The Marine Hull Insurance Manual PDF

MARINE HULL INSURANCE MANUAL
UNITED INDIA INSURANCE COMPANY LIMITED

MARINE TECHNICAL DEPARTMENT
HEAD OFFICE, CHENNAI

2011
Regd. & Head Office, 24, Whites Road, Chennai - 600 014
Website : www.uiic.co.in, E-mail - info@uiic.co.in
PREFACE
Insurance is an essential ingredient in commercial trade. In the increasingly

difficult and highly technical markets of today it is the knowledge and
experience that enables active underwriters to recognize the risks to be
anticipated and to determine the right cover for the assured.
Marine hull insurance deals with the insurance of the hull of the ship/vessel and
the insurances of the various liabilities of the ship/vessel owner arising out of
the use of the ship/vessel.
It is necessary to have a reasonable knowledge of the types of ships, basic ship

construction/parts of the ship, the insurable interests relating to the ship, the
type of insurance contract and the types of clauses available in the insurance
market.
In this Manual we have tried to cover all the aspects of Marine hull insurance
and hopefully made it more user friendly to enable you to prudently underwrite
this insurance. A brief on Port Package and Oil and Energy Insurance has also
been added to this manual to help you understand this business which is
usually underwritten with the concurrence of the Reinsurance department.
We have tried to simplify the complexities of the erstwhile tariff rating structure
and brought out rating tables which can be used as a ready reckoner for any
particular type of vessel.
No marine hull policy is complete without the attachment of the clauses. The
confusion as to which clause is to be attached has been reasonably resolved in
the manual. Depending on the type of vessel specific proposal forms have been
designed and incorporated since we believe that the questions to be asked are
not uniform for all types of vessels.
A claims section has also been added to this manual which deals with the
documentation for processing the claims for different types of vessel to have
one consolidated manual for both underwriting and claims.
We hope this manual will be of help to the operating offices.

Compiled by :
Ms.Parvathy Eswaran, Consultant

Ms.S.Manimegalai, Marine Technical, HO
Ms.Lakshmi Ramakrishnan, Marine Technical, HO
Ms.R.Vijayalakshmi, Marine Technical, HO
Mr.D.Suresh, Marine Technical, HO
Mr.V.Subramaniam, Re-Insurance, HO
Mr.Yeshwant Rasaikar, D.O. Goa
Ms.Sarayu Ganesh Chauhan (Madhuri), D.O. XI, Mumbai
Mr.N.Ravichandran, D.O. Kancheepuram
CONTENTS
PAGE NO
INTRODUCTION 1
GENERAL RULES AND REGULATIONS 5
SECTION 1 UNDERWRITING OF OCEAN GOING VESSELS 8
UNDERWRITING OF INLAND VESSELS

46
SECTION 2 INCLUDING FERRY BOATS
SECTION 3 UNDERWRITING OF INLAND DREDGERS 69
UNDERWRITING OF FISHING
80
SECTION 4 VESSELS/TRAWLERS/VALLAMS
SECTION 5 UNDERWRITING OF SAILING VESSELS. 102
SECTION 6 BUILDER‘S RISK INSURANCE 121
SECTION 7 SHIP REPAIRER‘S LIABILITY INSURANCE. 130
SECTION 8 CHARTERER‘S LIABILITY INSURANCE 140
SECTION 9 SHIP BREAKING INSURANCE 147
OIL AND ENERGY INSURANCE AND OFF

167
SECTION 10 SHORE INSURANCE
SECTION 11 PORT PACKAGE INSURANCE 176
SECTION 12 UNDERWRITING OF WAR AND SRCC RISKS. 185
SECTION 13 UNDERWRITING OF VOYAGE INSURANCE 192
INSURANCE OF JETTIES (WITH OR

WITHOUT CRANES), FIXED 205
SECTION 14 PONTOONS/PONTOON-JETTIES, WHARVES.
UNDERWRITING OF YACHTS AND

208
SECTION 15 SPEEDBOATS
SECTION 16 MARINE HULL INSURANCE CLAIMS 218
ANNEXURES 229
INTRODUCTION
BASIC STRUCTURE OF A SHIP
Knowledge of the basic structure of a ship would be helpful for hull

underwriting. The parts of a ship vary, depending on what kind of ship it is, but
a few general parts common to all ships are described below:
The core of the ship is the structural keel, a heavy reinforced spine which runs
along the bottom of the ship, in the middle. The keel supports the structure of
the ship and is the first part of the ship to be built, since it serves as the
foundation. The framework for the hull or shell of the body of the ship is
attached to the keel. The bilge is the lowest compartment on a ship where the
two sides meet at the keel.
The hull is the most of the visible part of a ship, because it is the body of the
ship. The hull is divided by bulkheads and decks. Bulkheads are
compartments which run across the ship from side to side, creating isolated
areas of the ship while decks are analogous to the floors of a house.
The bridge is a covered room which serves as the command center for the
ship and is normally on the top deck. Larger ships have several deck areas
including the poop deck located in the rear of the ship and the afterdeck
located directly behind the bridge. The other decks include the main deck
which is the principal deck of a vessel, the middle deck which is the deck
located in the middle of the ship and is normally the working area of the deck;
the lower deck is the deck immediately over the hold.
The front region of a ship or fore is called the bow and the rear region of the
ship or aft is the stern. When a person is fore, they are in the front of the
boat while a sailor located amidships would be in the middle of the ship, and
a person to the rear of the ship is aft, the right hand side of a ship is
starboard and the left is port.
Rudder is a wooden device at the rear of the ship which reaches into the
water and is used to steer the ship. Hatch is a door like opening in the deck
which leads to the hold.
Anchor is the heavy metal weight lowered to the sea bottom, used to hold a
ship in place.
A double bottom is a ship design and construction method where the bottom
of the ship has two complete layers of water tight hull surface: one outer layer
forming the normal hull of the ship and a second inner hull which is somewhat
higher in the ship. The space in between the two bottoms is often used as
storage tanks normally for ballast water. In case of grounding or other
underwater damage, most of the time the damage is limited to flooding of the
bottom compartment and the main areas of the ship remain intact. Hence
double bottoms are significantly safer than single bottoms.
A collision bulkhead is a watertight partition in a ship, perpendicular to the

fore and aft centerline of the ship usually near the bow for keeping out water
in the event of a collision.
A propeller is a mechanical device for propelling a ship and consists of a

revolving shaft with two or more blades attached to it.
MARINE HULL INSURANCE COVERS:
Damage to the ship: Marine Hull Insurance covers loss or damage to the hull
and machinery both total loss and partial loss due to named perils mentioned
in the clauses.
Collision Liability: When a ship collides with another vessel the ship owner
would be held liable for the losses sustained by other colliding vessel or the
property on board the other vessel etc depending upon the degree of blame
attaching to his vessel. Under most of the Institute clauses only three fourths
of the collision liability is payable under Marine Hull insurance.
General Average sacrifice and contribution: The law of general average is a

legal principle of maritime law according to which all parties in a sea venture
proportionally share any losses resulting from a voluntary sacrifice of part of
the ship or cargo to save the whole in an emergency. Marine Hull insurance
pays for such general average sacrifice of the ship and the ship‘s contribution
towards General average act.
Salvage, Salvage charges : The cost incurred by a third party in saving

preserving and reclaiming vessel from a loss at sea. These expenses are
normally treated as general expenditure and payable under marine hull

insurance.
Sue and labour expenses: charges or expenses reasonably incurred by the

ship owner with the intention of averting or minimizing any loss or damage to
the ships are recoverable under marine hull insurance, if the loss itself is
recoverable.
Protection and Indemnity risks: The following are the other liabilities which
a ship-owner is likely to pay. Most of the Institute clauses do not cover these
expenses and the same are payable by P & I clubs. However, certain clauses
viz Institute Port Risks clauses cover some of these expenses on a restricted
basis:
1/4th collision liability not payable under Marine Hull insurance

Wreck Removal expenses: Where a vessel has sunk in the harbour area
obstructing the navigational fair-way, the shipowner may be ordered by
the Port Authorities to remove the wreck at his own cost.
Loss of life and personal injury
Damage to harbours, wharves and other immovable objects
Infringement of rights
Quarantine expenses
Shipwreck indemnity to crew members
Liability to cargo
Seepage and pollution
Other interests not covered by insurers.
GENERAL RULES AND REGULATIONS

1. Marine hull insurance policies may be issued only if the vessel
owner/bareboat charterer/vessel technical manager and/or flag of the
vessel are Indian.
2. No cover should be granted to ship owners for bunkers, bonds, stores,

etc. separately.
3. Where sums insured are required to be expressed in other than Indian
currency, underwriters should ensure that the Exchange Control
Authority‘s approval has been obtained.
RBI PROVISIONS-
Applicable for policies issued in foreign currency.
(A) ISSUANCE OF POLICY
Insurance Companies registered with IRDA may issue General Insurance
policies denominated in foreign currency and receive premium in foreign
currency without prior approval of the Reserve Bank in the following
type of classes
Marine Insurance for vessels owned by foreign shipping Companies

and chartered by Indian parties.
Marine Insurance policies in respect of vessels owned by foreign
shipping companies but managed by Indian Companies as technical
operators for the vessels.
Marine Insurance policies in respect of vessels mortgaged to foreign
financier/ bank as per the loan agreement and assignment of the
same in favour of the foreign financier/bank.
(B) PAYMENT OF CLAIMS

Settlement of claims in foreign currency in respect of policies issued in
foreign currency permitted subject to the following conditions:
The policy has been issued in foreign currency with specific approval
of RBI
The claim has been made for the loss occurred during the policy
period
The claim has been admitted by the competent authority of the
insurance company
The claim has been settled as per the surveyors report and other
substantiating documents.
The remittances are being made to the non-resident beneficiary

under the policy. For resident beneficiaries the claim may be settled
in Rupee equivalent of foreign currency due. Under no
circumstances payment in foreign currency be made to a resident
beneficiary and
While reporting the transaction to R-Returns RBI approval for issue
of policy may be quoted.
4. Hull, Machinery and Accessories of a Vessel shall be deemed to be one

interest and insured under one sum. Splitting of sums insured under
Hull, Machinery and Accessories separately shall not be permitted.
5. DEDUCTIBLES
Every vessel shall be insured subject to a deductible.
Deductibles shall be expressed in amounts and not as percentages of
Sums Insured.
No insurance shall be granted for the ‗Deductibles‘ stipulated in any
Policy issued in the Hull Department, irrespective of the beneficiary.
6. All rates including those for Cancellation and Lay-up Returns shall be
rounded off to three decimal places for Ocean-going Vessels and to two
decimal places for others.
7. POLICIES ISSUED TO OWNERS/CHARTERERS, ETC.
In case of a Bareboat Charter, the Hull Policy will be issued to the

Bareboat Charterer only and the interest of the Owner, if required,
will be protected by attaching suitable Loss Payable Clause by the
Underwriter on receipt of a dated notice from the Bareboat
Charterer.
For all other Charter Parties, Hull Policy shall be continued/issued
only in the name of the Owner.
For Charterers other than Bareboat Charterers, only Charterers‘
Liability Policy can be issued.
If the owner and a Bank/Financier are involved, Policy shall be issued
only to the Owner and the same can be assigned by the Owner to
the Bank/Financier.
Agreed bank clause shall not be used with any hull policy.
8. 3/4ths Collision Liability cover is available in India as part of H & M
Insurance and hence Insurers shall not allow the Shipowners to place
3/4ths Collision Liability cover outside.
9. No cover shall be granted only for Outboard Engine fitted to a Ship.
10. MINIMUM PREMIUM
The minimum premium (if any) as mentioned in the various sections has
to be collected.
11. PROPOSAL FORM
Depending on the type of vessel/insurance cover, proposal forms have

been designed and it is mandatory to collect the completed proposal
form duly signed by the authorised signatory of the insured.
12. VALUATION REPORT/CERTIFICATE
Since marine hull insurances are generally agreed valued policies it is

advisable to obtain the valuation certificate from the builder or an
approved valuer or surveyor, especially at the time of underwriting a
new business and also whenever there is a change in the sum insured.
Wherever the sum insured is less than the value mentioned in the
valuation report then the policy is subject to the ‗Average Clause‟ and
the same is to be mentioned in the policy.
13. POLICY FORMS
Marine hull policies can be issued only as per the specimen copy
attached in this manual. The terms and conditions should include the
name of the clause/deductible/whether the policy is subject to CRO
conditions/Trading Warranty/class warranty/ISM code warranty and any
other conditions or warranties as applicable to that particular type of
insurance cover.
It is mandatory to attach the printed clauses/warranties to the policy.
PLEASE NOTE THAT THE RATES/TERMS/CONDITIONS GIVEN IN THE

MANUAL ARE INDICATIVE. ANY REQUIREMENTS FOR VARIATION
SHOULD BE REFERRED TO THE HEAD OFFICE FOR THEIR SPECIFIC
APPROVAL.
SECTION 1
UNDERWRITING OF OCEAN GOING VESSELS
The following criteria are essential to categorise a vessel as an Ocean Going
Vessel.
The vessel should be registered under the Merchant Shipping Act.
She should be classed with a Classification Society.
The vessel should hold a valid ISM code and is mandatory for the
following type of vessels:
Passenger Ships including Passenger High speed crafts and
Oil tankers, Chemical Tankers, Gas Carriers, Bulk Carriers and Cargo
High Speed Crafts of 500 GRT and above.
Other cargo ships and Mobile Offshore Drilling Units of 500 GRT
N.B: ISM code is not applicable to Government operated ships used for
non-commercial purposes.
1. STANDARD CLAUSES
All marine hull policies covering ocean going vessels should be subject to
any of the following clauses. Any other clause can be incorporated only
with the specific approval of the Head Office.
Hull and Machinery policy:
Institute Time Clauses Hulls dt 1.10.83
Institute Time Clauses Hulls dt 1.10.83 extended to include

Protection and Indemnity risks as per clause 9 of the Institute Hulls
Port Risks clause dt 20.07.87 (applicable only when the ocean
going vessel is plying in coastal waters)
Institute Time Hulls Port Risks dt 20.7.87 (applicable only where

the trading is restricted to a single named port)
Institute Time Clauses-Hulls Total Loss only (including salvage,
salvage charges and sue and labour) dt 1.10.83
Institute Time Clauses-Hulls TL, GA, 3/4ths Collision liability

(including Salvage, salvage charges and sue an labour)
Increased Value/Disbursements Policy

Institute Time Clauses Hulls Disbursements and Increased Value
(Total Loss only including Excess Liabilities) dated 1-10-83,
Freight Insurance Policies

Institute Time Clauses – Freight dated 1-8-89.
GA Disbursements policies
Average Disbursement Clause A
2. STANDARD TRADING WARRANTIES
The insurance of all ocean going vessels should be subject to any one of
the following Trading Warranties:
(A) Warranted vessel plying only within the port limits of _______
(name of Port) with leave to proceed not beyond 12 N.M. from
the Prominent Point of the harbour/port as designated by Port
Authorities/Custom Authorities/Local Authorities.
NOTE: Vessels restricted to ply only within Calcutta Port limits will
have liberty to proceed to Sandheads, including Haldia.
(B) Institute Warranties dated 1-7-1976 but trading limited to East

and West Coasts of India, Pakistan, Sri Lanka and Bangladesh
(C) Institute Warranties dated 1-7-1976 but trading limited to East

and West Coasts of India, Pakistan, Sri Lanka, Bangladesh and
Burma with liberty to proceed to Maldives, Lakshadweep and
Andaman and Nicobar Islands.
(D) Institute Warranties dated 1-7-1976 but trading limited to not

East of 110° East longitude and not West of 30° East longitude.
(E) Institute Warranties dated 1-7-1976 but trading limited to not

East of 180° East longitude and not West of 20° West longitude.
(F) Institute Warranties (IWL) dated 1-7-1976
Note: Under the trading warranty ‗F‘ the vessels are allowed to
trade world wide except to those areas listed out in the said
warranty. For breaches of this F warranty refer to the rating table
mentioned in Section of the manual.
(G) Supply and/or Support Vessels and/or Tugs (Ocean-Going type)
―Warranted trading within the Exclusive Economic Zone of India

with liberty to shift/tow other vessels/rigs or to be towed and
with further liberty to tow subject to MMD/Surveyors‘ approval of
towage plan, not more than three vessels of conventional type at

a time, including rendering of salvage services, supply services,
fire fighting services, anchor handling services, cargo handling
etc. in her course of business as customary in the offshore trade
activities for which the vessel is intended, notwithstanding
whatever stated in the within mentioned clauses 1,2&3 of I.T.C.
Hulls dated 1-10-83 attached to the within mentioned Policy,
including passages via Sri Lanka waters whilst trading within the
Exclusive Economic Zone of India.‖
NOTE: The wordings of any trading warranty can be altered to suit the
requirements of a particular vessel/owner only with the specific approval
of the Head Office.
3. DISBURSEMENT WARRANTY
The disbursement warranty, in the Institute clauses, allows the following

Additional (Subsidiary) insurances to be effected in addition to the hull
and machinery policy:
1. Increased value and disbursement including excess liabilities for a

sum not exceeding 25% of the H&M sum insured
2. Freight insured for time for a sum not exceeding 25% of the H&M
sum insured.
Note: The overall limit of sum insured under the subsidiary insurances
(Increased value and freight put together) cannot exceed 25% of the
H&M sum insured.
4. CLASSIFICATION AND MAINTENANCE OF CLASS
It is mandatory that the vessel should be classed with a classification

society which is a member of the IACS.
The following classification societies are members of the IACS.
Lloyd‘s Register : 100A1 or B.S.

American Bureau of Shipping :  A1
Bureau Veritas : 1 3/3E 
China Classification Society : * CSA
Germanischer Lloyd : 100 A 5
Korean Register of Shipping : KRS 1
Maritime Register of Shipping : KM *
Nippon Kaiji Kyokai : NS *
Norske Veritas : 1A1

Registro Italiano : * 100-A-1.1
Indian Register of Shipping : SU
Registrar of Shipping USSR
Polish Registrar of Shipping
(NOTE:  in the above symbols denotes MALTESE CROSS)
The following warranty shall be incorporated in all the hull policies for
ocean going vessels:
―Warranted, vessel classed by ……..( name of Classification Society) and
class maintained throughout the currency of this policy or held covered
at Additional Premium, if any, as may be decided by the insurer,
provided immediate notice as to change of Classification Society of the
vessel or change, suspension, discontinuance, withdrawal or expiry of
class is given to the Insurer.‖
NOTE: Specific approval is to be obtained from the Head Office if the

vessel is classed with a society not mentioned above.
5. ISM WARRANTY
It is mandatory that all Ocean Going Vessels should have ISM

(International Safety Management) code compliance. Hence all Hull
policies covering ocean going vessels should have the following warranty
―Warranted the insured obtain requisite certificates from the concerned

authorities in compliance with the ISM code in respect of all vessels for
which ISM code has been made mandatory effective from 1 st July
1998/2002 failing which the insurance cover granted under the policy
shall exclude all liabilities arising from non-compliance of the ISM code‖.
6. DEDUCTIBLE
All policies are subject to a deductible which shall be expressed in

amounts and this deductible should be fixed through out the currency of
the policy and does not change with the change in sum insured during
the currency of the policy. The deductibles are not applicable to Total
Loss/Constructive Total Loss claims.
The policy should contain the following wording:

―The policy is subject to a deductible of Rs……(all claims other than
TL/CTL each and every accident/occurrence)
7. OTHER COMPULSORY WARRANTIES
All the hull policies should contain the following wordings
Institute Extended Radioactive Contamination Exclusion Clause dt

1.11.2002.
Chemical, Biological, Bio-Chemical and Electromagnetic Weapons
Exclusions Clause dt 10.10.2003
8. PREMIUM INSTALMENT CLAUSE
Hull premium can also be collected in 4 equal installments. The stamp

duty has to be collected in full along with the first installment. Service
tax has to be collected with each installment. When there is a total
loss/constructive loss claim the balance premium becomes immediately
due and the same has to be collected as soon as the insurer is aware of
such a claim.
Wherever premium installment facility is granted, the policy is subject to

the premium installment clause as per the specimen format attached in
the Annexure and the clause has to be attached to the policy.
Based on the merits of the case the insurer is allowed to collect the
installment premium beyond the due date provided there are no claims
during the period between the due date and the date of payment. An
undertaking to that effect may be collected from the insured and a
suitable endorsement issued.
9. ASSIGNMENT
Marine Hull policies are not freely assignable. Hence a dated notice of
such assignment is mandatory wherever the policy has to be assigned.
The assignment should be signed by the insured, and by the assignor in
case of a subsequent assignment, and the same is endorsed on the
policy and the policy with such endorsement should be produced before
payment of any claim/refund of premium.
Agreed Bank Clause shall not be used with any hull policy. Hull policies
shall not be issued in joint names of Owners and Financiers.
10. BREACH OF WARRANTY
Wherever there is intent of a breach of any warranty viz, trading

warranty, towage warranty, class warranty, carriage of coal warranty
etc the insurer should be intimated in advance and if the insurer agrees,
additional premium if any has to be collected before the commencement
of the breach and suitable endorsement issued.
11. CANCELLATION RULES
The Institute Time clauses make no provision for either party to give
notice to cancel the insurance contract. Unless
there is a breach of good faith,
breach of warranty,
some illegality that renders the policy void, or
the automatic termination clause comes into operation,
The underwriter is bound to honour the contract until its natural expiry
date. In principle, the assured is equally bound by the contract, and
cannot cancel it at his option, thereby claiming a refund of premium.
However, the hull policy can be cancelled with the mutual agreement
between the two parties. In such case the insured is entitled for a
refund of pro rata monthly premium for each un commenced month
provided a loss to the vessel has not occurred during the period of the
insurance.
Under the following situations the insurance is automatically terminated

and the policy has to be cancelled. The insured is entitled to a pro-rata
daily refund of premium in such cases for the balance period of
insurance.
Sale of the vessel

Change of flag
Change of ownership
When the vessel is bareboat chartered
Change of management.
Requisition
Change of classification society, or change / suspension /
discontinuance / withdrawal / or expiry of the class. However in this
case, if the insured informs the underwriter and the underwriters
agree in writing (by collection of additional premium if any), then
there would be no automatic termination of cover.
For further details refer to the relevant ‗Termination‘ clause and HO.
12. LAY UP RETURNS
The Institute Clauses other than Institute Port Risks clause, allows
refund of premium in the following situations:
1. Cancellation of policy due to automatic termination of cover as per

the relevant clause
2. Cancellation of policy after it is mutually agreed between the insured
and insurer since the clause does not provide for either party to give
notice to cancel the insurance contract.
3. Whenever a ship is laid up for a long period in a safe port and is not
exposed to the full navigating risks contemplated by the policy while
the vessel is trading during the year.
For the first two instances refer the previous sub section on ‗Cancellation
Rules‘.
The third instance is termed as ‗Lay up returns‘. In this case refund of a

proportion of the premium for the period of lay up, is allowed on certain
conditions as given below:
A minimum premium has to be retained i.e 25% of the net annual

premium when the vessel is not under repair and 50% of the net
annual premium when the vessel is under repair.
The lay up return is allowed only when the vessel is laid up in a safe
port for 30 consecutive days. Every 30 days or part thereof is taken
as One period. For eg there is no refund if the vessel is laid up for 28
days. When the vessel is laid up for 59 days, the refund is allowed
for 1 period and when the vessel is laid up for 89 days the refund is
allowed for 2 periods.
For each period, 1/12 of the net annual premium (net of all
discounts) less the minimum retention is payable.
EXAMPLE:
SUM INSURED : 500000000

Annual rate : (net of all
discounts) 0.5
Minimum retention: (25% ) 0.125 (0.5*25%)
Rate for one period: 1/12th 0.0417
Rate for 4 periods 0.167 (.0417*4)
Lay up refund of premium for 4
periods 208333 (50000000*(.167-.125)%)
The following documents have to be collected and verified before
granting of the refund.
i. Original Certificate issued by Port Authorities where the vessel

was laid-up or
ii. Original Certificate from the Repair Yard in case the vessel was
undergoing repair, during the period of lay-up or
iii. Copies of Log extracts for the period concerned if the vessel had
been shifted during the laid-up period or
iv. At least two anchor bearings for each place of lay-up.
If during the laid-up period the vessel was employed in trading
operations which entailed cargo loading or discharging at sea from or
into another vessel (not being a barge, lighter, or similar harbor or
inshore craft) laid-up returns shall be allowed for each period of 30
consecutive days during which she was not so employed.
NOTE: No refund of premium is payable when there is a

subsequent total loss of the vessel during the currency of the
policy. Hence refund of premium is to be allowed only after the
expiry of the policy and after ensuring there is no total loss of
the vessel.
13. CANCELLATION RETURNS ONLY (CRO) CONDITIONS
CRO is a phrase used in hull policies to indicate that the rate does not
allow lay-up returns.
The insured may opt out of the lay up return proviso since the
procedure to get the refund under the same is quite cumbersome and is
possible only after the expiry of the policy.
In such cases the insurance can be granted with the conditions of

insurance subject to ―CRO (Cancellations Returns Only) conditions‖.
Here the insured is eligible for a refund of premium only when the policy
is cancelled and not when the vessel is laid up.
Note: The rates given in the rating table in this manual are
subject to CRO conditions
14. COAL WARRANTY
In the Institute Warranties dt 1.7.76 there is a specific warranty stating

that the Indian coal should not be carried during the period
1. between 1st march to 30th June (b.d.i)

2. between 1st July and 30th September b.d.i except to ports in Asia, not
West of Aden or East of or beyond Singapore.
If the insured wants to carry coal during the specified period then on
payment of additional premium before the breach commences, this
warranty can be deleted.
15. STAMP DUTY
As per the Indian Stamp Act, the insured has to pay the stamp duty for
all marine hull policies. Wherever instalment facility has been given, the
stamp duty has to be collected in full along with the first instalment
premium. There is no refund of stamp duty when the sum insured is
reduced during the currency of the policy. Whereas further stamp duty
has to be collected for the difference in the sum insured whenever there
is an increase in the sum insured during the currency of the policy.
There is also no refund of stamp duty when the policy is cancelled.
16. RATING GUIDELINES (The rates indicated below are the base
rates and any discounts/loadings as per the circulars issued by
the Head Office from time to time, have to applied on these
rates)
The rating structure is given in a matrix format for easy reference.

Separate matrices are available depending on the type of vessel viz Dry
Cargo vessels, Bulk Carriers, Tankers and Tugs and Supply vessels and
further based on the age of the vessel.
The rates given in the matrices are for the following conditions of
insurance and trading warranty
Institute Time Clauses dated 1.10.83 subject to CRO conditions

Institute Warranties dt 1.7.76 (Trading Warranty F)
H&M MATRIX FOR DRY CARGO VESSELS

AGE<5YEARS
SUM INSURED 1000- 2000- 5000-
<1000 >10000
(Rs)/GRT(tons) 2000 5000 10000
Not exceeding 50 lakhs 1.715 2.090 2.660 3.900 5.018
50 lakhs to 75 lakhs 1.518 1.680 1.983 2.750 3.458
75 lakhs to 1 crore 1.420 1.475 1.645 2.175 2.678
1 crore to 2 crore 1.273 1.168 1.138 1.313 1.508
2 crore to 5 crore 1.184 0.983 0.833 0.795 0.806
5 crore to 10 crore 1.155 0.922 0.732 0.623 0.572
10 crore to 15 crore 1.145 0.901 0.698 0.565 0.494
15 crore to 20 crore 1.140 0.891 0.681 0.536 0.455
20 crore to 30 crore 1.135 0.881 0.664 0.508 0.416
30 crore to 40 crore 1.132 0.875 0.655 0.493 0.397
40 crore to 50 crore 1.131 0.872 0.650 0.485 0.385
50 crore to 60 crore 1.130 0.870 0.647 0.479 0.377
60 crore to 70 crore 1.129 0.869 0.645 0.475 0.371
70 crore to 80 crore 1.129 0.868 0.643 0.472 0.367
80 crore to 90 crore 1.128 0.867 0.641 0.469 0.364
90 crore to 100 crore 1.128 0.866 0.640 0.467 0.361
100 crore to 125 crore 0.896 0.688 0.516 0.385 0.306
125 crore to 150 crore 0.836 0.642 0.483 0.362 0.291

AGE 5 TO 10 YEARS
SUM INSURED 1000- 2000- 5000-
(Rs)/GRT(tons) <1000 2000 5000 10000 >10000
50 lakhs to 75 lakhs 1.578 1.800 2.170 3.050 3.805
75 lakhs to 1 crore 1.465 1.565 1.785 2.400 2.938
1 crore to 2 crore 1.295 1.213 1.208 1.425 1.638
2 crore to 5 crore 1.193 1.001 0.861 0.840 0.858
5 crore to 10 crore 1.159 0.931 0.746 0.645 0.598
10 crore to 15 crore 1.148 0.907 0.707 0.580 0.511
15 crore to 20 crore 1.142 0.895 0.688 0.548 0.468
20 crore to 30 crore 1.136 0.884 0.669 0.515 0.425
30 crore to 40 crore 1.134 0.878 0.659 0.499 0.403
40 crore to 50 crore 1.132 0.874 0.653 0.489 0.390
50 crore to 60 crore 1.131 0.872 0.649 0.483 0.381
60 crore to 70 crore 1.130 0.870 0.647 0.478 0.375
70 crore to 80 crore 1.129 0.869 0.644 0.474 0.371
80 crore to 90 crore 1.129 0.868 0.643 0.472 0.367
90 crore to 100 crore 1.128 0.867 0.642 0.470 0.364
100 crore to 150 crore 0.897 0.689 0.518 0.389 0.312
125 crore to 150 crore 0.837 0.644 0.486 0.394 0.406

AGE 10 TO 15 YEARS
SUM INSURED 1000- 2000- 5000-
<1000 >10000
(Rs)/GRT(tons) 2000 5000 10000
50 lakhs to 75 lakhs 1.778 2.002 2.482 3.407 4.368
75 lakhs to 1 crore 1.650 1.742 2.039 2.682 3.371
1 crore to 2 crore 1.458 1.352 1.374 1.595 1.876
2 crore to 5 crore 1.342 1.118 0.975 0.942 0.979
5 crore to 10 crore 1.304 1.040 0.842 0.725 0.680
10 crore to 15 crore 1.291 1.014 0.798 0.652 0.580
15 crore to 20 crore 1.284 1.001 0.776 0.616 0.531
20 crore to 30 crore 1.278 0.988 0.753 0.580 0.481
30 crore to 40 crore 1.275 0.982 0.742 0.561 0.456
40 crore to 50 crore 1.273 0.978 0.736 0.551 0.441
50 crore to 60 crore 1.271 0.975 0.731 0.543 0.431
60 crore to 70 crore 1.271 0.973 0.728 0.538 0.424
70 crore to 80 crore 1.270 0.972 0.726 0.534 0.418
80 crore to 90 crore 1.269 0.971 0.724 0.531 0.414
90 crore to 100 crore 1.269 0.970 0.722 0.529 0.411
100 crore to 125 crore 1.009 0.775 0.584 0.437 0.352
125 crore to 150 crore 0.942 0.724 0.547 0.412 0.334
AGE 15 TO 20 YEARS
SUM INSURED 1000- 2000- 5000-
<1000 >10000
(Rs)/GRT(tons) 2000 5000 10000
50 lakhs to 75 lakhs 1.971 2.248 2.825 3.852 5.093
75 lakhs to 1 crore 1.823 1.948 2.312 3.027 3.923
1 crore to 2 crore 1.601 1.498 1.542 1.790 2.168
2 crore to 5 crore 1.467 1.228 1.080 1.047 1.115
5 crore to 10 crore 1.423 1.138 0.926 0.800 0.764
10 crore to 15 crore 1.408 1.108 0.875 0.717 0.647
15 crore to 20 crore 1.400 1.093 0.849 0.676 0.589
20 crore to 30 crore 1.393 1.078 0.823 0.635 0.530
30 crore to 40 crore 1.389 1.071 0.811 0.614 0.501
40 crore to 50 crore 1.387 1.066 0.803 0.602 0.483
50 crore to 60 crore 1.385 1.063 0.798 0.593 0.472
60 crore to 70 crore 1.384 1.061 0.794 0.587 0.463
70 crore to 80 crore 1.384 1.059 0.791 0.583 0.457
80 crore to 90 crore 1.383 1.058 0.789 0.580 0.452
90 crore to 100 crore 1.382 1.057 0.787 0.577 0.448
100 crore to 125 crore 1.098 0.845 0.637 0.478 0.386
125 crore to 150 crore 1.026 0.790 0.597 0.451 0.368

AGE >20YEARS
SUM INSURED 1000- 2000- 5000-
(Rs)/GRT(tons) <1000 2000 5000 10000 >10000
50 lakhs to 75 lakhs 2.212 2.575 3.231 4.608 6.002
75 lakhs to 1 crore 2.039 2.220 2.636 3.608 4.615
1 crore to 2 crore 1.779 1.688 1.744 2.108 2.535
2 crore to 5 crore 1.623 1.368 1.208 1.208 1.287
5 crore to 10 crore 1.571 1.262 1.030 0.908 0.871
10 crore to 15 crore 1.554 1.226 0.970 0.808 0.732
15 crore to 20 crore 1.545 1.208 0.940 0.758 0.663
20 crore to 30 crore 1.536 1.191 0.911 0.708 0.594
30 crore to 40 crore 1.532 1.182 0.896 0.683 0.559
40 crore to 50 crore 1.529 1.176 0.887 0.668 0.538
50 crore to 60 crore 1.528 1.173 0.881 0.658 0.524
60 crore to 70 crore 1.526 1.170 0.877 0.651 0.514
70 crore to 80 crore 1.526 1.168 0.873 0.646 0.507
80 crore to 90 crore 1.525 1.167 0.871 0.641 0.501
90 crore to 125 crore 1.524 1.166 0.869 0.638 0.497
125 crore to 150 crore 1.522 1.162 0.863 0.628 0.483
H&M MATRIX FOR BULK CARRIERS/TANKERS/O.B.O

AGE < 5 YEARS
D E A D WEIGHT TONNAGE (tons)
5000 to 10001 15001 20001 30001 40001 60001 90001 120001
SUM INSURED (Rs) 10000 to to to to to to to and
15000 20000 30000 40000 60000 90000 120000 above
Not exceeding 50 lakhs 3.375 3.975 4.375 4.625 6.375 7.875 10.875 14.025 16.050
50 lakhs to 75 lakhs 2.375 2.775 3.042 3.208 4.375 5.375 7.375 9.475 10.825
75 lakhs to 1 crore 1.875 2.175 2.375 2.500 3.375 4.125 5.625 7.200 8.213
1 crore to 2 crore 1.125 1.275 1.375 1.438 1.875 2.250 3.000 3.788 4.294
2 crore to 5 crore 0.675 0.735 0.775 0.800 0.975 1.125 1.425 1.740 1.943
5 crore to 10 crore 0.525 0.555 0.575 0.588 0.675 0.750 0.900 1.058 1.159
10 crore to 15 crore 0.475 0.495 0.508 0.517 0.575 0.625 0.725 0.830 0.898
15 crore to 20 crore 0.450 0.465 0.475 0.481 0.525 0.563 0.638 0.716 0.767
20 crore to 30 crore 0.425 0.435 0.442 0.446 0.475 0.500 0.550 0.603 0.636
30 crore to 40 crore 0.413 0.420 0.425 0.428 0.450 0.469 0.506 0.546 0.571
40 crore to 50 crore 0.405 0.411 0.415 0.418 0.435 0.450 0.480 0.512 0.532
50 crore to 60 crore 0.400 0.405 0.408 0.410 0.425 0.438 0.463 0.489 0.506
60 crore to 70 crore 0.396 0.401 0.404 0.405 0.418 0.429 0.450 0.473 0.487
70 crore to 80 crore 0.394 0.398 0.400 0.402 0.413 0.422 0.441 0.460 0.473
80 crore to 90 crore 0.392 0.395 0.397 0.399 0.408 0.417 0.433 0.451 0.462
90 crore to 100 crore 0.390 0.393 0.395 0.396 0.405 0.413 0.428 0.443 0.453
100 crore to 125 crore 0.290 0.294 0.297 0.299 0.313 0.324 0.347 0.371 0.386
125 crore to 150 crore 0.274 0.278 0.282 0.283 0.321 0.309 0.333 0.358 0.374

