Section 7

Collision liability

The liabilities, set out in paragraphs [A], [B] and [C] below, to pay costs and damages to any other person as a consequence of a collision between an entered ship and any other ship, but only if and to the extent that such liabilities are not recoverable under the collision liability clause contained in the Hull Policies or the Hull Certificates of the entered ship:

A. One fourth, or such other proportion as may have been agreed in writing by the Managers, of the liabilities arising out of the collision other than the liabilities listed in paragraph [B] of this Section.

B. Four fourths of the liabilities arising out of the collision for or relating to

i. an escape or discharge (other than from the entered ship), of oil or any other substance, or the threat thereof, but excluding damage to other ships with which the entered ship is in collision and property on such other ships,

ii. any real or personal property or any thing whatsoever except other ships or property on other ships,

iii. removal or disposal of obstructions, wrecks, cargoes or any other  thing whatsoever,

iv. the cargo or other property on the entered ship, or general average contributions, special charges or salvage paid by the owners of that cargo or property,

v. loss of life, personal injury, illness, repatriation or substitute expenses,

vi. remuneration paid, pursuant to the Special Compensation P&I Club (SCOPIC) Clause, or any revision thereof, in respect of the salvage of a ship with which the entered ship is in collision.

C. That part of the Member’s liabilities arising out of the collision, other than the liabilities listed in paragraphs [A] and [B] of this Section, which exceeds the sum recoverable under the Hull Policies or the Hull Certificates of  the entered ship solely by reason of the fact that the sum of the liabilities arising out of the collision exceeds the valuation of the ship in those Policies or Certificates.

PROVIDED ALWAYS that

a. Unless and to the extent that the Directors in their discretion otherwise decide, recovery from the Association under paragraph [C] of this Section shall be limited to the excess (if any) of the amount which would have been recoverable under the Hull Policies or the Hull Certificates of the entered ship if that ship had been insured  thereunder  at  the  proper value in accordance with paragraph [D] [(i)] of Rule 8.

b. Unless otherwise agreed at the time of entry or of subsequent annual renewal, a Member shall not be entitled to recover from the Association any franchise or deductible borne by him under the Hull Policies or the Hull Certificates of the entered ship.

c. If a claim arises under this Section in respect of a collision involving  two ships belonging wholly or partly to the same Member, then the Member and the Association shall have the same rights and obligations under this Section, as if the ships had belonged to different owners.

d. Unless otherwise agreed between the Member and the Managers as a term of the ship’s entry in the Association, if both ships are to blame , then where  the liability of either or both of the ships in collision becomes limited by law, claims under this Section shall be settled upon the principle of single liability, but in all other cases claims under this Section shall be settled upon the principle of cross-liabilities, as if the owner of each ship had been compelled to pay the owner of the other ship such proportion of the latter’s damages as may have been properly allowed in ascertaining the balance or sum payable by or to the Member of the entered ship in consequence of the collision.