Appendix II, Rule 3 Consortium claims
Consortium claims
Consortium Agreement: Any arrangement under which a Member agrees with other parties to the reciprocal exchange or sharing of cargo space on the entered ship and Consortium Ships.
Consortium Ship: A ship, feeder vessel or space thereon, not being the entered ship, employed to carry cargo under a Consortium Agreement.
Consortium Claim: A claim shall be a consortium claim where:
(a) it arises under a P&I entry of an insured ship; and
(b) it arises out of the carriage of cargo on a Consortium Ship; and
(c) the Member and the operator of the Consortium Ship are parties to a Consortium Agreement; and
(d) at the time of the entry of the Member in respect of Consortium Claims, the Member employs an insured ship pursuant to that Consortium Agreement.
Charterer’s Entry: An entry effected by a charterer and which does not insure any other person except as a co-assured or an affiliate.
Owner’s Entry: An entry effected by an owner, bareboat or demise charterer or operator of the Ship and which does not insure a charterer of the Ship (other than a charterer insured as a co-assured or an affiliate).
Unless otherwise agreed the Association is not liable for Consortium Claims.
A Consortium Agreement must be submitted and approved by the Association.
Allocation of Consortium Claims
Where a Ship under an Owner’s Entry and a Ship under a Charterer’s Entry are
both employed by the Member pursuant to a Consortium Agreement at the time
of the event giving rise to the Consortium Claim occurs, the Consortium Claim of
the Member shall, for the purpose of these Rules, be treated as a claim arising in
respect of the Owner’s Entry of the Member.
Aggregation
Where the Member has more than one ship employed pursuant to the Consortium Agreement at the time the event giving rise to a Consortium Claim occurs, all such ships shall be deemed to be an entry of one Ship.
Where a Member employs one or more ships pursuant to the Consortium Agreement at the time the event giving rise to a Consortium Claim occurs and the Member has an entry in respect of such ships in the Association and another association which is a party to the Pooling Agreement:
i) each such ship shall be deemed to be a part entry of one ship in the Association and the other association(s) which is a party to the Pooling Agreement, and
ii) where the Consortium Claims incurred by the Association and the other association(s) in respect of the Ship arising from that event out of the carriage of cargo on a Consortium Vessel in the aggregate exceed the sum specified in paragraph below – “Limit of Insurance”, the liability of the Association for such Consortium Claims shall be limited to that proportion of the sum specified in the paragraph below – “Limit of Insurance” – that the Consortium Claims recoverable from the Association in respect of each part entry bears to the aggregate of all the Consortium Claims incurred by the Association and any other association which is a party to the Pooling Agreement.
Limit of insurance
The cover afforded for a Consortium Claim is limited to USD 500 million each incident or occurrence in respect of all ships under any and all P&I entries of a Member in the Association and any other association which is a party to the Pooling Agreement.
Rules & Exceptions
For comments relating to Appendix II Rules 1-3, see the comments for Rule 3 Section 6, Rule 3.1.13 and the chapter on Charterers’ Liability.