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Section 4
Exclusions
This insurance does not cover liability, loss, damage or expense caused by:
A. unseaworthiness including not being properly manned, equipped or loaded, provided that the Member knew, or should have known, of such unseaworthiness when the entered ship was sent to sea;
B. negligence or intentional act of the Member and his representative;
C. ordinary wear and tear, corrosion, rottenness or insufficient upkeep, or defect in material which the Member should have discovered with due diligence, or replacement of or repair to any part in unsound condition as mentioned above.
D. risks insured against or excluded by the cover of Hull War and Strikes under Section 11 of Rule 5.
Section 5
Deductible
The Member’s recovery from the Association under Section 3 of Rule 5 shall be subject to the deductibles in accordance with the following provisions:
A. Partial loss caused by a peril insured against shall be payable subject to the deductibles stipulated in the Certificate of Entry of the entered ship for each separate event (excluding claims relating to collision liability, salvage, general average and sue and labour).
B. Claims for damage caused by heavy weather occurring during a single sea passage between two successive ports shall be treated as being due to one event.
The provisions of this Section 5 shall not apply to a claim for total loss of the entered ship, and a claim for reasonable expense of sighting the bottom of the entered ship after grounding, if incurred specially for that purpose.
Section 6
Shipping
Unless previous notice has been given to the Managers and any amendment to the terms of cover and additional Call/Premium required by the Managers have been agreed, the Association shall not be liable under Sections 2 and 3 for any liability, loss, damage and expense arising out of:
A. towage of the entered ship undertaken by another ship (except as is customary or to the first safe port or place when in need of assistance) or towage or salvage service undertaken by the entered ship under a contract previously arranged by the Member. The customary towage in connection with loading and discharging shall not be excluded;
B.cargo loading or discharging operation at sea from or into another ship (notbeing a harbour or inshore craft) including whilst approaching, lying alongside and leaving;
C. the entered ship sailing (with or without cargo) with an intention of being broken up or sold for breaking up.
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