AGE 5 TO 10 YEARS
D E A D WEIGHT TONNAGE
5000 10001 15001 20001 30001 40001 60001 90001 120001
SUM INSURED (Rs) to to to to to to to to and
10000 15000 20000 30000 40000 60000 90000 120000 above
50 lakhs to 75 lakhs 2.533 2.900 3.200 3.400 4.650 5.733 7.900 10.200 11.800
75 lakhs to 1 crore 2.000 2.275 2.500 2.650 3.588 4.400 6.025 7.750 8.950
1 crore to 2 crore 1.200 1.338 1.450 1.525 1.994 2.400 3.213 4.075 4.675
2 crore to 5 crore 0.720 0.775 0.820 0.850 1.038 1.200 1.525 1.870 2.110
5 crore to 10 crore 0.560 0.588 0.610 0.625 0.719 0.800 0.963 1.135 1.255
10 crore to 15 crore 0.507 0.525 0.540 0.550 0.613 0.667 0.775 0.890 0.970
15 crore to 20 crore 0.480 0.494 0.505 0.513 0.559 0.600 0.681 0.768 0.828
20 crore to 30 crore 0.453 0.463 0.470 0.475 0.506 0.533 0.588 0.645 0.685
30 crore to 40 crore 0.440 0.447 0.453 0.456 0.480 0.500 0.541 0.584 0.614
40 crore to 50 crore 0.432 0.438 0.442 0.445 0.464 0.480 0.513 0.547 0.571
50 crore to 60 crore 0.427 0.431 0.435 0.438 0.453 0.467 0.494 0.523 0.543
60 crore to 70 crore 0.423 0.427 0.430 0.432 0.446 0.457 0.480 0.505 0.522
70 crore to 80 crore 0.420 0.423 0.426 0.428 0.440 0.450 0.470 0.492 0.507
80 crore to 90 crore 0.418 0.421 0.423 0.425 0.435 0.444 0.463 0.482 0.495
90 crore to 100 crore 0.416 0.419 0.421 0.423 0.432 0.440 0.456 0.474 0.486
100 crore to 125 crore 0.309 0.314 0.317 0.319 0.333 0.353 0.371 0.397 0.415
125 crore to 150 crore 0.291 0.296 0.299 0.302 0.316 0.329 0.355 0.382 0.401

AGE 10 TO 15 YEARS
5000 10001 15001 20001 30001 40001 60001 90001 120001
10000 15000 20000 30000 40000 60000 90000 120000 above
50 lakhs to 75 lakhs 2.692 3.025 3.358 3.592 4.925 6.092 8.425 10.925 12.775
75 lakhs to 1 crore 2.125 2.375 2.625 2.800 3.800 4.675 6.425 8.300 9.688
1 crore to 2 crore 1.275 1.400 1.525 1.613 2.113 2.550 3.425 4.363 5.056
2 crore to 5 crore 0.765 0.815 0.865 0.900 1.100 1.275 1.625 2.000 2.278
5 crore to 10 crore 0.595 0.620 0.645 0.663 0.763 0.850 1.025 1.213 1.351
10 crore to 15 crore 0.538 0.555 0.572 0.583 0.650 0.708 0.825 0.950 1.043
15 crore to 20 crore 0.510 0.523 0.535 0.544 0.594 0.638 0.725 0.819 0.888
20 crore to 30 crore 0.482 0.490 0.498 0.504 0.538 0.567 0.625 0.688 0.734
30 crore to 40 crore 0.468 0.474 0.480 0.484 0.509 0.531 0.575 0.622 0.657
40 crore to 50 crore 0.459 0.464 0.469 0.473 0.493 0.510 0.545 0.583 0.610
50 crore to 60 crore 0.453 0.458 0.462 0.465 0.481 0.496 0.525 0.556 0.579
60 crore to 70 crore 0.449 0.453 0.456 0.459 0.473 0.486 0.511 0.538 0.557
70 crore to 80 crore 0.446 0.449 0.453 0.455 0.467 0.478 0.500 0.523 0.541
80 crore to 90 crore 0.444 0.447 0.449 0.451 0.463 0.472 0.492 0.513 0.528
90 crore to 100 crore 0.442 0.445 0.447 0.449 0.459 0.468 0.485 0.504 0.518
100 crore to 125 crore 0.329 0.333 0.336 0.339 0.354 0.368 0.394 0.423 0.444
125 crore to 150 crore 0.310 0.314 0.318 0.321 0.337 0.350 0.378 0.408 0.430

AGE 15 TO 20 YEARS
5000 10001 15001 20001 30001 40001 60001 90001 120001
10000 15000 20000 30000 40000 60000 90000 120000 above
50 lakhs to 75 lakhs 2.875 3.175 3.542 3.808 5.225 6.475 8.975 11.675 13.775
75 lakhs to 1 crore 2.275 2.500 2.775 2.975 4.038 4.975 6.850 8.875 10.450
1 crore to 2 crore 1.375 1.488 1.625 1.725 2.256 2.725 3.663 4.675 5.463
2 crore to 5 crore 0.835 0.880 0.935 0.975 1.188 1.375 1.750 2.155 2.470
5 crore to 10 crore 0.655 0.678 0.705 0.725 0.831 0.925 1.113 1.315 1.473
10 crore to 15 crore 0.595 0.610 0.628 0.642 0.713 0.775 0.900 1.035 1.140
15 crore to 20 crore 0.565 0.576 0.590 0.600 0.653 0.700 0.794 0.895 0.974
20 crore to 30 crore 0.535 0.543 0.552 0.558 0.594 0.625 0.688 0.755 0.808
30 crore to 40 crore 0.520 0.526 0.533 0.538 0.564 0.588 0.634 0.685 0.724
40 crore to 50 crore 0.511 0.516 0.521 0.525 0.546 0.565 0.603 0.643 0.675
50 crore to 60 crore 0.505 0.509 0.513 0.517 0.534 0.550 0.581 0.615 0.641
60 crore to 70 crore 0.501 0.504 0.508 0.511 0.526 0.539 0.566 0.595 0.618
70 crore to 80 crore 0.498 0.500 0.504 0.506 0.520 0.531 0.555 0.580 0.600
80 crore to 90 crore 0.495 0.498 0.501 0.503 0.515 0.525 0.546 0.568 0.586
90 crore to 100 crore 0.493 0.495 0.498 0.500 0.511 0.520 0.539 0.559 0.575
100 crore to 125 crore 0.366 0.369 0.373 0.376 0.392 0.407 0.435 0.466 0.490
125 crore to 150 crore 0.345 0.348 0.353 0.356 0.373 0.388 0.417 0.449 0.474

AGE > 20 YEARS
5000 10001 15001 20001 30001 40001 60001 90001 120001
10000 15000 20000 30000 40000 60000 90000 120000 above
50 lakhs to 75 lakhs 3.033 3.300 3.700 4.000 5.500 6.833 9.500 12.400 14.750
75 lakhs to 1 crore 2.400 2.600 2.900 3.125 4.250 5.250 7.250 9.425 11.188
1 crore to 2 crore 1.450 1.550 1.700 1.813 2.375 2.875 3.875 4.963 5.844
2 crore to 5 crore 0.880 0.920 0.980 1.025 1.250 1.450 1.850 2.285 2.638
5 crore to 10 crore 0.690 0.710 0.740 0.763 0.875 0.975 1.175 1.393 1.569
10 crore to 15 crore 0.627 0.640 0.660 0.675 0.750 0.817 0.950 1.095 1.213
15 crore to 20 crore 0.595 0.605 0.620 0.631 0.688 0.738 0.838 0.946 1.034
20 crore to 30 crore 0.563 0.570 0.580 0.588 0.625 0.658 0.725 0.798 0.856
30 crore to 40 crore 0.548 0.553 0.560 0.566 0.594 0.619 0.669 0.723 0.767
40 crore to 50 crore 0.538 0.542 0.548 0.553 0.575 0.595 0.635 0.679 0.714
50 crore to 60 crore 0.532 0.535 0.540 0.544 0.563 0.579 0.613 0.649 0.678
60 crore to 70 crore 0.527 0.530 0.534 0.538 0.554 0.568 0.596 0.628 0.653
70 crore to 80 crore 0.524 0.526 0.530 0.533 0.547 0.559 0.584 0.612 0.634
80 crore to 90 crore 0.521 0.523 0.527 0.529 0.542 0.553 0.575 0.599 0.619
90 crore to 100 crore 0.519 0.521 0.524 0.526 0.538 0.548 0.568 0.589 0.607
100 crore to 125 crore 0.380 0.383 0.387 0.390 0.404 0.416 0.442 0.469 0.492
125 crore to 150 crore 0.363 0.366 0.371 0.374 0.392 0.408 0.439 0.474 0.502
H&M MATRIX FOR TUGS/SUPPLY VESSELS/ANCHOR HANDLING TUG-CUM-SUPPLY VESSELS

AGE < 5 YEARS
SUM INSURED (Rs.) upto 1000- 2000- 3000- 4000- 5000- 6000- 7000- 8000- 9000-
>10000
/BHP 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Not exceeding 50 lakhs 1.378 1.929 2.299 2.907 3.515 3.620 4.152 4.180 4.655 5.130 5.700
50 lakhs to 75 lakhs 1.124 1.460 1.691 2.096 2.502 2.556 2.910 2.913 3.230 3.547 3.800
75 lakhs to 1 crore 0.998 1.226 1.387 1.691 1.995 2.024 2.290 2.280 2.518 2.755 2.850
1 crore to 2 crore 0.808 0.874 0.931 1.083 1.235 1.226 1.359 1.330 1.449 1.568 1.686
2 crore to 5 crore 0.694 0.663 0.657 0.718 0.779 0.747 0.800 0.760 0.808 0.855 0.950
5 crore to 10 crore 0.656 0.593 0.566 0.597 0.627 0.587 0.614 0.570 0.594 0.618 0.641
10 crore to 20 crore 0.637 0.558 0.521 0.536 0.551 0.507 0.521 0.475 0.487 0.499 0.511
20 crore to 50 crore 0.625 0.537 0.493 0.499 0.505 0.459 0.465 0.418 0.423 0.428 0.432
50 crore to 75 crore 0.623 0.532 0.487 0.491 0.495 0.449 0.452 0.405 0.409 0.412 0.414
75 crore to 90 crore 0.622 0.530 0.485 0.489 0.492 0.445 0.448 0.401 0.404 0.406 0.409
90 crore to 100 crore 0.621 0.530 0.484 0.487 0.490 0.443 0.446 0.399 0.401 0.404 0.406
100 crore to 125 crore 0.470 0.404 0.371 0.376 0.381 0.347 0.351 0.315 0.319 0.323 0.321
125 crore to 150 crore 0.439 0.377 0.348 0.353 0.358 0.326 0.330 0.298 0.302 0.306 0.305

AGE 5 to 10 YEARS
SUM INSURED(Rs) upto 1000- 2000- 3000- 4000- 5000- 6000- 7000- 8000- 9000-
>10000
/BHP 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
50 lakhs to 75 lakhs 1.317 1.618 1.853 2.296 2.739 2.831 3.224 3.255 3.610 3.965 4.323
75 lakhs to 1 crore 1.159 1.359 1.520 1.853 2.185 2.242 2.537 2.546 2.812 3.078 3.325
1 crore to 2 crore 0.922 0.969 1.021 1.188 1.354 1.359 1.506 1.482 1.615 1.748 1.900
2 crore to 5 crore 0.779 0.735 0.722 0.789 0.855 0.828 0.887 0.844 0.897 0.950 1.188
5 crore to 10 crore 0.732 0.657 0.622 0.656 0.689 0.652 0.681 0.631 0.657 0.684 0.713
10 crore to 20 crore 0.708 0.618 0.572 0.589 0.606 0.563 0.578 0.524 0.538 0.551 0.570
20 crore to 50 crore 0.694 0.595 0.542 0.549 0.556 0.510 0.516 0.461 0.466 0.471 0.475
50 crore to 75 crore 0.690 0.590 0.536 0.540 0.545 0.499 0.502 0.446 0.450 0.453 0.456
75 crore to 90 crore 0.689 0.588 0.534 0.537 0.541 0.495 0.498 0.442 0.445 0.448 0.450
90 crore to 100 crore 0.689 0.587 0.532 0.536 0.539 0.493 0.496 0.439 0.442 0.445 0.447
100 crore to 125 crore 0.517 0.441 0.400 0.403 0.406 0.370 0.373 0.331 0.333 0.335 0.337
125 crore to 150 crore 0.482 0.411 0.372 0.375 0.377 0.344 0.346 0.307 0.309 0.310 0.312

AGE 10 to 15 years
SUM INSURED (Rs.) upto 1000- 2000- 3000- 4000- 5000- 6000- 7000- 8000- 9000-
>10000
/BHP 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
50 lakhs to 75 lakhs 1.425 1.742 2.014 2.495 2.977 3.097 3.528 3.496 3.876 4.256 4.750
75 lakhs to 1 crore 1.254 1.463 1.653 2.014 2.375 2.451 2.774 2.736 3.021 3.306 3.800
1 crore to 2 crore 0.998 1.045 1.112 1.292 1.473 1.482 1.644 1.596 1.739 1.881 2.375
2 crore to 5 crore 0.844 0.794 0.787 0.859 0.931 0.901 0.965 0.912 0.969 1.026 1.425
5 crore to 10 crore 0.792 0.711 0.678 0.714 0.751 0.707 0.739 0.684 0.713 0.741 0.760
10 crore to 20 crore 0.767 0.669 0.624 0.642 0.660 0.610 0.626 0.570 0.584 0.599 0.618
20 crore to 50 crore 0.751 0.644 0.592 0.599 0.606 0.552 0.558 0.502 0.507 0.513 0.523
50 crore to 75 crore 0.748 0.638 0.584 0.589 0.594 0.539 0.543 0.486 0.490 0.494 0.499
75 crore to 90 crore 0.747 0.636 0.582 0.586 0.590 0.535 0.538 0.481 0.485 0.488 0.494
90 crore to 100 crore 0.746 0.635 0.581 0.584 0.588 0.532 0.536 0.479 0.482 0.485 0.489
100 crore to 125 crore 0.564 0.484 0.445 0.451 0.456 0.416 0.421 0.378 0.383 0.388 0.392
125 crore to 150 crore 0.527 0.453 0.417 0.423 0.429 0.391 0.397 0.357 0.362 0.367 0.371

AGE 15-20 years
/BHP 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 >10000
50 lakhs to 75 lakhs 1.555 1.900 2.214 2.746 3.278 3.297 3.753 3.838 4.256 4.674 5.225
75 lakhs to 1 crore 1.368 1.596 1.815 2.214 2.613 2.613 2.955 3.002 3.316 3.629 4.275
1 crore to 2 crore 1.088 1.140 1.216 1.416 1.615 1.587 1.758 1.748 1.905 2.062 2.375
2 crore to 5 crore 0.920 0.866 0.857 0.937 1.017 0.971 1.039 0.996 1.058 1.121 1.900
5 crore to 10 crore 0.864 0.775 0.737 0.777 0.817 0.766 0.800 0.745 0.776 0.808 0.950
10 crore to 20 crore 0.836 0.730 0.677 0.697 0.717 0.663 0.680 0.619 0.635 0.651 0.665
20 crore to 50 crore 0.819 0.702 0.641 0.649 0.657 0.602 0.608 0.544 0.550 0.557 0.570
50 crore to 75 crore 0.815 0.696 0.633 0.639 0.644 0.588 0.592 0.527 0.532 0.536 0.546
75 crore to 90 crore 0.814 0.694 0.631 0.635 0.640 0.583 0.587 0.522 0.525 0.529 0.532
90 crore to 100 crore 0.813 0.693 0.629 0.633 0.637 0.581 0.584 0.519 0.522 0.525 0.527
100 crore to 125 crore 0.574 0.493 0.451 0.458 0.464 0.425 0.431 0.386 0.391 0.396 0.398
125 crore to 150 crore 0.610 0.519 0.472 0.474 0.477 0.435 0.437 0.387 0.389 0.391 0.393

AGE > 20 years
/BHP 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 >10000
50 lakhs to 75 lakhs 1.792 2.017 2.537 3.145 3.753 3.838 4.370 4.421 4.902 5.383 5.700
75 lakhs to 1 crore 1.577 1.663 2.081 2.537 2.993 3.040 3.439 3.458 3.819 4.180 4.750
1 crore to 2 crore 1.254 1.131 1.397 1.625 1.853 1.843 2.043 2.014 2.195 2.375 2.850
2 crore to 5 crore 1.060 0.811 0.986 1.077 1.169 1.125 1.205 1.148 1.220 1.292 2.375
5 crore to 10 crore 0.996 0.705 0.849 0.895 0.941 0.885 0.925 0.859 0.895 0.931 1.425
10 crore to 20 crore 0.963 0.652 0.781 0.804 0.827 0.766 0.786 0.714 0.732 0.751 0.760
20 crore to 50 crore 0.944 0.620 0.740 0.749 0.758 0.694 0.702 0.628 0.635 0.642 0.665
50 crore to 75 crore 0.940 0.613 0.731 0.737 0.743 0.678 0.683 0.609 0.613 0.618 0.641
75 crore to 90 crore 0.938 0.610 0.728 0.733 0.738 0.673 0.677 0.602 0.606 0.610 0.618
90 crore to 100 crore 0.937 0.609 0.726 0.731 0.735 0.670 0.674 0.599 0.602 0.606 0.622
100 crore to 125 crore 0.709 0.656 0.557 0.564 0.571 0.523 0.529 0.474 0.479 0.485 0.501
125 crore to 150 crore 0.668 0.446 0.533 0.544 0.556 0.512 0.522 0.471 0.480 0.489 0.505
17. LOADING AND DISCOUNTS
The following loadings/discounts have to be given to arrive at a rate for

a different condition of insurance and/or a different trading warranty.
CHANGE IN CONDITIONS OF INSURANCE
Loading % to Discount% to
Conditions of Insurance be applied on be applied on
the matrix rate the matrix rate
Institute Time Clauses Hulls dt 1.10.83
extended to include Protection and Indemnity
risks as per clause 9 of the Institute Hulls Port 3
Risks clause dt 20.07.87 (applicable only to
vessels plying in coastal waters of India)
Institute Time Clauses Hulls Port Risks dt
6
20.7.87 (applicable only for single named port)
Institute Time Clauses Hulls Total Loss only
(including salvage, salvage charges and sue and 20
labour) dt 1.10.83
Institute Time Clauses Hulls TL, GA, 3/4ths
Collision liability (including Salvage, salvage 10
charges and sue an labour)
LAY UP RETURNS
If the insured wants to opt for full returns, i.e with the lay up return provision,
then a further loading of 5% has to be applied on the rate arrived for the
relevant institute clause.
CHANGE IN TRADING WARRANTY
Discount % (to be applied on the

Standard Trading Warranty rate arrived at for the relevant
‗conditions of insurance‘).
A 15.0
B 12.5
C 10.0
D 7.5
E 5.0
G 5.0
18. DEDUCTIBLES TABLE
Given below are the tables for arriving at the deductibles based on the
sum insured and age for sum insured upto Rs 100 crores.
DEDUCTIBLES FOR H&M SUM INSURED <10 CRORES

DEDUCTIBLE MINIMUM MAXIMUM
AGE (YEARS) % DEDUCTIBLE DEDUCTIBLE
<10 YEARS 0.5 3,00,000/- 5,00,000/-
11 TO 15 1 7,00,000/- 9,00,000/-
16 TO 20 1.5 9,00,000/- 11,00,000/-
21 TO 25 1.8 11,00,000/- 13,00,000/-
>25 1.9 13,00,000/- 14,00,000/-
DEDUCTIBLES FOR H&M SUM INSURED 10 TO 25 CRORES

AGE (YEARS)
% DEDUCTIBLE DEDUCTIBLE
<10 YEARS 0.3 5,00,000/- 7,00,000/-
11 TO 15 0.5 9,00,000/- 11,00,000/-
16 TO 20 0.75 9,00,000/- 13,50,000
21 TO 25 0.9 13,00,000/- 16,50,000/-
>25 0.95 14,00,000/- 17,00,000/-

AGE (YEARS)
<10 YEARS 0.225 7,00,000/- 11,00,000/-
11 TO 15 0.35 11,00,000/- 16,00,000/-
16 TO 20 0.4 13,50,000 20,00,000/-
21 TO 25 0.5 16,50,000/- 23,00,000/-
>25 0.55 17,00,000/- 25,00,000/-

AGE (YEARS)
<10 YEARS 0.2 11,00,000/- 17,00,000/-
11 TO 15 0.25 16,00,000/- 25,00,000/-
16 TO 20 0.35 20,00,000/- 25,00,000/-
21 TO 25 0.4 23,00,000/- 30,00,000/-
>25 0.45 25,00,000/- 32,00,000/-
For H&M sum insured exceeding Rs. 100 crores
Deductibles for H&M Sum Insured above Rs. 100 crores Deductibles
(Rs.)
H&M Sum Insured above Rs.100 crs but not above 35 lacs
Rs.125 crs.
Rs. 150 crs.
H&M Sum Insured above Rs. 150 crs but not above 50 lacs
Rs.175 crs.
Rs.200 crs
Rs.250 crs
H&M Sum Insured above Rs.250 crs. 50 lacs
The deductibles should be rounded off to the nearest 25,000/-
NOTE: The deductible may be modified with the concurrence and specific
approval of the Head Office.
19. CHANGE IN SUM INSURED
Whenever there is a change in sum insured during the currency of the

policy, the same H&M rate has to be applied. The deductible would also
not change.
20. CHANGE IN CONDITIONS OF INSURANCE
Change in the conditions of insurance will not be permitted during the

currency of the policy. In such case the policy has to be cancelled by
mutual agreement and a fresh policy with the revised condition of
insurance has to issued.
21. CHANGE IN TRADING WARRANTY
Change in trading warranty is permitted during the currency of the

policy. The rate remains the same if the existing trading warranty is
further restricted. But where the insured opts for wider trading
warranty, the rates have to be revised as per the rating guidelines and
the difference in premium has to be collected on a pro-rata daily basis.
22. RENEWAL
The vessel has to be rated afresh as per the rating guidelines and then
the claims experience loading/discount has to be given
23. CLAIMS EXPERIENCE
The claims ratio for the maximum of 5 years to be taken for the fleet as
a whole.
Claims ratio (%) Discount (%) Loading

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
24. RATING OF SUBSIDIARY INTERESTS
CONDITIONS OF
SUBSIDIARY INTEREST GUIDELINE RATE
COVER
Increased Institute Time Clauses 85% of the chargeable
value/Disbursements Hulls Disbursements H&M rate (without
and Increased Value loading/discount for
Total Loss only claims experience)
(including Excess
Liabilities) dated 1-10-
83.
Freight Institute Time Clauses – 90% of the chargeable
Freight dated 1-8-89. H&M rate (without
loading/discount for
claims experience)
GA Disbursements cover Average Disbursements 0.50% of the GAD sum
clause ‗A‘. insured
25. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES OF TRADING LIMITS (WITHIN INSTITUTE
WARRANTIES) RELATING TO SINGLE VOYAGE UNDER OWN POWER WITHOUT ANY TOW.
BREACH OF TRADING WARRANTY
TRADING WARRANTY
DISTANCE IN NM 'A' 'B' 'C' 'D' 'E'
Upto 2500 nm voyages can be undertaken along
the coasts of India (including Lakshadweep and
Andaman and Nicobar islands), SRI LANKA, 2% of the
PAKISTAN, AND BANGLADESH annual rate NA NA NA NA
Above 2500 nm voyages can be undertaken along
the coasts of India (including Lakshadweep and
Andaman and Nicobar islands), SRI LANKA, 25% of the
PAKISTAN, AND BANGLADESH annual rate NA NA NA NA
If vessels proceeds on voyage to ports/places
from nearest border of the existing Trading limits
i Not more than 1000 n.m. NA NA 2% of the 2% of the annual rate
annual rate
ii Not more than 1500 n.m. NA 2% of the
Annual rate
iii Not more than 2000 n.m. NA 2.5% of the annual rate
iv Not more than 2500 n.m. N3% of the 3% of the 3% of the annual rate
A annual rate annual rate
v MORE THAN 2500NM AND Not more than 5000 4% of the 4% of the a. During Fair weather a. During Fair weather
n.m. annual rate annual rate
3.5% of the annual rate 3% of the annual rate
b.During Adverse weather b.During Adverse weather
4.5% of the annual rate 4.5% of the annual rate
MORE THAN 5000NM NA 5% of the 5% of the
annual rate annual rate
NOTE: 1. For Subsidiary Interests: 50% of Additional Premium rates applicable to H&M interest
2. The above rates are for vessels having age less than 20 years. For vessels over 20 years old the above rates have to be loaded by 25%.
26. ADDITIONAL PREMIUM RATES FOR BREACH OF TRADING LIMITS UNDER INSTITUTE WARRANTIES DT
1.7.76 (STANDARD WARRANTY „F‟)
BREACH OF INSTITUTE WARRANTIES DT 1.7.76

AREA 1(a)(II) 21 DEC TO 15 JAN 7.5% OF THE ANNUAL RATE
16 JAN TO 4 APRIL 22.5% OF THE ANNUAL RATE
5 APRIL TO 15 APRIL 15% OF THE ANNUAL RATE
16 APRIL TO 30 APRIL 7.5% OF THE ANNUAL RATE
1 DEC TO 15 DEC 7.5% OF THE ANNUAL RATE
AREA 1(a)(iii)
16 DEC TO 31 DEC 20% OF THE ANNUAL RATE
1 JAN TO 31 MAR 30%OF THE ANNUAL RATE
1 APRIL TO 20 APRIL 20% OF THE ANNUAL RATE
21 APRIL TO 30 APRIL 7.5% OF THE ANNUAL RATE
AREA 1(b) 16 APRIL TO 15 NOV 6.25% OF THE ANNUAL RATE
16 NOV TO 15 APRIL 18.75% OF THE ANNUAL RATE
AREA 2(a) 10 DEC TO 14 JAN 17.5% OF THE ANNUAL RATE
15JAN TO 5 MAY 25% OF THE ANNUAL RATE
AREA 2(b) 15 DEC TO 31 JAN 17.5% OF THE ANNUAL RATE
1 FEB TO 15 APRIL 25% OF THE ANNUAL RATE
AREA 2( c) 8 JAN TO 5 MAY 7.5 % OF THE ANNUAL RATE
AREA 2(d) 28 DEC TO 5 MAY 10% OF THE ANNUAL RATE
NOTE: TRANSITS OF THE BERING SEA BY OCEAN GOING VESSELS NAVIGATING ON THE NORTH CIRCULAR ROUTE ALLOWED
WITHOUT ADDITIONAL PREMIUM SUBJECT TO THE BERING SEA TRANSIT CLAUSE ATTACHED TO THE POLICY/ENDORSEMENT.
AREA OF CHURCHILL 15% OF THE ANNUAL RATE

EAST OF KOLA BAY AND NOT EAST OF
KANIN PENINSULAR
10 MAY TO 31 OCTOBER NO ADDITIONAL PREMIUM
ARCHANGEL
1 NOV TO 5 NOV 25% OF THE ANNUAL PREMIUM
6 NOV TO 10 NOV 50% OF THE ANNUAL RATE
AFTER 15 NOV 1.5% OF THE ANNUAL RATE
10 MAY TO 31 OCTOBER NO ADDITIONAL PREMIUM
OTHER PORTS
AFTER 15 NOV 1.75% OF THE ANNUAL RATE
SAKHALIN ISLAND 50% OF THE ANNUAL RATE
ANTARTIC
SAINT GEORGIA 1 JULY TO 14 OCT 25% OF THE ANNUAL RATE
SOUTH SHETLANDS 1 MAY TO 31 OCT 50% OF THE ANNUAL RATE
ANTARTIC CATCHING FIELDS 1 NOV TO 15 APRIL 100% OF THE ANNUAL RATE
COOK INLET ALASKA 1 MAY TO 31 OCTOBER 7.5% OF THE ANNUAL RATE
1 NOV TO 15 DEC 15% OF THE ANNUAL RATE
16 DEC TO 15 MARCH 25% OF THE ANNUAL RATE
16 MARCH TO 30 APRIL 15% OF THE ANNUAL RATE
2. The above rates are for vessels having age less than 20 years. For vessels over 20 years old the above rates have
to be loaded by 25%.
27. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES OF TRADING LIMITS (WITHIN
INSTITUTE WARRANTIES) RELATING TO SINGLE VOYAGE UNDER OWN POWER for Ocean-going
Tugs insured subject to Trading Warranty „A‟
Single Double Triple Multiple

DISTANCE IN NM/TYPE OF TUG
Tow Tow Tow Tow
Upto 2500 nm voyages can be undertaken along the coasts 2% of the 2.2% of 2.4% of 2.6% of
of India (including Lakshadweep and Andaman and Nicobar annual the annual the annual the annual
islands), SRI LANKA, PAKISTAN, AND BANGLADESH rate rate rate rate
Above 2500 nm voyages can be undertaken along the 25% of 2.2% of 2.4% of 2.6% of
coasts of India (including Lakshadweep and Andaman and the annual the annual the annual the annual
Nicobar islands), SRI LANKA, PAKISTAN, AND BANGLADESH rate rate rate rate
2. The above rates are for vessels having age less than 20 years. For vessels over 20 years old the above
rates have to be loaded by 25%.
3. In case of Tugs undertaking towages the following Warranty shall be incorporated in the Policy.
―Warranted towage arrangements supervised and found satisfactory by a Surveyor approved by the Insurers‖.
28. INSURANCE OF LAID-UP VESSELS WHILST AWAITING

BREAK-UP WITHIN THE SHELTERED AND PROTECTED
WATERS OF ANY PORT IN INDIA
This Section does not apply to Vessels where a Cover against

Navigation risks is in force.
Vessels awaiting beak-up shall be insured on the following basis
only.
BASIS OF VALUATION
H&M Sum Insured shall be the sum total of
i) Actual Purchase price

ii) 10% of (i)
and
iii) Actual Duty payable
Conditions of Insurance Rate

a. TL/CTL, SC with deductible of 0.20% for first 15 days or part
½% of the Sum Insured for H&M thereof. For each subsequent
Interest or Rs.1500/- whichever period of 7 days or part thereof
is higher, all claims, each @ 0.05%
accident or occurrence other than
TL/CTL
Warranted adequate crew

maintained on board at all times
as under:
i.One Certified Officer
ii.Two Bonafied Seamen and
iii.Three watchmen
Seamen may be employed in place of
Watchmen but Watchmen shall not
be employed in place of Seamen
b. Insurance may be extended to include the following additional

risks at Additional Premium given below:
Conditions of Insurance Rate
i. 4/4ths Collision Liability Re.1/- per GT for first 15 days
subject to Clauses 7 & 8 of or part thereof. For each
ITC Hulls Port Risks dated subsequent period of 7 days or
20-7-87. part thereof @Rs.0.25 per GRT
ii. P&I Risks subject to Clause Re.1/- per GRT for rist 15 days
9 of ITC Hulls Port Risks or part thereof. For each
dated 20-7-87. subsequent period of 7 days or
part thereof @ Rs.0.25 per GRT
The Policy shall be issued subject to following Warranties:
1. ―Warranted that claim for Duty will be payable only if it

becomes legally due and is actually incurred by the Insured.‖
2. ―Insurance under the Policy will cease once the Vessel is
beached or breaking operations are started, whichever, is
earlier, and Insurers will not be on risk from that time.‖
3. ―Warranted that the Vessel is anchored at safe anchorage.‖
(Applicable only for laid-up Vessels).
For waiver of Warranty (3) above, A.,P. @ 10% of the gross

applicable rate shall be charged.
NOTES
1) Vessels insured on Time basis have liberty to shift or be shifted
within the sheltered and protected waters of the same port,
including shifting to the Break-up Yard within the sheltered and
protected waters of the port.
2) Voyage of a Vessel not insured on Time basis from place of
sheltered and protected waters of a Port to Break-up Yard within
the sheltered and protected waters of the same Port, shall be
covered at 20% of rates given above for the first 15 days.
3) War and Strikes Risks Cover may be granted as per the
Government War Risks Scheme, if eligible.
29. UNDERWRITING GUIDELINES
The proposal form has to be completely filled and duly signed by the
authorized signatory of the insured
The vessel has to be registered under the MS Act
The vessel should be classed and the class warranty to be
mandatorily mentioned in the policy
The vessel should have ISM code certification and the ISM warranty
has to be mandatorily mentioned in the policy.
Deductibles have to be mentioned in the policy
Since the guidelines rates are inclusive of the CRO discount, the
policy should be subject to CRO conditions unless the insured opts
for lay up returns and the rate is suitably loaded. CRO conditions
have to be mandatorily mentioned in the policy.
The clauses to be attached have to be clearly mentioned in the policy
and the same have to be attached to the original of the policy.
The policy should contain the wording ‗subject to Institute Extended
Radioactive Contamination Exclusion clause dt…and the particular
clause has to be attached to the policy
The policy should contain the wording ‗subject to Chemical,
Biological, Bio-Chemical and Electromagnetic Weapons Exclusions
Clause‘ and the same is to be attached to the policy
The trading warranty has to be clearly mentioned in the policy.
Acceptance of very old vessels without proper inspection and
Condition cum Valuation Survey should be avoided
Acceptance of vessels where repayment of loan instalments is
irregular should be discouraged.
Previous insurance history should be scrutinized before acceptance of
very old vessels.
30. PROPOSAL FORM
It is mandatory to collect the completed proposal form duly signed by the

authorized signatory of the insured. A specimen proposal form is given below:
MARINE HULL PROPOSAL FORM (FOR OCEAN GOING VESSELS)

PROPOSER‟S DETAILS
NAME OF THE PROPOSER
ADDRESS OF THE PROPOSER
TEL
Mobile
Email id
STATE WHETHER THE
PROPOSER IS THE
OWNER/MANAGER/BAREBOAT
CHARTERER
IF THE PROPOSER IS A NAME OF THE OWNER
MANAGER/BAREBOAT
ADDRESS OF THE OWNER
CHARTERER THEN OWNERS'
DETAILS
TEL
Mobile
Email id
VESSEL PARTICULARS
NAME OF VESSEL
FLAG OF VESSEL
TYPE OF VESSEL (AS
REGISTERED)/PURPOSE USED
FOR
GROSS REGD. TONNAGE
DEAD WEIGHT TONNAGE
(MANDATORY FOR TANKERS
AND BULK CARRIERS)
BREAK HORSE POWER
(MANDATORY FOR TUGS AND
SUPPLY VESSELS)
PLACE WHERE BUILT
MATERIAL OF WHICH BUILT
IF BUILT OF WOOD STATE
WHETHER COPPER SHEATHED
OR NOT
YEAR OF BUILT
PORT OF REGISTRY
LLOYDS REGISTER NUMBER
BY WHOM, WHERE AND WHEN
WAS THE VESSELS LAST
SURVEYED
NAME OF THE CLASSIFICATION □ Lloyd‘s Register □ American Bureau of
SOCIETY (TICK THE RELEVANT Shipping □ Bureau Veritas □ China
ONE) Classification Society □ Germanischer Lloyd □
Korean Register of Shipping □ Maritime Register
of Shipping □ Nippon Kaiji Kyokai □ Norske
Veritas □ Registro Italiano □ Indian Register of
Shipping □ Registrar of Shipping USSR □ Polish
Registrar of Shipping
IF THE VESSEL IS NOT CLASSED
WITH ANY OF THE MENTIONED
CLASSIFICATION SOCIETIES
THEN STATE THE NAME OF THE
CLASSIFICATION SOCIETY WITH
THE SYMBOL
IS THE VESSEL ISM CERTIFIED YES/NO
HULL AND MACHINERY INSURANCE COVER
PROPOSED SUM FOR
INSURANCE (currency to be
mentioned)
CONDITIONS OF INSURANCE
(TICK THE REQUIREMENT □ Institute Time Clauses Hulls dt 1.10.83
□ Institute Time Clauses Hulls dt 1.10.83
extended to include Protection and Indemnity
risks as per clause 9 of the Institute Hulls Port
Risks clause dt 20.07.87( Applicable for ocean
going vessels plying only in coastal waters)
□ Institute Hulls Port Risks dt 20.7.87 (applicable
only when the vessel is trading in one named
port)
□ Institute Hulls Total Loss only (including
salvage, salvage charges and sue and labour) dt
1.10.83
□ Institute Hulls TL, GA, 3/4ths Collision liability
(including Salvage, salvage charges and sue an
labour)
STATE THE GEOGRAPHICAL □ Vessel plying only within the port limits of
LIMITS REQUIRED (TICK THE _______ (name of Port)
REQUIREMENT)
□ Trading limited to East and West Coasts of
India, Pakistan, Sri Lanka and Bangladesh
□ Trading limited to East and West Coasts of

