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Rule 5 HULL & MACHINERY RISKS COVERED
Unless otherwise agreed between a Member and the Managers, the risks of Total Loss Only, All Risks and Hull War and Strike covered by the Association are as set out in this Rule 5.
Section 1
The subject matter insured
The subject matter insured by the Association under this Rule 5 is the entered ship and the liabilities, costs and expenses referred to hereunder.
For the purpose of this Rule 5, the reference of “the entered ship” shall include its hull, lifeboats, machinery, equipments, instruments, tackles, bunkers and stores.
Section 2
Total Loss Only
This insurance covers total loss of the entered ship caused by:
A. earthquake, volcanic eruption, lightning or other natural calamities;
B. grounding, collision, contact with any object, fixed, floating or otherwise, or other perils of the seas;
C. fire or explosion;
D. violent theft by persons from outside the entered ship or piracy;
E. jettison;
F. breakdown of or accident to nuclear installations or reactors;
G. other causes mentioned below:
i. accidents in loading, discharging or shifting cargo or fuel;
ii. any latent defect in the machinery or hull of the entered ship;
iii. wrongful acts willfully committed by the Master or crew to the prejudice of the Member's interest;
iv. negligence of the Master, crew, pilots, repairers or charterers;
v. acts of any governmental authority to prevent or minimize a pollution hazard resulting from damage to the entered ship caused by risks covered by the Association;
provided such total loss has not resulted from want of due diligence by the Member, Owners or his managers.
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