THE STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED

Transcription

1 THE STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED CHARTERERS COVER 2010 / 2011 THE STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED Registered Office: Clrendon House, 2 Church Street, Hmilton HM 11, Bermud Authorised nd Regulted y the Bermud Monetry Authority nd the United Kingdom Finncil Services Authority (FSA registrtion numer ) MANAGERS: STEAMSHIP MUTUAL MANAGEMENT (BERMUDA) LIMITED MANAGERS LONDON REPRESENTATIVE: STEAMSHIP INSURANCE MANAGEMENT SERVICES LIMITED AQUATICAL HOUSE 39 BELL LANE LONDON E1 7LU Tel: wesite: Registered No: Englnd

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3 THE STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED CLAUSES FOR CHARTERERS TERMS OF ENTRY PROTECTION AND INDEMNITY DAMAGE TO HULL TIME CHARTERERS BUNKERS 1 These Cluses pply to entry in The Stemship Mutul Underwriting Assocition (Bermud) Limited, hereinfter referred to s the Clu, of ny Memer, (s defined in Cluse 2 elow), for Chrterers llity cover. 2 Definitions In these Cluses the words nd phrses hereinfter set out shll hve the following menings or effects if not inconsistent with the suject or context: Crgo Chrterer Continer Contriuting Tonnge Directors Effects Entered Ship Fleet Entry Hgue nd Hgue- Visy Rules Hull Policies Mngers Memer Open Cover mens goods, including mterils used for the pcking of goods, in respect of which n Owner or Memer enters into contrct of crrige, ut excluding continers or other equipment owned or lesed y the Memer or ny other prty in common or ssocited ownership or mngement; mens ny chrterer of ship or ny prt of its pssenger or crgo crrying cpcity other thn y wy of demise; includes triler, flt, pllet, tnk, or ny other equipment, the function of which is the continment or trnsport of crgo during crrige; mens the gross tonnge of ship, or other greed tonnge upon which, ccording to the terms of entry of the ship, contriution is pid to the funds of the Clu; mens the Bord of Directors for the time eing of the Clu; mens personl property, documents, nvigtionl or other technicl instruments nd tools rought on ord, or eing tken to or from, the Entered Ship y Semn or Supernumerry, ut excluding csh, vlules or ny other rticle which in the opinion of the Mngers is not n essentil requirement for Semn; mens ship which hs een entered in the Clu for ny of the risks enumerted herein in the mnner hereinfter provided; mens the entry of more thn one Ship y one or more Memers where it is greed y the Mngers tht those ships shll e treted s single fleet for underwriting purposes; mens respectively the Interntionl Convention for the Unifiction of Certin Rules relting to Bills of Lding signed t Brussels on 24th August 1924 nd tht Convention s mended y the Protocol signed t Brussels on 23rd Ferury 1968; mens the Policies effected on the Hull nd Mchinery of ship, including Excess Llity Policies; mens Stemship Mutul Mngement (Bermud) Limited nd/or their London representtive; mens every Chrterer of ship or prt of ship or its pssenger or crgo crrying cpcity entered y it in the Clu under these Cluses; mens cover wherey the Memer my declre entries of chrtered ships from time to time during the period of such cover in ccordnce with its terms; Edition 2 dted effective

4 Owner Pssenger Policy Yer Semn Ship Sttutory Oligtions Supernumerry Tonnge Towge mens n owner, owners in prtnership, owners holding seprte shres in severlty, prt owner, mortggee, trustee, opertor, mnger of ship, or ny Chrterer of ship other thn the Memer or ny prty to whom the Memer hs su-chrtered the ship or whose interest s Chrterer derives from such prty; Mens ny person crried on the entered ship pursunt to contrct for crrige; mens the yer from noon Greenwich Men Time on 20 Ferury to noon Greenwich Men Time on 20 Ferury next ensuing; mens ny person, including the Mster nd pprentices, employed under the terms of crew greement or other contrct of service or employment to serve on ord n Entered Ship; mens ny ship, ot, hydrofoil, hovercrft or other description of vessel (including lighter, rge or similr vessel howsoever propelled ut excluding fixed pltform or fixed rig) used or intended to e used for ny purpose whtsoever in nvigtion or otherwise on, under, over or in wter or ny prt of such ship, ot, hydrofoil, hovercrft or other description of vessel or ny proportion of the tonnge thereof or ny shre therein, including ny ship, ot, hydrofoil, hovercrft or other description of vessel under construction; includes ny direction, oligtion or llity imposed y enctment, decree, order or regultion hving the force of lw; mens reltive of Semn or ny other person whom Memer hs greed to mintin or crry on ord n Entered Ship (except pssenger) nd including persons (other thn Semen) engged under rticles of greement; mens the gross tonnge of ship s certified or stted in the Certificte of Registry or other officil document relting to the registry of the ship; nd Ton refers to the unit of such tonnge; mens ny opertion in connection with the holding, pushing, pulling, moving, escorting, guiding of, or stnding y, ship or oject. 3 Scope of Cover i The terms upon which Memer is entered in the Clu re set out in the Cluses nd ny Certificte of Entry for tht Memer. i iv v The risks ginst which Memer my e insured y entry in the Clu re set out in Cluses nd re lwys suject to the conditions, exceptions, limittions nd other terms set out in the reminder of these Cluses nd ny Certificte of Entry for tht Memer. The cover set out in these Cluses my e excluded, limited, modified or otherwise ltered y ny specil terms which hve een greed in writing etween Memer nd the Mngers. A Memer my e insured ginst risks other thn those set out in Cluses or in respect of llities rising in cpcity other thn s Chrterer where such specil terms hve een greed in writing etween the Memer nd the Mngers. Unless otherwise expressly greed such specil insurnce shll e suject to the conditions, exceptions, limittions nd other terms set out in the reminder of these Cluses. A Memer is only insured ginst loss, dmge, llity or expense incurred y it which rise: out of events occurring during the period of entry of Ship in the Clu; nd in respect of the Memer s interest in the entered Ship; nd Edition 2 dted effective

