RULES 2018 - Shipowners' Club

Transcription

RULES 2018

The Shipowners’ ClubAMENDMENTS TO THE RULES FOR 2018Members’ attention is drawn to the changes in the Rules for 2018. Amendments have beenmade to:Rule 1Basis of CoverRule 2Standard Cover:Section 1: Repatriation and substitutes’ expensesSection 10: TowageSection 14: Cargo LiabilitiesRule 6Legal Costs CoverRule 9Time BarRule 21ELimit of the Association’s Liability to CharterersRule 25Liability Excluded for War RisksRule 32Liabilities Excluded if Uncoverable from ReinsurersRule 35Survey of Vessels After Lay-UpRule 36AApplication for EntryRule 41Joint Entries and Co-AssuredsRule 43Assignment and SubrogationRule 45Termination by NoticeRule 50Liability for CallsRule 51Mutual CallsRule 54Payment of Calls and PremiumRule 62 Cooperation with Authorities in Relation to Breaches of Sanctions andFinancial CrimeRule 67DefinitionsAppendicesWar Risk Extension ClauseBio-Chemical Extension ClauseMaritime Labour Convention (MLC) Extension Clause 2016Full details of changes are set out in the circular ‘Notice of Extraordinary General MeetingThursday 11th January 2018’ issued on 29th November 2017. This can be viewed on ourwebsite: www.shipownersclub.com

CONTACT DETAILS

Luxembourg16, Rue Notre-DameL–2240 LuxembourgE: info@shipowners.luF: 352 22 97 10 22 2T: 352 22 97 10 1W: www.shipownersclub.comGeneral ManagerPascal HerrmannM: 352 621 298 102E: pascal.herrmann@shipowners.luGreeceBusiness Development ConsultantDimitris BatalisM: 30 6942 281535E: dimitris.batalis@shipownersclub.comBoard of DirectorsChairmanPhilip OrmeDubaiVice ChairmanDavid JamiesonUnited KingdomDirectorsTony BriggsAustraliaDonald A. MacLeodCanadaWilliam Everard, CBEUnited KingdomKathy MeadsNew ZealandAli GürünTurkeyDato’ Capt. Ahmad SufianMalaysiaDr. David Ho, JPHong KongDr. Yves WagnerLuxembourgAlfred HübnerChileIain Webb-WilsonUnited KingdomRichard KnightUnited KingdomMark WhitakerUnited Kingdom4 I Rules 2018 I www.shipownersclub.com

Management TeamChief ExecutiveSimon SwallowM: 44 7917 275798E: simon.swallow@shipownersclub.comClaims & Legal DirectorBritt PickeringM: 44 7703 254282E: britt.pickering@shipownersclub.comUnderwriting DirectorIan EdwardsM: 44 7917 725415E: ian.edwards@shipownersclub.comChief Financial OfficerSimon PeacockM: 44 7464 546122E: simon.peacock@shipownersclub.comCommercial DirectorSteve RandallM: 65 9221 6826E: steve.randall@shipownersclub.comChief Executive Singapore Branch- Regional Operations DirectorDavid HeaseldenM: 65 8366 3086E: david.heaselden@shipownersclub.comDirector – Loss PreventionLouise HallM: 44 7771 665655E: louise.hall@shipownersclub.comDirector & Chief ActuaryMarcus TarrantM: 44 7790 679336E: marcus.tarrant@shipownersclub.comDirector – Product DevelopmentIan FernsM: 44 7876 230589E: ian.ferns@shipownersclub.comContact Details I 5

London BranchThe Shipowners’ Protection LimitedWhite Chapel Building, 2nd Floor10 Whitechapel High StreetLondonE1 8QSE: info@shipownersclub.comF: 44 207 480 5806T: 44 207 488 0911Head of UnderwritingMark HarringtonM: 44 7876 252359E: mark.harrington@shipownersclub.comHead of ClaimsBen HarrisM: 44 7825 333367E: ben.harris@shipownersclub.comAmericas SyndicateUnderwritingDarren WebbM: 44 7469 852202E: darren.webb@shipownersclub.comClaimsIain CassellM: 44 7867 369892E: iain.cassell@shipownersclub.comPaul GrehanM: 44 7788 318351E: paul.grehan@shipownersclub.comNathaniel HardingM: 44 7467 147146E: nathaniel.harding@shipownersclub.comPhilip ThompsonM: 44 7780 956171E: philip.thompson@shipownersclub.comGiselle VillanuevaM: 44 7769 112986E: giselle.villanueva@shipownersclub.comOliver ShelmerdineM: 44 7795 598322E: oliver.shelmerdine@shipownersclub.comRobert ShearerM: 44 7788 318398E: robert.shearer@shipownersclub.comSusana RuizM: 44 7917 096346E: susana.ruiz@shipownersclub.com6 I Rules 2018 I www.shipownersclub.com

