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C. Limitation of the Association’s liability
i. General
Subject to these Rules and to any special terms and conditions upon which a ship may be entered, the Association insures the liability of the Member in respect of an entered ship as this liability may be determined and fixed by law including any laws pertaining to limitation of liability. The Association shall in no circumstances be liable for any sum in excess of such legal liability.
If less than the full tonnage of a ship is entered in the Association, the Member shall, unless the entry of the ship has been accepted on special terms which otherwise provide, be entitled only to recover such proportion of his claim as the entered tonnage bears to the full tonnage. Such proportion shall, if the Member’s claim is subject to any other limits under these Rules, be applied after the application of such limits.
ii. Charterers
Where an entry of a ship in the Association is in the name of or on behalf of a charterer (other than a charterer by demise or bareboat charterer) then, unless otherwise agreed in writing between such charterer and the Managers, the liability of the Association in respect of any claims brought by such charterer relating to the entry of that ship in the Association shall be limited to the amount to which such charterer could have limited his liability if he had been the registered owner of that ship and had sought and not been denied the right to limit.
iii. Oil pollution
Unless otherwise limited to a lesser sum, the Association's liability for any and all claims in respect of oil pollution shall be limited to such sum or sums as referred to in Appendix A to Rule 3.
Unless the Directors otherwise decide, such limit shall apply in respect of any one entered ship each event and shall apply irrespective of whether the event involves the escape or threatened escape of oil from one or more than one ship and to all claims in respect of oil pollution brought by the Member or joint Members of the entered ship whether under one Section or more than one Section of Rule 3. If the aggregate of such claims exceeds that limit, the liability of the Association for each claim shall be limited to such proportion of that limit as such claim bears to the aggregate of all such claims.
For the purpose of this sub-paragraph and the provisos thereto, and without prejudice to anything elsewhere contained in these Rules, a “claim in respect of oil pollution” shall mean a liability, cost, loss or expense, howsoever incurred, in respect of or relating to an escape or discharge of oil or any threat or consequence of such escape or discharge, but excluding liability for loss of or damage to such oil.
PROVIDED ALWAYS that
a. Where the entered ship provides salvage or other assistance to another ship following a casualty, a claim by the Member of the entered ship in respect of oil pollution arising out of the salvage, the assistance or the casualty shall be aggregated with any liabilities or costs incurred in respect of oil pollution by any other ship similarly engaged in connection with the same casualty when such other ships are insured for oil pollution risks by the Association or by any other insurer which participates in the Pooling Agreement. In these circumstances the limit of the Association's liability shall be such proportion of the limit as referred to in Appendix A to Rule 3 as the claim of the Member bears to the aggregate of the said claims.
b. Where a ship entered in the Association by or on behalf of any person (except a charterer other than a demise or bareboat charterer) is also separately insured in the name of or on behalf of the same or any other such person by the Association or by any other insurer which is a party to the Pooling Agreement for claims in respect of oil pollution, the aggregate recovery in respect of all such claims arising out of any one event shall not exceed the limit referred to in Appendix A to Rule 3 and the liability of the Association to each such person insured by the Association shall be limited to such proportion of that limit as the maximum claim otherwise recoverable by such person from the Association bears to the aggregate of all such claims otherwise recoverable from the Association and from all such insurers.
c. Unless the Directors otherwise decide pursuant to paragraph [C] [iii] of this Rule 8, in the event that more than one charterer other than a demise or bareboat charterer is insured in respect of the same ship by the Association or by any other insurer which participates in the Pooling Agreement, the aggregate recovery in respect of all claims brought by all such charterers in respect of oil pollution arising out of any one event shall not exceed the limit referred to in Appendix A to Rule 3 and the liability of the Association to each charterer insured by the Association shall be limited to such proportion of the limit as the maximum claim otherwise recoverable from the Association by each such charterer bears to the aggregate of all the said claims.
If and to the extent that the Member has, in relation to any claim in respect of oil pollution, other insurance not being solely in excess of the limit referred to in Appendix A to Rule 3 nor being a quota share arrangement agreed in advance with the Association in writing, then (i) the amount of the said limit shall, as applied to such claim, be reduced by the amount of the stated limit of such other insurance and (ii) the Association shall not pay such claim to the extent that it does not exceed the stated limit of such other insurance.
iv. Passenger / Seaman
For the purpose of this sub-paragraph and the provisos thereto, and without prejudice to anything elsewhere contained in the Rules, a "Passenger" shall mean a person carried onboard a ship under a contract of carriage or who, with the consent of the carrier, is accompanying a vehicle or live animals covered by a contract for the carriage of goods and a "Seaman" shall mean any other person onboard a ship who is not a Passenger.
Unless otherwise limited to a lesser sum, the Association's aggregate liability for any and all claims arising out of any one event shall not exceed
(i) in respect of liability to Passengers US$2,000 million; and
(ii) in respect of liability to Passengers and Seamen US$3,000 million, for each ship entered by or on behalf of an Owner not being a charterer other than a demise or bareboat charterer.
PROVIDED ALWAYS that
Where a ship entered in the Association by or on behalf of any person (except a charterer other than a demise or bareboat charterer) is also separately insured in the name of or on behalf of the same or any other such person by the Association or by any other insurer which is a party to the Pooling Agreement.
a. the aggregate of claims in respect of liability to Passengers recoverable from the Association and/or such other insurers shall not exceed US$2,000 million any one event and the liability of the Association shall be limited to such proportion of that sum as the claims recoverable by such persons from the Association bears to the aggregate of all such claims otherwise recoverable from the Association and all such insurers;
b. the aggregate of all claims in respect of liability to Passengers and Seamen recoverable from the Association and/or such other insurers shall not exceed US$3,000 million any one event and the liability of the Association shall be limited:
(i) where claims in respect of liability to Passengers have been limited to US$2,000 million in accordance with proviso a. to such proportion of the balance of US$1,000 million as the claims recoverable by such persons in respect of liability to Seamen bear to the aggregate of all such claims otherwise recoverable from the Association and all such insurers; and
(ii) in all other cases, to such proportion of US$3,000 million as the claims recoverable by such persons in respect of liability to Passengers and Seamen bear to the aggregate of all such claims otherwise recoverable from the Association and all such insurers.
v. The provisions of paragraphs [C] [ii] and [iii] of this Rule 8 shall not apply to the cover under Rule 5.
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