Institute Time Clauses Hulls 1/11/95 Cl. 280 (ITC)
(FOR USE ONLY WITH THE CURRENT MAR POLICY FORM)
This insurance is subject to English law and practice
1.1. The Vessel is covered subject to the provisions of this insurance at all times and has leave to sail or navigate with or without pilots, to go on trial trips and to assist and tow vessels or craft in distress, but it is warranted that the Vessel shall not be towed, except as is customary or to the first safe port or place when in need of assistance, or undertake towage or salvage services under a contract previously arranged by the Assured and /or Owners and/or Managers and/or Charterers. This Clause 1.1. shall not exclude customary towage in connection with loading and discharging.
1.2. This insurance shall not be prejudiced by reason of the Assured entering into any contract with pilots or for customary towage which limits or exempts the liability of the pilots and/or tugs and/or towboats and/or their owners when the Assured or their agents accept or are compelled to accept such contracts in accordance with established local law or practice.
1.3. The practice of engaging helicopters for the transportation of personnel, supplies and equipment to and/or from the Vessel shall not prejudice this insurance.
1.4. In the event of the Vessel being employed in the trading operations which entail cargo loading or discharging at sea from or onto another vessel (not being a harbour or inshore craft) no claim shall be recoverable under this insurance for loss of or damage to the Vessel or liability to any other vessel arising from such loading or discharging operations, including whilst approaching, lying alongside and leaving, unless previously notice that the Vessel is to be employed in such operations has been given to the Underwriters and any amended terms of cover and any additional premium required by them have been agreed.
1.5. In the event of the Vessel sailing (with or without cargo) with the intention of being (a) broken up, or (b) sold for breaking up, any claim for loss of or damage to the Vessel occurring subsequent to such sailing shall be limited to the market value of the Vessel as scrap at the time when the loss or damage is sustained, unless previous notice has been given to the Underwriters and any amendments to the terms of cover, insured value and premium required by them have been agreed. Nothing in this Clause 1.5. shall affect claims under Clauses 8 and/or 10.
Should the Vessel at the expiration of this insurance be at sea and in distress or missing, she shall, provided notice be given to the Underwriters prior to the expiration of this insurance, be held covered until arrival at the next port in good safety, or if in port and in distress until the Vessel is made safe, at a pro rata monthly premium.
3. Breach of Warranty.
Held covered in case of any breach of warranty as to cargo, trade, locality, towage, salvage services or date of sailing, provided notice be given to the Underwriters immediately after receipt of advices and any amended terms of cover and any additional premium required by them be agreed.
4.1. It is the duty of the Assured, Owners and Managers at the inception of and throughout the period of this insurance to ensure that
4.1.1. the Vessel is classed with a Classification Society agreed by the underwriters and that her class within that Society is maintained,
4.1.2. and recommendations requirements or restrictions imposed by the Vessel’s Classification Society which relate to the Vessel’s seaworthiness or to her maintenance in a seaworthy condition are complied with by the dates required by that Society.
4.2. In the event of any breach of duties set out in Clause 4.1. above, unless the Underwriters agree to the contrary in writing, they will be discharged from their liability under this insurance as from the date of the breach provided that if the Vessel is at sea at such date the Underwriters’ discharge from liability is deferred until arrival at her next port.
4.3. Any incident condition or damage in respect of which the Vessel’s Classification Society might make recommendations as to repairs or other action to be taken by the Assured, Owners or Managers must be promptly reported to the Classification Society.
4.4. Should the Underwriters wish to approach the Classification Society directly for information and/or documents., the Assured will provide the necessary authorisation.
This Clause 5 shall prevail notwithstanding any provisions whether written typed or printed in this insurance inconsistent therewith.
Unless the Underwriters agree to the contrary in writing, this insurance shall terminate automatically at the time of
5.1. change of the Classification Society of the Vessel, or change, suspension, discontinuance, withdrawal or expiry of her Class therein, or any of the Classification Society’s periodic surveys becoming overdue unless an extension of time for such survey be agreed by the Classification Society, provided that if the Vessel is at sea such automatic termination shall be deferred until arrival at her next port. However where such change, suspension, discontinuance or withdrawal of her Class or where a periodic survey becoming overdue has resulted from loss or damage covered by Clause 6 of this insurance or which would be covered b an insurance of the Vessel subject to current Institute War and Strikes Clauses Hulls - Time such automatic termination shall only operate should the Vessel sail from her next port without the prior approval of the Classification Society or in the case of a periodic survey becoming overdue without the Classification Society having agreed an extension of time for such survey.