5 c in connection with the employment of the Ship y or on ehlf of the Memer; nd otherwise only s provided pursunt to Cluse 21 xi d in respect of crgo llities when Memer is entered for such cover; Provided lso tht the Mngers my gree, on such terms s they require, to cover llities incurred y the Memer in respect of crgo rising out of events occurring prior to shipment on ord or fter dischrge from the entered vessel, when such llity is incurred consequent upon the Memer s performnce of relevnt contrct of crrige; nd occurs: () () (c) during periods etween receipt of crgo nd shipment nd/or dischrge of crgo nd delivery where such periods do not exceed 10 dys or such other period s my e greed y the Mngers in writing; nd within the port of shipment or delivery; nd there is no other contrct etween the Memer nd ny other prty relting to the storge nd/or custody of the crgo during tht period; or in respect of clim under Cluse 21 xi c. vi A Memer who hs entered Ship in the Clu for insurnce ginst ny of the foresid risks shll py premium to the Clu in ccordnce with Cluse Prt Entries nd Open Covers The Mngers my: i Accept entries of vessels y Chrterers, including Chrterers of prt of ship or its pssenger or crgo-crrying cpcity; Agree open covers wherey the Memer my declre entries of chrtered vessels from time to time during the period of such cover, ut suject lwys to the Mngers right to decline the entry of vessel so declred in their solute discretion; on such terms nd conditions s the Mngers my determine, including cover for ny risks excluded under these Cluses. 5 Directors i The usiness of the Clu shll e mnged y the Bord of Directors. i iv The Directors my delegte ny of their powers to su-committees consisting of such memer or memers of their ody s they think fit. Any su-committee so formed shll in the exercise of ny power so delegted conform to ny regultions tht my from time to time e imposed upon it y the Directors The Directors, or suject to ny regultions imposed upon it s foresid, ny sucommittee, my from time to time vest in the Mngers such of the powers vested in the Directors or delegted to such su-committees s the cse my e, s the Directors or such su-committee shll think fit, nd such powers my e exercisle for such period nd upon such conditions nd suject to such restrictions nd generlly upon such terms s the Directors or such su-committee, s the cse my e, my determine. Whenever ny power is delegted to or vested in the Mngers y virtue of or pursunt to these Cluses, such power my, suject to ny terms, conditions or restrictions contined in these Cluses, e exercised y ny servnt or gent of the Mngers or their London representtives to whom the sme shll hve een delegted or su-delegted. 6 Entry i A Chrterer who wishes to enter ny Ship for insurnce in the Clu shll pply for such entry in such form nd in such mnner s the Mngers my from time to time require. A Chrterer who so pplies for insurnce or negotites ny chnges to or renewl thereof wrrnts tht he hs provided ll mteril prticulrs nd informtion nd tht ll such prticulrs nd informtion re true nd complete nd will so remin throughout the period of insurnce. The prticulrs nd informtion so provided shll, if the entry of the ship for insurnce is ccepted, form the sis of the contrct of insurnce etween the Memer nd Edition 2 dted effective

6 the Clu. i iv v Before ny ppliction for entry is ccepted, the Mngers shll gree in writing the terms nd conditions tht re to pply to the entry, including those concerning premiums, dte of commencement nd scope of cover nd the other terms nd conditions on which the ship is to e ccepted. The provisions of this Cluse pply throughout the period of entry of the Ship in the Clu nd the Memer shll immeditely disclose to the Clu ny mteril chnge in ny mteril prticulrs nd informtion or ny mteril ltertion in the risk relting to such entry. If the Mngers determine tht the nture of the risk hs mterilly chnged since the ship ws entered; or If the Memer fils to comply with the oligtions under su-prgrph iv of this cluse, the Mngers shll e entitled, without prejudice to ny other right or remedy of the Clu, in their solute discretion y notice in writing to: terminte the entry of such ship or Memer from the commencement of the Policy Yer or such lter dte s they my decide, or mend or vry the terms of such entry s they think fit. vi The Mngers shll e t lierty, without giving ny reson, to refuse ny ppliction for entry of ship in the Clu from ny Chrterer whether or not tht Chrterer is lredy Memer of the Clu. 7 Certificte of Entry i As soon s resonly prcticle fter the cceptnce of n ppliction for entry of Ship for insurnce in the Clu, the Mngers shll issue to the Memer in respect of such Ship Certificte of Entry or, in the cse of open covers, endorse the nme of the entered vessel on the Certificte of Entry in such form s they my from time to time determine which my include, mong other things c i the nmes of the Memers on whose ehlf the Ship hs een entered nd their interest in tht Ship; the dte of the commencement of the period of insurnce; nd the terms nd conditions, including ny limittions to cover, on which the ship hs een ccepted for insurnce. If t ny time there shll e vrition in the terms of entry relting to n entered Ship, the Mngers shll, s soon s resonly prcticle therefter, issue to the Memer in respect of such Ship n endorsement slip, in such form s they my from time to time determine, stting the terms of such vrition nd the dte from which such vrition is to e effective. Every Certificte of Entry nd every endorsement slip issued s foresid shll e conclusive evidence nd inding for ll purposes s to the commencement of the period of insurnce, s to the terms nd conditions on which the ship hs een entered for insurnce, nd s to the terms of ny vrition nd the dte from which such vrition is to e effective; provided tht in the event tht ny Certificte of Entry or ny endorsement slip shll in the opinion of the Mngers contin ny error or omission, the Mngers my in their discretion issue new Certificte of Entry or new endorsement slip which shll e conclusive evidence nd inding s foresid. 8 Memers i Every Chrterer who enters ny ship in the Clu shll (if not lredy Memer) e nd ecome Memer of the Clu s from the dte of the commencement of such entry. Ech Memer is ound y these Cluses. Every Memer of the Bord of Directors, whilst holding office s such, shll ex-officio e Memer of the Clu. Edition 2 dted effective

