Transcription
RULES 2016
The Shipowners’ ClubAMENDMENTS TO THE RULES FOR 2016Members’ attention is drawn to the changes in the Rules for 2016. Amendments have beenmade to:Rule 1Basis of CoverRule 2Standard Cover:Section 10: TowageSection 12: Wreck liabilitiesSection 14: Cargo liabilitiesRule 4Special Cover for Salvors, Charterers and Specialist OperationsPart 1: SalvorsPart 2: CharterersRule 25Liability Excluded for War, Bio-chem and Computer Virus RisksRule 28 Liabilities Excluded in Respect of Salvage Vessels, Drilling Vessels, Dredgersand Other Specialist OperationsRule 33Classification and Statutory Certification of VesselRule 34Survey of VesselsRule 36Application for EntryRule 46Cesser of InsuranceRule 56Laid-up ReturnsRule 66DefinitionsDeleted RuleRule 15Rules Subject to Marine Insurance ActNew RuleRule 36EntryFull details of changes are set out in the circular, Notice of Extraordinary General MeetingFriday 15th January 2016, issued on 27th November 2015. This can be viewed on our website:www.shipownersclub.com
CONTACT DETAILS
Claims 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 3190Luxembourg16, Rue Notre-DameL–2240 LuxembourgE: info@shipowners.luF: 352 22 97 10 22 2T: 352 22 97 10 1W: www.shipownersclub.com4 I Rules 2016 I www.shipownersclub.comGeneral ManagerPascal HerrmannM: 352 621 298 102E: pascal.herrmann@shipowners.lu
Board of DirectorsChairmanPhilip OrmeDubaiVice ChairmanDavid JamiesonUnited KingdomDirectorsTony BriggsAustraliaDonald A. MacLeodCanadaWilliam Everard, CBEUnited KingdomOng Kok WahSingaporeDr. David Ho, JPHong KongDato’ Capt. Ahmad SufianMalaysiaAlfred HübnerChileDr. Yves WagnerLuxembourgRichard KnightUnited KingdomIain Webb-WilsonUnited KingdomRodney LenthallUnited KingdomMark WhitakerUnited KingdomLim Teck ChengSingaporeManagement TeamChief ExecutiveSimon SwallowM: 44 7917 275798E: simon.swallow@shipownersclub.comClaims DirectorBritt PickeringM: 44 7703 254282E: britt.pickering@shipownersclub.comUnderwriting DirectorIan EdwardsM: 44 7917 725415E: ian.edwards@shipownersclub.comFinance DirectorLawrence AspinallM: 44 7919 897118E: lawrence.aspinall@shipownersclub.comCommercial DirectorSteve RandallM: 65 9221 6826E: steve.randall@shipownersclub.comChief Executive Singapore Branch– Regional Operations DirectorDavid HeaseldenM: 65 8366 3086E: david.heaselden@shipownersclub.comContact Details I 5
London BranchSt Clare House30–33 MinoriesLondon EC3N 1BPE: 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.comGreg FranklinM: 44 7741 311980E: greg.franklin@shipownersclub.comNathaniel HardingM: 44 7467 147146E: nathaniel.harding@shipownersclub.comPaul GrehanM: 44 7788 318351E: paul.grehan@shipownersclub.comSarah Twigger-ThompsonM: 44 7917 096346E: sarah.twigger-thompson@shipownersclub.comPhilip ThompsonM: 44 7780 956171E: philip.thompson@shipownersclub.com6 I Rules 2016 I www.shipownersclub.comGiselle VillanuevaM: 44 7769 112986E: giselle.villanueva@shipownersclub.com
Europe & Africa SyndicateUnderwritingAdam HoweM: 44 7917 133671E: adam.howe@shipownersclub.comClaimsJoelle RiallandM: 44 7788 318252E: joelle.rialland@shipownersclub.comRupert CareyM: 44 7876 234455E: rupert.carey@shipownersclub.comMudit SinghM: 44 7788 318398E: mudit.singh@shipownersclub.comPhillip MurrantM: 44 7795 598322E: phillip.murrant@shipownersclub.comNicola DyerM: 44 7464 549028E: nicola.dyer@shipownersclub.comRob CookM: 44 7725 731804E: rob.cook@shipownersclub.comJoanne GoodallM: 44 7469 851707E: jo.goodall@shipownersclub.comDimitris BatalisM: 44 7557 479284E: dimitris.batalis@shipownersclub.comShevan AlgamaM: 44 7900 611197E: shevan.algama@shipownersclub.comMark GreenlandM: 44 7554 016106E: mark.greenland@shipownersclub.comContact Details I 7
