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Rule 27 Liabilities in respect of Crew

1 The Association shall cover:

a) liability to pay hospital, medical, maintenance, funeral and other costs and expenses incurred in relation to the injury to, or illness or death of, a member of the Crew, including costs and expenses of repatriating the member of the Crew and his personal effects, or sending home an urn of ashes or coffin and personal effects in the case of death, and costs and expenses necessarily incurred in sending a substitute to replace the repatriated or dead man;
b) liability to repatriate and compensate a member of the Crew for the loss of his employment caused in consequence of the actual or constructive total loss of the Ship or of a major casualty rendering the Ship unseaworthy and necessitating the signing off of the Crew;
c) liability to pay compensation or damages in relation to the injury to, or illness or death of, a member of the Crew;
d) liability for costs and expenses of travelling incurred by a member of the Crew when the travelling is occasioned by a close relative having died or become seriously ill after the Crew member signed on, and costs and expenses necessarily incurred in sending a substitute to replace that Crew member;
e) liability for wages payable to an injured or sick member of the Crew or on death to his estate;
f) liability in respect of loss of or damage to the personal effects of a Crew member,

provided that under this Rule 27.1:

i) where the liability arises under the terms of a crew agreement or other contract of service or employment, and would not have arisen but for those terms, the liability is not covered by the Association unless those terms have been previously approved by the Association;
ii) there shall be no recovery in relation to liability which arises under a contract of indemnity or guarantee between the Member and a third party;
iii) the cover shall not include liabilities, costs or expenses arising out of the carriage of specie, bullion, precious or rare metals or stones, plate or other objects of a rare or precious nature, bank notes or other forms of currency, bonds or other negotiable instruments, whether the value is declared or not, unless the Association has been notified prior to any such carriage, and any directions made by the Association have been complied with.
iv) references to personal effects shall exclude valuables and any other article which in the opinion of the Association is not an essential requirement of a Crew member.

2 The Association shall cover:

a) costs and expenses which are not recoverable under Rule 27.1 and which are necessarily incurred in sending a substitute to replace a member of the Crew who has been left behind;
b) costs and expenses which are not recoverable under Rule 27.1, which are necessarily incurred under a statutory obligation in repatriating a member of the Crew of the Ship and in sending a substitute to replace him and which would not have been incurred had there been no such statutory obligation; and
c) costs and expenses incurred as a direct consequence of complying with an order for the deportation of a member of the Crew and in sending a substitute to replace him which would not have been incurred had no such order been made,

provided that such costs or expenses as are referred to in paragraphs (a), (b) and (c) do not arise out of or in consequence of:

i) the termination of any agreement; or
ii) breach by the Member of any agreement or other contract of service or employment; or
iii) sale of the Ship; or
iv) any other act of the Member in respect of the Ship.

3 The Association shall cover liability to repatriate a member of the Crew pursuant to any statutory enactment giving effect to the Maritime Labour Convention 2006 or any materially similar enactment, provided always that there shall be no recovery in respect of liabilities arising out of the termination of any agreement, or the sale of the Ship, or any other act of the Member in respect of the Ship, save and to the extent permitted by this Rule 27.3 in respect of the Member’s liability for such expense under the Maritime Labour Convention 2006.

4 Where the Association has issued to a Member certificates of insurance or other financial security in respect of shipowners’ liability as required under Regulation 4.2, Standard A4.2.1 paragraph 1 (b) or Regulation 2.5 Standard A2.5.2 of the Maritime Labour Convention 2006 as amended (MLC Certificates), the Association shall discharge and pay on behalf of the Member the liabilities, losses, costs and expenses set out in and subject to the conditions in the Maritime Labour Convention Extension Clause 2016 included in Appendix IV, section 4, to these Rules. The terms and conditions of the Maritime Labour Convention Extension Clause 2016 shall be deemed to be part of the contract of insurance with a Member upon the approval by the Association of a Member’s application for MLC Certificates.