General Provisions

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General Provisions

G1 applies to your entire policy - unless otherwise stated

1 General Exclusions

We do not insure you for risks arising from, or to the extent that a risk is increased by:

1.1 Radioactive/nuclear risks

1.2 Landfill, operation/use of dump site or disposal of waste which you perform or permit other than carriage, handling or storage of cargo prior to its disposal as waste

1.3 Dredging (while being performed) and dumping of spoil

1.4 Your failure to pay your debts

1.5 Your insolvency

1.6 Your involvement in illegal trade - about which you knew or reasonably should have known

1.7 Your intentional/reckless conduct

1.8 Punitive, exemplary or multiple damages - against you or anyone for whose conduct you are liable  

1.9 Your waiving your rights of recourse - or where you have previously contracted to waive these rights

1.10 Your management/operation of an airport - or area/building where aircraft land or manoeuvre or are housed, maintained or repaired

1.11 Asbestos  

1.12 Chemical, biological, bio-chemical or electromagnetic weapons

1.13 Cyber attack

1.14 Products liability

1.15 Building/construction works on or to land or insured property which you own, lease or occupy, whether or not carried out during your period of insurance

1.16 Erosion/subsidence whether or not to your own land or property

2 Liability Exclusions

We do not insure you for liabilities, whether arising directly or by way of indemnity or guarantee, to the extent that they are:

2.1 incurred or increased under a provision in a contract:

2.1.1 that you incur liability without fault or negligence or

2.1.2 which, at the time the contract was agreed, could not reasonably have been complied with

2.2 incurred under a national law or international convention as a result of a declaration of value or a declaration of special interest in delivery or some other measure which you accept and which increases the compensation otherwise payable under the national law or international convention.

2.3 liquidated damages

3 Pollution  

We do not insure you for risks arising from pollution or clean-up costs of any type however caused, including liabilities to others, fines, and whether or not under international convention, unless:

3.1 the risk arises from an accident which occurred within your period of insurance and

3.2 the claim is made against you within one year from the accident and

3.3 the pollution is sudden, unintended and unexpected and

3.4 you are aware of the pollution within one week of the first occurrence - unless arising from cargo not in your possession

4 Sanctions

4.1 We do not insure you and we will not be liable to pay any claim or provide any benefit (including any refund of premium or any other sum) to the extent that the provision of the cover or benefit, or payment of the claim or provision would or might subject us (or our insurers /reinsurers or financial institutions) to the imposition of sanctions under, or would be in violation of, any economic, trade, financial or related sanctions or embargoes:

4.1.1 administered/enforced by the US Department of the Treasury Office of Foreign Assets Control (OFAC) the US Department of State or any other department or agency of the US government or

4.1.2 imposed pursuant to:

a. United Kingdom law
b. United Nations resolutions or
c. laws, rules, regulations, orders, decisions, directives, or common positions of the European Union (EU) or of any EU member state or
d. equivalent legislation imposed by any other national or inter-national body.

4.2 Without prejudice to 4.1 above, we will have no liability under or in respect of any certificates or other evidences of insurance certifying or evidencing coverage for any transaction, shipment, or claim in violation of, or sanctionable under, any of the sanctions or embargoes specified at 4.1. Such certificates and other evidences of insurances will not be binding on us or provide proof of insurance cover in respect of any such transaction, shipment or claim.

4.3 Without prejudice to any other provisions in your policy, the Directors may in their discretion give you notice that your insurance will cease immediately if you have exposed or will expose us (or our insurers/reinsurers or financial institutions) to a risk of being or becoming subject to any sanctions or embargoes specified at 4.1, or to any adverse action by a competent authority or government in respect of any sanctions or embargoes specified at 4.1.

