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03INTRODUCTION

enG

ruleS Book2014

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GeneRAlTurk P ve i sigorta A.s. Adress: Muhittin Ustundag Cad. No:21 Kosuyolu – Kadıkoy Istanbul / Turkiye Telephone: 0090 216 545 03 00 Fax: 0090 216 545 03 01 E-mail: info@turkpandi.com

GeneRAl MAnAGeR Mr. Remzi Ufuk Teker Telephone: 0090 216 545 03 00 Mobile: 0090 533 767 86 44 E-mail: ufuk.teker@turkpandi.com

AssisTAnT GeneRAl MAnAGeR / FinAnCe Mr. dr. Abdullah kara Telephone: 0090 216 545 03 00 Mobile: 0090 533 638 61 41 E-mail: abdullah.kara@turkpandi.com

UndeRwRiTinG Mr. Umut Can Telephone: 0090 216 545 03 00 Mobile: 0090 530 391 11 49 E-mail: umut.can@turkpandi.com

ClAiM Ms. Burcu Berrak Telephone: 0090 216 545 03 00 Mobile: 0090 533 354 16 58 E-mail: burcu.berrak@turkpandi.com

loSS PreVenTIon Mr. Cpt. deger Pamuk Telephone: 0090 216 545 03 00 Mobile: 0090 533 795 54 02 E-mail: deger.pamuk@turkpandi.com

TeAM AdMInISTrATor Ms. Tugce Gencalp Telephone: 0090 216 545 03 00 Mobile: 0090 533 293 55 11 E-mail: tugce.gencalp@turkpandi.com

ACCoUnTAnT Mr. serkan koc Telephone: 0090 216 545 03 00 Mobile: 0090 538 445 60 61 E-mail: serkan.koc@turkpandi.com

CredIT ConTrol wMs. Jale Inan Telephone: 0090 216 545 03 00 Mobile: 0090 533 529 20 74 E-mail: jale.inan@turkpandi.com

ConTACT

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deFInITIonS 48

SeCTIon A: InSUrAnCe 52

SeCTIon B: SCoPe oF CoVer 53

SeCTIon C: rISkS CoVered 54

Crew Injury, Illness or deathRepatriation Substitute expenses loss of effectsShipwreck Unemployment Indemnity Port expensesPassengersThird Parties Stowaways and refugees Port Charges life salvageCollisions with other Shipsdamage to other Ships ( other than by collision ) Pollution damage to Property ( other than by collision ) Towage of The shipTowage by The ShipWreck liabilitiesQuarantine expensesCargo liabilitiesUnrecoverable General Average ContributionsShip’s Proportion of General AverageFinesenquiry expensesInterference by lawful AuthoritiesConfiscation of Ship by Customs Authoritiessue and labour

SeCTIon d: eXClUded rISkS 61

risk Covered by Hull And War risks Policiesdouble InsuranceWar risksRadioactive ContamniationGuarantees, Undertakings and Certificates Unlawful Sanctionable and Hazardous Trades

SeCTIon e: eXClUded loSSeS 63

Hull damageequipment damagerepairsloss of HiredetentionCancellationBad debtsPollutionsalvageSpecialist operationsdrilling and Production operationsHeavy lift ShipsSubmarine diversnon-Marine PersonnelWaste disposalPaperless Trading

IndeX

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IndeX

SeCTIon F: SCoPe oF reCoVerY lIMITS 66net losslimits of recoveryAssured’s PropertyAmounts owing to the InsurerInterestPay to be PaiddeductiblesWilful Misconductobligation to Sue and labourwaiver of subrogationSanctions

SeCTIon G: oBlIGATIonS WITH reGArd To ClAIMS 69notificationdocumentationdevelopmentssettlementrecoveryevidencePowers of the Insurer relating To The Handling of Claimseffect of non-ComplianceSecurity

SeCTIon H: APPlICATIon And enTrY 71Applicationentryimmediate TerminationCertificates of entryJoint AssuredsCo-AssuredsInsured PartiesCharterer named as Joint Assured or Co-AssuredGroup entriesBridge of WarrantyAssignment

SeCTIon I: SHIP STAndArdS And SUrVeYS 74Classification and Condition of Shipsentry Surveysroutine or Claim Surveys and reviewsSurveys Following lay-Upeffect on Terms of entryeffect on non-Compliance

SeCTIon J: PerIod oF InSUrAnCe 75Policy YearInsurers noticePro-Rata PremiumCessation of InsuranceCancellation of Insuranceeffect of Cessation of Insuranceeffect of Cancellation of Insurance

SeCTIon k: PreMIUMS 77Premiumlaid-Up returnsPaymentlien

SeCTIon l: GenerAl TerMS And CondITIonS 78Powers of Board and Insurersdisclosurenoticeslaw and Jurisdiction

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In the rules the following words and expressions have the following meanings:

The Rules: theP&Iclassrulesoftheinsurerforthetimebeinginforce.

The Articles: thearticlesforthetimebeingoftheinsurer.

The Insurer: TURKPVEISIGORTAA.S.

Affiliated or Associated Charterer: whereboththeassuredorajointassuredandthechartererareundercommonowner-

shiportheassuredorajointassuredorthechartererrespectivelyeitherownsatleast50%ofthesharesinandvotingrightsoftheothersorownsaminorityofthesharesintheothersandcanprocurethatitismanagedandoperatedinaccordancewithitswishes.

Applicant: anypersonseekingtoenterashiponhisownoranother’sbehalforonwhosebehalfanapplicationismade.

Assured: everyownerorotherpersonwhobecomesandisforthetimebeinganassuredoftheinsurer.

Cabotage Trade: anysinglevoyagebetweentwoTurkishports,regardlessoftheroutechosenbytheassured.

Cargo: goods(otherthanacontainersuppliedbyoronbehalfofanassured)carriedunderacontractofcarriage.

Certificate of Entry: adocumentissuedpursuanttorule12.1includinganyendorsementthereto.

Co-assured: anypersonorpersonsotherthananassuredor jointassured,namedonthecer-tificateofentryinrespectofanassured’sentryinaccordancewithandsubjecttorules13.5–13.7.

Container: anydeviceorreceptacleinoronwhichcargoiscarriedandwhichiseitherdesignedtobe,orexpectedtobe,carriedintheship.

Crew: anypersonemployedaspartofaship’scomplementunderthetermsofacrewagree-mentorothercontractofserviceoremploymenttoserveonboardtheship,whetherornotonboardthatship.

Demise or Bareboat Charterer: achartererwhohassolepossessionoftheshipandsolecontrolofhermanagement

andcrew.

Effects: includesclothes,documents,navigationandothertechnicalinstrumentsandtools,butdoesnotincludevaluables.

Fines: includespenaltiesandotherimpositionssimilarinnaturetofines.

Hague Rules: theInternationalConventionfortheUnificationofCertainRulesrelatingtoBillsofLad-ingsignedatBrusselson25August1924.

deFInITIonS

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deFInITIonS

Hague-Visby Rules: theHagueRulesasamendedbytheProtocolConventionsignedatBrusselson23Feb-ruary1968.

Hull Policies: thepoliciescoveringthehullandmachineryofaship,includingexcessliabilitypolicies.

Insured Party: theassured,anyjointassuredandanyco-assuredinrespectofanentry.

Liabilities: liabilities,reasonablecostsandexpensesincurredbyanassured.

Owner: includesanowner,ownersinpartnership,ownersholdingseparatesharesinseveralty,partowner,trustee,mortgagee,charterer,operatororinsurer,builder,insurerorrein-surerwhoentersashipintheinsurerorwhoisajointassuredorco-assured.

Passenger: anypersoncarriedorintendedtobeorhavingbeencarriedonboardtheshipbyvirtueofanypassengercontract.

Ship: anyship,boat,hydrofoil,hovercraftoranyotherdescriptionofvessel,whethercom-pletedorunder construction, (includinga lighter, bargeor similar vesselhowsoeverpropelledbutexcludingafixedplatformorafixedrig)usedorintendedtobeusedforanypurposewhatsoeverinnavigationorotherwiseon,under,overorinwateroranypartofsuchship,oranyproportionofthetonnagethereoforanysharetherein.

The Ship: ashipwhichhasbeenenteredbytheinsurerforinsurance.

Tonnage: thegrosstonnageofashipasstatedintheCertificateofRegistryorotherofficialdocu-mentrelatingtotheregistrationoftheship.

Towage: any operation in connectionwith the holding, pushing, pulling,moving, escorting orguidingoforstandingbyashiporobject.

Unlawful, Prohibited or Sanctionable: unlawful,prohibitedorsanctionableunderUnitedNationsresolutionsorthetradeor

economicsanctions,lawsorregulationsoftheEuropeanUnion,UnitedKingdom,Unit-edStatesofAmerica,theplaceofincorporationordomicileoftheassuredortheship’sflagstate.

Valuables: money,negotiablesecurities,gold,silverware,jewelry,ornamentsorworksofart.

Wilful Misconduct: anactintentionallydoneoradeliberateomissionbyaninsuredpartywithknowledgethattheperformanceoromissionwillprobablyresultininjuryorloss,oranactdoneoromittedinsuchawayastoallowaninferenceofarecklessdisregardfortheprobableconsequences.

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• References to rule numbers shall include any sub-paragraphs of that rule.• Headings and sub-headings are for reference only and do not affect the construction of any rule.• In case any of the provisions of this Contract becomes invalid, this will not affect the validity of the Contract’s other remaining provisions during all the Contract period, unless the provision that became valid does not sustain the implementation of the contract or makes implementation impossible. An article that becomes null and void, will affect the mutual matters which are imposed to the opposite party and make them invalid and non-operative.

04SECTIONS

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SeCTIon A: InSUrAnCe

1.1 Therules,whicharesubjecttothearticles,containthetermsuponwhichP&Icov-erisgivenbytheinsurer.

1.2 Thestandardrisksagainstwhichanassuredisinsuredaresetoutinrule3.

1.3.1 Anassuredmaybeinsuredinrespectofrisksotherthanthosesetoutinrule3,orinrespectofrisksotherwiseexcluded,wheresuchriskshavebeenagreedbytheinsurers.

1.3.2 Anysuchrisksarecoveredsubjecttotheterms,conditions,limitationsandexclu-sionsoftherules.

1.3.3 Theinsurermayreinsureanysuchrisk.

1.4 Noact,omission,courseofdealingorforbearanceorreimbursementbytheinsurershallbetreatedasanyevidenceofawaiveroftheinsurer’srightsundertherules.

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SeCTIon B: SCoPe oF CoVer

2.1 The liabilities in respectofwhichanassured is insuredmusthavearisenbyreasonoftheassured’sinterestintheship,outofeventsoccurringduringthepolicyperiodandinconnectionwiththeoperationoftheship.

