CHARTERERS' LIABILITY INSURANCE / PART II / Section A / Clause 28

EXCLUSION OF CERTAIN SPECIALIST RISKS

28.1

There shall be no recovery from the Association in respect of any claim relating to liabilities, costs and expenses of the Chartered Ship which is:

28.1.1 Salvage tugs

a salvage tug or other Ship used or intended to be used for salvage or wreck removal operations, when the claim arises as a result of any salvage and/or wreck removal service or attempted salvage and/or wreck removal service, unless cover has been specifically extended for such operations under Clause 25 Special Cover for Salvors.

28.1.2 Heavy lift ships

a semi-submersible heavy lift ship or other ship designed exclusively for the carriage of heavy lift cargo where the claim arises out of the loss of or damage to or wreck removal of cargo, unless the cargo is being carried under a contract on HEAVYCON terms or any other contract approved by the Managers in writing.

28.1.3 Drilling and production operations

used for drilling, core sampling, or production operations in connection with oil or gas exploration or production when the claim arises out of or during such operations.  In respect of any Chartered Ship employed to carry out production operations in connection with oil or gas production, the exclusion shall apply from the time that a connection, whether directly or indirectly, has been established between the Chartered Ship and the well pursuant to a contract under which the Chartered Ship is employed, until such time that the Chartered Ship is finally disconnected from the well in accordance with that contract.

28.1.4 Storage ships

used for the storage of oil when either:

28.1.4.1 oil is transferred directly from a producing well to the Chartered Ship and the claim arises out of or during such transfer; or

28.1.4.2 the Chartered Ship has oil and gas separation equipment on board and gas is being separated from oil while on board (other than by natural venting) and the claim arises out of or during such separation.

28.1.5 Waste ships

used for waste incineration or waste disposal operations, when the claim arises out of those operations.

28.1.6 Entertainment ships

moored on a permanent basis open to the public as a hotel, restaurant, bar or other place of entertainment, when the claim arises in respect of hotel or restaurant guests or other visitors or the catering crew of the Chartered Ship.

28.1.7 Underwater operations

used as or in connection with the operation of a submarine, mini-submarine, diving bell, or remotely operated underwater vehicle.

28.1.8 Specialist operations

used for dredging, blasting, pile-driving, well-intervention, cable or pipe-laying, construction, installation or maintenance work, core sampling, mining, depositing of spoil, and power generation and decommissioning, and such other operations as may be determined by the Managers from time to time, to the extent that such liabilities, costs and expenses arise as a consequence of:

28.1.8.1 claims brought by any party for whose benefit the work has been performed, or by any third party (whether connected with any party for whose benefit the work has been performed or not); or

28.1.8.2 the failure to perform such specialist operations by the Assured or the fitness for purpose or quality of the Assured’s work, products or services; or

28.1.8.3 any loss of or damage to the contract work.

Provided always that:

28.1.8.4 to the extent that the Assured has cover under this Section A, the exclusion in this Clause 28.1.8 shall not apply to liabilities, costs and expenses incurred by the Assured in respect of:

28.1.8.4.1 loss of life, injury or illness of crew and other personnel on board the Chartered Ship;

28.1.8.4.2 the wreck removal of the Chartered Ship;

28.1.8.4.3 oil pollution emanating from the Chartered Ship or the threat thereof.

28.1.8.5 Special Cover may be agreed between the Assured and the Managers.