English
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
PRINT
SHARE
P&I (CLASS 3) / PART VI / RULE 36
CONTRIBUTIONS DUE ON CESSER OF INSURANCE
36.1 Liability for Contributions
Subject to the Member’s liability being otherwise agreed or assessed under Rule 14 Release, a Member whose Entered Ship or Ships cease to be insured by the Association for any reason, shall be and remain liable to pay to the Association all Contributions in respect of such Ship or Ships for all Policy Years which have not been closed under Rules 37.1 Exceptional Calls and 37.2 Overspill Calls as at the date of such cesser, including the Policy Year in which the insurance ceases which, under Rule 10 Contribution by Way of Calls, such Member would have been liable to pay had the insurance of such Ship or Ships not ceased.
Provided always that:
36.1.1 the Member shall be liable for Contributions for the Policy Year in which the insurance ceases pro rata only for the period beginning with the date of entry and ending with the happening of the event that occasioned the cesser of insurance if:
36.1.1.1 such cesser arises by virtue of Rule 9.3 Notice of Termination of Cover by Board or Managers; or
36.1.1.2 such cesser arises upon the happening of any of the events specified under Rules 34.1 Transfer of Interest, 34.2 Change of Management, 34.3 Total Loss of Ship, 34.4 Ship Missing, 34.5 Mortgage of the Ship and 34.6 Classification and the Member gives notice of the event in writing to the Managers within one month of the date thereof; or
36.1.1.3 such cesser arises by virtue of Rule 33.1 Failure to Pay, in such case the Member’s liability to pay Contributions shall include the sum specified in the notice given under that Rule.
36.2 Set-off
For the purpose of determining whether any (and, if so, what) sum is due for the purposes of Rule 36.1 Liability for Contributions or otherwise under these Rules no account shall be taken of any amount due or alleged to be due by the Association to the Member for any reason whatsoever, and no set-off of any kind (including any set-off which might otherwise have arisen by reason of the bankruptcy or winding up of the Member) shall be allowed against such sum (whether or not any set-off against Contributions has been allowed at any time in the past), except to the extent (if any) to which any sum demanded by the Managers as due, and required to be paid in a notice served under Rule 33.1 Failure to Pay, may (in the Managers’ discretion) in itself have already allowed for a set-off or credit in favour of the Member.
36.3 Security for Overspill Calls
36.3.1 If
36.3.1.1 the Association makes a declaration in accordance with Rule 37.2 Overspill Calls that a Policy Year shall remain open for the purpose of levying an Overspill Call or Calls, and
36.3.1.2 a Member who is liable to pay any such Overspill Call or Calls as may be levied by the Association ceases or has ceased to be insured by the Association for any reason, or the Association determines that the insurance of any such Member may cease
36.3.1.3 the Association may require such Member to provide to the Association by such date as the Association may determine (the due date) a guarantee or other security in respect of the Member’s estimated future liability for such Overspill Call or Calls, such guarantee or other security to be in such form and amount (the guarantee amount) and on such terms as the Association in its discretion may deem to be appropriate in the circumstances.
36.3.2 Unless and until such guarantee or other security as is required by the Association has been provided by the Member, the Association shall not be liable for any claims under these Rules in respect of any Ship entered by the Member or on the Member’s behalf for any Policy Year.
36.3.3 If such guarantee or other security is not provided by the Member to the Association by the due date, a sum equal to the guarantee amount shall be due and payable by the Member to the Association on the due date, and shall be retained by the Association as a security deposit on such terms as the Association in its discretion may deem to be appropriate in the circumstances.
36.3.4 The provision of a guarantee or other security as required by the Association (including a payment in accordance with Rule 36.3.3 above) shall in no way restrict or limit the Member’s liability to pay such Overspill Call or Calls as may be levied by the Association.