CHARTERERS' INSURANCES / PART II / Section A / Clause 27

RISKS SPECIFICALLY EXCLUDED

27.1

There shall be no recovery from the Association, except as otherwise provided in this Clause, in respect of:

27.1.1 Not applicable

27.1.2 Equipment

Loss of, or damage to, any equipment on board the Chartered Ship or any containers, lashings, stores, spares or fuel thereon to the extent that the same are owned or leased by the Assured or by any Associated Company of the Assured or by any company under the same management as the Assured.

27.1.3 Not applicable

27.1.4 Cargo and freight

Loss of or damage to, or liabilities arising in respect of, cargo intended to be, or being, or having been carried in the Chartered Ship or loss of freight or hire relating to the Chartered Ship, or any proportion thereof, unless such loss, damage or liability forms part of the measure of damages or expenditure paid by the Assured and recoverable under Clause 9.3 Collision liability to cargo, Clause 17 Cargo, Clause18.2 Unrecoverable general average contribution or Clause 21 Liability to and in respect of the Chartered Ship.

27.1.5 Pollution

Losses or liabilities arising as the result of an escape or discharge or threatened escape or discharge of oil or any other substance other than in accordance with Clause 12 Pollution.

27.1.6 Salvage

Salvage of the Chartered Ship or services in the nature of salvage provided to the Chartered Ship and any costs and expenses in connection therewith other than such as may be covered under Clause 8 Life Salvage, Clause12.5 Salvors’ special compensation or Clause 18 General Average.

27.1.7 Charterparties

Loss arising out of breach of or cancellation of a charter or other engagement of the Chartered Ship, other than such as may relate to cargo liabilities under Clause 17 Cargo, general average under Clause 18 General Average, liabilities under Clause 21 Liability to and in respect of the Chartered Ship, or loss of charterers’ property on board the Chartered Ship under Clause 10.7 Other property losses.

27.1.8 Not applicable

27.1.9 Not applicable

27.1.10 Not applicable

27.1.11 Not applicable

27.1.12 Demurrage and delay

Claims relating to demurrage on or detention of the Chartered Ship unless recoverable under Clause 21 Liability to and in respect of the Chartered Ship.

27.1.13 Towage and salvage

Liabilities arising out of the towage, salvage or wreck removal by the Chartered Ship of any other ship or object save where such towage, salvage or wreck removal was necessary for the purpose of saving or attempting to save life at sea, unless such liabilities are covered under the terms of Clause 14.2 Towage by the Chartered Ship or Clause 25 Special Cover for Salvors.

27.1.14 Carriage of through transit cargo

Losses or liabilities arising out of the carriage of cargo by a means of transport other than the Chartered Ship, when the cargo is carried under a contract of through carriage, unless and to the extent that cover has been agreed under Clause 17.4 Through transit or Clause 26 Special Cover for Extended Through Transit Risks.

27.1.15 Diving

Losses or liabilities arising out of the activities of professional or commercial divers where the Assured is responsible for such activities, unless:

27.1.15.1 cover has been extended in respect of such operations under the terms of Clause 25 Special Cover for Salvors; or

27.1.15.2 the activities are incidental to and carried out in relation to the inspection, repair or maintenance of the Chartered Ship or in relation to damage caused by the Chartered Ship; or

27.1.15.3 the activities are recreational.

27.1.16 Rights of recourse

Liabilities, costs and expenses arising out of or in connection with contracts for carriage wholly or partly by sea to the extent such liabilities, costs and expenses would not have been incurred or borne by the Assured but for its waiver or limitation of, or failure to incorporate, rights of recourse that would have been available under a bill of lading contract which incorporated Article IV Rule 6 of the Hague or Hague Visby Rules or any equivalent provision under other applicable law, unless any such right of recourse is not available by reason of mandatorily applicable law or the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall, in its discretion, otherwise determine.

27.1.17 PROVIDED ALWAYS THAT:

the foregoing exceptions 27.1.1 to 27.1.16 shall not apply to losses, costs and expenses incurred under Part I Clause 2 Legal Costs, Sue and Labour either to avoid or reduce a liability or expenditure or by the special direction of the Association.