Rule 3 Liabilities in respect of persons
Section 1 Injury, illness, repatriation and death – crew
(a) Liability under the terms of a crew agreement or other contract of service or employment to pay damages or compensation for personal injury, illness or death of any member of the crew of the entered ship who is on board or proceeding to or from that ship.
(b) Hospital, medical, repatriation, funeral or other expenses necessarily incurred in relation to any member of the crew who is on board or proceeding to or from that ship.
(c) Travelling expenses in providing a substitute as a consequence of injury, illness or death of any member of the crew who is on board or proceeding to or from that ship.
(d) Costs for repatriation of the crew necessarily incurred in consequence of the actual or constructive total loss of the entered ship or a major casualty rendering the ship unseaworthy and necessitating the signing off of the crew.
(e) Liability arising on grounds other than under (a) above to pay damages or compensation for personal injury, illness or death of any member of the crew of the entered ship who is on board or proceeding to or from that ship.
Section 2 Wages – crew
Sick wages and wages as a consequence of the death of a member of the crew of the entered ship.
Wages payable to a member of the crew in consequence of the actual or constructive total loss of the entered ship or a major casualty rendering the ship unseaworthy and necessitating the signing off of the crew.
Section 3 Loss of or damage to effects – crew
Liability to pay compensation for loss of or damage to personal effects belonging to a member of the crew of the entered ship as well as liability based on such crew agreement and contracts as mentioned in Rule 10 Section 2 (c), excluding valuables, cash, negotiable instruments and objects of a rare or precious nature.
Section 4 Payment of crew claims
(a) Notwithstanding the provisions of Rules 2 and 26, where a Member has failed to discharge a legal liability to pay damages or compensation for personal injury, illness or death of a seaman provided always that the seaman or dependent has no enforceable right of recovery against any other party and would otherwise be uncompensated, the Association shall discharge or pay such claim on the Member’s behalf directly to such seaman or dependent thereof.
(b) Subject to (c) below, the amount payable by the Association shall under no circumstances exceed the amount which the Member would have been able to recover from the Association under the Rules and the Member’s terms of entry,
(c) Where the Association is under no liability to the Member in respect of such claim in accordance with Rule 26 by reason of termination for non-payment of amounts due to the Association, the Association shall nevertheless discharge or pay that claim to the extent only that it arises from an event occurring prior to the date of cancellation, but as agent only of the Member, and the Member shall be liable to reimburse the Association for the full amount of such claim.
Section 5 Passenger liabilities
Liabilities to pay damages or compensation for personal injury, illness or death of any passenger on board the entered ship.
Liability costs or expenses for loss, shortage, damage or other responsibility relating to luggage or personal belongings of any passenger on board the entered ship.
Liability to pay damages or compensation to passengers on board an entered ship where such liability arises in consequence of a casualty, including the costs of forwarding such passengers and their luggage to their port of destination or returning them to their port of embarkation and of their maintenance ashore.
For the purpose of this rule the word “casualty” shall be defined as follows.
An incident involving either
(a) collision, stranding, explosion, fire or any other cause affecting the physical condition of the vessel so as to render it incapable of safe navigation to its intended destination; or
(b) a threat to the life, health or safety of passengers.
The cover provided by the Association shall also include liability for injury, illness or death during carriage to or from the entered ship in its own boats or by means of other boats.
Notwithstanding the terms of the preceding paragraph of this section the Association shall not be liable for any liability in respect of personal injury, illness, death, loss of or damage to property, delay or any consequential loss sustained by any passenger by reason of carriage by air or while they are in the care of any other carrier before or after the carriage on the entered ship. The Association shall not be liable in respect of the contractual liability of a Member for death, injury and loss of or damage to property during an excursion from the entered ship
(a) under a separate contract which has been entered into by the passenger for the excursion, whether or not with the Member, or
(b) if the Member has waived any or all his rights of recourse against any sub-contractor or other third party in respect of the excursion.
Section 6 Limitation of cover for passengers and seamen
The Association’s liability for any and all claims in respect of passengers or seamen arising out of any one event shall be limited to such sum or sums and be subject to such terms and conditions as set out in Appendix II, Rule 1.
Section 7 Injury, illness and death – others
Liability to pay compensation for personal injury, illness and death of any persons on board or in relation to the entered ship other than crew and passengers.
Section 8 Stowaways and refugees
Expenses incurred as a result of the entered ship having stowaways, persons saved at sea or refugees on board to the extent that the Member is legally liable for such expenses or they are incurred with the approval of the Association.
Section 9 Life salvage
Sums legally due to third parties by reason of the fact that they have saved or attempted to save the life of any person on or from the entered ship, but only if, and to the extent that such payments are not recoverable under the Hull insurance of the ship or from cargo owners or cargo underwriters.
Section 10 Deportation
Expenses incurred in respect of persons from the entered ship for whom an order for deportation or detention on board the ship has been issued.
Section 11 Diversion expenses
Additional costs and expenses for fuel, any extra insurance, overtime, stores, provisions and port charges attributable solely to a diversion, in excess of those which would have been incurred but for the diversion, reasonably undertaken for the purpose of saving persons at sea or securing treatment of any injured or sick person on board the entered ship, or while awaiting a substitute for such person or for the purpose of landing stowaways, refugees or persons saved at sea, provided that such costs and expenses are incurred with the approval of the Association.