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. Navigation
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.
2. Continuation.
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. Classification.
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.
5. Termination.
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. Perils.
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
6.1.4. jettison
6.1.5. piracy
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.
Exclusions
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.
9. Sistership
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. Deductible
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.
Nevertheless the expense of sighting the bottom after stranding, if
reasonably incurred specially for that purpose, shall be paid even if no
damage be found. This Clause 12 shall not apply to a claim for total loss
or constructive loss of the Vessel or, in the event of such a claim, to any
associated claim under Clause 11 arising from the same accident or
occurrence.
12.2. Claims for damage by heavy weather occurring during a single sea
passage between two successive ports shall be treated as being due to one
accident. In the case of such heavy weather extending over a period not
wholly covered by this insurance the deductible to be applied to the claim
recoverable hereunder shall be the proportion of the above deductible that
the number of days of such heavy weather falling within the period of this
insurance bears to the number of days of heavy weather during the single
sea passage. The expression «heavy weather» in this Clause 12.2. shall be
deemed to include contact with floating ice.
12.3. Excluding any interest comprised therein, recoveries against any
claim which is subject to the above deductible shall be credited to the
Underwriters in full to the extent of the sum by which the aggregate of the
claim unreduced by any recoveries exceeds the above deductible.
12.4. Interest comprised in recoveries shall be apportioned between the
Assured and the Underwriters, taking into account the sums paid by the
Underwriters and the dates when such payments were made, notwithstanding
that by the addition of interest the Underwriters may receive a larger sum
than they have paid.
13. Notice of Claim and Tenders
13.1. In the event of accident whereby loss or damage may result in a claim
under this insurance, notice must be given to the Underwriters promptly
after the date on which the Assured, Owners or Managers become or should
have become aware of the loss or damage and prior to survey so that a
surveyor may be appointed if the Underwriters so desire.
If notice is not given to the Underwriters within twelve months of that
date unless the Underwriters agree to the contrary in writing, the
Underwriters will be automatically discharged from liability for any claim
under this insurance in respect of or arising out of such accident or the
loss or damage.
13.2. The Underwriters shall be entitled to decide the port to which the
Vessel shall proceed for docking or repair (the actual additional expense
of the voyage arising from compliance with the Underwriters’ requirements
being refunded to the assured) and shall have a right of veto concerning a
place of repair or a repairing firm.
13.3. The Underwriters may also take tenders or may require further tenders
to be taken for the repair of the Vessel. Where such a tender has been
taken and a tender is accepted with the approval of the Underwriters, an
allowance shall be made at the rate of 30% per annum on the insured value
for the time lost between despatch of the invitations to tender required by
the Underwriters and the acceptance of a tender to the extent that such
time is lost solely as a result of tenders having been taken and provided
that the tender is accepted without delay after receipt of the
Underwriters’ approval.
Due credit shall be given against the allowance as above for any amounts
recovered in respect of fuel and store and wages and maintenance of the
Master Officers and Crew or any member thereof, including amounts allowed
in general average, and for any amounts recovered from third parties in
respect of damages for detention and/or loss of profit and/or running
expenses, for the period covered by the tender allowance or any part
thereof.
Where a part of the cost of the repair of damage other than a fixed
deductible is not recoverable from the Underwriters the allowance shall be
reduced by a similar proportion.
13.4. In the event of failure by the Assured to comply with the conditions
of Clauses 13.2. and/or 13.3. a deduction of 15% shall be made from the
amount of the ascertained claim.
14. New for Old
Claims payable without deduction new for old.
15. Bottom Treatment
In no case shall a claim be allowed in respect of scraping gritblasting and
/or other surface preparation or painting of the Vessel’s bottom except
that
15.1. gritblasting and/or other surface preparation of new bottom plates
ashore and supplying and applying any «shop» primer thereto,
15.2. gritblasting and/or other surface preparation of:
the butts or area of plating immediately adjacent to any renewed or
refitted plating damaged during the course of welding and/or repairs,
areas of plating damaged during the course of fairing, either in place
or ashore,
15.3. supplying and applying the first coat of primer/anti-corrosive to
those particular areas mentioned in 15.1. and 15.2. above,
shall be allowed as part of the reasonable cost of repairs in respect of
bottom plating damaged by an insured peril.
16. Wages and Maintenance
No claim shall be allowed, other than in general average, for wages and
maintenance of the Master Officers and Crew or any member thereof, except
when incurred solely for the necessary removal of the Vessel from one port
to another for the repair of damage covered by the Underwriters, or for
trial trips for such repairs, and then only for such wages and maintenance
as are incurred whilst the Vessel is under way.
17. Agency Commission
In no case shall any sum be allowed under this insurance either by way of
remuneration of the Assured for time and trouble taken to obtain and supply
information or documents or in respect of the commission or charges of any
manager, agent, managing or agency company or the like, appointed by or on
behalf of the Assured to perform such services.
18. Unrepaired Damage
18.1. The measure of indemnity in respect of claims for unrepaired damage
shall be reasonable depreciation in the market value of the Vessel at the
time this insurance terminates arising from such unrepaired damage, but not
exceeding the reasonable cost of repairs.
18.2. In no case shall the Underwriters be liable for the unrepaired damage
in the event of a subsequent total loss (whether or not covered under this
insurance) sustained during the period covered by this insurance or any
extension thereof.
18..3. The Underwriters shall not be liable in respect of the unrepaired
damage for more than the insured value at the time this insurance
terminates.
19. Constructive Total Loss
19.1. In ascertaining whether the vessel is a constructive total loss, the
insured value shall be taken as the repaired value and nothing in respect
of the damage or break-up value of the Vessel or wreck shall be taken into
account.
19.2. No claim for constructive total loss based upon the cost of recovery
and/or repair of the Vessel shall be recoverable hereunder unless such cost
would exceed the insured value. In making this determination, only the cost
relating to a single accident or sequence of damages arising from the same
accident shall be taken into account.
20. Freight Waiver
In the event of total or constructive loss no claim to be made by the
Underwriters for freight whether notice of abandonment has been given or
not.
21. Assignment
No assignment of or interest in this insurance or in any moneys which may
be or become payable thereunder is to be binding on or recognised by
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