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P&I (CLASS 3) / PART IV / RULE 28
CLASSIFICATION AND CONDITION OF SHIPS
28.1 Classification
Every Member warrants that every Ship entered by the Member for insurance in this Class is and shall remain throughout the period of entry fully classed with a classification society approved by the Managers and that throughout such period the Member will fully and timely comply with all the rules, recommendations and requirements of such society relating to the Entered Ship.
Provided always that:
28.1.1 the Board may in its discretion waive compliance with this warranty for such periods and on such terms as it thinks fit.
28.2 Change of Classification
Any change of classification or classification society shall forthwith be notified to the Managers in writing, together with all outstanding recommendations, requirements or restrictions specified by any classification society as at the date of such change.
28.3 Information from the Member
Where required by the Managers it is a condition precedent to the Member’s right of recovery from the Association that the Member shall first have provided to the Managers an assurance that the Entered Ship’s class has been maintained, as well as a list of recommendations, requirements or restrictions specified by any classification society and where any periodic docking survey or any special survey of hull, machinery or equipment is overdue, a statement as to whether or not an extension has been permitted by the classification society. If the Managers so require, such information shall be certified by the classification society.
28.4 Statutory Requirements
Every Member
28.4.1 shall comply with all the statutory requirements of the state of the Ship’s flag relating to the construction, adaptation, condition, fitment, equipment, manning and loading of the Entered Ship; and
28.4.2 must at all times maintain the validity of any statutory certificates which are required and issued by or on behalf of the state of the Ship’s flag.
28.4.3 PROVIDED ALWAYS THAT:
the Board may in its discretion waive compliance with this Rule for such periods and on such terms as it thinks fit.
28.5 Information from the Classification Society
Should the Association wish to approach the classification society directly for information, the Member will provide the necessary authorisation.
28.6 Survey before Entry or Re-Entry
The Managers may as a condition of entry or re-entry of a Ship in the Association require the Member or prospective Member to submit the Ship to survey by a surveyor appointed by the Managers. The Managers in their discretion may require the Member or prospective Member to bear the expense of such survey. In the light of such survey the Managers may:
28.6.1 refuse the entry or re-entry of the Ship; or
28.6.2 refuse the entry or re-entry of the Ship until repairs or other action recommended by the surveyor have been carried out to the satisfaction of the Managers within any time limit prescribed by the Managers; or
28.6.3 accept the entry or re-entry of the Ship on such special terms as the Managers may in their discretion decide.
28.7 Ship Management Appraisal
Without prejudice to any warranties or other duties and obligations imposed on a Member under these Rules or the general law, the Managers may at any time and from time to time require a Member to undergo an appraisal of the management systems ashore or on board Ship relating to the operation of Ships managed or operated by the Member by a surveyor appointed by the Managers on a date and at a place agreed between the Member and the Managers and within such time limit as may be specified by the Managers. The Managers may in their discretion require the Member to bear the expense of such appraisal or they may treat it as an expense reimbursable by the Association under Rule 19.20 Legal Costs, Sue and Labour. In the light of such appraisal or in the event of failure by the Member to undergo such appraisal within the time limit specified by the Managers, the Managers shall have the power, in their discretion to:
28.7.1 terminate the entry of all Ships entered by the Member forthwith; or
28.7.2 amend, vary or impose special terms on the terms of entry of Ships entered by that Member with immediate effect in such manner as they think fit, including the exclusion of all or part of the risks specified in Rule 19 Risks Covered for such time or period as they may specify.
Provided always that:
28.7.2.1 if the Member does not accept such amendment, variation or condition the Member shall have the option of withdrawing the entry of the Member’s Ships forthwith.
28.8 Condition Survey
Without prejudice to any warranties or other duties and obligations imposed on a Member under these Rules or the general law, the Managers may at any time and from time to time require a Member to submit the Member’s Entered Ship to survey by a surveyor appointed by the Managers on a date and at a place agreed between the Member and the Managers and within such time limit as may be specified by the Managers. The Managers may in their discretion require the Member to bear the expense of such survey or they may treat it as an expense reimbursable by the Association under Rule 19.20 Legal Costs, Sue and Labour. In the light of such survey or in the event of failure by the Member to submit the Entered Ship to such survey within the time limit specified by the Managers, the Managers shall have the power, in their discretion, to:
28.8.1 terminate the entry of the Ship forthwith; or
28.8.2 amend, vary or impose special terms on the terms of entry of the Ship with immediate effect in such manner as they think fit, including the exclusion of all or part of the risks specified in Rule 19 Risks Covered for such time or period as they may specify.
Provided always that:
28.8.2.1 if the Member does not accept such amendment, variation or condition the Member shall have the option of withdrawing the Member’s entry of the Ship forthwith.
28.9 Disclosure of Surveys
Every Member or prospective Member:
28.9.1 consents to and authorises the disclosure by the Managers to any association which is a party to the Pooling Agreement any survey of a Ship made under Rule 28.6 Survey before Entry or Re-Entry or Rule 28.8 Condition Survey; and
28.9.2 waives any rights or claims against the Association or the Managers of whatsoever nature arising in respect of or relating to the contents of or opinions expressed in any survey so disclosed.
28.9.3 PROVIDED ALWAYS THAT:
28.9.3.1 such survey may only be disclosed to another association when an application for entry of such Ship is made thereto; and
28.9.3.2 the disclosure of the survey shall be for the limited purpose only of that association considering an application to enter such Ship for insurance.
28.10 Right of Adjudication
If any difference or dispute between a Member and the Managers shall arise concerning the actions taken by the Managers under this Rule 28, the Member shall have the right to refer the matter to adjudication by the Board under Rule 44 Disputes and Differences. Pending such adjudication, any such action taken by the Managers shall bind the Member.
28.11 Obligation of Member
Notwithstanding the provisions of this Rule 28 nothing shall relieve the Member of the Member’s obligation to keep the Member’s Entered Ship at all times in a proper condition. Any recommendations or observations of a surveyor acting under any part of this Rule shall be treated as within the actual knowledge of the Member. Any failure by the Member to implement the said recommendations shall entitle the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) in its discretion to refuse, in whole or in part, a claim for recovery from the Association in respect of any incident whatsoever occurring after such recommendations have been made.