5 Interest in Ship/Aircraft

5.1 Where you have an interest in a ship/aircraft, we do not insure you for any risk arising while cargo (whether or not you contract to provide insured services in respect of it):

5.1.1 is on, or is being loaded on to or unloaded from the ship/aircraft 

5.1.2 is being handled in the port or airport area in furtherance of loading, carriage or discharge

5.2 We do not insure you for breach of warranty for berth/port safety

5.3 You have an interest in a ship/aircraft if you own or operate it, or charter it except as stated at 5.4

5.4 You do not have an interest in a ship/aircraft for the purposes of this paragraph if:

5.4.1 You charter the ship under a slot or space charter and you contract with the ship operator on terms which are no more adverse than Hague-Visby Rules or any compulsorily applicable transport law or convention

5.4.2 You charter the aircraft and:

a. you do not manage, navigate or operate the aircraft and
b. you contract with the aircraft operator on terms which are no more adverse than the Warsaw/Montreal Convention or any compulsorily applicable transport law or convention and
c. you do not load or unload the aircraft

6 Liens

We do not insure you for any risk arising from the application of a lien, unless the risk is incurred in mitigation of an insured claim and the Managers have agreed in advance to its being incurred

7 Communicable Disease

7.1 In the event that the World Health Organisation (WHO) has determined an outbreak of a communicable disease to be a Public Health Emergency of International Concern (a declared communicable disease), no coverage will be provided under your insurance for any risk directly arising from any transmission or alleged transmission of the declared communicable disease.

7.2 The exclusion at 7.1 will not apply to your cover where the risk directly arises from an identified instance of a transmission of a declared communicable disease and you prove that the identified instance took place before the date of determination by the WHO of the declared communicable disease.

7.3 However even if the requirements of 7.2 are met, no coverage will be provided for any:

7.3.1 liability or costs to indemnify, clean up, detoxify, remove, monitor, or test for the declared communicable disease, whether the measures are preventative or remedial

7.3.2 risk arising out of any loss of revenue, loss of hire, business interruption, loss of market, delay or any indirect financial loss, howsoever described, as a result of the declared communicable disease

7.3.3 risk caused by or arising out of fear of or the threat of the declared communicable disease.

7.4 For the purposes of this paragraph (7), communicable disease means any disease, known or unknown, which can be transmitted by means of any substance or agent from any organism to another organism where:

7.4.1 the substance or agent includes a virus, bacterium, parasite or other organism or any variation or mutation of any of the foregoing, whether deemed living or not, and

7.4.2 the method of transmission, whether direct or indirect, includes human touch or contact, airborne transmission, bodily fluid transmission, transmission to or from or via any solid object or surface or liquid or gas, and

7.4.3 the disease, substance or agent may, acting alone or in conjunction with other co-morbidities, conditions, genetic susceptibilities, or with the human immune system, cause death, illness or bodily harm or temporarily or permanently impair human physical or mental health or adversely affect the value of or safe use of property of any kind.

7.5 This paragraph (7) does not cover any risk for which you would not have been insured had the paragraph not been included. This paragraph is subject to G2:44.

G2 applies to your entire policy - unless otherwise stated

1 Abandonment

There will be no abandonment to us of any property

2 Assignment

2.1 You will not assign your insurance (or any interest under it) unless and to the extent that the Managers agree  

2.2 Any purported assignment which is made without the Managersagreement (or which does not comply with any terms which the Managers require) will be void

2.3 We may, in settling a claim presented by an assignee, retain an amount which the Managers in their discretion estimate as sufficient to discharge the assignor’s liabilities to us which:

2.3.1 are in existence at the time of the assignment or

2.3.2 have arisen later or

2.3.3 the Managers believe will arise later

2.4 We may retain an amount as at 2.3 whether or not retention is stipulated as a term of the Managersagreement to the assignment

3 Assured and Joint Assureds

3.1 There is only one assured under each policy as designated in the certificate. Anyone else insured under the same policy is a joint assured (or co-assured)

3.2 If anyone becomes a joint assured only by virtue of a contractual term, cover will be limited to the terms specifically contained in the contract, provided that cover will not in any event exceed the extent of the cover contained in your policy

4 Audit

4.1 The Managers may examine your books and records at any time during your insurance, and for three years afterwards, as far as they relate to your insurance (without prejudice to 31 below)

4.2 If you fail to cooperate with the Managers as at 4.1 we may avoid the insurance

5 Benefit of the Insurance

We do not intend to confer any benefit of this insurance on any third party not specifically identified in the certificate and to this extent the UK Contracts (Rights of Third Parties) Act 1999 and any amending legislation is excluded