7 9 Joint Memers nd Assureds i iv v vi i Whenever the Clu grees to ccept the entry of ship y wy of reinsurnce of ny insurer, the insurer reinsured y the Clu shll e nd ecome Memer of the Clu provided tht, unless otherwise greed y the Clu, it shll not e entitled to ttend ny Generl Meeting of the Clu, Annul or Specil, or vote on ny resolutions t ny such Meeting. All contrcts of insurnce with the Clu shll e deemed to e suject to nd incorporte ll the provisions of these Cluses except to the extent otherwise expressly greed in writing with the Mngers. Ech Memer or other person whose ppliction for insurnce or reinsurnce is ccepted shll e deemed to hve greed oth for itself nd its successors nd ech of them tht oth it nd they nd ech nd ll of them will e suject to nd ound y nd will perform their oligtions under the Cluses nd ny contrct of insurnce with the Clu. Memership shll not e trnsferle or trnsmissile. If n entry is mde in the nmes of or on ehlf of more persons thn one (hereinfter referred to s Joint Memers) they shll e jointly nd severlly lile to py contriutions due to the Clu in respect of such entry; nd the receipt y ny one Joint Memer of ny sums pyle y the Clu in respect of such entry shll e sufficient dischrge of the Clu for the sme. The cover fforded to Joint Memers shll extend only to risks, llities, costs nd expenses rising out of opertions nd/or ctivities customrily crried on y or t the risk nd responslity of Chrterers nd which re within the scope of the cover provided under the terms, conditions nd exceptions provided y these Cluses nd y the Certificte of Entry. The conduct of ny one Joint Memer which is sufficient to r tht Joint Memer s right of recovery under the terms, conditions nd exceptions provided y these Cluses nd y the Certificte of Entry shll r solutely the rights of recovery of ll Joint Memers thereunder. Affilites When n entry is mde y Memer cover provided under these Cluses nd y the Certificte of Entry my e extended, suject to the written greement of the Mngers, to ny person ssocited or ffilited with tht Memer; provided tht: c d such cover shll only extend to llity which would hve een incurred y the Memer if the clim concerning tht llity hd een mde ginst the Memer; such cover shll not extend to ny mount which would not hve een recoverle from the Clu y tht Memer hd such clim een mde or enforced ginst tht Memer; to the extent tht the Clu indemnifies such ssocited or ffilited persons under such cover it shll not e under ny further llity nd shll not mke ny further pyment to ny person whtsoever, including the sid Memer, in respect of the clim so indemnified; the conduct of tht Memer or ny ssocited or ffilited person which is sufficient to r tht person s rights of recovery under the terms, conditions nd exceptions provided y these Cluses nd y the Certificte of Entry shll r the rights of recovery of ll persons thereunder. Assureds i Unless otherwise greed in writing y the Mngers, ny prty whtsoever nd howsoever insured y the Clu shll e ound y ll the terms, conditions nd exceptions provided y these Cluses nd y the Certificte of Entry evidencing such insurnce. Clims etween Joint Assureds iv There shll e no recovery out of the funds of the Clu in respect of ny llity, costs or expenses rising out of ny clim, dispute or difference etween Joint Memers, ffilites nd/or ny others insured to ny extent under one entry. Fleet Entries v Where more thn one Ship is entered y one or more Memers nd the Mngers gree in writing tht those ships will e treted s single fleet for underwriting purposes, those Memers, if more thn one, shll e jointly nd severlly lile for ll nd ny oligtions rising under these Cluses s to pyment of premium nd for the purposes of the sme shll e deemed to e single Memer nd the entered ships deemed to e entered on tht single Memer s ehlf. Edition 2 dted effective

8 10 Clcultion nd pyment of premium The Mngers shll in their solute discretion e entitled to fix the mount of premium nd the terms on which it is to e pid. Unless otherwise greed, the whole of the greed premium shll fll due on the dte on which the entry incepts or, in the cse of open covers, for ech vessel on the dte on which it is declred, notwithstnding ny greement wherey the Clu grees to pyment on deferred terms. Pyment of ll premium due shll e condition precedent to the Clu s llity to indemnify the Memer. 11 Period of Cover i Sve where otherwise greed y the Mngers in writing, the cover fforded y the Clu shll egin t the time stted in the Certificte of Entry for the commencement of the cover nd continue from tht dte, (the Commencement Dte ), in the Policy Yer to the nniversry of tht dte in the following Policy Yer, (the Anniversry Dte ), nd continue for consecutive 12 monthly periods therefter unless: notice shll hve een given in writing not lter thn noon GMT 2 months prior to the Anniversry Dte: y the Memer to terminte cover; or y the Mngers to vry the terms of insurnce y the Clu relting to tht cover nd no terms re greed etween the Mngers nd Memer prior to the expiry of tht notice period; in which event cover shll cese on the Anniversry Dte sve tht in the cse of n open cover, where vessel is declred prior to the Anniversry Dte, the Mngers my, in their solute discretion, gree tht cover shll continue for such period eyond the Anniversry Dte s they determine; c d it is greed tht the initil period of entry shll expire on the following 20 th Ferury in which event tht dte shll ecome the Anniversry Dte therefter; the entered ship is redelivered y the Memer to the Owner during the course of Policy Yer in which event cover shll cese in respect of tht ship on the dte of redelivery or such other dte s is greed y the Mngers in writing; or notice shll hve een given y the Mngers in writing to terminte: the entry of ship, including ship declred under n open cover; or n open cover; in which event cover shll cese on the time nd dte specified in the Mngers notice ut not erlier thn 7 dys from hours GMT on the dy on which notice is given. An entered ship shll not e withdrwn from the Clu t ny other time or in ny other mnner except with the consent of the Mngers. 12 Reserves i The Directors my in their solute discretion estlish, mintin nd ccumulte such reserves, funds or other ccounts for such contingencies or purposes s they think necessry, expedient or prudent including, without prejudice to the generlity of the foregoing, such funds or ccounts necessry to estlish or mintin ny solvency mrgin, gurntee fund or other fund s my e required of the Clu y ny governmentl or other legisltion or regultions. i The Directors my pply the sums stnding to the credit of ny reserves or ccounts for ny purpose whtsoever which the Directors consider to e in the interests of the Clu or its Memers. The Directors my, on the closing of ny Policy Yer or t ny time or times therefter resolve tht ny specified mount or proportion of the funds stnding to the credit of tht Policy Yer shll e pplied for the purposes of ny such reserve or ccount. 13 Recovery If ny Memer shll ecome lile in dmges or otherwise or shll incur ny llities, costs or expenses s hereinfter set out in Cluses 21-22, in respect of ship which ws entered in the Clu t the time of the csulty or event giving rise to such llities, costs or expenses, such Memer shll e entitled to recover, out of the funds of the Clu, the mount of such llities, costs or expenses to the extent nd upon the terms, conditions nd exceptions provided y these Cluses nd y the Certificte of Entry; Edition 2 dted effective

