- It is a condition precedent to the liability of the Association for any claim in respect of damage to the property of the Member that the claim is lodged with the Association within 12 months of the Member becoming aware of the existence of the damage concerned. If this condition precedent is not complied with, then the liability of the Association in respect of the claim concerned shall be extinguished.
- Unless otherwise recorded in the Certificate of Entry:
- if this entry is direct insurance, then the Claims Cooperation Clause (A) or (B) appearing in the Annex shall apply, and
- if this entry is reinsurance, then the Claims Control Clause appearing in the Annex shall apply.
- No other Clause appearing in the Annex shall apply to this insurance unless specifically incorporated herein by the Certificate of Entry.
- Want of due diligence
- If liabilities, losses or expenses are incurred as a result of want of due diligence by the Member, his managers, superintendents or onshore management, then the Directors may, in their discretion, reject or reduce the liability of the Association to the Member to the extent that such want of due diligence has, in their opinion, caused the liabilities, losses or expenses incurred.
- In exercising their discretion under paragraph 4.1 of this Rule the Directors may take into account any failure by the Member, his managers, superintendents or onshore management to comply with recommendation(s) in connection with the operation of the insured ship which may have been made in any Circular or Risk Bulletin published by the Association and published on its website the burden being on the Member to show that the liability, loss or expense could not have been avoided by compliance with such recommendation (s).