6 Brokers

Your insurance broker:

6.1 is your agent, not ours and

6.2 has no authority to issue or confirm policies on our behalf to anyone

7 Cancellation: Cause

7.1 If we do not receive an amount due or declaration from you in due time the Managers may (in addition to our rights specified at 12 & 27 below) give notice requiring you to pay (or make the declaration) by a specified date within not less than seven days from the date the notice is served

7.2 If we do not receive full payment (or the declaration) by the date specified at 7.1, your insurance for the relevant account year is cancelled immediately and without further formality

7.3 If the insurance has previously ceased under 9 below, these paragraphs 7 and 8 below will supersede 10 below

8 Cancellation: Effect

8.1 In the event of cancellation as at 7 above below, you remain liable for amounts due from you to us - whether levied before or after cancellation

8.1.1 If premium is a lump sum or deposit subject to a minimum - you will pay the lump sum or minimum premium in full - if already paid no part will be repayable

8.1.2 Otherwise than at 8.1.1 - premium will be calculated pro rata up to cancellation

8.2 We cease to be liable for claims in respect of accidents occurring during the relevant account year which are unpaid at the date of cancellation. This applies whether we have admitted responsibility or appointed a lawyer, surveyor or other expert - or not

8.3 The Directors may admit claims excluded as at 8.2 on terms in their discretion

8.4 If we receive the amount due (or declaration) after cancellation, the Managers in their discretion may reinstate the insurance - but you will not be insured, unless the Directors in their discretion decide otherwise, for claims arising out of accidents occurring between the date of cancellation and the date of reinstatement

8.5 To the extent this paragraph and the following paragraph are construed as creating a warranty, section 10 of the UK Insurance Act 2015 (or as amended), does not apply. Accordingly, you will not be able to avail yourself of the defence that you have remedied the breach under this paragraph (8)

9 Cesser: Cause

9.1 We immediately cease to insure you on:

9.1.1 your winding up/bankruptcy, unless the Directors in their discretion decide otherwise

9.1.2 termination of your insured services

9.1.3 your ceasing to have an insurable interest in the subject matter of the insurance

9.1.4 your death or mental incapacity - in the case of an individual

9.1.5 failure to agree a change in terms on a review date or expiry of a continuation period as at 34.3 below

9.2 The Directors may give you notice that your insurance will cease:

9.2.1 immediately if you have exposed us to a risk in respect of sanctions or embargoes as at G1:4.3

9.2.2 in any case not less than 30 days from the date on which notice  is given

9.3 The Managers may give you notice that your insurance will cease:

9.3.1 on a review date not later than one month in advance as at 34.1 below 9.3.2 within 30 days if you fail to comply with the conditions in respect of surveys as at 43.2 below

10 Cesser: Effect

10.1 This paragraph (10) applies where we cease to insure you as stated at 9 above. For the avoidance of doubt, it does not apply if your cover is cancelled as set out at 7 and 8 above

10.2 You remain liable for amounts due from you to us - whether levied before or after cessation

10.3 We remain liable for claims arising from accidents on or before the date of cessation

10.4 Unless 10.5 applies, we will calculate refund of premium pro rata up to cessation

10.5 In the following cases you will be liable for any lump sum or minimum premium in full:

10.5.1 We cease to insure you under 9.1.1 (winding up/bankruptcy)

10.5.2 We cease to insure you under any other subparagraph at 9 and:

a. there is a claim on your policy during the account year in which cesser occurs or
b. you know or reasonably should have known on the date of cesser of an accident likely to result in a claim during the account year in which cesser occurs

10.6 We will not reimburse any premium under 9.1.3 if you cease to have an insurable interest in an item of insured equipment or property solely because the item has been lost or damaged, and not repaired or replaced, as the result of an insured accident

11 Claims for Amounts Due

You will claim (in writing) amounts due to you from us (including repayment of premium) within six months from the end of the account year to which the claim relates - otherwise your claim is absolutely barred. This paragraph does not apply to the presentation of claims for reimbursement where G3.3 applies

12 Claims Held

If we do not receive an amount due or declaration from you in due time we may withhold any payments due from us to you until the amount due or declaration is received