5.2. any change, voluntary or otherwise, in the ownership or flag, transfer to new management, or charter on a bareboat basis, or requisition for title or use of the Vessel, provided that, if the Vessel has cargo on board and has already sailed from her loading port or is at sea in ballast, such automatic termination shall if required be deferred, whilst the Vessel continues her planned voyage, until arrival at final port of discharge if with cargo or at port of destination if in ballast. However, in the event of requisition for title or use without the prior execution of a written agreement by the Assured, such automatic termination shall occur fifteen days after such requisition whether the Vessel is at sea or in port.
A pro rata daily net return of premium shall be made provided that a total loss of the Vessel, whether by insured perils or otherwise, has not occurred during the period covered by this insurance or any extension thereof.
6.1. This insurance covers loss of or damage to the subject-matter insured caused by
6.1.1. perils of the sea rivers lakes or other navigable waters
6.1.2. fire, explosion
6.1.3. violent theft by persons from outside the Vessel
6.1.6. contact with land conveyance, dock or harbour equipment or installation
6.1.7. earthquake volcanic eruption or lightning
6.1.8. accident in loading discharging or shifting cargo or fuel
6.2. This insurance covers loss of or damage to the subject-matter insured caused by
6.2.1. bursting of boilers breakage of shafts or any latent defect in the machinery or hull
6.2.2. negligence of Master Crew or Pilots
6.2.3. negligence of repairers or charterers provided such repairers or charterers are not an Assured hereunder
6.2.4. barratry of Master Officers or Crew
6.2.5. contact with aircraft, helicopters or similar objects, or objects falling therefrom
provided that such loss or damage has not resulted from want of due diligence by the Assured, Owners, Managers or Superintendents or any of their onshore management.
6.3. Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause 6 should they hold shares in the Vessel.
7. Pollution Hazard.
This insurance covers loss of or damage to the Vessel caused by any governmental authority acting under the powers vested in it to prevent or mitigate a pollution hazard or damage to the environment, or threat thereof, resulting directly from damage to the Vessel for which the Underwriters are liable under this insurance, provided that such act of governmental authority has not resulted from want of due diligence by the Assured, Owners or Managers to prevent or mitigate such hazard or damage, or threat thereof. Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause 7 should they hold shares in the Vessel.
8. 3/4th Collision Liability.
8.1. The Underwriters agree to indemnify the Assured for three-fourth of any sum or sums paid by the Assured to any other person or persons by reason of the Assured becoming legally liable by way of damages for
8.1.1. loss of or damage to any other vessel or property on any other vessel
8.1.2. delay to or loss of use of any such other vessel or property thereon
8.1.3. general average of, salvage of, or salvage under contract of, any such other vessel or property thereon,
where such payment by the Assured is in consequence of the Vessel hereby insured coming into collision with any other vessel.
8.2. The indemnity provided by this Clause 8 shall be in addition to the indemnity provided by the other terms and conditions of this insurance and shall be subject to the following provisions:
82.1. where the insured Vessel is in collision with another vessel and both vessels are to blame, then unless the liability of one or both vessels becomes limited by law, the indemnity under this Clause 8 shall be calculated on the principle of cross-liabilities as if the respective Owners had been compelled to pay to each other such proportions of each other’s damages as may have been properly allowed in ascertaining the balance of sum payable by or to the Assured in consequence of the collision,
8.2.2. in no case shall the Underwriters’ total liability under Clauses 8.1. and 8.2. exceed their proportionate part of three-fourths of the insured value of the Vessel hereby insured in respect of any one collision.
8.3. The Underwriters will also pay three-fourths of the legal costs incurred by the Assured or which the Assured may be compelled to pay in contesting liability or taking proceedings to limit liability, with the prior written consent of the Underwriters.
8.4. Provided always that this Clause 8 shall in no case extend to any sum which the Assured shall pay for or in respect of
8.4.1. removal or disposal of obstructions, wrecks, cargoes or any other thing whatsoever;
8.4.2. any real or personal property or thing whatsoever except other vessels or property on other vessels
8.4.3. the cargo or other property on, or the engagements of, the insured Vessel;
8.4.4. loss of life, personal injury or illness;
8.4.5. pollution or contamination, or threat thereof, of any real or personal property or thing whatsoever (except other vessels with which the insured Vessel is in collision or property on such other vessels) or damage to the environment, or threat thereof, save that this exclusion shall not extend to any sum which the Assured shall pay for or in respect of any salvage remuneration in which the skill and efforts of the salvors in preventing or minimising damage to the environment as is referred to Article 13 paragraph 1 (b) of the International Convention on Salvage, 1989 have been taken into account.