2.2 Wheresuchliabilitieswouldnothavearisenbutforthetermsofanycontractorindemnity,thecontractorindemnitymusteithercorrespondtoanyspecificre-quirementssetoutinrule3orrule5,orhavebeenapprovedbytheinsurer.

2.3 An assured’s insurance is subject to the warranties, conditions, exceptions,limitationsandothertermssetoutintherulesandthecertificateofentry.

2.4 Anassuredisnotinsuredforanyliabilitiesincurredbyhiminacapacityotherthanthat inwhichhehasentered intothecontractof insurancewiththe in-surer.

2.5 Thispolicyofinsuranceisonlyapplicabletocabotagetrade.Unlessotherwiseagreedintheinsurancecontract,thereshallbenorecoverybytheassuredfromtheinsurerforanyliabilitiesincurredbytheassuredotherthanwhenengagedincabotagetrade.

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Crew injury, Illness or Death:

Repatriation:

Substitute Expenses:

Loss of Effects:Shipwreck Unemployment Indemnity:

Port Expenses to Crew:

Passengers:

Third Parties:Stowaways and Refugees Port Charges:

SeCTIon C: rISkS CoVered

3.1.1 Liabilitiesinrespectofcrewinjury,illnessordeath.

3.1.2.1 Liabilitiesinrespectofcrewrepatriation.

3.1.2.2 LiabilitiesinrespectofrepatriationunderGuidelineB2.5ofRegulation2.5ofthe2006MaritimeLabourConvention(MLC2006)ordomesticlegislationbyastatepartyimplementingMLC2006.

exclusion to 3.1.2 Liabilitiesarisingoutoftheterminationofanyagreement,orthesaleoftheship,or

anyotheractoftheassuredinrespectoftheship.

3.1.3 Expensesnecessarilyincurredinsendingsubstitutestoreplace crewwhohavedied,areincapacitatedorwhohavebeenleftashoreinconsequence

ofinjury,illness,ordesertion.Wagesareonlyrecoverablewhenpayabletosubsti-tutes,whileawaitingandduringrepatriation.03

3.1.4 Lossofcreweffects,excludingvaluables.

3.1.5 Wagesorothercompensationpayabletocrewarisingoutof theactualorconstructivetotallossoftheship.

3.1.6 Portandotherchargesassetoutinrule3.4incurredinrelationtocrew.

3.2.1 Liabilitiesinrespectoftheinjury,illnessordeathofapassenger.

3.2.2 Liabilitiestopassengersarisingoutofacasualtywhiletheyareonboardtheship.Forthepurposeofthisrule‘casualty’meanscollision,stranding,explosion,fireoranyothercauseaffectingtheconditionoftheshipsoastorenderherincapableofsafenavigationtoherintendeddestination;orathreattothelife,healthorsafetyofpassengers.

3.2.3 Lossofordamagetoapassenger’sbaggageoreffects,excludingvaluables.

3.2.4 Inrespectofanyliabilitiesarisingunderrule3.2,thepassengercontractmustrelievetheassuredofliabilitytothemaximumextentpermittedundertheappli-cablelaw.

exclusions to rule 3.2 1)Liabilitiesarisingoutofthecarriageofapassengerbyairunlesstheyoccur: a)duringrepatriationofaninjuredorsickpassenger,orfollowingacasualtyto

theship;or b)duringexcursionsfromtheship,subjecttoexclusion(2)below.

2)Contractual liabilitiesarising in respectofapassengerwhileonanexcursionfromtheshipincircumstanceswhereeither:

a)aseparatecontracthasbeenenteredintobythepassengerfortheexcursion,whetherornotwiththeassured;or

b)theassuredhaswaivedanyrightsofrecourseagainstanysub-contractororotherthirdpartyinrespectoftheexcursion.

3.3 Liabilitiesinrespectoftheinjury,illnessordeathofanypersonotherthancreworpassengers.

3.4 Portandotherchargessolelyincurredforthepurposeoflandingstowawaysor

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Life Salvage :

Collision with of Other Ships :

Damage to Other Ships (other than by collision) :

Pollution:

refugees,orotherssavedatsea,orlandingorsecuringthenecessarytreatmentforaninjuredorsickperson,otherthancrew,includingthenetlosstotheassuredinrespectoffuel,insurance,wages,storesandprovisionsincurredforsuchpurpose.

3.5 Sumsduetoathirdpartybecausehehassavedorattemptedtosavethelifeofanypersononorfromtheship.

3.6.1 One-fourth,orsuchotherproportionagreedbythemanagers,oftheliabilitiesaris-ingoutofacollisionotherthanthosesetoutinrule3.6.3.

3.6.2 Theliabilitiesarisingoutofacollisionrelatingto: 1)theraising,removing,destroying,lightingormarkingofwrecks,cargoorother

property 2)damagedonebysuchothershiptoanypropertynotbeinganothershiporany

cargoorotherpropertytherein 3)lossofordamagetocargoorotherpropertybeingcarriedintheship;ifthecargo

isthepropertyoftheassured,itisdeemedtobefullyinsured,andtheassuredisentitledonlytorecoverfromtheinsurertheamountbywhichsuchindemnityex-ceedsthesumrecoverableundersuchinsurance

4)theinjury,illnessordeathofanypersononboardsuchothership 5)pollutionliabilitiesasmaybecoveredunderrule3.8.

3.6.3 Thatpartoftheassured’scollisionliabilitywhichexceedsthesumrecoverableun-derthehullpoliciessolelybyreasonofsuchliabilityexceedingthevaluationoftheshipinthosepolicies.However,theinsurermaydeterminethepropervalue(beingthemarketvalueoftheshipwithoutcommitment)forwhichtheshipshouldhavebeeninsuredunderthehullpolicies,andtheinsurershallpayonlytheexcessoftheamountwhichwouldhavebeenrecoverableiftheshiphadbeeninsuredthereunderatsuchvalue.

3.6.4 Therewillbenorecoveryfromtheclubinsofarassuchcollisionliabilitiesarenotrecoverableunderthehullpoliciesbyreasonofanybreachofsuchpolicies.

3.6.5 Ifbothshipsaretoblamethen,unlesstheliabilityoftheownersofoneorbothofthembecomeslimitedbylaw,claimsshallbesettledupontheprincipleofcross-liabilities.

3.7 Liabilitiesforlossofordamageto,delayto,interferencewithrightsinrelationto,orliabilityforsalvageorwreckremovalcosts incurred in respect of, anyothershiporanycargoorotherpropertythereincausedotherthanbycollisionwiththeship.

3.8.1 Liabilitiesarisingoutofthedischargeorescapefromtheshipofanysubstance.

3.8.2 Thecostsofanymeasuresreasonablytakenafterthedischargeorescapeofanysubstancefromtheshipforthepurposeofavoidingorminimizinganyresultingloss,damageorcontaminationorcleaningupanyresultingpollution,togetherwithlia-bilityforanylossofordamagetopropertycausedbyanymeasuressotaken.

3.8.3 Thecostsofanymeasuresreasonablytakentopreventanimminentdangerofthedischargeorescapefromtheshipofanysubstance.

3.8.4 Extraordinaryliabilitiesincurredasaresultofcomplyingwithanyorderordirectiongivenoranymeasurestakenbyanyauthorityinconnectionwiththeshiporhercargoforpreventingorreducingpollutionortheriskthereofbytheescapefromtheshipofanysubstance,excludinganypermanentstructuralalterationtotheship.

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Damage to Property (other than by pollution ):

Towage of the Ship:

Towage by the Ship:

Wreck Liabilities:

3.8.5 Liabilities under a salvage agreement to compensate salvors forwork done ormeasurestakentopreventorreducepollutionortheriskthereofbytheescapefromtheshipofanysubstance.

3.8.6 Liabilitiesincurredaftertheshiphasbecomeawreckarisingfromthedischargeorescapefromsuchwreckofanysubstance.

3.8.7 Liabilitiesinrespectofpollutionwheresuchliabilitiesariseunderrules3.6,3.7,3.9,3.10,3.11and3.20.

exclusions to rule 3.8 Thereshallbenorecoveryinrespectof: 1)liabilitieswhichbutforthetermsofanycontractofcarriagewouldhavebeen

allowedingeneralaverageadjustedundertheun-amendedYorkAntwerpRules1994

2)liabilities,lossordamageincluding,withoutlimitation,liabilityforthecostofanyremedialworksorclean-upoperations,arisingasaresultofthepresencein,ortheescapeordischargeorthreatofescapeordischargefrom,anylandbaseddump,site,storageordisposal facilityofanysubstancepreviouslycarriedontheshipwhetherascargo,fuel,storesorwasteandwhetheratanytimemixedinwholeorinpartwithanyothersubstancewhatsoever.

3.9 Liabilitiesforlossofordamageto,orinterferencewithrightsinrelationto,anypropertynotbeinganyshiporanycargoorotherpropertythereinorthecargoorotherpropertyintendedtobeorbeingorhavingbeencarriedintheship.

3.10.1 Liabilitiesunderthetermsofacontractforthetowageoftheshipwhich: 1)relatetotheriskssetoutintheotherparagraphsofrule3; 2)ariseunderacontractfortowageundertakenintheordinarycourseoftradingfor

thepurposeofentering,leavingormanoeuvringwithinaport;or 3)ariseunderacontractforthetowageofcargobarges;or 4)ariseunderacontractwhichhasbeenapprovedbytheinsurer.

3.10.2 Liabilitiesunderthetermsofacontractfor,orarisingoutof,thetowagebytheshipofanyshiporobjectwhere:

1)suchliabilitiesrelatetotheriskssetoutintheotherparagraphsofrule3;and 2)thetowageisundertakenforthepurposeofsavinglifeorpropertyatsea;or 3)theshipistowingunderaUnitedKingdom,NetherlandsorScandinavianstand-

ardtowagecontract,thecurrentLloyd’sstandardformofsalvageagreement–nocurenopay,Towcon,Towhirestandardforms,allinmateriallyun-amendedform,oranyotherstandardformtowagecontractcontainingequivalentorbetterprotectionthanthesaidstandardconditionsorstandardforms,ortowhichtheinsurermay,onsuchtermsasitrequires,agreeinwriting.

3.11.1 Liabilitiesfororincidentaltotheraising,removal,destruction,lightingormarkingofthewreckoftheship.Thevalueofthewreckandallstoresandmaterialssavedmustbedeductedfromanyreimbursementandonlythebalanceisrecoverable.

3.11.2 Liabilitiesresultingfromtheactualorattemptedraising,removalordestructionofthewreckoftheship,cargooranyotherpropertyonboard.