Offshore SyndicateUnderwritingWilliam TobinM: 44 7876 347782E: william.tobin@shipownersclub.comClaimsCamilla SlaterM: 44 7788 318242E: camilla.slater@shipownersclub.comHelen ToddM: 44 7917 524402E: helen.todd@shipownersclub.comAlexander McCookeM: 44 7798 747876E: alex.mccooke@shipownersclub.comSiewFun CassellM: 44 7584 575198E: siewfun.cassell@shipownersclub.comDaisy RaynerM: 44 7788 318401E: daisy.rayner@shipownersclub.comJennifer DaddsM: 44 7823 776200E: jennifer.dadds@shipownersclub.comLouise SellM: 44 7769 112942E: louise.sell@shipownersclub.comJoël MollT: 44 207 423 7124E: joel.moll@shipownersclub.comFiona PoundsT: 44 207 423 7137E: fiona.pounds@shipownersclub.comMatthew BevanM: 44 7789 985703E: matthew.bevan@shipownersclub.com8 I Rules 2016 I www.shipownersclub.com
Yacht SyndicateUnderwritingNicola KingmanM: 44 7736 129220E: nicola.kingman@shipownersclub.comClaimsNicki ClarkeM: 44 7841 215626E: nicki.clarke@shipownersclub.comJane FraserM: 44 7795 807361E: jane.fraser@shipownersclub.comLoss PreventionLouise HallM: 44 7771 665655E: louise.hall@shipownersclub.comHayley GillM: 44 7788 268064E: hayley.gill@shipownersclub.comJoseph MaguireM: 44 7788 238696E: joseph.maguire@shipownersclub.comBusiness and New Product DevelopmentIan FernsM: 44 7876 230589E: ian.ferns@shipownersclub.comContact Details I 9
Singapore Branch6 Temasek Boulevard#36–05 Suntec Tower 4Singapore 038986E: 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.comUnderwritingJeremy SlaterM: 65 8366 0768E: jeremy.slater@shipownersclub.comClaimsPaul SmitM: 65 8500 9532E: paul.smit@shipownersclub.comRobert HuntM: 65 8500 9528E: robert.hunt@shipownersclub.comGho Sze KeeM: 65 8366 6302E: sze.kee.gho@shipownersclub.comNeville SeetM: 65 8666 8441E: neville.seet@shipownersclub.comMike HammondM: 65 8366 3186E: mike.hammond@shipownersclub.comCelinne LimM: 65 8666 8443E: celinne.lim@shipownersclub.comIndu ChitranM: 65 8444 6212E: indu.chitran@shipownersclub.comDolf NgM: 65 9687 6135E: dolf.ng@shipownersclub.comSurani de MelM: 65 8666 8440E: surani.demel@shipownersclub.comGary MachinM: 65 8444 6211E: gary.machin@shipownersclub.comGeorgia MaltezouM: 65 8500 9533E: georgia.maltezou@shipownersclub.comRonny WaageM: 65 8666 8442E: ronny.waage@shipownersclub.comMaggie-Jo McGregorM: 65 9099 8601E: maggie.jo@shipownersclub.comVivian LinM: 65 8715 8500E: vivian.lin@shipownersclub.comSherry ChenM: 65 8500 9529E: sherry.chen@shipownersclub.comBrian LiewM: 65 8666 8445E: brian.liew@shipownersclub.comShayne TanM: 65 8683 6277E: shayne.tan@shipownersclub.com10 I Rules 2016 I www.shipownersclub.com
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.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/correspondents.Contact Details I 11
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CONTENTS
Rules 2016CONTENTSPART 1INTRODUCTORY 19Rule 1Basis of Cover20PART 2P&I RISKS COVERED 25Rule 2Standard Cover26Section 1Liabilities in respect of seafarersSection 2Liabilities in respect of passengersSection 3Liabilities in respect of persons other than seafarers or passengersSection 4Diversion expensesSection 5Liabilities and expenses in relation to deserters, stowaways and refugeesSection 6Liabilities for life salvageSection 7Collision with other vesselsSection 8Loss of or damage to propertySection 9PollutionSection 10TowageSection 11Liability arising under certain indemnities and contractsSection 12Wreck liabilitiesSection 13Quarantine expensesSection 14Cargo liabilitiesSection 15Unrecoverable general average contributionsSection 16Ship’s proportion of general averageSection 17Property on board the insured vesselSection 18Special compensation to salvorsSection 19FinesSection 20Inquiries and criminal proceedingsSection 21Liabilities and expenses incurred by direction of the ManagersSection 22Sue and labour and legal costsRule 3Special 5Rule 4 Special Cover for Salvors, Charterers and Specialist Operations46Rule 5Omnibus Rule47PART 3 LEGAL ASSISTANCE AND DEFENCE COVER 49Rule 6Legal Assistance and Defence Cover5014 I Rules 2016 I www.shipownersclub.com
