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P&I (CLASS 3) / PART VI / RULE 35
EFFECT OF CESSER
35.1 Cesser for Failure to Pay
If the cesser of insurance shall have occurred by virtue of Rule 33.1 Failure to Pay the Association shall not be liable for any claims under these Rules in respect of any Ship which has been entered by the Member, whether the incident giving rise to such claim occurred before or after the cesser of insurance, unless the incident giving rise to such claim occurred during a Policy Year which had been closed at the time of the cesser of insurance.
35.2 Cesser for any Other Reason
If the cesser of insurance or cesser of the Ship’s entry shall have occurred by virtue of any other reason, the Association shall remain liable for all claims under these Rules arising by reason of any incident which occurred before the cesser but shall be under no liability whatsoever by reason of any incident which occurred after the cesser.
Provided always that:
35.2.1 the provisions of Rule 35.1 above shall apply to the contract of insurance even if the entry of the Ship shall have ceased under the provisions of Rule 33.2 Failure of Individual, Rule 33.3 Failure of Corporation or Rule 34 Cesser of Ship Entry before the notice specified in Rule 33.1 Failure to Pay shall have been issued or taken effect.
35.2.2 the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may in its discretion admit either wholly or partly any claim for which the Association is under no liability under this Rule whether the incident giving rise to such claim occurred before or after the cesser of insurance.
35.3 No Waiver of Rights
Without prejudice to the generality of Rule 41 Forbearance no act, omission, course of dealing, forbearance, delay or indulgence of any kind by or on behalf of the Association nor the granting of time, nor the acceptance by the Association (whether express or implied) of liability for, or the recognition of, any claim and whether occurring before or after the cesser of insurance, shall derogate from the effect of Rule 33 Cesser of All Insurances and Rule 34 Cesser of Ship Entry or be treated as a waiver of any of the Association’s rights thereunder.