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P&I (CLASS 3) / PART V / RULE 32
POWERS OF THE BOARD AND THE COMMITTEE RELATING TO THE SETTLEMENT OF CLAIMS ON THE ASSOCIATION
32.1 Agreement of Claims
The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall meet as often as may be required for settlement of claims which shall be paid by the Association as the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) may determine in accordance with these Rules, but the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power from time to time to authorise the Managers to effect payment of claims without prior reference to the Board (or, in the case of claims not exceeding USD2,000,000, the Committee). No Director shall sit on the Board and no Representative shall sit on the Committee while it is engaged in the settlement of any claim in which the Director or Representative is interested.
32.2 Power of the Board and the Committee in respect of Claims
Without prejudice to any other provisions of these Rules the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall have power in its discretion to reject a claim or reduce the sum payable by the Association in respect thereof, if:
32.2.1 in the opinion of the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) the Member making the claim has not taken such steps before, at the time of, or after the incident or events giving rise to the claim, to protect the Member’s interests as the Member should have done or as the Member would have done if the Member had not been insured in this Class;
32.2.2 the Ship in respect of which the claim is submitted has ceased before the incident which gave rise to the claim to be fully classed by a classification society approved by the Managers or if the Member has failed fully and timely to comply with all the rules, recommendations and requirements of such society and the Member has failed to give notice of this cesser or failure to the Managers;
32.2.3 the Member has failed fully to comply with the recommendations of a surveyor appointed by the Managers under Rule 28 Classification and Condition of Ships;
32.2.4 the claim shall have been settled, or any liability shall have been admitted, by or on behalf of, the Member without the prior consent in writing of the Managers;
32.2.5 the Member failed to comply with a recommendation or directive made at any time by the Board, the Committee or the Managers to the Member, in connection with the handling or settlement of the claim or potential claim;
32.2.6 the Member shall have failed to comply with any of the Member’s obligations under Rule 30 Obligation of the Member in respect of Claims.
32.3 Interest
Save only as provided in Rule 3.5 Insurance Act 2015 a Member shall not be entitled to be paid interest on the Member’s claim against the Association.