Rules 2016CONTENTSPART 4CLAIMS PROCEDURES 55Rule 7Obligation to Sue and Labour56Rule 8Notification of Claims56Rule 9Admission of Liability57Rule 10Effect of Breaches of Obligations in Rules 7, 8 and 957Rule 11Appointment of Lawyers and Other Persons57Rule 12Basis of Appointment57Rule 13 Powers of the Managers Relating to the Handling and Settlement of Claims57Rule 14Bail58 PART 5LIMITATIONS AND EXCLUSIONS 59Rule 15Blank60Rule 16Payment First by the Member60Rule 17No Liability Until Calls Paid60Rule 18Interest and Consequential Loss60Rule 19Set-off60Rule 20Deductibles60Rule 21ALimit of the Association’s Liability for Oil Pollution61Rule 21BLimit of the Association’s Liability for Overspill Claims61Rule 21C Limit of the Association’s Liability for Legal Assistance and Defence Claims62Rule 21D Limit of the Association’s Liability in Connection with Passengers,Seafarers and Other Persons 62Rule 21ELimit of the Association’s Liability to Charterers62Rule 22Other Limitations of the Association’s Liability63Rule 23Double Insurance63Rule 24Exclusion of Sums Insurable under Hull Policies64Rule 25 Liability Excluded for War, Bio-chem and Computer Virus Risks64Rule 26Liability Excluded for Certain Nuclear Risks66Rule 27Miscellaneous Exclusions66Rule 28 Liabilities Excluded in Respect of Salvage Vessels, Drilling Vessels,Dredgers and Other Specialist Operations 67Contents I 15
PART 5LIMITATIONS AND EXCLUSIONS (CONTINUED) 59Rule 29Liabilities Excluded in Respect of Non-marine Personnel70Rule 30Liabilities Excluded if as a Result of Wilful Misconduct70Rule 31 Liabilities Excluded if Adventure Illegal, Hazardous or Improper70Rule 32 Liabilities Excluded if Unrecoverable from reinsurers as a Consequenceof Sanctions, Prohibitions or Restrictions under UN resolutions or Tradeor Economic Sanctions, Laws or Regulations of the European Union,UK or United States of America 70Rule 33Classification and Statutory Certification of VesselRule 34Survey of Vessels and Management Audit72Rule 35Survey of Vessels After Lay-up73PART 6 ENTRY FOR AND CESSER OF INSURANCE 75Rule 36aApplication for Entry76Rule 36bEntry76Rule 37Entered Tonnage: Base Rate of Contribution77Rule 38Certificate of Insurance and Endorsement Slip77Rule 39Period of Insurance77Rule 40Inception of Membership78Rule 41Joint Entries and Co-assureds78Rule 42Reinsurance79Rule 43Assignment80Rule 44Variation or Renewal of Terms80Rule 45Termination by Notice81Rule 46Cesser of Insurance81Rule 47Effects of Cesser of Insurance83Rule 48Cancellation of Insurance84Rule 49Effects of Cancellation of Insurance8516 I Rules 2016 I www.shipownersclub.com71
PART 7CALLS AND FINANCE 87Rule 50Liability for Calls88Rule 51Mutual Calls88Rule 52Additional Calls89Rule 53Overspill Calls, Claims and Guarantees89Rule 54Payment of Calls95Rule 55Releases96Rule 56Laid-up Returns97Rule 57Reserves97Rule 58Closing of Policy YearsRule 59InvestmentPART 8ADMINISTRATIVE PROCEDURES 101Rule 60Regulations102Rule 61Notices102Rule 62Membership of National and International Organisations103Rule 63Settlement of Claims103Rule 64Delegation104Rule 65Disputes Procedures104Rule 66Definitions104NOTES TO THE RULES 109INDEX TO THE RULES 12998100Contents I 17
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PART 1INTRODUCTORYRule1PageBasis of Cover20
Rules 2016PART 1: INTRODUCTORYRULE 1BASIS OF COVER1 ll contracts of insurance afforded by the Association to its Members incorporateAall 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 2.3 y virtue of Rules 3 and 4 a Member may be afforded special cover against risksBother than those set out in Rule 2 provided that such special cover has beenagreed by the Managers in writing.4 y virtue of Rule 6 a Member may be afforded Legal Assistance and DefenceBcover as specified in Rule 6 provided that such cover has been agreed by theManagers in writing.5T he 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:A out 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; andC in connection with the operation of the insured vessel by or on behalf of the Member.7T he cover afforded by the Association under Rules 2, 3, 4 and 6 is conditional onpayment of calls or premiums in accordance with Rules 49 to 54 unless otherwiseagreed by the Managers in writing.8 o act, omission, course of dealing, forbearance, delay or indulgence by the AssociationNin enforcing any of these Rules or any of the terms or conditions of its contracts withMembers nor any granting of time by the Association shall prejudice or affect therights and remedies of the Association under these Rules or under such contracts,and no such matter shall be treated as any evidence of waiver of the Association’srights thereunder, nor shall any waiver of a breach by a Member of such Rules or20 I Rule 1Part 1
