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CHARTERERS' LIABILITY INSURANCE / PART II / Section A / Clause 12
POLLUTION
Liabilities which the Assured may incur, together with costs and expenses incidental thereto, as the result of an escape or discharge or threatened escape or discharge of oil or any other substance from the Chartered Ship or from other property.
The following shall be recoverable:
12.1 Damages
Liability for damages or compensation payable to any person arising from an escape or discharge or threatened escape or discharge of oil or any other substance from the Chartered Ship or from other property.
12.2 Clean-up
The costs of any measures reasonably taken for the purpose of preventing, minimising or cleaning up an escape or discharge of oil or any other substance from the Chartered Ship or from other property together with any liability for losses or damages arising from any measures so taken.
Provided always that:
12.2.1 the value of any ship or wreck and of any stores and materials, or cargo or other property, removed and saved as the result of any such measures shall either be credited to the Association or deducted from any recovery due from the Association.
12.3 Agreement
Liability which the Assured may incur, together with costs and expenses incidental thereto, as a party to any agreement relating to oil pollution, for loss, damage or expenses, including expenditure reasonably incurred in accordance with the Assured’s obligations under such agreement.
Provided always that:
12.3.1 such agreement has been approved by the Managers and the Assured has paid or agreed to pay such additional premium as may be required by the Association.
12.4 Government order
The costs or liabilities incurred as a result of compliance with any order or direction given by any Government or authority as a consequence of an incident involving an escape or discharge or threatened escape or discharge of oil or any other substance for the purpose of preventing or reducing any such escape, discharge or threat or damage incidental thereto.
Provided always that:
12.4.1 such costs or liabilities shall not be recoverable where the compliance with such an order or direction is a requirement prior to the normal operation or salvage or repair of the Chartered Ship; and
12.4.2 Not applicable.
12.5 Salvors’ special compensation
Liability which the Assured may incur to pay special compensation to a salvor of the Chartered Ship under the terms of the Special Compensation P&I Club (SCOPIC) Clause or in respect of work done or measures taken to prevent or minimise damage to the environment under the provisions of Article 14 of the International Convention on Salvage 1989 or the terms of a standard form salvage agreement equivalent thereto approved by the Association.
12.6 Fines
Liability which the Assured may incur for the payment of fines in respect of an escape or discharge or threatened escape or discharge of oil or any other substance insofar as such liability may be covered under Clause 19 Fines.
12.7 PROVIDED ALWAYS THAT:
12.7.1 there shall be no recovery in respect of losses, liabilities, or the costs and expenses incidental thereto, arising as the result of an escape or discharge or threatened escape or discharge of oil or any other substance other than under this Clause 12; and
12.7.2 there shall be no recovery under this Clause 12 of any liabilities in respect of cargo which come within the provisions of Clause 17 Cargo; and
12.7.3 there shall be no recovery under this Clause 12 of any liabilities in respect of expenditure which forms or could form a part of General Average expenditure under any unamended version of the York/Antwerp Rules; and
12.7.4 there shall be no recovery under this Clause 12 of any liabilities arising as a consequence of the escape or discharge or threatened escape or discharge of any oil or other substance (previously carried on the Chartered Ship) from any land-based dump, storage or disposal facility, unless the escape or discharge results directly from an error in the management or navigation of the Chartered Ship, or unless the Association in its discretion decides otherwise; and
12.7.5 Not applicable; and
12.7.6 Not applicable.