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Table of contents

 Rule 2 The cover

 1 A Member shall be covered for such of the risks specified in Parts II, III and IV of these Rules as are agreed between the Member and the Association.

2 A Member with P&I cover shall be covered for such of the additional risks specified in Appendix I as are either

     a) expressed in Appendix I to be available to such a Member; or 

     b) expressly agreed between the Member and the Association.

Note: The risks specified in Appendix I are separately treated as they are excluded from the Pooling Agreement and are subject to a separate reinsurance programme.

3 The cover afforded by the Association to a Member shall be subject to the Articles of Association and to these Rules and to any special conditions agreed between the Association and the Member.

4 A Member is only covered in respect of liabilities, losses, costs and expenses incurred by him which arise

     a) in direct connection with the operation of or, in the case of Defence cover, acquisition or disposal of the Ship; and
     b) in respect of the Member's interest in the Ship; and
     c) out of events occurring during the period of entry of the Ship for the relevant risk in the Association.

5 Subject always to the provisions of Rule 2.4, the Association may in its absolute discretion exercise powers conferred in the Articles of Association to pay compensation in respect of a liability, loss, cost or expense which is not otherwise covered under these Rules.

6 It shall be a condition of Defence cover that the Ship has valid and subsisting P&I cover with the Association, except in the case of building or purchase contracts where there must be an undertaking by the Member to enter the Ship for P&I cover at the latest on taking delivery of the same.