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CHARTERERS' LIABILITY INSURANCE / PART II / Section A / Clause 19
FINES
Fines or other penalties, together with costs and expenses incidental thereto, imposed in respect of the Chartered Ship by any court, tribunal, or authority of competent jurisdiction, upon the Assured or upon any Seafarer or person whom the Assured may be legally liable to reimburse (other than under the terms of a contract or indemnity, unless and only to the extent such terms have been previously approved by the Managers) or reasonably reimburses with the approval of the Managers, for:
19.1 Cargo
Short or over delivery of cargo or failure to comply with regulations relating to declaration of goods or to documentation of the cargo (other than fines or penalties arising from the smuggling of goods or cargo or any attempt thereat), subject always to the Association having agreed to cover the Assured’s responsibilities in respect of cargo under Clause 17 Cargo.
19.2 Immigration laws
Breach of any immigration law or regulation.
19.3 Pollution
The accidental escape or discharge of oil or any other substance subject always to:
19.3.1 the Association having agreed to cover the Assured’s liabilities together with the costs and expenses incidental thereto, in respect of such accidental escape or discharge under Clause 12 Pollution; and
19.3.2 Not applicable.
19.4 Other faults
Any other act, neglect or default of a Seafarer or other servant or agent of the Assured in the course of their duties in respect of the Chartered Ship and which, in the discretion of the Association, comes within the scope of the cover afforded by the Association.
19.5 PROVIDED ALWAYS THAT:
There shall be no recovery from the Association of a fine or other penalty nor of the costs and expenses relating thereto:
19.5.1 imposed for the overloading of the Chartered Ship; or
19.5.2 imposed for illegal fishing (including the costs and expenses incurred in defending any allegation of illegal fishing); or
19.5.3 imposed for the infringement of regulations relating to safe navigation (including the maintenance of proper charts), unless the Association is satisfied that the Assured had taken all reasonable steps to prevent the infringement which gave rise to the fine or other penalty; or
19.5.4 imposed for a criminal activity which the Assured had knowledge of, recklessly disregarded, or failed to take reasonable steps to prevent; or
19.5.5 imposed for an infringement of MARPOL regulations where the Chartered Ship’s oily water separator or similar pollution prevention device has been bypassed or rendered inoperable.
19.5.6 involving the confiscation of the Chartered Ship by reason of the infringement of any customs law or customs regulation unless the Association in its discretion authorises the recovery, in whole or in part, by the Assured of the Assured’s loss arising by reason of such confiscation.
19.5.6.1 The Association in exercising its discretion under proviso 19.5.6 above shall take account of the following:
19.5.6.1.1 the amount recoverable from the Association shall in no circumstances exceed the market value (without commitment) of the Chartered Ship at the date of the confiscation;
19.5.6.1.2 the Assured shall satisfy the Association that the Assured took all reasonable steps to prevent the infringement which gave rise to the confiscation;
19.5.6.1.3 Not applicable.