Rules Class I - Protection and Indemnity (41-45)

41 Assignment

Save with the Club’s prior consent in writing, which it shall be entitled to withhold in its absolute discretion and without giving reasons, no assignment or subrogation whatsoever and howsoever arising of any interest under these Rules shall bind the Club to any extent whatsoever. In the event that the Club does consent to an assignment or subrogation of a Member’s interests under these Rules, it shall be entitled to impose such terms and conditions as it sees fit, non-compliance with which will void any such consent, and to deduct any liabilities whatsoever and howsoever arising whether ascertained or prospective of the assignor/subrogator from claims of the assignee/subrogee.

42 Subrogation

Where the Club makes payment to its Member in accordance with a Member’s rights under these Rules and the Member has rights against another party, whether by way of a claim for contribution, indemnity or otherwise arising out of the claim or matter in respect of which the Club has made such payment to the Member, the Club shall be subrogated to the rights of the Member in respect of that claim to the extent of that payment, including any interest accruing on that amount prior to its recoupment and any costs incurred in relation to the exercise of such rights.

Further, the Member agrees to hold such rights as trustee for the Club and to take such steps as the Club may direct with regard to their enforcement and recovery. All such recoveries, howsoever and whensoever made, are to be paid to the Club, including interest and recovered costs, provided that if any such recovery exceeds the amounts paid by the Club, including interest and costs whether paid to third parties or incurred by the Club, the balance shall be paid to the Member.

If required by the Club, the Member will execute a legal assignment of its rights to the Club. In the event that such rights are not assignable or transferable as a matter of law, the Member undertakes not to dissolve itself or otherwise render itself incapable of acting at the Club’s behest in enforcing any such rights against another party.

43 Provision of Bail

i

The Club is under no obligation to provide bail or other security, including any guarantee, undertaking or certificate evidencing financial or other responsibility, on behalf of any Member. When the Club does provide bail or such other security the Managers may at the time when such bail or other security is provided or at any time subsequently until the security is returned for cancellation:

a

require the Member forthwith to provide alternative security in substitution for that provided by the Club, if acceptable to the claimant, or place a cash deposit with the Club or, in the Managers' sole discretion, to provide other counter-security acceptable to the Club,

b

withhold all or any payments due from the Club to the Member up to the amount of the Club’s exposure as a security deposit until its liability under its security has been determined.

ii

The provision of bail or other security is at the absolute discretion of the Managers and the Club shall not be liable for any delay or detention to a ship to which such security relates and any other ship owned by the Member or any other assets, or for any other losses whatsoever and howsoever arising, resulting from non-provision or delay in providing bail or other security;

iii

Where bail or other security is provided on behalf of the Member, the Managers shall be entitled to impose such terms on its provision as they in their absolute discretion see fit and the Member agrees that the Club shall have a contractual lien over each ship owned by the Member and/or in the same and/or associated ownership, management or control, whether entered in the Club or not, for an amount equivalent to the Club’s exposure under the said bail or other security which the Club shall be entitled to enforce at any time in the Managers’ absolute discretion;

iv

The provision of bail or other security by the Club does not constitute any admission of liability by the Club for any claim in respect of which the bail or security is given. Insofar as the Club makes payment under or pursuant to any bail, guarantee, certificate or security whatsoever provided by the Club and the amount of that payment or any part thereof would not have been payable by the Club but for its provision of such security, the Member shall to that extent forthwith indemnify the Club, and pay any costs incurred through or in connection with the provision of such security.  

44 Managers’ Remuneration

Each Member shall, on becoming a Member, and thereafter at the beginning of each Policy Year, pay management commission as determined by the Directors.

45 Amendments to Rules

The Rules of this Class may be altered or added to either by Ordinary Resolution passed at a separate meeting of the Members of this Class or by an Ordinary Resolution passed at a general meeting of the Club provided in each case that no such alterations shall be effective unless and until the same shall be sanctioned by the Directors.