3.11.3 Liabilitiesresultingfromthepresenceorinvoluntaryshiftingofthewreckoftheship,cargooranyotherpropertyonboardcausedbythecasualtywhichledtothelossoftheship,cargooranyotherpropertyonboard.Anassuredisnotentitledtobereimbursedbytheinsurerinrespectofanyliabilityincurredmorethantwoyearsaftertheship,cargooranyotherpropertyonboardbecameawreck.

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Quarantine Expenses:

Cargo Liabilities:

3.11.4 Liabilitiesfororincidentaltotheraising,removal,destructionordisposalofcargooranyotherpropertywhichisbeing,orhasbeen,carriedontheship.Thevalueofallcargooranyotherpropertysavedaccruingtotheassuredmustbedeductedfromanyreimbursementandonlythebalanceisrecoverable.

exclusions to rule 3.11 1)Thereshallbenorecoveryiftheassuredhas,withouttheagreementofthein-

surer,transferredhisinterestinthewreckotherthanbyabandonment,atanytimeaftertheshipbecameawreck.

2)Thereshallbenorecoveryunlesstheraising,removal,destruction,lightingormarkingofthewreck,ortheraising,removal,destructionordisposalofcargooranyotherproperty,wascompulsorybylaworwasundertakenwiththeagreementoftheinsurer.

(3)Anassuredisnotentitledtoreimbursementinrespectofanyliabilityunless he took reasonablemeasures to raise, remove, destroy, light ormarkthewreck,orraise,remove,destroyordisposeofcargooranyotherproperty.

4)Thereshallbenorecoveryunlesstheassuredhascontractedforremovalofthewreckontermswhichhavebeenapprovedbytheinsurer.

5)Thereshallbenorecoveryinrespectofliabilitiesfororincidentaltotheraising,removal,destruction,lightingormarkingofthewreckoftheshipunlesstheshipbecameawreckasaresultofacasualty.Forthepurposeofthisrule‘casualty’meanscollision,stranding,explosion,fireorsimilarfortuitousevent,butexcludesanywreckcausedbyderelictionorneglect.

3.12 Expensesincurredasadirectconsequenceofanoutbreakofinfectiousdiseaseontheship,includingquarantineanddisinfectionexpenses,andthenetlosstotheas-suredinrespectoffuel,insurance,wages,stores,provisions,cargohandlingandportcharges.

exclusion to rule 3.12 Thereshallbenorecoveryifatthetimetheshipwascharteredto,orwasunder

ordersfromtheassuredorherinsurerto,proceedtoaportitwasknown,orshouldintheinsurer’sviewreasonablyhavebeenanticipated,thatshewouldbequarantined.

3.13.1 Liabilitiesforlossorshortageof,ordamageto,orotherresponsibilityinre-spectof,cargoorotherpropertyintendedtobe,orbeing,orhavingbeencarriedin,onorbytheshiparisingoutofanybreachbytheassured,orbyanypersonforwhoseacts,neglectordefaulthemaybelegallyliable,ofhisobligationproperlytoload,handle,stow,carry,keep,carefor,dischargeanddeliversuchcargoorprop-erty,oroutofunseaworthinessorunfitnessoftheship.

3.13.2 Theextracostsincurredbytheassured: 1)intheactualdischargeordisposalofdamagedorworthlesscargo,providedthat

hecanonlyrecoversuchcostsifhehasnorecoursetorecoverthemfromanyotherparty;or

2)asadirectconsequenceofthefailurebycargointereststocollectorremovecargofromtheplaceofdischargeordelivery,providedthathecanonlyrecoversuchcoststotheextenttheyexceedtheproceedsofthesaleofthecargoandhehasnorecoursetorecoverthemfromanyotherparty.

3.13.3 Liabilitiesforlossofordamagetoorresponsibilityinrespectofcargoorotherpropertybeingcarriedbymeansoftransportotherthantheship,forwhichtheassuredmaybe liableundera contractof carriage,approvedby the insurer,providingforcarriagepartlytobeperformedbytheship.

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exclusions to rule 3.13 Thereshallbenorecoveryinrespectofliabilitiesarisingoutof: 1) the carriageof cargoon contractual termsmoreonerous to the carrier than

thoseoftheHagueorHague-VisbyRules,orequallywideexemptionsofthecarrierfromliability,savewhereitisonsuchtermssolelybyreasonoftheincorporationbylawoftheHamburgRulesorpartsthereof,totheextentthattheliabilitiesexceedthosewhichwouldhavebeenincurredhadthecontractbeenontheHague,Hague-VisbyorHamburgtermsasapplicable,unlessthecontracthasbeenapprovedinadvancebytheinsurer

2) adeviation,orasaconsequenceofadeviation,fromthecontractuallyagreedvoyage,whichmaydeprivetheassuredoftherighttorelyondefensesorrightsoflimitationwhichwouldotherwisehavebeenavailabletohim,unlessthe insurerhaveagreedthatcovermaycontinueunprejudiced

3) thefailuretoarriveorlatearrivaloftheshipataportofloading,orthefailuretoloadordelayinloadinganyparticularcargootherthanunderabillofladingalreadyissued

4) thedischargeofcargoataplaceotherthanthatstipulatedinthecontractofcarriage

5) thedeliveryofcargocarriedunderanegotiabledocumentoftitlewithoutpro-ductionofthatdocumentbythepersontowhomdeliveryismadeexceptwherethecargohasbeencarriedunderthetermsofanon-negotiabledocument,andhasbeenproperlydeliveredasrequiredbythatdocument,notwithstandingthattheassuredmaybeliableunderthetermsofanegotiabledocumentoftitleissuedbyoronbehalfofapartyotherthantheassuredprovidingforcarriageinpartupontheshipandinpartuponanothershiporbyanothermodeoftransport

6)deliveryofcargocarriedunderanon-negotiabledocumentwithoutproductionofsuchdocumentbythepersontowhomdeliveryismade,wheresuchproductionisrequiredbytheexpresstermsofthatdocumentorthelawtowhichthatdocument,orthecontractofcarriagecontainedinorevidencedbyit,issubject,exceptwheretheassuredisrequiredbyanyotherlawtowhichheissubjecttodeliverorrelin-quishcustodyorcontrolofthecargo,withoutproductionofsuchdocument

7)theissueofadocumentcontainingorevidencingthecontractofcarriagerecord-ingtheloadingorshipmentorreceiptforshipmentonadateotherthanthedateonwhichthecargowasinfactloaded,shippedorreceived

8)adocumentcontainingorevidencingthecontractofcarriage issuedwiththeknowledgeoftheassuredorhismasterwithanincorrectdescriptionofthecargooritsquantityorcondition

9)thecarriageoffinishedsteelproducts,unlesstheassuredtheassuredhasar-rangedforapreloadingsurveytobecarriedoutbyaninsurer-approvedsurveyorateachportofshipment,andthebillsofladinghavebeenclausedinaccordancewiththefindingsofthesurveyorastotheconditionofcargoatthetimeofloading

10)lossof,damagetoorresponsibilityinrespectofcargocarriedondeckunlessitiscarriedunderacontractofcarriagewhichpermitsittobecarriedondeckandthecontractstatesthatitisbeingsocarriedandeitheritexoneratestheassuredfromallliabilityinrespectofsuchcargooritappliestheHagueorHague-VisbyRulestosuchcargo,oritiscustomarytocarrysuchcargoondeck,orsuchcarriagehasbeenapprovedbytheinsurer

11)thecarriageofvaluables 12)goodscarriedunderadocumentcontaininggoodscarriedunderadocument

containingorevidencingthecontractofcarriagewherethevalueperunit,pieceorpackagehasbeenstatedtobeinexcessofUS$2,500,ortheequivalentinanyothercurrency,whichmaydeprivetheassuredoftherighttorelyondefencesorrightsoflimitationwhichwouldotherwisehavebeenavailabletohim,totheextentthatsuchliabilitiesexceedthatsum.

3.14 Theproportionofgeneralaverage,specialchargesorsalvagewhichtheassured

Hague and Hague-Visby Rules:

Deviation:

Loading:

Discharge:Documentation and Delivery:

Finished Steel Products:

Deck Cargo:

Valuables:

Unrecoverable Contributions:

Value Declared On Bill of Lading:

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isorwouldbeentitledtoclaimfromcargoorfromanotherpartywhichisnotrecov-erablesolelybyreasonofabreachofthecontractofcarriage.

exclusions to rule 3.14 1)Ifthecontributionisirrecoverablebyreasonofadeviation,rule3.13exclusion(2)

appliestoanyclaimunderrule3.14. 2)Theinsurermayrejectorreduceaclaimifthecontractofcarriageunderwhich

thecargowasbeingcarrieddidnotincludeArticleIVRule(2)(a)oftheHagueRules,asamendedbytheHague-VisbyRules,oranequallywideexemptionfromliability.

3.15 Ship’sproportionofgeneralaverage,specialchargesorsalvagenotrecov-erableunderthehullpoliciesbyreasonofgeneralthevalueoftheshipbe-ingassessedatasoundvalueinexcessoftheinsuredvalueunderthehullpolicies.Theinsurermaydeterminethepropervalue(beingthemarketval-ue of the shipwithout commitment) forwhich the ship should have beeninsuredunderthehullpolicies,andtheinsurershallpayonlytheamountoftheship’sproportionofgeneralaveragewhichwouldnothavebeenrecov-erable under the hull policies, if the ship had been insured thereunder atsuchvalue.

3.16 Finesimposedontheassuredoruponanyotherpersonwhomhereasonablyreim-bursesorislegallyliabletoindemnify:

3.16.1 forshortoroverdeliveryofcargo,orforfailuretocomplywithregulationsconcern-ingthedeclarationofgoodsorthedocumentationofcargo.

3.16.2 forsmugglingorbreachofanycustomsorimmigrationlaworregulation.

3.16.3 inrespectoftheaccidentalescapeordischargeofanysubstance,solongastheassuredisinsuredforpollutionliabilitiesbytheinsurersubjecttohistermsofentryandtherelevantlimitofliability.

exclusions to rule 3.16 Thereshallbenorecoveryinrespectofafineimposedfororarisingoutof:

1)claimsarisingfromanyactoftheassuredinbreachofthemandatoryrulesandregulationsofTurkishLaw,moralvalues,publicorderorrightsofpersonality

2)overloading 3)illegalfishing 4)anypersonalactordefaultonthepartoftheassuredorhismanager 5)wilfulmisconductonthepartofanypersonunlesstheassuredhasbeencom-

pelledbylawtopaythefine.

3.17 Costsandexpensesincurredinprotectinganassured’sinterestsbeforeaformalenquiryintoacasualtytotheshipwhere,intheopinionoftheinsurer,aclaimupontheinsurerislikelytoarise,orinothercasesastheinsurerdetermines.

