Rule  7   SPECIAL COVER FOR CHARTERERS, SPECIALIST OPERATIONS AND PASSENGER SHIPS

Without prejudice to the generality of Rule 6, a Member may be insured against such of the risks set out below as may be appropriate to his interest in an entered ship or to his operations as an Owner, but only by special agreement in writing with the Managers and upon such terms and conditions as the Managers may require.

Section 1

Charterer

Where the entry of a ship in the Association is in the name of or on behalf of a charterer, the following liabilities, losses, costs and expenses may be covered on such terms and conditions as may be agreed by the Managers in writing:

A. Liability of the charterer, together with costs and expenses incidental thereto, to indemnify the owner or disponent owner of the entered ship in respect of the risks set out in Rule 3.

B. Notwithstanding the provisions of sub-paragraphs [(i)], [(ii)] and [(iii)] of Rule 8 [D] [iv], the charterer’s liability, together with costs and expenses incidental thereto, for loss of or damage to the entered ship.

C. Notwithstanding the provisions of sub-paragraph [(ii)] of Rule 8 [D] [iv], the loss incurred by the charterer as a result of loss of or damage to bunkers, fuel or other property of the charterer on board the entered ship.

Section 2

Specialist operations

A Member may be insured against any of the liabilities, fines, losses, costs or expenses which arise out of or during any of those operations in respect of which cover is excluded or restricted either under Rule 8 [D] [v] or otherwise under these Rules upon such terms and conditions as may be expressly agreed in writing between the Member and the Managers.

Section 3

Passenger ships

The Member of a passenger ship may  be insured  against  any of the following risks upon such terms and conditions as may be agreed by the Managers in writing:

A. Liability for loss of or damage to the effects of any passenger or personal injury, illness or death of any passenger and hospital, medical or funeral expenses (including the repatriation of dead bodies) incurred in connection therewith to the extent that such liability, costs or expenses are not recoverable under Section 2 [C] of Rule 3.

B. Notwithstanding the provisions of sub-paragraph [(vi)] of Rule 8 [D] [iv], liability to pay damages or compensation to passengers intended to be carried on board an entered ship arising as a consequence of a casualty to that ship, including the costs of travel and maintenance.

C. Liability to pay damages or compensation to passengers for breach of contract or relevant regulations in respect of failure to provide facilities on board or in connection with a voyage on board an entered ship in accordance with the Member’s legal obligations.