Rule 7 Other liabilities
Section 1 Liabilities for other property
Liabilities, costs or expenses for loss of or damage caused to property not owned by the Member whether on board or outside the entered ship to the extent such risks are not specified in other Rules.
However, the Member shall not be entitled to be reimbursed by the Association in respect of loss of or damage to objects or property which he has borrowed, leased or bought under reservation of title.
Section 2 Collision with other ships
Liabilities, costs or expenses incurred as a result of a collision with another ship if and to the extent such liabilities, costs or expenses are not covered under the Hull insurance of the entered ship and, unless otherwise agreed in writing, limited to
(a) one fourth of the liability arising out of the collision,
(b) that part of the Member’s liability, arising out of the collision, which exceeds the sum recoverable under the Hull insurance of the entered ship solely by reason of the fact that the liability exceeds the Hull insurance value.
The limitations under a-b above do not apply should the liability, cost or expense relate to the raising, removal, destruction, lighting or marking of the wreck from another ship, or the removal or the destruction of the cargo on board another ship.
Section 3 Damage to fixed and floating objects
Liabilities, costs or expenses incurred as a result of a contact with fixed and floating objects if and to the extent such liabilities, costs or expenses are not covered under the Hull insurance of the entered ship.
Furthermore, that part of the Member’s liability, arising out of the contact, which exceeds the sum recoverable under the Hull insurance of the entered ship solely by reason of the fact that the liability exceeds the Hull insurance value.
Section 4 Special compensation to salvors
Liability to pay special compensation to a salvor of an entered ship in respect of work done or measures taken to prevent and minimise damage to the environment provided
(a) that such liability is imposed on the Member pursuant to Article 14 of the International Convention on Salvage (1989) or is assumed by the Member under the terms of a standard form of salvage agreement approved by the Association,
(b) that such liability is not payable by those interested in the salved property.
Section 5 Obstruction to navigation and wreck liabilities
Liabilities, costs or expenses incurred where the entered ship as a result of a casualty has caused an obstruction to navigation.
Liabilities, costs or expenses relating to the raising, removal, destruction, lighting or marking of the wreck of the entered ship, its cargo or equipment which relates to the ship or wreck, when such acts are compulsory by law or the costs thereof are legally recoverable from the Member except to the extent they are covered by the Hull insurance of the entered ship. The value of the wreck and other property saved shall be credited to the Association.
Liabilities, costs or expenses incurred as a result of the presence or involuntary shifting of the wreck of the entered ship or its cargo. However, where the Hull Underwriters have not acquired title to the wreck, the cover afforded by the Association is limited to a period of three years from the day the insurance ceased.
Section 6 Liabilities in respect of fines
1 . Fines (dues, penalties or charges) as set out under a-c whether judicially imposed upon the Member, a member of the crew or a representative of the Member whom the Member may be liable to reimburse or reasonably reimburses with approval of the Association
(a) fines imposed for short or over-delivery of cargo, or failure to comply with regulations concerning the declaration of goods, or documentation of cargo (other than fines or penalties arising from the smuggling of goods or cargo or any attempt thereat), provided that the Member is insured by the Association for liability in respect of such cargo and subject to the terms of the entry in respect of such cargo cover,
(b) fines imposed for breach of any immigration law or regulation,
(c) fines imposed in respect of the accidental escape or discharge of oil or any other substance, provided that the Member is insured for pollution liability by the Association, and subject to the applicable limit of liability under Association entry,
2. Other fines judicially imposed may be recoverable provided that
(a) the Member has satisfied the Association that he took such steps as appeared to be reasonable to avoid the event giving rise to the fine or penalty.
Any amount claimed in respect of such fines shall be recoverable to such extent only as the Association in its absolute discretion may determine without having to give any reason for its decision.
3. Irrespective of points 1 and 2 above, the Association shall have no liability in respect of fines for
(i) overloading of the ship,
(ii) carriage of more passengers than permitted,
(iii) illegal fishing,
(iv) insufficient upkeep on the ship’s lifesaving and navigational equipment,
(v) lack of valid or prescribed certificates,
(vi) infringement of MARPOL regulations where the ship’s oil water separator or similar pollution prevention device has been bypassed or rendered inoperable.
Section 7 Quarantine expenses
Additional costs or expenses for quarantine, disinfection, fuel, insurance, wages, stores, provisions and port charges, in excess of those which would have been incurred but for the quarantine, necessarily and solely incurred by the Member in connection with quarantine and disinfection of the entered ship as a direct consequence of an outbreak of infectious disease onboard the entered ship and as a consequence of a quarantine and/or disinfection order. There shall be no recovery from the Association for the ship’s running expenses during the delay or indirect consequences thereof.
There shall be no recovery from the Association, where, at the time the entered ship has been ordered to a port, the Member knew or it was reasonable to anticipate, that it would be quarantined.
Section 8 Towage liabilities
Where the entered ship is towed,
(a) liability arising from the towage for the purpose of entering or leaving port or manoeuvring within the port during the ordinary course of trading or from towage of such ships which are habitually towed in the ordinary course of trading from place to place,
(b) liability arising from other towage, however where such liability arises under the terms of a towage contract cover is afforded only where such contract has been approved by the Association.
Where the entered ship is towing,
(c) liability arising from towage during a voyage with the purpose of saving life or property in distress,
(d) liability arising from other towage but only when the Association has agreed in advance to afford cover for such towage.
Section 9 Confiscation of ship
Notwithstanding the terms of Rule 11 Section 2 (l) the Association shall have the discretion to compensate, in whole or in part, the Member’s claim for loss of the entered ship following confiscation of the ship by any legally empowered authority by reason of the infringement of any customs law or customs regulation.
The compensation from the Association shall not exceed the market value of the ship without commitment at the time of confiscation.
The claim will be considered by the Association only
(a) if the Member has been deprived of his interest in the entered ship for a time of not less than six months,
(b) if the Member shall have satisfied the Association that he took such steps which in the opinion of the Association were reasonable to prevent the infringement of the customs law or regulation giving rise to the confiscation.
The Association shall be under no obligation to give reasons for its decision.
Section 10 Consortium claims
The Association’s liability for consortium claims shall be limited to such sums and be subject to such terms and conditions as set out in Appendix II, Rule 3.