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Rule 34 Limitation of liability and other restrictions in the right of recovery

1 Where the Member or a Co-assured is entitled to limit his liability pursuant to any rule of law, the maximum recovery is the amount to which the Member or the Co-assured may limit his liability save insofar as liabilities, losses, costs and expenses in excess of the amount to which the Member may limit his liability are incurred pursuant to a contract approved by the Association.

2 In any case, the liability of the Association for any and all liabilities, losses, costs and expenses incurred by all Members, Co-assureds and Affiliates insured under any one entry and which arise out of any one event shall be limited to the sum insured in the terms of entry, provided always that to the extent the Association has reinsured the risks insured under any one entry, the Association shall only be obliged to pay any amount in excess of USD 100 million per event as and when such funds are received by the Association from the reinsurer(s).

3 Notwithstanding Rule 34.2 above, the liability of the Association for fines as described in Rule 29 shall be limited to USD 50 million per Vessel per event provided that if the total amount of all categories of liabilities, losses, costs and expenses falling within Rule 29 and any other Rules incurred by all Members, Co- assureds and Affiliates under any one entry and which arise out of any one event exceeds the sum insured in the terms of entry referred to in Rule 34.2 above, the Association shall not be liable to make any payment in respect of the amount by which such claims exceed the sum insured  in the terms of entry referred to in Rule 34.2 above.