CHARTERERS' LIABILITY INSURANCE / PART II / Section A / Clause 14

TOWAGE

14.1 Towage of the Chartered Ship

It is customary for shipowners to enter into contracts for the provision of towage services; where, exceptionally, the Assured whether under the terms of the charterparty or otherwise, agrees to act as principal when contracting for towage services, the Assured should contact the Association for advice and to establish what, if any, cover can be provided.

14.1.1 Not applicable.

14.1.2 Not applicable.

14.1.3 Not applicable.

14.2 Towage by the Chartered Ship

Liability which the Assured may incur, together with costs and expenses incidental thereto, arising out of the towage by the Chartered Ship of any ship or object.

Provided always that:

14.2.1 the Chartered Ship specially designed or converted for the purpose of towage shall have been declared as such to the Managers at the time cover was agreed or at the time of conversion for the purpose of towage; and

14.2.2 the towage contract 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; or

14.2.3 the Association in its discretion shall, having regard to all the circumstances, consider the terms of the towage contract as reasonable and the liability as coming within the scope of the cover afforded by the Association; however

14.2.4 there shall be no recovery from the Association in respect of any liability for loss of, damage to or wreck removal of, a towed ship or object or of any cargo or other property carried thereon, whether such liability arises under the terms of a contract or otherwise, unless the Managers have agreed in writing to cover such liability.