Clause 3 - Britannia

POWERS OF THE ASSOCIATION RELATING TO THE SETTLEMENT OF CLAIMS ON THE ASSOCIATION

3.1 Meetings

The Association shall meet as often as may be required for settlement of claims which shall be paid by the Association as the Association may determine in accordance with the Certificate of Insurance, but the Association shall have power from time to time to authorise the Managers to effect payment of claims without prior reference to the Association. The Assured shall not participate in any meeting of the Association while it is engaged in the settlement of any claim in which the Assured is interested.

3.2 Claims

Without prejudice to any other provisions of the Certificate of Insurance the Association shall have power in its discretion to reject a claim or reduce the sum payable by the Association in respect thereof, if:

3.2.1 in the opinion of the Association the Assured making the claim has not taken such steps before, at the time of, or after the incident or events giving rise to the claim, to protect the Assured’s interests as the Assured should have done or as the Assured would have done if the Assured had not been insured;

3.2.2 the Ship in respect of which the claim is submitted has ceased before the incident which gave rise to the claim to be fully classed by a classification society approved by the Managers or if the Assured has failed fully and timely to comply with all the rules, recommendations and requirements of such society and the Assured has failed to give notice of this cesser or failure to the Managers;

3.2.3 the Assured has failed fully to comply with the recommendations of a surveyor appointed by the Managers under Part IV Clause 10 Classification and condition of Ships;

3.2.4 the claim shall have been settled, or any liability shall have been admitted, by or on behalf of, the Assured without the prior consent in writing of the Managers;

3.2.5 the Assured failed to comply with a recommendation or directive made at any time by the Association or the Managers to the Assured, in connection with the handling or settlement of the claim or potential claim;

3.2.6 the Assured shall have failed to comply with any of the Assured’s obligations under Clause 1 above.