India, Pakistan, Sri Lanka, Bangladesh and
Burma with liberty to proceed to Maldives,
Lakshadweep and Andaman and Nicobar Islands.
□ Trading limited to not East of 110° East
longitude and not West of 30° East longitude.
□ Trading limited to not East of 180° East
longitude and not West of 20° West longitude.
□ World wide trading. ( It is to be noted that
certain areas would be excluded under the
policy)
□ Trading within the Exclusive Economic zone of
India (applicable for supply/support vessels/tugs
DO YOU WANT COVER FOR LAY
UP RETURNS YES/NO
INCREASED VALUE/DISBURSEMENT INSURANCE COVER (OPTIONAL)
SUM PROPOSED FOR
INSURANCE (cannot exceed 25%
of the H&M sum insured)
FREIGHT INSURANCE COVER (OPTIONAL)
SUM PROPOSED FOR
INSURANCE (Cannot exceed
25% of the sum insured)
NOTE: THE TOTAL SUM INSURED UNDER INCREASED VALUE AND THE
FREIGHT SHOULD NOT EXCEED 25% OF THE H&M SUM INSURED
WAR COVER
DO YOU WANT WAR COVER ? YES/NO
(the sum insured would be the
total sum insured of H&M and
the subsidiary interests)
GENERAL
NO OF OCEAN GOING VESSELS
OWNED BY YOU
PREMIUM /CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS IN A
THE PAST 5 YEARS FOR THIS SEPARATE SHEET
PARTICULAR VESSEL
PREMIUM/CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS IN A
THE PAST 5 YEARS FOR THE SEPARATE SHEET

FLEET AS WHOLE
OTHER BUSINESS FROM
PROPOSER
Has any Company or insurer in
respect of any the risk to which
this proposal applies-
A Declined to insure you?
B Refused to renew your insurance?
C Increased your premium on renewal?
Is the vessel at present insured with any other insurer? If so, please give name of
the insurer and brief details of the cover.
DECLARATION
I/we the undersigned, hereby declare that the above statements, and particulars are
true and complete and further declare that I/We have not withheld any information
which is calculated to influence the decision of the Company in accepting the
insurance and agree that this declaration shall be the basis of the contract between
me/us and UNITED INDIA INSURANCE COMPANY LTD.
Date
Place (SIGNATURE OF THE PROPOSER)
AGENT‟S REPORT I have known the Proposer for years, I
recommend acceptance of the proposal as the
moral hazard is satisfactory.
(SIGNATURE)
The liability of the Company does not commence until the acceptance of
the proposal has been formally intimated by the Company and the
premium is received by the Company.
Section 41 of the insurance Act.1938 which is in force from the 1st July 1939, reads
as follow :
No person shall allow, or offer to allow, either directly, or indirectly as an inducement
to any person to takeout or renew, or continue an insurance in respect of risk
relating to lives or property in India any rebate of whole or part of the commission
payable or any rebate of the premium shown on the Policy, nor shall any person
taking out or renewing or continuing a policy accept any rebate, except such rebate
as may be allowed in accordance with published prospectus or tables of the insurer.
THE OFFER PAYMENT OR ACCEPTANCE OF A REBATE OF THE PREMIUM
HEREUNDER IS THEREFORE A BREACH OF THE LAW
SECTION 2
UNDERWRITING OF INLAND VESSELS

The following criteria are essential to categorise a vessel as an Inland

Vessel.
The vessel should be registered under the Inland Vessel

Act/Coastal Vessel Act under the Indian flag.
The vessel should ply in inland waters.
All types of Vessels such as Barges, Pontoons, Flats,
Floating Cranes, Launches, Passenger Vessels, Tugs, Port
Crafts, catamaran, ferry boats etc employed in Inland
Waters and Coastal Waters are categorized as inland
vessels.
By definition Inland Waters means
All sheltered and protected waters such as:
(i) Harbour Waters
(ii) Back Waters
(iii) Sea Water within a radius of 12 N.M. from the Prominent
Point of a names Port designated by Port Authorities/Customs
Authorities/Local Authorities; and
(iv)River Waters, Canal Waters, Lake Waters and the like.
1. STANDARD CLAUSES
All marine hull policies covering Inland vessels should be subject to any
of the following clauses. Any other clause can be incorporated only with
the specific approval of the Head Office.
ITC-Hulls Total Loss Only (including Salvage, Salvage Charges and

Sue and Labour) dated 1-10-83 subject to CRO conditions.
For attaching ITC-Hulls Total Loss, General Average and 3/4ths

Collision Liability (including Salvage, S.C. & S and L) dt.1-10-83
subject to CRO conditions
Institute Time Clauses – Hulls dated 1-10-83 Subject to CRO

conditions.
Institute Time Clauses – Hulls dated 1-10-83 with P&I extension as

per clause 9 of ITC Port Risk dt 20.7.87 Subject to CRO conditions.
Institute of Time Clauses – Hulls dated 1-10-83 with 3/4ths Collision

Liability amended to 4/4ths Collision Liability subject to CRO
conditions.
Institute of Time Clauses – Hulls dated 1-10-83 with 3/4ths Collision

Liability amended to 4/4ths Collision Liability with P&I extension as
per clause 9 of ITC hulls Port risks dt 20.7.87 subject to CRO
conditions.
Institute Time Clauses – Hulls Port Risks dated 20-7-87.
Increased Value/Disbursments Policy
Institute Time Clauses Hulls Disbursements and Increased Value

Total Loss only (including Excess Liabilities) dated 1-10-83.
The insurance of all inland vessels should be subject to any one of the
following Trading Warranties:
A. For all types of Vessels excluding Tugs and Launches/Passenger

Vessels employed in Inland Water of India (excluding Bihar, West
Bengal and Assam)
Warranted Vessel employed for carrying General/Bulk Cargo and
operations connected therewith in______________inland waters
with leave to proceed up to a radius of 12 NM into the sea from
the Prominent Point of _______ inland waters (as designated by
Port Authorities/Customs Authorities/Local Authorities) during the
fair weather season as may be declared by Port Authorities.
Warranted Vessel certified and licensed for trading by competent

authorities.
B. For Tugs employed in Inland Waters of India (excluding Bihar,

West Bengal and Assam)
Warranted Vessel employed for customary operations, including
towage operations in _____________ inland waters with leave to
proceed up to a radius of 12 NM into the sea from the Prominent
Point of ___________ inland waters (as designated by Port
Authorities/Customs Authorities/Local Authorities) during the fair
weather season as may be declared by Port Authorities.
Warranted Vessel certified and licensed for trading by competent

authorities.
C. For Launches/Passenger Vessels employed in Inland Waters of

India (excluding Bihar, West Bengal and Assam)
Warranted Vessel employed for carrying passengers, stevedoring
personnel, ship‘s crew, stores, etc. with liberty to undertake
towages as may be customary in ______________ inland waters
with leave to proceed up to a radius of 12 NM into the sea from
the Prominent Point of _________ inland waters (as designated
by Port Authorities/Customs Authorities/Local Authorities) during
the fair weather season as may be declared by Port Authorities.
Warranted vessel certified and licensed for trading by competent

authorities.
NOTE:
If a vessel insured subject to any of the above trading warranties

wishes to undertake voyage(s) to any other port or ports falling
within the said radius of 12 NM or wishes to ply in any other such
port or ports falling within the said radius of 12 NM, the same
may be opted for at inception of the policy and may be allowed at
an additional premium of 10% on the annual rate.
D. For all types of Vessels excluding Tugs and Launches/Passenger

Vessels employed in Inland Waters of Bihar, West Bengal and
Assam
a. Warranted Vessel employed for carrying General/Bulk Cargo

and operations connected therewith in Calcutta/Haldia Port
with liberty to ply between these Ports.
Warranted Vessel certified and licensed for trading by

competent authorities.
OR
b. Warranted Vessel employed for carrying General/Bulk Cargo

and operations connected therewith in Inland Waters of
Bihar, West Bengal & Assam with liberty to proceed to
Sandheads.

E. For Tugs employed in Inland Waters of Bihar, West Bengal &

Assam
a. Warranted Vessel employed for customary operations,

including towage operations, in Calcutta/Haldia Port with
liberty to ply between these Ports.

OR
b. Warranted Vessel employed for customary operations,

including towage operations, in Inalnd Waters of Bihar, West
Bengal & Assam with liberty to proceed to Sandheads.

F. For Launches/Passenger Vessels employed in Inland Waters of

Bihar, West Bengal and Assam.
a. Warranted Vessel employed for carrying passengers,

stevedoring personnel, ship‘s crew, stores, etc. with liberty to
undertake towages as may be customary in Calcutta/Haldia
Port with liberty to ply between these Ports.

OR
b. Warranted Vessel employed for carrying Passengers,

stevedoring personnel. ships‘ crew, stores, etc. with liberty to
undertake towages as may be customary in Inland Waters of
Bihar, West Bengal & Assam with liberty to proceed to
Sandheads.

NOTE: The wordings of any trading warranty can be altered to

suit the requirements of a particular vessel/owner only with the
specific approval of the Head Office.
The following warranty shall be incorporated in all Policies where the

insurance is accepted and rated on the basis that the Ship is fully
classed with the Indian Register of Shipping (IRS):
―Warranted, vessel classed by the Indian Register of Shipping

and class maintained throughout the currency of this policy or
held covered at Additional Premium, if any, as may be decided by
the insurer, provided immediate notice as to change of
Classification Society of the vessel or change, suspension,
discontinuance, withdrawal or expiry of class is given to the
Insurer.‖
4. DEDUCTIBLE
All policies are to be subject to a deductible which shall be expressed in



Chemical, Biological, Bio-Chemical and electromagnetic Weapons
Exclusions Clause..
Hull premium can also be collected in 4 equal instalments . The stamp

duty has to be collected in full along with the first instalment. Service
tax has to be collected with each instalment. When there is a total
loss/constructive loss claim the balance premium becomes immediately
due and the same has to be collected as soon as the insurer is aware of
such a claim.
Wherever premium instalment facility is granted, the policy is subject to

the premium instalment clause as per the specimen format attached and
the clause has to be attached to the policy.
The insurer is allowed to collect the instalment premium beyond the due
date provided there are no claims during the period between the due
date and the date of payment. An undertaking to that effect may be
collected from the insured and a suitable endorsement issued.
7. ASSIGNMENT
The assignment should be signed by the insured and by the assignor in
case of a subsequent assignment and the same is endorsed on the
shall not be issued in joint names of owners and financiers.

warranty, towage warranty, class warranty etc the insurer should be
intimated in advance and if the insurer agrees, additional premium if any
has to be collected before the commencement of the breach and
suitable endorsement issued.
9. SHORT PERIOD COVER
Insurance for less than 12 months may be granted by charging 1/8 th of

the annual rate per month or part thereof. No instalment facility will be
available.
The hull policy can be cancelled with the mutual agreement between the
two parties. In such case the insured is entitled to a refund of pro rata
monthly premium for each un-commenced month provided a total loss
of the vessel has not occurred during the period of the insurance.
In the following situations the insurance is automatically terminated and

the policy has to be cancelled and the insured is entitled to a pro-rata
daily refund of premium.
Sale of the vessel

Change of flag
Change of ownership
Requisition
agree in writing (by collection of additional premium of any) , then
For further details refer to the relevant ‗Termination‘ clause and to

RO/HO
The rates given in the rating table in this section are subject to CRO
conditions, which means that the insured is eligible for a refund of
premium only when the policy is cancelled and not when the vessel is
laid up.
NOTE:
1. Cover subject to Full Returns shall not be granted. However,

requests for cover subject to Full Returns may be granted with
the specific approval of the Head Office. In such cases the rates
have to be loaded by 5%.
2. Lay up return proviso is not available for policies which are

subject to Institute Hulls Ports Risks dt 20.07.87.
12. STAMP DUTY
As per the Indian Stamp Act, the insured has to pay the stamp duty.
Wherever instalment facility has been given, the stamp duty has to be
collected in full along with the first instalment premium. There is no
refund of stamp duty when the sum insured is reduced during the
currency of the policy. Whereas further stamp duty has to be collected
for the difference in the sum insured whenever there is an increase in
the sum insured during the currency of the policy. There is also no
refund of stamp duty when the policy is cancelled.
13. RATING GUIDELINES. (The rates indicated below are the base
rates)

Separate matrices are available depending on the type of vessel viz
Barges, tugs, passenger launch and further based on the age of the
vessel.
The rates given in the matrices are for the following conditions of

Standard warranty
Vessels are equipped with collision bulkhead/twin engine/double
bottom.
H&M RATE FOR MECHANISED STEEL BARGES/TUGS/LAUNCH

AGE < 5 years
GRT (Tons) / 10 lacs 1crore
<=10 50 lacs to >10
SUM INSURED to 50 to 10
lacs 1 crore crore
(Rs) lacs crore
<=500 0.72 0.50 0.48 0.45 0.45
500 to 1000 1.80 0.70 0.59 0.46 0.45
1000 to 1500 3.15 0.99 0.70 0.48 0.45
1500 to 2000 4.50 1.25 0.85 0.49 0.45
2000 to 2500 5.85 1.50 0.99 0.50 0.45
2500 to 5000 7.20 1.80 1.10 0.52 0.45
5000 to 10000 10.00 2.50 1.80 0.55 0.45
>=10000 15.00 5.00 3.00 0.70 0.45

AGE 5 to 10 years
GRT (Tons) / SUM <=10 10 lacs to 50 lacs to 1 1crore to >10
INSURED (Rs) lacs 50 lacs crore 10 crore crore
<=500 0.85 0.60 0.55 0.54 0.54

500 to 1000 2.00 0.85 0.70 0.56 0.54
1000 to 1500 3.50 1.15 0.85 0.57 0.54
1500 to 2000 5.00 1.45 1.00 0.59 0.54
2000 to 2500 6.50 1.75 1.10 0.60 0.54
2500 to 5000 8.00 2.00 1.25 0.62 0.54
5000 to 10000 15.00 3.00 2.00 0.70 0.54
>=10000 20.00 6.00 3.50 0.85 0.54

AGE 10 to 20 years
GRT (Tons) / SUM <=10 10 lacs to 50 lacs to 1 1crore to >10
INSURED (Rs) lacs 50 lacs crore 10 crore crore
<=500 1.10 0.75 0.70 0.68 0.68
500 to 1000 2.75 1.10 0.90 0.70 0.68
1000 to 1500 5.00 1.55 1.10 0.73 0.68
1500 to 2000 7.00 2.00 1.30 0.75 0.68
2000 to 2500 9.50 2.45 1.50 0.77 0.68
2500 to 5000 11.00 2.90 1.80 0.79 0.68
5000 to 10000 20.00 5.00 2.50 0.90 0.68
>=10000 25.00 7.00 5.00 1.10 0.68

AGE > 20 years
GRT (Tons) / SUM <=10 10 lacs to 50 lacs to 1 1crore to
INSURED (Rs) lacs 50 lacs crore 10 crore >10 crore
<=500 1.50 1.10 1.06 1.00 0.99
500 to 1000 4.00 1.50 1.30 1.02 0.99
1000 to 1500 7.00 2.00 1.60 1.06 0.99
1500 to 2000 11.00 3.00 2.00 1.09 0.99
2000 to 2500 14.00 3.50 2.30 1.12 0.99
2500 to 5000 17.00 4.00 2.50 1.16 0.99
5000 to 10000 25.00 6.00 3.00 1.33 0.99
>=10000 30.00 8.00 6.00 1.66 0.99
14. LOADINGS AND DISCOUNTS
LOADING FOR DIFFERENT TYPE OF VESSEL

Vessels with Double Bottom, Single Engine and Collision Bulkhead

load the above rate by 20%
Vessel with Single Bottom. Twin Engines and Collision Bulkhead load
the above rate by 30%
Vessel with Single Bottom, Single Engine and Collision Bulkhead load
the above rate by 50%
Vessel with no collision bulkhead load the final rate by 25%
Vessel made of wood the final rate has to be loaded by 10%
Vessels which are non mechanized load the the H&M rate of the
relevant mechanised vessel by 50%
Vessels having low GRT but very costly non-navigational machinery

such as cranes, pile drivers, buckets, grabs, drills and power
generators for operation of such machinery mounted on them,
double the premium rate given under the table for barges.
The following loadings/discounts have to be given to arrive at a rate for

a different condition of insurance or/and a different trading warranty.
CHANGE OF CONDITIONS OF INSURANCE
Loading% to be Discount% to be
Conditions of Insurance applied on the applied on the
matrix rate matrix rate
Institute Time clauses Hulls dt

1.10.83 with clause 8 amended
3
to include 4/4ths Collision
Liability
Institute Time Clauses Hulls dt

1.10.83 extended to include
Protection and Indemnity risks as 3
per clause 9 of the Institute Hulls
Port Risks clause dt 20.07.87.
Institute Hulls Port Risks dt

5
20.7.87
Institute Hulls Total Loss only

(including salvage, salvage
20
charges and sue and labour) dt
1.10.83
Institute Hulls TL, GA, 3/4ths

Collision liability (including
10
Salvage, salvage charges and sue
an labour)
Institute Hulls TL, GA, 4/ths

5
an labour).
Loading % (to be applied

on the rate arrived at for
Trading Warranty
the relevant ‗conditions of
insurance‘.
Vessels plying on one coast e.g. East 35
or West Coast of India (Vessels plying
in more than one port on either coast
will be deemed to by plying on the
entire coast
Vessels plying on the East and West 70
Coasts of India
For Vessels plying on one port East of 15
Tuticorin and one port West of Tuticorin
N.B. Tuticorin will be deemed to be the demarcating point between the two
coasts i.e. if a Vessel plying on the East Coast goes West of Tuticorin, it
will be deemed to be plying on both the Coasts and vice-versa.
15. DEDUCTIBLES
0.50% of the H&M sum insured with a minimum of Rs. 5,000/-

The deductibles should be rounded off to the nearest Rs.1,000/-
NOTE: The deductible may be modified with the concurrence and


not change.

insurance have to issued.


the difference in premium has to be collected on a prorata basis.
19. RENEWAL
the claims experience loading/discount has to be given

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
21. RATING OF SUBSIDIARY INTERESTS
SUBSIDIARY INTEREST CONDITIONS OF COVER RATE
Increased Institute Time Clauses 85% of the

value/Disbursements Hulls Disbursements and chargeable H&M rate
(sum insured under this Increased Value Total Loss
cover shall not exceed only (including Excess
25% of the H&M sum Liabilities) dated 1-10-83.
insured)
22. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES OF TRADING LIMITS RELATING TO
SINGLE VOYAGE UNDER OWN POWER
Breach of voyage during the period from 15th September to 15th May (both days inclusive) on the West
Coast of India and from 15th February to 15th October (both days inclusive) on the East Coast of India
Additional Additional
Additional Premium Additional Additional
Premium for Premium for
Distance between for all inland vessels Premium for Premium for tugs
tugs while tugs while
Ports / Places excluding tugs while tugs while towing while towing (%
towing (% of the towing (% of
(nautical miles) towing. %of the (% of the annual of the annual rate)
annual rate) the annual rate)
annual rate rate) single tow double tow
triple tow quadruple tow
<50 5 5.5 6 6.5 7
50-150 10 11 12 13 14
150-300 15 16.5 18 19.5 21
300-500 20 22 24 26 28
500-750 25 27.5 30 32.5 35
750-1000 30 33 36 39 42
1000-1500 35 38.5 42 45.5 49
1500-2000 40 44 48 52 56
2000-2500 45 49.5 54 58.5 63
>2500 50 55 60 65 70
NOTE: For Voyages of Inland Vessels (under tow, whilst towing or whilst on own power) between the Indian Mainland
and Andaman and Nicobar Islands/Lakshadweep, and between Andaman and Nicobar Islands and Lakshadweep, a
loading of 50% over the final towing rate arrived at shall apply.
A. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES OF TRADING LIMITS (WITHIN

INSTITUTE WARRANTIES) RELATING TO SINGLE VOYAGE UNDER OWN POWER WITHOUT ANY TOW.
Breach of voyage outside the period from 15th September to 15th May (both days inclusive) on the West
Coast of India and from 15th February to 15th October (both days inclusive) on the East Coast of India
Additional Premium Additional Additional Additional Additional Premium
Distance
for all inland vessels Premium for Premium for tugs Premium for tugs for tugs while
between Ports /
excluding tugs while tugs while towing while towing (% while towing (% towing (% of the
Places (nautical
towing. %of the (% of the annual of the annual of the annual annual rate)
miles)
annual rate rate) single tow rate) double tow rate) triple tow quadruple tow
<50 6 7 8 8 9
50-150 13 14 15 16 18
150-300 19 21 23 24 26
300-500 25 28 30 33 35
500-750 31 34 38 41 44
750-1000 38 41 45 49 53
1000-1500 44 48 53 57 61
1500-2000 50 55 60 65 70
2000-2500 56 62 68 73 79
>2500 63 69 75 81 88
NOTE: For Voyages of Inland Vessels (under tow, whilst towing or whilst on own power) between the Indian Mainland
and Andaman and Nicobar Islands/Lakshadweep, and between Andaman and Nicobar Islands and Lakshadweep, a
loading of 50% over the final towing rate arrived at shall apply.
23. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES OF TRADING LIMITS RELATING TO
SINGLE VOYAGE UNDER UNDER TOW OF OTHER VESSELS
BREACH OF VOYAGE DURING THE PERIOD FROM 15TH SEPTEMBER TO 15TH MAY (BOTH DAYS
INCLUSIVE) ON THE WEST COAST OF INDIA AND FROM 15TH FEBRUARY TO 15TH OCTOBER (BOTH
DAYS INCLUSIVE ) ON THE EAST COAST OF INDIA.
Additional Premium Additional Premium
Additional Premium Additional Premium for
Distance between for vessel is under for vessel is under
for single vessel is vessel is under tow with
Ports / Places tow along with one tow along with two
under tow. %of the three more vessels.
(nautical miles) more vessel. %of the more vessels. %of the
annual rate %of the annual rate
annual rate annual rate
<50 7.5 8 8.75 10
50-150 15 16 17.5 20
150-300 22.5 24 26.25 30
300-500 30 32 35 40
500-750 37.5 40 43.75 50
750-1000 45 48 52.5 60
1000-1500 52.5 56 61.25 70
1500-2000 60 64 70 80
2000-2500 67.5 72 78.75 90
>2500 75 80 87.5 100
NOTE: For Voyages of Inland Vessels (under tow, whilst towing or whilst on own power) between the Indian
Mainland and Andaman and Nicobar Islands/Lakshadweep, and between Andaman and Nicobar Islands and
Lakshadweep, a loading of 50% over the final towing rate as applicable, shall apply.
BREACH OF VOYAGE OUTSIDE THE PERIOD FROM 15TH SEPTEMBER TO 15TH MAY (BOTH DAYS
INCLUSIVE) ON THE WEST COAST OF INDIA AND FROM 15TH FEBRUARY TO 15TH OCTOBER (BOTH
DAYS INCLUSIVE ) ON THE EAST COAST OF INDIA.
Additional Premium Additional Premium Additional Premium for
Additional Premium
Distance between for vessel is under for vessel is under vessel is under tow
for single vessel is
Ports / Places tow along with one tow along with two with three more
under tow. %of the
(nautical miles) more vessel. %of the more vessels. %of vessels. %of the
annual rate
annual rate the annual rate annual rate
<50 9 10 11 13
50-150 19 20 22 25
150-300 28 30 33 38
300-500 38 40 44 50
500-750 47 50 55 63
750-1000 56 60 66 75
1000-1500 66 70 77 88
1500-2000 75 80 88 100
2000-2500 84 90 98 113
>2500 94 100 109 125
NOTE: For Voyages of Inland Vessels (under tow, whilst towing or whilst on own power) between the Indian
Mainland and Andaman and Nicobar Islands/Lakshadweep, and between Andaman and Nicobar Islands and
Lakshadweep, a loading of 50% over the final towing rate as applicable, shall apply.
NOTE: The following loadings have to be applied wherever required:
For disabled/damaged vessels (dumb or otherwise) under tow the

above rates shall be further loaded by 10% of the rate.
If an inland vessel commits breach by going into the sea, the

additional premium rate shall be loaded by 10%.
If the inland vessel is employed for carrying out salvage operations

on a regular basis, the annual rate applicable to the vessel shall be
loaded by 10%
If the inland vessel is employed for carrying out salvage operations

for a specific operation, the additional premium would be 2% of the
annual premium rate per operation.
24. RATING FOR DRY-DOCKING RISKS
For Vessels covered subject to ITC-Hulls Port Risks dated 20-7-87,

Insurers may charge a rate of 0.15% for one month or part thereof with
0.025% for extension of one week or part thereof, with deductible
excess of 1% on all claims, other than TL/CTL, each accident or
occurrence.
For vessels which are not covered as above, separate rates must be
charged for the voyage to and from the port of repair, time period risks
(awaiting dry-docking) and the actual dry-docking as per above
provisions.
25. UNDERWRITING CONSIDERATIONS
The vessel has to be registered either under the Inland Vessel‘s

Act or the Coastal Vessel‘s Act.
The type of vessel viz tug/barge/passenger launch etc should be
as per the registration certificate.
To check whether the vessel is dumb (non mechanized) or
mechanized from the registration certificate.
The name given in the duly signed completed proposal form
should match the name given in the registration certificate.
The name of the vessel/GRT/year of built in the proposal form to
match with the registration certification.
The registration certification should be valid on the date of

underwriting and on the date of accident/claim.
The licence (wherever applicable) should be valid on the date of
The area of operation should be clearly mentioned in the proposal
form and accordingly suitable trading warranty should be
mentioned in the policy.
The type of clause to be attached to the policy should be based on
the type of cover chosen in the proposal form.
The vessel details to be obtained from the proposal.
26. PROPOSAL
MARINE HULL PROPOSAL FORM (FOR INLAND VESSEL/DREDGERS)

TEL.
STATE WHETHER THE PROPOSER
IS THE
CHARTERER
MANAGER/BAREBOAT
CHARTERER THEN OWNERS' ADDRESS OF THE OWNER
DETAILS
TEL.
VESSEL PARTICULARS
NAME OF VESSEL
FLAG OF VESSEL
TYPE OF VESSEL (AS
REGISTERED)/PURPOSE USED
FOR
GROSS REGD. TONNAGE
PLACE WHERE BUILT

WHETHER COPPER SHEATHED
OR NOT
IS THE VESSEL MECHANISED OR
NON MECHANISED
VESSEL BOTTOM SPECIFICATION □SINGLE □ DOUBLE
DOES THE VESSEL HAVE YES/NO
COLLISION BULKHEAD
NO OF ENGINES □SINGLE □DOUBLE
DOES THE VESSEL HAVE VERY YES/NO
COSTLY MACHINERY SUCH AS
CRANES ETC
YEAR OF BUILT
PORT OF REGISTRY
REGISTRATION NUMBER
SURVEYED
IS THE VESSEL BUILT AS PER IRS
CLASSIFICATION YES/NO
IS THE VESSEL MAINTAINED AS YES/NO
PER IRS CLASSIFICATION
IS THE VESSEL LICENSED OR YES/NO
APPROVED BY ANY LOCAL
AUTHORITY.
PROPOSED SUM FOR INSURANCE
CONDITIONS OF INSURANCE □ Institute Time Clauses Hulls dt
(TICK THE REQUIREMENT) 1.10.83
□Institute Time clauses Hulls dt 1.10.83
with clause 8 amended to include 4/4ths
Collision Liability
□Institute Time Clauses Hulls dt 1.10.83
extended to include Protection and
Indemnity risks as per clause 9 of the

Institute Hulls Port Risks clause dt
20.07.87.
□ Institute Time Clauses Hulls dt
1.10.83 with clause 8 amended to
include 4/4ths collision liability and to
include Protection and Indemnity risks
as per clause 9 of the Institute Hulls
Port Risks clause dt 20.07.87.
□Institute Hulls Port Risks dt 20.7.87
□Institute Hulls Total Loss only
(including salvage, salvage charges and
sue and labour) dt 1.10.83
□ Institute Hulls TL, GA, 3/4ths Collision
liability (including Salvage, salvage
charges and sue an labour) dt 1.10.83
□Vessel plying only within the port limits
of _______ (name of Port) with leave to
STATE THE GEOGRAPHICAL proceed not beyond 12 N.M. from the
LIMITS REQUIRED (TICK THE Prominent Point of the harbor/port as
REQUIREMENT)AND THE NAME designated by Port Authorities/Custom
OF THE PORT Authorities/Local Authorities.
□Vessels plying on one coast e.g. East
or West Coast of India (Vessels plying in
more than one port on either coast will
be deemed to by plying on the entire
coast
□Vessels plying on the East and West
Coasts of India
□For Vessels plying on one port East of
IS THE VESSEL USED FOR
PILOTING/TOWING INCOMING
OR OUTGOING VESSELS YES/NO
IS THE VESSEL USED FOR
SALVAGE OPERATIONS YES/NO
INCREASED VALUE/DISBURSEMENT INSURANCE COVER
(OPTIONAL)
SUM PROPOSED FOR INSURANCE

(NOT TO EXCEED 25%OF THE
H&M SUM INSURED)
SRRC COVER
DO YOU WANT SRCC COVER? YES/NO
FINANCIER
NO OF FINANCIERS
THE FOLLOWING DETAILS TO BE
GIVEN FOR EACH FINANCIER
SEPARATELY
NAME OF THE FINANCIER
ADDRESS OF THE FINANCIER
GENERAL
NO OF INLAND VESSELS OWNED
BY YOU
PREMIUM /CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
THE PAST 5 YEARS FOR THIS IN A SEPARATE SHEET
PARTICULAR VESSEL
PREMIUM/CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
THE PAST 5 YEARS FOR THE IN A SEPARATE SHEET
FLEET AS WHOLE
OTHER BUSINESS FROM
PROPOSER
Is the vessel at present insured with any other insurer? If so, please give
name of the insurer and brief details of the cover.
DECLARATION
I/we the undersigned, hereby declare that the above statements, and
particulars are true and complete and further declare that I/We have not
withheld any information which is calculated to influence the decision of the

Company in accepting the insurance and agree that this declaration shall be
the basis of the contract between me/us and UNITED INDIA INSURANCE
COMPANY LTD.
(SIGNATURE OF THE PROPOSER)
Date
Place
AGENT‟S REPORT I know the Proposer for years.
I recommend acceptance of the
proposal as the moral hazard is
satisfactory.
(SIGNATURE)
The liability of the Company does not commence until the

acceptance of the proposal has been formally intimated by the
Company and the premium is received by the Company.
Section 41 of the insurance Act.1938 which is in force from the 1st July 1939,
reads as follow :
No person shall allow, or offer to allow, either directly, or indirectly as an
inducement to any person to takeout or renew, or continue an insurance in
respect of risk relating to lives or property in India any rebate of whole or
part of the commission payable or any rebate of the premium shown on the
Policy, nor shall any person taking out or renewing or continuing a policy
accept any rebate, except such rebate as may be allowed in accordance
with published prospectus or tables of the insurer.
THE OFFER PAYMENT OR ACCEPTANCE OF A REBATE OF THE
PREMIUM HEREUNDER IS THEREFORE A BREACH OF THE LAW
SECTION 3
UNDERWRITING OF INLAND WATER DREDGERS
This Section is applicable to all types of Dredgers (mechanised or non-

mechanised plying in sheltered and protected waters of rivers/creeks/all other
inland waters/backwaters/ports in India but not to proceed beyond 12 N.M.
into the sea from the prominent point of a named port designated by Port
Authorities/Customs Authorities/Local Authorities.
STANDARD CLAUSES
Insurance on H&M Interests shall be granted subject to one of the following

sets of conditions:-
i. Institute Time Clauses – Hulls, Total Loss Only (including Salvage,

Salvage Charges and Sue and Labour) 1-10-1983.
ii. Institute Time Clauses – Hulls – 1-10-1983
iii. Institute Time Clauses – Hulls 1-10-1983 amended ti 4/4ths
Collision Liability.
iv. Institute Time Clauses – Hull, Port Risks 20-7-87
NOTES:
a. Protection and Indemnity Cover may be given in conjunction
with conditions (ii) & (iii) above subject to Clause 9 of the
Institute Time Clauses (Hulls) – Port Risks 20-7-87.
b. Protection and Indemnity Cover shall be granted only as an
extension of the H&M Policy.
STANDARD TRADING WARRANTIES
Dredgers shall be insured for carrying out dredging operation in India subject
to the following:
―Warranted to ply and carry out dredging operations in……inland waters:‖.
CLASSIFICATION AND MAINTENANCE OF CLASS
The following warranty shall be incorporated in all Policies where the insurance
is accepted and rated on the basis that the Ship is fully classed with the Indian
Register of Shipping (IRS):
―Warranted, vessel classed by the Indian Register of Shipping and class

maintained throughout the currency of this policy or held covered at
Additional Premium, if any, as may be decided by the insurer, provided
immediate notice as to change of Classification Society of the vessel or
change, suspension, discontinuance, withdrawal or expiry of class is
given to the Insurer.‖
Following reduction may be allowed on the rate.
Reduction In
Rate
a. If Vessels are built according to the classification 2.5%
requirements of IRS only
b. If Vessels are not built according to the 5.00%
requirements of the IRS but the class is maintained
singly with the IRS
c. If Vessels are built according to the classification 7.5%
requirements of IRS and the class is maintained
singly with the IRS
NOTE
The above reduction is applicable to Annual Marine Rates only and is not
applicable to SRCC Risks.
DEDUCTIBLE

amounts and this deductible should be fixed through out the currency of the
policy and does not change with the change in sum insured during the
currency of the policy. The deductibles are not applicable to Total

―The policy is subject to a deductible of Rs……(all claims other than TL/CTL
each and every accident/occurrence).
OTHER COMPULSORY WARRANTIES