9 provided lwys tht: i i iv v unless the Directors otherwise determine, it shll e condition precedent of Memer s right to recover from the funds of the Clu in respect of ny llities, costs or expenses tht he shll first hve pid the sme out of funds elonging to him solutely nd unconditionlly nd not y wy of lon or otherwise; unless otherwise greed y the Mngers in writing, ny llity costs or expenses incurred y the Clu in respect of n entered ship rising from ny one ccident or occurrence, including ny clim in respect of llity for the removl or non-removl of ny wreck, shll e treted for the purposes of these Cluses s if they were one clim; if less thn the full tonnge of ship is entered in the Clu, the Memer shll e entitled only to recover such proportion of its clim s the entered tonnge ers to the full tonnge; in no cse whtsoever shll interest e pid on sums due from the Clu; the llity of the Clu shll e limited to such mount s ppers in the Certificte of Entry or, in the sence of ny such mount, US$10million, in ggregte, in respect of ll llities insured under these Chrterers cluses (including, for the voidnce of dout, Cluse 16) rising out of ny one ccident or occurrence. Sve tht when the Memer is entitled under Cluse 21 to recover in respect of dmge to, or loss of crgo or other property owned y it, s if such crgo or property ws owned y third prty, nd when, If tht clim hd een pursued y third prty it would hve een suject to limittion; nd When the ggregte of ll the clims suject to limittion, (including tht of the Memer s if its property ws owned y third prty), in respect of tht incident or occurrence would hve exceeded the mount to which the Memer would e entitled to limit llity; the Memer s recovery from the Clu in respect of its own clim shll not exceed the mount to which it would hve een rtely reduced hd it een clim suject to limittion under the limittion fund nd/or in ccordnce with ny other right to limittion in respect of the incident or occurrence. Provided lwys tht in the event of legisltion coming into force nywhere in the world ffecting memer s llity in respect of oil pollution the Clu shll, upon ech nd every such enctment, hve the right to chrge dditionl premium or limit its llity in respect thereto. 14 Specilist Opertions Unless the Mngers otherwise gree in writing s term of entry, the Clu shll not insure ny Memer to ny extent whtsoever, ginst the following risks: Specilist Opertions i llities, costs or expenses incurred y Memer who contrcts to perform specilist opertions, including ut not limited to dredging, lsting, pile driving, well stimultion, cle or pipe lying, construction, instlltion or mintennce work, core smpling, depositing of spoil, professionl oil spill response or professionl oil spill response trining nd tnk clening (otherwise thn on the entered ship)(ut excluding fire-fighting); Drilling Opertions llities, costs or expenses incurred in respect of n entered ship (eing drilling ship or rge or ny other ship or rge crrying out drilling explortion or production opertions including ny ccommodtion unit moored or positioned on site s n integrl prt of such opertions) nd rising out of or during drilling or production opertions; The vessel shll e deemed to e crrying out production opertions if (inter li) it is storge tnker or other vessel engged in the storge of oil, nd either; Diving Opertions i the oil is trnsferred directly from producing well to the storge vessel; or the storge vessel hs oil nd gs seprtion equipment on ord nd gs is eing seprted from oil whilst on ord the storge vessel other thn y nturl venting. llities, costs or expenses rising out of the opertion y the Memer of sumrines, mini-sumrines or diving ells or the ctivities of professionl or commercil divers; Edition 2 dted effective