Europe & Africa SyndicateUnderwritingAdam HoweM: 44 7917 133671E: adam.howe@shipownersclub.comClaimsDaisy RaynerM: 44 7788 318401E: daisy.rayner@shipownersclub.comRupert CareyM: 44 7876 234455E: rupert.carey@shipownersclub.comShevan AlgamaM: 44 7900 611197E: shev.algama@shipownersclub.comRob CookM: 44 7725 731804E: rob.cook@shipownersclub.comMilly BrooksM: 44 7393 148316E: milly.brooks@shipownersclub.comMark GreenlandM: 44 7554 016106E: mark.greenland@shipownersclub.comMarius VitasM: 44 7802 813486E: marius.vitas@shipownersclub.comBertie DukeM: 44 7702 029256E: bertie.duke@shipownersclub.comMarie DidierM: 44 7464 545437E: marie.didier@shipownersclub.comElizabeth TobinM: 44 7464 546217E: elizabeth.tobin@shipownersclub.comSteven JohnM: 44 7467 147719E: steven.john@shipownersclub.comCharlie WeatherillM: 44 7387 023734E: charlie.weatherill@shipownersclub.comJoanne GoodallE: jo.goodall@shipownersclub.comContact Details I 7

Offshore SyndicateUnderwritingWilliam TobinM: 44 7876 347782E: william.tobin@shipownersclub.comClaimsAlexander McCookeM: 44 7798 747876E: alex.mccooke@shipownersclub.comSiewFun CassellM: 44 7584 575198E: siewfun.cassell@shipownersclub.comFiona PoundsT: 44 7392 081230E: fiona.pounds@shipownersclub.comJane FraserM: 44 7795 807361E: jane.fraser@shipownersclub.comJamie RobinsonM: 44 7818 425260E: jamie.robinson@shipownersclub.comJennifer DaddsM: 44 7823 776200E: jennifer.dadds@shipownersclub.comJames LawsonM: 44 7788 318394E: james.lawson@shipownersclub.comGabriel PickeringM: 44 7393 765927E: gabriel.pickering@shipownersclub.comPierre-Louis MererE: pierre-louis.merer@shipownersclub.comAlexander MillarM: 44 7392 090527E: alexander.millar@shipownersclub.com8 I Rules 2018 I www.shipownersclub.comLouise WrightE: louise.wright@shipownersclub.com

Yacht SyndicateUnderwritingNicola KingmanM: 44 7736 129220E: nicola.kingman@shipownersclub.comClaimsNicki ClarkeM: 44 7841 215626E: nicki.clarke@shipownersclub.comJames GargraveM: 44 7585 793633E: james.gargrave@shipownersclub.comVictoria AxtonM: 44 7387 023081E: victoria.axton@shipownersclub.comLoss PreventionDirector – Loss PreventionLouise HallM: 44 7771 665655E: louise.hall@shipownersclub.comCarri WoodburnM: 44 7392 081278E: carri.woodburn@shipownersclub.comSarah BerryM: 44 7788 238696E: sarah.berry@shipownersclub.comHayley GillE: hayley.gill@shipownersclub.comLegalClaims & Legal DirectorBritt PickeringM: 44 7703 254282E: britt.pickering@shipownersclub.comHead of LegalCamilla SlaterM: 44 7788 318242E: camilla.slater@shipownersclub.comContact Details I 9

