Rule 5 Matters Covered


Subject to Rules 7 and 8, the cover provided hereunder shall relate solely to the following categories of claims, disputes or proceedings relating to the entered ship:

  1. Claims under any charterparty, bill of lading, waybill, contract of affreightment or similar contract relating to the entered ship or to the carriage of goods in or to the trading of the entered ship generally, including but not limited to the exercise or assertion of any rights arising thereunder or generally including but not limited to the right of withdrawal, exercise of a lien, and claims arising therefrom, claims and disputes concerning hire, off-hire, set-off, freight, deadfreight, laytime, demurrage and/or damages for detention, despatch, speed, performance and description of vessel, port safety and orders given to the entered ship.
  2. Claims in respect of detention of the entered ship by third parties (including detention consequent from damage to the entered ship) and in respect of interference, neglect, default or any other cause whatsoever involving detention of or loss of or damage to the entered ship by any Department of State, authority, public body or other person or persons whatsoever connected with maritime business;

    PROVIDED ALWAYS that the Directors may require a Member to cause the entered ship to remain where she is for the purpose of testing the legality of such detention and if the Member shall comply with any such requirement the Member shall be insured by the Association against any liability incurred to third parties consequent on such compliance and against any actual loss sustained by a Member during a period of such compliance to the extent that such loss is not otherwise recoverable, but not exceeding such sums as the Directors in their sole and absolute discretion may from time to time decide.

  3. Claims in respect of supply of inferior or unsatisfactory or unsuitable fuel, materials or equipment, or other necessaries or for negligent repair of or alteration to the entered ship;
    PROVIDED ALWAYS that in relation to disputes about fuel quality, the member has subscribed to and used the Fuel Oil Bunker Analysis and Advisory Service or an equivalent scheme for the proper taking of samples of the fuel concerned and for the analysis of such samples.
  4. Claims in respect of overcharges in accounts in relation to the entered ship howsoever arising.
  5. Claims in respect of the cancellation of a charter party or like contract in respect of the entered ship.
  6. Claims in respect of improper loading, lightening, stowage, trimming or discharging of cargo on or from the entered ship.
  7. Claims for amounts due under policies of insurance on the entered ship and/or cargo and/or freight thereon;
    PROVIDED ALWAYS that there shall be no coverage in respect of claims by or against the Association.
  8. Claims in respect of salvage and/or towage services rendered by the entered ship unless the entered ship is entered as a tug or salvage vessel.
  9. Representation of the Member at official investigations, Coroners’ inquests or other enquiries whatsoever in relation to the entered ship.
  10. Claims by or against passengers, stowaways, refugees, masters. Crew and other persons on or about the entered ship.
  11. Claims in respect of general and/or particular average contributions or charges.
  12. Claims arising in connection with any contract for or the building, conversion, purchase, sale or mortgage of the entered ship;


    1. In respect of the building or conversion of a ship that the vessel has been insured for Builder’s Risks at the time when the contract is signed or when the vessel’s keel is laid, or equivalent work done, and that the building contract and insurance for Builders’ Risks shall have been approved by the Managers at the time of entry;
    2. in respect of the purchase of a second hand vessel that the entry of that vessel commenced as at the date of signing of such contract.
  13. Claims by or against revenue or customs authorities in connection with the entered ship.
  14. All such claims and disputes and all cost of legal or other proceedings ( other than those specified in the foregoing paragraphs of this Rule) as the Managers in their discretion decide are within the scope of this Class;

    PROVIDED ALWAYS that in relation to any and to all of the matters referred to in sub-rules 1 to 14 of this Rule, the Association shall be under no liability in respect of any legal or other proceedings commenced or defended without the prior written approval of the Managers, the Managers having discretion as to what cases may be taken up, as to the conduct thereof and as to the discontinuance or settlement of cases which have already been taken up with the Association’s approval.

    If the Managers in their discretion decide that it is not appropriate for a member to be supported by the Association in connection with any claim or dispute or proceedings having regard solely to the cost likely to be incurred in such proceedings as compared with the amount in dispute then the Managers may in their discretion (as an alternative to refusing to support the Member in such proceedings) pay to the Member out of the funds of this Class of the Association the whole or any part of the claim by or against the Member as the Managers may think fit. If such a payment is tendered by the Association, then the liability of the Association in respect of the claim, dispute or proceedings shall thereupon cease.