contracts operate as a waiver of any subsequent breach thereof. The Associationshall at all times and without notice be entitled to insist on the strict applicationof these Rules and on the strict enforcement of its contracts with Members.9 otwithstanding the provisions of Rule 16, where a Member has failed to dischargeNa legal liability to pay damages or compensation for personal injury, illness or deathof a seafarer, the Association shall discharge or pay such claim on the Member’sbehalf directly to such seafarer or dependant thereof.Provided always that10it 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 circumstancesexceed the amount which the Member would have been able to recoverfrom the Association 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. otwithstanding the provisions of Rule 16, where a Member has failed to dischargeNa legal liability in respect of repatriation under any statutory enactment giving effectto the 2006 Maritime Labour Convention the Association shall discharge suchliability on the Member’s behalf.Provided always thatt he amount payable by the Association in discharging such liability shall underno circumstances exceed the amount which the Member would have beenable to recover from the Association under the Rules and the Member’sterms of entry,ii here the Association is under no liability to the Member in respect of thewclaim solely by reason of Rule 49 the Association shall nevertheless dischargesuch liability but as agent only of the Member, and the Member shall be liableto reimburse the Association for the full amount of such claim.Rule 1 I 21IntroductoryPart 1i
11A ll contracts of insurance afforded by the Association to its Members and theseARules and Regulations made hereunder shall be governed by and construed inaccordance with English law. In particular they are subject to and incorporate theMarine Insurance Act 1906 and upon its entry into force the Insurance Act 2015save to the extent such Acts are modified or excluded by the Rules or by the termsof any contracts of insurance.BT he following provisions of the Insurance Act 2015 (‘the Act’) are excluded fromthe Rules and any contracts of insurance as follows:i 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, deliberateor reckless.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.iii 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 riskof loss 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 theloss which 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.22 I Rule 1Part 1
C 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 be subjectto nor shall the Association be in breach of any implied term that it will payany sums due in respect of any claim within a reasonable time save wherethe breach is deliberate or reckless and Section 13A of the Act is excludedto this extent.vi ection 14 of the Act is excluded. As a result, the contracts of insuranceSbetween the Association, the Member and any joint Member or Co-assuredshall be deemed to be contracts of the utmost good faith, and any breach ofthe duty of the utmost good faith shall entitle the Association to avoid thecontract of insurance. ave as provided in Rule 1.9, the cover provided by the Association as set out in theseSRules is solely for the benefit of the Member. It is not intended, save as provided inRule 1.9, that rights should be acquired by any third party through the operation ofthe Contracts (Rights of
Iain Webb-Wilson United Kingdom Mark Whitaker United Kingdom Management Team Chief Executive Simon Swallow M: 44 7917 275798 E: simon.swallow@shipownersclub.com Underwriting Director Ian Edwards M: 44 7917 725415 E: ian.edwards@shipownersclub.com Commercial Director Steve Randall M: 65