Singapore Branch9 Temasek AvenueSuntec Tower 2, #22–02Singapore 038989E: info@shipownersclub.com.sgF: 65 6593 0449T: 65 6593 0420Chief Executive – Singapore Branch/Regional Operations DirectorDavid HeaseldenM: 65 8366 3086E: david.heaselden@shipownersclub.comCommercial DirectorSteve RandallM: 65 9221 6826E: steve.randall@shipownersclub.comHead of UnderwritingJeremy SlaterM: 65 8366 0768E: jeremy.slater@shipownersclub.comHead of ClaimsPaul SmitM: 65 8500 9532E: paul.smit@shipownersclub.comUnderwritingRobert HuntM: 65 8500 9528E: robert.hunt@shipownersclub.comClaimsGho Sze KeeM: 65 8366 6302E: sze.kee.gho@shipownersclub.comNeville SeetM: 65 8666 8441E: neville.seet@shipownersclub.comSurani de MelM: 65 8666 8440E: surani.demel@shipownersclub.comCelinne LimM: 65 8666 8443E: celinne.lim@shipownersclub.comMaggie-Jo McGregorM: 65 9099 8601E: maggie.jo@shipownersclub.comDolf NgM: 65 9687 6135E: dolf.ng@shipownersclub.comIndu ChitranM: 65 8444 6212E: indu.chitran@shipownersclub.comGary MachinM: 65 8444 6211E: gary.machin@shipownersclub.comGeorgia MaltezouM: 65 8500 9533E: georgia.maltezou@shipownersclub.comVivian LinM: 65 8715 8500E: vivian.lin@shipownersclub.comAshwin NairM: 65 8858 6301E: ashwin.nair@shipownersclub.comShayne TanM: 65 8683 6277E: shayne.tan@shipownersclub.comMadhavi AryaM: 65 8666 8442E: madhavi.arya@shipownersclub.comBrian LiewM: 65 8666 8445E: brian.liew@shipownersclub.comSerene OngM: 65 8484 8732E: serene.ong@shipownersclub.com10 I Rules 2018 I www.shipownersclub.com

Loss PreventionDirector – Loss PreventionLouise HallM: 44 7771 665655E: louise.hall@shipownersclub.comBhaskar NigamM: 65 8500 9531E: bhaskar.nigam@shipownersclub.comHarihar SubramaniamM: 65 9320 8728E: hari.subramaniam@shipownersclub.comHong Kong BranchSuite 1612 Lippo Centre Tower 289 Queensway AdmiraltyHong KongE: info@shipownersclub.comF: 852 2522 0977T: 852 2522 2118Chief ExecutiveAndrew LawM: 852 9289 0198 (HK) 86 159 8989 7382 (PRC)E: andrew.law@shipownersclub.comClaimsSherry ChenM: 852 9090 1153E: sherry.chen@shipownersclub.comCorrespondentsOur Members and brokers are supported by a global network of Correspondents who areavailable to provide practical, local advice and support. Contact details for all the Club’sCorrespondents can be found online at www.shipownersclub.com/correspondentsClaims EmergencyThe claims response service is available 24 hours a day, 7 days a week and provides immediateglobal assistance to all of our Members.Calling the emergency contact number provides a quick and effective way to speak directlyto a duty Shipowners’ claims handler in the event of an incident or casualty involving anentered vessel.During office hours the emergency number will redirect to the relevant correspondingoffice switchboard.London Branch 44 203 829 5858Singapore Branch/Hong Kong Branch 65 8683 3190Contact Details I 11

12 I Rules 2018 I www.shipownersclub.com

CONTENTS

Rules 2018CONTENTSPART 1INTRODUCTORY 19Rule 1Basis of Cover20PART 2P&I RISKS COVERED 25Rule 2Standard Cover26Section 1Section 2Section 3Section 4Section 5Section 6Section 7Section 8Section 9Section 10Section 11Section 12Section 13Section 14Section 15Section 16Section 17Section 18Section 19Section 20Section 21Section 22Rule 3Liabilities in respect of seafarersLiabilities in respect of passengersLiabilities in respect of persons other than seafarers or passengersDiversion expensesLiabilities and expenses in relation to deserters, stowaways and refugeesLiabilities for life salvageCollision with other vesselsLoss of or damage to propertyPollutionTowageLiability arising under certain indemnities and contractsWreck liabilitiesQuarantine expensesCargo liabilitiesUnrecoverable general average contributionsShip’s proportion of general averageProperty on board the insured vesselSpecial compensation to salvorsFinesInquiries and criminal proceedingsLiabilities and expenses incurred by direction of the ManagersSue and labour and legal costsSpecial 5Rule 4 Special Cover for Salvors, Charterers and Specialist Operations46Section 1Section 2Section 3464747Rule 5Salvors Charterers Specialist operations Omnibus Rule14 I Rules 2018 I www.shipownersclub.com47

