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Section 3
All Risks Cover
This insurance covers total loss of or partial loss of or damage to the entered ship arising from the causes referred to in Section 2 above and also covers liabilities or expenses below:
A. Collision Liabilities
i. Legal liabilities of the Member as a consequence of the entered ship coming into collision with any other ship, or contact with any object, fixed, floating or otherwise. However there shall be no recovery from the Association in respect of:
(i) loss of life, personal injury or illness;
(ii) cargo or other property on, or engagements of, the entered ship;
(iii) removal or disposal of obstructions, wrecks, cargoes or any other thing whatsoever;
(iv) pollution or contamination of any property or thing whatsoever (including cost of preventive measures and clean-up operations) except pollution or contamination of the other ship with which the entered ship is in collision or property on such other ship;
(v) indirect losses and expenses arising from delay to or loss of use of any object, fixed, floating or otherwise.
ii. Where the entered ship is in collision with another ship and both ships are to blame, then unless the liability of one or both ships becomes limited by law, the indemnity under paragraph [A] of this Section 3 shall be calculated on the principle of cross-liabilities, This principle also applies when the entered ship comes into contact with an object.
iii. The Association's liability of indemnity (including legal costs) under paragraph [A] of this Section 3 shall be in addition to the indemnity provided by the other provisions of this Section 3, but shall not exceed the insured amount of the entered ship in respect of each separate occurrence.
B. General Average and Salvage
i. This insurance covers the entered ship's proportion of general average, salvage or salvage charges. In case of general average sacrifice of the entered ship, the Member may recover fully for such loss without first enforcing his right of contributions from other parties.
ii. General average adjustment shall be made in accordance with the law or the rules at the place of adjustment provided in the relevant contract. However, where the contract does not so provide, the adjustment shall be made in Beijing in accordance with the existing Beijing Adjustment Rules.
iii. Where all the contributing interests are owned by the Member, or when the entered ship sails in ballast and there are no other contributing interests, general average adjustment shall be made in accordance with the provisions of Beijing Adjustment Rules (excluding Article 5), or similar provisions of other rules if expressly agreed as if the interests were owned by different persons. The voyage for this purpose shall be deemed to continue from the port or place of departure until the arrival of the entered ship at the first port or place thereafter other than a port or place of refuge or a port or place of call for bunkering only.If at any such intermediate port or place there is an abandonment of the adventure originally contemplated the voyage shall thereupon be deemed to be terminated.
C. Sue and Labour
i. Where there is loss of or damage to the entered ship arising from a peril insured against or where the entered ship is in an immediate danger from such a peril, and as a result reasonable expenditure is incurred by the Member in order to avert or minimize a loss which would be recoverable under this Rule 5, the Association will be liable for the expenses so incurred by the Member. This paragraph [C] shall not apply to general average, salvage or salvage charges or to expenditure otherwise provided for in Rule 5.
ii. The Association's liability of indemnity under this paragraph [C] shall be in addition to the indemnity provided by the other provisions of this Section 3, but shall not exceed the insured amount of the entered ship.
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