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Table of contents

APPENDIX I. ADDITIONAL INSURANCES

1 Introduction

Additional insurances set out in this Appendix shall be subject to the Rules for P&I and Defence cover of Ships and other floating structures (“the Rules”) save to the extent to which any of such Rules are inconsistent with the terms and conditions expressly agreed between the Member and the Association.

 

2 War risks

The Association has arranged an additional war risk insurance for the benefit of its Members.

 

Scope of cover

1 The special war risk P&I insurance will cover P&I risks set out in Part II,Chapter 1, of the Rules for Ships, caused by war risks as described in Rule 58 of the Rules for Ships, but subject always to special terms of entry agreed between the individual Association and the individual Member attached to or included in the Ship’s certificate of entry.

The cover is subject to a minimum deductible of USD 50,000 any one event each Ship.

Further, the cover includes liabilities arising from acts of terrorism as defined in the US Terrorism Risk Insurance Act 2002 as amended.

Details about additional premium for such liabilities will be sent out in a separate circular.

 

Notice of cancellation, automatic termination of cover and war and nuclear exclusion

2 The cover afforded is subject to Institute Notice of Cancellation, Automatic Termination of Cover and War and Nuclear Exclusion Clause, as set out below. The cover may be cancelled by the Managers giving seven days’ notice (such cancellation becoming effective on the expiry of seven days from midnight on the day on which notice of cancellation is issued by the Managers).

Whether or not such notice of cancellation has been given, cover shall terminate automatically:

i upon the outbreak of war (whether there be a declaration of war or not) between any of the following countries: United Kingdom, United States of America, France, The Russian Federation, the People’s Republic of China and this insurance excludes loss, damage, liability or expense arising from such outbreak of war;

ii in the event of the Entered Ship being requisitioned either for title or use and this insurance excludes loss, damage, liability or expense arising from such requisition;

 

Cover shall not become effective if, subsequent to acceptance by the Association and prior to the intended time of attachment of risk, there has occurred any event which would have automatically terminated cover under the provisions of this Rule.

 

TOPIA

3 The cover excludes loss, damage or expense arising from an act of terrorism which the Member may incur or for which the Member may be liable under TOPIA 2006.

 

Bio chem and computer virus

4 The Association shall not be liable for any losses, liabilities, costs or expenses directly or indirectly caused by or contributed to by or arising from:

i any chemical, biological, bio-chemical or electromagnetic weapon;

ii the use or operation, as a means for inflicting harm, of any computer virus;

iii Clause 4 (ii) above will not operate to exclude losses (which would otherwise be covered under the terms of this policy) arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missil.

However, the International Group has decided that the Bio-Chem Risks shall be covered through a special pooling facility, covering the Member’s liability in respect of:

i damages, compensation or expenses in consequence of personal injury to or illness or death of any seamen; and

ii for legal costs and expenses incurred solely for the purpose of avoiding or minimising any other P&I liability arising from a Bio-Chem Risk.

The limit of cover for the special insurance against the Bio-Chem risks is USD 30 million per Ship in the aggregate. The detailed terms and conditions of the Bio-Chem cover are available in the special Bio–Chem clause, as set out below.

 

Limitation of cover

5 The cover for owners is limited to USD 500 million any one event each Ship in excess of the proper value of the entered Ship or any amounts recoverable under any other P&I war risks cover which the Member has arranged, whichever is greater. The minimum excess is the proper value of the Ship determined in accordance with Rule 71.1(a) of the Rules for Ships or USD 100 million, whichever is the lesser.

6 Where there is more than one Owner’s Entry or Charterer’s Entry in respect of an Entered Ship with the Association or any other P&I Association which participates in the reinsurance arrangements of the International Group of P&I Clubs, the aggregate of all claims following an event brought against the Association and/or such other Association shall be limited to USD 500,000,000. In these circumstances, the limit of liability shall be such proportion of USD 500,000,000 as the claims recoverable under an Owner’s Entry or Charterer’s Entry in the Association bear to the aggregate of all the said claims recoverable under all Owner’s Entries and Charterer’s Entries in respect of that Ship with this or any other Association.