Exclusions Clause.
PREMIUM INSTALMENT CLAUSE
Hull premium can also be collected in 4 equal instalments . The stamp duty has
to be collected in full along with the first instalment. Service tax has to be
collected with each instalment. When there is a total loss/constructive loss
claim the balance premium becomes immediately due and the same has to be
collected as soon as the insurer is aware of such a claim.
Wherever premium instalment facility is granted, the policy is subject to the

premium instalment clause as per the specimen format attached and the clause
has to be attached to the policy.
The insurer is allowed to collect the instalment premium beyond the due date
provided there are no claims during the period between the due date and the
date of payment. An undertaking to that effect may be collected from the
insured and a suitable endorsement issued.
ASSIGNMENT
Marine Hull policies are not freely assignable. Hence a dated notice of such
assignment is mandatory wherever the policy has to be assigned. The
assignment should be signed by the insured and by the assignor in case of a
subsequent assignment and the same is endorsed on the policy and the policy
with such endorsement should be produced before payment of any
claim/refund of premium.
Agreed Bank Clause shall not be used with any hull policy. Hull policies shall
not be issued in joint names of owners and financiers.
BREACH OF WARRANTY
Wherever there is intent of a breach of any warranty viz, trading warranty,

towage warranty, class warranty etc the insurer should be intimated in advance
and if the insurer agrees, additional premium if any has to be collected before
the commencement of the breach and suitable endorsement issued.
SHORT PERIOD COVER
Insurance for less than 12 months may be granted by charging 1/8th of the
annual rate per month or part thereof.
CANCELLATION RULES
The hull policy can be cancelled with the mutual agreement between the two
parties. In such case the insured is entitled to a refund of pro rata monthly
premium for each uncommenced month provided a total loss of the vessel has
not occurred during the period of the insurance.
In the following situations the insurance is automatically terminated and the

policy has to be cancelled and the insured is entitled to a pro-rata daily refund
of premium.
Sale of the vessel

Change of flag
Change of ownership
Requisition
Change of classification society, or change / suspension / discontinuance
/ withdrawal/or expiry of the class. However in this case, if the insured
informs the underwriter and the underwriters agree in writing (by
collection of additional premium of any), then there would be no
automatic termination of cover.
For further details refer to the relevant ‗Termination‘ clause and to RO/HO
CANCELLATION RETURNS ONLY (CRO) CONDITIONS
All the rates contained in this Section are subject to CRO conditions. Cover
subject to ‗Full Returns‘ conditions shall not be granted.
CRO conditions mean that an appropriate premium will be refunded only on

cancellation of policy and no refunds will be recoverable under the policy on
account of the insured vessel being laid-up.
STAMP DUTY
As per the Indian Stamp Act, the insured has to pay the stamp duty. Wherever
instalment facility has been given, the stamp duty has to be collected in full
along with the first instalment premium. There is no refund of stamp duty
when the sum insured is reduced during the currency of the policy. Whereas
further stamp duty has to be collected for the difference in the sum insured
whenever there is an increase in the sum insured during the currency of the
policy. There is also no refund of stamp duty when the policy is cancelled.
RATING GUIDELINES. (The rates indicated below are the base rates
and any discounts/loadings as per the circulars issued by the Head
Office from time to time, have to applied on these rates)
The rating structure is given in a matrix format for easy reference. Separate
matrices are available depending on the age of the vessel.
The rates given in the matrices are for the following conditions of insurance
and trading warranty
Standard warranty
H&M RATE FOR MECHANISED STEEL DREDGERS

AGE < 5 years
GRT (Tons) / <10 10 lakhs to 50 lakhs 1crore to >10
SUM INSURED (Rs) lakhs 50 lakhs to 1 crore 10 crore crore
<=100 0.78 0.70 0.69 0.68 0.68
100 to 250 0.79 0.63 0.61 0.59 0.59
250 to 500 1.04 0.64 0.59 0.55 0.54
500 to 1000 1.48 0.68 0.58 0.49 0.48
1000 to 1500 2.41 0.81 0.61 0.43 0.41
> 1500 3.34 0.94 0.64 0.37 0.34

AGE 5 to 10 years
GRT (Tons) / <10 10 lakhs to 50 lakhs 1 crore to >10
<=100 0.98 0.88 0.86 0.85 0.85
100 to 250 0.93 0.73 0.71 0.68 0.68
250 to 500 1.27 0.77 0.70 0.65 0.64
500 to 1000 1.86 0.86 0.74 0.62 0.61
1000 to 1500 3.00 1.00 0.75 0.53 0.50
> 1500 4.16 1.16 0.79 0.45 0.41

AGE 10 to 15 years
<=100 1.17 1.05 1.04 1.02 1.02
100 to 250 1.21 0.97 0.94 0.91 0.91
250 to 500 1.56 0.96 0.89 0.82 0.81
500 to 1000 2.25 1.05 0.90 0.77 0.75
1000 to 1500 3.61 1.21 0.91 0.64 0.61
> 1500 4.91 1.31 0.86 0.46 0.41

AGE 15 to 20 years
<=100 0.98 0.88 0.86 0.85 0.85
100 to 250 0.93 0.73 0.71 0.68 0.68
250 to 500 1.27 0.77 0.70 0.65 0.64
500 to 1000 1.86 0.86 0.74 0.62 0.61
1000 to 1500 3.00 1.00 0.75 0.53 0.50
> 1500 4.16 1.16 0.79 0.45 0.41

AGE> 20 years
GRT (Tons) / <10 10 lakhs to 50 lakhs 1 crore to >10
<=100 1.59 1.40 1.37 1.35 1.35
100 to 250 1.69 1.31 1.27 1.22 1.22
250 to 500 2.30 1.36 1.24 1.13 1.12
500 to 1000 3.37 1.49 1.26 1.04 1.02
1000 to 1500 5.58 1.82 1.35 0.93 0.88
> 1500 7.73 2.09 1.39 0.75 0.69
LOADINGS AND DISCOUNTS
LOADING FOR DIFFERENT TYPE OF VESSEL
For Dumb Steel Dredgers: The basic rate will be loaded by 20%.
For Wooden Dredgers: : The basic rate will be loaded by 50%
The following loadings/discounts have to be given to arrive at a rate for a

different condition of insurance or/and a different trading warranty.
CHANGE OF CONDITIONS OF INSURANCE

Loading% to be Discount% to be
Institute Time clauses Hulls
dt 1.10.83 with clause 8
3
amended to include 4/4ths
Collision Liability
Institute Hulls Port Risks dt
5
20.7.87
Institute Hulls Total Loss only
20
charges and sue and labour)
dt 1.10.83
Institute Hulls TL, GA, 3/4ths
10
Salvage, salvage charges and
sue an labour)
Institute Hulls TL, GA, 4/ths
5
sue an labour).
WIDER TRADING WARRANTY
Loading % (to be applied
on the rate arrived at for
Trading Warranty
the relevant „conditions of
insurance‟.
Vessels plying on one coast e.g. East or 35
West Coast of India (Vessels plying in
more than one port on either coast will be
deemed to by plying on the entire coast
Vessels plying on the East and West 70
Coasts of India
For Vessels plying on one port East of 15
N.B. Tuticorin will be deemed to be the demarcating point between the two
coasts i.e. if a Vessel plying on the East Coast goes West of Tuticorin, it
will be deemed to be plying on both the Coasts and vice-versa.
DEDUCTIBLES
0.50% of the H&M sum insured with a minimum of Rs. 5,000/-
The deductibles should be rounded off to the nearest Rs.1,000/-
CHANGE IN SUM INSURED
Whenever there is a change in sum insured during the currency of the policy,
the same H&M rate has to be applied. The deductible would also not change.
Change in the conditions of insurance will not be permitted during the currency
of the policy. In such case the policy has to be cancelled by mutual agreement
and a fresh policy with the revised condition of insurance have to issued.
Change in trading warranty is permitted during the currency of the policy. The
rate remains the same if the existing trading warranty is further restricted. But
where the insured opts for wider trading warranty, the rates have to be revised
as per the rating guidelines and the difference in premium has to be collected
on a prorata basis.
RENEWAL
The vessel has to be rated afresh as per the rating guidelines and then the
claims experience loading/discount has to be given
CLAIMS EXPERIENCE

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
RATING OF SUBSIDIARY INTERESTS
SUBSIDIARY INTEREST CONDITIONS OF COVER RATE

Increased Institute Time Clauses Hulls 85% of the
value/Disbursements (sum Disbursements and chargeable H&M
insured under this cover Increased Value Total Loss rate
shall not exceed 25% of only (including Excess
the H&M sum insured) Liabilities) dated 1-10-83.
SUB-SECTION 5
Scale of Additional Premium Rates to cover Breaches of Trading
Warranties relating to Single Voyage under Own Power.
1. (a) H&M Interest: All Dredgers

Distance between Ports/Places Additional Premium
Not over 50 nautical miles 5% of the Annual Rate
Over 50 nautical miles but not over 150 nautical 10% of the Annual Rate
miles
miles
miles
miles
miles
Over 1000 nautical miles but not over 1500 35% of the Annual Rate
nautical miles
nautical miles
nautical miles
Over 2500 nautical miles 50% of the Annual Rate
(b) If Vessels are towed by approved Tugs, the above A.Ps are to be
increased as under.:
Single Tow 100%

Double Tow 200%
Triple Tow 300%
Multiple Tow To be referred to Committee.
The Policy should contain following additional Warranty:
―Warranted towage arrangements supervised and found satisfactory

by a Surveyor approved by the Insurer and his recommendations
complied with.‖
SECTION DEALING WITH RATING OF DREDGERS ENGAGED IN
i) Assisting Vessels in distress

ii) Assisting Vessels in loading/unloading operations
iii) Towing Vessels in distress
iv) Rendering Salvage assistance
Annual Basis
If an Insured elects not to insure all his Vessels, but instead chooses to insure
Vessels on a selective basis, i.e. one or more out of several Vessel(s), then the
annual rate)s) applicable to such Vessel(s) being placed for insurance as per
this Tariff, shall be doubled.
Voyage Basis
1. Open Cover may be granted for Vessels subject to Insured‘s submitting
declarations to the Insurers promptly within 7 days from the date of
attachment, provided that the Insured has kept adequate cash deposit or
Bank Guarantee with the Insurers.
2. Insured should submit in writing in advance, the names of Vessels which
are likely to be employed during the Policy Year. Any fresh Vessels to be
employed during the year, i.e. other than those already intimated have to
be notified in writing to the Insurers in advance.
3. Counting of hours for charging Premium on Voyages basis will be from MOB
to MOB (i.e., Master-on-Board to Master-off-Board).
4. Conditions of Insurance shall be IVC Hulls dt.1-8-89 amended to 4/4ths
5. Rate
Wooden
Voyage duration Steel Dredgers
Dredgers
a. For first 6 hours or part thereof 0.02% 0.04%
b. Over 6 hours but not over 12 hours 0.04% 0.06%
c. Over 12 hours but not over 18 hours 0.06% 0.09%
d. Over 18 hours but not over 24 hours 0.8% 0.12%
e. Over 24 hours but not over 36 hours 0.12% 0.18%
f. Over 36 hours but not over 48 hours 0.16% 0.24%
g. Over 48 hours but not over 72 hours 0.20% 0.30%
h. Over 72 hours but not over 240 hours 0.30% 0.45%
i. Over 240 hours To be referred to the Committee
with full details for fixing rates.
N.B. The above rates will apply only to such Vessels which are not insured on
annual basis/short period basis, but are insured under Open Cover on
Declaration Basis for each Voyage.
NOTE:
Under Open Cover, if no declaration of Voyages is made for two

consecutive Policy periods, for any reason whatsoever, the facility of
declaring Voyages shall be withdrawn.
DEDUCTIBLES
a. For Vessels to be insured on ½% of Sum Insured or 33-1/3%

Annual basis of assesses loss, whichever is
higher
b. For Vessels to be insured on ½% of H&M Sum Insured on all
Voyage basis claims other than TL/CTL, each
accident or occurrence.
Deductible amount shall be expressed in Rupees in the Policy.
The deductible amount shall be rounded off to the nearest Rs.100/- and
Rs.50/- to the next Rs.100/-
PROPOSAL FORM
The same proposal form used for inland vessels may be used for dredgers also.
SECTION 4
UNDERWRITING OF FISHING VESSELS
The following are the salient features that categorize a vessel as a Fishing
Vessel:
"fishing vessel" means a ship which is exclusively engaged in fishing

operations.
The vessel should be registered under the Fishing Vessels Act/Local
Authorities.
Part XV and XVA of the Merchant Shipping Act deals with sailing
vessels and fishing vessels.
TYPES OF FISHING VESSELS.
Trawlers : These are of strong construction with Large Bunker space to enable
them to remain at sea for longer period. The hold of the ship may be insulated
or would have the facility to store the fish in ice after sorting. The trawler is
conically shaped to lay the net on the sea-bed.
Major risk is entangling of net with the propellers and thus damaging both the
net and the vessel.
Drifters: They are smaller than the trawlers and do not stay at sea longer. The
nets are suspended vertically from buoys and the vessel drifts head on to it.
Whalers: These are of large size called as floating factories. The captured
whales are hauled into the factory ship up a slipway through the stern and cut
and processed to obtain oil.
Fishing Boats : Small in size mostly built of wood, limited engine power,
operates in Indian Coastal Water upto 50 NM from the shore. Also, they are
steel, fiberglass and plastic body built
There may be non-mechanised crafts used for fishing, such as vallams and
catamarans.
1. STANDARD CLAUSES
All marine hull policies covering Fishing vessels should be subject to any
of the following clauses. Any other clause can be incorporated only with
the specific approval of the Head Office.
1. I.F.V.C. dated 20-7-87 BUT LIMITED TO PAY ONLY TL/CTL (including

Salvage, Salvage Charges and Sue & Labour), C.R.O.
2. I.F.V.C., DATED 20-7-87 WITH Clause 20 (P & I risks) deleted,

C.R.O.
3. I.F.V.C. dated 20-7-87, C.R.O.
ALL TRADING WARRANTIES ARE SUBJECT TO THE PROVISO:
―NO BREACH OF LOCAL PORT REGULATIONS REGARDING SAILING”
Zone 1. Warranted Vessel engaged in fishing and operations

connected therewith on the Coasts of Gujarat, Maharashtra
and Goa with leave to proceed upto Karwar and not
beyond 50 nautical miles into the sea from shore.
Warranted Vessel laid-up from 15th June to 15th August
(b.d.i.) with leave to operate on the coasts of
Saurashtra and Kutch during this period.
Zone 2 Warranted Vessel engaged in fishing and operations

connected therewith on the Coasts of Karnataka, Kerala
and West & South Coasts of Tamil Nadu upto and
including Gulf of Mannar and not beyond 50 nautical miles
into the sea from shore. Warranted vessel laid up from 1st
June to 15th August (b.d.i.)
Zone 3 Warranted Vessels engaged in fishing and operations

connected therewith on the Coasts of Andhra Pradesh and
Tamil Nadu (including Pondicherry) upto and including
Palk Strait and Palk Bay and not beyond 50 nautical miles
into the sea from shore. Warranted Vessel laid-up from
1st November to 31st January (b.d.i.) with leave to
operate on the coasts of Andhra Pradesh during the period.

connected therewith on the Coasts of Orissa & West
Bengal and not beyond 50 nautical miles into the sea from
shore. Warranted Vessel laid-up from 1st May to 30th
September (b.d.i.)
Zone 5 Warranted Vessel engaged in fishing and operations connected

therewith on the Coasts of Andaman and Nicobar Islands
and not to proceed beyond 50 nautical miles into the sea.

From shore, with leave to proceed from Andaman Islands
to Nicobar Islands and vice-versa. Warranted Vessel
laid-up from 15th May to 15th November (b.d.i.)

connected therewith on the Coasts of the Islands
constituting Lakshadweep and not to proceed beyond 20
nautical miles into the sea from shore, with leave to proceed
from one Island to another Island forming part of
Lakshadweep. Warranted Vessel laid-up from 15th May
to 15th November (b.d.i.)
NOTES:
1. EMPLOYMENT BEYOND 50 NM
Where the Fishing Vessels/Trawlers are designed to go beyond 50

nautical miles into the sea from the shore, they may be covered
without Additional Premium for plying upto an appropriate distance,
as may be certified by the competent authority, but not exceeding
100 nautical miles.
2. TRADING WARRANTY FOR FISHING VESSELS/TRAWLERS TRADING

IN DEEP SEA
Where Vessel/Trawler is insured to trade beyond 100 nautical miles,

the Trading Warranty shall be the standard Trading Warranty for
Fishing Vessels/Trawlers trading in deep-sea, as under::
―Warranted Vessel employed for Fishing”
a. On the East and West Coasts of India but not to proceed

beyond 300 nautical miles into the sea from the shore.
b. On the Coasts of Lakshadweep Islands but not to proceed

beyond 300 nautical miles into the sea from the shore.
c. On the Coasts of Andaman & Nicobar Islands but not to

proceed beyond 300 nautical miles into the sea from the
shore.
All voyages between ports/places named in (a), (b) and (c) above
are covered without any A.P. subject to warranty that no fishing
is done during the course of such Voyages.
The wordings of any trading warranty can be altered to suit the

requirements of a particular vessel/owner only with the specific approval
of the Head Office.
Following discounts may be allowed on the rate. This discount

will part of the Good features discount applicable.
Reduction In Rate
If Vessels are built according to the classification 2.5%
If Vessels are not built according to the 5.00%
requirements of the IRS but the class is maintained
singly with the IRS
singly with the IRS
The following warranty shall be incorporated in all Policies where the

insurance is accepted and rates on the basis that the Ship is fully classed
with the Indian Register of Shipping (IRS):
―Warranted, vessel classed by the Indian Register of Shipping

and class maintained throughout the currency of this policy or
held covered at Additional Premium, if any, as may be decided by
the insurer, provided immediate notice as to change of
Classification Society of the vessel or change, suspension,
discontinuance, withdrawal or expiry of class is given to the
Insurer.‖
4. DEDUCTIBLE
All policies covering fishing vessels are subject to ―Machinery Damage

Additional Deductible‘ as per clause 13 of the IFVC clauses apart from
the normal deductible as per clause 12 of the IFVC clauses. The
deductibles should be fixed throughout the currency of the policy and
does not change with the change in sum insured during the currency of
the policy. The deductibles are not applicable to Total Loss/Constructive
Total Loss claims.

―The policy is subject to a Machinery Deductible of 10% of the assessed

loss as per clause 13 of IFVC clause dt 20.07.87 and a compulsory
deductible of Rs……(all claims other than TL/CTL each and every
accident/occurrence) as per clause 12 of the IFVC clause dt 20.07.87.‖
NOTE: The machinery deductible as per clause 13 is to be applied first

and the balance amount should be added to the claim amount not
relating to machineries and then the total should be subject to the
deductible as per clause 12.
EXAMPLE:
Repair cost of machinery : 5000.00

Repair cost of Hull : 10000.00
Machinery deductible : 500.00
Normal deductible : 1000.00
Claim for machinery : 5000-500= 4500.00
Total Claim for Hull and
Machinery : 10000+4500=14500.00
Net Claim payable : 14500-1000=13500/-
All the Fishing vessel policies should contain the following wording
Subject to the Radio active contamination Exclusion clause dt ..
Subject to the Chemical, Biological, Biochemical and Electromagnetic

Weapons Exclusion Clause.
ADVERSE WEATHER WARRANTY
1) Warranted Vessel when not employed, shall be safely

anchored or moored or secured.
2) Warranted Vessel shall not be employed during adverse
weather conditions notified by the concerned Port Authorities
and/or Directorate of Fisheries.
3) (a) Warranted during adverse weather, Vessel shall remain
in safe waters properly moored, and
(b) If already at sea, shall return forthwith as soon as they
become aware of the adverse weather warning, and
(c) Vessel shall be manned adequately at all times except
when in harbor, sheltered/safe waters when it should
be secured properly and adequate watch and ward

maintained throughout the period it remains therein.
WARRANTY REGARDING REGISTRATION AND LICENSING OF

FISHING VESSELS/TRAWLERS.
‗Warranted vessel to comply with local laws and regulations with
regard to registration and licensing‘
1. H&M Sum Insured upto Rs.20 lakhs
To collect premium on 40:30:30 basis as explained below.
i) (a) The Policy document will be for a period of three

months only and the Premium shall be collected @ 40% of
the Annual Premium.
(b) The Policy will be subject to automatic renewal, first for a

period of three months and thereafter for a further period
of six months, by way of Extension endorsement on
payment of second and third installments each @ 30% of
the Annual Premium. Each of these two installments will
be payable before the expiry of the policy/extension
period.
Policy issued originally for three months will be subject to the

following Automatic Renewal Clause:
“The Policy will be subject to Automatic Renewal, first for

a period of three months and thereafter for a further
period of six months, by way of Extension Endorsement
on payment of second and third installments each @ 30%
of the Annual Premium. Each of these two installments
will be playable before the expiry of the policy/extension
period.”
ii) On expiry of the twelve month period, a new policy will be issued
charging once again 40% of the Annual Premium for the first
three months and the process will be conti8nued as in (i) and (b)
above.
iii) If Premium for the following quarter(s) is not received before

expiry of the Policy/extension endorsement period, risk under
policy would lapse and new policy will be issued for three months
charging 40% of the Annual Premium once again.
(2) H&M Sum Insured over Rs.20 lakhs
For fishing vessels with H&M Sum Insured exceeding Rs.20 lakhs, the
premium can be collected in 4 installments. The stamp duty has to be
collected in full along with the first instalment. Service tax has to be
collected with each instalment. When there is a total loss/constructive
loss claim the balance premium becomes immediately due and the same
has to be collected as soon as the insurer is aware of such a claim.

the clause has to be attached to the original of the policy.
18. ASSIGNMENT
case of a subsequent assignment, and the same is endorsed on the
shall not be issued in joint names of the owners and financiers.

warranty, towage warranty, class warranty, monsoon warranty etc the
insurer should be intimated in advance and if the insurer agrees,
additional premium if any has to be collected before the commencement
of the breach and suitable endorsement issued.
The hull policy can be cancelled with the mutual agreement between the
two parties. In such case the insured is entitled to a refund of pro rata
monthly premium for each uncommenced month provided a loss of the
vessel has not occurred during the period of the insurance.
If a Fishing Vessel is sold during the currency of the policy, the number
of days for which pro-rata refund is to be given, shall be calculated
according to the specific policy period for which the vessel was insured,
i.e., 3 months or 6 months, as the case may be.
In the following situations the insurance is automatically terminated and

the policy has to be cancelled and the insured is entitled to a pro-rata
daily refund of premium.
Sale of the vessel

Change of flag
Change of ownership
Requisition
agree in writing (by collection of additional premium of any) , then
For further details refer to the relevant ‗Termination‘ clause and to

RO/HO
21. ADDITIONAL PERILS CLAUSE
No cover shall be granted against IFVC (Additional Perils) Clause 347

dated 20-7-87.
22. DISBURSEMENT INSURANCE FOR BUNKERS & SPARES
No separate Insurance cover shall be granted for Bunkers and Spares.

However, the Insured may be allowed to include the cost of Bunkers
and Spares in the H&M Sum Insured.
23. COVER ON FISH CATCH
No cover shall be granted on Fish Catch on board Fishing

Vessels/Trawlers.
24. FISHING VESSELS/TRAWLERSON HARD
Insurance of Fishing Vessels/Trawlers laid-up on hard should be granted

only in Marine Hull Dept.
25. COVER FOR NETS
No Insurer in India is permitted to grant wider cover than that available

under I.F.V.C. dated 20-7-87.
Fishing Nets whilst on shore under repair or otherwise or whilst stored in

Godowns can be covered against perils like fire, theft and burglary in
other Departments concerned and no such cover shall be granted under
Marine Hull Department.
In other words, no separate cover for Fishing Nets alone is to be

granted in the Marine Hull Dept.
Whilst Vessels are laid up for repair of painting, cover for fishing nets on
board the Vessels shall continue as per the perils under relevant
Institute Clause subject to which the Vessels are insured.
However, when the Net is not on the Vessel, the Sum Insured of the
Vessel shall not be reduced. During such times, if the Vessel becomes a
Total Loss, claims will be paid subject to deduction for the Net. For this
purpose, the value of Fishing Net needs to be ascertained at inception.
26. MINIMUM PREMIUM
Minimum Premium of Rs.1000/- per Vessel may be charged.
Short period cover for a period more than 3months but less than 12
months may be granted by charging 1/8th of the Annual Rate per month
or part thereof. No instalment facility shall be granted for short period
covers.
The rates given in the rating table in this section are subject to CRO
conditions, which means that the insured is eligible for a refund of
premium only when the policy is cancelled and not when the vessel is
laid up.
NOTE: Cover subject to Full Returns shall not be granted.
29. STAMP DUTY
the sum insured during of the policy. There is also no refund of stamp
duty when the policy is cancelled.
30. PERSONAL ACCIDENT COVER
Policies on Fishing Vessels/Trawlers with H&M Sum Insured not

exceeding Rs.20 lakhs may be extended by an endorsement to include
P.A. cover for unnamed persons, including visitors to the Vessel and for
crew, limited to the certified capacity, for different Sums Insured (to be
opted by the Insured) as premia as provided below:
Sum Insured (per head) (Rs,) Premium (per head) (Rs.)

25,000 15
50,000 30
75,000 45
1,00,000 60
If the Insured wants the P.A. cover, he will be required to take cover for
at least the certified number of crew members required to be on board
at any point of time. Beyond this, he will be free to decide the number
of visitors for whom he would like to take the P.A. cover. Thus, the
premium payable will be for the total number of crew members and
visitors, at rates given above for the different sums insured. The
Insured will be required to opt for the Sum Insured at the time of
inception of the Marine Hull Policy.
The conditions and benefits per person are reproduced below:
If a person in the Vessel shall sustain any bodily injury resulting solely
and directly from accident caused by outward, violent and visible means,
then the Insurers shall be liable as under:
i. If such injury shall within six calendar months of its occurrence

be the sole and direct cause of the death of the person –
Rs.25,000/- or Rs.50,000/- or Rs.75,000/- or Rs.1,00,000/- as the
case may be. The amount payable under the Clause shall be
plaid to the legal heir of the deceased.
ii. If such injury shall within six calendar months of its occurrence
be the sole and direct cause of the total and irrecoverable loss of
sight of both eyes or of the actual loss by physical separation of
two entire hands or two entire feet or of one entire hand and one
entire foot or of such loss of sight of one eye and such loss of
one entire foot, or of such loss of sight of one eye and such loss
of one entire hand – Rs.25,000/- or Rs.50,000/-- or Rs.75,000/-
or Rs.1,00,000/- as the case may be.
iii. If such injury shall within six calendar months of its occurrence
sight of one eye or of the actual loss by physical separation of
one entire hand or one entire foot – fifty per cent (50%) of
case may be.
iv. If such injury shall as a direct consequence thereof immediately,

totally and absolutely disable the person from engaging in, being
occupied with or giving attention to any employment or
occupation of any description whatsoever, a sum equal to fifty
per cent (50%) of Rs.25,000/- or Rs.50,000/- or Rs.75,000/- or
Rs.1,00,000/- as the case may be.
NOTE:
P.A. Cover can only be granted at the time of inception of the

Marine Hull Policy against payment of full P.A. Premium amount.
The extension of P.A. Cover shall not be granted at any other
stages of the Policy. No discount is applicable for the P.A.
premium under the Policy.
rates)
The H&M rates given in the matrices are for the following conditions of
Institute Fishing Vessels Clauses dated 20.07.87 subject to CRO

conditions
Trading warranty for a single zone.
SUM INSURED (RS) H&M RATE (%)

Upto 5 lakhs 5.00
Over 5 lakhs but not exceeding 10 lakhs 4.95
Over 90 lakhs but not exceeding 1crore 2.25
Over 1 crore but not exceeding 2 crore 2.00
Over 2 crore but not exceeding 5 crores 1.50
Over 5 crores 1.00
LOADING FOR TYPE OF VESSEL
1) For Non-Mechanised Fishing Vessels/Trawlers, the above rates shall

be loaded by 20%.
2) For wooden/plastic Fishing Vessels/Trawlers, a further loading of

10% shall be applicable.
Loading % to be Discount% to be
Conditions of Insurance applied on the matrix applied on the
rate matrix rate
I.F.V.C. dated 20-7-87 BUT 30

LIMITED TO PAY ONLY TL/CTL
(including Salvage, Salvage
Charges and Sue & Labour),
C.R.O.
I.F.V.C., DATED20-7-87 WITH

Clause 20 (P & I risks), deleted, 10
C.R.O.
Trading Warranty Loading/Discount (to be applied on

the rate arrived at for the relevant
‗conditions of insurance‘.
If plying is restricted between Discount of 33-1/3% to be applied on
Karwar and Cannanore with the the rate
vessel not plying beyond 50 nautical
miles into the sea from shore, a
reduction of 33-1/3% from the rate
arrived at above shall be granted.
Trading in every additional zone Additional Premium of Rs.2000/- per
Zone shall be chargeable to cover
Fishing Vessels/Trawlers engaged in
fishing operations beyond one Zone.
Where the Fishing Vessels/Trawlers NIL loading/discount
are designed to go beyond 50

nautical miles into the sea from the
shore, they may be covered without
Additional Premium for plying upto
an appropriate distance, as may be
certified by the competent
authority, but not exceeding 100
nautical miles.
For plying beyond 100 nautical 0.10% loading
miles and upto 300 nautical miles,
and the applicable Trading
Warranty shall be amended
accordingly.
Where Vessel/Trawler is insured to Additional premium of Rs 10,000/-
trade beyond 100 nautical miles,
the Trading Warranty shall be the
standard Trading Warranty for
Fishing Vessels/Trawlers trading in
deep-sea, as under:
―Warranted Vessel employed

for Fishing”
a. On the East and West Coasts of

India but not to proceed beyond
300 nautical miles into the sea
from the shore.
b. On the Coasts of Lakshadweep

Islands but not to proceed
beyond 300 nautical miles into
the sea from the shore.
c. On the Coasts of Andaman &

Nicobar Islands but not to
proceed beyond 300 nautical
miles into the sea from the
shore.
All voyages between ports/places

named in (a), (b) and (c) above are
covered without any A.P. subject to
warranty that no fishing is done
during the course of such Voyages.
a. For waiver of monsoon lay-up For Fishing Vessels with Sum

warranty, which is to be Insured upto Rs.10 lakhs
opted by Insured at the
inception of cover, for the full
period of Lay-up. For one zone
1.5% of H&M Sum Insured
For more than one zone on the
same coast
2.5% of H&M Sum Insured
For more than one coast including
Andaman & Nicobar and
Lakshadweep islands
3% of H&M Sum Insured
b. For waiver of monsoon lay-up For Fishing Vessels/Trawlers with

warranty, which is to be Sum Insured over Rs.10 lakhs but
opted by Insured at the not over Rs.100 lakhs.
inception of cover, for the full
period of Lay-up
For one zone
Rs.15,000/-
For more than one zone on the same
coast
Rs.25,000/-
For more than one coast including
Andaman & Nicobar and
Lakshadweep islands
Rs.30,000/-
33. DEDUCTIBLES
a. For the purpose of Clause12 0.50% of H&M Sum Insured

b. For the purpose of Clause 13 10% of the assessed loss/
N.B.: 1. For the purposes of Clause No.12 of IFVC dated 20-7-87,

Deductible amounts in Rupees should be rounded off to the
nearest Thousand.
2. Salvage Charges and Sue & Labour expenses shall be subject to

the Deductible Excess stipulated above. However, if Sue &
Labour expenses are associated with TL/CTL claim, no
deductible shall be applicable therefor.

not change.

insurance have to issued.

the difference in premium has to be collected on a prorata basis.
37. RENEWAL
the claims experience loading/discount has to be given.

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
39. INSURANCE OF VALLAMS AND CATAMARANS
Vallams and Catamarans shall be insured subject to the

following:
i) Rate: 2.00% p.a. subject to IFVC dt.20-7-57 but limited to pay

only TL/CTL, (including Salvage, Salvage Charges and Sue and
Labour), C.R.O. conditions.
ii) Minimum Premium : Rs.1000/-
iii) Trading zone: Plying limited to any one Trading Zone, subject
to:
a. Monsoon lay-up warranty for the respective zones; and

b. Vessel plying not beyond 10 n.m. into the sea from shore.
Vessels are not to be allowed to ply during Monsoon. Monsoon

lay-up warranties cannot be waived even against payment of A.P.
iv) Machinery Warranty: The Insurance shall be subject to the

following Machinery Warranty:
―Warranted total loss of machinery to be paid only in case of

total loss of Vessel being paid‖
iv) Splitting of Sum Insured: The H&M Sum Insured will not be
shown separately for Hull and Machinery but the same will be a
composite amount.

The vessel has to be registered under the Fishing Vessel‘s Act

The type of vessel viz trawler/catamaram/fishing boat etc should be
as per the registration certificate.
The name given in the duly signed completed proposal form should
match the name given in the registration certificate.
The name of the vessel/year of built in the proposal form to match
with the registration certification.
form and accordingly suitable trading warranty should be mentioned
in the policy.
the type of cover chosen in the proposal form .
All the compulsory warranties should be mentioned in the policy.
If the monsoon warranty is deleted by collection of additional
premium, then the trading warranty should be modified with periods
of lay up deleted.
41. PROPOSAL
Proposal in the following format may be obtained from the Insured.