10 Slvge Opertions iv llities, costs nd expenses rising out of slvge opertions conducted y n entered ship, other thn where the purpose of such opertions is sving or ttempting to sve life t se. Wste Disposl Opertions v Llities, costs or expenses incurred y Memer rising out of wste incinertion or disposl opertions crried out y the entered ship (other thn ny such opertions crried out s n incidentl prt of other commercil ctivities, not eing specilist opertions). 15 Nucler Risks There shll e no recovery from the Clu in respect of Memer s llities, costs or expenses (irrespective of whether contriutory cuse of the sme eing incurred ws ny neglect on the prt of the Memer or on the prt of the Memer s servnts or gents) when the loss or dmge, injury, illness, or deth or other ccident in respect of which such llity rises or cost or expense is incurred, ws directly or indirectly cused y or rises from: i i iv ionising rditions from, or contmintion y rdioctivity from, ny nucler fuel or from ny nucler wste or from the comustion of nucler fuel; the rdioctive, toxic, explosive or other hzrdous or contminting properties of ny nucler instlltion, rector or other nucler ssemly or nucler component thereof; ny wepon or device employing tomic or nucler fission nd/or fusion or other like rection or rdioctive force or mtter; the rdioctive, toxic, explosive or other hzrdous or contminting properties of ny rdioctive mtter. Provided lwys tht: this Cluse does not exclude llities, costs nd expenses rising out of the crrige of excepted mtter (s defined in the Nucler Instlltions Act 1965 of the United Kingdom or ny regultions mde thereunder) eing crried s crgo on n entered vessel. Note: The Nucler Instlltions Regultions reflect the provisions of the OECD Pris Convention on Crrige of Nucler Mteril. Excepted mtter is nucler mtter consisting only of one or more of the following: c d Isotopes prepred for use for industril, commercil, griculturl, medicl or scientific purposes; Nturl urnium; Depleted urnium; Smll quntities of nucler mtter s prescried. 16 Wr Risks i When the incident in respect of which Memer s llities, costs nd expenses rise, ws cused or contriuted to (irrespective of whether contriuting cuse ws ny neglect on the prt of the Memer or ny prties for which the Memer is lile) y: c wr, civil wr, revolution, reellion, insurrection or civil strife rising therefrom, or ny hostile ct y or ginst elligerent power or ny ct of terrorism, (In the event of ny dispute s to whether or not ny ct constitutes n ct of terrorism, the decision of the Directors shll e finl); cpture, seizure, rrest, restrint or detinment (rrtry or pircy excepted) nd the consequences thereof or ny ttempt theret; mines, torpedoes, oms, rockets, shells, explosives or other similr wepons of wr, including those llities, costs or expenses which rise solely y reson of: the trnsport of ny such wepons whether on ord the entered ship or not, or the use of ny such wepons either s result of Government order or through complince with written direction given y the Mngers or Directors where the reson for such use ws the voidnce or mitigtion of llities, costs or expenses which would otherwise fll within the cover of the Clu; Edition 2 dted effective

11 the Memer s right of recovery from the Clu under Cluse 21 nd, if entered for Dmge to Hull risks, Cluse 22, in respect of such llities, costs nd expenses, shll e suject to the terms nd conditions of Cluse 16, nd in respect of the Dmge to Hull risks Cluses 16 nd i, elow nd recoverle only to the extent therein provided. Cover under this Cluse 16 : My e cncelled on 7 dys notice, given either y the Mngers or Memer, expiring t hours GMT on the seventh dy, excluding the dy during which notice is given; Suject to the greement of the Mngers, in their solute discretion, to reinstte cover prior to expiry of such notice of cncelltion on such revised terms s re greed with the Memer. Shll TERMINATE AUTOMATICALLY on: The outrek of wr, (irrespective of whether declred or not) etween ny of the following: The United Kingdom, The United Sttes of Americ, Frnce, The Russin Federtion nd The People s Repulic of Chin: or Requisition of the entered ship whether for title or for use. c Excludes the following res: In ddition to ny res excluded under the terms of entry, t ny time during the currency of this insurnce, the Mngers my in their solute discretion exclude ny geogrphicl loction s defined y them from cover under this su-cluse. Where such exclusion is mde, the Mngers: shll notify the Memers hving insurnce under this su-cluse nd s from hours GMT on the seventh dy fter such notice is given, excluding the dy during which notice is given, there shll e no cover in respect of ny clim consequent on events occurring t, or within, the excluded loction, unless the Directors in their solute discretion so determine; nd my reinstte cover in respect of such excluded re t ny time in their solute discretion. d Excludes the following risks In ddition to the exclusions from cover elsewhere under these Cluses, Llities, costs nd expenses consequent upon: () The outrek of wr (irrespective of whether declred or not) etween ny of the following: The United Kingdom, The United Sttes of Americ, Frnce, The Russin Federtion, nd The People s Repulic of Chin; () Requisition of the entered ship whether for title or for use; Llities, costs nd expenses excluded y the: () Institute Rdioctive Contmintion Chemicl, Biologicl, Biochemicl nd Electro-mgnetic Exclusion Cluse, CL /11/03; nd () Institute Cyer Attck Exclusion Cluse CL /11/103. e Shll e conditionl upon: the relevnt chterprty permitting the Owner to refuse orders to send the ship to ny geogrphicl loction tht is dngerous y reson of wr risks; nd Edition 2 dted effective