3.18 Costsandexpensesincurredinprotectinganassured’sinterestsincasesofinterferencebyanylawfulauthorityofanycountry,butonlytotheextentthatthosecostsandexpenseshavebeenincurredwiththeprioragreementofthein-surer.

3.19 Lossoftheshipfollowingitsconfiscationbyanylegallyempoweredbodyinrespectoftheinfringementofanycustomslaworregulationbutonlyifandtotheextentthat,notwithstandingrule5.1,the insurerdecidesthattheassuredshallrecoverfromtheinsurer.

Ship’s Proportion of General Average:

Fines:

Enquiry Expenses:

Interference by Lawful Authorities:

Confiscation of Ship by Authorities:

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exclusions to rule 3.19 1) claimsarisingfromanyactoftheassuredinbreachofthemandatoryrulesand

regulationsofTurkishLaw,moralvalues,publicorderorrightsofpersonality 2)Theamountrecoverableshallnotexceedthemarketvalueoftheshipatthedate

oftheconfiscation. 3) Theassuredmusthavesatisfiedtheinsurerthathetookallsuchstepsasappear

totheinsurertobereasonabletopreventtheinfringementofthecustomslaworregulationgivingrisetotheconfiscation.

4) Noclaimwillbeconsideredbytheinsureruntiltheassuredhasbeendeprivedofhisinterestintheship

3.20 Extraordinarycostsandexpenses,includinglegal,survey,expertandcorrespond-entfees,reasonablyincurredonoraftertheoccurrenceofanyeventliabletogiverisetoaclaimupontheinsurerandincurredsolelyforthepurposeofavoidingorminimizinganyliabilityagainstwhichtheassuredisinsuredbytheinsurer,butonlyto the extent that those costs and expenses have been incurredwith the prioragreementoftheinsurer.

exclusion to rule 3.20 Unlesstheinsurerotherwisedecides,thereshallbedeductedfromsuchcostsand

expensesthedeductiblewhichwouldhavebeenapplicablehadtheliabilityorex-penditureagainstwhichtheassuredisinsuredbytheinsurerbeenincurred.

Sue and Labour:

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SeCTIon d: eXClUded rISkS

4.1 Thereshallbenorecoveryfromtheinsurerinrespectofanyliabilitieswhichwouldberecoverablefromunderwritersiftheshipwere,atthetimeoftheincidentgivingrisetosuchliabilities,fullyinsuredunderhullpoliciesontermsequivalenttothoseoftheusualLloyd’smarinepolicywiththeInstituteTimeClauses(Hulls)1.10.83attachedortotheextentthattheshipwasfullyinsuredtoapropervalue(beingthemarketvalueoftheshipwithoutcommitment)underaP&Iwarriskspolicyinclud-ingpiracy risks. The insurermaydetermine theproper value forwhich the shipshouldhavebeeninsuredundertheP&Iwarriskspolicy.Unlessotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectofanyfranchiseordeductiblebornebytheassuredundersuchpolicies.

4.2 Unlessotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectofanyliabilitiesrecoverableunderanyotherinsuranceorwhichwouldhavebeensore-coverable:

1)apartfromanytermsinsuchotherinsuranceexcludingorlimitingliabilityonthegroundofdoubleinsurance;and3

2)iftheshiphadnotbeenenteredintheinsurerwithcoverfortheriskssetoutintherules.

4.3 Thereshallbenorecovery inrespectofanyliabilities, irrespectiveofwhetheracontributorycauseofthesamebeingincurredwasanyneglectonthepartoftheassuredorhisservantsoragents,incurredasaresultof:

1)war,civilwar,revolution,rebellion,insurrectionorcivilstrifearisingtherefrom,oranyhostileactbyoragainstabelligerentpower,oranyactofterrorism;

2)capture,seizure,arrest,restraintordetainment(barratryandpiracyexcepted)andtheconsequencesthereoforanyattemptthereat;

3)mines,torpedoes,bombs,rockets,shells,explosivesorothersimilarweaponsofwar,savethatthisexclusiondoesnotapplytoliabilitieswhicharisesolelybyrea-sonof:

a)thetransportofanysuchweaponswhetheronboardtheshipornot;or b)theuseofanysuchweapons,eitherasaresultofgovernmentorderorwiththe

agreementoftheinsurer,wherethereasonforsuchusewastheavoidanceormitigationofliabilitieswhichwouldotherwisefallwithinthecovergivenbytheinsurer.

Intheeventofanydisputeastowhetherornotanyactconstitutesanactofterror-ism,thedecisionoftheinsurershallbefinal.

4.4 Thereshallbenorecovery inrespectofanyliabilities, irrespectiveofwhetheracontributorycauseofthesamebeingincurredwasanyneglectonthepartoftheassuredorhisservantsoragents,directlyorindirectlycausedbyorarisingfrom:

1)ionizingradiationsfromorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwasteorfromthecombustionofnuclearfuel;or

2)theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanynuclearinstallation,reactororothernuclearassemblyornuclearcomponentthereof;or

3)anyweaponordeviceemployingatomicornuclearfissionand/orfusionorotherlikereactionorradioactiveforceormatter;or

4)theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanyradioactivematter.

4.5 Notwithstandingtheexclusionsinrules4.3and4.4,theinsurerwilldischargeonbehalfoftheassuredliabilitiesarisingunderademandmadepursuanttotheissuebytheinsureronbehalfoftheassuredof:

Risks Covered by Hull and War Risks Policies:

Double Insurance:

War Risks:

Radioactive Contamination:

Guarantees, Undertakings and Certificates:

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1) acertificateincompliancewithArticleVIIoftheInternationalConventionsonCivilLiabilityforOilPollutionDamage1969and1992oranyamendmentsthereof;or

2) acertificateincompliancewithArticle7oftheInternationalConventiononCivilLiabilityforBunkerOilPollutionDamage2001;or

3)anyotherguarantee,certificateorundertakingissuedbytheinsurerpursuanttoanystatute,convention,treatyorlaw.

4) acertificateincompliancewithArticle4bisoftheAthensConventionRelatingtotheCarriageofPassengersandTheirLuggagebySea2002.

4.6 Theassuredshallindemnifytheinsurertotheextentthatanypaymentunderanysuchguarantee, undertakingor certificate is orwouldhavebeen recoverable inwholeorinpartunderastandardP&Iwarriskspolicyhadtheassuredcompliedwiththetermsandconditionsthereof.

4.7 Theassuredagreesthatanypaymentbythe insurerunderanysuchguarantee,undertakingorcertificateshall,totheextentofanyamountrecoveredunderanypolicyofinsuranceoradditionalcoverprovidedbytheinsurer,bebywayofloanandthereshallbeassignedtotheinsurertotheextentandonthetermstheinsurerdeterminetobepracticable,alltherightsoftheassuredunderanyotherinsuranceandagainstanythirdparty.

4.8 Noclaimisrecoverableifitarisesoutoforisconsequentupontheshipblockade-runningorbeingemployedinanunlawful,prohibitedorsanctionablecarriage,trade,voyageoroperation,oriftheprovisionofinsuranceforacarriage,trade,voy-ageoroperationisorbecomesunlawful,prohibitedorsanctionableoriftheinsurerdeterminesthatthecarriage,trade,voyageoroperationwasimprudent,unsafe,undulyhazardousorimproper.

Unlawful Sanctionable Trades:

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SeCTIon e: eXClUded loSSeS

5 Exceptasprovidedinthisruleorotherwiseagreedbytheinsurer,thereshallbenorecoveryinrespectof:

5.1 Lossofordamagetotheshiporanypartthereof,saveasprovidedforinrule3.19.

5.2 Lossofordamagetoanyequipment,containers,lashings,stores,orfuelonboardtheshiptotheextentthattheyareownedorleasedbytheassuredoranyassoci-atedcompany.

5.3 Thecostofrepairstotheshiporanychargesorexpensesinconnectiontherewithsaveasprovidedforinrules3.14and3.15.

5.4 Lossoffreight,hire,time,market,production,profitoranyotherdirectorindirectlosseswhatsoeveroranyproportionthereof inrelationtotheship,unlesssuchloss,withtheagreementoftheinsurer,formspartofaclaimforliabilitiesinrespectofcargo.

5.5.1 Lossarisingoutofdemurrageon,detentionof,ordelaytotheshipor,exceptasprovidedforinrules3.1.6and3.4,runningcostsoftheship,unlesssuchcosts,withtheagreementoftheinsurer,formpartofaclaimforliabilitiesinrespectofcargo.

5.5.2 Liabilitiesarisingoutofarrestordetentionofordelaytotheshippursuanttoaclaimagainsttheassuredliabilityforwhichisnotcoveredundertherules.

5.6 Lossarisingoutofthecancellationofanycontractorengagementinrelationtotheship.

5.7 Lossarisingoutofirrecoverabledebtsortheinsolvencyofanyperson.

5.8 Liabilitiesarisingoutoftheactual,orthreatened,escapeordischargeofanysub-stancesaveasprovidedforinrule3.8.

5.9 Salvageorotherservicesinthenatureofsalvageprovidedtotheship,andanyli-abilitiesinconnectiontherewith,otherthansuchasmaybecoveredunderrules3.5,3.8.5,3.14or3.15.

5.10 Liabilitiesarisingoutofsalvageoperations(includingwreckremoval)conductedbytheshiporprovidedbytheassuredotherthanliabilitiesarisingoutofsalvageop-erationsconductedbytheshipforthepurposeofsavingorattemptingtosavelifeatsea.

5.11 Liabilitiesincurredduringthecourseofperformingspecialistoperationsincludingbutnotlimitedtodredging,blasting,pile-driving,wellstimulation,cableorpipelaying,construction,installationormaintenancework,coresampling,depositingofspoil,professionaloilspillresponseorprofessionaloilspillresponsetrainingandtankcleaning(otherthanontheship),butexcludingfire-fighting,totheextentthatsuchliabilitiesariseasaconsequenceof:

1) claimsbroughtbyanypartyforwhosebenefittheworkhasbeenperformed,orbyanythirdparty(whetherconnectedwithanypartyforwhosebenefittheworkhasbeenperformedornot),inrespectofthespecialistnatureoftheoperations;or

2)thefailuretoperformsuchspecialistoperationsbytheassuredorthefitnessforpurposeorqualityoftheassured’swork,productsorservices;or

3)anylossofordamagetothecontractworkincluding,butnotlimitedtomateri-als, components, parts, machinery, fixtures, equipment and any other property

Hull damage:

Equipment Damage:

Repairs:

Loss of Hire:

Detention:

Cancellation:

Bad Debts:

Pollution:

Salvage:

Specialist Operations:

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whichisorisdestinedtobecomeapartofthecompletedprojectwhichisthesub-jectofthecontractunderwhichtheshipisworking,ortobeuseduporconsumedinthecompletionofsuchproject.