MARINE HULL PROPOSAL FORM (FOR FISHING VESSEL

1.NAME OF THE PROPOSER
2.ADDRESS OF THE PROPOSER
TEL.
3.STATE WHETHER THE PROPOSER IS THE
OWNER/MANAGER/BAREBOAT CHARTERER
4.IF THE PROPOSER IS A NAME OF THE OWNER
MANAGER/BAREBOAT CHARTERER THEN
OWNERS' DETAILS
TEL.
VESSEL PARTICULARS
5.NAME OF VESSEL
6.TYPE OF VESSEL (AS REGISTERED)
7.GROSS REGD. TONNAGE
8.PLACE WHERE BUILT
9.MATERIAL OF WHICH BUILT
10.IF BUILT OF WOOD STATE WHETHER
COPPER SHEATHED OR NOT
11.IS THE VESSEL MECHANISED OR NON
MECHANISED
12. YEAR OF BUILT
13.PORT OF REGISTRY
14.REGISTRATION NUMBER
15.BY WHOM, WHERE AND WHEN WAS THE
VESSEL LAST SURVEYED
16.IS THE VESSEL BUILT AS PER IRS
CLASSIFICATION YES/NO
17.IS THE VESSEL MAINTAINED AS PER IRS YES/NO
CLASSIFICATION
18.IS THE VESSEL LICENSED OR APPROVED YES/NO
BY ANY LOCAL AUTHORITY.
19. IF NO, STATE THE REASONS
20.PROPOSED SUM FOR

INSURANCE
21.VALUE OF FISHING NET
22.CONDITIONS OF INSURANCE □I.F.V.C. dated 20-7-87 BUT LIMITED TO
(TICK THE REQUIREMENT PAY ONLY TL/CTL (including Salvage,
Salvage Charges and Sue & Labour),
C.R.O.
□I.F.V.C., DATED20-7-87 WITH Clause
20 (P & I risks), deleted, C.R.O.
□I.F.V.C. dated 20-7-87, C.R.O.
23.STATE THE GEOGRAPHICAL □Zone 1. The Coasts of Gujarat,
LIMITS REQUIRED (TICK THE Maharashtra and Goa with leave to
REQUIREMENT) proceed upto Karwar
□ plying restricted between Karwar and
Kannur
□Zone2 Coasts of Karnataka, Kerala
and West & South Coasts of Tamil
Nadu upto and including Gulf of
Mannar and not beyond 50 nautical
miles into the sea from shore.
□Zone 3 Coasts of Andhra Pradesh
and Tamil Nadu (incuding
Pondicherry) upto and including
Palk Strait and Palk Bay and not
beyond 50 nautical miles into the sea
from shore.
□Zone 4 Coasts of Orissa & West
Bengal and not beyond 50 nautical miles
into the sea from shore.
□Zone 5 Coasts of Andaman and
Nicobar Islands and not to proceed
beyond 50 nautical miles into the sea.
□Zone 6 Coasts of the Islands
constituting Lakshadweep and not to
proceed beyond 20 nautical miles into
the sea from shore,
□West Coast of India
□East Cost of India
□East and West coast of India including
Andaman Nicobar and lakshadweep

islands
24.Will the vessel be laid up □15th June to 15th August in Zone 1
during the monsoon. If so tick
the relevant period
□1st June to 15th August in Zone 2
□1st November to 31st January in Zone 3
□1st may to 30th september in zone 4
□15th May to 15th November in Zone
5/Zone6
25.IF NO, do you want deletion YES/NO
of monsoon lay up warranty
26.would the vessel be employed
beyond 50 nm but not exceeding
100nm YES/NO
27.would the vessel be employed
beyond 100 nm YES/NO
28.DO YOU WANT INSTALMENT
FACILITY YES/NO
SRRC COVER
29.DO YOU WANT SRCC COVER? YES/NO
FINANCIER
30.NO OF FINANCIERS
31.THE FOLLOWING DETAILS TO
BE GIVEN FOR EACH FINANCIER
SEPARATELY
32NAME OF THE FINANCIER
33.ADDRESS OF THE FINANCIER
GENERAL
34.NO OF FISHING VESSELS
OWNED BY YOU
35.PREMIUM /CLAIMS IF ANY IF YES PLEASE GIVE US THE DETAILS IN
FOR THE PAST 5 YEARS FOR A SEPARATE SHEET
THIS PARTICULAR VESSEL
36.PREMIUM/CLAIMS IF ANY IF YES PLEASE GIVE US THE DETAILS IN
FOR THE PAST 5 YEARS FOR A SEPARATE SHEET
THE FLEET AS WHOLE
37. OTHER BUSINESS FROM
PROPOSER
38.Has any Company or insurer
in respect of any the risk to
which this proposal applies-
DECLARATION
COMPANY LTD.
Date
Place
I recommend acceptance of the proposal
as the moral hazard is satisfactory.
(SIGNATURE)
reads as follow :
SECTION 5
UNDERWRITING OF SAILING VESSELS

The following are the salient features that categorize a vessel as a Sailing
Vessel:
Any description of vessel provided with sufficient sail area for

navigation under sails alone, whether or not fitted with mechanical
means of propulsion and includes a rowing boat or canoe but does
not include a pleasure craft.
All sea going sailing vessels owned by a citizen of India or a company
or a co-operative society as indicated in section 21 of the part v of
MS Act 1958 shall be registered in accordance with the provisions of
the Merchant Shipping (Registration of Sailing vessels) Act.
Part XV and XVA of the Merchant Shipping Act deals with sailing
vessels and fishing vessels.
1. STANDARD CLAUSES
All marine hull policies covering sailing vessels should be subject to any of the
following clauses. Any other clause can be incorporated only with the specific
ITC-Hulls Total Loss Only (including Salvage, Salvage Charges and

Sue and Labour) dated 1-10-83 with CRO conditions.
Institute Time Clauses – Hulls dated 1-10-83 with CRO conditions
Institute Time Clauses – Hulls dated 1-10-83 with P&I extension as

per clause 9 of ITC Port Risk dt 20.7.87 with CRO conditions
The insurance of all sailing vessels should be subject to any one of the trading
Warranties:
1. (A) Warranted Vessel employed for carriage of cargo and operations

connected therewith between Suez, Persian Gulf, Pakistan,
Maldives, Lakshadweep, East and West Coasts of India and Sri
Lanka but not to proceed North of Visakhapatnam and South of
15 * South Latitude on the East African Coast.
(B) Warranted Vessel not to be employed
a. On the West Coast of India, on the South Coast of Tamil

Nadu from Kanyakumari upto and including Gulf of
Mannar, Pakistan, Maldives, Lakshadweep and West Coast
of Sri Lanka from 1st June to 15th August(b.d.i.) with leave
to employ the vessel from 1st June to 7th June (b.d.i)
i. between ports in Saurashtra/ Kutch and Bombay

Port.
ii. Between ports in Saurashtra/Kutch and ports in
Suez, Persian Gulf and Pakistan.
iii. Between Bombay port and ports in Suez, Persian
Gulf and Pakistan.
b. On the East Coast of India, North of Gulf of Mannar and

East Coast of Sri Lanka from 1st November to 31st January
(b.d.i.)
(C) Employment during the prohibited period is permitted as under :
a. On the coasts of Saurashtra/ Kutch

b. Between Tuticorin and Sri Lanka
c. On the Coast of Andhra Pradesh not North of
Visakhapatnam
(D) Vessel may be permitted to ply in Persian Gulf area from 1st June
to 15th August by charging Additional Premium
2. (A) Warranted vessel employed for carriage of cargo and operations

connected therewith between Suez, Persian Gulf, Pakistan, West
Coast of India, Maldives, Lakshadweep and West Coast of Sri
Lanka, but not to proceed south of 15* South latitude on the east
African coast, with liberty to proceed to south coast of Tamil
Nadu upto and including Gulf of Mannar.
(B) Warranted vessel laid up from 1st June to 15th August (b.d.i.) with
leave to employ the vessel from 1st June to 7th June (b.d.i.)
a. between ports in Saurashtra/Kutch and Bombay Port

b. between ports in Saurashtra/Kutch and ports in Suez, Persian
Gulf & Pakistan.

a. on the coasts of Saurashtra/ Kutch

b. between Tuticorin and Sri Lanka
c. vessels may be permitted to ply in Persian Gulf area from 1st
June to 15th August by charging additional premium.

connected therewith on the East and West Coasts of India,
Pakistan, Maldives, Lakshdweep and Sri Lanka but not to proceed
North of Visakhapatnam.
(B) Warranted vessel not to be employed
a. on the West Coast of India, on the South Coast of Tamil

Nadu from Kanyakumari upto and including Gulf of
Mannar, Pakistan, Maldives, Lakshadweep and West Coast
of ShriLanka from 1st June to 15th August (b.d.i.) with
i. Between ports in Saurashtra/Kutch and Bombay ports.

ii. Between ports in Saurashtra/Kutch and ports in
Pakistan.
iii. Between Bombay Port and Ports in Pakistan.
b. on the East Coast of India, North of Gulf of Mannar and

East Coast of Sri Lanka from 1st November to 31st January
(b.d.i.)
a. on the coasts of Saurashtra/Kutch

c. on the coast of Andhra Pradesh but not north of
Visakhapatnam

connected therewith between Pakistan, West Coast of India,
Maldives, Lakshdweep and West Coast of Sri Lanka with leave to
proceed to South Coast of Tamil Nadu upto and including Gulf of
Mannar.
(B) Warranted vessel laid up from 1st June to 15th August (b.d.i.) with
a. Between ports in Saurashtra/Kutch and Bombay port.

b. Between ports in Saurashtra/Kutch and ports in Pakistan
c. Between Bombay port and ports in Pakistan.
a. on the coasts of Saurashtra/Kutch


connected therewith on the East Coast of Sri Lanka and East
Coast of India not North of Visakhapatnam and not South of Palk
Strait.
(B) Warranted vessel laid up from 1st Nov. to 31st January (b.d.i)
(C) Employment during the prohibited period is permitted on the

coast of Andhra Pradesh not North of Visakhapatnam.
6. Warranted vessel employed for carriage of cargo and operations

connected therewith between Ship and shore at any port in India
7. Warranted vessel employed for carriage or cargo and operations

connected therewith on the coasts of Andaman & Nicobar Islands and
not to proceed beyond 50 n.m. into the sea from shore with leave to
proceed from Andaman islands to Nicobar islands and vice-versa.
Warranted Vessels laid up from 15th May to 15th August and from 1st
November to 31st January (b.d.i.).
Vessels may be allowed to ply during lay-up period subject to the

following :
a. Warranted vessel shall not be employed during adverse weather

conditions as may be notified by appropriate authorities.
b. Warranted no voyage during the lay-up period shall exceed 175
n.m. in distance or 24 hours in time, whichever is less.
NOTE: The wordings of any trading warranty can be altered to suit the
requirements of a particular vessel/owner only with the specific approval of the
Head Office.
Following discounts may be allowed on the rate. This discount will

part of the Good features discount applicable.
Reduction In Rate
If Vessels are not built according to the requirements 5.00%
of the IRS but the class is maintained singly with the
IRS
singly with the IRS
is accepted and rates on the basis that the Ship is fully classed with the Indian
Register of Shipping (IRS):
―Warranted, vessel classed by the Indian Register of Shipping and class

maintained throughout the currency of this policy or held covered at
Additional Premium, if any, as may be decided by the insurer, provided
immediate notice as to change of Classification Society of the vessel or
change, suspension, discontinuance, withdrawal or expiry of class is
given to the Insurer.‖
4. DEDUCTIBLE


each and every accident/occurrence)
All the hull policies should contain the following wording

COLLECTION OF PREMIUM
The Premium shall be collected as under:
1) H&M Sum Insured upto Rs.20 lakhs
To collect premium on 40:30:30 basis as explained below.
i) (a) The Policy document will be for a period of three

months only and the Premium shall be collected @
40% of the Annual Premium.
(b) The Policy will be subject to automatic renewal,

first for a period of three months and thereafter for
a further period of six months, by way of Extension
endorsement on payment of second and third
installments each @ 30% of the Annual Premium.
Each of these two installments will be payable
before the expiry of the policy/extension period.
Policy issued originally for three months will be subject to

the following Automatic Renewal Clause:
“The Policy will be subject to Automatic Renewal,

first for a period
of three months and thereafter for a further period
of six months, by way of Extension Endorsement on
payment of second and third installments each @
30% of the Annual Premium. Each of these two
installments will be playable before the expiry of
the policy/extension period.”
ii) On expiry of the twelve month period, a new policy will be

issued charging once again 40% of the Annual Premium
for the first three months and the process will be

conti8nued as in (i) and (b) above.
iii) If Premium for the following quarter(s) is not received

before expiry of the Policy/extension endorsement period,
risk under policy would lapse and new policy will be issued
for three months charging 40% of the Annual Premium
once again.
(2) H&M Sum Insured over Rs.20 lakhs
For sailing vessels with H&M Sum Insured exceeding Rs.20 lakhs,
the premium can be collected in 4 equal installments. The stamp
duty has to be collected in full along with the first instalment.
Service tax has to be collected with each instalment. When there
is a total loss/constructive loss claim the balance premium
becomes immediately due and the same has to be collected as
soon as the insurer is aware of such a claim.
Wherever premium instalment facility is granted, the policy is

subject to the premium instalment clause as per the specimen
format attached and the clause has to be attached to the original
of the policy.
The insurer is allowed to collect the instalment premium beyond

the due date provided there are no claims during the period
between the due date and the date of payment. An undertaking
to that effect may be collected from the insured and a suitable
endorsement issued.
7. ASSIGNMENT
not be issued in joint names.

towage warranty, class warranty, cargo warranty etc the insurer should be
intimated in advance and if the insurer agrees, additional premium if any has to
be collected before the commencement of the breach and suitable
endorsement issued.
The hull policy can be cancelled with the mutual agreement between the two
parties. In such case the insured is entitled to a refund of pro rata monthly
premium for each uncommenced month provided a loss of the vessel has not
occurred during the period of the insurance.
If a sailing Vessel is sold during the currency of the policy, the number of days
for which pro-rata refund is to be given, shall be calculated according to the
specific policy period for which the vessel was insured, i.e., 3 months or 6
months, as the case may be.
In the following situations the insurance is automatically terminated and the

policy has to be cancelled and the insured is entitled to a pro-rata daily refund
of premium.
Sale of the vessel

Change of flag
Change of ownership
Requisition
Change of classification society, or change / suspension / discontinuance
/ withdrawal / or expiry of the class. However in this case, if the insured
informs the underwriter and the underwriters agree in writing (by
collection of additional premium of any) then there would be no
automatic termination of cover.
For further details refer to the relevant ‗Termination‘ clause and to RO/HO
10. MINIMUM PREMIUM
Minimum Premium of Rs.1000/- per Vessel may be charged.

Short period cover for a period more than 3months but less than 12 months
may be granted by charging 1/8th of the Annual Rate per month or part
thereof. No instalment facility shall be granted for short period covers.
CRO is a phrase used in hull policies to indicate that the rate does not allow
lay-up returns.
The rates given in the rating table in this section are subject to CRO conditions,
which means that the insured is eligible for a refund of premium only when the
policy is cancelled and not when the vessel is laid up.
NOTE: 1. Cover subject to Full Returns shall not be granted.
13. STAMP DUTY
whenever there is an increase in the sum insured during of the policy. There is
also no refund of stamp duty when the policy is cancelled.
14. PERSONAL ACCIDENT COVER
Policies on Sailing Vessels with H&M Sum Insured not exceeding Rs.20 lakhs
may be extended by an endorsement to include P.A. cover for unnamed
persons, including visitors to the Vessel and for crew, limited to the certified
capacity, for different Sums Insured (to be opted by the Insured) as premia as
provided below:
Sum Insured (per head) (Rs,) Premium (per head) (Rs.)

25,000 15
50,000 30
75,000 45
1,00,000 60
If the Insured wants the P.A. cover, he will be required to take cover for at
least the certified number of crew members required to be on board at any
point of time. Beyond this, he will be free to decide the number of visitors for
whom he would like to take the P.A. cover. Thus, the premium payable will be
for the total number of crew members and visitors, at rates given above for the
different sums insured. The Insured will be required to opt for the Sum
Insured at the time of inception of the Marine Hull Policy.
The conditions and benefits per person are reproduced below:
If a person in the Vessel shall sustain any bodily injury resulting solely and
directly from accident caused by outward, violent and visible means, then the
Insurers shall be liable as under:
i. If such injury shall within six calendar months of its occurrence

be the sole and direct cause of the death of the person –
case may be. The amount payable under the Clause shall be
plaid to the legal heir of the deceased.
ii. If such injury shall within six calendar months of its occurrence
sight of both eyes or of the actual loss by physical separation of
two entire hands or two entire feet or of one entire hand and one
entire foot or of such loss of sight of one eye and such loss of
one entire foot, or of such loss of sight of one eye and such loss
of one entire hand – Rs.25,000/- or Rs.50,000/-- or Rs.75,000/-
or Rs.1,00,000/- as the case may be.
iii. If such injury shall within six calendar months of its occurrence
sight of one eye or of the actual loss by physical separation of
one entire hand or one entire foot – fifty per cent (50%) of
case may be.
iv. If such injury shall as a direct consequence thereof immediately,

totally and absolutely disable the person from engaging in, being
occupied with or giving attention to any employment or
occupation of any description whatsoever, a sum equal to fifty
per cent (50%) of Rs.25,000/- or Rs.50,000/- or Rs.75,000/- or
Rs.1,00,000/- as the case may be.
NOTE:
P.A. Cover can only be granted at the time of inception of the

Marine Hull Policy against payment of full P.A. Premium amount.
The extension of P.A. Cover shall not be granted at any other
stages of the Policy. No discount is applicable for the P.A.
premium under the Policy.
rates)
The rates given in the matrices are for the following conditions of insurance
and trading warranty
Institute Time Clauses Hulls dated 1.10.83 subject to CRO conditions

MATRIX FOR SAILING VESSEL (MECHANISED)

SUM INSURED/TRADING 1 2 2 3 4 5
WARRANTY 1 A/B/C A/B/C/D A/B/C A/B/C/D A/B/C A/B/C A/B/C 6 7
Upto 20 lakhs 5.50 6.88 5.00 6.25 4.75 4.50 4.50 3.50 4.50
20 to 25 lakhs 5.29 6.52 4.85 5.96 4.62 4.40 4.40 3.51 4.40
25 to 30 lakhs 4.73 5.75 4.35 5.28 4.17 3.98 3.98 3.24 3.98
30 to 35 lakhs 4.23 5.11 3.91 4.71 3.75 3.59 3.59 2.95 3.59
35 to 40 lakhs 3.86 4.63 3.58 4.28 3.44 3.30 3.30 2.74 3.30
40 to 45 lakhs 3.57 4.25 3.32 3.94 3.20 3.07 3.07 2.58 3.07
45 to 50 lakhs 3.34 3.95 3.11 3.67 3.00 2.89 2.89 2.44 2.89
50 to 55 lakhs 3.22 3.77 3.01 3.52 2.91 2.81 2.81 2.40 2.81
55 to 60 lakhs 2.98 3.49 2.80 3.26 2.70 2.61 2.61 2.24 2.61
60 to 65 lakhs 2.78 3.26 2.61 3.04 2.52 2.44 2.44 2.10 2.44
65 to 70 lakhs 2.61 3.05 2.45 2.85 2.37 2.29 2.29 1.97 2.29
70 to 75 lakhs 2.47 2.87 2.32 2.69 2.24 2.17 2.17 1.87 2.17
75 to 80 lakhs 2.34 2.72 2.20 2.55 2.13 2.06 2.06 1.78 2.06
80 to 85 lakhs 2.22 2.58 2.09 2.42 2.02 1.96 1.96 1.70 1.96
85 to 90 lakhs 2.12 2.46 2.00 2.31 1.93 1.87 1.87 1.62 1.87
90 to 95 lakhs 2.03 2.35 1.91 2.21 1.85 1.80 1.80 1.56 1.80
95 to 1 crore 1.95 2.26 1.84 2.12 1.78 1.73 1.73 1.50 1.73
1 crore to 1.2 crore 1.69 1.95 1.60 1.83 1.55 1.50 1.50 1.32 1.50
1.2 to 1.6 crore 1.37 1.56 1.30 1.47 1.26 1.23 1.23 1.09 1.23
1.6 to 2 crore 1.17 1.33 1.12 1.26 1.09 1.06 1.06 0.95 1.06
2 to 3.5 crore 0.84 0.93 0.81 0.89 0.79 0.78 0.78 0.71 0.78
3.5 to 5 crores 0.71 0.77 0.69 0.74 0.68 0.67 0.67 0.62 0.67
above 5 crores 0.7 0.75 0.65 0.7 0.65 0.65 0.65 0.6 0.65

different condition of insurance.
ITC-Hulls Total Loss Only (including 30
Salvage, Salvage Charges and Sue
and Labour) dated 1-10-83 with CRO
conditions.
Institute Time Clauses – Hulls dated
1-10-83 with P&I extension as per
10
clause 9 of ITC Port Risk dt 20.7.87
with CRO conditions
For Non mechanized vessels 30
17. DEDUCTIBLES
Deductible for Clause No.12 – 33-1/3% of the assessed loss or Rs.1000/-

whichever is higher, each claim.
18. ADDITIONAL PREMIUM FOR BREACH/EXTENDED TRADING

WARRANTY
Extended Trading Warranty

Loading
A Sailings during the applicable prohibited
period may be permitted by charging
additional premium as under :-
i) From 1st June to 7th June (b.d.i.)
or part thereof 0.25%
ii) From 9th August to 15th August
(b.d.i.) or part thereof --- 0.25%
229
B Additional Premium as under shall be

charged for Vessels employed between
Suez, Persian Gulf, Pakistan and
Saurashtra/ Kutch ports to cover breach
of South-West Monsoon lay-up warranty :
i) From 8th June to 15th June (b.d.i.)
or part thereof 0.25%
ii) From 1st August to 15th August 0.25% per week or
(b.d.i.) part thereof subject
to a maximum of
0.50% for the period
C Additional Premium as under shall be
charged to cover breach of North-East
Monsoon lay-up Warranty :
i) From 1st Nov. to 15th Nov. (b.d.i.) 0.25% per week or
part thereof subject
to a maximum of
0.50% for the period.
ii) From 16th January to 31st January 0.25% per week or
(b.d.i.) part thereof subject
to a maximum of
0.50% for the period.
D Vessel may be permitted to ply in Persian
Gulf area from 1st June to 15th August 25%
the same H&M rate has to be applied. There would be no change in the
deductible.
Change in trading warranty is permitted during the currency of the policy. The
rate remains the same if the existing trading warranty is further restricted. But
230
where the insured opts for wider trading warranty, the rates have to be revised
as per the rating guidelines and the difference in premium has to be collected
on a prorata basis.
22. RENEWAL

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
The vessel has to be registered under the Sailing Vessel‘s Act

The type of vessel should be as per the registration certificate.
The name given in the duly signed completed proposal form should
match with the name given in the registration certificate.
The name of the vessel/year of built in the proposal form to match
with the registration certificate.
231

form and accordingly suitable trading warranty should be mentioned
in the policy.
the type of cover chosen in the proposal form .
All the compulsory warranties should be mentioned in the policy.
If the monsoon warranty is deleted by collection of additional
premium, then the trading warranty should be modified with periods
of lay up deleted.
25. PROPOSAL
MARINE HULL PROPOSAL FORM (FOR SAILING VESSEL)

1. NAME OF THE PROPOSER
2. ADDRESS OF THE PROPOSER
TEL.
3. STATE WHETHER THE
PROPOSER IS THE
CHARTERER
4. IF THE PROPOSER IS A NAME OF THE OWNER
MANAGER/BAREBOAT CHARTERER
THEN OWNERS' DETAILS
TEL.
VESSEL PARTICULARS
5. NAME OF VESSEL
6.TYPE OF VESSEL (AS
REGISTERED)
7. GROSS REGD. TONNAGE
8. PLACE WHERE BUILT
9. MATERIAL OF WHICH BUILT
232
10.IF BUILT OF WOOD STATE

WHETHER COPPER SHEATHED OR
NOT
11. IS THE VESSEL MECHANISED
OR NON MECHANISED
12. YEAR OF BUILT
13. PORT OF REGISTRY
14. REGISTRATION NUMBER
15. BY WHOM, WHERE AND WHEN
SURVEYED
16. IS THE VESSEL BUILT AS PER
IRS CLASSIFICATION YES/NO
17. IS THE VESSEL MAINTAINED YES/NO
AS PER IRS CLASSIFICATION
18. IS THE VESSEL LICENSED OR YES/NO
APPROVED BY ANY LOCAL
AUTHORITY.
19. IF NO, STATE THE REASONS
20. PROPOSED SUM FOR
INSURANCE
□ITC-Hulls Total Loss Only (including
Salvage, Salvage Charges and Sue and
Labour) dated 1-10-83 with CRO
conditions.
□ Institute Time Clauses – Hulls dated
1-10-83 with CRO conditions
□Institute Time Clauses – Hulls dated
1-10-83 with P&I extension as per
clause 9 of ITC Port Risk dt 20.7.87
with CRO conditions
22. STATE THE GEOGRAPHICAL □Maldives□Pakistan□Persian Gulf□Suez
LIMITS REQUIRED (TICK THE Canal□West Coast Of India□East Coast
REQUIREMENT) of India□East Srilanka□West Sri
Lanka□Africa□Lakhadweep□Andaman
and Nicobar
233
23. Will the vessel be laid up □1st June to 15th August

during the monsoon. If so tick the
relevant period
□1st November to 31st January
□1st may to 30th september
□15th May to 15th November
24. IF NO, do you want deletion of Yes/NO
monsoon lay up warranty
SRCC COVER
25. DO YOU WANT SRCC COVER? YES/NO
FINANCIER
26. NO OF FINANCIERS
27. THE FOLLOWING DETAILS TO
BE GIVEN FOR EACH FINANCIER
SEPARATELY
28. NAME OF THE FINANCIER
29. ADDRESS OF THE FINANCIER
GENERAL
30. NO OF SAILING VESSELS
OWNED BY YOU
31. PREMIUM /CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
PARTICULAR VESSEL
32. PREMIUM/CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
FLEET AS WHOLE
PROPOSER
34. Has any Company or insurer in
234
DECLARATION
COMPANY LTD.
Date
Place
satisfactory.
SIGNATURE)

reads as follow :
accept any rebate, except such rebate as may be allowed in accordance with
published prospectus or tables of the insurer.
235
SECTION 6
BUILDERS RISK INSURANCE
This section is applicable to all vessels (mechanized or non-mechanized)

irrespective of the value whilst under construction in any shipyard or boat
building workshop in India.
Insurance of Ships under renovation, jumboisation, conversion and/or

repairs also come under the purview of this Section.
No Risk for Hull or Machinery - to be accepted without a time limit
When Conversion/Jumboisation process starts, the existing conditions of

cover, including Port Risks cover, shall be discontinued and cover as per
this section shall be given.
After Conversion/Jumboisation, the vessel should be rated as per the

type of vessel mentioned in the registration certificate.
The basis of rating shall be on Full Contract Value or Full Completed

Value, whichever is greater and Contract period or the period from
inception of any work in the Yards or Shops until final delivery,
whichever shall be the longer, subject always to the limitation of the
Duration of Risk Clause.
Rating on the basis of gradually progressing value shall not be

permitted.
lf such information is not available when the insurance is provisionally

placed, rates are to be adjusted from inception when final details about
full contract value/full completed value and full contract period are
known, However, rating shall be done on the basis of full estimated
value and/or full estimated period of construction.
lf the completed contract period is shorter or longer than the period of

the Policy, the period rate is to be adjusted accordingly.
Policies can be issued either in the name of the Owner/Builder or the

joint names of the Owner and Builder.
Propelling Machinery and Auxiliary Machinery built by Sub-contractors on

which there is no risk prior to arrival at Yard, to be rated at appropriate
Scale rate plus the monthly rate for the period commencing from the
time the first such item is delivered at the Yard.
236
Items of weapon equipment (including associated electronic equipment)

on which there is no risk prior to arrival at a Yard, to be rated at the
Scale Rate plus the monthly rate for the period commencing from the
time first such item is delivered to the Yard.
Guarantee Risks must not be covered under Construction Risk Policy but
where this form of protection is required the risk must be placed
separately in the Miscellaneous department.
All Building Risks must be subject to War Exclusion Clause.
Strikes risks subject to Institute Strikes Clauses, Builders' Risks in force

and the rates mentioned in this section are inclusive of Strikes Risks.
1. STANDARD CLAUSES
Institute Clauses for Builders‗ Risks and Institute Strikes Clauses,

Builders' Risks. All builders‘ risk policies are subject to both these
clauses.
2. DEDUCTIBLE


The deductible would be 0.05% of the provisional contract value subject

to a minimum of Rs.l,500/- and a maximum of Rs.6,00,000/- all claims,
including collision liability, S&L, P&I and Removal of Wreck, other than
TL or CTL. All Deductibles may be rounded off to the nearest Rs.100/-.

237
4. DURATION OF RISK:
The following clause must be incorporated in all Policies:
From 00.00 Hours on ..... Date ...... month…year to 24.00 Hours on

..... Date ...,..month…year or until delivery, if delivered on an earlier
date.
Extension of cover beyond the period mentioned in the Policy may be
allowed by charging Additional Premium as per Scale of monthly
rate/rates for each of the Category.
Continuation for short periods may be held covered as under:
Upto 5 days .......... No Additional Premium.

Over 5 days but not above 15 days ........ One half of monthly rate.
Over I5 days ......... Full monthly rate.
5. COLLECTION OF PREMIUM
1. lnstalment payment facility on quarterly basis will be granted only

when the period of construction is I2 months or over.
2. The first instalment will be 5% more than the rest.

the clause has to be attached to the original of the policy.
6. ASSIGNMENT
case of a subsequent assignment and the same is endorsed on the
238
7. STAMP DUTY
the sum insured during of the policy. There is also no refund of stamp
duty when the policy is cancelled.
8. RATING GUIDELINES
Vessels of 1,00,000 DWT or over, launched down a slipway are

subject to an Additional Premium of 0.20%.
A. Barges and other Vessels without 0.20% + 0.020% per month or part
main propelling machinery thereof of the contract period
B. Conventional Vessels not designated 0.30% + 0.030% per month or part

elsewhere, Drilling Rigs, Dredgers, thereof of the contract period
Pipe-laying Barges, Newsprint Carriers
and similar Vessels.
C. Vessels including Container Ships, 0.35% + 0.035% per month or part

having refrigerated capacity of over thereof for the first 12
30%,Passenger Vessels, Vehicle months+.040% per month or part
carrying Vessels and Ferries of all kinds thereof for the next 12 months
and Barge carriers, Hover-crafts, +.050% per month or part thereof
Yachts, Vessels constructed of wood, thereafter
fibreglass or aluminium.
0.40% + 0.045% per month or part

D. Warships, Liquid Gas Carriers, Liquid thereof for the first 12
Sulphur Carriers and Vessels with months+.05% per month or part
insulation, or with refrigerating or thereof for the next 12 months
similar machinery, specially designed +.06% per month or part thereof
for carriage of a specific cargo thereafter
239
9. MOVEMENTS FOR DOCKING, TRIALS AND DELIVERY:
Movements for docking, trials and delivery under own power to be

limited to 250 nautical miles at no extra premium.
DELIVERY VOYAGE BEYOND 250 N.M. ON OWN POWER/UNDER

TOW for inland vessels/sailing vessels/fishing vessels/inland
dredgers
The Builders' Risks Policy may be extended to include cover for delivery
voyage under own power (after completion of the construction and
trials) beyond 250 n.m., by charging the appropriate Additional Premium
as per the Schedule of Additional Premium, provided under Rule 22
under the Section 2 (Inland Vessels). For delivery voyage of any type
of Vessel under tow, the relevant rule 23 under Section 2 (inland
vessels), dealing with breach of voyage to referred to.
For the purpose of determining the nautical miles involved in the

voyage, for applying the Additional Premium as per the said Schedule of
the Section for Inland Vessels, 250 n.m. will be deducted from the total
distance of the voyage and the residual distance in nautical miles will be
taken into account for applying this Schedule.
The annual rate referred to in the said Schedule will be determined by

applying the respective Sections. i.e inland vessel/dredger/sailing
vessel/fishing vessel.
DELIVERY VOYAGE BEYOND 250 N.M. ON OWN POWER/TOW for

Ocean Going Vessels
The Builders' Risks Policy may be extended to include cover for delivery
voyage under own power (after completion of the construction and
trials) beyond 250 n.m., by charging the appropriate Additional Premium
as per the Schedule of Additional Premium, provided under Rule 25/27
under the Section 2 (Inland Vessels).
If the delivery voyage cover is required by parties other than the

Builders, the same can be granted under separate Voyage Policy by
charging twice the appropriate additional Schedule Rate as applicable
under Section 12, but deductible in such cases will be 1% of the
H&M Sum insured as it applied under a normal Voyage Policy, if
cover is required as per IVC Hulls - 4/4ths Collision Liability. For
voyage cover subject to restricted conditions, the annual H&M Rate
is to be worked out accordingly and double the Schedule Rates
applied thereafter.
240
10. CLAIMS EXPERIENCE OF THE YARD
The following loading/discounts rates to be applied based on the figures

relating to vessels delivered over the preceding period of 5 years.

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
The above loadings/discounts to be applied only if the Policy is issued in the

name of the Builder or in the joint names of the Builder and the Owner and is
not applicable on policies issued in the name of the Owner.
11. PROPOSAL
MARINE HULL PROPOSAL FORM

(FOR BUILDER'S RISK INSURANCE)
TEL.
STATE WHETHER THE PROPOSER IS
THE OWNER/BUILDER
IF THE PROPOSER IS A OWNER, NAME OF THE Builder
THEN BUILDER'S DETAILS
ADDRESS OF THE Builder
TEL.
241
IF THE PROPOSER IS A BUILDER NAME OF THE Owner

ADDRESS OF THE Owner
TEL.
VESSEL PARTICULARS
NAME OF VESSEL
TYPE OF VESSEL /DESCRIPTION OF
THE HULL AND MACHINERY
YARD NO
NAME OF THE CLASSIFICATION
SOCIETY (IF ANY) UNDER WHOSE
SUPERVISION THE VESSEL IS BEING
BUILT.
FULL CONTRACT VALUE OR FULL
COMPLETED VALUE (ACTUAL OR
ESTIMATED)
CONTRACT PERIOD
ARE THE PROPELLING MACHINERY YES/NO
AND AUXILLARY MACHINERY BUILT
BY SUB CONTRACTORS.
IF SO, PLEASE GIVE DETAILS OF THE
MACHINERY/PROVISIONAL VALUE
EXPECTED DATE OF ARRIVAL OF
SUCH MACHINERY TO THE YARD
FINANCIER
NO OF FINANCIERS
THE FOLLOWING DETAILS TO BE
GIVEN FOR EACH FINANCIER
SEPARATELY
NAME OF THE FINANCIER
ADDRESS OF THE FINANCIER
242
GENERAL
NO OF VESSELS BUILT BY THE
BUILDER
PREMIUM /CLAIMS IF ANY FOR THE IF YES PLEASE GIVE US THE
PAST 5 YEARS FOR THE VESSELS DETAILS IN A SEPARATE SHEET
BUILT IN THE PROPOSED YARD
OTHER BUSINESS FROM PROPOSER
respect of any the risk to which this
proposal applies-
C Increased your premium on
renewal?
DECLARATION
COMPANY LTD.
(SIGNATURE OF THE
PROPOSER)
Date
Place
AGENT‟S REPORT I know the Proposer for _________
years. I recommend acceptance of
the proposal as the moral hazard is
satisfactory.
(SIGNATURE)
243

reads as follow :


244
SECTION 7
SHIP REPAIRER‟S LIABILITY INSURANCE
This section is applicable to all vessels (mechanized or non mechanized)

irrespective of the value whilst under construction/reconstruction/conversion in
any shipyard or boat building workshop in India.
In no case cover under "Detention Endorsement" should be granted.
STANDARD CLAUSES
The Ship Repairers‘ Liability Clause given hereinafter.

Personal Injury Endorsement given hereinafter.
Other Work Endorsement given hereinafter
Premium Endorsement given hereinafter.
DEDUCTIBLE
The Policy will be subject to a deductible of 1% of the Limit of Indemnity

subject to a minimum of Rs.l,00,000/- to be expressed in Rupees.

COLLECTION OF PREMIUM
Premium Endorsement Wording as given hereinafter should be attached. No

installment facility is available under this policy.
STAMP DUTY
As per the Indian Stamp Act, the insured has to pay the stamp duty. There is
no refund of stamp duty when the policy is cancelled.
RATING GUIDELINES:
a) 0.10% on the Limit of Liability indicated in the Policy.

