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P&I (CLASS 3) / PART IV / RULE 25
EXCLUSION OF WAR RISKS
25.1 General Exclusion of War Risks
Unless otherwise agreed in writing there shall be no recovery from the Association against any liabilities, costs or expenses (irrespective of whether a contributory cause of any liability, cost or expense being incurred was negligence on the part of the Member or of the Member’s servants or agents) when the loss or damage, injury, illness or death or other accident in respect of which such liability arises or cost or expense is incurred was caused by:
25.1.1 war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power, or any act of terrorism;
Provided always that:
25.1.1.1 in the event of any dispute as to whether or not any act constitutes an act of terrorism the decision of the Board shall be final.
25.1.2 capture, seizure, arrest, restraint or detainment (barratry and piracy excepted) and the consequences thereof or any attempt thereat;
25.1.3 mines, torpedoes, bombs, rockets, shells, explosives or other similar weapons of war
Provided always that this exclusion shall not apply to liabilities, costs and expenses which arise solely by reason of:
25.1.3.1 the transport of any such weapons whether on board the Entered Ship or not, or
25.1.3.2 the use of such weapons, either as a result of government order or with the agreement in writing of the Managers or the Board, where the reason for such use is the avoidance or mitigation of liabilities, costs or expenses which would otherwise fall within the cover given by the Association.
25.2 Provision of Cover for War Risks
Where the Association has agreed in writing to provide cover against any or all of the risks set out in Rule 25.1 above such cover shall be subject to such terms and conditions as may have been agreed between the Member and the Managers including any war risks clause endorsement applicable to the Certificate of Entry. The Association shall have the power to declare Prohibited Areas; which
25.2.1 may at any time and from time to time be changed by the Association giving seven days’ notice of such change;
25.2.2 shall automatically extend to all countries, zones, areas, ports and places upon:
25.2.2.1 the hostile detonation of a nuclear device,
25.2.2.2 the outbreak of war between any of the following countries:
United Kingdom
United States of America
France
The Russian Federation
The People’s Republic of China
25.2.2.3 requisition either for title or use of the Entered Ship, and there shall be no cover in respect of the event giving rise to such automatic extension.
25.3 Certificates
Notwithstanding the exclusions in Rule 25.1 General Exclusion of War Risks the Association will discharge on behalf of the Member liabilities, costs and expenses arising under a demand made pursuant to the issue by the Association on behalf of the Member of:
25.3.1 a guarantee or other undertaking given by the Association to the Federal Maritime Commission under Section 2 of US Public Law 89-777 and/or
25.3.2 a certificate issued by the Association in compliance with Article VII of the International Conventions on Civil Liability for Oil Pollution Damage 1969 or 1992 or any amendments thereto, and/or
25.3.3 an undertaking given by the Association to the International Oil Pollution Compensation Fund 1992 in connection with STOPIA or, except where such liabilities, costs or expenses arise from or are caused by an act of terrorism, TOPIA, and/or
25.3.4 a certificate issued by the Association in compliance with Article 7 of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 and/or
25.3.5 a certificate issued by the Association in compliance with Article 12 of The Nairobi International Convention on the Removal of Wrecks, 2007 and/or
25.3.6 a certificate issued by the Association in compliance with MLC 2006
25.3.7 PROVIDED ALWAYS THAT:
25.3.7.1 the Member shall indemnify the Association to the extent that any payment under any such guarantee, undertaking or certificate in discharge of the said liabilities, costs and expenses is or would have been recoverable in whole or in part under a standard P&I war risks policy had the Member complied with the terms and conditions thereof, and
25.3.7.2 the Member agrees that:
25.3.7.2.1 any payment by the Association under any such guarantee, undertaking or certificate in discharge of the said liabilities, costs and expenses shall, to the extent of any amount recovered under any policy of insurance or extension to the cover provided by the Association, be by way of loan; and
25.3.7.2.2 there shall be assigned to the Association to the extent and on the terms that it determines in its discretion to be practicable all the rights of the Member under any other insurance and against any third party.