Rule 4 Costs Insured

COSTS INSURED

Subject to Rule 3, the Member shall be insured by the Association in respect of the following costs:

  1. The cost incurred by a Member with the approval of the Managers for the purpose of obtaining legal or other advice in connection with any of the claims, disputes or proceedings specified in Rule 5.
  2. The costs of or incidental to any legal or other proceedings which a Member may take or defend with the approval of the Managers for the purpose of asserting or defending claims specified in Rule 5 including any such costs which the Member may become liable to pay to any other party to those proceedings.
  3. The costs of or incidental to any of the legal or other proceedings specified in sub-rules 11 and 12 of Rule 5 to which a Member may be a party or at which he may be represented, with the approval of the Managers, including any such costs which the Member may become liable to pay to any other party to those proceedings.If the Member shall incur liability or loss as a result of compliance with requirements of the Directors pursuant to Rule 5, sub-rule 4, then he shall be indemnified by Association in respect thereof.

    However, as regards costs of claims falling within sub-rule 3 of Rule 5 which are or which are deemed by Rule 7 to be covered by other insurances, then this insurance shall only cover the same proportion of such costs as the part of the claim not so insured or deemed to be insured bears to the total claim.