Thisexclusiondoesnotapplytoliabilitiesincurredinrespectof: a)injury,illnessordeathofanypersononboardtheship b)wreckremovaloftheship c)oilpollutionemanatingfromtheshiporthethreatthereofbutonlytothe

extentthatsuchliabilitiesarecoveredbytheinsurerinaccordancewiththeserules.

5.12.1 Liabilitiesincurredinrespectoftheship,beingadrillingshiporanyothershipemployedtocarryoutdrillingorproductionoperationsinconnectionwith oil or gas exploration or production, including any accommodationshipmooredorpositionedonsiteasan integralpartofanysuchopera-tions, to theextent thatsuch liabilitiesariseoutoforduringdrillingorproductionoperations.

5.12.2 Ashipshallbedeemedtobecarryingoutproductionoperationsif,interalia,itisastoragetankerorothershipengagedinthestorageofoil,andeithertheoilistransferreddirectlyfromaproducingwelltothestorageship;orthestorageshiphasoilandgasseparationequipmentonboardandgasisbeingseparatedfromoilwhileonboardthestorageshipotherthanbynaturalventing.

5.13 Lossofordamagetoorwreckremovalofcargocarriedonasemisubmers-ibleheavyliftshiporanyothershipdesignedexclusivelyforthecarriageofheavyliftcargo,savetotheextentthatsuchcargo isbeingcarriedunderthetermsofacontractonHeavycontermsoranyothertermsapprovedbytheinsurer.

5.14 Liabilitiesincurredinconnectionwithanyclaimarisingoutof: 1) theoperationby theassuredofsubmarines,mini submarinesordiving

bells;or 2)theactivitiesofprofessionalorcommercialdiverswheretheassuredisre-

sponsibleforsuchactivities,otherthan: a) activities arising out of salvage operations being conducted by the ship

wherethediversformpartofthecrewofthatship(orofdivingbellsorothersimilarequipmentorcraftoperatingfromtheship)andwheretheassuredisresponsiblefortheactivitiesofsuchdivers;and

b)incidentaldivingoperationscarriedoutinrelationtotheinspection,repairormaintenanceoftheshiporinrelationtodamagecausedbytheship;and

c)recreationaldivingactivities.

5.15 Liabilitiesincurredinrespectof: 1)personnel(otherthanmarinecrew)onboardtheship(beinganaccommoda-

tionship)employedotherthanbytheassuredwheretherehasnotbeenacon-tractualallocationofrisksbetweentheassuredandtheemployeroftheper-sonnelapprovedbytheinsurer;

2)hotelandrestaurantguestsandothervisitorsandcateringpersonneloftheshipwhensheismoored(otherthanonatemporarybasis)andisopentothepublicasahotel,restaurant,barorotherplaceofentertainment.

5.16 Liabilitiesincurredinconnectionwithanyclaimbroughtagainsttheassuredarisingoutofwasteincinerationordisposaloperationscarriedoutbytheship,otherthananysuchoperationscarriedoutasanincidentalpartofothercom-mercialactivities,notbeingspecialistoperations.

Drilling and Production Operations:

Heavy Lift Ships:

Submarines and Divers:

Non-Marine Personnel:

Waste Disposal:

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5.17 Liabilities and losses arising from the use of any electronic trading system,otherthananelectronictradingsystemapprovedbytheinsurer,totheextentthatsuchliabilitiesandlosseswouldnot(saveinsofarastheinsurerotherwisedetermine)havearisenunderapapertradingsystem.

Forthepurposeofthisrule: 1) anelectronictradingsystemisanysystemwhichreplacesorisintendedto

replacepaperdocumentsusedforthesaleofgoodsand/ortheircarriagebyseaorpartlybyseaandothermeansoftransportandwhich:

a)aredocumentsoftitle;or b)entitletheholdertodeliveryorpossessionofthegoodsreferredtoinsuch

documents;or c)evidenceacontractofcarriageunderwhichtherightsandobligationsof

eitherofthecontractingpartiesmaybetransferredtoathirdparty. 2)a‘document’shallmeananythinginwhichinformationofanydescriptionis

recordedincluding,butnotlimitedto,computerorotherelectronically-generatedinformation.

Paperless Trading:

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SeCTIon F: SCoPe oF reCoVerY And lIMITS

6.1 Ifanassuredincursanyoftheliabilitiessetoutinrule3,heisentitledtorecoverthenetamountofsuchliabilities,deductinganycostsandexpenseswhichwouldhavebeenincurredinanyeventtogetherwithanysavingsaccruingtohimandanyrecov-eriesmadebyhim,unlessotherwiseagreedbytheinsurer.

6.2.1 Undernocircumstancesshalltherecoverybyanyperson exceed: 1)theamounttowhichtheassuredisentitledtolimithisliability,orwouldhave

beensoentitledunderanyrelevantlawhadhesopetitioned; 2)anyotherlimitcontainedintheserulesorsetoutintheassured’scertificateof

entry; 3)iflessthanthefulltonnageoftheshipisenteredintheinsurer,suchproportion

oftheamountreferredtoinrule6.1,orthelimitsreferredtoinparagraphs(1)and2)above,astheenteredtonnagebearstothefulltonnageoftheship.

6.2.2 Iftheclaimsofallinsuredpartiesinrespectofliabilitiesinsuredbytheinsurerex-ceedormayexceedintheaggregateanylimitofcoversetoutintherulesorinthecertificateofentry:

1) theassuredshallbeentitledtorecoverinrespectofsuchclaimsinprioritytotheclaimsofanyotherinsuredpartiesandanyjointassuredsshallbeentitledtore-coverinrespectofsuchclaimsinprioritytotheclaimsofanyco-assureds;

2)wheretheaggregateoftheclaimsoftheassuredexceedsormayexceedthesaidlimit,theassuredshallbeentitledtorecoverinrespectofsuchclaimstotheexclu-sionofanyclaimsofanyotherinsuredparties;

3)wheretheaggregateoftheclaimsofanyjointassuredsexceedsormayexceedthesaidlimitoranypartthereofremainingafterapplicationofrule6.2.2(1),anyjointassuredshallbeentitledtorecoverinrespectofsuchclaims

a)totheexclusionofanyclaimsofanyco-assureds;and b)onlysuchproportionoftheremainingpartofthelimitastheclaimofthatjoint

assuredbearstothetotalofallclaimsofalljointassureds; 4)wheretheaggregateoftheclaimsofanyco-assuredsexceedsormayexceedthe

saidlimitoranypartthereofremainingaftertheapplicationofrules6.2.2(1)and(3),anyco-assuredshallbeentitledtorecoverinrespectofsuchclaimsonlysuchpro-portionoftheremainingpartofthelimitastheclaimofthatco-assuredbearstothetotalofallclaimsofallco-assureds.

6.2.3 Ifintheopinionoftheinsurertheclaimsofallinsuredpartiesintheaggregateex-ceedormayexceedanylimitsetoutintherulesorinthecertificateofentry,theinsurermaydeferpaymentofaclaimoranypartthereof.

6.2.4 Whereaguarantee,undertakingorcertificateprovidedforinrule4.5hasbeenis-suedandintheopinionoftheinsurertheclaimsofallinsuredpartiesintheaggre-gateexceedormayexceedanylimitsetoutintherulesorinthecertificateofentry,theinsurer:

1)maydeferpaymentofaclaimoranypartthereofastheyseefit;and 2)shallnotbeunderanyobligationtoreimburseanassureduntiltheyaresatisfied

thatallliabilitiesarisingunderdemandsmadeorwhichmaybemadeunderanysuchguarantee,undertakingorcertificatehavebeenorcanbesatisfiedwithinsuchlimit.

6.3 Anylimitsonthecoverprovidedbytheinsurerapplyintheaggregatetoallinsuredpartiesandaffiliatedorassociatedcompanies.

6.4 Subjecttoanylowerlimitsofcovercontainedintherulesorsetoutintheassured’s

Net loss:

Limits of Recovery:

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certificateofentry,theliabilityoftheinsurertoallinsuredpartiesforallclaimsarisingunderanyoneowner’sentry,shallbelimitedintheaggregatetoUS$500millionanyoneevent.

6.5 Ifaclaimarisesfollowingacollisioninvolvingtwoshipsbelongingtothesame

assured,heisentitledtorecoverfromtheinsurer,andtheinsurerhasthesamerights,asiftheshipshadbelongedtodifferentowners.

6.6 Ifaclaimarisesunderrules3.7or3.9followinglossofordamagetoanyship,cargoorotherpropertyorobjectbelongingtotheassuredinrespectofwhoseshiptheclaimarose,theassuredisentitledtorecoverfromtheinsurer,andtheinsurerhasthesamerights,asifsuchship,cargoorotherpropertyorobjectlostordamagedhadbelongedtoathirdparty,butonlytotheextentthatsuchlossordamageisnotrecoverableunderanyotherinsuranceuponthesaidship,cargoorotherpropertyorobject.

6.7 Ifthecargoinrespectofwhichaclaimarisesunderrule3.13isthepropertyoftheassured,heisentitled,subjecttotheexclusionstorule3.13,torecoversuchliabil-itiesaswouldhavebeenrecoverableifthatpropertybelongedtoathirdpartyandthatthirdpartyhadconcludedacontractofcarriagewiththeassured.

6.8 Theinsurerisnotliabletomakeanypaymentinrespectofanyclaimwhileanysumisduefromtheassured,ordueinrespectofashipenteredunderthesamegroupratingagreement;however,ifanypaymentismade,theinsurermaydeductanysumwhichisduefromanassuredrelatingtoanypolicyyear.

6.9 Innocaseisinterestpayableonsumsduefromtheinsurer.

6.10 Unlesstheinsurerotherwisedetermines,itisaconditionprecedentofanassured’srighttorecoverinrespectofanyliabilitiesthathemusthavefirstdischargedorpaidthesameoutoffundsbelongingtohimunconditionallyandnotbywayofloanorotherwise.

6.11 Anysumrecoverableshallbesubjecttosuchdeductibleashasbeenagreedbytheinsureror,ifnotsoagreed,shallbesubjecttothestandarddeductiblesdeterminedbytheinsurerfromtimetotime.Unlessotherwiseagreed,deductiblesshallapplyanyoneevent.

6.12 Theinsurermayundertakethedefenseofanassuredorinstitutelegalproceedingsonhisbehalfinrespectofanyamountnotrecoverablebyreasonofanydeductibleinordertoascertainthelegalpositionoftheassured.Althoughtheinsurermaypaythecostsofsuchlegalproceedings,theassuredshallbearanydamagesthereinadjudgedorawardedagainsthim.