Rules 2016CONTENTSPART 3 LEGAL COSTS COVER 49Rule 6Legal Costs Cover50PART 4CLAIMS PROCEDURES 55Rule 7Obligation to Sue and Labour56Rule 8Notification of Claims56Rule 9Time Bar57Rule 10Admission of Liability57Rule 11Effect of Breaches of Obligations in Rules 7, 8, 9 and 1057Rule 12Appointment of Lawyers and Other Persons57Rule 13Basis of Appointment58Rule 14 Powers of the Managers Relating to the Handling and Settlement of Claims 58Rule 15Bail59 PART 5LIMITATIONS AND EXCLUSIONS 61Rule 16Payment First by the Member62Rule 17No Liability Until Calls or Premium Paid62Rule 18Interest and Consequential Loss62Rule 19Set-off62Rule 20Deductibles62Rule 21ALimit of the Association’s Liability for Oil Pollution63Rule 21BLimit of the Association’s Liability for Overspill Claims63Rule 21C Limit of the Association’s Liability for Legal Costs Cover63Rule 21D Limit of the Association’s Liability in Connection with Passengers,Seafarers and Other Persons 64Rule 21ELimit of the Association’s Liability to Charterers64Rule 22Other Limitations of the Association’s Liability65Section 1Section 2General limitation Limitations for persons other than vessel owners 6565Rule 23Double Insurance65Rule 24Exclusion of Sums Insurable under Hull Policies65Contents I 15

PART 5LIMITATIONS AND EXCLUSIONS (CONTINUED) Rule 25 Liability Excluded for War Risks6166Rule 26Liability Excluded for Certain Nuclear Risks67Rule 27Miscellaneous Exclusions68Rule 28 Liabilities Excluded in Respect of Salvage Vessels, Drilling Vessels,Dredgers and Other Specialist Operations 69Rule 29Liabilities Excluded in Respect of Non-marine Personnel71Rule 30Liabilities Excluded if as a Result of Wilful Misconduct71Rule 31 Liabilities Excluded if Adventure Illegal, Hazardous or Improper71Rule 32 Liabilities Excluded if Unrecoverable from Reinsurers 72Rule 33Classification and Statutory Certification of Vessel72Rule 34Survey of Vessels and Management Audit73Rule 35Survey of Vessels After Lay-up74 PART 6 ENTRY FOR AND CESSER OF INSURANCE 77Rule 36AApplication for Entry78Rule 36BEntry78Rule 37Entered Tonnage: Base Rate of Contribution78Rule 38Certificate of Insurance and Endorsement Slip79Rule 39Period of Insurance79Rule 40Inception of Membership79Rule 41Joint Entries and Co-assureds80Rule 42Reinsurance82Rule 43Assignment and Subrogation83Rule 44Variation or Renewal of Terms84Rule 45Termination by Notice84Rule 46Cesser of Insurance85Rule 47Effects of Cesser of Insurance87Rule 48Cancellation of Insurance88Rule 49Effects of Cancellation of Insurance8816 I Rules 2018 I www.shipownersclub.com

PART 7CALLS, PREMIUM AND FINANCE 91Rule 50Liability for Calls92Rule 51Mutual Calls92Rule 52Additional Calls93Rule 53Overspill Calls, Claims and Guarantees93Section 1Section 2Section 3Section 4Section 5Section 6Section 7Introductory Recoverability of overspill claims Payment of overspill claims Overspill claims – expert determinations Levying of overspill calls Closing of policy years for overspill calls Security for overspill calls on termination or cesser 93939495979898Rule 54Payment of Calls99Rule 55Releases100Rule 56Laid-up Returns101Rule 57Reserves101Rule 58Closing of Policy Years102Rule 59Investment103 PART 8ADMINISTRATIVE PROCEDURES 105Rule 60Regulations106Rule 61Notices106Rule 62 Cooperation with Authorities in Relation to Breachesof Sanctions and Financial Crime 107Rule 63Membership of National and International Organisations107Rule 64Settlement of Claims107Rule 65Delegation108Rule 66Disputes Procedures108Rule 67Definitions108Contents I 17

APPENDICES 115War Risk Extension Clause116Bio-Chemical Extension Clause119Maritime Labour Convention (MLC) Extension Clause 2016 122NOTES TO THE RULES 125INDEX TO THE RULES 14518 I Rules 2018 I www.shipownersclub.com

