Rule 8 Other Risks Excluded

OTHER RISKS EXCLUDED

  1. The Association shall not insure a Member in respect of a ship entered by him against:
    1. loss of damage to such ship, or loss or damage to any equipment )including but not limited to navigational equipment, tackle, furniture, fittings, lashing and containers) and stores(including but not limited to fuel and lubricating oils or any other property of whatsoever nature which is not on an entered ship pursuant to a contract of carriage by sea,
    2. the cost and charges of or in relation in any manner whatsoever to the repair of such ship (except where this forms part of cargo’s or ship’s proportion of general average expenditure recoverable respectively under sub-rule 21 and 22 of Rule 4),
    3. loss of freight or hire relating to such ship (except where this forms part of the measure of damages payable by the Member and recoverable under sub-rule 19 of Rule 4),
    4. salvage of such ship (except life salvage or where salvage forms part of general average expenditure recoverable respectively under sub-rules 10, 21 and 22 of Rule 4).
    5. Loss arising out of the cancellation of a charter or other engagement of such ship,
    6. Bad debts or the direct or indirect consequences of insolvency or fraud or financial default of any person whatsoever including agents,
    7. Demurrage on or detention of or delay to such ship,
    8. The cost of forwarding passengers to their destination or returning them to their port of embarkation or of their maintenance ashore consequent upon a casualty to such ship,
    9. Notwithstanding sub-rule 23 punitive, exemplary or aggravated damages,
    10. Expenses incurred or payments made in relation to ransom demands, extortion, blackmail, bribery or other unlawful demands.
  2. Unless special cover shall have been agreed in writing between a Member and the Managers, the Association shall be under no liability for any claim relating to liability, loss or expense in respect of:
    1. an entered ship which is a salvage tug, fire-fighting ship or other ship used or designed or intended to be used for salvage operations, when the claim arises as a result of or during any salvage operations or attempted salvage operations other than salvage operations conducted by the ship solely for the purpose of saving or attempting to save life at sea;
    2. an entered ship being a drilling ship or barge or any other ship or barge employed to carry out drilling or production operations in connection with oil or gas exploration or production, to the extent that such liabilities and expenses arise out of or during drilling or production operations. An entered ship shall be deemed to be carrying out production operations if (inter alia) it is a storage tanker or other ship engaged in the storage of oil, and either:
      1. the oil is transferred directly from a producing well to the storage ship; or
      2. the storage ship has oil and gas separation equipment on board and gas is being separated from oil whilst on board the storage ship other than by natural venting.
    3. The performance of specialist operations including, but not limited to, dredging, blasting, pile driving, well-intervention, cable or pipe laying, construction, installation or maintenance work, core sampling, depositing of spoil, to the extent that such liabilities and expenses arise as a consequence of:
      1. claims brought by any party for whose benefit the work has been performed, or by any third party (whether connected with any party for whose benefit the work has been performed or not), in respect of the specialist nature of the operations and / or arising in the course of performing such specialist operations; or
      2. the failure to perform such specialist operations by the Member or the fitness for purpose and quality of the Member’s work, products or services, including any defect in the Member’s work, products or services; or
      3. any loss of or damage to the contract works; or
      4. any loss of or damage to other property, not being part of the contract works.
      PROVIDED ALWAYS that this exclusion shall not apply to liabilities, costs and expenses incurred by a Member in respect of:
      1. loss of life, injury or illness of crew and other personnel on board the insured ship, or,
      2. the wreck removal of the insured ship, or,
      3. oil pollution emanating from the insured ship or the threat thereof,
      but only to the extent that such liabilities, costs and expenses are otherwise covered by the Association in accordance with the Rules.
    4. The activities of professional or commercial divers when the Member is responsible for such activities other than, provided that special cover for such activities shall have been agreed in writing between a Member and the Managers, the following activities:
      1. activities arising out of salvage operations being conducted by an insured ship where the divers form part of the crew of that insured ship (or of diving bells or other similar equipment or craft operating from the insured ship) and where the Member is responsible for the activities of such divers,
      2. incidental diving activities carried out in relation to the inspection, repair or maintenance of the insured ship or in relation to damage caused by the insured ship.
    5. Waste incineration or disposal operations carried out by the insured ship (other than any such operations carried out as an incidental part of other commercial activities).
    6. The operations of submarines, mini-submarines or diving bells.
    7. An insured ship being a semi-submersible heavy lift ship or other ship designed exclusively for the carriage of heavy lift cargo where the claim arises out of the loss of or damage to or wreck removal of cargo, unless the cargo is being carried under a contract on unamended Heavycon terms or any other contract approved by the Managers in writing.
    8. Liabilities, costs and expenses incurred by a Member in respect of personnel (other than marine crew) on board an entered accommodation vessel employed otherwise than by the Member where there has not been a contractual allocation of risks as between the Member and the employer of the personnel which has been approved by the Managers.
    9. Liabilities, costs and expenses incurred by a Member in respect of hotel and restaurant guests and other visitors and catering crew of the Entered Ship when moored (otherwise than on a temporary basis) and open to the public as a hotel, restaurant, bar or other place of entertainment.
    10. PROVIDED ALWAYS THAT special cover for any of the risks excluded by Rule 8.2 may be agreed between the Member and the Managers in accordance with the Rules.