CHARTERERS' LIABILITY INSURANCE

WAR AND STRIKES RISKS

6.1

Unless otherwise agreed in writing there shall be no recovery from the Association against any liability, loss, damage, cost or expense caused by, arising out of or in any way connected with one or more of the following risks:

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

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

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

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

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

6.1.6 confiscation, nationalisation, expropriation, deprivation or requisition,

PROVIDED ALWAYS THAT:

6.1.7 the exclusion set out in this Clause 6.1 shall be subject to Clause 6.4.

6.2

Where the Association has agreed in writing to provide cover against any or all of the risks set out in Clause 6.1 above such cover shall be subject to such terms and conditions as may have been agreed between the Assured and the Managers including any war and strikes risks clause endorsement applicable to the Certificate of Insurance.

6.3

The Association shall have the power to declare Prohibited Areas (territorial and/or conflict exclusions) which

6.3.1 may at any time and from time to time be changed by the Association giving 48 hours’ notice of such change, such notice running from 24:00:00 UTC on the day the notice is given;

6.3.2 shall automatically extend to all countries, zones, areas, ports and places

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

6.3.2.2 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; or

6.3.2.3 upon requisition either for title or use;
and there shall be no cover in respect of the event giving rise to such automatic extension.

6.4 Certificates

Notwithstanding the exclusions in Clause 6.1 General Exclusion of War Risks the Association will discharge on behalf of the Assured liabilities, costs and expenses arising under a demand made pursuant to the issue by the Association on behalf of the Assured of:

6.4.1 a guarantee or other undertaking given by the Association to the Federal Maritime Commission under Section 2 of US Public Law 89-777 and/or

6.4.2 a certificate issued by the Association in compliance with Article VII of the International Conventions on Civil Liability for Oil Pollution Damage 1969 or 1992 or any amendments thereto, and/or

6.4.3 an undertaking given by the Association to the International Oil Pollution Compensation Fund 1992 in connection with STOPIA or, except where such liabilities, costs or expenses arise from or are caused by an act of terrorism, TOPIA, and/or

6.4.4 a certificate issued by the Association in compliance with Article 7 of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 and/or

6.4.5 a certificate issued by the Association in compliance with Article 12 of The Nairobi International Convention on the Removal of Wrecks, 2007 and/or

6.4.6 a certificate issued by the Association in compliance with MLC 2006

6.4.7 PROVIDED ALWAYS THAT:

6.4.7.1 the Assured shall indemnify the Association to the extent that any payment under any such guarantee, undertaking or certificate in discharge of the said liabilities, costs and expenses is or would have been recoverable in whole or in part under a standard P&I war risks policy had the Assured complied with the terms and conditions thereof, and

6.4.7.2 the Assured agrees that:

6.4.7.2.1 any payment by the Association under any such guarantee, undertaking or certificate in discharge of the said liabilities, costs and expenses shall, to the extent of any amount recovered under any policy of insurance or extension to the cover provided by the Association, be by way of loan; and

6.4.7.2.2 there shall be assigned to the Association to the extent and on the terms that it determines in its discretion to be practicable all the rights of the Assured under any other insurance and against any third party.

Britannia