Rule 34 Cancellation for Non-payment


  1. Without prejudice to any other provision whatsoever of the Rules if the Association has not received from a Member, within the time permitted by the Association, payment in full of any amount (whether by the way of call contribution, deductible survey fee, premium, additional premium, interest or of any other sum whatsoever), which the Association has stated to be due to it and has required the Member to pay, the Managers may give the Member notice in writing:
    1. referring to this Rule,
    2. requiring him to pay such amounts by the date specified in such notice, not being less than seven days from the date on which the notice is given, and
    3. informing him that if he fails to pay such amount in full on or before the date so specified, his insurance in respect of any ship in relation to which payment of that amount was required, together with, if the Managers in their discretion so specify, his insurance in respect of any or all other ships entered in the Association by him or on his behalf in any Class, shall be cancelled forthwith at the end of the date so specified without further notice or other formality.
  2. If a Member fails to comply with the requirements set out in any notice issued by the Managers in accordance with General Rule 34.1, the Member’s insurance shall be cancelled as specified in such notice, irrespective of whether the insurance is current at the date of the cancellation or has by then ceased, been terminated or cancelled in accordance with any other provision of the Rules, and the remainder of this rule shall apply.
  3. With effect from the date of cancellation the Association shall cease to be liable for any claim of whatsoever kind under the Rules in respect of any and all insurances specified in the notice under General Rule 34.1:
    1. irrespective of whether such claim has occurred or arisen or may arise by reason of any event which has occurred at any time prior to the date of cancellation, including during previous policy years,
    2. irrespective of whether such claim arises by reason of any event occurring after the date of cancellation,
    3. irrespective of whether the Association may prior to such event have made payment of or accepted liability, either expressly or by conduct or implication for such claim or appointed lawyers, surveyors or any other person to deal with such claim,
    4. irrespective of whether the Association at the date of or prior to the date of cancellation knew that such claims might or would arise,

    and as from the date of cancellation any liability of the Association for such claim shall terminate retrospectively and the Association shall be under no liability whatsoever in respect of the insurances so specified.

  4. When a Member’s insurance has been cancelled in accordance with General Rule 34.1:
    1. in relation to the policy period to which the cancellation refers all contributions, premiums and other sums payable in respect of such policy period shall be payable pro rata only for the period up to the date of cancellation,
    2. in relation to any policy period preceding that to which the cancellation refers, all contributions, calls, premiums and other sums of whatsoever kind shall be payable in full and non-returnable;PROVIDED ALWAYS that:
      1. Without prejudice to the generality of General Rule 35 no act, omission, course of dealing, forbearance, delay or indulgence of any kind by or on behalf of the Association (whether express or implied) or acceptance of liability for or the recognition of any claim, whether occurring before or after any such date of cancellation, shall derogate from the effect of General Rule 34 or be treated as any waiver of any of the Association’s rights whatsoever thereunder;
      2. the Directors may in their discretion, and upon such terms as they think fit, including, but not restricted to terms as to payment of calls, contribution, premium or other sum, admit either to terms as to payments of calls, contribution, premium or other sum, admit either in whole or in part any claim in respect of any ship entered by a Member for which the Association is under no liability by virtue of this Rule, whether such claim has arisen before or after the date of cesser or in their discretion, upon such terms they think fit, including a term that the Member shall remit wholly or partly any payment of call, contribution, premium or other sum due to the Association.
  5. This General Rule shall apply mutatis mutandis to a person who was, but is no longer, a Member.