Plus
b) 0.40% on gross actual/audited charges of the Assured.
245
NOTE: Gross Charges shall be defined as total charges (collected or

uncollected) made by the Assured as ship repairers during the period of
this insurance. No deduction shall be made from the Gross Charges in
respect of any sub contracted work.
OTHER EXTENSIONS
PERSONAL INJURY ENDORSEMENT subject to an additional premium of

10% of the total premium
OTHER WORK ENDORSEMENT subject to an additional premium of

o10% of the total premium.
MINIMUM PREMIUM
The minimum premium is Rs.10,000/- and if on adjustment of premium on

expiry of policy, it is found that the final premium is less than Rs, 10,000/-, a
minimum of Rs 10,000/- shall be retained by the insurer and balance if any
would be refunded to the assured. The minimum amount to be retained by the
insurer will be in addition to the Stamp duty payable under the policy.
PREMIUM ADJUSTMENT
In the absence of audited gross charges at the commencement of the

cover, for the immediately preceding l2 months of operation of the Assured, or
any part thereof (in case the assured has been in operation for less than 12
months prior to the commencement of this Cover), the computation of
Premium in (2) above can be based on a fair and reasonable estimate of` the
gross charges of the Assured either for the preceding period or period covered,
whichever is higher and such provisional Premium in respect of (2) above, will
be subject to adjustment on the expiry of this Policy, the assured being
required under this Policy, to submit to the Insurers, the audited gross charges,
for the period covered under the Policy, as soon as his accounts are audited
and such audited accounts are passed, but not later than 12 months from the
date of expiry of this Policy.
SHIP REPAIRER‟S LIABILITY CLAUSES
1. Name of the Assured………………….
2. Location of the Premises and/or Yard …………………
3. Period · 12 Months From ………........ To…………………..
246
4. Premium:
The minimum and deposit Premium shall be .......,......, subject to

adjustment at expiry of the period of this insurance at ...,% on gross
charges of the Assured, such adjustment to be paid within 90 days.
5. Gross Charges:
Gross Charges shall be defined as total charges (collected or

uncollected) made by the Assured as ship repairers during the period of
this insurance. No deduction shall be made from the Gross Charges in
respect of any sub contracted work.
6. Coverage:
Underwriters hereby agree, subject to the limitations, terms and

conditions hereinafter mentioned, to indemnify the Assured for all sums
which the Assured shall become liable to pay by reason of the legal
liability of the Assured as ship repairers for :
a. Loss of or damage to any vessel or craft which is in the care,

custody or control of the Assured for the purpose of being
worked upon, including shifting and moving within the limits of
the port, at which the work is being carried out and including trial
trips but not exceeding 100 miles from such port. -
b Loss of or damage to any other vessel or crah upon which the
Assured. is working, except Vessels or Craft at sea other than
whilst on trial trips.
c. Loss of or damage to cargo or other things on or discharged from
any of the Vessels or Craft referred to in (a) or (b) above.
d. Loss of or damage to machinery or equipment of any Vessel or
Craft, whilst such machinery or equipment is removed from such
Vessel or Craft and is in the care, custody or control of the
Assured for the purpose of` being worked upon, including whilst
in transit between such Vessel and the specialist repairers' or
manufacturers' premises.
e. Removal of Wreck:
Where such liability results from negligence of the Assured, his
servants, agents or sub- contractors occurring during the period
of this insurance.
247
7. Limit of Liability:
The limit of liability under this insurance, in respect of any one accident
or series of accidents arising out of one occurrence, shall be ……..,
including liability for costs and expenses which are either:
(a) incurred with the written consent of the Underwriters hereon, or

(b) awarded against the Assured.
8. Deductible.
This insurance shall only pay the excess of Rupees ………in respect of
the Assured's ultimate net loss resulting from any one accident or series
of accidents arising out of one occurrence.
(1% of the Limit of indemnity subject to a minimum of Rs.1,00,000/- to

be expressed in Rupees)
9. Exclusions:
Notwithstanding anything contained herein to the contrary, this

insurance shall not cover any liability:
i. for Death or Personal Injury or any claim arising directly or

indirectly under \Workmen's Compensation or Employers Liability
Acts or any other statutory or Common Law Liability in respect of
loss of life, bodily injury to or illness of any workman or other
person employed in any capacity whatsoever by the Assured, his
agents or sub-contractors when such loss of life, bodily injury or
illness arises out of or in the course of the employment of such
workman or other person;
ii. in respect of property

(a) Owned by, used by or leased to the Assured;
(b) in the care, custody or control of the Assured [other than
property referred to in Clause 6 (a), (c) or (d) above] ;
iii. being Collision Liability, Tower's liability or liability arising out of

the navigation of any Vessel or Craft owned or operated by the
Assured or any affiliated or subsidiary concern or party;
iv. in respect of or arising in connection with any Vessel or Craft

accepted by the Assured solely to be stored;
248
v. in respect of or arising in connection with an oil tank Vessel or

Craft or any Vessel or Craft previously engaged in carrying
explosives or inflammable liquids or gases or arising in
connection with work;
(a) on or near any fuel tank or pipeline of an oil burning

Vessel or Craft.
(b) on or near any bunker space of any coal burning Vessel or
Craft.
Unless the rules, regulations and requirements of the port or
governmental authorities at the place where the work is being
carried out have been complied with. Should a gas free certificate
not be required by the port or governmental authorities then such
a certificate must be obtained from a chemist approved by Lloyd‗s
Agent prior to the commencement work;
vi. in respect of or arising in connection with any new Vessel or Craft

being built by the Assured.
vii. for payment under penalty clauses, detention, demurrage, loss of

time, loss of freight, loss of charter, loss of market or any other
consequential loss whatsoever, in respect of property referred to
in Clause 6 above;
vii. arising from the existence, maintenance or use of:

a. any licensed truck, automobile or other mechanically propelled
vehicle;
b. any unlicensed truck, automobile or other mechanically
propelled vehicle outside the premises or yard of the Assured;
ix. in respect of loss or damage specified in Clause 6 above unless

discovered and reported in writing to Underwriters within ninety
days of the delivery to Owners or within 6 months after the work
is completed by the Assured, whichever may first occur;
x. (a) condemnation or rejection of any part by reason of faulty

design.
(b) any loss or expense arising from such condemnation or
rejection;
(c) the cost or expense of repairing, modifying or replacing
any part (or for any loss or expense arising therefrom) by
reason of faulty design.
249
xi. arising from any strike, lockout, labour disturbance, riot, civil
commotion or act of any person taking part in any such
occurrence or from any act of any person acting maliciously;
xii. directly or indirectly occasioned by, happening through or in

consequence of:
a. war, civil war, revolution, rebellion, insurrection or civil strife

arising therefrom or any hostile act by or against a belligerent
power.
b. capture, seizure, arrest, restraint or detainment (barratry and

piracy excepted) and the consequences thereof or any
attempt thereat.
c. Derelict mines, torpedoes, bombs or other derelict weapons of

war.
d. destruction of or damage to property by or under the order of

any government or public or local authority.
xiii. directly or indirectly caused by or contributed to by or arising

from ionising radiations or contamination by radioactivity from
any nuclear fuel or from any nuclear waste from the combustion
of nuclear fuel.
xiv. Assured under contract or otherwise in extension of the liability

imposed upon the Assured by law in the absence of contract.
xv. For punitive and exemplary damages however described.
GENERAL CONDITIONS:
Inspection of Books:
The Assured shall keep a complete and accurate record of all gross charges for
operations covered hereunder and shall make these records available to
Underwriters upon request.
Notice Of Claim:
ln the event of any occurrence which may result in a claim under this insurance
the Assured shall give prompt written notice to the Underwriters hereon, shall
forward every summons or process (or copies thereof) served upon the
Assured and shall keep Underwriters fully advised.
250
Claim Control:
Underwriters shall at any time be entitled I(but not obliged) to control or take
over the conduct of the investigation defence and settlement of any claim suit
or proceeding against the Assured which is or is likely to be the subject of
indemnity under this insurance.
ln the event of this insurance being one layer or a series of layers of insurance
and more than one layer being likely to be involved in a particular occurrence,
the Assured shall endeavour to obtain the agreement of the insurers of each
affected layer as to the manner in which such control or taking over shall be
effected and the costs, charges and expenses incurred borne.
Subrogation:
In the event of any claim or loss being paid under this insurance, Underwriters
shall be subrogated to all rights and remedies of the Assured. The Assured
shall not admit liability nor give any waiver of subrogation without the express
permission of Underwriters.
Reconstruction or Conversion:
lt is a condition of this insurance that before work commences involving the

reconstruction or conversion of any Vessel or Craft which entails a change in
dimension, tonnage or type, the Assured must advise Underwriters and the
coverage hereon in respect of such Vessel or Craft shall depend on the
payment by the Assured of such Additional Premium as may be required by
Underwriters.
Due Diligence:
It is the duty of the Assured and his agents at all times to take such measures
as may be reasonable for the purposes of averting or minimising a loss.
Assignment:
It is agreed that no assignment of or interest in this insurance or in any

moneys which may be or may become payable hereunder is to be binding on
or recognised by Underwriters unless a dated notice of such assignment or
interest signed by the Assured and by the assign or in the ease of subsequent
assignment, is endorsed on this insurance and the insurance with such
endorsement is produced before payment of any claim or return of premium
hereunder but nothing in this condition is to have effect as an agreement by
Underwriters to a sale or transfer to a new management.
251
Other Insurances:
In the event of an occurrence giving rise to a claim which is or but for the
existence of this insurance would be covered under any other indemnity or
insurance inuring to the benefit of the Assured, the insurance afforded by this
Policy shall be in excess of the amount which would be recoverable under such
other indemnity or insurance had this insurance not been effected, but only to
the extent that the excess amount is covered by this insurance.
Law & Practice:
This Policy is subject to English law and practice.
Cancellation:
This insurance may be cancelled by either party on giving the other 30 days
notice in writing.
In the event of Underwriters giving notice the words "minimum and‖ in Clause
4 above shall be deemed to be deleted.
PERSONAL INJURY ENDORSEMENT
In consideration of an Additional Premium of ........... this insurance shall be

extended to include legal liability of the Assured for death or personal injury
occurring in the course of and arising from the ship repairing operations of the
Assured, but in no event shall this endorsement provide cover, for any claim
arising directly or indirectly under Workmen's Compensation or Employers
Liability in respect of loss of life, bodily injury to or illness of any workman or
other person employed in any capacity whatsoever by the Assured, his agents
or sub-contractors when such loss of life, bodily injury or illness arises out of or
in the course of the employment of such workman or other person.
Subject otherwise to all terms, clauses and conditions of this insurance.
OTHER WORK ENDORSEMENT:
1. Subject to prior notification to and agreement of Underwriters, this

insurance shall be extended to cover other repair operations which do
not come within the scope of the ship repairing operations of the
Assured. The gross charges in respect of such operations shall be
declared to Underwriters and adjusted at a rate of ........,........ .
2. So far as concerns such other repair operations:
252
a. The expressions Ship repairers‗ and ‗Ship repairing whenever

used in this insurance, other than in Clause 5, shall be deemed to
include other repair operations of the Assured;
b. Clause 6(d) of this insurance shall be deemed to be substituted

by the following:
loss of` or damage to property [other than that referred to in (a),

(b) or (c) above] which is in the care, custody or control of the
Assured for the purpose of being worked upon including whilst in
transit to or from the premises of the Assured or whilst in transit
to or from specialist repairers' or manufacturers' premises.
Subject otherwise to all terms, clauses and conditions of this

insurance.
PREMIUM ENDORSEMENT
Notwithstanding anything contained herein to the contrary, it is hereby

declared and agreed that the Premium chargeable on this Policy is as follows:
(1) 0.10% on the Limit of Liability indicated in the Policy,

Plus
(2) 0.40% on gross actual/audited charges of the Assured.
N.B.:
i. In the absence of audited gross charges at the commencement of the

cover, for the immediately preceding l2 months of operation of the
Assured, or any part thereof (in case the assured has been in operation
for less than 12 months prior to the commencement of this Cover), the
computation of Premium in (2) above can be based on a fair and
reasonable estimate ot` the gross charges of the Assured either for the
preceding period or period covered, whichever is higher and such
provisional Premium in respect of (2) above, will be subject to
adjustment on the expiry of this Policy, the assured being required
under this Policy, to submit to the Insurers, the audited gross charges,
for the period covered under the Policy, as soon as his accounts are
audited and such audited accounts are passed, but not later than 12
months Rom the date of expiry of this Policy.
ii. The gross Premium is arrived after aggregating (l) & (2) above.
253
iii. The entire net Premium including the provisional Premium on account of
(2) above, if any, is payable along with the Stamp Duty on or before the
commencement ot` cover.
iv. Total Net Premium charged at the commencement of cover under this
Policy, will not be less than Rs. 10,000/- and if on adjustment of
Premium on expiry of cover, it is found that the Aggregate Net Final
Premium computed on the basis of (1) and (2) above, is less than
Rs. 10,000, a minimum of Rs.10,000/- will be retained by the Insurer
irrespective of the period of cover, and balance, if any, may then be
refunded to the Assured. The minimum amount to be retained by the
Insurer will be in addition to the Stamp Duty payable under this Policy ·
254
SECTION 8
UNDERWRITING OF CHARTERER‟S LIABILITY INSURANCE
This Section deals with the insurance of the liabilities of Time Charterers and is
not applicable to demise/bareboat charterers. Insurances shall be granted only
to Indian Citizens chartering Indian or foreign flag Vessels.
Conditions of Insurance shall:
a. include losses, cost and expenses incurred by them as Charterers

(in respect of their liability) as per P.J.Non-entered Form
b. include Pollution Liability but limited to 50% of maximum Liability
c. include Liability of paying Charter Hire following maritime peril as

per CL 345 NEForm
d. include Liability to Mother Vessel.
e. include lightening and ranging risks but warranted all accidents in

respect of ranging damage to be entered into the Master's Log at
the time of the accident and information given to the charterers
within 12 hours of the occurrence.
f. be subject to Owners having full P & I Club entry including pollution

and Charter Party containing no contractual agreement in respect of
Pollution.
g. exclude Liability to Cargo and exclude Liability arising out of War

Risks, howsoever caused.
INTEREST
Cover under the Policy should commence from the time the Daughter Vessel
comes alongside the Mother Vessel and continues during the time both the
Vessels are in the process of double banking, when Crude Oil is being
transferred from Mother Vessel to Daughter Vessel and thereafter during the
dismantling of hoses and the process of unbanking. Similarly, any operation
involving Charterers' Vessel in the case of General Cargo Vessels should also be
included.
SUBSTITUTION OR SUB-CHARTER:
It is permitted to substitute the chartered Vessel. Also. it is permitted to insure

a sub-chartered Vessel on same terms as applicable to a chartered Vessel.
255
However, the substitute or the sub—chartered Vessel should be named and

should be more or less of similar tonnage

Exclusions Clause.
STAMP DUTY
RATING GUIDELINES
LIMIT OF LIABILITY:
The Insurer‘s Liability will be ascertained as under
(a) Limit of Liability - any one occurrence
(b) Separate Limit of Liability for seepage and pollution risks, if such
cover is required.
Also, the assureds should be asked to give the basis on which they have
calculated the above amounts.
RATING PATTERN:
Rating pattern shall be based on a combination of two elements:
(i) Rs.9/- per GRT per annum.
(ii) A flat rate of 0.025% on the Limit of Liability.
For the inclusion of Seepage and Pollution Liability, the Rs. per
GRT rate shall be suitably enhanced.
A discount of 30% may be allowed if Contractual Liability to third
parties is excluded.
DEDUCTIBLE
There should be different deductibles for the H & M and the P & I Covers, as
follows subject to the warranty that the deductibles shall remain uninsured.
256
(a) H & M - 1/4% of Limit of liability but not below Rs.1,00,000/-

(b) P&I - 50% of above
RENEWAL
The insurance has to be rated afresh as per the rating guidelines and then the
CLAIMS EXPERIENCE
Based on the claims experience for a maximum of 5 years the following

loading/discounts have to be granted.

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
OTHER INSURANCES
Charterers' Bunkers subject to ITC (Hulls) TLO dated 1-10-83 as applicable

including GA/SC.
Limit of Liability - Rs.10 lakhs.
Rate - 0.125%.
There would be no deductibles for these insurances.
War Risks ; As per London Scale rate.
CHARTERERS' FREIGHT INSURANCE:
Charterers‘ Freight subject to l.T.C. Freight dt.1-8-89.

Limit of Liability – Rs.10 lakhs.
Rate -0.15%
There would be no deductibles for these insurances.
War Risks: As per London Scale Rate
Trading Warranty: Institute Warranties.
257
MINIMUM PREMIUM:
It shall be the sum total of the following two components:
a. Total Premium on the Limit of Liability

b. 2 months' Premium worked out on the Vessel with the highest
GRT, based on the declarations made during the Policy period or
on a GRT of 2500, whichever is higher.
DEPOSIT PREMIUM:
Deposit Premium shall be collected before the commencement of risk as under:
(a) Total Premium on the Limit of Liability plus

(b) 2 months‘ Premium ………… or on a GRT of 2500, whichever is
higher.
ADJUSTMENT OF PREMIUM:
Deposit Premium shall be adjusted at the end of the Policy period as under:
i. The Premium collected on the Limit of Liability should be retained

in full, Plus
ii. Rs.9 per GRT per annum to be charged on pro-rata basis per day
or part thereof for each operation, based on the tonnage of the
Vessel used but subject to a minimum 2months‘ Premium on the
highest tonnage Vessel used during the Policy period, subject to
the minimum Premium as given hereinabove.
At the end of the Policy period, the difference between the

Premium collected as per the provision for Deposit Premium as
given hereinabove and the actual Premium chargeable depending
on the number of operational days and the tonnages of the
Vessels used, shall be adjusted by collecting it from the assureds
or refunding it to the assureds, as may be the case, subject to
the minimum Premium not falling below what has been stipulated
hereinabove under the heading "Minimum Premium".
It may be emphasised that as mentioned hereinabove no

adjustment is required as far as the Premium collected on the
Limit of Liability is concerned.
258
MARINE HULL PROPOSAL FORM

(FOR CHARTERER'S LIABILITY INSURANCE)
NAME OF THE PROPOSER (Charterer)
TEL.
(a) Nature of Charter Party Agreement
(Time/Voyage)
(b) Details of Charter Party to be attached
(Yes/No)
(c) Period of Charter Party Agreement.
CHARTERED VESSEL DETAILS
(a) Name, including previous name(s), if any
(b) Type
(c) LR. No.
(d) GRT/DWT/BHP/Formula DWT (Reefers)
(e) Year Built
(f) Country of Registration (Flag)
(g) Is the Vessel classed? If so, please give
details.
(h) Trade (Liner or Tramp)
(i) Any other relevant particulars.
(4) Details of cover taken by the owners for
the Vessels to be chartered , as under
(a) Sum Insured :
H&M
Freight
Disbursements
(b) Name of Insurers and address:
(c) Period of Insurance:
259
(d) Conditions of Insurance:

H&M
Freight
(i) Disbursements
(ii) War
(e) Deductible
(f) Trading Warranty
(g) (i) Is the Vessel entered with any P &
I Club? If so, please give name of
the Club.
(ii) Is the Vessel entered for
Charterers‘ Risks?
(5) Nature of Cargo to be carried by each
Vessel
(6) Trading Area for the purpose of the
Charter Party.
INSURANCE REQUIRED
(a) Limit of liability any one occurrence
(b) Whether cover is required against
seepage and pollution liability? If so,
please indicate `limit
(c) Basis of calculation of(a) & (b)
(8) Deductible opted for (a) & (b)
OTHER DETAILS
(a) Details of Vessel(s) chartered during last
12 months
(b) Full details of the Charterers‘ loss
experience during the last 5 years.
(c) Whether you have taken any Charterers'
Liability cover in the past? If so, please
give details.
(d ) Has any Insurer declined to grant cover?
If yes, please give reasons therefor.
(e) Has any Insurer declined to renew
insurances in the past? If so, please give
reasons therefor.
260
(10) Full details of Owners/Charterers.

(11) Any other relevant information.
DECLARATION
COMPANY LTD.
Date
Place
satisfactory.
(SIGNATURE)

Section 41 of the insurance Act.1938 which is in force from the 1 st July 1939,
reads as follow :
261
SECTION – 9
SHIP BREAKING INSURANCE
Sub-Section I
General Regulations
1. Insurance of Ship Breaking shall be done in the Hull Department under

Marine Insurance.
2. There should be a fully completed Proposal Form.
3. The Proposer can taken the cover from the date of beaching of the
vessel or from any date thereafter but not later than the date on which
Customs' Clearance is given for commencement of breaking.
4. The Proposer can choose to take cover from a date after the date of
Customs‘ Clearance for commencement of breaking but premium in such
cases will be calculated as if the cover incepted on the date of beaching.
5. Sum Insured :
Sum Insured shall be taken on agreed value basis and will comprise the
aggregate of the following components:
Full Purchase Price

Customs Duty
Port Charges
Any other Government Levy.
and shall be distributed among the various components as specified in

the Proposal Form.
6. Period of Insurance:
Period of Insurance should be reckoned in full months as estimated and

declared by the Proposer but, in any case, not for a period (in full
months) lower than that which would be arrived at on the basis of
dividing the actual LDT of the vessel by the LDT per month stipulated in
the following Table, subject to minimum period provided therein:
262
LDT OF VESSEL SPECIALISED GENERAL CARGO

VESSELS VESSEL
a) Ships upto 4000 Minimum 2 months or a Minimum 2 months or a
LDT period to be arrived at, in period to be arrived at, in
full months, by dividing full months, by dividing
the actual LDT of the the actual LDT of the
vessel by 1500 LDT, vessel by 1500 LDT,
whichever is higher whichever is higher
b) Ships above 4000 Minimum 2 months or a Minimum 2 months or a
LDT and upto period to be arrived at, in period to be arrived at, in
10,000 LDT full months, by dividing full months, by dividing
c) Ships above Minimum 4 months or a Minimum 4 months or a
10,000 LDT and period to be arrived at, in period to be arrived at, in
upto 30,000 LDT full months, by dividing full months, by dividing
d) Ships above Minimum 9 months or a Minimum 9 months or a
30,000 LDT period to be arrived at, in period to be arrived at, in
full months, by dividing full months, by dividing
NOTE: For the purpose of the above Table, the Specialised/General Cargo
Vessels shall be taken to mean as under :
Category I : Specialised Vessels:
Fish-factory Vessels, Fully Insulated Vessels , Reefer Vessels, Cattle

Carriers, Car Carriers, Scientific & Research Vessels, Survey Vessels and similar
Specialised Vessels, Aircraft Carriers, Submarines, Naval Vessels, Oil Rigs,
Passenger Vessels.
Category ll : General Cargo Vessels : All other Vessels except above.
263
7. Additional Covers:
Earthquake, Volcanic Eruption or other convulsions of nature, Typhoon,

Hurricane, Tornado, Cyclone or other atmospheric disturbances, Flood
and lnundation; Cover for these additional perils may be included in the
Policy on payment of additional premium as per the Schedule Rates.
N.B. This cover is to be opted for at the inception of the Policy and mid-
term inclusion is not permitted.
8. Extension of Policy Period:
lt is permissible to extend the policy period beyond the initial period

selected, in case the insured is not able to complete the breaking
operations before expiry of the cover, at the fate set out in the Schedule
of Rates, provided such request of extension is received and the
additional premium is paid before the expiry of the current period of
insurance.
9. Inception of Cover After the Date of Customs‟ Clearance for

breaking:
lt is permissible to grant cover as above subject to:
(a) Pre-Acceptance Survey as to the condition of the vessel/ship at

the Insured‘s expense by a Hull Surveyor nominated by the
Company,
and
(b) Collection of Hill applicable premium calculated from the date the
Ship/Vessel was beached,
and
(c) Cover incepting not earlier than the date and time of payment of
premium or the date of Pre-Acceptance Survey, whichever is
later,
and
(d) The Policy excluding all loss or damage noted in the Pre-
Acceptance Survey Report, which shall also form part of the
Policy, and be attached thereto.
10. Extension of Policy after Expiry:
ln case extension is requested after expiry of the policy period, premium

shall be calculated from the month following the month at the end of
which the cover had expired, as per the rates specified for extension of
policy period alter expiry of period of insurance, subject to conditions
(a), (c) & (d) mentioned under item 9 above.
264
11. Refund of Premium :
Refund of premium is permitted in the following cases as per the terms

stipulated in the Schedule of Rates;
a. Completion of breaking operations earlier than the period

specified in the policy period as stated in the policy
Schedule (or as extended thereafter by payment of
additional premium) :
Where the operation is claimed to be completed in a period of

months less than the figure arrived at by dividing the declared
LDT of the vessel by applicable factors given in the Table
appearing in General Regulation No.6, refund of premium shall be
limited to the difference in the period, reckoned in months,
between the period of insurance as stated in the Policy and the
actual period in which the breaking operations were completed,
subject to minimum period stipulated (Please refer to General
Regulation 6).
The refund as above can be granted provided:
(i) Certificate from a competent Hull Surveyor is obtained

stating that breaking operations have been completed;
and
(ii) No Claim has been preferred under the Policy.
b. Cancellation by the Insured in exercise of the rights conferred

by General Condition no.4(i) of the Policy.
c. Cancellation by the Insurer in exercise of the rights conferred

by General Condition no.4(ii) of the Policy.
12. Owner‟s Discount :
15% Owner's Discount, including 5% Agency Commission, can be

granted on this Policy.
13. Deletion of Additional Warranty No.3:
In case of Reefer Vessel/Fully Insulated Vessel, this Warranty can be

deleted on payment of extra premium, as stated in the Schedule of
Rates. In case of any other type of vessel, this Warranty shall not be
deleted.
265
Sub-Section II
PROPOSAL FORM
1. Name of Insured :
2. Address :
3. Place where vessel is to be

beached and broken :
(please specify yard,
plot and port)
4. Name of the vessel :
5. LDT of vessel :
6. Type of Vessel :
7. Date of Beaching of Vessel :
8. Date of Customs' Clearance for

breaking of the Vessel :
9. Expected date of commencement

of breaking of Vessel :
10. Expected date of completion

of breaking :
11. Period for which Insurance

Cover is required :
From: ………………… To: …………………..
[ *Kindly refer to the two Notes provided at the end of the Proposal
Form preceding the Box meant for Office Use.]
12. Details of Sum Insured :
a) Purchase Price : Rs…….. @ Rs………….per LDT

b) Custom Duty
c) Port Charges
d) Any Government levy
Total
Total : Rs. distributed as follows:-
266
Weight Rate Amount

(MT) (Rs.per Ton) (Rs.)
(Inclusive of Customs
Duty, Port Charges and
other declared levy).
1 lron and Steel - Melting Scrap,
Rerollable Scrap, Cast Iron
Scrap & Pipes.
2 Non-Ferrous articles of Brass,
Copper, Aluminium, Lead,
Zinc, white metal, gun metal,
including cables.
3 Machinery including
switchboards, panels,
generators (KVA to be
indicated ) electric motors,
pump sets etc. lf main engine
is to be separately included,
specify the item and value.
4 Spares
5 Timber & Furniture
6 Any other please specify
Do you require additional cover for:

Hurricane, Tornado, Cyclone or other atmospheric disturbances, Flood and
lnundation. Yes/No
I/We hereby declare that the above statement and particulars are true. I/We
have not omitted. suppressed, or misrepresented or misstated any material
fact and I/We agree that this declaration shall be the basis of the contract
between me/us and the Company and shall be deemed to be incorporated
therein.
Signature of Proposer
[ * Kindly refer to Item No.11of this Proposal Form]
NOTE 1:
Period of Insurance should be reckoned in hill months as estimated and
declared by the proposer but in any case not for a period (in full months) lower
than that which would be arrived at on the basis of dividing the actual LDT of
267
the vessel by the LDT per month stipulated in the following Table, subject to
minimum period provided therein :
GENERAL CARGO
LDT OF VESSEL SPECIALISED VESSELS
VESSEL
a) Ships upto 4000 Minimum 2 months or Minimum 2 months or a
LDT a period to be arrived period to be arrived at,
at, in full months, by in full months, by
dividing the actual LDT dividing the actual LDT
of the vessel by 1500 of the vessel by 1500
LDT, whichever is LDT, whichever is higher
higher
b) Ships above 4000 Minimum 2 months or Minimum 2 months or a
LDT and upto a period to be arrived period to be arrived at,
10,000 LDT at, in full months, by in full months, by
higher
c) Ships above 10,000 Minimum 4 months or Minimum 4 months or a
LDT and upto a period to be arrived period to be arrived at,
30,000 LDT at, in full months, by in full months, by
higher
d) Ships above 30,000 Minimum 9 months or Minimum 9 months or a
LDT a period to be arrived period to be arrived at,
at, in full months, by in full months, by
higher
N.B. For the purpose of the above Table, the Specialised/General Cargo
Vessels shall be taken to mean as under: A
Category I : Specialised Vessels:
Fish-factory Vessels, Fully Insulated Vessels , Reefer Vessels, Cattle Carriers,

Car Carriers, Scientific & Research Vessels Survey Vessels and Similar
Specialised Vessels. Aircraft Carriers, Submarines, Naval Vessels, Oil Rigs,
Passenger Vessels.
268
Category II : General Cargo Vessels : All other Vessels except above.

NOTE 2 :
The Proposer can choose tc take cover from a date alter the date of Customs‘
Clearance for commencement ol` breaking, subject to:
(a) Pre-Acceptance Survey as to the condition of the vessel/ship at

the Insured's expense by a Hull Surveyor nominated by the
Company.
and
b) Collection of full applicable premium calculated from the date the
Ship/Vessel was beached,
and
(d) Cover incepting not earlier than the date and time of payment of
premium or the date of Pre-Acceptance Survey, whichever is
later,
and
(d) The Policy excluding all loss or damage noted in the Pre-
Acceptance Survey Report, which shall also form part of the
Policy, and be attached thereto.
For Office Use Only
Category of Vessel for deciding LDT : Category I/II

LDT of the Vessel :
Prescribed breakage rate per month : ………… LDT
Period of Insurance as per above: ............... months
Period of Insurance opted for : ......,........ months
Value rate @ .... % on Rs. ................. Rs…………
Period rate : ...... % @ ..... % for ....................... Rs..............
months
A. P. for Additional Cover@: ......,.% Rs...............
A. P. for deletion of Additional Warranty No.3 @ ....... Rs.............,.
%
Total
Less: Owner‘s Discount:
Total Rs..............
Stamp Duty Rs.............
Service Tax : Rs..................
269
Total Rs..,...............
270
Sub-Section III
SCHEDULE OF RATES
NOTE 1
All rates indicated are the minimum applicable rates and higher rates may be
charged at the Underwriter‗s discretion.
NOTE 2
The basic premium on each Proposal shall consist of the two following
components
a. The value rate which shall be the rate charged on the Total Sum
Insured.
b. The period rate which shall be the cumulative total of the monthly
rate arrived at for the total duration of the period of insurance.
RATES:
1. Value Rate:
0.50% on the Total Sum Insured as declared in the Proposal Form.
2. Period Rate:
To be calculated at the rate of 0.05% per month or part thereof for the
total duration of the period of insurance.
3. Rates for Additional Covers :

Hurricane, Tomado, Cyclone or other atmospheric disturbances, Flood
and lnundation : As per rates irl the Fire Tariff to be calculated on total
Sum Insured on prorata basis for the total period of insurance. ·
4. Extension Rates :
a) Where extension is requested and premium paid before expiry of

the current period of insurance :
i. Value rate - additional – nil
ii. Period rate - additional - calculated at the rate of 125% of

the normal period rate applicable to the period of
extension requested in full months.
271
iii. Earthquake, Volcanic Eruption or other convulsions of

nature, Typhoon, Hurricane, Tomado, Cyclone or other
atmospheric disturbances, Flood and lnundation : As per
rates in the Fire Tariff: to be calculated on total Sum
Insured on pro-rata basis for the total period of insurance.
b) Where extension is requested after the expiry of the period of

insurance : .
i. Value rate - additional – nil
ii. Period rate - additional - calculated at the rate of 125% of

the normal period rate applicable to the period of
extension requested in full months, reckoned from the
date of expiry of the period of insurance.
5. Cover incepting after the date of Customs‟ Clearance for

breaking:
i. Value rate - As applicable under (1) above.
ii. Period rate – 0.05% per month or pan thereof calculated from
the date the Ship/Vessel was beached.
iii. Earthquake, Volcanic Eruption or other convulsions of nature,

Typhoon, Hurricane, Tornado, Cyclone or other atmospheric
disturbances, Flood and lnundation - As per rates in the Fire
Tariff} to be calculated on total Sum Insured on pro rata basis
from the date the Vessel/Ship was beached.
6. Deletion of Additional Warranty No.3 :
Additional 25% premium to be charged, in case of Reefer/Insulated

Vessels on the gross premium. The same additional 25% premium shall
be charged for extension rates, as well as for cover incepting after the
date of Customs‗ Clearance for breaking.
7. (a) Completion of breaking operations earlier than the period

specified in the policy period as stated in the Policy
Schedule (or as extended thereafter by payment of
additional premium) :
i. Value rate – nil

ii. Period rate and additional cover rates - pro rata monthly
for the unexpired balance of policy period.
272
N.B.: Where the operation is claimed to be completed in a period

of months less than the figure arrived at by dividing the declared
LDT of the vessel by applicable factors given in the Table
appearing in General Regulation No.6, refund of premium shall be
limited to the difference in the period, reckoned in months,
between the period of insurance as stated in the Policy and the
actual period in which the breaking operations were completed,
subject to minimum period stipulated. (Please refer to General
Regulation 6.)
For Example, a vessel falling in the category of General Cargo

Vessel, with 50,000 LDT, will have a minimum period of 9
months; however. the Policy shall be issued for a period of 13
months (12.5 months rounded of to 13 months) as per the said
Table.
In the above case, if the breaking operations are completed in,

say, 12 months, the Insured will get one month's refund of
premium, on pro rata monthly basis. However, if the breaking
operations are completed in, say 7 months, the Insured will get 4
months of refund of premium on pro rata monthly basis (i.e. 13
months minus minimum 9 months)
b) Cancellation by Insured :
i. Value rate - nil

ii. Period rate - The amount equivalent to the balance of the
premium paid after retaining 125% of the period rate,
calculated as per (2) above for the utilised period of
insurance.
iii. Earthquake, Volcanic Emption or other convulsions of
nature, Typhoon, Hurricane, Tornado, Cyclone or other
atmospheric disturbances, Flood and Inundation - The
amount equivalent to the balance of the additional
premium paid alter retaining 125% of the premium
calculated for the utilised period of insurance.
c) Cancellation by Insurer:
i. Value rate – nil

ii. Period rate - Pro rata monthly for the unexpired balance
policy period.
iii. Earthquake, Volcanic Eruption or other convulsions of
atmospheric disturbances, Flood and Inundation - Pro rata
monthly for the unexpired balance policy period.
273
Sub-Section IV
SHIP BREAKING INSURANCE POLICY
In consideration of the lnsured named in the Schedule hereto having paid to

THE ............... Company Limited (hereinafter called the Company) the
premium mentioned in the said Schedule, THE COMPANY AGREES (subject to
the Conditions and Exclusions contained herein or endorsed or otherwise
expressed hereon) that if after payment of the premium the property insured
described in the said Schedule or any part of such property, be destroyed or
damaged by:-
1. Fire
2. Lightning
3. Explosion/Implosion but excluding loss of or damage to (a) boilers,

(other than domestic boilers) economisers or other vessels, machinery
or apparatus in which steam is generated or their contents resulting
from their own explosion/implosion, (b) caused by centrifugal forces.
4. Impact by Rail/Road vehicle.
5. Aircraft and other aerial and/or space devices and/or articles dropped
therefrom, excluding destruction or damage occasioned by pressure
waves caused by such devices.
6. Riots, Strikes, Malicious and Terrorism damage as per Clause 13 of this

policy during the period of insurance named in the said Schedule or of
any subsequent period in respect of which the Insured shall have paid
and the Company shall have accepted the premium required for the
continuance of the Policy, the Company will pay to the Insured the value
of the property so destroyed or damaged in accordance with the Sum
Insured specified, in the Proposal and accepted by the Insurer, in the
terms of this Contract.
PROVIDED that the liability of the Company shall, in no case, exceed in

respect of each item, the sum expressed in the said Schedule to be
insured thereon or in the whole the total Sum Insured hereby, or such
other sum or sums as may be substituted therefor by Memorandum
hereon or attached hereto signed by or on behalf of the Company.
274
EXCLUSIONS
The insurance does not cover:
a. The first Rs. 50,000/- or 1/2% of the total Sum Insured whichever is
greater but not exceeding Rs. 6,00,000/-, of each and every loss in
respect of which the insurance is indemnified by this Policy.
b. Loss by theft during or after the occurrence of any insured peril except
as provided for in Riot, Strike and Malicious Damage Clause.
c. Loss or damage to property occasioned by its own fermentation, natural

heating or spontaneous combustion or by its undergoing any heating or
drying process.
d. Loss or damage occasioned by or through or in consequence of
- the burning of property by order of any Public Authority.

