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Rule 36 Collision with other ships

1 The Association shall cover liability to pay damages to any other person incurred as a result of a collision with another ship, if and to the extent that such liability is not covered under the Hull Policies on the Ship, including:

a)

i) one fourth of the liability incurred by the member; or
ii) four fourths, of such liability; or
iii) such other fraction of such liability as may be applicable and have been agreed with the Association;

b) that part of the Member's liability which exceeds the sum recoverable under the Hull Policies solely by reason of the fact that the liability exceeds the sums insured under those policies,

provided that:

i) the Member shall not be entitled to recover from the Association any deductible borne by him under the Hull Policies; and
ii) the cover under this Rule shall exclude liability in respect of persons or property on board the Ship.

2 Unless otherwise agreed between the Member and the Association as a term of the Ship's entry in the Association, if both ships are to blame, then where the liability of either or both of the ships in collision becomes limited by law, claims under Rule 36.1 shall be settled upon the principle of single liability, but in all other cases claims under this Rule shall be settled upon the principle of cross-liabilities, as if the owner of each ship had been compelled to pay the owner of the other ship such proportion of the latter's damages as may have been properly allowed in ascertaining the balance or sum payable by or to the Member in consequence of the collision.