13 Confirmation of Insurance

If you request us to confirm insurance to someone else, our confirmation:

13.1 is only for information

13.2 confers no rights on the person to whom we make it

13.3 does not extend or amend the insurance

14 Continuous Contract

Every insurance is a continuous contract and terms continue unchanged from one year to the next - unless otherwise agreed, and subject to 7-10 above and 34 below

14.1 This is not affected by the issue of subsequent policies

14.2 Policies apply from 0000 GMT on the commencement date specified in the certificate - unless another time is specified in your certificate  

15 Currency

If we pay a claim in a currency other than the Member currency, we will convert limits of liability and deductibles from the Member currency at the rate prevailing:

15.1 in respect of claims for physical loss or damage to assets, or business interruption: on the date of the loss  

15.2 in respect of claims other than as defined at 15.1: on the date on which you made payment

16 Deductibles

16.1 Deductibles are specified in your certificate  

16.2 Except as specified at 16.3/16.4, if there is more than one deductible for claims arising from the same accident only the highest one will apply

16.3 In the case of two or more of the following types of claim arising from the same accident a separate deductible will apply to each type of claim. (The highest deductible will apply, as at 16.2, if there is more than one deductible for any one of the following types of claim)

a. insured assets
b. business interruption
c. any other claim

16.4 Where the risks are under different covers, we will apply a separate deductible to each cover

16.5 Where a deductible applies to a claim, we will reduce the claim by subtracting the deductible, and pay the claim, as reduced, subject to any applicable limit

16.6 Claims for investigation and defence costs are subject to a nil deductible 

17 Discretion

17.1 Discretions, powers and duties in respect of your insurance may be exercisable by, or delegated to, us, the Directors or the Managers  

17.2 We, the Directors and the Managers:

17.2.1 may exercise, or refrain from exercising, any power or duty under the policy in our/their absolute discretion

17.2.2 will be the sole judge of the issues on which the discretion is based and this judgment will be final and binding

17.2.3 are under no obligation to disclose the reasons for the exercise of a discretion or to follow any particular procedure in exercising it

17.3 No act, omission or delay in enforcing the terms of your insurance will affect our rights and remedies under your policy and no waiver of a breach by you of the terms of your insurance will operate as a waiver of any subsequent breach. We may at all times and without notice insist on strict enforcement of the terms of your insurance

18 Documentation

In policy documentation:

18.1 Singular words include the plural - and vice versa

18.2 Words representing persons, eg anyone, another person, someone else, also include companies and associations

18.3 Capitals, italics, bold type and variable font sizes are used for clarity or emphasis, but are not relevant to the interpretation of the insurance

18.4 With the exception stated at 18.5, text is underlined in these wordings, for guidance only, to indicate that a word or phrase is included at Y1

18.5 “You”, “your”, “we”, “us”, and “our”, are defined at Y1. These meanings are consistent throughout our documentation and the words are not underlined in the text.

19 Other Insurance

If we and any other insurer(s) insure you for the same risk, we will exclude any claim to the extent that it is recoverable from the other insurer(s) or would be recoverable except for an other insurance term. This will in no way reduce the limit applicable under our insurance in excess of the limits provided by the other insurer(s). This paragraph (19) applies with equal force to costs, including investigation and defence.

20 Employees  

20.1 Without prejudice to the definition of you at Y1, we insure your employees for risks for which you would have been insured if you had incurred the risk, but only:

20.1.1 in connection with your insured services and

20.1.2 while performing duties within the scope of their employment for the purpose of providing your insured services

20.2 With the exception of your liability to your employee for loss of or damage to the employee’s property, we do not insure your employee, or anyone defined as you at Y1, for liabilities to you or to your employee (or to your other employee

21 English Language

If we issue a version of any part of your policy in a language other than English, this is for guidance only. The English version will take precedence in the event of any dispute or possible inconsistency

22 Eurozone

22.1 Where an amount in your policy is expressed in Euro, this indicates a choice of currency of the Eurozone as a whole, not of any member state within the Eurozone. In the event of any replacement of the Euro, introduction of a new currency, currency re-denomination or fixing of conversion rates by a member state, whether consequent on a withdrawal from the Eurozone or otherwise, we will deem any amounts expressed in Euro to be convertible into GBP at the pre-existing Eurozone rate. Any dispute as to the currency of this insurance contract shall be resolved exclusively by reference to the governing law of this contract as specified at 28 below.

