|
E . Classification and statutory requirements
Unless otherwise agreed in writing between the Member and the Managers, the following conditions are terms of the insurance of every entered ship:
i The ship must be and remain throughout the period of entry classed with a Classification Society approved by the Managers.
ii. Any incident or condition in respect of which that Classification Society might make recommendations as to repairs or other action to be taken by the Member must be promptly reported to that Classification Society.
iii. The Member must comply with all the rules, recommendations and requirements of the Classification Society relating to the entered ship within the time or times specified by the Classification Society.
iv. The Member authorises the Managers to inspect any information, relating to the maintenance of class of the entered ship, in the possession of any Classification Society with which that ship is or at any time has been classed, and will where necessary authorise such Classification Society or Societies to disclose and make available that information to the Managers upon request by the Managers and for whatsoever purposes the Managers may consider necessary.
v. The Member must immediately inform the Managers if, at any time during the period of entry, the Classification Society with which the ship is classed is changed and advise the Managers of all outstanding recommendations, requirements or restrictions specified by any Classification Society relating to that ship as at the date of such change.
vi. The Member must comply with all statutory requirements of the state of the ship’s flag relating to the construction, adaptation, condition, fitment, equipment and manning of the entered ship and must at all times maintain the validity of such statutory certificates as are issued by or on behalf of the state of the ship’s flag in relation to such requirements and in relation to the International Safety Management (ISM) Code and the International Ship and Port Facility Security (ISPS) Code.
Unless and to the extent that the Directors in their discretion otherwise decide, the Association shall not be liable for any claim arising during a period when that Member is not fulfilling or has not fulfilled those conditions.
PROVIDED ALWAYS that
where the entry of a ship is solely in the name of or on behalf of a charterer other than a demise or bareboat charterer the rights of recovery of such charterer shall not be dependent on the fulfilment of conditions [ii], [iii], [iv], [v] or [vi] of this paragraph [E].
F. Survey of ships
i. The Managers at any time in their discretion may appoint a surveyor or such other person as they may think fit to inspect an entered ship on behalf of the Association.
ii. If an entered ship has been laid-up for a period of 6 (six) months or more, whether the ship has been entered in the Association for all or part of the period of lay-up, the Member shall give the Managers notice that the ship is to be recommissioned not less than 7 days before the ship leaves the place of lay-up.
Upon receipt of such notice the Managers in their discretion may appoint a surveyor or such other person as they may think fit to inspect the ship on behalf of the Association.
iii. The Member, under the circumstances specified in sub-paragraphs [i] and [ii] above, shall
(i) afford such facilities as may be required for such inspection, and
(ii) comply with such recommendations as the Managers may make following such inspection.
Unless and to the extent that the Directors otherwise decide, a Member who commits any breach of his obligations referred to in sub-paragraphs [ii] or [iii] shall not be entitled, in relation to any casualty or event occurring during the period of the breach, to any recovery from the Association in respect of any claim arising out of such casualty or event.
A breach of the obligation in sub-paragraph [ii] above shall be deemed to have ended at such time as the Member has complied with his obligations referred to in sub-paragraph [iii][(i)] above.
Notwithstanding the above and in addition thereto, the Managers may, in the light of such inspection or in the event of any breach of the obligations referred to in sub-paragraphs [iii] [(i)] and [iii] [(ii)] above, terminate the Member's entry forthwith whereupon the Member shall cease to be insured in respect of the entered ship.
G. Lay Up
If an entered ship shall be without cargo and out of service and so remain safely laid up for a period of 30 or more consecutive days after finally mooring at her port or place of lay up (such period being computed from the day of arrival to the day of departure, only one being included) the Member shall be allowed a return of Net Premium in respect of P&I cover as referred in Rule 3 as follows:
i. If the ship so remains at any safe port or place,
with all her machinery shut down, including the ship’s own generators,
and with no crew or other persons on board or on duty in the immediate
vicinity of the vessel, except for the minimum such persons necessary
for the security and safety of the ship at her place of lay up at
such rate of up to 90% of the Net Premium on a pro rata daily basis
as the Managers in their discretion may determine;
ii. If the ship so remains at any safe port or place, with her machinery
operative, at such rate of up to 50% of the Net Premium on a pro
rata daily basis as the Managers in their discretion may determine.
Provided always that
(i) unless otherwise agreed in writing by the Managers, there shall
be no entitlement to any return of Net Premium, under this sub-rule
i if any works, repairs, refit or maintenance have been or are carried
out upon the ship during the period of lay up, other than those
required solely for the ship’s safety or security at her place of
lay up;
(ii) Notwithstanding proviso (i) above, the carrying out of routine
maintenance upon the ship during the period of layup shall not preclude
the Member from claiming a return of Net Premium under sub-rule
i b above.
(iii) Where it appears likely that the vessel will be so laid up
for a period of 30 or more consecutive days and whether or not an
application for laid up returns is made or anticipated to be made
in accordance with this Rule:
(a) the Member must forthwith notify the Managers
in writing in a form required by the Managers, specifying amongst
other things the location, the mooring and crewing arrangements
and anticipated duration of such lay up;
(b) the Member shall be under a continuing duty to
assess the safety of the ship and the port or place of lay up and
notify the Managers of any material change of circumstances since
the date of the notice referred to at (a) above;
(c) the Managers shall have the option but not the
obligation to arrange a survey or other investigation to assess
the safety of the ship and /or the place of lay up, and the Member
shall bear the costs of such survey or investigation unless otherwise
agreed by the Managers in writing;
(d) The Managers shall have sole discretion in deciding
whether the port or place involved (or the position of the ship
in such place) is safe for the purposes of this Rule;
(iv) An application for a laid up return shall be
made by the Member in the form required by the Managers;
(v) Where notice of lay up is given, whether or not the Member has
sought laid up returns, in accordance with this Rule, the Member
warrants, and it shall be a condition precedent to a Member’s right
of recovery from the Association, that it and the ship shall
(a) continue to comply with the provisions of the Rules and Rule
8 E in particular; and
(b) comply with all legal and regulatory requirements imposed by
the relevant authorities exercising jurisdiction over the ship in
its place of lay up, including but not limited to the relevant port
state(s) and harbour authorities, as well as with any conditions
imposed by the ship’s hull and machinery underwriters, and any requirements
of the ship’s classification society and flag state;
(vi) No laid up returns shall be allowed in respect of charterers’
entries, other than entries in respect of bareboat charters;
(vii) For the purposes of this Rule “Net Premium” means the premium
payable, excluding Overspill Calls, less such allowance for the
unrecoverable cost of reinsurance, brokerage, administration expenses,
and any other amounts due from the Member to the Association .
(viii) Unless the Directors shall in their absolute discretion otherwise determine, no claim shall be admitted for laid up returns unless the claim is made within 3 months of the end of either the vessel’s lay up or the applicable policy year, whichever shall first occur.
(ix) The Managers may, in their discretion, admit in whole or in part, a claim for a laid up return which would otherwise be excluded by the operation of any provision of this Rule.
(x) Where an entered ship has been laid up for a period of 30 or more consecutive days, regardless whether any part of that period precedes the ship’s entry in the Association and whether or not the Member has sought laid up returns in accordance with this Rule, the Member shall give notice to the Managers not less than 14 days prior to the date when the ship sails from the place of lay up, and the Managers shall be entitled to survey any such ship prior thereto or afterwards. Without prejudice to the foregoing, the provisions of Rule 8 F shall apply to any ship laid up in accordance with this Rule or otherwise.
|
