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Rule 40 Other excluded losses

1 The Association shall not cover, except (in the case of paragraphs (a)-(d) below) where and to the extent that they form part of a claim recoverable under Rule 32:

a) loss of or damage to the Vessel, its equipment, outfit or supplies, used on board or outside the Vessel;

b) loss of hire due to the Member;

c) costs of salvage or services in the nature of salvage, rendered to the Vessel and any costs or expenses in connection therewith, except to the extent that they form part of a claim recoverable under Rule 28 (Salvage);

d) liabilities, losses, costs or expenses arising out of cancellation of a charter or other engagement of the Vessel;

e) liabilities, losses, costs or expenses arising out of the insolvency of the Member or any other person or out of overdue or irrecoverable debts or out of any of the circumstances described in Rules 17.1(a) or (b);

f) the Member's internal administrative costs and expenses.

2 Unless and to the extent that the Association in its sole discretion shall otherwise decide, any liability, loss, damage, cost or expense, including, without limitation, liability for the cost of any remedial works or clean-up operations, arising as a result of the presence in, or the escape or discharge or threat of escape or discharge from, any land based dump, site storage or disposal facility of any substance previously carried on the Vessel whether as cargo, fuel, stores or waste and whether at any time mixed in whole or in part with any other substance whatsoever.