CHARTERERS' LIABILITY INSURANCE / PART II / Section B / Clause 2

CHARTERERS’ BUNKERS ALL RISKS

Based on Institute Cargo Clauses (A) 01/01/1982 (CL. 252)

This insurance is to indemnify the Assured in respect of loss of or damage to bunkers belonging to the Assured on board the Chartered Ship on the following terms:

2.1 Risks Clause

This insurance covers all risks of loss of or damage to the bunkers insured except as provided in Clause 2.4 and Clause 2.5 below.

2.2 General Average Clause

2.2.1 This insurance covers General Average and salvage charges, adjusted or determined according to the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clause 2.4 and Clause 2.5 below or elsewhere in this insurance.

2.2.2 Average shall not apply to the adjustment or determination of General Average and salvage charges.

2.3 Malicious Damage Clause

This insurance is extended to cover, except as provided in Clause 2.4 and Clause 2.5 below,

2.3.1 loss of or deliberate damage to or deliberate destruction of the bunkers or any part thereof by the wrongful act of any person or persons

2.3.2 loss of or damage to the bunkers insured caused by malicious acts vandalism or sabotage, subject always to the other exclusions contained in this insurance.

2.4 General Exclusions Clause

In no case shall this insurance cover

2.4.1 loss damage or expense attributable to wilful misconduct of the Assured

2.4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the bunkers insured

2.4.3 loss damage or expense caused by inherent vice or nature of the bunkers insured

2.4.4 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2.2 above)

2.4.5 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel.

2.5 Unseaworthiness and Unfitness Exclusion Clause

2.5.1 In no case shall this insurance cover loss, damage or expense arising from

2.5.1.1 unseaworthiness of vessel or craft,

2.5.1.2 unfitness of vessel craft or conveyance,
where the Assured or the Assured’s servants are privy to such unseaworthiness or unfitness, at the time the bunkers insured are loaded therein.

2.5.2 The Association waives any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the bunkers insured to destination, unless the Assured or the Assured’s servants are privy to such unseaworthiness or unfitness.

2.6 Insurable Interest Clause

2.6.1 In order to recover under this insurance the Assured must have an insurable interest in the bunkers insured at the time of the loss.

2.6.2 Subject to Clause 2.6.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured was aware of the loss and the Association was not.

2.7 Constructive Total Loss Clause

No claim for constructive total loss shall be recoverable hereunder unless the bunkers insured are reasonably abandoned either on account of their actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the bunkers to the destination to which they are insured would exceed its value on arrival.

2.8 Actual Total Loss of Ship Clause

In the event of actual total loss of the ship and bunkers the sum payable shall be the value of bunkers on board the ship when leaving the last port of call.

2.9 Duty of Assured Clause

It is the duty of the Assured and the Assured’s servants and agents in respect of loss recoverable hereunder

2.9.1 to take such measures as may be reasonable for the purpose of averting or minimising such loss,

and

2.9.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised

and the Association will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

2.10 Waiver Clause

Measures taken by the Assured or the Association with the object of saving, protecting or recovering the bunkers insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

2.11 Deductible Clause

2.11.1 Claims hereunder for actual total loss or constructive total loss of bunkers and/or total loss of bunkers following total loss of the ship shall be subject to a deductible of nil.

2.11.2 All other claims hereunder shall be subject to the deductible stated in the Assured’s Certificate of Insurance.