Table of contents
1 For the purposes of this Appendix IV, and without prejudice to anything else contained in these Rules for Ships, a “Passenger” shall mean a person carried onboard a ship under a contract of carriage or who, with the consent of the carrier, is accompanying a vehicle or live animals covered by a contract for the carriage of goods and a “Seaman” shall mean any other person onboard a ship who is not a Passenger.
2 Unless otherwise limited to a lesser sum, the Association’s aggregate liability arising under any one Owner’s Entry shall not exceed
i in respect of liability to Passengers USD 2,000,000,000 any one event; and
ii in respect of liability to Passengers and Seamen USD 3,000,000,000 any one event.
Provided always that:
Where there is more than one Owner’s Entry in respect of the same ship in the Association and/or or by any other association which participates in the Pooling Agreement
a the aggregate of claims in respect of liability to Passengers recoverable from the Association and or such other associations shall not exceed USD 2,000,000,000 any one event and the liability of the Association shall be limited to such proportion of that sum as the claim recoverable by such persons from the Association bears to the aggregate of all such claims otherwise recoverable from the Association and from all such associations;
b the aggregate of all claims in respect of liability to Passengers and Seamen recoverable from the Association and/or such other associations shall not exceed USD 3,000,000,000 any one event and the liability of the Association shall be limited:
i where claims in respect of liability to Passengers have been limited to USD 2,000,000,000 in accordance with proviso (a) to such proportion of the balance of USD 1,000,000,000 as the claims recoverable by such persons in respect of liability to Seamen bears to the aggregate of all such claims otherwise recoverable from the Association and all such associations; and
ii in all other cases, to such proportion of USD 3,000,000,000] as the claims recoverable by such persons in respect of liability to Passengers and Seamen bears to the aggregate of all such claims otherwise recoverable from the Association and all such associations.
3 The Association’s liability in respect of repatriation pursuant to Rule 27.3 shall be limited to an amount, per Ship per event, equal to the Club retention* under the Pooling Agreement in the Policy Year the event giving rise to the claim(s) occurred.1
* In the 2021 Policy Year the Club retention will amount to USD 10 million.
4. Maritime Labour Convention Extension Clause 2016
1 Subject only to the other provisions of this MLC Extension (“the Extension”), the Association shall discharge and pay on the Member’s behalf under the 2006 Maritime Labour Convention as amended (MLC 2006) or domestic legislation by a State Party implementing MLC 2006:
a Liabilities in respect of outstanding wages and repatriation of a seafarer together with costs and expenses incidental thereto in accordance with Regulation 2.5, Standard A2.5 and Guideline B2.5; and
b Liabilities in respect of compensating a seafarer for death or long-term disability in accordance with Regulation 4.2, Standard A4.2 and Guideline B4.2.
2 The Member shall reimburse the Association in full:
a any claim paid under paragraph 1(a) save to the extent that such claim is in respect of liabilities, costs or expenses recoverable under Rule 27.1 and 2; and
b any claim paid under paragraph 1(b) save to the extent that such claim is in respect of liabilities, costs or expenses recoverable under Rule 27. 1 and 2.
3 There shall be no payment under paragraph 1(a) or paragraph 1(b) if and to the extent that the liability, cost or expense is recoverable under any social security scheme or fund, separate insurance or any other similar arrangement.
4 The Association shall not discharge or pay any liabilities, costs or expenses under paragraph 1(a) or paragraph 1(b), irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the Member or the Member’s servants or agents, where such liabilities, costs or expenses were directly or indirectly caused by or contributed to by or arise from:
a Any chemical, biological, bio-chemical or electromagnetic weapon
b The use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, computer virus or process or any other electronic system.
5 a The Extension may be cancelled in respect of War Risks by the Association on 30 days’ notice to the Member (such cancellation becoming effective on the expiry of 30 days from midnight of the day on which notice of cancellation is issued).
b Whether or not such notice of cancellation has been given the Extension hereunder shall terminate automatically in respect of the War Risks:
i Upon the outbreak of war (whether there be a declaration of war or not) between any of the following:
United Kingdom, United States of America, France, the Russian Federation, the People’s Republic of China;
ii In respect of any ship, in connection with which cover is granted hereunder, in the event of such ship being requisitioned either for title or use.
c The Extension excludes loss, damage, liability or expense arising from:
i The outbreak of war (whether there be a declaration of war or not) between any of the following: the UK, the USA, France, The Russian Federation, the People’s Republic of China;
ii Requisition for title or use.
6 The Extension shall be subject to Rules 24.3, 25.4 and 77.2 and 3 and 73 in the Rules for Ships.
7 Without prejudice to paragraph 5, cover under the Extension shall cease 30 days after notice of termination in accordance with either Regulation 2.5, Standard A220.127.116.11 or Regulation 4.2, Standard A4.2.12.
8 Any dispute arising out of or in connection with the Extension shall be resolved in accordance with Rules 90 and 91.
9 For the purpose of the Extension:
“Member” means any insured party who is liable for the payment of calls, contributions, premium or other sums due under the terms of entry
“Seafarer” shall have the same meaning as in MLC 2006.
“War Risks” means the risks set out in Rule 58.
For further Guidance to Appendix IV see the Guidance to Rules 53 and 27.4.
1 For more detailed commentary see the Guidance to Rule 27.3.