22.2 Where it is necessary to identify a place of performance of the obligations in your policy, including in order to resolve any dispute as to the currency of the contract or as to jurisdiction, the place of performance is England

23 Fraudulent Claims  

23.1 If you, or anyone acting on your behalf, makes a claim or seeks to obtain any benefit under your insurance which you know, or should have known, is fraudulent, we:

23.1.1 will not be liable to pay any part of the claim  

23.1.2 may recover from you any sums which we have already paid in respect of the claim  

23.1.3 may by notice cancel your insurance from the time of the fraudulent act

23.2 If we exercise our right under 23.1.3

23.2.1 we will not be liable for any claim or loss occurring after the time of the fraudulent act

23.2.2 we will not return any premium  

23.2.3 you will pay in full any unpaid lump sum, deposit premium or instalment premium

24 Indemnity

Unless the Directors in their discretion decide otherwise we will indemnify you only after:

24.1 you have discharged your liability to third parties or

24.2 total loss of your insured asset or

24.3 you have repaired your insured asset following partial loss or

24.4 we have agreed reimbursement where you have opted not to repair your insured asset following partial loss or 

24.5 you have discharged your liabilities for losses or

24.6 you have paid costs  

25 Insurance Act 2015

In the event that there is a conflict between the terms of your insurance and any compulsorily applicable provisions of the UK Insurance Act 2015 (or as amended), the provisions of the Act will prevail to the extent of the inconsistency. This paragraph (25) will not apply if and to the extent that we have opted out of the provisions of the Insurance Act 2015

26 Insured Services

26.1 We only insure you for risks arising from your insured services as listed on your certificate  

26.2 We insure you for the following to the extent that they are solely in support of your insured services:

26.2.1 administration and sales/marketing activities

26.2.2 facilities for visitors at your insured location

26.3 26.2 above is subject to any exclusion elsewhere in your policy relating to liabilities to your employee  

27 Interest

We may charge you interest on amounts due not received by the due date. The rate is determined by the Directors in accordance with para 4.2 Part E Section 1 of the Bye-Laws

28 Law & Jurisdiction

28.1 Our insurance, and any other contract between you and us, is subject to English law. Every insurance which we provide and the rights and obligations of you (or anyone else) and us arising out of or in connection with the insurance is subject to and will be construed in accordance with English law

28.2 The courts of England will have exclusive jurisdiction to hear, settle or determine any dispute, controversy or claim (including any non-contractual dispute, controversy or claim) arising out of or in connection with our insurance or other contract between you and us, including any question regarding its existence, validity, formation or termination. For these purposes, we and you irrevocably submit to the jurisdiction of the English courts

28.3 28.1-28.2 also apply to disputes involving:

a. the Managers and Directors
b. anyone acting on our, or the Managers’ or the Directors’, behalf

29 Limits Structure

29.1 Total reimbursement in respect of any claim or claims arising from one accident or series of accidents will not exceed any of the following as stated in your certificate:

29.1.1 your policy limit

29.1.2 any applicable:

a. combined single limit

b. limit in the aggregate

c. other limit or sub limit

29.2 Total reimbursement in respect of a risk arising from a series of accidents arising from a cause or series of causes which are repeated, intermittent or continuous will not exceed the limit specified your certificate as applicable to a single accident  

29.3 If the insured values of your insured asset in respect of which a claim arises exceed the applicable limit specified in your certificate, the limit specified in your certificate will prevail

29.4 Limits are applied collectively to the assured and any joint assureds 

29.5 Where we agree in advance costs of recovery from a third party, the costs of this recovery action will be ignored for the purposes of calculating limits

29.6 A limit in the aggregate will be adjusted pro rata (up or down) in the case of an account year which lasts for more or less than 12 months

30 Limits where more than one Risk arises from one Accident

30.1 Where different limits are specified for different risks arising from the same accident, we will apply each limit to the part(s) of the claim for which it is specified. But total reimbursement of the claim, including reimbursement of the different risks in respect of which different limits are specified, will not exceed the highest of the specified limits