6.13 Noclaimisrecoverableinrespectofanyliabilitieswhichin theopinionoftheinsurerhasbeenincurredowingtotheprivityorwilfulmiscon-

ductofaninsuredparty.

6.14 Anassuredmustatalltimestakeallreasonablestepstoavoidorminimizeanyloss,damageorliabilityinrespectofwhichhemaybeinsuredbytheinsurer.Ifanassuredisinbreachofthisobligation,theinsurermayrejectanyclaimbytheas-suredforreimbursementorreducethesumpayablebytheinsurer.

6.15 Whereapartyisnamedasajointassuredorco-assuredandawaiverofsubroga-tionisrequiredunderacontract,rightsofsubrogationagainstsuchjointassuredorco-assuredarewaivedonlywheretheinsurerhasagreedsuchawaiver;anysuch

Assured’s Property:

Amounts Owing the Insurer:

Interest:

Pay to Be Paid:

Deductibles:

Wilful Misconduct:

Obligation to Sue and Labour:

Waiver of Subrogation:

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waiverappliesonlyinrespectofthoseliabilitieswhicharebornebytheassuredorotherjointassuredunderthetermsoftherelevantcontractandnottoanyliabilitieswhicharetobebornebytheotherparty.

6.16 Theassuredshallinnocircumstancesbeentitledtorecoverfromtheinsurerthatpartofanyliabilitieswhichisnotrecoveredbytheinsurerfromanyotherpartyunderanyreinsurance(s)becauseofashortfallinrecoveryfromthepartiesorrein-surersthereunderbyreasonofanysanction,prohibitionoradverseactionagainstthembyanystateorinternationalorganizationortheriskthereofifpaymentweretobemadebysuchpartiesorreinsurers.Forthepurposesofthisrule6.16“short-fall”includesanyfailureordelayinrecoverybytheinsurerbyreasonofthepartiesor reinsurersmakingpayment intoadesignatedaccount incompliancewiththerequirementsofanystateorinternationalorganization.

Sanctions:

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SeCTIon G: oBlIGATIonS WITH reGArd To ClAIMS

7.1 Anassuredmustpromptlynotifytheinsurerinwritingnotlaterthan10daysofeverymatterandofeveryclaimmadebyathirdpartyagainsthimwhichmayleadtoaclaimforrecovery.

7.2 Anassuredmustsubmithisclaimfor reimbursementofany liabilitieswithin12monthsofdischargingorsettlingthem,andmustproduceinsupportofeachclaimallinformationtheinsurermayrequire.

7.3 Anassuredmustnotifythe insurerofany informationordocumentation inhispower,custody,controlorknowledgerelevanttoanymatterandmust,assoonasrequestedbytheinsurer,givetotheinsurerand/ortotheexpertsorlawyersappointedtoactonhisbehalfallsuchdocumentationandallowittobeinspectedandcopied

7.4 Anassuredmustallowtheinsurer,ortheappointedexpertsorlawyers,tointerviewanypersonemployedbytheassuredwhomtheinsurerconsidersmayhaveknowl-edgeofthematter.Ifanysuchpersonisrequiredtogiveevidenceatanylegalpro-ceedingsrelatingtoamatter,theassuredwillusehisbestendeavourstomakesureheattends.

7.5 Anassuredmustkeeptheinsurerfullyinformedoftheprogressofanymatterwhichwillormaycausetheassuredtoincurliabilitiesforwhichheisormaybeinsuredbytheinsurerinwholeorinpart,includinganycostsorexpenses,andofanyactionproposedinrelationtosuchmatter.

7.6 Anassuredmustnotsettle,compromiseoradmitliabilityforanymatterforwhichheisormaybeinsuredbytheinsurerinwholeorinpartwithouttheapprovaloftheinsurer.Iftheassureddoesenterintoasettlementagreementforanymatterwhichmaybeinsurerbytheinsurerinwholeorinpart,theassuredmustnotifythein-surerinwriting.Iftheinsurerdoesnotapprovethesettlementagreementwithin15daysofnotificationofthemattertotheinsured,thesettlementagreementwillbeinvalidagainsttheinsurer.

7.7 Anassuredwhoincursanycostsorexpenseswithouttheagreementoftheinsurer,orwithoutthematterbeingconductedbyanexpertorlawyerappointedorprevi-ouslyapprovedbytheinsurer,willonlybeentitledtoreimbursementbytheinsurerforthereasonablecostsandexpensesincurred.

7.8 Anassuredmustnotwithholdorconcealanyevidencewhichitisormayberelevanttodisclose,ormakeanyfalsestatement.Ifsuchevidenceiswithheldorconcealedorfalsestatementismade,anyliabilitiesalreadyincurredorreimbursedbythein-surermustberepaidbytheassured.

8.1 Theinsurershallinformtheassuredwithinfivedaysfromthedateofnotificationmadeinaccordancewithrule7.1,whetheritwilltakethenecessarylegalstepsanddecisionsonbehalfoftheassuredunderitsownresponsibilityandaccountandas-sistinthedefenseoftheassuredwithregardstotheclaimpresented.

8.2 Theinsurerhastherighttocontrolordirecttheconductofanymatterorlegalpro-ceedingsrelatingtoanyliabilitiesinrespectofwhichtheassuredisormaybein-suredbytheinsurerinwholeorinpart,andinparticulartodirecttheassuredtouseaparticularexpertorlawyer.

Notification:

Documentation:

Developments:

Settlement:

Recovery:

Evidence:

Powers of the Insurer Relating to the Handling of Claims:

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8.3 Theinsurerhastherighttorequiretheassuredtosettle,compromiseorotherwisedisposeofanymatterorproceedinginsuchmannerastheyseefit.

8.4 Theinsurermayatanytimeonnoticetotheassuredwithdrawtheirapprovalofanyexpertorlawyerappointedtoactonbehalfoftheassured;insuchcircumstancestheassuredwillhavenofurtherentitlementtoreimbursementofanyofthecostsorexpensesofthatexpertorlawyer.

8.5 Theinsurermayatanytimeappoint,onbehalfofanassuredattheexpenseoftheinsurersubjecttoanyapplicabledeductible,expertsorlawyerstodealwithanymatterwhichmayresultinliabilitiesinrespectofwhichtheassuredisormaybeinsuredbytheinsurerinwholeorinpart.

8.6 Ifanassuredfailstocomplywithanyrequirementunderrules7and8,thein-surershallnotbeunderanyobligationtoreimbursehim.

9.1 Theinsurerisundernoobligationtoprovidesecurityonbehalfofanassured,butwhereitisprovideditshallbeonsuchtermsastheinsurerconsidersappropriateandshallnotconstituteanyadmissionofliabilitybytheinsurerfortheclaiminre-spectofwhichitisgiven.

9.2 Anassuredonwhosebehalftheinsurerhasprovidedsecurity,withorwithouttheassured’sexpressauthority,shallondemandreplacethesecurityorpaytothein-surerasumcorresponding to theamountofsuchsecuritywhetherornotsuchamountmayberecoverableinwholeorinpartfromtheinsurer.

9.3 Innocaseshalltheinsurerbeliableforthedetentionoftheship,orforanyotherdetentionorattachmentofanassured’sassets,or foranydamagewhatsoevercausedtoanassuredbyreasonoftheprovisionornon-provisionofsecurity.

9.4 Anassuredshallupondemandreimbursetheinsurersuchsumorsumsasthein-surerhaspaidonhisbehalforundersecurityprovidedbytheinsurertotheextentthatsuchpaymentis,intheopinionoftheinsurer,inrespectofliabilitiesnotrecov-erablefromtheinsurer.

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SeCTIon H: APPlICATIon And enTrY

10.1 Theapplicantmustprovidetheinsurerwithallmaterialparticularsandinformationtogetherwithanyadditionalparticularsandinformationastheinsurermayrequire.

10.2 Theapplicantwarrantsonhisownbehalfandonbehalfofanyotherpersonthathehasprovidedallmaterialinformationandthatallsuchinformationis,sofarasheknowsorcouldwithreasonablediligenceascertain,trueandcomplete,andwillremainsothroughouttheperiodofinsurance.Theinformationsoprovidedformsthebasisofthecontractofinsurancebetweentheapplicantandtheinsurer.

10.3 Theinsurermay,withoutgivinganyreason,refuseanyapplicationfortheentryofashipwiththeinsurer.

11.1 Unlesstheinsurerotherwisedecide,eachpersonwhoseentryhasbeenacceptedundertherulesbecomesanassuredoftheinsurer.Whenevertheinsureracceptsanentrybywayofreinsurance,theinsurerreinsuredbytheinsurerorpersoninsuredbysuchaninsurermay,iftheinsureragrees,becomeanassured.

11.2 Theassuredisobligedtodiscloseanychangeinanymaterialinformationrelatingtoanentryincluding,butnotlimitedto,changeof:management,flag,classifica-tionsociety,governmentauthorityresponsibleforshipcertificationforthetradeinquestion,nationalityofcrew,tradingoroperatingareaornatureoftradeoroperation.Uponsuchdisclosure,orfailuretodisclose,theinsurermayamendtheassured’spremiumratingortermsofentry,orterminatetheentryinrespectofsuchship.

11.3 Theassuredisboundbyandmustobserveandperformtheobligationsundertherules,andmustprovidetheinsurerwithelectronicandpostaladdressesforserviceofnotices.

11.4 Theassuredwarrantsthatheis,inrelationtotheship: 1)herownerorcharterer;or 2)aninsureroroperatorhavingcontrolofheroperationandemployment;or 3)anyotherpersoninpossessionandcontrolofher

11.5 Under a charterer’s entry, the assured warrants that he will, unless otherwiseagreedwiththeinsurer,declaretotheinsurerallshipscharteredbyhim.

12.1 Theinsurerwillsendtheassuredacertificateofentrystatingthedateofcom-mencementofcoverandthetermsandconditionsonwhichtheshiphasbeenac-ceptedforinsurance.

12.2 Ifatanytimethereisavariationinthetermsofentry,theinsurerwillsendtheas-suredanendorsementstatingthetermsofsuchvariationandthedatefromwhichsuchvariationistobeeffective.

12.3 Everycertificateofentryissuedisconclusiveevidenceastoitsterms;iftheinsurerbelievesthatsuchdocumentationcontainsanyerrororomissiontheymayissueanewcertificateorendorsementwhichwillbeconclusiveasaforesaid.

13.1 Theinsurermayacceptanapplicationfromanassuredforanotherpersonorper-sonstobecomejointassuredsinrespectofthatassured’sentry.Eachjointassuredhasanindependentrightofrecoveryfromtheinsurer.