12 no express indemnity hving een given y the Memer to the Owner in respect of such voyge; f Shll e limited to the following extent nd suject to the following Limit of Llity The Clu s llity under this Cluse 16 shll e excess of the mount of the deductile in the Memers Certificte of Entry. As provided in Cluse 13 v the limit of the Clu s llity under these Chrterers Cluses including this Cluse 16 shll e such sum s is greed y the Mngers in writing nd ppers in the Certificte of Entry, or, in the sence of ny such mount, US$10million in ggregte per occurrence, inclusive of interest nd costs. Where series of events occurs which re temporlly nd/or geogrphiclly proximte, the Directors my in their solute discretion determine tht such events nd ny llities, costs nd expenses rising out of them mount to single occurrence for the purposes of this Cluse. Wr Risks Dmge to Hull Excluded Ares i The Memer shll e entitled to cover under this Cluse 16 i for llities, costs nd expenses relting to Wr Risks Dmge to Hull incurred whilst the entered ship is trding to JWC Hull Wr, Strikes, Terrorism nd Relted Perils Listed Ares provided tht: 17 Equipment And Freight And Other Risks i i iv such voyges re permissile under the relevnt chrterprty; nd tht no express indemnity hs een given y the Memer in respect of such voyges. The Clu shll not under ny circumstnces, sve only those provided for in the specific Cluses enumerted hereunder, py for or stisfy ny llity in respect of: loss of or dmge to n entered ship, or her tckle, pprel, lshings, furniture, stores, fittings or equipment or fuel, or for ny proportion thereof, or the Memer s unkers or equipment owned y the Memer or ny ssocited entity or for the cost or chrges of or relting in ny mnner whtsoever to the repir of n entered ship, or for slvge, or loss of freight or hire or demurrge on n entered ship or ny proportion thereof: or loss consequent upon detention of n entered ship sve tht, to the extent tht the Mngers in their solute discretion determine, the cost of fuel, insurnce, crew wges, stores, provisions nd port chrges, less ny svings in expenditure which would hve een incurred y the Memer hd the clim not occurred, shll e recoverle provided such loss is incurred in respect of clim otherwise covered under Cluse 21; or loss rising out of the cncelltion of chrter or other enggement of n entered ship, or for d dets, or for ny loss or llity whtsoever rising out of the insolvency or frud of the Memer or its gents. The specific Cluses referred to re s follows: In respect of Cluses 17 i - i Cluse 22 - relting to dmge to hull nd loss of time chrterers unkers; Cluse 16 i - relting to Wr Risks - dmge to hull; c Provided nd only to the extent tht the Memer is entered for Dmge to Hull under Cluse 22 under these Cluses nd suject to the terms of such entry; nd In respect of Cluses 17, i Where such loss is solely consequent upon the Memer s complince with direction of the Mngers; In respect of Cluses 17 i-iv Cluse 21 iv relting to life slvge; Cluse 21 xi d proviso (ix) - relting to loss of freight or hire, or clims for demurrge, detention nd dely where such loss or clim forms prt of clim for llities in respect Edition 2 dted effective

13 of loss of or dmge to crgo; Cluse 21 xvi - relting to confisction; Cluse 21 xix relting to sue nd lour; Cluse 21 xix c - relting to expenses incurred y direction of the Clu. v Rod Trffic Acts There shll e no recovery from the Clu in respect of llities rising under ny sttute regulting the use nd insurnce of rod vehicles. vi Lndfills Unless nd to the extent tht the Directors shll in their solute discretion otherwise determine, there shll e no recovery from the Clu in respect of ny llity, loss, dmge, cost or expense, including, without limittion, llity for the cost of remedil works or clen-up opertions, rising s result of the disposl or dischrge t, presence in, or the escpe or dischrge or thret of escpe or dischrge from, ny lnd sed dump, site, storge or disposl fcility of ny sustnce previously crried on the entered ship whether s crgo, fuel, stores or wste nd whether t ny time mixed in whole or in prt with ny other sustnce whtsoever. 18 Doule Insurnce If Memer is, prt from the protection or indemnity of the Clu, insured, protected or indemnified in ny mnner whtsoever ginst ny of the llities, costs or expenses enumerted in Cluses no contriution shll e mde y the Clu to such llity, costs or expenses, on the sis of doule insurnce or otherwise, to the extent to which he is so insured or protected or indemnified. Nevertheless, with the pprovl of the Directors, Memer my e protected or indemnified y specil greement with the Clu mde either directly with himself or with other Insurers upon the terms tht certin llities, costs or expenses shll e orne y the Clu notwithstnding such other insurnce, protection or indemnity. 19 Imprudent Trding i No clim shll e recoverle from the Clu if it rises out of or is consequent upon n entered ship: Electronic Trding Systems crrying contrnd, lockde running or eing employed in n unlwful trde; or performing ny voyge or eing employed in ny trde which in the opinion of the Directors is imprudent, unsfe, unduly hzrdous or improper. There shll e no receovery from the Clu in respect of ny llities, losses, costs nd expenses rising from the use of ny electronic trding system, other thn n electronic trding system pproved in writing y the Mngers, to the extent tht such llities, losses, costs nd expenses would not (sve insofr s the Directors in their solute discretion otherwise determine) hve risen under pper trding system. For the purposes of this Rule 19, An electronic trding system is ny system which replces or is intended to replce pper documents used for the sle of goods nd/or their crrige y se or prtly y se nd other mens of trnsport nd which: () () (c) re documents of title, or entitle the holder to delivery or possession of the goods referred to in such documents, or evidence contrct of crrige under which the rights nd oligtions of either of the contrcting prties my e trnsferred to third prty; nd A document shll men nything in which informtion of ny description is recorded, including, ut not limited to, computer or other electroniclly generted informtion. 20 Premle i The llities, costs nd expenses ginst which Memer my e protected nd indemnified y entry in the Clu re limited to those set out in Cluses 21 i 21 xxi nd 22 Edition 2 dted effective

