P&I (CLASS 3) / PART I / RULE 2

DEFINITIONS

In these Rules the following terms shall have the meanings set out below if not inconsistent with the subject or context.

2.1 The Association

The Britannia Steam Ship Insurance Association Europe or The Britannia Steam Ship Insurance Association Limited as named in the Certificate of Entry.

2.2 Associated Company

A person or company affiliated or associated with a Member and to whom the benefit of the cover afforded by the Association to the Member is extended in accordance with Rule 18 Associated Companies.

2.3 The Board

The Directors for the time being of the Association or as the context may require those Directors present at a duly convened meeting of the Board at which a quorum is present.

2.4 Call Rate

In relation to any Entered Ship, the rate per ton of the Entered Tonnage at which an Estimated Total Call is payable to the Association in accordance with Rule 11.1 Call Rate.

2.5 Calls

Any monies payable to the Association in respect of an Entered Ship pursuant to Rule 11 Calls.

2.6 Certificate of Entry

A document and any endorsement thereto issued by the Association in accordance with these Rules and the Articles of Association which records the names and seniority of the Members interested in, and evidences the contract of insurance in respect of, an Entered Ship.

2.7 Charterer

Unless otherwise expressly indicated a Charterer shall be a person, not being the owner of the Ship, who has the employment of the Ship other than as a demise or bareboat charterer or operator.

2.8 Charterer’s Entry

An entry effected by a Charterer and which does not insure any other person other than a Coassured and/or Associated Company.

2.9 This Class

Class 3 Protection and Indemnity.

2.10 Closed Policy Year

A Policy Year of the Association which the Board shall have declared to be closed in accordance with Rule 37.1 Exceptional Calls.

2.11 The Committee

The Representatives for the time being of the Association or as the context may require those Representatives present at a duly convened meeting of the Committee at which a quorum is present.

2.12 Consortium Agreement

Any arrangement under which a Member agrees with other parties to the reciprocal exchange or sharing of cargo space on the Entered Ship and Consortium Vessels. An exchange will be reciprocal if the intention of the parties is that the space given and taken is broadly in balance.

2.13 Consortium Claim

A claim which arises out of the carriage of cargo on a Consortium Vessel which is eligible for pooling under the Pooling Agreement.

2.14 Consortium Vessel

A ship, feeder ship or space thereon, not being the Entered Ship, employed to carry cargo under a Consortium Agreement.

2.15 Contribution

An Estimated Total Call, Exceptional or Overspill Call or Fixed Premium levied by the Association pursuant to Rule 7 Special Insurances and Rule 11 Calls.

2.16 Convention Limit

The limit of liability of the owner of an Entered Ship for claims (other than claims for loss of life or personal injury) determined in accordance with Article 6.1(b) of the International Convention on Limitation of Liability for Maritime Claims 1976 (but applying 334 SDRs to each ton up to 500 tons) and converted from Special Drawing Rights into United States Dollars at the rate of exchange conclusively certified by the Association as being the rate prevailing on the Overspill Claim Date. Any Entered Ship shall be deemed to be a seagoing ship to which the Convention applies, notwithstanding any provision in the Convention to the contrary; but if a tonnage less than the Full Tonnage of the Ship was entered in the Association, the Convention Limit shall be the proportion of the limit of liability, determined and converted as aforesaid, which the Entered Tonnage bears to the Full Tonnage of the Ship.

2.17 Entered Ship

A Ship which has been entered for insurance in this Class of the Association.

2.18 Entered Tonnage

The tonnage for which a Ship is entered and on which Contribution to the funds of the Association is calculated.

2.19 Fleet Entry

The entry of more than one Ship by one or more Members on the basis that those Ships will be treated together as a fleet for underwriting purposes.

2.20 Full Tonnage

The gross full tonnage of a Ship as measured in accordance with the International Convention on Tonnage Measurement of Ships, 1969 and certified or stated in the Certificate of Registry or other official document relating to the registration of such Ship. In case of doubt the tonnage under the said Convention shall prevail. For the purposes of these Rules and the Articles of Association the gross tonnage of a Ship shall remain unchanged for each Policy Year and shall be stated in the Certificate of Entry of that Ship at the start of that Policy Year or at the time of entry of that Ship.

2.21 General Excess Loss Reinsurance Contract

The excess of loss reinsurance policies effected by parties to the Pooling Agreement.

2.22 The Hague Visby Rules

The International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (The Hague Rules) signed at Brussels on 25 August 1924 as amended by the Protocol to that Convention signed at Brussels on 23 February 1968.

2.23 Hull Policies

Policies effected on the hull and machinery of a ship including any excess liability policy.

2.24 Insurance

Any insurance or reinsurance against the risks specified in these Rules.

2.25 Knock for Knock

A provision or provisions stipulating that

2.25.1 each party to a contract shall be similarly responsible for

2.25.1.1 loss of or damage to, and/or death of or injury to, any of its own property or personnel, and/or the property or personnel of its contractors and/or of its and their subcontractors and/or of other parties, and/or

2.25.1.2 liability arising out of the ownership or operation of its own property, and that

2.25.2 such responsibility shall be without recourse to the other party and arise notwithstanding any fault or neglect of any party, and that

2.25.3 each party shall, in respect of those losses, damages or liabilities for which it has assumed responsibility, correspondingly indemnify the other against any liability that that party shall incur in relation thereto.

