Section 14

Wreck liabilities

A. Costs or expenses relating to the raising, removal, destruction, lighting or marking of the wreck of an entered ship, when such raising, removal, destruction, lighting or marking is compulsory by law or the costs thereof are legally recoverable from the Member. 

B. Costs or expenses relating to the raising, removal or destruction of any cargo or property being carried or having been carried on an entered ship, not being oil or any other substance within the scope of Section 12 of this Rule, when such raising, removal or destruction is compulsory by law or the costs or expenses thereof are legally recoverable from the Member but only if and to the extent that:

i. such property does not form part of the entered ship and is not owned or leased by the Member or by any company associated with or under the same management as the Member; and

ii. the Member is unable to recover such costs or expenses from the owner or insurer of such cargo or property, or from any other party.

C. Liabilities incurred by a Member as the result of any such raising, removal or destruction of the wreck of an entered ship or any cargo or property as is referred to in paragraphs [A] and [B] of this Section, or any attempt thereat.

D. Liabilities incurred by a Member as the result of the presence or involuntary shifting of the wreck of an entered ship or as a result of his failure to remove, destroy, light or mark such wreck, including liability arising from the discharge or escape from such wreck of oil or any other substance.

PROVIDED ALWAYS that

a. The entered ship became a wreck as the result of a casualty or event occurring during the period of that ship’s entry 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 paragraph [C] of Rule 25.

b. In respect of a claim under paragraph [A] and / or [B] of this Section, the value of all stores, cargos, properties and materials saved, the wreck itself, as well as any salvage remuneration received by the Member, shall first be deducted from such costs or expenses and only the balance thereof, if any, shall be recoverable from the Association.

c. Nothing shall be recoverable from the Association under this Section if the Member shall, without the consent of the Managers in writing, have transferred his interest in the wreck, otherwise than by abandonment, prior to the raising, removal, destruction, lighting or marking of the wreck or prior to the event giving rise to the liabilities, costs and expenses referred to in this Section.

d. Where the liability arises under the terms of an indemnity or contract, and would not have arisen but for those terms, such costs and expenses are only recoverable under this Section if and to the extent that:

i. the terms of the indemnity or contract have previously been approved by the Managers in writing and cover has been agreed between theMember and the Managers on such terms as the Managers may require, or

ii. the Directors in their discretion decide that the Member should be reimbursed.

Section 15

Quarantine expenses

Additional expenses incurred by the owner of an entered ship as a direct consequence of an outbreak of infectious disease on that ship, including quarantine and disinfection expenses and the net loss to the owner  ( over  and above such expenses  as  would  have been incurred but for the outbreak) in respect of the cost of fuel, insurance, wages, stores, provisions and port charges.

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