ADDITIONAL INSURANCES / PART VI / Clause 14

TERMINATION OF INSURANCE OF SHIP

The Assured shall cease to be insured by the Association in respect of an insured Ship upon the happening of any of the following events in relation to such Ship:

14.1 Transfer of interest

If the Assured shall cease to have a legal, beneficial or other interest in the Ship, or if entire control and possession is transferred whether by demise charter or otherwise.

14.2 Change of management

If the managers or operators of the Ship shall be changed.

14.3 Total loss

If the Ship becomes a total loss or is accepted by the hull underwriters as being a constructive, compromised or arranged total loss, except as regards liabilities flowing from the casualty which gave rise to such total loss of the Ship.

14.4 Ship missing

If the Ship shall be missing for ten days from the date the Ship was last heard of or from the Ship being posted at Lloyd’s as missing, whichever shall be the earlier.

14.5 Mortgage

If the Ship be mortgaged or otherwise hypothecated, unless an undertaking or guarantee approved by the Managers is given to pay all premiums due or to become due in respect of the Ship provided always that the Managers may waive this provision.

14.6 Classification

If the Assured fails to meet the requirements of Part IV Clause 10 Classification and condition of Ships.

14.7 Termination

If the insurance of the Ship shall have been terminated in accordance with
Part IV Clause 10.7 Ship management appraisal or Part IV Clause 10.8 Condition survey.

14.8 Sanctions

If, by virtue of any Sanction, prohibition or any adverse action by a state, international or supranational organisation or other competent authority, the Association is prohibited from insuring the insured Ship.