Rules Class I - Protection and Indemnity (6-10)

6 Entry

i

An Owner who wishes to enter any Ship for insurance in the Club shall apply for such entry in such form and in such manner as the Managers may from time to time require.

ii

An Owner who so applies for insurance or negotiates any changes to or renewal thereof warrants that he has provided all material particulars and information and that all such particulars and information are true and complete and will so remain throughout the period of insurance. The particulars and information so provided shall, if the entry of the ship for insurance is accepted, form the basis of the contract of insurance between the Member and the Club.

iii

Before any application for entry is accepted, the Managers shall agree in writing the terms and conditions that are to apply to the entry, including those concerning premiums, date of commencement and scope of cover and the other terms and conditions on which the ship is to be accepted.

iv

The provisions of this Rule apply throughout the period of entry of the Ship in the Club and the Member shall immediately disclose to the Club any material change in any material particulars and information or any material alteration in the risk relating to such entry.

v

a

If the Managers determine that the nature of the risk has materially changed since the ship was entered; or

b

If the Member fails to comply with the obligations under sub-paragraph iv of this rule,

the Managers shall be entitled, without prejudice to any other right or remedy of the Club, in their absolute discretion by notice in writing to:

(i) terminate the entry of such ship or Member from the commencement of the Policy Year or such later date as they may decide, or

(ii) amend or vary the terms of such entry as they think fit.

vi

The Managers shall be at liberty, without giving any reason, to refuse any application for entry of a ship in the Club from any Owner whether or not that Owner is already a Member of the Club.

(i)  The report of any survey or inspection or audit may only be disclosed to another club when an application for entry is made thereto; and

7 Certificate of Entry

i

As soon as reasonably practicable after the acceptance of an application for entry of a Ship for insurance in the Club, the Managers shall issue to the Member in respect of such Ship a Certificate of Entry in such form as they may from time to time determine which may include, among other things:

a

the names of the Members on whose behalf the Ship has been entered and their interest in that Ship;

b

the date of the commencement of the period of insurance; and

c

the terms and conditions, including any limitations to cover, on which the ship has been accepted for insurance.

ii

If at any time there shall be a variation in the terms of entry relating to an entered Ship, the Managers shall, as soon as reasonably practicable thereafter, issue to the Member in respect of such a Ship an endorsement slip, in such form as they may from time to time determine, stating the terms of such variation and the date from which such variation is to be effective.

iii

Every Certificate of Entry and every endorsement slip issued as aforesaid shall be conclusive evidence and binding for all purposes as to the commencement of the period of insurance, as to the terms and conditions on which the ship has been entered for insurance, and as to the terms of any variation and the date from which such variation is to be effective; provided that in the event that any Certificate of Entry or any endorsement slip shall in the opinion of the Managers contain any error or omission, the Managers may in their discretion issue a new Certificate of Entry or a new endorsement slip which shall be conclusive evidence and binding as aforesaid.

8 Members

i

Every Owner who enters any ship in the Club shall (if not already a Member) be and become a Member of the Club as from the date of the commencement of such entry. Each Member is bound by the Act and Bye-Laws of the Club and by these Rules.

ii

iii

Whenever the Club agrees to accept the entry of a ship by way of reinsurance of any insurer, the insurer reinsured by the Club shall be and become a Member of the Club provided that, unless otherwise agreed by the Club, it shall not be entitled to attend any General Meeting of the Club, Annual or Special, or vote on any resolutions at any such Meeting.

iv

All contracts of insurance with the Club shall be deemed to be subject to and incorporate all the provisions of these Rules except to the extent otherwise expressly agreed in writing with the Managers.

v

Each Member or other person whose application for insurance or reinsurance is accepted shall be deemed to have agreed both for itself and its successors and each of them that both it and they and each and all of them will be subject to and bound by and will perform their obligations under the Rules, Act and Bye-Laws of the Club and any contract of insurance with the Club.

vi

Membership shall not be transferable or transmissible.

9 Joint Members and Assureds

i

If an entry is made in the names of or on behalf of more persons than one (hereinafter referred to as Joint Members) they shall be jointly and severally liable to pay contributions due to the Club in respect of such entry; and the receipt by any one Joint Member of any sums payable by the Club in respect of such entry shall be sufficient discharge of the Club for the same.

The cover afforded to Joint Members shall extend only to risks, liabilities, costs and expenses arising out of operations and/or activities customarily carried on by or at the risk and responsibility of shipowners and which are within the scope of the cover provided under the terms, conditions and exceptions provided by these Rules and by the Certificate of Entry.

The conduct of any one Joint Member which is sufficient to bar that Joint Member’s right of recovery under the terms, conditions and exceptions provided by these Rules and by the Certificate of Entry shall bar absolutely the rights of recovery of all Joint Members thereunder.

Affiliates

ii

When an entry is made by a Member cover provided under these Rules and by the Certificate of Entry may be extended, subject to the written agreement of the Managers, to any person associated or affiliated with that Member;

provided that:

a

such cover shall only extend to a liability which would have been incurred by the Member if the claim concerning that liability had been made against the Member;

b

such cover shall not extend to any amount which would not have been recoverable from the Club by that Member had such claim been made or enforced against that Member;

c

to the extent that the Club indemnifies such associated or affiliated persons under such cover it shall not be under any further liability and shall not make any further payment to any person whatsoever, including the said Member, in respect of the claim so indemnified;

d

the conduct of that Member or any associated or affiliated person which is sufficient to bar that person’s rights of recovery under the terms, conditions and exceptions provided by these Rules and by the Certificate of Entry shall bar the rights of recovery of all persons thereunder.

Claims between Joint Assureds

iii

There shall be no recovery out of the funds of the Club in respect of any liability, costs or expenses arising out of or as a result of any claim, dispute or difference between any Joint Members, Affiliates and/or any others insured to any extent under one entry.

Fleet Entries

iv

Where more than one Ship is entered by one or more Members and the Managers agree in writing that those ships will be treated as a single fleet for underwriting purposes, those Members, if more than one, shall be jointly and severally liable for all and any obligations arising under these rules as to payment of premium and for the purposes of the same shall be deemed to be a single Member and the entered ships deemed to be entered on that single Member’s behalf.

10 Contributions

i

Unless entered under Rule 4 ii as a fixed premium entry or upon special terms which otherwise provide, the Members or persons who have entered ships for insurance, shall severally and not jointly mutually insure each other as hereinafter set out against liabilities, costs and expenses which they or any of them may become liable to pay or may incur in respect of any entered ship, and for this purpose each such Member or person shall contribute to the funds or other obligations of the Club as required:

a

to meet all such claims, liabilities, costs, expenses and other outgoings (whether incurred, accrued or anticipated) as the Board of Directors determine necessarily and properly fall on the Club;

b

to establish, maintain or accumulate such reserve or reserves as the Directors may deem necessary, expedient or prudent;

c

without prejudice to the generality of paragraph b above, to accumulate such funds as may be necessary to establish and maintain any solvency margin, guarantee fund or other fund as may be required of the Club by any governmental or other legislation or regulation.

ii

Such contributions to the funds of the Club shall be levied upon and paid by the Members as Mutual Premium, Additional Premium and Overspill Calls in accordance with the provisions of Rules 11, 12, and 39.