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Table of contents

Appendix II Charterers limits including special limit for Consortium Claims

1 Introduction
The cover afforded under Charterer’s Entries and to charterers co-assured under Owner’s Entries as described in Rule 78.4 is limited pursuant to Rule 52 in accordance with this Appendix II.  

2 Charterers co-assured under an Owner’s Entry
Cover afforded in respect of charterers co-assured under an Owner’s Entry as described in Rule 78.4 is limited each incident or occurrence each entry to whichever is the lesser of the Limitation Amount (if any) and USD 350 million. Any reference in this Appendix II, section 2, to the ’Limitation Amount’ means the amount to which the registered owner of the Ship could have limited its liability in the respect of the relevant matter had the registered owner of the Ship sought and not been denied the right to limit.

3 Charterers’ Entry – all categories of claims
Subject to the provisions in section 4 below, the cover afforded to all assured under a Charterer’s Entry in respect of all liabilities, losses, costs or expenses falling within Part II, chapter 1 of the Rules, is limited each incident or occurrence each entry each Ship to USD 350 million.

4 Oil pollution – salvage

a Where the Ship provides salvage or other assistance to another ship following a casualty, a claim by the Member in respect of oil pollution arising out of the salvage, the assistance or the casualty shall be aggregated with any claim or claims for liabilities, losses, costs or expenses incurred in respect of oil pollution by any other ship(s) similarly engaged in connection with the same casualty when such other ship(s) are either:

i insured by the Association in respect of oil pollution under Charterer’s Entries; or

ii covered for those risks under Charterer’s Entries with any other association which participates in the Pooling Agreement.

In such circumstances the limit of liability of the Association shall be such proportion of the sum set out in section (b) below as the claim by the Member bears to the aggregate of all the said claims.

b Where a Ship is separately insured under more than one Charterer’s Entries with the Association or with the Association and any other association(s) which participate(s) in the Pooling Agreement, the aggregate of all claims for oil pollution brought against the Association and/or such other association(s) following an incident or occurrence shall be limited to USD 350 million. The liability of the Association in respect of each such claim shall be limited to that proportion of USD 350 million that that claim bears to the aggregate of the claims against the Association or the Association and such other association(s), if any.

5 Consortium vessels

5.1 Definitions
For the purpose of this section 5 to Appendix II to the Rules for Ships, the following words and expressions shall have the following meanings:

Consortium Agreement
any arrangement under which a Member agrees with other parties to the reciprocal exchange or sharing of cargo space on the Ship and Consortium Vessels.

Consortium Claim
means a claim as described in sub- paragraph 5.2 of this section 5 to Appendix II to the Rules for Ships.

Consortium Vessel
means a ship, feeder vessel or space thereon, not being the Ship, employed to carry cargo under a Consortium Agreement.

5.2 Consortium Claims
A claim shall be a Consortium Claim where:

a it arises under a P&I entry of a Ship; and

b it arises out of the carriage of cargo on a Consortium Vessel; and

c that the Member and the operator of the Consortium Vessel are parties to a Consortium Agreement; and

d at the time cover pursuant to the special provisions in this section 5 initially attaches, the Member employs a Ship pursuant to that Consortium Agreement.

For the purpose of a Consortium Claim under this Appendix II to the Rules for Ships, the Consortium Vessel shall be treated as a Ship entered on behalf of the Member under a Charterer’s Entry in the Association.

5.3 Allocation of Consortium Claims
Where a Ship under an Owners’ Entry and a Ship under a Charterer’s Entry are both employed by the Member pursuant to a Consortium Agreement at the time of the event giving rise to the Consortium Claim occurs, the Consortium Claim of the Member shall for the purpose of these Rules be treated as a claim arising in respect of the Owner’s Entry of the Member.

5.4 Aggregation

a Where the Member has more than one ship employed pursuant to the Consortium Agreement at the time the event giving rise to a Consortium Claim occurs, all such ships shall be deemed to be an Entry of one Ship.

bWhere a Member employs one or more ships pursuant to the Consortium Agreement at the time the event giving rise to a Consortium Claim occurs and the Member has an entry in respect of such ships in the Association and another association which is a party to the Pooling Agreement

i each such ship shall be deemed to be a part entry of one ship in the Association and the other association(s) which is a party to the Pooling Agreement, and

ii where the Consortium Claims incurred by the Association and the other association(s) in respect of the Ship arising from that event out of the carriage of cargo on a Consortium Vessel in the aggregate exceed the sum specified in paragraph 5 below, the liability of the Association for such Consortium Claims shall be limited to that proportion of the sum specified in paragraph 5 below that the Consortium Claims recoverable from the Association in respect of each part entry bears to the aggregate of all the Consortium Claims incurred by the Association and any other association which is a party to the Pooling Agreement.

5.5 Limit of insurance
The cover afforded for a Consortium Claim is limited pursuant to Rule 52 to USD 350 million each incident or occurrence in respect of all ships under any and all P&I entries of a Member in the Association and any other association which is a party to the Pooling Agreement.

 

Guidance

For further Guidance to Appendix II see the Guidance to Rule 52.

(A) ...Charterers co-assured under an Owner’s Entry
This section reflects the wording of the Pooling Agreement and provides in effect for one combined single limit of USD 350 million per incident or occurrence per entry for both pollution and non-pollution claims.