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H. Obligation to sue and labour
Upon the occurrence of any casualty or event liable to give rise to a claim by a Member upon the Association, it shall be the duty of the Member and his agents to take and to continue to take all such steps as may be reasonable for he purpose of averting or minimizing any expense or liability in respect whereof he may be insured by the Association. In the event that a Member commits any breach of this obligation, unless and to the extent that the Directors in their discretion otherwise decide, the Managers may reject any claim by the Member against the Association arising out of the casualty, event or reduce the sum payable by the Association in respect thereof by such amount as they may determine.
I. Rights and obligations relating to claims
i. A Member must promptly and faithfully notify the Managers or in case of necessity the nearest correspondents of every casualty, event or claim upon him which is liable to give rise to a claim upon the Association, and of every event or matter which is liable to cause the Member to incur liabilities, costs or expenses for which he may be insured by the Association.
ii. A Member must promptly notify the Managers of every survey or opportunity for survey in connection with a matter referred to under sub-paragraph [i] above.
iii. A Member must at all times promptly notify the Managers of any information, documents or reports in his or his agents’ possession, power or knowledge relevant to such casualty or event as is referred to under sub-paragraph [i] above and shall further, whenever so requested by the Managers, promptly produce to the Association and/or allow the Association or its agents to inspect, copy or photograph, all relevant documents of whatsoever nature in his or his agents’ possession or power and shall further permit the Association or its agents to interview any servant, agent or other person who may have been employed by the Member at the material time or at any time thereafter or whom the Association may consider likely to have any direct or indirect knowledge of the matter or who may have been under a duty at any time to report to the Member in connection therewith.
iv. A Member shall comply with any directions given by the Managers in accordance with sub-paragraph [vii] below in connection with any claim and any casualty or event which is liable to give rise to a claim upon the Association.
v. A Member shall not settle or admit liability for any claim for which he may be insured by the Association without prior written consent of the Managers.
vi. In submitting a claim to the Association, the Member shall transfer to the Managers all necessary documents and assist the Managers in pursuing recovery against a third party in case of the third party liabilities or expenses being involved.
vii. The Managers shall have the right if they so decide:
(i) to control or direct the conduct of any claim or legal or other proceedings relating to any liability, loss,damage, costs or expenses in respect whereof the Member is or may be insured in whole or in part, and
(ii) to require the Member to settle, compromise or otherwise dispose of such claim or proceedings in such manner and upon such terms as the Managers see fit;
(iii) to pay the Member, in respect of the liabilities, costs or expenses which the Member is insured by the Association, the sum or sums converted from other currency into the currency in which the Member pays Calls or fixed premiums to the Association at the rate of exchange prevailing on the date when the Member first have discharged or paid the same.
viii. Measures taken by the Association to avoid or minimize liabilities, losses, damages, costs or expenses which would be recoverable under these Rules shall not be deemed as a waiver or admission of liability by the Association or otherwise as a constitution of an infringement of the right of the Association.
In the event that a Member commits any breach of his obligations referred to in sub-paragraphs [i] to [vi] above, unless and to the extent that the Directors in their discretion otherwise decide, the Managers may reject any claim by the Member against the Association arising out of the casualty, event or reduce the sum payable by the Association in respect thereof by such amount as they may determine.
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