Association, and save insofar as expressly prohibited by these Rules, the Managers may agree that the Association will insure a Member against the risks specified in these Rules whether or not such risks arise in connection either with an Entered Ship or the operation of an Entered Ship (despite the provisions of Rule 3.1 Extent of Cover).

Provided always that:

19.24.1 the nature and extent of the risks and the terms of the cover shall have been expressly agreed in writing between the Member and the Managers.

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.

19.26 Special Cover for Extended Through Transit Risks

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, arising out of the carriage of any cargo or container by or on behalf of a Member. The following may be covered on such terms as may be agreed in writing by the Managers:

19.26.1 Injury, illness or death

Compensation and damages for which the Member is liable which are payable by reason of the injury to, illness of or death of any person, other than a Seafarer, Passenger or any person on board the Entered Ship.

19.26.2 Damage to property

Liability of the Member for loss of or damage to any fixed or moveable property whatsoever (not being cargo or other property carried in the Entered Ship).

19.26.3 PROVIDED ALWAYS THAT:

19.26.3.1 there shall be no recovery under this Rule for liabilities arising out of the carriage of any cargo or container while it is on board the Entered Ship; and

19.26.3.2 the cargo or container, as the case may be, is intended to be or has been carried on an Entered Ship, including one entered by virtue of Rule 19.21 Charterer’s Entry; and

19.26.3.3 the liability does not arise out of the terms of a contract of indemnity or guarantee between the Member and a third party (See Rule 19.15 Contracts of Indemnity or Guarantee); and

19.26.3.4 the liability does not fall within the terms of Rule 19.17 Cargo; and

19.26.3.5 there shall be no recovery under this Rule for loss of or damage to any ship and/or water borne conveyance in which the cargo or container is carried; and

19.26.3.6 there shall be no recovery under this Rule for liabilities arising out of the carriage of the container itself.