Rule 1   DEFINITIONS

1. Association

China Shipoweners Mutual Assurance Association.

2. Bye-Laws

The Bye-Laws for the time being of the Association.

3.Rules

The Rules of the Association as originally framed or as from time to time altered, abrogated or added to, and for the time being in force.

4. Directors

The Board of Directors elected in General Meetings of Members of the Association.

5.Managers

The Managers conducting day-to-day affairs of the Association.

6.Entered Ship     

A ship which has been entered in the Association for insurance.

7.Ship

A ship, boat, hovercraft or any other description of vessel or structure entered or proposed to be entered in the Association (including any ship, boat, hovercraft or other description of vessel or structure under construction) used or intended to be used for any purpose whatsoever in navigation or otherwise on, under, over or in water or any part thereof or any proportion of the tonnage thereof or any share therein.

8. Tonnage

The gross register tonnage of a ship as certified in the Certificate of Registry of such ship or in any other official documentrelating to the registration of such ship.

9. Entered tonnage

The tonnage figure recorded as entered tonnage in the Certificate of Entry of an entered ship and used for the purposes of calculation of Calls and, where applicable, for the limitation of claims.

10. Owner

In relation to an entered ship means owner, owners in partnership, owners holding separate shares in severalty, part owner, mortgagee, trustee, charterer, operator, manager or builder of such ship and any other person (not being an insurer reinsured under Rule 13) named in the Certificate of Entry or Endorsement Slip, by or on whose behalf the same has been entered in the Association whether he be a Member of  the  Association or not.

11. Member

A Member for the time being of the Association.

12. Insurance

Any insurance or reinsurance.

13. Policy year

A year from 12 hours Greenwich Mean times (G.M.T.)on any 20th February to 12 hours G.M.T. on the next following 20th February in respect of the cover under Rules 3 and 4; and a year from zero hour Beijing time on any 1st January to 24 hours Beijing time on the 31st December of the same year in respect of the cover under Rule 5.

Unless otherwise stipulated in the Rules, all times referred to in the Rules in respect of the cover under Rule 3 and Rule 4 are Greenwich Mean Times(G.M.T.), while, in respect of the cover under Rule 5 are Beijing times.

14.Closed policy year

A policy year of the Association which has been closed in accordance with the provisions of Rule 23.

15.Group Excess Reinsurance Policies

The excess of loss reinsurance policies effected by the parties to the Pooling Agreement.

16. Group Reinsurance Limit

The amount of the smallest claim (other than any claim arising in respect of oil pollution) incurred by the Association or by any other party to the Pooling  Agreement which would exhaust the largest limit for any type of claim (other than a claim arising in respect of oil pollution) from time to time imposed in the Group Excess Reinsurance Policies.

17.  Convention Limit

In respect of a ship, the limit of liability of the owner of that ship for claims (other than claims for loss of life or personal injury) at the Overspill Claim Date, calculated in accordance with Article 6 paragraph 1(b) of the International Convention on Limitation of Liability for Maritime Claims 1976 (the “Convention”) and converted from Special Drawing Rights into United States Dollars at the rate of exchange conclusively certified by the Association as being the rate prevailing on the Overspill Claim Date, provided that, (1) where a ship is entered for a proportion (the “relevant  proportion”) of its tonnage only,  the Convention Limit shall be the relevant proportion of the limit of liability calculated and converted as aforesaid and (2) each ship shall be deemed to be a sea-going ship to which the Convention applies, notwithstanding any provision in the Convention to the contrary.

18.Hull Policy or Hull Certificate

A policy effected on the hull and machinery of a ship or a certificate issued by the Association on the hull and machinery of an entered ship under Rule 5.

19.Calls

Sum or sums payable to the Association in respect of an entered ship pursuant to Rules 16, 18, 24, 25 and 26, including Advance Call, Supplementary Calls, Overspill Calls and Release Calls.

20. Call Entry

An insurance on terms that the Member is bound to pay Calls to the Association.

21. Fixed Premium

A fixed premium payable to the Association in respect of an entered ship pursuant to Rule 17.

22. Fixed Premium Entry 

An insurance on terms that the Owner is bound to  pay a fixed premium to the Association.

23. Overspill Calls

Calls levied by the Association pursuant to Section 4 of Rule 16 for the purpose of providing funds to pay all or part of an Overspill Claim.

24. Overspill Claim

That part (if any) of a claim (other than a claim in respect of oil pollution) incurred by the Association or by any other party to the Pooling Agreement under the terms of entry of a ship which exceeds or may exceed the Group Reinsurance Limit.

25. Overspill Claim Date

In relation to any Overspill Calls, the time and date on which there occurred the event giving rise to the Overspill Claim in respect of which the Overspill Calls are made or, if the policy year in which such event occurred has been closed in accordance with the provisions of Rules 23  [C] [i] and 23 [C] [ii],12 hours G.M.T. on 20th August of the policy year in respect of which the  Association makes a declaration under Rule 23 [C] [iii].

26. Release Calls

Calls levied by the Association pursuant to Rules 24, 25 and 26 where the insurance in the Association is terminated, ceased or cancelled.

27. Event

Any one event ( save that a series of event having the same origin shall be treated as one event taking place at the time of the first of them).

28. Seaman

Any person (including the Master and apprentices)    employed as part of a ship’s complement under the  terms of a crew agreement or other contract of service or employment to serve on board an entered ship, whether or not on board that ship.

29. Passenger

means any person carried on board the entered ship pursuant to a contract for carriage.

30. Cargo

Goods, including anything used or intended to be used to pack or secure goods, in respect of which a Member enters into a contract of carriage, but excluding     containers or other equipment owned or leased by the Member.

31. Pooling Agreement

The agreement dated 17th November 1992 between certain members of the International Group of Protection and Indemnity Associations and any addendum, variation, or replacement of the said agreement, or any other agreement of a similar nature or purpose.