13.2 Unlessotherwiseagreedbytheinsurer,theassuredandalljointassuredsarejoint-lyandseverallyliabletopayallamountsduetotheinsurerinrespectofsuchentry.

Application:

Entry:

Immediate Termination:

Certificates of Entry:

Joint Assureds:

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13.3 Theassuredandeachjointassuredwarrantsthatthejointassuredis,inrela-tiontotheship:

1)interestedinheroperation,managementormanning;or, 2)theholdingcompanyorthebeneficialowneroftheassuredorofanypersonin-

terestedinheroperation,managementormanning;or, 3)thecharterer.

13.4 Theassuredwarrantsthathehasatalltimesfullpowerandauthoritytoactinthenameofand/oronbehalfofalljointassureds.

13.5 Theinsurermayacceptanapplicationfromanassuredforanotherpersonorper-sonstobecomeco-assuredsinrespectofthatassured’sentry.

13.6 Theliabilityoftheinsurertoaco-assuredonlyextendsinsofarashemaybefoundliabletopayinthefirstinstanceforliabilitieswhichareproperlythere-sponsibilityoftheassuredwhich,iftheassuredhasenteredintoacontractwiththeco-assured,meansthoseliabilitieswhicharetobebornebytheassuredunder such contract.Coverdoesnotextend toanyamountwhichwouldnothavebeenrecoverablefromtheinsurerbytheassuredhadtheclaimbeenmadeorenforcedagainsthimortoanyliabilitiestobebornebyanyoftheco-as-suredsunderthesaidcontract.

13.7 Oncetheinsurerhasindemnifiedaco-assureditshallnotbeunderanyfurtherlia-bilitytoanypersoninrespectofthatclaim.

13.8 Thereceiptbyaninsuredpartyofanysumspaidbytheinsurerinrespectofsuchanentryissufficientdischargebytheinsurerforthesame.

13.9 Anyprovisionoftherulesbywhichaninsuredpartyceaseseithertobeinsuredor

tobeentitledtorecoverfromtheinsurerisdeemedtoapplytoallinsuredparties.Failurebyaninsuredpartytocomplywithanyoftheobligationsundertherulesisdeemedtobethefailureofallinsuredparties.

13.10 Conductofaninsuredpartywhichwouldhaveentitledtheinsurertodeclinetoin-demnifyitisdeemedtobetheconductofallinsuredparties.

13.11 Thecontentsofanycommunicationbetweenaninsuredpartyandtheinsurer isdeemedtobewithintheknowledgeofallinsuredparties.

13.12 Thecoverprovidedtojointassuredsandco-assuredsdoesnotextendtoanyliabilitiesordisputeseitheramongsuchjointassuredsandco-assureds,orwiththeassured.

13.13 a.Unlessotherwiseagreedbytheinsurer,whereachartererisnamedasajointas-suredorco-assured,allinsuredparties,includingsuchcharterer,warrantthatthechartereriseither:

1)anaffiliatedorassociatedcharterer;or 2)hascontractedwiththeassuredorajointassuredfortheprovisionofservicesto

orbytheshipandthatcontracthasbeenapprovedbytheinsurer. b.Anycharterernamedasaco-assuredinaccordancewithrule13.13a(2)aboveis

onlycoveredforliabilitieswhicharetobebornebytheassuredorotherjointas-suredunderthetermsoftherelevantcontractandwould,ifbornebytheassuredorthatjointassured,berecoverablebyeitherfromtheinsurer.

13.14 Theinsurermayacceptanentryonthebasisthattheshipispartofagroupratingagreementandassesspremiumaccordingly.

Co-Assureds:

Insured Parties:

Charterer Named as Joint Assured or Co-Assured:

Group Entries:

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13.15 Onepersonmustbedesignatedgroupprincipalandanycommunicationfromoronbehalfoftheinsurertothegroupprincipalisdeemedtobewithintheknowledgeofallinsuredpartiesinthegroupandanycommunicationfromandactiontakenbythegroupprincipalisdeemedconclusivelytobemadewiththefullapprovalofanyandallinsuredpartieswithinthatgroup.

13.16 Allpersonsenteringshipsunderagroupratingagreementandthegroupprincipalremainjointlyandseverallyliabletopayallamountsduetotheinsurerinrespectofanyandallshipsinthesamegroup.

13.17 Intheeventofanybreachofthewarrantiessetoutinrule,10.2,11.4,11.5and13.4,all insuredparties’ insuranceshall terminateasperapplicablerulesofTCCauto-maticallyfromthetimeofthebreach.Insuchcircumstances,theassuredshallbe,andremain,liableforallpremiumuptothetimeofthebreach.

13.18 Intheeventofanybreachbyajointassuredoraco-assuredofthewarrantiessetoutinrules13.3and13.13,thejointassured’sorco-assured’sinsuranceshallterminateautomaticallyfromthetimeofthebreach.Ifajointassuredisinbreach,heshallbe,andremain,liableforallpremiumuptothetimeofthebreach.

14.1 Noinsurancegivenbytheinsurerandnointerestundertherulesorunderanycon-

tractbetweentheinsurerandanyassuredmaybeassignedwithouttheagreementoftheinsurer.Anyassignmentmadewithoutsuchagreementshall,unlessthein-surerotherwisedetermine,beofnoeffectandtheassigneeshallhavenorightsagainsttheinsurer.

14.2 Intheeventthatthe insureragrees,the insurer isentitled insettlinganyclaimpresentedbytheassigneetodeductorretainsuchamountastheinsurersmaythenestimatetobesufficienttodischargeanyactualorpotentialliabilitiesoftheas-signortotheinsurer.

Breach of Warranty:

Assignment:

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SeCTIon I: SHIP STAndArdS And SUrVeYS

15.1 Unlessotherwiseagreedbytheinsurer,thefollowingconditionsofinsuranceofeveryship:

1) theshipmustbeandremainfullyclassedwithaclassificationsocietyap-provedbytheinsurer,or,providedagreedbytheinsurer,remainfullyapprovedbythegovernmentauthorityresponsibleforshipcertificationforthetrade inquestion(hereafter‘society/authority’)

2)anymatterinrespectofwhichthesociety/authoritymightmakerecommenda-tionsaboutactiontobetakenmustbepromptlyreportedtothesociety/authority

3)theassuredmustcomplywithalltherules,recommendationsandrequire-mentsofthesociety/authoritywithinthetimeortimesspecifiedbythatsocie-ty/authority

4)theinsurermayinspectanydocument,and/orobtainanyinformationrelatingto themaintenanceof the ship’s classor approval, in thepossessionof anysociety/authoritywithwhichtheshipisoratanytimehasbeenclassedorap-proved, and the assured authorises such society/authority to disclose suchdocumentsand/or informationtotheinsurerforwhateverpurposestheymayconsidernecessary

5)theassuredmustcomplywithallstatutoryrequirementsoftheship’sflagstate relating to the construction, adaptation, condition, fitment, equipment,manningandoperationoftheshipandmustatalltimesmaintainthevalidityofsuchstatutorycertificatesasarerequiredorissuedbyoronbehalfoftheship’sflagstate,includingthoseinrespectoftheISMandISPScodes.

15.2 Unlessandtotheextenttheinsurerotherwisedecides,anassuredisnotentitledtoanyrecoveryinrespectofanyliabilitiesarisingduringaperiodwhenanyofthecondi-tionsinrule15.1havenotbeencompliedwith.

15.3 Theinsurermay,asaconditionofacceptanceorrenewalofentrywiththeinsurer,appointasurveyorto inspectanapplicant’sorassured’sship. Inthelightofsuchsurvey,theinsurermaydeclinetheapplication,refusetorenewtheentryorimposeconditionsonthetermsofentryastheyseefit.

15.4 Theinsurermayatanytime,orfollowinganaccidentwhichwillormaycausetheassuredtoincurliabilitiesforwhichhemaybeinsuredbytheinsurer,appointasur-veyortoinspectanassured’sshiporundertakeareviewoftheassured’soperationswithinaspecifiedperiod.Iftheshipisnotmadeavailableforsurvey,orthereviewdoesnottakeplace,withinsuchperiod,noclaimforrecoveryasaresultofanyinci-dentarisingaftertheexpiryofsuchperiodwillbeallowed.

15.5 Intheeventthatanassuredhaslaidtheshipupformorethan90consecutivedayshemust,unlessotherwiseagreedbytheinsurer,notifythemofhisintentiontotradetheshipatleastsevendaysbeforesheresumestrading.Theinsurermaythenrequiretheassuredtohavethatshipinspectedbyasurveyorappointedbythem.Intheeventthattheassureddoesnotnotifytheinsurerofhisintentiontotradetheship,noclaimforrecoverywillbeallowed.

15.6 Inthelightofasurveyorreviewtheinsurermay: 1)terminatetheassured’sentry;or 2)amend,varyorimposeconditionsonthetermsofentryastheyseefit

15.7 Anyrecommendationsmadebytheinsurerorasurveyorfollowinganysurveyorreviewmustbecarriedoutwithinthetimespecifiedby,andtothesatisfactionof,theinsurerandnorecoveryshallbeallowedinrespectofanyincidentarisingafteranysuchrecommenda-tionshavebeenmadeuntiltheyhavebeencompliedwithtothesatisfactionoftheinsurer.

Classification and Condition of Ships:

Entry Surveys:

Routine or Claim Surveys and Reviews:

Surveys Lay-up:

Effect on Terms of Entry:

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SeCTIon J: PerIod oF InSUrAnCe

16.1 Unlessotherwiseagreedatthetimeofentryorsetoutintherules,thein-suranceprovidedbytheinsurerbeginsatthetimestatedintheassured’scertificateofentry,andcontinuesforaperiodof12months,orotherperiodasstatedonthecertificateofentry,unlessterminatedinaccordancewiththerules.

16.2 Ifanassureddoesnotwishtocontinuetheinsuranceinrespectoftheshiphemustgivenoticeinwritingtotheinsurernotlaterthan30daysbeforetheex-piryoftheperiodofinsurance.

16.3 Theshipmaynotbewithdrawnatanyothertimeorinanyothermannerexceptwiththeconsentoftheinsurer.

16.4 Theinsurermay,inrespectoftheship,atanytimeandbygivingvalidreasons;1) givetoanassuredsevendays’noticethatheisnotentitledtoanyrecoveryinrespectofanyclaimarisingduringtheperiodfromexpiryofthatnoticeuntilsuchfurthertimeastheinsurerspecifies;or

2) terminatetheentryon30days’noticeinwritinggivennotlaterthan30daysbeforetheexpiryoftheperiodofinsurance.

