P&I (CLASS 3) / PART IV / RULE 20

RISKS SPECIFICALLY EXCLUDED

20.1

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

20.1.1 Damage to the Entered Ship
Loss of, or damage to, the Entered Ship or any part thereof or losses as a result of the confiscation of the Entered Ship as may be agreed to be recoverable by the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in the exercise of its discretion under Rule 19.19.5.6 of Rule 19.19 Fines.

20.1.2 Equipment
Loss of, or damage to, any equipment on board the Entered Ship or any containers, lashings, stores, spares or fuel thereon to the extent that the same are owned or leased by the Member or by any Associated Company of the Member or by any company under the same management as the Member.

20.1.3 Repairs to the Entered Ship
The cost of repairs to the Entered Ship or of cleaning any part of the Entered Ship, or any charges or expenses in connection therewith, other than such as may be covered under Rule 19.12 Pollution, or Rule 19.18 General Average.

20.1.4 Cargo and freight
Loss of or damage to, or liabilities arising in respect of, cargo intended to be, or being, or having been carried in the Entered Ship or loss of freight or hire relating to the Entered Ship, or any proportion thereof, unless such loss, damage or liability forms part of the measure of damages or expenditure paid by the Member and recoverable under Rule 19.9.3 Collision liability to cargo, Rule 19.17 Cargo or Rule 19.18.2 Unrecoverable general average contribution.

20.1.5 Pollution
Losses or liabilities arising as the result of an escape or discharge or threatened escape or discharge of oil or any other substance other than in accordance with Rule 19.12 Pollution.

20.1.6 Salvage
Salvage of an Entered Ship or services in the nature of salvage provided to an Entered Ship and any costs and expenses in connection therewith other than such as may be covered under Rule 19.8 Life Salvage, Rule 19.12.5 Salvors’ special compensation or Rule 19.18 General Average.

20.1.7 Charterparties
Loss arising out of breach of or cancellation of a charter or other engagement of an Entered Ship, other than such as may relate to cargo liabilities under Rule 19.17 Cargo, general average under Rule 19.18 General Average or loss of charterers’ property on board the Entered Ship under Rule 19.10.7 Other property losses.

20.1.8 Road vehicles
Liabilities which a Member may incur as the owner or operator of a road vehicle.

20.1.9 Employers’ liability
The breach of any obligation to an employee (other than a Seafarer) owed by a Member as an employer.

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

20.1.11 Fraud
Loss arising out of the fraud of agents, or of an Associated Company or of employees of the Member 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.

20.1.12 Demurrage and delay
Claims relating to demurrage on or detention of an Entered Ship.

20.1.13 Towage and salvage
Liabilities arising out of the towage, salvage or wreck removal by an Entered Ship of any other ship or object save where such towage, salvage or wreck removal was necessary for the purpose of saving or attempting to save life at sea, unless such liabilities are covered under the terms of Rule 19.14.2 Towage by an Entered Ship or Rule 19.25 Special Cover for Salvors.

20.1.14 Carriage of through transit cargo
Losses or liabilities arising out of the carriage of cargo by a means of transport other than the Entered Ship, when the cargo is carried under a contract of through carriage, unless and to the extent that cover has been agreed under Rule 19.17.4 Through transit or Rule 19.26 Special Cover for Extended Through Transit Risks.

20.1.15 Diving
Losses or liabilities arising out of the activities of professional or commercial divers where the Member is responsible for such activities, unless:

20.1.15.1 cover has been extended in respect of such operations under the terms of Rule 19.25 Special Cover for Salvors; or

20.1.15.2 the activities are incidental to and carried out in relation to the inspection, repair or maintenance of the Entered Ship or in relation to damage caused by the Entered Ship; or

20.1.15.3 the activities are recreational.

20.1.16 PROVIDED ALWAYS THAT:
the foregoing exceptions 20.1.1 to 20.1.15 shall not apply to losses, costs and expenses incurred under Rule 19.20 Legal Costs, Sue and Labour either to avoid or reduce a liability or expenditure or by the special direction of the Association.

20.2 Sanctions Exclusion

Losses or liabilities where the provision of cover or a payment by the Association in respect thereof may expose the Association or the Managers to the risk of being subject to any Sanction, penalty, prohibition or any adverse action by a state, international or supranational organisation or other competent authority.