30.2 If there are aggregate limits under a clause and under a paragraph within the clause, claims under the paragraph will:

30.2.1 count towards the limit under the clause and

30.2.2 not exceed the lesser of the unexhausted limit against:

a. the clause or
b. the paragraph

31 Loss Prevention

31.1 You will:

31.1.1 allow the Managers to inspect your insured assets

31.1.2 comply with regulations applying to your insured equipment

31.1.3 not habitually or intentionally overload your insured equipment - except for inspection/testing or to comply with regulations  

31.1.4 comply with regulations, and industry/national standards, relating to vertical tandem lifts

31.1.5 maintain in good order, and use as appropriate, any protection provided for your insured assets

31.1.6 use your best endeavours to avoid or reduce risks of a claim under your assets clause

31.1.7 use your best endeavours to maintain your insured assets in accordance with manufacturers’ recommendations and manuals

31.1.8 comply with regulations relating to dangerous goods

31.1.9 comply with regulations, and industry/national standards, relating to safety, security/anti-terrorism and people smuggling

31.1.10 allow the Managers to inspect your operations

31.1.11 allow the Managers to have copies of your contracts

31.1.12 comply with the Managers’ reasonable requirement to implement loss prevention measures

31.1.13 maintain a tracking system allowing the location of insured equipment to be ascertained at any time

31.2 If you do not comply as at 31.1:

31.2.1 we may inform you, with at least 30 days notice, that your insurance is wholly or partly suspended until you do

31.2.2 the Directors may in their discretion reduce or reject a claim which results wholly or partly from the failure to comply

32 Material Information

32.1 Prior to entering a contract of insurance with us or to varying any contract of insurance with us, you will comply with the duty of fair presentation as set out in Sections 2-3 of the UK Insurance Act 2015 (or as amended). In the event that you breach the duty of fair presentation, we will be entitled to the remedies set out in Section 8 and Schedule 1 of the Act

32.2 We will also be entitled to the remedies as set out in Section 8 and Schedule 1 of the Act if you fail to inform the Managers of any material change in the information provided to us as at 32.1 which occurs during your period of insurance

33 Mutual Premium

The price for your insurance is a mutual premium - unless the Managers agree that it will be a fixed premium, or a combination of the two

34 Notice

34.1 Not later than one month in advance of the review date the Managers may give the assured, or the assured may give the Managers - notice that on the review date:

34.1.1 a change in terms may be required or

34.1.2 the insurance will cease

34.2 If notice is given as at 34.1.1 and no change is agreed by the review date:

34.2.1 the Managers may agree a continuation period - subject to agreed terms  

34.2.2 changes agreed during the continuation period will apply retrospectively from the review date - or as otherwise agreed  

34.3 Your insurance will cease automatically:

34.3.1 on the review date if no change or continuation period is agreed

34.3.2 on expiry of a continuation period if no change is agreed  

35 Overlapping Risks & Insured Services

35.1 Where we appear to insure a risk under more than one paragraph, we will insure it only under, and in accordance with, the paragraph which relates most directly to it

35.2 An express exclusion or qualification of a risk in one paragraph in your policy (whether or not by Additional Term & Condition) will override an inclusion or reference elsewhere in your policy

35.3 If we specifically exclude a risk in your policy, we do not insure you for it - even if the risk also arises in the course of your insured services

36 Paperless Trading

We insure you, subject to all other terms of your policy, for risks arising from your participation in any system of paperless trading/documentation approved by the Managers  

37 Period of Insurance (Accident based Insurance)

Our insurance is accident based. One effect of this is that we only insure you for risks arising from accidents which occur during your period of insurance with us as specified in your certificate  

38 Premium Calculation

38.1 Premium may be:

38.1.1 a lump sum

38.1.2 a deposit - which may be subject to a minimum and adjusted by an adjustment rate

38.1.3 determined by applying an adjustment rate

38.1.4 any combination of the above

38.2 If we calculate your premium by applying an adjustment rate you will provide the Managers with a declaration within 28 days after the adjustment date, to allow the premium to be calculated

