ASSIGNMENT AND SUBROGATION
- No person shall assign his cover with the Association or the benefits thereof:
- to charterers, or
- to any other person whatsoever except as provided in sub-rule 3.
No such purported assignment shall bind the Association in any way whatsoever.
- No benefit of this cover shall accrue directly or indirectly to any other person through subrogation.
- No assignment of any interest under these Rules shall have any effect unless and until the Assignor shall have notified the same to the Managers in writing fully identifying the Assignee and his address and the Managers shall in their discretion have approved the assignment in writing. On receipt of notice of such assignment the Association shall be entitled to cancel the entry in respect of which such Assignment has been made by giving fourteen days notice in writing to the Assignor and Assignee and upon expiry of such notice the cover afforded in respect of the ship shall cease. In any event the Association shall be entitled, in settling any claim presented by an Assignee, to deduct or retain such amount as the Managers may then estimate to be sufficient to discharge any liability of the Assignor existing at the time of the assignment or which has arisen or is likely to arise thereafter.
- When a claim is paid by the Association whether under these Rules or otherwise the Association shall be subrogated to all rights and remedies in respect of that claim which the Member may have against any third party. The Association shall be entitled to use the name of the Member in bringing, defending, enforcing or settling legal proceedings (including proceedings in any arbitration) and the Member shall give all necessary information and assistance and produce and forward all documents to enable the Association to substantiate, settle or resist any claim. If the Associate uses the name of the Member, it shall indemnify him against all cost, charges, expenses and liabilities incidental thereto arising therefrom.
- The Member shall, if requested by the Association, execute forthwith a formal assignment of all or any of the Member’s such rights and remedies to the Association or execute a formal deed of subrogation.