CHARTERERS' LIABILITY INSURANCE / PART III / Clause 1

WAR AND STRIKES RISKS

Where separately and expressly agreed by the Managers in writing it is hereby agreed in accordance with the provisions of Part IV Clause 6 War and Strikes Risks that cover is extended to include such losses, liabilities, costs and expenses as would be covered by the Association but for the exclusion of war and strikes risks as set out in Part IV Clause 6.1. Accordingly, the following shall be additionally recoverable:

1.1

Liability, loss, damage, cost or expense caused by, arising out of or in any way connected with one or more of the following risks:

1.1.1 war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power;

1.1.2 capture, seizure, arrest, restraint or detainment and the consequences thereof or any attempt thereat;

1.1.3 derelict mines, torpedoes, bombs, or other derelict weapons of war;

1.1.4 strikes, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions;

1.1.5 terrorism, or any person acting maliciously or from a political motive;

1.1.6 confiscation, nationalisation, expropriation, deprivation or requisition.

1.2

In no case shall the cover afforded under this Clause 1 cover loss, damage, liability or expense directly or indirectly caused by or contributed to by or arising from any chemical, biological, bio-chemical or electromagnetic weapon.

1.3 Association’s right to give Notice of Cancellation

Notwithstanding any other term or condition of this insurance, coverage under this Clause 1 may be cancelled by the Association giving 48 hours’ notice (such cancellation becoming effective on the expiry of 48 hours from 24:00:00 UTC on the day on which notice of cancellation is issued by the Association) and the Association may at any time after the issue of notice of such cancellation resolve to reinstate this cover pursuant to Part IV Clause 6.2 on such terms and conditions and subject to such limit as the Association in its discretion may determine.

1.4 Association’s right to determine Prohibited Areas

In accordance with Part IV Clause 6.3, the Association may in its discretion at any time or times before, or at the commencement of, or during the currency of any Policy Period of the Association, determine that any ports, places, countries, zones or areas (whether on land or sea) and/or any conflicts be excluded from the coverage provided by this insurance for war and strikes risks (Prohibited Areas). Save as otherwise provided by the Association this insurance shall cease in respect of Prohibited Areas at 24:00:00 UTC 48 hours following the issue of notice of such determination in accordance with Part IV Clause 6.3. Unless and to the extent that the Association in its discretion otherwise decides there shall be no recovery from the Association under this Clause 1 in respect of any liability, loss, damage, cost or expense howsoever arising out of any event, accident or occurrence within the Prohibited Areas after such date.

1.5

Without prejudice to the provisions of Part IV Clause 6.3 coverage under this Clause 1 is subject to the following:

1.5.1 Five Powers War Exclusion
This insurance excludes loss damage liability or expense arising from:

1.5.1.1 the outbreak of war (whether there be a declaration of war or not) between any of the following countries:
United Kingdom
United States of America
France
The Russian Federation
The People’s Republic of China;

1.5.1.2 requisition either for title or use.

1.5.2
Cover under this Clause 1 shall not become effective if, subsequent to acceptance by the Association and prior to the intended time of attachment of risk, there has occurred any event which would have automatically terminated cover under the provisions of Clause 1.

1.6 Automatic Termination of Cover

Whether or not notice of cancellation has been given in accordance with Clause 1.3 above cover hereunder in respect of the risks of war and strikes shall TERMINATE AUTOMATICALLY:

1.6.1 upon the occurrence of any hostile detonation of any nuclear weapon of war, wheresoever or whensoever such detonation may occur, and/or

1.6.2 upon the outbreak of war (whether there be a declaration of war or not) between any of the following countries:
United Kingdom
United States of America
France
The Russian Federation
The People’s Republic of China.