39 Reduction of Claims  

We will reduce claims by:

39.1 amounts which you receive or to which you are entitled by way of salvage

39.2 your interest in any residual value in an insured asset

40 Scope of Accident

The Definition of accident at Y1 is qualified in respect of storm, earthquake, flood and strikes riots & terrorist risks arising under Carrying Equipment, Handling Equipment, Property and Business Interruption covers as set out below

40.1 The extent of an accident is limited to 72 consecutive hours if the cause of the loss/damage insured under the clauses listed above is one of the following (or if an accident includes one or more individual losses or damage arising from one or more of the following):

40.1.1 storm  

40.1.2 earthquake/volcanic eruption

40.1.3 flood (subject also to the conditions at 40.3)

40.1.4 strikes riots & terrorist risks (in this case the accident is also limited to one city, town or village)

40.2 You may choose the date and time when the period of 72 hours specified at 40.1 commences and if any event lasts longer than 72 hours you may divide it into two accidents as long as:

40.2.1 no two periods overlap and

40.2.2 no period commences before your first recorded individual loss arising out of that event during your period of insurance and 40.2.3 neither of the periods lasts longer than 72 hours

40.3 In the case of flood, accident means, additionally, loss/damage, wherever occurring, arising between the movement of water into or over the insured  asset and its receding, regardless of the time involved except that no accident will be deemed to:

40.3.1 start before your first recorded individual loss in that event occurring during your period of insurance nor

40.3.2 extend beyond 30 days after you cease to be insured  

41 Service of Notices

41.1 We will serve notices required by your insurance in accordance with the Bye-Laws Part F:

41.1.1 by post, fax or e mail to the assured or its broker, at the postal or electronic address or fax number last recorded by the Managers  

41.1.2 personally (on a director/officer in the case of a company)

41.2 Notice will be deemed served:

41.2.1 if sent by post - on the third day after posting, subject to 41.3

41.2.2 if sent by fax or e mail - on the date of transmission

41.3 A notice terminating insurance for war, strikes riots & terrorist or piracy risks will be deemed served on the day it is posted, collected by courier or sent by fax or e mail

42 Set Off

42.1 Set off will not be taken into account in assessing amounts due from you to us - including set off arising from winding up/bankruptcy - even if we have allowed set off in the past

42.2 We may set off any amounts due from you to us against amounts due from us to you - without prejudice to any other clause or paragraph in your insurance

43 Surveys

43.1 The Managers may require a survey of your premises, operations, equipment or insured ships at any reasonable time, whether before or after your insurance has commenced.

43.2 We may, with at least 30 days notice, cease to insure you if:

43.2.1 you fail to comply with this requirement or

43.2.2 the results of the survey are, in the discretion of the Managers, unsatisfactory or

43.2.3 you fail to comply with the Managers’ recommendations following a survey within a reasonable time

44 Terms

A term in your certificate which varies your policy will be subject to all other terms in your policy, except to the extent that it specifically varies them

45 Terrorism

If any term in your policy is inconsistent with compulsory terrorism insurance legislation, the compulsory legislation will prevail to the extent of this inconsistency

G3 applies to your entire policy - unless otherwise stated

1 Notification

1.1 You will notify the Managers as at 1.2, and as directed in your certificate, of any accident likely to lead to a claim under your insurance and any claim made against you for which you are (or may be) insured  

1.2 Notification as at 1.1 will be immediate, and in any case by the earliest of the following:

1.2.1 in time for appropriate investigation, defence or mitigation - for example: by survey

1.2.2 before terms are agreed for your next account year

1.2.3 three months after the accident or claim as at 1.1

2 Obligation of Member

In the event of an accident or claim as specified at 1 above you will:

2.1 use all reasonable endeavours to avoid/minimise the risk

2.2 give prompt notice to a third party who may be responsible

2.3 use all reasonable endeavours to obtain maximum recovery from a third party as at 2.2 and avoid time bars. You will fail to comply with this paragraph (2.3) if you fail to take measures because of the possibility of a counterclaim by the third party against you arising from the same accident, if we are prejudiced by this

2.4 cooperate with the Managers:

2.4.1 in the exercise of the powers specified at 7 below

2.4.2 by promptly providing information/documentation and facilitating surveys

2.4.3 by complying with the Managers’ request to establish whether a claim arises from terrorism  

2.5 not admit liability or settle a claim without the Managers’ prior agreement

3 Presentation of Claims

Claims for reimbursement from us will be presented within one year from:

3.1 Claims for physical loss of or damage of an insured asset: Date of loss 

3.2 Other claims, eg: liability or repair of an insured asset: Date of payment

4 Proof of Loss

If you make a claim, you will if the Managers require, provide signed and sworn proof of your payment or loss and submit to examination on oath

5 Directors Discretion

The Directors may in their discretion reduce or reject your claim if you fail to comply with 1-4 above - and in that event you will return to us sums already reimbursed

6 Distribution of Third Party Recoveries

6.1 Amounts recovered from third parties in respect of a claim will be credited to us to the full extent of the amounts which we have paid out, including costs of making the recovery

6.2 Any balance will be credited to you to the extent of amounts which you have incurred (for example: deductibles)

6.3 Any excess will be distributed equitably between you and us - taking into account amounts paid/incurred and the relevant dates

7 Powers of the Managers

7.1 The Managers may, in respect of any claim or proceedings relating to a risk for which you are or may be insured:

7.1.1 direct the conduct of the claim/proceedings

7.1.2 settle, compromise or dispose of the claim/proceedings in their discretion

7.1.3 at any time appoint - and discontinue the appointment of - lawyers, surveyors and others on your behalf, in connection with the claim/proceedings

7.2 The Managers may require from persons appointed as at 7.1.3 relevant advice, documents and information in their control:

7.2.1 at any time - whether or not the appointment has been discontinued 7.2.2 as if the persons were appointed to act and at all times had acted on our behalf

7.2.3 notwithstanding legal or other privilege

8 Death, Injury & Illness

1-7 above apply also to claims for death, injury or illness for which we would or might have insured you, except for a deductible

G4 applies to Certificates of Reinsurance (or Retrocession) unless otherwise stated

1 Structure

1.1 The reinsured insurer insures the primary assured, under a primary insurance policy

1.2 We reinsure the reinsured insurer

2 Certificate of Reinsurance

We issue a certificate of reinsurance to the reinsured insurer

2.1 The certificate of reinsurance will specify the percentage which we reinsure and the terms of reinsurance

2.2 The certificate of reinsurance may also confer membership of the Association on the reinsured insurer

3 Premium

3.1 The reinsured insurer pays a mutual premium - as set out in the certificate of reinsurance  

3.2 The reinsured insurer will receive return of premium or pay additional premium at the same percentage as the percentage which we usually pay to our assureds - taking into account any overrider, commission, brokerage and other fees and adjusted proportionately in respect of:

3.2.1 the period covered by the certificate of reinsurance

3.2.2 the percentage of the liability of the reinsured insurer which we reinsure

3.3 G2:33 does not apply to the primary insurance policy

4  More than One Reinsured Insurer

If there is more than one reinsured insurer under the certificate of reinsurance the reinsured insurers will be liable to us jointly, not severally, for any amounts due under the certificate of reinsurance

5 Underwriting & Claims Control

5.1 It is a condition precedent that the reinsured insurer will:

5.1.1 not exercise any of its powers, duties and discretions without the Managers’ prior approval

5.1.2 comply with G3:1-3

5.2 We will control handling of claims likely to affect the reinsurance

6 Definitions

The following words will be interpreted as stated below

6.1 For the purpose of construing the primary insurance:

a. we/us                              the Reinsured Insurer
b. you/the assured               the Primary Assured
c. the Managers                   the Managers for the time being of the Reinsured Insurer
d. Certificate of Insurance    Certificate of Reinsurance

6.2 For the purpose of construing the reinsurance:

a. we/us                             the Reinsurer
b. you/the assured              the Reinsured Insurer
c. the Managers                  as at Y1
d. Certificate of Insurance   Certificate of Reinsurance
e. Insurance                       Reinsurance

7 Primary Insurance

The term primary is used in this clause solely to distinguish the insurance of the primary assured by the reinsured insurer and does not mean that the insurance is primary to any other insurance