14 inclusive nd s re greed in the Certificte of Entry suject lwys to: The terms therein provided, nd The terms of this Cluse nd of ll other Cluses of Chrterers Protection nd Indemnity insurnce. In ddition to the risks covered, the Memer shll lso e entitled to protection nd indemnity in respect of its llity s Chrterer to indemnify the Owner of, or ny prty to whom the Memer hs su-chrtered, the entered ship in respect of such risks; Provided lwys, unless otherwise greed y the Mngers in writing, tht the terms of the chrter or ny indemnities given or other llities ssumed thereunder: do not impose on the Memer llity, howsoever rising, consequent upon ny cts or omissions, negligence or rech of duty of the Owner, or su-chrterer, or ny other prties for which the Memer would not e lile ut for the terms of the chrter or indemnity; nd/or do not wive or otherwise limit in ny mnner whtsoever the right to exclude or limit llity nd/or ny rights of recourse ginst ny prty otherwise ville to the Memer; sve to the extent customrily provided under stndrd forms of chrter without mteril mendments; nd i where such llities, costs nd expenses result from n incident cused or contriuted to y ny of the circumstnces set out in Cluse 16 i, recovery shll e only on the terms nd to the extent provided in Cluses 16, nd i. Note: Stndrd forms of chrter for the purposes of Cluse 20 consist of: c d e f those chrterprty forms currently listed in the Forms of Approved Documents issued y the Bltic nd Interntionl Mritime Council Documentry Committee (BIMCO); the New York Produce Exchnge Form, NYPE 93 nd ASBATIME whether incorporting the NYPE InterClu Agreement, or not; Tnker Voyge nd Timechrters issued y B P, ExxonMoil, Shell, Texco, Vel; ASBATANKVOY, ASBA II, STBVOY, STBTIME; Vegoilvoy, Intertnkvoy, Africnphos, Ausr, Ausgrin, Bltimore Berth Grin, Euromed, Stemmor, Sugr Chrterprty, C(Ore)7 Mediterrnen Iron Ore; nd Such other forms s the Mngers my in their solute discretion from time to time pprove. 21 P nd I Risks Where cover is excluded under the Memer s terms of entry, in respect of ny su-cluse of this Cluse 21, there shll e no recovery of costs, llities nd expenses consequentil upon such excluded risk under ny other su-cluse of this Cluse 21; Llity to Persons Covered Risks Dmges or Compenstion for i The Clu shll not insure under this Cluse 21 ny Memer to ny extent whtsoever ginst llities, costs nd expenses ginst which the Memer would e insured if entered under Cluse 22, without deductile, irrespective of whether the ship is entered for Dmge to Hull or Time Chrterers Bunkers cover. Llities, costs nd expenses s set out in Cluse 21 nd in respect of the ctegories of persons set out in Cluse 21 i: rising y opertion of lw; or rising under ny contrct including ny collective greement pproved in writing y the Mngers prior to the event giving rise to the clim, nd upon such terms s the Mngers my require. Llity for dmges or compenstion in respect of personl injury, illness or deth; Edition 2 dted effective

15 Loss of Life or Personl Injury or Illness Medicl nd Funerl Expenses Hospitl, medicl nd/or funerl expenses, including reptrition of remins, in reltion to injury, illness or deth of ny person, or ny Semn whilst engged s crew of, or rising out of employment on ord, n entered ship, provided resonly incurred; Reptrition c Reptrition expenses in respect of persons on ord n entered ship in consequence of csulty thereto or consequent on illness or injury to such persons, or in ny other cse where the Mngers in their discretion determine tht such expenses hve een necessrily nd resonly incurred; Crew Sustitutes d Expenses necessrily incurred in sending rod sustitutes, or in securing, engging, reptriting or deporting sustitute engged rod, to replce ny Semn on ord n entered ship who shll hve died, or who shll hve een disemrked due to injury, illness, or deserted, or in ny other cse in which the Mngers determine tht such expenses were resonly incurred, sve tht wges shll only e recoverle s prt of such expenses when pyle to sustitutes, engged rod, whilst witing nd during reptrition; Shipwreck Unemployment Indemnity e Wges or other compenstion for loss of employment pyle to Semen in consequence of the loss or constructive totl loss of n entered ship; provided lwys tht: in respect of prgrphs d nd e of Cluse 21 no such expenses shll e recoverle in consequence of the termintion of ny greement whether in ccordnce with its terms, y mutul consent or y the Memer s rech, or y dismissl, or the sle of the entered ship or y reson of industril ction, or ny other voluntry ct of the Memer giving rise to such expenses or where such expenses could resonly hve een voided. Compenstion following Csulty f Dmges or compenstion for which Memer my e lile under contrct for crrige to pssengers on ord n entered ship in consequence of csulty to tht entered ship while they re on ord, csulty mening n incident involving either: () () collision, strnding, explosion, fire or ny other cuse ffecting the physicl condition of the entered ship so s to render it incple of sfe nvigtion to its intended destintion; or thret to the life, helth or sfety of pssengers. Provided tht ny clim on the Clu under this prgrph f shll e reduced y the mount of ny svings ccruing to the Memer s result of the csulty. Dmges or compenstion pyle in respect of pssengers under this prgrph f or ny other prgrph pplicle to pssengers under Cluse 21 shll include Memer s llity for the cost of forwrding them to destintion, returning them to port of emrktion, nd their mintennce shore. Devition Expenses g Port nd devition expenses when solely incurred: (i) (iv) (v) For the purpose of lnding or disposing of stowwys, refugees or other persons rescued t se; or In order to secure the necessry tretment for n injured or sick person eing crried on n entered ship; or While witing sustitute for decesed, injured or sick crew memer or deserter; or In ttempting to sve or sving life t se; or In order to serch for, nd/or recover, persons missing from the ship; Provided tht such expenses hve in the opinion of the Mngers een resonly incurred. Edition 2 dted effective

16 Loss of Bggge nd Effects Expenses in Respect of Deserters nd Stowwys h i The expenses recoverle re limited to the costs of fuel, insurnce, crew wges, stores, provisions nd port chrges, less ny svings in expenditure which would hve een incurred y the Memer ut for the devition. Loss of or dmge to ggge nd effects sve for specie, ullion, precious or rre metls or stone, plte or other ojects of rre nd precious nture, nk notes or other forms of currency, onds or other negotile instruments, whether the vlue is declred or not, unless in ny such cse the Mngers hve een notified prior to ny such crrige, nd ny directions mde y them complied with, provided tht in respect of crew, cover hereunder is limited to their effects s defined in Cluse 2. Reptrition expenses in respect of crew memers posted s deserters, stowwys, refugees nd persons rescued t se. Provided lwys tht such expenses hve in the opinion of the Mngers een resonly incurred; the Directors my gree in their discretion to cover ny other expenses nd costs incurred y the Memer in respect of such persons. Exclusion of Pollution Llities j Without prejudice to ny other provision, conclusion, limittion or condition set out in these Cluses, cover under Cluses 21 i-i or ny other Cluse is suject to Cluse 17 vi. Ctegories of Persons i Those persons in the ctegories ()-(e) elow, ut lwys excluding Personnel (other thn mrine crew) on ord the entered ship (eing n ccommodtion ship), employed otherwise thn y the Memer under contrct with third prty which hs een pproved y the Mngers; Hotel nd resturnt guests nd other visitors nd ctering crew of the entered ship when the ship is moored (otherwise thn on temporry sis) nd is open to the pulic s hotel, resturnt, r or other plce of entertinment. Crew Semen, including ny replcement or sustitute. Covered Risks: The following risks s set out in Cluse 21 re covered in respect of these persons: c d e g h dmges or compenstion for loss of life or personl injury or illness medicl or funerl expenses reptrition crew sustitutes shipwreck unemployment indemnity devition expenses loss of ggge nd effects Supernumerries Supernumerries nd persons eing crried other thn pursunt to contrct for crrige. Covered Risks: The following risks s set out in Cluse 21 re covered in respect of these persons c g h dmges or compenstion for loss of life or personl injury or illness medicl or funerl expenses reptrition devition expenses loss of ggge nd effects Edition 2 dted effective

