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Appendix II, Rule 1 Passengers and seamen

Passengers and seamen

1.1  For the purpose of this rule and Rule 3 Section 5 in the Rules for P&I Insurance, and without prejudice to anything else contained in these Rules or in Rules for P&I Insurance, a “Passenger” shall mean a person carried onboard a ship under a contract of carriage or who, with the consent of the carrier, is accompanying a vehicle or live animals covered by a contract for the carriage of goods and a “Seaman” shall mean any other person onboard a ship who is not a Passenger.

Unless otherwise limited to a lesser sum, the Association’s aggregate liability arising under any one Member’s entry shall not exceed:

  • USD 2 billion any one event in respect of liability to Passengers; and
  • USD 3 billion any one event in respect of liability to Passengers and Seamen

Provided always that:

Where there is more than one Owner’s entry in respect of the same ship in the Association and/or in any other association which participates in the Pooling Agreement

(a)   the aggregate of claims in respect of liability to Passengers recoverable from the Association and/or such other associations shall not exceed
USD 2 billion any one event and the liability of the Association shall be limited to such proportion of that sum as the claim recoverable by such persons from the Association bears to the aggregate of all such claims otherwise recoverable from the Association and from all such associations;

(b)   the aggregate of all claims in respect of liability to Passengers and Seamen recoverable from the Association and/or such other associations shall not exceed USD 3 billion any one event and the liability of the Association shall be limited:

(i)    Where claims in respect of liability to Passengers have been limited to USD 2 billion in accordance with proviso (a) to such proportion of the balance of USD 1 billion as the claims recoverable by such persons in respect of liability to Seamen bears to the aggregate of all such claims otherwise recoverable from the Association and all such associations; and

(ii)   in all other cases, to such proportion of USD 3 billion as the claims recoverable by such persons in respect of liability to Passengers and Seamen bears to the aggregate of all such claims otherwise recoverable from the Association and all such associations.

1.2  Where liabilities to Passengers include liabilities arising under a certificate issued by the Association in compliance with either Article IV bis of the Athens Convention relating to the Carriage of Passengers and their Luggage by sea, 1974 and the Protocol thereto of 2002 or Regulation (EC) No. 392/2009 of the European Parliament and all liabilities to Passengers exceed or may exceed in the aggregate the limit of cover

(a)   the Association may in its absolute discretion, until the Certified Liabilities, or such part of the Certified Liabilities as the Association may decide, have been discharged, defer payment of a claim in respect of other liabilities to Passengers or any part of thereof; and

(b)   if and to the extent any Certified Liabilities discharged by the Association exceed the said limit any payment by the Association in respect thereof shall be by way of loan the Member shall indemnify the Association in respect of such payment.