Appendix V Deductibles

Appendix V Deductibles

1 Introduction

a The Association’s standard deductibles shall be as set out in this Appendix. However, readers are warned that the standard deductibles are subject to annual review by the board of Directors. Consequently, readers are urged to consult the Gard website to check the then level of deductibles at the time of the particular consultation.

b For the purposes of this Appendix, the Association shall determine in its absolute discretion under which Rule any particular liability, loss, cost or expense is covered. 

2 P&I entries

a The standard deductibles for liabilities, losses, costs and expenses incurred by all the assured under any one P&I entry are as follows (subject to paragraphs 2(b) and (c) below):

i CrewAll liabilities, cost and expenses covered under Rule 27, and arising out of any one event USD 7,000.

ii Passengers and others carried on boardAll liabilities, costs and expenses covered under Rules 28 or 29 and arising out of any one event: USD 7,000.

iii CargoAll liabilities, costs and expenses covered under Rule 34 and arising out of any one cargo carrying voyage: USD 19,000.

iv PollutionAll liabilities, losses, costs and expenses covered under Rule 38 and arising out of any one event: USD 19,000.

v FinesAll liabilities, losses, costs and expenses covered under Rule 47 and arising out of any one event: USD 19,000.

vi Collision with other ships and damage to fixed or floating objectsAll liabilities, losses, costs and expenses covered under Rule 36,1, a) and Rule 37 a) and arising out of any one event: USD 24,000.

vii Diversion All liabilities, costs and expenses covered under Rule 31 and arising out of any one event: USD 0. 

vii Other P&I liabilities etc.All liabilities, losses, costs and expenses covered under any Rule, other than Rule 27, 28, 29, 31, 34, 36.1.a, 37.a, 38 and 47 and arising out of any one event: USD 7,000, save that deductible(s) in relation to liabilities, losses, costs and expenses covered under  Rule 32 shall not apply when the Member has incurred the relevant liabilities, losses, costs and expenses due to having persons saved at sea on board. 

b For the purpose of applying a deductible under this paragraph 2 there shall be added to the relevant liabilities, losses, costs and expenses (‘the relevant liabilities’) as described in sub-paragraph (a) above the amount of any losses, costs and expenses which are covered under any of Rules 44, 45 and 46 and which are incurred in relation to the relevant liabilities. 

c Where it is agreed in the terms of P&I entry that a separate deductible shall apply in respect of a particular category (but not all) of the liabilities, losses, costs or expenses referred to in any of paragraphs 2 (a) (i) to 2 (a) (vii) above, that separate deductible shall apply to all liabilities, losses, costs or expenses within that category and the standard deductible shall apply to all other liabilities, losses, costs or expenses covered under the same Rule or Rules and arising out of the same event or cargo carrying voyage. 

3 Defence entries

a The standard deductible for all legal and other costs covered under Rules 65 and 66 and incurred by all the assured under any one Defence entry and arising out of any one event shall be 25 per cent of the legal and other costs incurred, subject to a minimum deductible of USD 5,000.

b The Association shall determine in its absolute discretion in respect of Defence cover whether legal and other costs and expenses have arisen out of one or several events, irrespective of whether one or several Ships are involved.

Guidance

For further Guidance to Appendix V see the Guidance to Rule 76.