Section 2

Injury,  illness or death of persons  other  than  seamen and liability  to passengers

A.  Liability to pay damages or compensation for personal injury, illness or death of any person (other than the persons specified in Section 1 and in paragraphs [B] and [C] of this Section) and hospital, medical or  funeral expenses (including the repatriation of dead body) incurred in relation to such injury, illness or death.

B.  Liability to pay damages or compensation for personal injury, illness or death of any person engaged to handle the cargo of an entered ship.

PROVIDED ALWAYS that

a.    Cover under paragraphs [A] and [B] of this Section is limited to liabilities arising out of a negligent act or omission on board or in relation to an entered ship or in relation to the handling of her cargo from the time of receipt of that cargo from the shipper or pre-carrier at the port of shipment until delivery of that cargo to consignee or onward carrier at the port of discharge.

b.    Where the liability arises under the terms of any contract or indemnity and would not have arisen but for those terms, that liability is not covered under this Section but may be covered under and in accordance with Section 6 of Rule 3.

c.    Where the liability is in respect of a person on another ship, and arises out of a collision between that ship and the entered ship, that liability is not covered  under this Section but may be recoverable under and in accordance with Section 7 [B] of Rule 3.

C. Liability to pay damages or compensation:

i. for personal injury, illness or death of any passenger and hospital, medical or funeral expenses (including the repatriation of dead body) incurred in relation to such injury, illness or death;

ii. to passengers on board an entered ship arising as a consequence of a casualty to that ship, including the cost of forwarding passengers to destination or return to port of embarkation and of maintenance of passengers ashore;

iii. for loss of or damage to the effects of any passenger.

PROVIDED ALWAYS that

a.Cover under this paragraph [C] is limited to liabilities, costs and expenses arising out of any act, neglect or default on board or in relation to the entered ship.

b. The terms of the passage ticket or other contract between the passenger and the Member have been approved by the Managers in writing and cover for the liabilities set out in this paragraph [C] has been agreed between the Member and the Managers on such terms as the Managers may require.

c. There shall be no recovery from the Association under this paragraph [C] in respect of liabilities for personal injury or death, or loss of or damage to property, delay or any other consequential  loss sustained by any passenger by reason of carriage by air, except where such liability occurs either:

i. during repatriation by air of injured or sick passengers or of passengers following a casualty to the entered ship; or

ii. during an excursion from the entered ship, subject always to proviso [d] of this paragraph.

d. There shall be no recovery from the Association under this paragraph [C] in respect of the contractual liability of a Member for death or injury to a passenger whilst on an excursion  from the entered ship in circumstances where either:

i. a separate contract has been entered into by the passenger for the excursion, whether or not with the Member, or

ii. the Member has waived any or all of his rights of recourse against any sub-contractor or other third party in respect of the excursion.

e. Unless and to the extent that the Member has obtained appropriate special cover by agreement with the Managers, there shall be no recovery from the Association in respect of claims relating to cash, negotiable instruments, precious or rare metals or stones, valuables or objects of a rare or precious nature.

f. For the purpose of this paragraph [C] ‘casualty’ means an incident  involving either:

i. 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

ii. a threat to the life, health or safety of passengers’.