ADDITIONAL INSURANCES / PART IV / Clause 1

EXCLUDED RISKS

There shall be no recovery from the Association, except as otherwise provided in the Certificate of Insurance, in respect of:

1.1 Charterparties

Loss arising out of breach of or cancellation of a charter or other engagement of an insured Ship.

1.2 Road vehicles

Liabilities which an Assured may incur as the owner or operator of a road vehicle.

1.3 Employers’ liability

The breach of any obligation to an employee (other than Seafarers) owed by the Assured as an employer.

1.4 Bad debts

Loss arising out of irrecoverable debts or out of the insolvency of any person.

1.5 Fraud

Loss arising out of the fraud of agents, or of an Associated Company or of employees of the Assured acting as an agent, unless the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall, in its discretion, otherwise determine.

1.6 Demurrage and delay

Claims relating to demurrage on or detention of an insured Ship.