Should the Vessel hereby insured come into collision with or receive salvage services from another vessel belonging wholly or in part to the same Owners or under the same management, the Assured shall have the same rights under this insurance as they would have were the other vessel entirely the property of Owners not interested in the Vessel hereby insured; but in such cases the liability for the collision or the amount payable for the services rendered shall be referred to a sole arbitrator to be agreed upon between the Underwriters and the Assured.
10. General Average and Salvage
10.1. This insurance covers the Vessel’s proportion of salvage, salvage charges and/or general average, reduced in respect of any under-insurance, but in case of any general average sacrifice of the Vessel the Assured may recover in respect of the whole loss without first enforcing their right of contribution from other parties.
10.2. Adjustment to be according to the law and practice at the place where adventure ends, as if the contract of affreightment contained no special terms upon the subject; but where the contract of affreightment so provides the adjustment shall be according to the York-Antwerp Rules.
10.3. When the Vessel sails in ballast, not under charter, the provisions of the York-Antwerp Rules, 1994 (excluding Rules XI (d), XX and XXI) shall be applicable, and the voyage for this purpose shall be deemed to continue from the port or place of departure until the arrival of the Vessel at the first port or place thereafter other than a port or place of refuge or a port or place of call for bunkering only. If at any such intermediate port or place there is an abandonment of the adventure originally contemplated the voyage shall thereupon be deemed terminated.
10.4. No claim under this Clause 10 shall in any case be allowed where the loss was not incurred to avoid or in connection with the avoidance of a peril insured against.
10.5. No claim under this Clause 10 shall in any case be allowed for or in respect of
10.5.1. special compensation payable to a salvor under Article 14 of the International Convention on Salvage, 1989 or under any other provision in any statute, rule, law or contract which is similar in substance;
10.5.2. expenses or liabilities incurred in respect of damage to environment, or the threat such damage, or as a consequence of escape or release of pollutant substances from the Vessel, or the threat of such escape or release.
10.6. Clause 10.5. shall not however exclude any sum which the Assured shall pay to salvors for or in respect of salvage remuneration in which the skill and efforts of the salvors in preventing or minimising damage to the environment as is referred to in Article 13 paragraph 1 (b) of the International Convention on Salvage, 1989 have been taken into account.
11. Duties of Assured (Sue & Labour)
11.1. In case of any loss or misfortune it is the duty of the Assured and their servants and agents to take such measures as may be reasonable for the purpose of averting or minimising a loss which would be recoverable under this insurance.
11.2. Subject to the provisions below and to Clause 12 the Underwriters will contribute to charges properly and reasonably incurred by the Assured their servants or agents for such measures. General average, salvage charges (except as provided for in Clause 11.5.), special compensation and expenses as referred to in Clause 10.5. and collision defence and attack costs are not recoverable under this Clause 11.
11.3. Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.
11.4. When expenses are incurred pursuant to this Clause 11 the liability under this insurance shall not exceed the proportion of such expenses that the amount insured hereunder bears to the value of the Vessel as stated herein, or to the sound value of the Vessel at the time of the occurrence giving rise to the expenditure if the sound value exceeds that value. Where the Underwriters have admitted a claim for total loss and property insured by this insurance is saved, the foregoing provisions shall not apply unless the expenses of suing and labouring exceed the value of such property saved and then shall apply only to the amount of the expenses which is in excess of such value.
11.5. When a claim for total loss of the Vessel is admitted under this insurance and expenses have been reasonably incurred in saving or attempting to save the Vessel and other property and there are no proceeds, or the expenses exceed the proceeds, then this insurance shall bear its pro rata share of such proportion of the expenses, or of the expenses in the excess of the proceeds. As the case may be, as may reasonably be regarded as having been incurred in respect of the Vessel, excluding all special compensation and expenses as referred to in Clause 10.5.; but if the Vessel be insured for less than its sound value at the time of the occurrence giving rise to the expenditure, the amount recoverable under this clause shall be reduced in the proportion to the under-insurance.
11.6. The sum recoverable under this Clause 11 shall be in addition to the loss otherwise recoverable under this insurance but shall in no circumstances exceed the amount insured under this insurance in respect of the Vessel.
12.1. No claim arising from a peril insured against shall be payable under this insurance unless the aggregate of all such claims arising out of each separate accident or occurrence (including claims under Clause 8, 10 and 11) exceeds the deductible amount agreed in which case this sum shall be deducted.