- Subterranean Fire.
e. Loss or damage directly or indirectly caused by or arising from or in

consequence of or contributed to by nuclear weapons materials.
f. Loss or damage directly or indirectly caused by or arising from or in

consequence of or contributed to by ionising radiations or
contaminations by radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear tire!. For the purpose of
this Exclusion only, combustion shall include any self sustaining process
of nuclear fission.
g. Loss of or damage to any electrical machine, apparatus, fixture or fitting

(including electric fans, electric household or domestic appliances,
wireless sets, television sets and radios) or to any portion of the
electrical installation, arising from or occasioned by overrunning,
excessive pressure, short circuiting, arcing, self-heating or leakage of
electricity from whatever cause lightning included); provided that this
exemption shall apply only to the particular electrical machine,
apparatus, fixture, fitting or portion of the electrical installation so
affected and not to other machine, apparatus, fixture, fittings, or portion
of the electrical installation which may be destroyed or damaged by fire
so set up.
h. Any loss or damage occasioned by or through or in consequence directly

or indirectly of any of the following occurrence, namely,
275
(i) Earthquake, Volcanic Eruption or other convulsions of nature.
(ii) Typhoon, Hurricane, Tornado, Cyclone or Other atmospheric

disturbance, Flood and lnundation.
(iii) War, invasion, act of foreign enemy, hostilities or war like

operations (whether war be declared or not), Civil War.
(iv) Mutiny, civil commotion assuming the proportions of or

amounting to a popular rising, military rising, insurrection,
rebellion, revolution, military or usurped power.
(v) Burning, whether accidental or otherwise, of forest, bush and

jungles and the clearing of lands by fire.
In any action, suit or other proceedings where the Company

alleges that by reason of the provisions of the above Exclusions
any loss or damage is not covered by this insurance, the burden
of proving that such loss or damage is covered shall be upon the
Insured.
i. Unless otherwise expressly stated in the Policy, loss or damage to
Goods held in trust or on commission.
Bullion or unset precious stones,
Any curios or work of art for an amount exceeding Rs.2,500/-
Manuscripts, plans, drawings or designs, patterns, models or moulds.
Securities, obligations or documents of any kind, stamps, coins or

paper money, cheques, books of accounts or other business books,
computer system, records.
Explosives
PERIOD OF COVER:
The Liability of the Company shall commence only from the effective date
specified in the policy and shall continue until the date specified in the Policy or
completion of breaking operations, whichever is earlier.
GENERAL CONDITIONS:
1. THIS POLICY shall be voidable in the event of misrepresentation,

misdescription or non-disclosure of any material particular.
276
2. Under any of the following circumstance, the insurance ceases to attach

as regards the property affected unless the Insured, before the
occurrence of any loss or damage, obtains the sanction of the Company,
signified by endorsement upon the Policy by or on behalf of the
Company.
If the trade carried on be altered, or if the nature of the occupation

of or other circumstances affecting the vessel insured be changed in
such a way as to increase the risk of loss or damage by Insured
Perils.
If the interest in the property insured passes from the Insured

otherwise than by will or operation of law.
3. This insurance does not cover any loss or damage to property which, at
the time of the happening of such loss or damage, is insured by or
would, but for the existence of this Policy. be insured by any marine
policy or policies except in respect of any excess beyond the amount
which would have been payable under the marine policy or policies had
this insurance not been effected.
4. i. This insurance may be terminated at any time during the

currency of the Policy at the request of the lnsured in which case
the Company will refund to the Insured the amount representing
the difference between premium paid and the amount calculated
as below against the stated heads:
a. Period rate - The amount equivalent to the balance of the

premium paid after retaining 125% of the normal period
rate for the utilised period of insurance.
b. Earthquake, Volcanic Eruption or other convulsions of

atmospheric disturbances, Flood and Inundation.
The amount equivalent to the balance of the premium paid after

retaining 125% of the premium calculated for the utilised period
of insurance.
However, no refund of premium shall be allowed in the event of

an occurrence which is likely to give rise to a claim under this
insurance unless (a) all rights to such claim have been specifically
waived by the Insured in writing, and (b) interest in the property
has not passed otherwise than by will or operation of law.
277
ii. This insurance may also, at any time, be terminated at the option
of the Company on 15 days' notice to that effect given to the
Insured in which case the Company shall be liable to repay, on
demand, the amount representing the period premium for the
remaining months of the unexpired period from the date of
cancellation.
iii. No refund shall be allowable against the premium collected by

applying the value rate.
5. i) On the happening of any loss or damage, the Insured shall

forthwith give notice thereof to the Company and shall within 15
days after the loss or damage or such further time as the
Company may in writing allow in that behalf] deliver to the
Company.
a. A Claim, in writing, for the loss or damage, containing as

particular an account as may be reasonably practicable, of
all the several articles or items or property damaged or
destroyed, and of the amount of the loss or damage
thereto respectively, having regard to their value at the
time of the loss or damage not including profit of any kind.
b. Particulars of all other insurances, if any.
The Insured shall also, at all times, at his own expense produce,
procure and give the Company all such further particulars, plans,
specifications, books, vouchers, invoices, duplicates or copies
thereof; documents, proofs and information, with respect to the
claim and the origin and cause of the insured perils, and the
circumstances under which the loss or damage occurred, and any
matter touching the liability or the amount of the liability of the
Company as may be reasonably required by or on behalf of the
Company together with a declaration on oath or in other legal
form for the truth of the claim and of any matters connected
therewith.
No claim under this Policy shall be payable unless the terms of

this condition have been complied with.
ii) In no case whatsoever shall the Company be liable for any loss or
damage after the expiration of 12 months from the happening of
the loss or damage unless the claim is the subject of pending
action or arbitration: it being expressly agreed and declared that
if the Company shall disclaim liability for any claim hereunder and
278
such claim shall not, within l2 calendar months from the date of
the disclaimer, have been made the subject matter of a suit in
court of law, then the claim shall for all purposes be deemed to
have been abandoned and shall not thereafter be recoverable
hereunder.
6. On the happening of loss or damage to any of the property insured by

this Policy, the Company may –
a. enter and take and keep possession thereof.
b. keep possession of any such property and examine, sort, arrange,

remove or otherwise deal with the same,
c. sell any such property or dispose of the same for account of

whom it may concern.
The powers conferred by this Condition shall be exercisable by the

Company at any time until notice in writing is given by the Insured that
he makes no claim under the Policy, or if any claim is made, until such
claim is finally determined or withdrawn, and the Company shall not, by
any act done in the exercise or purported exercise of its powers
hereunder, incur any liability to the Insured or diminish its rights to rely
on the conditions of this Policy in answer to any claim.
If the Insured or any person on his behalf shall not comply with the
requirements of the Company or shall hinder or obstruct the Company,
in the exercise of its powers hereunder, all benefits under this policy
shall be forfeited. The Insured shall not, in any ease, be entitled to
abandon any property to the Company, whether taken possession of by
the Company or not.
7. lf the claim be in any respect fraudulent or if any false declaration be

made or used in support thereof or if any fraudulent means or devices
are used by the Insured or any one acting on his behalf to obtain any
benefit under the Policy or if the loss or damage be occasioned by a
willful act or with the connivance of the Insured, all benefits under this
Policy shall be forfeited.
8. Basis of Indemnity : In the event of loss claimable under this insurance,

the Insured will be indemnified on the basis of values declared in the
Proposal Form and accepted as Sum Insured. In no case shall the
Insurer be liable for any value greater than the proportion of the value
which the loss of any particular item - partly or in whole - bears to the
value of that item taken as Sum Insured.
279
For the purpose of this condition, all the values declared itemwise in the
Proposal Form shall be deemed to be itemwise Sums Insured.
9. If at the time of any less or damage happening to any property hereby

insured, there be any other subsisting insurance, whether effected by
the Insured or by any other person covering the same property, this
Company shall not be liable to pay or contribute more than its rateable
proportion of such loss or damage.
10. The Insured shall, at the expense of the Company, do and concur in
doing, and permit to be done, all such acts and things, as may be
necessary or reasonably required by the Company for the purpose of
enforcing any rights and remedies or of obtaining relief or indemnity
from other parties to which the Company shall be or would become
entitled or subrogated, upon its paying for or making good any loss or
damage under this Policy, whether such acts and things shall be or
become necessary or required before or after his indemnification by the
Company.
11. If any difference shall arise as to the quantum to be paid under this
policy (liability being otherwise admitted), such difference shall,
independently of all other questions, be referred to the decision of an
arbitrator to be appointed in writing by the parties in difference, or if
they cannot agree upon a single arbitrator, to the decision of two
disinterested persons as arbitrators, of whom one shall be appointed in
writing by each of the patties within two calendar months after having
been required so to do in writing by the other party in accordance with
the provisions of the Arbitration Act, 1940 as amended from time to
time and for the time being in force. In case either party shall refuse or
fail to appoint an arbitrator within two calendar months after receipt of
notice in writing requiring an appointment, the other party shall be at
liberty to appoint sole arbitrator and, in case of disagreement between
the arbitrators, the difference shall be referred to the decision of the
umpire who shall have been appointed by them in writing before
entering on the reference and who shall sit with the arbitrators and
preside at their meetings.
It is clearly agreed and understood that no difference or dispute shall be

referable to arbitration as here in force provided the Company has
disputed or not accepted liabilities under or in respect of this Policy.
lt is hereby expressly stipulated and declared that it shall be a condition

precedent to any right of action or suit upon this Policy that the award
by such arbitrator, arbitrators or umpire of the amount of the loss or
damage shall be first obtained.
280
12. Every notice and other communication to the Company required by

these conditions must be written or printed.
13. This Policy covers Riot, Strike, Malicious and Terrorist Damage as
under:-
I. Loss of or visible physical damage by external violent means to

the property insured directly caused by:
1. The act of any person taking part together with others in

any disturbance of the public peace (whether in connection
with a strike or lock-out or not) not being an occurrence
mentioned under exclusions 6(a) and (b) of Fire Policy C.
2. The action of any lawfully constituted authority in

suppressing or attempting to suppress any such
disturbance or in minimising the consequence of any such
disturbance.
3. The willful act of` any striker or locked-out worker done in

furtherance of strike or in resistance to a lock-out resulting
in visible physical damage by external violent means.
4. The action of` any lawfully constituted authority in

preventing or attempting to prevent any such act or in
minimising the consequences of such act.
5. Any malicious act but excluding any omission of any kind

of any person whether or not such act is committed in the
course of a disturbance of public peace) provided that the
Company shall not be liable for any loss or damage arising
out of or in the course of burglary, housebreaking, theft or
larceny or any attempt by any person taking part therein.
II. Loss of or Damage to the property insured by explosion or

otherwise directly caused by
1) An act of terrorism committed by a person or persons

acting on behalf of or in connection with any organization.
2) The action of any lawfully constituted authority in

suppressing or attempting to suppress any such act of
terrorism or in minimising the consequences thereof.
281
For the purpose of this Clause, "Terrorism" shall mean the use of violence for
political ends and shall include any use of violence for the purpose of putting
the public or any section of the public in fear.
This insurance does not cover :
a. Loss or damage resulting from total or partial cessation of work or

the retarding or interruption or cessation of any process or operation
or omission of any kind other than that arising directly from
destruction of or damage to the premises or at the property therein
of the insured caused by the perils insured against under this policy.
b. Loss or damage occasioned by permanent or temporary

dispossession resulting from confiscation, commandeering or
requisition by any lawfully constituted authority.
c. Loss or damage occasioned by permanent or temporary

dispossession of property insured in this policy resulting from its
unlawful occupation by any person or prevention of access to the
same.
PROVIDED nevertheless that the Company is not relieved under (b)

or (c) above of any liability to the Insured in respect of physical
damage to the property insured occurring before dispossession or
during temporary dispossession.
Additional Warranties:
1. Warranted that minimum (ire fighting appliances, as detailed below, are

provided on the ship in the hold or tank adjoining the engine room while
cutting operations are in progress in the engine room.
6 Nos. Water/Sand buckets of 9 litres capacity each.
4 Nos. Foam type extinguishers of 9 litres capacity each.
Total water storage of minimum 1000 litres.
2. Warranted that all pumpable/drainable oils are removed before gas

cutting operations are commenced,
3. Warranted that gas cutting operations shall not commence in the cabin
and cabin area before removal of all wooden and combustible material
therein to shore.
282
SECTION 10
UNDERWRITING OF OIL AND ENERGY RISKS

(OFFSHORE ENERGY INSURANCE)
Underwriting of Oil and Energy risks should be with the concurrence of the
Reinsurance Department and as per the terms and conditions given by the RI
department on a case to case basis.
This Section gives only a brief description of the coverage and the various
policies/terms/conditions currently available.
What is Offshore Energy Insurance?
Insurance covering physical damage and liability exposures of a variety of

energy companies
Production Platforms
Mobile Drilling units
The risks covered
Construction
Physical Damage
Removal of Wreck
Control of Well
Liability
What are the possible losses?
Insured hull value

Removal of wreck
Sue and Labour
Business interruption
Liability
Pollution- responsibility of the well operator
283
Offshore construction
It is the installation of structures and facilities in a marine environment, usually

for the production and transmission of electricity, oil, gas and other resources.
Construction in the offshore environment is a difficult and dangerous activity.

Construction and pre-commissioning is typically performed as much as possible
on land or inshore areas.
The various stages of Offshore Construction are:
Fabrication: This normally takes place in a yard on shore and involves

fabrication of such massive structures as platforms/pipelines.
Load Out/Transportation: the fabricated items are loaded on to a barge which

is specially built for the purpose. The barge is then towed to Offshore Site
where it is off loaded and installed.
Installation: The process by which the structure is installed. The platforms are
mounted on top of piles whilst pipelines are laid using special pipe laying
barges.
Maintenance: Once the structures are erected the contractor has an obligation
to maintain the structure.
The policy covering Offshore Construction Project is generally as per the terms
and conditions listed in WELCAR 2011
BRIEF SUMMARY OF THE WELCAR POLICY
COVERAGE
Physical Damage Cover

All Risks of physical loss or damage
Deliberate Damage from actions of Government
Political Perils
Expenditure
General Average & Salvage Charges
Sue & Labour
Removal of Wreck
284
General Third Party Liability
Offshore Liability Risk

Breach of common law duty of care
Loss or damage to property of other parties
Loss of life and personal injury
Product Liability
Professional indemnity
Impairment of the environment
Completed Operations
Directors and Officers Liability
Liabilities arising out of Specific contracts
Charterers Liability
Towage Liabilities
Contract of carriage of goods by Sea
Sale & Purchase Contract
Performance Bond
Liabilities arising under Specific Law, Statue or under License
Employers Liability
Removal of Wreckage or Debris
Clean up & containment
Control of Well
Evacuation
London Comprehensive General Liability
Insuring Agreements
Exclusions
Definitions
Specific Conditions
Declarations
Endorsement to Exclusions
285
INFORMATION SHEET (to be filled and sent to R/I department)

1 DESCRIPTION OF THE PROJECT
2 NAME OF THE PRINCIPAL
3 NAME OF MAJOR CONTRACTOR/SUB CONTRACTORS
LOSS EXPERIENCE OF CONTRACTORS/SUB CONTRACTORS FOR LAST 5
4 YEARS
5 ESTIMATED CONTRACT VALUE
6 LIMIT OF INDEMNITY FOR THIRD PARTY LIABILITY
SPECIFICATION/LOCATION OF THE PROJECT INCLUDING TECHNICAL
7 DETAILS
8 YARD AT WHICH THE ONSHORE FABRICATION WOULD TAKE PLACE
THE MODE IN WHICH THE ITEM WOULD BE TRANSPORTED TO
9 OFFSHORE SITE
10 THE METHOD OF ERECTION
11 BAR CHART WITH SCHEDULE OF ACTIVITIES
BUILD OF VALUE ITEM WISE WITH VARIOUS STAGES AS UNDER:(for
12 each activity separately)
i. At fabrication
ii. At load out
iii. At installation
iv. At maintenance
13 DETAILS OF SURROUNDING PROPERTY WITH VALUES
RISK MANAGEMENT/QUALITY ASSURANCE/QUALITY CONTROL
14 PROCEDURES FOR THE PROJECT
15 ANY OTHER INFORMATION RELEVANT TO THE PROJECT
WHETHER ADDITIONAL COVERS LIKE STANDBY/FORWARDING
16 CHARGES/TEST LEAK SEARCH COST REQUIRED
OFFSHORE OPERATIONAL POLICY
The cover is required when the facilities become operational and normally a
package cover is granted.
STANDARD CLAUSES
Oil and Gas Drilling Tools Floater Form

(All Risks) – For Onshore/Land Rigs
Offshore Rig is covered under London Standard Drilling Barge form.
286
BRIEF SUMMARY OF OIL AND GAS DRILLING TOOLS FLOATER FORM

(ALL RISKS)
PROPERTY INSURED
Land Rig or Mobile Rig (drilling rig to bore holes)

Down-hole Equipment (hydraulic oil recovery system)
PERILS NOT COVERED
Wear and Tear, Mechanical or Electrical Breakdown or failure, latent

defect, corrosion, rust etc.
Infidelity or any dishonest act on the part of the Assured
Any repairing, adjusting, servicing or maintenance
Negligence on the part of the insured
War related perils
Nuclear reaction or nuclear radiation or nuclear contamination
CONDITIONS
Automatic Reinstatement
Limit of Liability
Debris Removal – 25% of the TSI
Sue and Labour – 25% of the TSI
BRIEF SUMMARY OF THE LONDON STANDARD DRILLING BARGE

FORM
1. ALL RISKS
This insurance covers the hull and machinery of the drilling barge(s), including
all their equipment, tools, machinery, caissons, lifting cks, materials, supplies,
appurtenances, drilling rigs and equipment, derricks, drill stem, casing and
tubing while aboard the drilling barges and/or vessels moored alongside or in
the vicinity thereof and used in connection therewith (but not such barges
and/or vessels themselves), and including drill stem in the well being drilled,
and all such property as scheduled herein, owned by or in the care, custody or
control of the Assured.
2. Scope of Cover
Subject to its terms, conditions and exclusions this insurance is against all risk
of direct physical loss of or damage to the property insured, provided such loss
or damage has not resulted from want of due diligence by the Assured, the
Owners or Managers of the property insured, or any of them. Also covers
287
INFORMATION SHEET TO BE SENT TO R/I

1 NAME OF PRINCIPAL
2 EXPERIENCE OF THE PRINCIPAL
3 ITEMISED INVENTORY OF ASSETS TO BE INSURED WITH VALUES-
BREAKUP BETWEEN ONSHORE/OFFSHORE AND BREAK UP INTO TYPE
(rigs/platforms/pipelines etc)
4 DETAILS OF CONSTRUCTION OF THE STRUCTURES VIZ WHO BUILT
THEM, WHEN WAS IT BUILT
5 TECHNICAL DETAILS SUCH A SWATER DEPTH , SEISMOLOGICAL
DETAILS ETC
6 QA/QC PROCEDURE FOLLOWED BY PRINCIPAL
7 PERIOD OF INSURANCE
8 LOSS EXPERIENCE WITH DETAILS OF CLAIMS
9 NAME OF CONTRACTOR
10 ASSET TO BE INSURED
11 VALUE OF ASSETS TO BE INSURED
12 TECHNICAL DETAILS OF ASSETS
i. type of rig
ii. When built
iii. Yard built
iv. Specifications of rig
v. details of class
vi. Has it been refurbished since commissioning, if so details
vii. Area of operation
viii. Loss experience with details
ix. Details of charter-to whom, how long
x. Profile of contractor-when established, experience
xi. QA/QC procedures
xii. Risk management procedures
288
OPERATIONAL POLICIES OF OFFSHORE ASSETS:(OPERATORS EXTRA

EXPENSES) (Cannot be given on stand alone basis)
Section I – All Properties of Offshore Assets i.e. Platforms, Process Complexes,

Pipelines, Cargos stored, Support Vessels etc.
Section II – Control of Wells:
Underground Blowout (uncontrolled release of oil/gas during drilling)
When there is uncontrolled flow of gas, oil or other well fluid from one
reservoir to another via the wellbore. Till 1986, basic control of well
exposure covered under multiplicity of coverage form.
Definitions contentious e.g continuous flow of drilling fluid
Coverage for ‗kick‘not specifically excluded. (kick means entry of

water/oil etc into the well bore during drilling)
Revised wording introduced as EED 8/86.
There are three specific insuring agreements
Section A - Control of Well (Well control is the technique used

in oil and gas operations such as drilling, well workover,
and well completions to maintaining the fluid column
hydrostatic pressure and formation pressure to
prevent influx of formation fluids into the wellbore)
Section B - Redrilling / Extra Expenses
Section C - Seepage & Pollution, Clean-up & Containment
Coverage / Expenses
Policy will indemnify actual costs or expenses incurred in regaining or

attempt to regain control of any wells insured including any other well
which becomes out of control as a direct result of loss of control of
insured well and also costs of extinguishing or attempting to extinguish
fire from such wells.
Additional Coverage –
 Making Wells Safe
 Underground Control of Well
 Care, Custody and Control
289

1 TYPE OF WELLS TO BE DRILLED (exploration/development/producing)
2 NO OF WELLS CATEGORY WISE
3 DEPTH BAND IN FOLLOWING BAND
a. Producing
Band (ft) No of wells
0-5000
5001-10000
10001-15001
>15001
b. Exploratory
0-5000
5001-10000
10001-15001
>15001
c. Development
0-5000
5001-10000
10001-15001
>15001
4 LOCATION WHERE WELLS WILL BE/ARE DRILLED
5 PREVIOUS INCIDENCE OF BLOW OUT AT THE AREA
6 LOSS EXPERIENCE
7 LIMIT OF INDEMNITY REQUIRED
8 DETAILS OF AUTHORISATION FOR EXPENDITURE
Section III : Third Party Liability (cannot be given on a stand alone basis. Cover
should be given only when accompanied by cover for physical damage)
These are underwritten on either ‗occurrence‘ basis or ‗claims made basis‘. TPL
covers are required both during operation and construction. The cover is for
personal injury/property damage arising out of operations.

1 LIMIT OF INDEMNITY REQUIRED
2 LOCATION TO BE COVERED
3 DETAILS OF SURROUNDING PROPERTY WITH VALUES
4 LOSS EXPERIENCE
290
Section IV : Sabotage & Terrorism
Section V : Business Interruption
This covers Loss of profits following a loss under ‗physical damage‘ or ‗control
of well‘ section of the policy.
The standard wording used are Loss of Production Income wordings-

Production Loss sustained (JR 2005/003A) form

1 SUM INSURED
2 PERIOD OF INSURANCE
3 JUSTIFICATION OF SUM INSURED
4 LATEST ANNUAL REPORT
HISTORICAL DATA-DETAILS OF PRODUCTION LAST 3 YEARS, PROFITS
5 FOR LAST 3 YEARS
ESTIMATED PRODUCTION/PROFITS DURING THE PERIOD OF
6 INSURANCE
DETAILS INCLUDING COPY OF SALES CONTRACT (SALES OF GAS/OIL).
7 IS IT MINIMUM TAKE BASIS ETC
8 INDEMNITY PERIOD
LOSS OF HIRE
This cover is taken by contractors when they let rigs out on charter to
operators.
This is given along with physical damage cover. However it is also becoming
common to cover this on stand alone basis.
In the current market conditions insurers required a waiting period of at least

45 days before the cover responds
The cover responds only when a physical loss or damage occurs resulting in
vessel coming off charter.
The following information is required to provide quotation:
Details of vessels to be covered

Details of charter
Area of operation.
291
SECTION 11
PORT PACKAGE INSURANCE
Underwriting of Port Package policy should be with the concurrence of the

Reinsurance Department and as per the terms and conditions given by the RI
department on a case to case basis.
This Section gives only a brief description of the coverage and the various
policies/terms/conditions currently available.
Port authorities and terminal operators face a combination of operational,

commercial and environmental risks. The risks range from damage to vessels
to potential loss caused by port blockage and environmental pollution as well
as resultant liability caused by oil spills. Port Package is a comprehensive
package of insurance products designed to cope with these risks.
The policy typically covers the following:
Physical damage to property by fire and other natural perils like storm,
cyclone, tempest, hurricane, etc. Property includes buildings, wharfs and
docks, berths, quays, jetties, dolphins, machinery, handling equipment,
contents etc.
Damage to vessels and other floating objects including all risks involved
with dredging operations.
Damage to surrounding property/cargo handling equipment due to
collapse of cranes or winches; or explosion of boilers; or flying
fragments e.g. from welding sets etc.
Business Interruption consequent upon damage due to any peril insured
under the policy.
Port Blockage
Wreck removal, or removal of debris, of property insured being
destroyed or damaged by a peril insured against.
Fines and duties
Investigation, defence and mitigation costs.
Disposal, quarantine and disinfection costs.
Architects‘, surveyors‘ and consulting engineers‘ fees necessarily
incurred in the reinstatement of the property, consequent upon its
destruction and damage
Loss or damage to equipment including loss due to strikes, riots and
terrorism
292
Liabilities for loss or damage to cargo, customer‘s equipment and ships

Liabilities arising from errors and omissions including delay and
unauthorised delivery.
Third party liabilities including collision/impact and sudden accidental
pollution
Legal costs incurred in defence of any claim arising from accident
insured against provided, prior written consent taken from underwriters
The following risks can be covered on payment of additional premium:
Earthquake and volcanic eruptions which are excluded under the ITC -
Hulls Port Risks 20/07/87 may be additionally covered.
Cover for vessels and crafts may be extended to include those perils
which are covered under Institute Additional Perils Clause
Additional coverage provided for demolition as well as increased costs
for re-construction in respect of large cranes and lifting gears
Additional cover for business interruption following blockage of berth
due to accidental sinking or stranding of a vessel, or due to any other
accident covered
Extension can also be sought for loss of rent, should the assured lose a
tenant as a result of loss or damage to building
Ports Liabilities cover can be extended to cover Fines and Duties,
Wrongful Delivery of Cargo and Infringement of personal rights
Fines and Duties Extension covers various fines and penalties imposed
on the insured following an unintentional breach of any rules and
regulations and /or any statutory provisions. Fines can be in the form of
custom duties , sales tax, excise, VAT etc or confiscation of property by
an authority.
Policy Exclusions
Intentional act of the assured or willful misconduct of the assured

Inherent vice or defective design
Normal wear & tear
Earthquake, including Tsunami, seaquake and/or volcanic eruptions
(extensions can be granted on payment of additional premium)
Non accident pollution
Acts of war, civil war, mines, torpedoes except whilst waterborne. Cover
for war perils can be procured for vessels
293
Strike, civil commotion

Nuclear risks
Radioactive contamination
Damage caused by chemical, biological, biochemical or electromagnetic
weapon
Claims arising out of Asbestos and/or related diseases
Order, demand, appropriation, seizure by any Government Authority
Compliance with all statutory regulations related to carriage, handling
and storage of dangerous cargo
Fines and Duties (could be covered by extension)
Road Vehicle Liabilities
Employer‘s Liabilities
NOTE: The above list is only indicative and policy wordings may incorporate
relevant exclusions under the respective sections as may necessary. The actual
terms and conditions and exclusions of the policy are agreed by the reinsurers
after receiving a completely filled proposal form.
PORT AUTHORITY QUESTIONNAIRE/PROPOSAL
1. Name and full address (including post code or zip code and latitude and
longitude) of Port Authority and other port locations to be insured.
2. TYPE OF PORT:
Are you a landlord port ? Yes  No. 

Or an operational Port ? Yes  No. 
If you are both a land lord and operational port,

please provide the percentage split %
based on revenue:- Percentage of revenue as a landlord
%
Percentage of operational revenue

%
For any Cargo Handling operations performed by you please complete
the relevant parts of the Terminal Operators / other Operations
Questionnaire.
294
3. FACILITIES: Please enter the number of facilities available, if none

enter 
Container terminals Dry Bulk Terminals
Ro-Ro terminals Gas Terminals
Container Depots Oil Terminals
Warehouses Passenger Terminals
Temperature Controlled Dry Docks

Warehouse
Break bulk / General Cargo Ship Repair

Terminal
Grain Terminals Yacht Marina
Others (Please specify)
4. SERVICES: Services provided by you, please answer ―Y‖ performed by

you, ―S‖ performed by your subcontractor and ―N‖ not provided.
Stevedoring Dredging
Marine Terminal Operator Tugs
Navigational information and Salvage / ship removal

aids
Marine Traffic Control Bunkering
Maintained Water Depths Dumpsites / landfill
Buoys and lighting Waste disposal
Pilotage Diving
Helicopter landing site / Advice to other

airport operators
Warehousing Security (e.g. Police)
Temperature Controlled Emergency (e.g. Fire

Warehousing Services)
Other (Please specify)
295
Do you provide any other facilities/services e.g. car parks, ships, oil rig
facilities etc ?
If yes, please give details;-
Please attach a copy of your latest annual report / handbook and a map
of the port, its boundaries and confines.
5. CONTRACTS / INDEMNITIES
a) Contracts with Customers (for example shipping lines):
Do you have any of the following contracts? And if so please

indicate the extent of any liability and / or indemnities (please tick
 the relevant box):-
Limited Unlimited Others

Liability Liability No Liability Please
for negligence for negligence Specify
Yes No Yes No Yes No Yes No
No of Contracts
Standard Contracts
Individual user
Agreements
Tariff/Act/bye-laws
b) Other Contracts / Lease / Licenses:
Do you lease / licenses contain indemnities in

your favour? Yes  No.
Do these contracts / leases / licenses have

indemnities covering your own negligence ? Yes  No.
Have you given any indemnities to another

party under any agreement? Yes  No.
If yes, please give details.
c) Tenants and / or Sub-contractors:
Is there a requirement in your Contract with

tenants and / or sub-contractors that they
have adequate liability and property insurance? Yes  No.
296
If yes, what is the minimum limit that you require? US $
Do you check annually that all tenants and / or

sub-contractors maintain and renew their Insurance? Yes  No.
Note:There is a policy requirement that your Tenants and Sub-

contractors purchase and maintain adequate liability and property
insurance.
6. VOLUMES: Please advise annual throughputs broken down into

TEU‟s handled, breakbulk and bulk (in tonnes), cars (as units or
tonnes) and any other cargoes.
Estimated
Last Year This Year
Next Year
TEUs
Breakbulk (Tonnes)
Wet Bulk (Tonnes)
Cars
Other e.g. passengers
(please specify)
Estimated
Last Year This Year
Next Year
What is your annual
revenue ?
What % of revenue is
derived from cargo
handling ?
How many vessels calls
per annum ? Please
provide figures broken
down into size of vessel
a) Upto 5,000 GRT
b) 5000 – 15,000 GRT
c) Over 15,000 GRT
297
7. EQUIPMENT: Please provide the aggregate value for the current year
and next year and attach a schedule showing against each item,
description, value and age.
Are your declared values based on:

New replacement value ? Yes  No.
Market Value ? Yes  No.
Depreciated (book) value? Yes  No.
8. PROPERTY – Please attach a schedule with description, values, age,

location including details of construction and details of the extinguishing
appliances / sprinklers for the large items.
9. HULL P & I - Please attach a vessel schedule with name, type,

use, age, GRT, value and horse power)for tugs), plus number of crew.
10. BUSINESS INTERRUPTION
a) Do you require cover for increased

cost of working or loss of revenue ? Yes  No.
b) What cover is required ?

Physical loss / damage of handling equipment Yes  No.
Physical loss / damage to property Yes  No.
Or Port blockage of Operations ? Yes  No.
c) If Port blockage is required, do you require

cover for :-
Blockage of Berths Yes  No.
Approach channels and locks Yes  No.
Or land entrances ? Yes  No.
d) Is your electricity supply generated by yourself ?

Or through external means
(please tick  the relevant box) Yes  No.
Do you have a back up / emergency generator Yes  No.
e) Are there alternative / reserve equipment /

means of access available to mitigate
any claim ? Yes  No.
If yes, please details.
Please attach a map of the port to illustrate your answer.
298
11. LOSS PREVENTION / RISK MANAGEMENT – Please attach details

of :-
a) Risk control / loss control management, and
b) Pollution control / environmental impairment control, and
c) Property and equipment maintenance and staff training

Programmes.
d) Security precautions (including)

24 hour security guards ? Yes  No.
All buildings / perimeter fences / gates
alarmed ? Yes  No.
Close Circuit TV ? Yes  No.
Continual documentation security checks ? Yes  No.
Other ? Please attach details. Yes  No.
e) Independent surveys of facilities / equipment during the last

twelve months.
Are there any revisions to the loss prevention/

risk management measures in a) to d) above
envisaged / planned during the policy period ? Yes  No.
If yes, attach details.
12. CLAIMS HISTORY - Please attach full claims history (both paid and
outstanding and any related fees or expenses including legal fees) for
the last 5 complete years net of any deductible and advise of any
deductible applicable. Please also attach details of any existing
litigation.
Signed Date Designation
IMPORTANT
This questionnaire is to be completed and signed by the Assured and will form
part of the Port Authority Policy.
299
The premium charged and the conditions of this Policy are based upon the
information provided in this questionnaire, any operations and / or physical
changes in the nature of the Assured‘s Operations during the policy period
which materially changes or alters in any way the information contained in this
questionnaire must immediately be advised to Underwriters. Any change
advised will be assessed by Underwriters to enable them to decide whether
they are prepared to continue to provide coverage and at what terms. Failure
to comply with this requirement could affect the validity of the Policy.
ASSURED TO NOTE:
The construction of this Policy shall be governed by English Law and

Practice. Any dispute between Underwriters and the Assured as to
the meaning of this Policy shall be resolved by Arbitration in London
strictly in accordance with the terms of the Arbitration clause
contained the policy.
300
SECTION 12
UNDERWRITING OF WAR AND SRCC RISKS
The following are the salient features for issuing insurance cover against War
and/or SRCC:
War/SRCC perils cannot be covered on a stand-alone basis. The

H&M policy covering marine perils has to be in force.
War insurance can be granted to Ocean Going Vessels and not to

inland vessel/sailing vessel/fishing vessel/inland dredgers. For these
vessels only SRCC cover can be granted.
Insurance of London War Risk Scheme is to be done through the

Reinsurance Dept., H.O.
The currency for payment of premium should be the same both for
H&M policies and War/SRCC policy.
The sum insured under War/SRCC Risk Insurance should be the

sum total of the sum insured under Hull & Machinery/Freight/
Disbursements or Increased Value insurances.
Stamp duty is not applicable to war policies.
The instalment facility granted under H&M policy is applicable to

War/Strikes policies also.
War and Strikes cover can be granted to laid up vessels whilst

awaiting breakup within the sheltered and protected waters of any
port in India.
1. STANDARD CLAUSES
All marine hull policies covering War/SRCC risks should be subject to any of
the following clauses. Any other clause can be incorporated only with the
A. Scheme Of War Risks Insurance of Marine Hulls (2005) given by

GIC Of India.
B. Institute War And Strikes Clauses Hulls – Time Dt 1.10.83
C. Institute War And Strikes Clauses Hulls – Voyage Dt 1.10.83
D. Institute War And Strikes Clauses Freight – Time Dt 1.10.83
301
E. Institute War And Strikes Clauses Freight – Voyage Dt 1.10.83

F. Institute Strikes Clauses Builders Risk Dt 1.6.88
G. Institute War And Strikes Clauses Yachts Dt 1.11.85
H. Strike clauses Hulls Time.
NOTE: clauses B to G are applicable for all policies where war risk
insurance is granted as per London War Risk scheme.
2. SCHEME OF WAR RISKS INSURANCE OF MARINE HULLS (2005)

(GIC Scheme)
This Scheme provides for insurance of Marine Hulls against War Risks by the
Indian Insurance Companies on the understanding that such insurance satisfy
the following conditions and may be wholly reinsured by the companies with
GIC of India, (Indian Reinsurer), on payment of premium received by the
companies:
1) This Scheme, which is Voluntary, is designed for insurance of

Marine Hulls against War Risks, applies to:-
i) To all ships registered or deemed to have been registered

under Part V of the Merchant Shipping Act, 1958,
ii) The ship shall be continuously registered in India - Indian
Flag, Ownership or Management.
iii) Ships otherwise qualifying for registration as above, which
are under construction or are purchased from foreign
owners from the time of launching or from the time the
ships are at risk of Indian owners as appropriate
iv) Mechanized sailing vessels.
2) The cover will be granted by any of the Indian Insurers licensed

by the IRDA against war and allied risks mentioned in the
Scheme and each risk will be fully reinsured with the GIC Re at
the original rate of premium.
3) The cover shall be issued for one year period and should be
opted at the inception of a Vessel‘s H&M cover.
4) The premium shall be collected by the Insurers quarterly in

advance on 1st July, 1st October, 1st January and 1st April.
302
5) Where the risk attaches on any date other than the dates
specified above, premium for the part of the calendar quarter
shall be calculated pro-rata for each month or part thereof.
6) The same basis shall be adopted for alterations in Sum Insured.
GIC Rates
Fleet size Rate

