Section 9

Tender

A. Where the entered ship is damaged and repairs are required, the Member shall take such tenders as a diligent uninsured owner would take to obtain the most favourable offer for the repairs of the damaged ship.

B. The Managers may also take tenders or may require further tenders to be taken for the repair of the entered ship. Where such a tender has been taken and is accepted with the approval of the Managers an allowance in respect of fuel, store, wages and maintenance of the Master and crew shall be made for the time lost between the dispatch of the invitations to tender        required by the Managers and the acceptance of a tender to the extent that such time is lost solely as the result of tenders having been taken and provided that the tender is accepted without delay after receipt of the Managers’ approval, however, the allowance shall not exceed the amount calculated for that period at the rate of 30% per annum on the insured value of the entered ship in the relevant policy year.

Due credit shall be given against the allowance as above for any amounts recovered in respect of fuel and stores and wages and maintenance of the Master and crew, including amounts allowed in general average, and for any amounts recovered from third parties in respect of damages for detention and/or loss of profit and/or running expenses, for the period covered by the tender allowance or any part thereof.

C. The Member may decide the place of repair of the damaged entered ship. However, if the Member in taking such decision does not act as a diligent uninsured owner, then the Managers shall have a right of veto concerning the place of repair or the repairing firm decided by the Member or to deduct any increased costs resulting therefrom from the indemnity.