 

Institute notice of cancellation, automatic termination of cover and war and nuclear exclusions clause – hulls

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith

 

1 Cancellation

Cover hereunder in respect of the risks of war, etc. may be cancelled by either the Underwriters or the Assured giving 7 days’ notice (such cancellation becoming effective on the expiry of 7 days from midnight of the day on which notice of cancellation is issued by or to the Underwriters). The Underwriters agree however to reinstate cover subject to agreement between the Underwriters and the Assured prior to the expiry of such notice of cancellation as to new rate of premium and/or conditions and/warranties.

 

2 Automatic Termination of Cover

Whether or not such notice of cancellation has been given cover hereunder in respect of the risks of war, etc, shall TERMINATE AUTOMATICALLY

2.1 upon the outbreak of war (whether there be a declaration of war or not) between any of the following: United Kingdom, United States of America, France, the Russian Federation, the People’s Republic of China;

2.2 in respect of any Ship, in connection with which cover is granted hereunder, in the event of such Ship being requisitioned either for title or use.

 

3 Five Powers War and Nuclear Exclusions

This insurance excludes

3.1 loss damage liability or expense arising from;

3.1.1 the outbreak of war, whether there be a declaration of war or not, between any of the following: United Kingdom, United States of America, France, the Russian Federation, the People’s Republic of China;

3.1.2 requisition either for title or use

3.2 loss damage liability or expense directly or indirectly caused by or arising from

3.2.1 ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel

3.2.2 the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof

3.2.3 any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

 

4 Law and Practice

This clause is subject to English law and practice.

 

Bio-chem and computer virus clause

1.1 Subject to the terms and conditions and exclusions set out herein, cover is extended to include the liability of the Member:

a to pay damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman (including diversion expenses, repatriation and substitute expense and Shipwreck unemployment indemnity),

b for the legal costs and expenses incurred solely for the purpose of avoiding or minimising any liability or risk insured by the Association (other than under the Omnibus Rule)

1.2 where such liability would be recoverable under either

a cover provided by the Association for such liabilities, costs, losses and expenses as would be covered under the Rules for Ships but for the exclusion of war risks in Rule 58 of the Rules for Ships; or

b any other policy of insurance providing equivalent cover.

1.3 save only for the operation of an exclusion of liabilities, costs, losses and expenses directly or indirectly caused by or contributed to by or arising from

a any chemical, biological, biochemical or electromagnetic weapon

b the use or operation, as a means for inflicting harm, of any computer, computer system, computer software program, malicious code, computer virus or process or any other electronic system,

c Clause 1.3 (b) shall not operate to exclude losses (which would otherwise be covered under the terms of this policy) arising from the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.

1.4 other than liabilities, costs, losses and expenses arising from

a explosives or the methods of the detonation or attachment thereof

b the use of the entered Ship or its cargo as a means for inflicting harm, unless such cargo is a chemical or bio-chemical weapon

c the use of any computer, computer system or computer software program or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.

 

2 Excluded Areas

2.1 Unless and to the extent the Association may in their discretion otherwise decide, there shall be no recovery in respect of any liabilities, costs, losses and expenses directly or indirectly caused by or contributed to by or arising out of any event, accident or occurrence within the ports, places, zones or areas or during such period as are specified below:

2.2 At any time or times before, or at the commencement of, or during the Policy Year, the Association may by notice to the Member change, vary, extend, add to or otherwise alter the ports, places, countries, zones and periods specified in Clause 2.1 from a date and time specified by the Association not being less than 24 hours from midnight on the day the notice is given to the Member.

 

3 Cancellation

Cover hereunder may by notice to the Member be cancelled by the Association from a date and time specified by the Association, not being less than 24 hours from midnight on the day notice of cancellation is given to the Member.

 

3 Other additional insurances

The Association may on terms and conditions expressly agreed between the Member and the Association provide or assist in arranging other additional insurances for a number of liabilities or risks not covered under the Rules. Terms and Conditions for Additional Covers 2019 contains a catalgoue of various additional insurance products designed to supplement the standard P&I cover with a view to meet special needs. Further information about other additional insurances is available from the Association’s underwriting department.