Rule 30 Joint members, co-assureds, affiliated charterers and contractors

Joint Members

The Association may allow several Members to be covered jointly (Joint Members) by the same insurance on the following conditions unless otherwise agreed.

The Joint Members shall be jointly and severally liable for all sums due to the Association.

The Association may fully discharge its obligations with regard to payment under these Rules by payment to any one of the Joint Members.

Any communication by the Association to any one of the Joint Members or any other insured party shall be deemed to be communicated to all. Failure by any one of the Joint Members or any other insured party to disclose material information shall be deemed to be the failure of all.

Act or omission of any one of the Joint Members or any other insured party which causes the insurance to cease or which entitles the Association to terminate the insurance or to reject or reduce any compensation shall be deemed an act or omission of all.

The liability of the Association to the Joint Members shall not exceed the limitation under the fifth paragraph of Rule 2 had the registered Owner of the entered ship been the sole Member, except where the Joint member is

(a) any person interested in the operation, management or manning of the entered ship,

(b) the holding company or the beneficial owner of the Member or of any Joint Member falling within category (a) above

and provided that the liability arises out of operations and/or activities customarily carried on by or at the risk and responsibility of shipowners and which is within the scope of the cover afforded by these Rules and any special terms set out in the Certificate of Entry.

Any liability of the parties insured to one another shall neither be excluded nor discharged by reason of a common insurance. Payment by the Association to one of the parties insured in respect of any liabilities, losses, costs or expenses shall operate only as satisfaction, but neither exclusion nor discharge, of the liability of that party to the other parties insured.

Co-assureds

The Association may allow other parties to become co-assureds under a Member’s insurance on the following conditions unless otherwise agreed.

The liability of the Association to co-assureds shall be limited to liabilities, costs or expenses which the co-assured is found liable to pay for loss or damage which is properly the responsibility of the Member and which the Member would have incurred if the claim had been pursued against him and which would have been reimbursed by the Association under these Rules.

The Association may fully discharge its obligations with regard to payment under these Rules by payment to any one of the co-assureds or to any other insured party in respect of that loss or damage.

Any communication by the Association to any one of the co-assureds or any other insured party shall be deemed to be communicated to all. Failure by any one of the co-assureds or any other insured party to disclose material information shall be deemed to be the failure of all.

Act or omission of any one of the co-assureds or any other insured party which causes the insurance to cease or which entitles the Association to terminate the insurance or to reject or reduce any compensation shall be deemed an act or omission of all.

The liability of the Association to the co-assureds shall not exceed the limitation under the fifth paragraph of Rule 2 had the claim been pursued against the registered Owner of the entered ship.

Any liability of the parties insured to one another shall neither be excluded nor discharged by reason of a common insurance. Payment by the Association to one of the parties insured in respect of any liabilities, losses, costs or expenses shall operate only as satisfaction, but neither exclusion nor discharge, of the liability of that party to the other parties insured.

Affiliated charterers

The Association may allow affiliated charterers of the entered ship to be covered by the Member’s insurance provided that the liability arises out of operations and/or activities customarily carried on by or at the risk and responsibility of shipowners and which is within the scope of the cover afforded by these Rules and any special terms set out in the Certificate of Entry.

Any communication by the Association to any one of the affiliated charterers or any other insured party shall be deemed to be communicated to all. Failure by any one of the affiliated charterers or any other insured party to disclose material information shall be deemed to be the failure of all.

Act or omission of any one of the affiliated charterers or any other insured party which causes the insurance to cease or which entitles the Association to terminate the insurance or to reject or reduce any compensation shall be deemed an act or omission of all.

The liability of the Association to affiliated charterers is limited to USD 350 Million in the aggregate.

Any liability of the parties insured to one another shall neither be excluded nor discharged by reason of a common insurance. Payment by the Association to one of the parties insured in respect of any liabilities, losses, costs or expenses shall operate only as satisfaction, but neither exclusion nor discharge, of the liability of that party to the other parties insured.

Contractors

The Association may allow any party who has entered into a contract with a Member for the provision of services to or by the entered ship (contractor), and any subcontractor of the contractor, to be covered by the Member’s insurance provided that the contract includes a knock for knock agreement and has been approved by the Association.

The liability of the Association to contractors is limited to liabilities, costs and expenses which are borne by the Member under the terms of the contract and would, if borne by the Member, have been recoverable by the Member from the Association.

Any communication by the Association to any one of the contractors or any other insured party shall be deemed to be communicated to all. Failure by any one of the contractors or any other insured party to disclose material information shall be deemed to be the failure of all.

Act or omission of any one of the contractors or any other insured party which causes the insurance to cease or which entitles the Association to terminate the insurance or to reject or reduce any compensation shall be deemed an act or omission of all.

The liability of the Association to contractors shall not exceed the limitation under the fifth paragraph of Rule 2 had the registered Owner of the entered ship been the sole Member.

Any liability of the parties insured to one another shall neither be excluded nor discharged by reason of a common insurance. Payment by the Association to one of the parties insured in respect of any liabilities, losses, costs or expenses shall operate only as satisfaction, but neither exclusion nor discharge, of the liability of that party to the other parties insured.

Comments on: Rule 30 Joint members, co-assureds, affiliated charterers and contractors