17 Pssengers c Pssengers Note: It is recommended tht whenever prcticle n indemnity is tken from persons eing crried other thn pursunt to contrct for crrige. The Mngers will provide form of indemnity on request nd my lso rrnge seprte insurnce to cover such persons risks nd llities Covered Risks: The following risks s set out in Cluse 21 re covered in respect of these persons c f g h dmges or compenstion for loss of life or personl injury or illness medicl or funerl expenses reptrition compenstion following csulty devition expenses loss of ggge nd effects provided lwys tht: There shll e no recovery in reltion to ny llities, costs or expnses whtsoever rising out of trvel y ir sve during:- () () Reptrition y ir of n injured or sick pssenger or of pssenger following csulty s defined in prgrph f of Cluse 21 ; or Excursions from the insured vessel, (suject to proviso elow); There shll e no recovery in respect of contrctul llities, costs or expenses incurred y Memer in respect of pssenger whilst on n excursion from the entered ship if: () () A seprte contrct hs een entered into y the pssenger for the excursion whether or not with the Memer; nd/or The Memer hs wived ny or ll of its rights of recourse ginst ny sucontrctor or ny third prty in respect of the excursion. Third Prties d Third prties within the ctegories set out elow. Covered Risks The following risks s set out in Cluse 21 re covered in respect of these persons: dmges or compenstion for loss of life or personl injury or illness medicl or funerl expenses For person: In respect of llity resulting from negligent nvigtion or mngement of the entered ship or other negligent ct or omission on ord or in reltion to n entered ship; or In respect of llities rising in reltion to ny ct, neglect or defult in the hndling of the crgo of n entered ship or in consequence of the negligence of persons employed solely for tht purpose, from the time of receipt for shipment on quy or whrf until finl delivery ex quy or whrf t the port of dischrge. Deserters e Deserters, stowwys, refugees nd persons rescued t se. Covered Risks The following risks s set out in Cluse 21 re covered in respect of these persons g devition expenses Edition 2 dted effective

18 i expenses in respect of deserters nd stowwys provided lwys tht: Any wges due to deserter shll, if nd to the extent permissile y lw, e retined y the Memer nd such svings deducted from clim for reimursement under prgrph i of Cluse 21. Life Slvge iv To the extent not recoverle from crgo owners or underwriters, sums wrded to third prties for the sving of, or ttempting to sve, the life of ny person on or from n entered ship. Collision Llity v Llities, costs nd expenses (other thn in respect of, or consequent upon the loss of, or dmge to, or for loss of ernings of, the entered vessel), rising within the ctegories nd suject to the terms set out elow, consequent upon collision etween n entered ship nd ny other ship: Llity for loss of, or dmge to, or interference with rights in reltion to the other ship, or crgo or property therein, occsioned y collision with the entered ship. A Memer s llity to indemnify the owner of the other ship ginst, or to py, llities, costs nd/or expenses of or incidentl to: (i) (iv) Rising, removl, destruction, lighting or mrking of the wreck of such other ship, its crgo or other property on ord. Loss of, or dmge to, or interference with rights in reltion to ny fixed or movle property, whether on or ove, in or elow lnd or wter, cused y such other ship. An ctul or thretened escpe or dischrge of oil or ny other sustnce (other thn from the entered ship) sve for tht cusing dmge to the ship with which the entered ship is in collision or tht cusing dmge to ny property on ord tht ship. Remunertion pyle under the Specil Compenstion P&I (SCOPIC) Cluse or specil compenstion nd ny increment wrded thereon under the provisions of Article 14 of the Interntionl Convention on Slvge c Loss or dmge to crgo or other property eing crried on n entered ship consequent upon collision; provided lwys tht: the Memer is insured y the Clu for llities in respect of crgo, nd suject to the terms of entry nd the Cluses pplicle to such cover. Cluse 21 xi proviso (v) shll pply in respect of crgo eing crried in the entered ship which is owned y the Memer. Note: It is recommended tht ills of lding or ny other relevnt contrct of crrige should whenever possile incorporte Both-to-Blme collision cluse. A recommended form of such cluse is set out under Cluses Recommended y the Assocition t the end of the Cluses. d e If clim rises under this Cluse following collision involving ship owned y the sme Memer, the Memer shll e entitled to recover from the Clu, nd the Clu shll hve the sme rights, s if the ship which is lost or dmged nd owned y the Memer hd elonged to third prty. Without prejudice to ny other provision, exclusion, limittion or condition set out in these Cluses, cover under this Cluse 21 v is suject to Cluse 17 vi. Pollution vi Llities, losses, dmges, costs nd expenses cused y or consequent on the escpe or dischrge or thretened escpe or dischrge of oil or ny other sustnce from the entered ship s follows:- Actul Escpe of Pollutnts Llity for loss, dmge or contmintion Edition 2 dted effective