2.26 Limit of Liability

The Association’s Limit of Liability as set out in or provided in accordance with Rule 27 Limitation of Liability.

2.27 The Managers

The Managers for the time being of the Association including, if the Managers are a firm, each partner of the Managers or, if the Managers are a limited or unlimited company, each director of the Managers.

2.28 MLC 2006

Regulation 2.5.2, Standard A2.5.2, Regulation 4.2 and Standard A4.2.1(b) of the Maritime Labour Convention 2006, as amended, or domestic legislation by a State party implementing these Regulations and Standards.

2.29 Member

A Member of the Association as defined in Article 3 of the Articles of Association and more particularly a Member of this Class of the Association.

2.30 Overspill Call

Any monies payable to the Association in respect of an Entered Ship pursuant to Rule 11.4 Overspill Calls for the purpose of providing funds to pay part of an Overspill Claim.

2.31 Overspill Claim

The Association’s contribution to that part of any claim, including the costs and expenses associated therewith, (whether arising out of the terms of entry of any Entered Ship or out of the terms of the Pooling Agreement) which exceeds or may exceed the maximum sum recoverable in respect of that claim under the General Excess Loss Reinsurance Contract.

2.32 Overspill Claim Date

The date on which the incident or occurrence giving rise to an Overspill Claim occurred or, if that date falls in a Policy Year which is closed under Rule 37.2 Overspill Calls, 20 August in the oldest Policy Year remaining open under the automatic closing provisions of Rule 37.2 in respect of Overspill Calls at the time when the notice under Rule 37.2 that an Overspill Claim might arise was given.

2.33 Owner

Unless otherwise expressly indicated an Owner shall be a person being the owner, demise or bareboat charterer or operator of the Ship.

2.34 Owner’s Entry

An entry effected by an Owner and which does not insure a charterer of the Ship (other than a charterer insured as a Coassured and/or Associated Company).

2.35 Passenger

A person carried on board an Entered Ship by virtue of holding a ticket of passage.

2.36 Personal Effects

Personal property, documents, navigational or other technical instruments and tools brought on board, or being taken to or from, the Entered Ship by a Seafarer but excluding cash, valuables, or any other article which in the opinion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) is not an essential requirement for a Seafarer.

2.37 Policy Year

A year from 12:00:00 UTC on any 20 February to 12:00:00 UTC on the next following 20 February.

2.38 Pooling Agreement

The agreement, to which the Association is a party, between certain Protection and Indemnity Associations dated
20 February 1998 and any addendum to, or variation or replacement of, the said agreement, or any other agreement of a similar nature or purpose.

2.39 Prohibited Area

Any country, zone, area, port or place which the Association from time to time may declare to be excluded from cover provided under Rule 25.2 Provision of Cover for War Risks.

2.40 The Register

The Register of Members of the Association.

2.41 Representative

A representative of a Member appointed to the Committee.

2.42 Rules

The rules, regulations and byelaws for the time being in force concerning this Class of the Association.

2.43 Sanction

Any applicable economic, financial or trade sanction or embargo.

2.44 Seafarer

A person (including the Master) engaged under articles of agreement or otherwise contractually obliged to serve on board an Entered Ship including a substitute for such person and also including such persons while proceeding to or from such Ship.

2.45 Senior Member

In respect of an Entered Ship that Member whose name stands first in the Register in respect of such Ship who shall be the Member whose name stands first on the Certificate of Entry of such Ship.

2.46 Ship

In the context of a ship entered or proposed to be entered in this Class of the Association, any ship, boat, hydrofoil, hovercraft or other description of vessel whether completed or under construction (including a lighter, barge or similar vessel howsoever propelled but excluding

2.46.1 a unit or vessel constructed or adapted for the purpose of carrying out drilling operations in connection with oil or gas exploration or production,

2.46.2 a fixed platform or fixed rig and

2.46.3 a wing-in-ground craft)

used or intended to be used for any purpose whatsoever in navigation or otherwise on, under, over or in water or any part of such ship or any proportion of the tonnage thereof or any share therein.

2.47 Special Cover

An agreement by the Association in writing in accordance with Rule 7 Special Insurances to cover:

2.47.1 risks not set out in Rules 19.1 to 19.23 inclusive; or

2.47.2 such other risks in respect of which additional insurance is agreed.

2.48 STOPIA

Small Tanker Oil Pollution Indemnification Agreement 2006 as subsequently amended.

2.49 TOPIA

Tanker Oil Pollution Indemnification Agreement 2006 as subsequently amended.

2.50 The United Kingdom

Great Britain and Northern Ireland.

2.51 Interpretation

For the purposes of these Rules:

2.51.1 Writing shall include printing, typewriting, lithography, facsimile, electronic means of written communication and any other mode or modes of representing or reproducing words in a visible form.

2.51.2 Words importing the singular number only shall include the plural number and vice versa.

2.51.3 Words importing persons shall include individuals, partnerships, corporations and associations.

2.51.4 The headings and sub-headings as set out in these Rules are for convenience and ease of reference only and do not affect the construction of any Rule or sub-Rule.