16.5 Subjecttorule18.2,anassuredisonlyliableforpremiuminrespectoftheshippro-ratafortheperiodfromthetimestatedintheassured’scertificateofentryuntilnoonGMT:

1) onthedayownershipwaslegallytransferred;or 2)onthedateofcessationofinsurance.

17.1 Anassuredshallceasetobe insuredbythe insurer inrespectofanyandallshipsenteredbyhimif:

1) beinganindividual,hedies,becomesofunsoundmind,orbankruptormakesanyarrangementwithhiscreditorsgenerally;or

2)beingacompany,aresolutionispassedforitsvoluntarywinding-uporanorderismadeforitscompulsorywindinguporitisdissolvedorseeksprotec-tionfromitscreditorsunderanyapplicablebankruptcyor insolvencylawsoranysimilareventoccursinanyapplicablejurisdiction.

17.2 Anassuredshallceasetobeinsuredbytheinsurerinrespectofanyshipen-teredbyhimif:

1) hesellsorassignsthewholeoranypartofhisinterestintheship,unlesstheinsurerhaveagreedtosuchassignmentandtoanassignmentoftherelevantinsurancebytheinsurerpursuanttorule14.1;or

2) theshipbecomes,or isacceptedbyhull underwritersas, anactualorconstructivetotalloss,orthere isacompromisereachedwithhullunder-writers,ortheinsurerdecide,thattheshipcanbeconsideredordeemedtobeanactualorconstructivetotalloss,exceptasregardsliabilitiesflowingdirectlyfromthecasualtywhichgaverisetotheactualorconstructivelossoftheship,orsuchlaterdateastheinsurermaydetermine;theinsurermay,however, agree to extend the period of insurance on such terms as theythinkfit;or

3)noticeisgivenunderrules16.2to16.4andisnotwithdrawnbyagreementbeforetheexpiryoftheperiodofinsurance;or

4)theentryisterminatedorceasesinaccordancewithrules15or16.4;or 5)theshipisemployedbytheassuredinacarriage,trade,voyageoroperation

whichwilltherebyinanywayhowsoeverexposetheinsurertotheriskofbeingorbecomingsubjecttoanysanction,prohibitionoradverseactioninanyformwhatsoeverbyanystateorinternationalorganization,oriftheprovisionofin-

Policy Year:

Insurers’ Notice:

Pro-rata Premium:

Cessation of Insurance:

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suranceforacarriage,trade,voyageoroperationisorbecomesunlawful,pro-hibitedorsanctionable,unlesstheinsurershallotherwisedetermine.

17.3 Ifanassuredfailstopaywhendueanddemandedbytheinsureranysumow-ingfromhimtotheinsurerincludinganysumforwhichheisliableunderrule13.16:

1) unlessandtotheextenttheinsurerotherwisedecides,anassuredwillnotbeentitledtoanyrecoveryinrespectofanyclaimarisingfromthedateofsuchfailureuntilthedatesuchsumowingtotheinsurerispaidinfull;and

2)hisinsurancewillbecancelled,whetherornotitmayalreadyhaveceasedforsomeotherreason,ifafterserviceonhimofanoticestatingthattherearesumsowingandrequiringpaymentbyaspecificdatehefailstopayanysuminfullonorbeforesuchdate.

17.4 Theinsurermay,butarenotobligedto,specifytheamountoutstanding;anyinaccuracyinthedemandastotheamountstatedtobeowingshallnotinvali-datethenoticeunlessthereisnosumowingatall.

17.5 Whereanassuredceasestobeinsuredinrespectofanyshiporatall(‘thedateofcessation’)then:

1)suchassuredandhissuccessorsare,andremain, liableforallpremiuminrespectofthatpartofthepolicyyearforwhichtheshipwasonrisk,andprevi-ouspolicyyears

2) the insurer remains liable forallclaimsarisingoutofanyeventoccurringbeforethedateofcessation,butisundernoliabilityforanythingoccurringafterthedateofcessation.

17.6 Whenanassured ceases tobe insuredunder rule16.4he remains liable forpremiumforthepolicyyearinwhichthecessationoccurspro-rataonlyfortheperiodbeginningwiththedateofentryandendingwiththedateoftermination.

17.7 Whenanassuredceasestobeinsuredbyvirtueofrule17.2(2),hecontinuestobeinsuredbytheinsurerinrespectofwreckliabilitiesinaccordancewithrules3.8.6and3.11,andonsuchothertermsasmaybeagreedbytheinsurer.

17.8 Whenanassured’sinsuranceiscancelledunderrule17.3then: 1)ifthecancellationoccurswhiletheassuredis,butforthecancellation,in-

sured,suchassuredandhissuccessorsare,andremain,liableforallpremiuminrespectofthepolicyyearduringwhichthedatespecifiedinthenotice(‘thedateofcancellation’)occurspro-rataonlyfortheperiodbeginningwiththedateofentryandendingwiththedateofcancellationandinrespectofprevi-ouspolicyyears irrespectiveofwhetherornotnoticehasbeengivenunderrule17.3;

2)ifthecancellationoccursaftertheassuredhasceasedtobeinsuredforsomeotherreason,suchassuredandhissuccessorsremainliableforallpremiumasprovidedforinrule17.5(1);

3)theinsurerceasestobeliableforanyclaimsinrespectofanyshipsenteredbysuchassured:

a)whichmayarisebyreasonofanyeventoccurringafterthedateofcancel-lation;or

b)whichhaveaccruedorarisenduringapolicyyearforwhichsumsremainedowingbutunpaidbytheassuredinfullorinpartatthedateofcancellation;or

c)whichmayhaveaccruedorariseninanyyearotherthanonereferredtoin(3)babove,whetherornottheinsurermayhaveadmittedliabilityforsuchclaimsormayhaveknown,atthedateofcancellation,thataclaimwaslikelytoaccrue.

Cessation of Insurance:

Effect of Cessation of Insurance:

Effect of Cancellation of Insurance:

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SeCTIon k: PreMIUMS

18.1 Theassuredagreestopayallpremiumandothersumsdeterminedbytheinsurer,insuchmannerandatsuchtimeastheinsurermayrequire.

18.2 Ifashipislaid-upinasafeportwithoutanycargoonboardfor30ormoreconsecu-tivedaysafterfinallymooringthere,theassuredis,subjecttorule18.3,allowedapro-ratareturnofpremiumuptoamaximumrateof75%.Anylay-upreturnisre-ducedpro-rataforanyperiodofshiftingwithintheportduringlay-up.

exclusions to rule 18.2 Unlessotherwiseagreedbytheinsurers,thereshallbenoreturnif: a.therearecrewonboardtheshipotherthanforsecurityorformaintenancenec-

essaryforthesafetyoftheship;or b.repairsarecarriedoutotherthanforthesafetyoftheship.

18.3 Ifanassureddoesnotnotifyandsubmithisclaimforreimbursementtotheinsurerinwritingwithinthreemonthsunderrule16.5,orwithinthreemonthsoftheendofthepolicyyearunderrule18.2,noallowanceorreturnshallbemadeunlesstheinsurerotherwisedetermine.

19.1.1 Anypremiumorothersumsdueshallbedesignatedinsuchcurrency,andbepay-ableinsuchmannerandatsuchtime,astheinsurermayspecify.Ifanysumdueisnotpaidonthespecifieddate,timebeingoftheessence,suchassuredshallpayinterestontheamountoutstandingfromthatdateuntilthedateofpaymentatsuchrateastheinsurerdetermines.Theinsurermay,however,waivepaymentofinterestinwholeorinpart.

19.1.2 Whereanassuredhasappointedabroker,thebrokeristheagentoftheassured.Paymentsofthepremiumandothersumsduetotheinsurershallnotbeconsideredreceivedbytheinsureruntilactuallyreceivedbyit,andpaymentbytheassuredtohisbrokerorotherintermediaryshallnotconstitutepaymenttotheinsurer.

19.1.3 Wheretheassuredhasappointedabroker,paymentbytheinsurertothebrokerofsumsduetotheassuredshallconstitutepaymenttotheassured.Anysuchpay-mentshallfullydischargetheinsurer’sliabilityinrespectofsuchsums.

19.2 Iftheship,whichissubjecttoinsurancecoverage,isnotinthepossessionoftheassured,theassuredacknowledgesthattogetherwiththepolicyholder,heshallbejointlyandseverallyliableforalltheclaimsarisingfromcontractofinsuranceinfavoroftheinsured;inthisregard,theassuredacknowledgesthatforalltheclaimsoftheinsured,precautionaryattachmentshallbeapplicabletoeveryship,whichareinpossessionoftheassured,inaccordancewiththearticles1352p.1(r),1353and1369ofTurkishCommercialCodenumbered6102.

Premium:

Laid-up Returns:

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SeCTIon l: GenerAl TerMS And CondITIonS

20.1 Whenevertheinsurer’sagreementorapprovalisrequiredbytherules,itmustbegiveninwriting,andnoagreementorapprovalshallbeofanyeffectintheabsenceofsuchwrittenagreement.

20.2 The insurershallbeentitledtogivedisclosureof informationrelatingtotheassured’sbusinesswhichhasbecomeknowntotheinsurerwheresuchdisclo-sureisrequiredbylaw,oranyrule,regulation,orderordirectionofanyauthor-ityorifnecessaryfortheproperperformanceoftheinsurer’sobligations.

20.3 Allnoticesanddocumentsrequiredbytherulestobegiventotheinsurermustbeinwritingandaddressedtotheinsurer.

20.4 Allnoticesanddocumentsrequiredbytherulestobeservedonanassuredmaybeservedastheinsurerdecideseitherpersonally,orbypost,faxore-mailtohim:

1)athisaddressasrecordedbytheinsurer;or 2)atanyotheraddresshehasnotifiedtheinsurerasbeinghisaddressforser-

vice;or 3)atanyaddressofabrokeroragentthroughwhomanyshiphasbeenentered

intheinsurer.20.5 Everynoticeanddocumentservedpersonallyisdeemedservedonthedayof

service;ifservedbypost,faxore-mailisdeemedservedontheseconddayafterpostingorsending.Proofofpostingissufficientproofofservicebypost,whiletheinsurer’srecordofanyelectroniccommunicationissufficientproofofser-vicebyothermeans.

21 Anyandalldisputesarisingoutoforinconnectionwiththerulesandanycon-tractofinsurancebetweentheinsurerandaninsuredpartyaregovernedbyandconstruedinaccordancewithTurkishLawandshallbereferredtotheIstanbulCommercialCourtwhichspecializesinMaritimeaffairsunlessthepartiesagreeotherwise.

Powers of Board and Insurers:

Disclosure:

Notices:

Law and Jurisdiction:

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Türk P ve I Sigorta A.Ş.