PART 1INTRODUCTORYRule1PageBasis of Cover20

Rules 2018PART 1: INTRODUCTORYRULE 1BASIS OF COVER1All contracts of insurance afforded by the Association to its Members incorporateall the provisions of these Rules and any Regulations made hereunder.2The standard cover afforded by the Association to its Members is set out in Rule 2.3By virtue of Rules 3 and 4 a Member may be afforded special cover against risksother than those set out in Rule 2 provided that such special cover has beenagreed by the Managers in writing.4By virtue of Rule 6 a Member may be afforded Legal Assistance and Defencecover as specified in Rule 6 provided that such cover has been agreed by theManagers in writing.5The cover afforded by the Association under Rules 2, 3, 4 and 6 is always subjectto the procedures, limitations and exclusions set out in Parts 4 and 5 and in theremainder of these Rules unless otherwise agreed by the Managers in writing.6A Member is only covered against risks which arise:Aout of events occurring during the period of insurance of a vessel in the Association;Bin respect of the Member’s interest in the insured vessel; andCin connection with the operation of the insured vessel by or on behalf of the Member.7The cover afforded by the Association under Rules 2, 3, 4 and 6 is conditional onpayment of calls or premiums in accordance with Rules 50-55, unless otherwiseagreed by the Managers in writing.8No act, omission, course of dealing, forbearance, delay or indulgence by theAssociation in enforcing any of these Rules or any of the terms or conditions of itscontracts with Members nor any granting of time by the Association shallprejudice or affect the rights and remedies of the Association under these Rulesor under such contracts, and no such matter shall be treated as any evidence ofwaiver of the Association’s rights thereunder, nor shall any waiver of a breach by aMember of such Rules or contracts operate as a waiver of any subsequent breachthereof. The Association shall at all times and without notice be entitled to insist20 I Rule 1

on the strict application of these Rules and on the strict enforcement of itscontracts with Members.9Notwithstanding the provisions of Rule 16, where a Member has failed todischarge a legal liability to pay damages or compensation for personal injury,illness or death of a seafarer, the Association shall discharge or pay such claim onthe Member’s behalf directly to such seafarer or dependant thereof.Provided always thatit he seafarer or dependant has no enforceable right of recovery against anyother party and would otherwise be uncompensated,iit he amount payable by the Association shall under no circumstances exceedthe amount which the Member would have been able to recover from theAssociation under the Rules and the Member’s terms of entry,iii here the Association is under no liability to the Member in respect of thewclaim solely by reason of Rule 49 the Association shall nevertheless dischargeor pay the claim but as agent only of the Member, and the Member shall beliable to reimburse the Association for the full amount of such claim.10AAll contracts of insurance afforded by the Association to its Members and these Rulesand Regulations made hereunder shall be governed by and construed in accordancewith English law. In particular they are subject to and incorporate the MarineInsurance Act 1906 and upon its entry into force the Insurance Act 2015 save to theextent such Acts are modified or excluded by the Rules or by the terms of anycontracts of insurance.BThe following provisions of the Insurance Act 2015 (‘the Act’) are excluded from theRules and any contracts of insurance as follows: ection 8 of the Act is excluded. As a result any breach of the duty of fairSpresentation shall entitle the Association to avoid the policy, regardless ofwhether the breach of the duty of fair presentation is innocent, deliberate orreckless.ii ection 10 of the Act is excluded. As a result all warranties in these Rules orSany contracts of insurance must be strictly complied with and if the Memberand any joint Member or Co-assured fails to comply with any warranty theAssociation shall be discharged from liability from the date of the breach,regardless of whether the breach is subsequently remedied.Rule 1 I 21Introductoryi

Ciii ection 11 of the Act is excluded. As a result the Rules and all terms of theScontracts of insurance between the Association and the Member and anyjoint Member or Co-assured, including terms which tend to reduce the risk ofloss of a particular kind, loss at a particular location and/or loss at a particulartime, must be strictly complied with and if the Member and any joint Memberor Co-assured fails to comply with any such term, the Association’s liabilitymay be excluded, limited or discharged in accordance with these Rulesnotwithstanding that the breach could not have increased the risk of the losswhich actually occurred in the circumstances in which it occurred.iv ection 13 of the Act is excluded. As a result the Association shall be entitledSto exercise its right to terminate the contracts of insurance in respect of theMember and any joint Member or Co-assured in the event that a fraudulentclaim is submitted by or on behalf of the Member and/or joint Memberand/or Co-assured.v ection 13A of the Act is excluded. As a result the Rules and all contractsSbetween the Association and the Member and any insured shall not besubject to nor shall the Association be in bre

Iain Webb-Wilson United Kingdom Mark Whitaker United Kingdom Luxembourg 16, Rue Notre-Dame L–2240 Luxembourg E: info@shipowners.lu F: 352 22 97 10 22 2 T: 352 22 97 10 1 W: www.shipownersclub.com General Manager Pascal Herrmann M: 352 621 298 102 E: pascal.herrmann@shipowners.lu Greece Business Development Consultant Dimitris BatalisFile Size: 1MB