Upto 10 vessels 0.05%
11 to <= 20 vessels 0.04%
21 and more 0.03%
GIC will, however, have the option:
(i) a) To direct cancellation of the policy by the Insurer at any time on

giving 7 days notice.
b) To revise the premium at any time even during the course of the
year.
c) To decide such higher rate of premium as may be considered

appropriate to be applied for insurance of Vessels which although
eligible for insurance Under the Scheme, were not so insured but
are proposed for insurance effective from a later date.
(ii) Not withstanding the direction by the GIC Re referred to in the sub-
paragraph (i) (a) above, the Insurer may maintain the insurance in case
the assured agrees prior to the expiry of the said period of 7 days,
at the new rate of premium and/or conditions and/or warranties.
WARRANTIES, CONDITIONS AND EXCEPTIONS
The cover under this Scheme shall be subject to the following warranties,
conditions, exceptions and limitations:-
(A) The Assured warrant that the ship shall be continuously registered in
India - Indian Flag, Ownership or Management.
(B) The Assured further warrant
(i) that the ship shall not engage in any trade/voyage prohibited by
the Government of India
303
For all purposes of the Scheme, the Government of India shall have the
sole right of determining what is and what is not a safe port/place or
place of safety and the date which is to be deemed as that of
declaration of war or outbreak of hostilities.
Sale of Vessel
The Assured shall cease to be insured from the date of any transfer of the ship
otherwise than by way of mortgage or a transfer of the management of the
ship by the Assured or his firm unless with the written consent of the insurer.
Assignment
No assignment under this Scheme so as to pass beneficial interest therein shall

have any effect in transferring or assigning such interest unless the same shall
have been endorsed on the policy by the Assured and approved and registered
by the Insurer.
Cancellation Rules
(A) This insurance may be cancelled by either the Insurer or the Assured
giving 7 days notice (such cancellation becoming effective on the expiry
of 7 days from midnight of the day on which notice of cancellation is
issued by or to the Insurer). The Insurer agrees however to reinstate
this insurance subject to agreement between the Insurer and the
Assured prior to the expiry of such notice of cancellation as to new rate
of premium and/or condition and/or warranties.
(B) In the event of cancellation by notice of this insurance either by reason

of the operation of paragraph (A) above or of the sale of the ship hereby
insured, pro-rata monthly return of premium shall be payable to the
Assured.
War Risks Trading Warranty under War Risks Insurance Scheme
This coverage shall extend worldwide, but in the event of a Vessel or craft
insured hereunder sailing for, deviating towards, or being within the Territorial
Waters of any of the countries or places described in the Current Exclusions as
set out below (including any post area that at the date of this notice
constitutes part of such a country or places however it may be described )
additional premium shall be paid at the discretion of the Insurers hereon.
304
Information of such voyage or deviation shall be given to Insurers as soon as

practicable. In the event of the Insured not requiring a continuation of
coverage for a Vessel proceeding into or remaining within an excluded area, he
shall advise Insurers hereon before the commencement of such voyage,
deviation or period.
Current Exclusions:
1. Trading to Iraq Ports subject to Additional Premium.
2. Trading to Pakistan Waters – Cover not exceeding 7 days in total subject

to prior approval.
3. War and Strikes cover as per Institute clauses (London market)
Cover for War/Strikes under Institute clauses can be granted for any
flag, not necessarily an Indian flag.
The war/Strikes cover is granted as an extension to the H&M cover.
The rates would be provided by the reinsurance department.
The Institute clauses are available separately for Time policy/Voyage

policy/Yacht policy/Builders Risk policy/Freight (Time/Voyage) policy.
Depending on the type of H&M cover granted to the vessel, the
relevant war clause has to be attached for the War extension.
The trading warranties attached to the Institute War clauses are

subject to certain excluded areas which vary from time to time as
would be provided by the reinsurance department.
Cover in respect of the risks of war, etc, may be cancelled by either the
Underwriters or the Assured giving 7 days notice (such cancellation
becoming effective on the expiry of 7 days from midnight of the day on
which notice of cancellation is issued by or to the underwriters). The
Underwriters agree however to reinstate cover subject to agreement
between the Underwriters and the Assured prior to the expiry of such
notice of cancellation as to new rate of premium and /or conditions
and /or warranties.
In the event either of cancellation by notice or of automatic

termination of the insurance, of the sale of the Vessel, pro rata daily
net return of premium shall be payable to the Assured.
Whether or not such notice of cancellation has been given cover in

respect of the risks of war, etc, shall TERMINATE AUTOMATICALLY in
the following circumstances
305
1. Upon the occurrence of any hostile detonation of any weapon of

war employing atomic or nuclear fission and /or fusion or other like
reaction or radioactive force or matter wheresoever‘s or
whensoever‘s such detonation may occur, whether or not the
insured vessel may be involved and this insurance excludes loss
damage liability or expense arising from such occurrence.
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
3. In the event the vessel is requisitioned.
4. Cover granted as per Strike clauses Hulls Time (SRCC cover)
Applicable only to Inland vessels/inland dredgers/fishing

vessels/Sailing vessels/Jetties (with or without cranes), fixed
pontoons/pontoon-jetties, wharfs etc
SRCC cover is an extension to a H&M policy and a separate policy

cannot be issued.
The SRCC rates vary depending on the type of H&M cover as follows:
a) For restricted conditions : 0.05% p.a. OR 0.125% per quarter

OR part thereof
b) For Wider conditions : 0.10% p.a. OR 0.025% per quarter

or part thereof
Mid-Term Cover : It is permissible to grant mid-term cover

against SRCC risks during the currency of the policy, subject to the
following:
a. Insurers must receive specific advice from Insureds accompanied

by payment of the required additional premium in cash or by
draft.
b. Premium for mid-term cover shall not be adjusted against cash

deposit or debited to Bank Guarantees.
c. Additional premium shall be charged at short-periods rates.
d. Cover shall commence 15 days after the receipt of premium by

the Divisional/Branch Offices granting the cover and Insurers
306
must ensure that the effective date of cover (i.e. 15 days after
the date of receipt of premium) is clearly indicated in the
endorsement.
Cancellation of Cover by the Insurers: If the Insurers cancel the

SRCC cover by giving due Notice of Cancellation, return of premium
shall be allowed on pro-rata daily basis for the unexpired period.
Cancellation of Cover by the Assured: If the cover is cancelled

by the Assured, return of premium shall be allowed for each
uncommenced quarter.
5. ASSIGNMENT
War Policies are also not freely assignable. Hence a dated notice of such
Agreed Bank Clause shall not be used with any War policy. War policies shall

towage warranty, class warranty etc the insurer should be intimated in advance
and if the insurer agrees, additional premium if any has to be collected before
the commencement of the breach and suitable endorsement issued.
the War rate remains the same.
9. RENEWAL
The vessel has to be rated afresh for every renewal.
307
SECTION 13
UNDERWRITING OF VOYAGE INSURANCE
This section deals with the insurance of a vessel for a specific voyage only and
not for a period. The other sections in the manual viz Section 1/2/3/4 deals
with the insurance of a vessel for a specific period.
TYPES OF VOYAGES
Specific voyage
Delivery voyage
Funeral voyage
Freight at risk when vessel is on voyage.
1. STANDARD CLAUSES
All marine hull voyage policies should be subject to any of the following
clauses. Any other clause can be incorporated only with the specific approval
of the Head Office.
Institute Voyage Clause-Hulls, Total Loss, General Average and 3/4th

Collision Liability (Including Salvage, Salvage Charges and Sue and
Labour) dated 01.10.83
Institute Voyage Clauses dt 1.10.83
Institute Voyage Clauses (Total Loss only) dt 1.10.83
Freight Insurance Policies
Institute Voyage Clauses Freight dt 1.8.89
There are no specific standard trading warranties for a voyage policy.
The policy should clearly specify the name of the ports from where the voyage
commences and where the voyage ends.
NOTE: Voyages involving to or from ports and places prohibited by

the Institute Warranties dt 1.7.76 have to necessarily be referred to
the Head Office.
308
It is mandatory that an Ocean Going Vessel should be classed with a

classification society which is a member of the IACS
The following classification societies are members of the IACS.
Lloyd‘s Register : 100A1 or B.S.

American Bureau of Shipping :  A1
Bureau Veritas : 1 3/3E 
China Classification Society : * CSA
Germanischer Lloyd : 100 A 5
Korean Register of Shipping : KRS 1
Maritime Register of Shipping : KM *
Nippon Kaiji Kyokai : NS *
Norske Veritas : 1A1
Registro Italiano : * 100-A-1.1
Indian Register of Shipping : SU
Registrar of Shipping USSR
Polish Registrar of Shipping
(NOTE:  in the above symbols denotes MALTESE CROSS)
is accepted and rated on the basis that the Ship is fully classed:
―Warranted, vessel classed by ……..( name of Classification Society) and

class maintained throughout the currency of this policy‖
As regards vessels, other than ocean going vessel, viz inland/fishing etc class is
optional.
NOTE: Specific approval is to be obtained from the Head Office if the vessel is
classed with a society not mentioned above.
4. ISM WARRANTY
It is mandatory that all Ocean Going Vessels should have ISM code compliance.
Hence all Hull policies covering ocean going vessels should have the following
warranty
309
―Warranted the insured obtain requisite certificates from the concerned

authorities in compliance with the ISM code in respect of all vessels for which
ISM code has been made mandatory effective from 1st July 1998/2002 failing
which the insurance cover granted under the policy shall exclude all liabilities
arising from non-compliance of the ISM code‖.
NOTE: This is not required for vessels other than Ocean Going vessels.
5. DEDUCTIBLE
All policies are subject to a deductible which shall be expressed in amounts and
this deductible should be fixed through out the currency of the policy and does
not change with the change in sum insured during the currency of the policy.
The deductibles are not applicable to Total Loss/Constructive Total Loss claims.

Each and every accident/occurrence)

Exclusions Clause.
7. ASSIGNMENT
not be issued in joint names of the owners and financiers.
Wherever there is deviation or change of voyage or intent of a breach of any

warranty as to, towage or salvage services, the insurer should be intimated in
310
advance and if the insurer agrees, additional premium if any has to be

collected before the commencement of the breach and suitable endorsement
issued.
9. STAMP DUTY
As per the Indian Stamp Act, the insured has to pay the stamp duty. There is
also no refund of stamp duty when the policy is cancelled.
10. RATING GUIDELINES
I) SPECIFIC VOYAGE/DELIVERY VOYAGE:
The voyage rates are generally based on the annual H&M rate which has to be
calculated as per the relevant sections depending on whether the vessel is
ocean going/inland/fishing/sailing/dredgers. The following steps have to be
followed to arrive at the voyage rate.
STEP 1
The annual H&M rate has to be arrived at based on the type of vessel/age of
the vessel/tonnage of the vessel from the relevant matrix as per the relevant
sections.
STEP 2
Calculate the rate for the voyage from the ‗breach of trading warranty‘ table in
the same section.
STEP 3
Double the rate arrived at from Step 2 to get the voyage rate. This rate is
applicable for the condition of insurance as per Institute Voyage Clauses dt
1.10.83.
LOADINGS AND DISCOUNTS

different condition of insurance
311
Conditions of Insurance applied on the applied on the matrix
matrix rate rate
Institute Voyage clauses Hulls dt
1.10.83 with clause 8 amended
5
to include 4/4ths Collision
Liability
Institute Voyage clauses Total
Loss only (including salvage,
20
salvage charges and sue and
labour) dt 1.10.83
Institute Voyage Hulls TL, GA,
3/4ths Collision liability
10
(including Salvage, salvage
charges and sue an labour)
Institute Voyage Hulls TL, GA,
4/ths Collision liability (including
5
sue an labour).
DEDUCTIBLES
1% of the H&M sum insured with a maximum of Rs 50,00,000/-

II) RATES FOR FREIGHT-AT-RISK INSURANCE FOR VOYAGES OF

OCEAN GOING VESSELS
Freight-at-Risk Insurances (including Additional Freight-at-Risk) on Voyages

within the Institute Warranties by Vessels (owned or chartered) insured subject
to IVC (Freight) shall be rated as under:
312
Basic Rate
From Ports and Places in To Ports and places in
(%)
A. West Coast of India/ West Coast of India / 0.060

Lakshadweep / Maldives / Lakshadweep / Maldives /
Pakistan Pakistan
B. East Coast of India / East Coast of India/Andaman 0.06
Andaman and Nicobar and Nicobar
Islands/Bangladesh Islands/Bangladesh
C. Sri Lanka India including Lakshadweep 0.06
and Andaman Nicobar Islands
/ Maldives / Bangladesh / Sri
Lanka / Pakistan
D. West Coast of India/ East Coast of India/Andaman 0.09
Lakshadweep / Maldives/ and Nicobar
Pakistan Islands/Bangladesh
E. Red Sea/Persian Gulf/East Indian Subcontinent 0.12
Coast of Africa not South
of Equator / Burma /
Thailand / Malaysia /
Singapore / Indonesia
F. Places between not West Indian Subcontinent 0.15
of 20° West Longitude
and not East of 180° East
Longitude
G. North and South America Indian Subcontinent 0.21
H. Red Sea/Persian Gulf United Kingdom and Europe 0.15
I. United Kingdom and United Kingdom and Europe 0.12
Europe
J. Australia/New Zealand North America 0.24
K. United Kingdom and North America 0.18
Europe
NOTE: For the purpose of this Section, all Ports on the South Coast of Tamil
Nadu upto and including the Gulf of Mannar, will be treated as Ports on the
West Coast of India
313

different condition of insurance
Institute Voyage clauses

(Freight)Hulls dt 1.8.89 with clause 7
5
amended to include 4/4ths Collision
Liability
Institute Voyage clauses (Freight)

Total Loss only (including salvage,
25
salvage charges and sue and labour)
dt 1.8.89
III) FUNERAL VOYAGE (VOYAGE FROM A PORT TO BREAK UP YARD

OF ANOTHER PORT)
BASIS OF VALUATION
H&M Sum Insured shall be the sum total of
i) Actual Purchase price

ii) 10% of (i)
and
iii) Actual Duty payable
IVC-Hulls,s Total Loss, General Averages and 3/4ths Collision Liability (including
Salvage, Salvage Charges and Sue and Labour) dated 1-10-83 but warranted
no claim whatsoever admissible in respect either of General Average or
Collision Liability, subject to Excess of Rs……(not less than 1% of H&M Sum
Insured) under Clause No.10.
314
1. For voyage undertaken on own power RATE

(a) Upto 250 nautical miles 0.2940%
(b) For every additional 100 nautical
miles (or part thereof over 250 nm 0.059%
2. For Voyage under tow of another Vessel 50% loading on rate
arrived at as per 1 above
3. For Voyage under tow of another vessel 100% loading on rate
with two or more vessels being towed calculated as per 1
above.
4. Voyage from a Foreign Port and coming to
any Indian Port, 50% on the final rate
5. Any Voyage from one Point/Port to another
Point/Port in the Gulf of Kutch shall be 0.15%
6. Voyage of a Vessel not insured on Time
basis from place of sheltered and protected
waters of a Port to Break-up Yard within
the sheltered and protected waters of the
same Port, 0.04%
NOTE: Alang will be treated as Bhavnagar while measuring distance.
11 UNDERWRITING GUIDELINES
The proposal form has to be completely filled and duly signed by the
authorized signatory of the insured
The vessel has to be registered under the MS Act in case of ocean

going vessel/sailing vessel/fishing vessel and as per the Inland vessel
Act in case of inland vessels.
The vessel should be classed and the class warranty to be

mandatorily mentioned in the policy in the case of ocean going
vessel
The vessel should have ISM code certification and the ISM warranty
has to be mandatorily mentioned in the policy in the case of ocean
going vessel.
Deductibles have to be mentioned in the policy
The clauses to be attached have to be clearly mentioned in the policy

and the same have to be attached to the original of the policy.
315
The policy should contain the wording ‗subject to Radioactive

Contamination Exclusion clause dt. and the particular clause has to
be attached to the policy
The policy should contain the wording ‗subject to Chemical,

Biological……clause and the same is to be attached to the policy
The trading warranty has to be clearly mentioned in the policy.
12 PROPOSAL FORM
It is mandatory to collect the completed proposal form duly signed by the

authorized signatory of the insured. A draft proposal form is given below
MARINE HULL PROPOSAL FORM (VOYAGE INSURANCE)

1. NAME OF THE PROPOSER

2. ADDRESS OF THE PROPOSER
TEL./Mobile/Email ID
3. STATE WHETHER THE PROPOSER
IS THE
CHARTERER
4. IF THE PROPOSER IS A NAME OF THE OWNER
TEL/Mobile/Email ID
VESSEL PARTICULARS
5. NAME OF VESSEL
6. FLAG OF VESSEL
7. TYPE OF VESSEL (AS REGISTERED)
8. GROSS REGD. TONNAGE
9. DEAD WEIGHT TONNAGE
(MANDATORY FOR TANKERS AND
BULK CARRIERS)
316
10. BREAK HORSE POWER

(MANDATORY FOR TUGS AND
SUPPLY VESSELS)
11. PLACE WHERE BUILT
12. MATERIAL OF WHICH BUILT
13. IF BUILT OF WOOD STATE
NOT
14. YEAR OF BUILT
15. YEAR PURCHASED
16. PORT OF REGISTRY
17. LLOYDS REGISTER NUMBER
18. BY WHOM, WHERE AND WHEN WAS
THE VESSELS LAST SURVEYED
19. NAME OF THE CLASSIFICATION
SOCIETY (TICK THE RELEVANT
ONE) □ Lloyd‘s Register
□ American Bureau of Shipping
□ Bureau Veritas
□ China Classification Society
□ Germanischer Lloyd
□ Korean Register of Shipping
□ Maritime Register of Shipping
□ Nippon Kaiji Kyokai
□ Norske Veritas
□ Registro Italiano
□ Indian Register of Shipping
20. IF THE VESSEL IS NOT CLASSED
WITH ANY OF THE MENTIONED
CLASSIFICATION SOCIETIES THEN
STATE THE NAME OF THE
CLASSIFICATION SOCIETY WITH
THE SYMBOL
21. IS THE VESSEL ISM CERTIFIED YES/NO
317

22. PROPOSED SUM FOR
INSURANCE
23. CONDITIONS OF INSURANCE □ Institute Voyage Clauses Hulls dt
(TICK THE REQUIREMENT) 1.10.83
□ Institute Voyage clauses Hulls dt
1.10.83 with clause 8 amended to
include 4/4ths Collision Liability
□ Institute Voyage Total Loss only
charges and sue and labour) dt
1.10.83
□ Institute Voyage TL, GA, 3/4ths
an labour)
□ Institute Voyage TL, GA, 4/4ths
an labour)
24. State the port of
commencement of voyage
25. State the port of destination of
voyage
FREIGHT INSURANCE COVER
26. SUM PROPOSED FOR
INSURANCE
27. CONDITIONS OF INSURANCE □ Institute Voyage Clauses (Freight)
(TICK THE REQUIREMENT) dt 1.8.89
□ Institute Voyage Clauses
(Freight)Total loss only dt 1.8.89
WAR AND SRRC COVER
28. DO YOU WANT SRCC COVER? YES/NO
(for inland/sailing/fishing
vessels/inland dredgers)
318
29. DO YOU WANT WAR COVER? YES/NO

(for ocean going vessels)
GENERAL
30. NO OF OCEAN GOING VESSELS

OWNED BY YOU
31. PREMIUM /CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
PARTICULAR VESSEL
32. PREMIUM/CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS

FLEET AS WHOLE

PROPOSER
34. Has any Company or insurer in

c Increased your premium on renewal?
34. Is the vessel at present insured with any other insurer? If so, please
give name of the insurer and brief details of the cover.
DECLARATION
COMPANY LTD.
Date
Place
319

satisfactory.
(SIGNATURE)

reads as follow :


320
SECTION 14
INSURANCE OF JETTIES (WITH OR WITHOUT ·CRANES) FIXED

PONTOONS/PONTOON-JETTIES, WHARVES ETC.
l. SCOPE:
This Section is applicable to all Jetties with or without cranes or other

equipments ,Fixed Pontoons/Pontoon·Jetties, Wharves etc. in River and/or
Canal and/or Sea waters irrespective of value and shall be insured subject to
one of the sets of conditions laid down `in this Section only and cover shall not
be granted subject to any other conditions
II. GENERAL:
a. Minimum Premium :
Minimum Premium of Rs.500/- in respect of any one risk insured under

this Tariff shall be charged.
b. Short Period Cover :
Cover other than on annual basis shall not be granted except in such
cases where the .Short Period Cover is required to coincide with the
accounting year or expiry date of other insurances, in which event pro-
rata annual premium may be charged.
c. Cancellation Returns Only :
The Policy shall be subject to CRO provision but the retained premium
shall not be less than the minimum premium prescribed hereinabove.
d. Survey Certificate:
The Insured must produce a satisfactory survey report once every three
years at their own cost and such surveys are to be conducted by a firm
of Surveyors approved by the concerned Underwriters.
e. Valuation Certificate :
A Valuation Certificate, (obtainable by the Assured at his cost), must be

produced at the inception of cover whereafter the Insured would be at
liberty to increase/decrease the sum insured according to the market
condition.
321
Where the subject matter of insurance has been insured for an amount
less than the appropriate value as determined above, the condition of
Average shall apply.
f. Splitting of Values :
Installations equipped with electrical and/or steam-driven cranes,

boilers etc. may be insured on split value basis, as if separately insured,
for the purpose of determining Total or Constructive Total Loss claims.
g. Collection of Premium:
Full Premium should be charged at the inception of risk and instalment

facility must not be granted.
SCOPE OF COVER AND RATES:
A. Wider Cover: Rate
This insurance is to cover all structural loss or 1.05% p.a.

damage to the Jetty (or Pontoons, Wharves, etc.
as the case may be), cranes and/or boiler fitted
thereon, occasioned by or through, collision with
Vessels or any other floating objects, cyclone,
flood, tidal bore, fire, earthquake, explosion of
the boiler insured under this Policy, including
Salvage Charges in connection with a peril
insured against.
'Warranted free from any loss or damage

occasioned by the sinking of any part or portion
of foundation or through lightning, short-
circuiting, defective wiring, overloading or
hoisting of other gear or failure to maintain the
structure and machinery in thorough and
efficient repair.
Subject to deductible excess of 1/2% of the total

Sum Insured or Rs. 1000/- whichever is higher,
for all claims (other than TL/CTL).
322
B. Limited cover 0.35%p.a
Total and/or Constructive Total Loss of the Jetty

(or Pontoons, Wharves etc. as the case may be),
cranes and/or boiler fitted thereon occasioned by
or through collision with Vessels or any `other
floating objects, cyclone, flood, tidal bore, tire,
earthquake, including Salvage Charges.
Warranted free from any loss or damage

occasioned by sinking of any part or portion of
foundation 0r through lightning, short circuiting,
defective wiring, overloading or hoisting of other
gear or failure to maintain the structure and
machinery in thorough and efficient repair.
Subject to deductible excess of 1/2% of the total

Sum Insured or Rs.1000/- whichever is higher,
for all claims (other than TL/CTL)
C. The risks of SRCC (as per the clause a) 0.10%p.a. [when

wording given in Annexure ‗J‘) may be cover is as per
granted in conjunction with above. III (A)]
b) 0.075%
p.a.[when cover
is as per III (B)]
NOTE: For Jetties located in Sea-waters, 33 1/3% extra over the rates under
(a) & (b) above shall be charged.
323
SECTION 15
UNDERWRITING OF YACHTS AND SPEEDBOATS
A yacht is a sail or motor driven vessel used for racing or recreation.
1. STANDARD CLAUSES
All marine hull policies covering yachts/speedboats should be subject to the

following clauses. Any other clause can be incorporated only with the specific
Institute Yacht Clauses dt 1.11.85

Institute Yacht clause Racing Extension Clause d 1.11.85
Institute Yacht Clause Transit Clause dt 1.11.85
Institute Yachts Clause Personal Effects Clause dt 1.11.85
*Institute Yacht clauses Machinery Damage Extension dt 1.11.85.*
The insurance of yachts should be subject to the following Trading Warranties:
Warranted vessel plying only within the port limits of _______ (name of
Port) with leave to proceed not beyond 12 N.M. from the Prominent
Point of the harbour/port as designated by Port Authorities/Custom
Authorities/Local Authorities.
NOTE: The wordings of the trading warranty can be altered to suit the
requirements of a particular vessel/owner only with the specific approval of the
Head Office.
3. DEDUCTIBLE

324

each and every accident/occurrence)

Exclusions clause..
Hull premium can also be collected in 4 equal instalments . The stamp duty has
to be collected in full along with the first instalment. Service tax has to be
collected with each instalment. When there is a total loss/constructive loss
claim the balance premium becomes immediately due and the same has to be
collected as soon as the insurer is aware of such a claim.
Wherever premium instalment facility is granted, the policy is subject to the

premium instalment clause as per the specimen format attached and the clause
has to be attached to the policy.
The insurer is allowed to collect the instalment premium beyond the due date
provided there are no claims during the period between the due date and the
date of payment. An undertaking to that effect may be collected from the
insured and a suitable endorsement issued.
6. ASSIGNMENT
325
Wherever there is intent of a breach of any warranty viz, navigating and

charter hire warranty, laid up warranty, speed warranty etc the insurer should
be intimated in advance and if the insurer agrees, additional premium if any
has to be collected before the commencement of the breach and suitable
endorsement issued.
Insurance for less than 12 months may be granted by charging 1/8th of the
annual rate per month or part thereof. No instalment facility will be available.
The hull policy can be cancelled by the underwriters at any time subject to 30
days notice to the assured or by mutual agreement between the two parties. In
such case the insured is entitled to a refund of pro rata daily net return of
premium on the premium charged for the in commission and /or laid up period.
In the case of sale of vessel the insurance cancels from the time of sale and a
pro rata daily return of premium calculated on the premium charged for the in
commission and /or laid up period.
6. STAMP DUTY
whenever there is an increase in the sum insured during the currency of the
policy. There is also no refund of stamp duty when the policy is cancelled.

rates)
326
H&M RATE FOR YACHTS used for private pleasure purposes and the
speed limit not exceeding 17 knots.
AGE (IN YEARS)
GRT
<5 YEARS 5 TO 10 10 TO 20 >20
<50 1 1.1 1.35 1.8
50-60 1.04 1.14 1.39 1.84
60-80 1.06 1.16 1.41 1.86
80-90 1.08 1.18 1.43 1.88
90-100 1.1 1.2 1.45 1.9
100 TO 200 1.14 1.24 1.49 1.94
200 TO 400 1.2 1.3 1.55 2
400 TO 600 1.3 1.4 1.65 2.1
600 TO 800 1.34 1.44 1.69 2.14
800 TO 1000 1.4 1.5 1.75 2.2
>1000 1.5 1.6 1.85 2.3
Rate for extension of cover for „Liabilities to Third Parties‟:
Separate sum has to be mentioned in the policy for this cover and the
same H&M rate to be charged on this sum to arrive at the premium.
If the vessel is used for sporting purposes like water skiing/aquaplaning

then the TP cover can be extended to cover Water-Skiers liability at an
additional premium @ 25% of the TP rate. In such case clause nos
11.6.3and /or 11.6.4 of Institute Yacht clause should be deleted.
8. DEDUCTIBLES
1.00% of the H&M sum insured with a minimum of 5,000/ .
the same H&M rate has to be applied. The deductible would also not change.
327
Change in trading warranty is permitted during the currency of the policy.
12. RENEWAL

Upto 10 30
10 to 15 25
15 to 20 20
20 to 25 10
25 to 50 0 0
50 to 70 10
70 to 90 15
90 to 100 25
> 100 30
14. RATING OF SUBSIDIARY INTERESTS (only for vessels with a

value greater than Rs.4 crores)
SUBSIDIARY INTEREST CONDITIONS OF GUIDELINE RATE

COVER
Increased Institute Time Clauses 85% of the chargeable
value/Disbursements (sum Hulls Disbursements H&M rate
insured under this cover and Increased Value
shall not exceed 10% of Total Loss only
the H&M sum insured) (including Excess
Liabilities) dated
1-10-83.
328
15. OTHER EXTENSION OF COVERS
Racing extension: subject to the Institute Yacht clause Racing

Extension Clause dt 1.11.85. A loading of 25% on the annual
premium to be charged.
Extension of cover during transit by road etc : subject to the Institute

Yacht Clause Transit Clause dt 1.11.85. a loading of 25% on the
annual premium to be charged.
Cover for personal effects: subject to the Institute Yachts Clause

Personal Effects Clause dt 1.11.85. A separate amount has to be
mentioned in the policy and the annual H&M rate to be applied on
this sum.
*Machinery Damage Extension may be granted subject to Institute

Yacht clause Machinery Damage extension clause dt 1.11.85.
However since this makes the insurance a practically ‗All Risks‘ cover,
HO may grant this cover at their discretion and on a case to case
basis.*
16. SCALE OF ADDITIONAL PREMIUM RATES TO COVER BREACHES

OF WARRANTIES
Navigating outside the limits stated in the policy: 5% of the annual

premium for every 100nm
Vessel to be used for hire, charter or reward : double the H&M rate
given in the matrix
Deletion of speed warranty: 25% of the annual rate subject to the

speed boat clause 19.
329
17. PROPOSAL
MARINE HULL PROPOSAL FORM (FOR YACHTS AND SPEEDBOATS)

TEL.
STATE WHETHER THE PROPOSER
IS THE
CHARTERER
TEL.
WOULD THE VESSEL BE USED FOR YES/NO
HIRE/CHARTER/REWARD
VESSEL PARTICULARS
NAME OF VESSEL
FLAG OF VESSEL
TYPE OF VESSEL (AS REGISTERED)
GROSS REGD. TONNAGE
PLACE WHERE BUILT
NOT
YEAR OF BUILT
YEAR PURCHASED
PORT OF REGISTRY
LLOYDS REGISTER NUMBER (IF
ANY)
WAS THE VESSELS LAST SURVEYED
330
IS THE VESSEL CLASSED WITH A

CLASSIFICATION SOCIETY YES/NO
IF YES, NAME OF THE
CLASSIFICATION SOCIETY
PROPOSED SUM FOR INSURANCE
vessel plying only within the port limits
of _______ (name of Port) with leave to
proceed not beyond 12 N.M. from the
STATE THE GEOGRAPHICAL Prominent Point of the harbor/port as
LIMITS REQUIRED (TICK THE designated by Port Authorities/Custom
REQUIREMENT) Authorities/Local Authorities.
Would the vessel be navigating
beyond 12nm YES/NO
If yes, please state the navigation
limits.
Do you require deletion of speed
warranty? YES/NO
WOULD THE VESSEL BE USED FOR
SPORTING PURPOSES viz WATER
SKIING/AQUAPLANING ETC YES/NO
INCREASED VALUE/DISBURSEMENT INSURANCE COVER
(OPTIONAL)(APPLICABLE ONLY IF THE VALUE OF THE VESSEL IS
MORE THAN Rs 4 crores)
SUM PROPOSED FOR INSURANCE
(should not exceed 10% of the
H&M sum insured)
Institute Time Clauses Hulls
Disbursements and Increased Value
CONDITIONS OF INSURANCE Total Loss only (including Excess
(TICK THE REQUIREMENT Liabilities) dated 1-10-83,
OTHER EXTENSIONS
Do you require racing extension? YES/NO
Do you require extension of cover
during transit by road etc YES/NO
Do you require cover for 'Liabilities
to Third Parties'? YES/NO
331
If yes, state the sum insured

required.
Do you want cover for personal
effects? YES/NO
If yes, state the sum insured
required.
WAR AND SRCC COVER
DO YOU WANT WAR AND SRCC YES/NO
COVER ?
GENERAL
NO OF YACHTS/SPEED BOATS
OWNED BY YOU
PREMIUM /CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
PARTICULAR VESSEL
PREMIUM/CLAIMS IF ANY FOR IF YES PLEASE GIVE US THE DETAILS
FLEET AS WHOLE
OTHER BUSINESS FROM
PROPOSER
a Declined to insure you?
b Refused to renew your insurance?
c Increased your premium on renewal?
DECLARATION
COMPANY LTD.
Date
Place
332

satisfactory.
(SIGNATURE)

Section 41 of the insurance Act.1938 which is in force from the 1 st July 1939,
reads as follow :
333
SECTION 16
MARINE HULL INSURANCE CLAIMS
A typical marine hull claim is basically governed by the Marine Insurance Act
and the relevant Institute clauses to which the policy of insurance for that type
of vessel is subject to.
The different types of losses which are peculiar to any marine insurance
contract have been defined in the Marine Insurance Act as detailed below:
TOTAL LOSS
Section 56 of the MI Act states that there are two types of total losses viz
Actual Total Loss and Constructive Total Loss.
Measure of Indemnity: In the case of a valued policy, the sum insured.
ACTUAL TOTAL LOSS (Section 57/58)
The loss to the subject matter can be termed as Actual Total loss in the
following situations
1. When the subject matter is destroyed.

2. When it is damaged to such an extent that it ceases to be a thing of the
kind insured (Loss of species).
3. When the assured is irretrievably deprived of the subject matter.
4. When the ship is missing.
CONSTRUCTIVE TOTAL LOSS (Section 60)
The loss to the subject matter is termed as Constructive Total Loss in the
following situations:
1. It is unlikely that the assured can recover the ship ie that actual total
loss appearing to be unavoidable.
2. The cost of recovering the ship would exceed the value of the ship
3. In case of a damaged ship, the cost of repairing the damage would
exceed the insured value of the ship when repaired.
It is a necessary condition for the assured to abandon the vessel to claim the
loss as Constructive Total Loss.
334
NOTICE OF ABANDONMENT (Section 62)
The assured has to abandon the vessel and give Notice of Abandonment to
claim Constructive Total loss. If he fails to do so then the loss would be treated
as a partial loss.
Once the Notice of Abandonment is accepted by the insurer then it is

irrevocable and the insurers become liable for CTL.
When there is a valid abandonment the underwriter is entitled to take over full
proprietary rights in the vessel, however this would also mean acquiring any
potential liabilities, and so they invariably do not. The Notice is usually
therefore declined but the underwriter agrees to put the assured in the same
position as if a writ had been issued on that day. Notwithstanding the refusal
of the notice the underwriters are entitled to any net proceeds of sale of the
wreck since the assured would clearly be over indemnified if he received the
full insured value and retained the proceeds.
PARTIAL LOSSES (INCLUDING SALVAGE AND GENERAL AVERAGE AND

PARTICULAR CHARGES)
Any loss other than a total loss (as already defined), is a partial loss.
PARTICULAR AVERAGE (SECTION 64(1))
A particular average loss is a partial loss of the subject-matter insured, caused

by a peril insured against, and which is not a general average loss.
The perils which are insured are listed out in the relevant Institute clauses. All
Institute Hull clauses are named perils clauses. Hence the responsibility for
proving that the loss has been proximately caused by an insured peril lies upon
the party making the claim. Once the insured has made a prima facie case that
the loss or damage has occurred as a result of a peril insured against, the
burden of proof then shifts to the underwriters to set a counter argument that
the loss or damage resulted from a peril not insured against or is otherwise
excluded.
Measure of Indemnity: Where the ship has been repaired, the reasonable cost
of the repairs, less the deductibles, but not exceeding the sum insured in
respect of any one casualty.
PARTICULAR CHARGES (SECTION 64 (2))
Expenses incurred by or on behalf of the assured for the safety or preservation

of the subject-matter insured, other than general average and salvage charges,
335
are called particular charges. Particular charges are not included in particular
average.
EXTRA CHARGES
i) Survey Fees: In the event of casualty, the underwriter appoints

damage survey of the vessel and the underwriters are liable to pay
the survey fees.
ii) Legal Fees: Arising out of collision claim, the legal expenses
incurred are payable under the hull policy.
iii) Adjusters Fees: An average adjuster is an independent intermediary

who is generally appointed by the shipowner and in some cases by
the insurer to handle collision claims, general average claims and
particular average claims. Typically an average adjuster collects the
claim bills for repairs/replacement duly certified by the surveyor and
apportions the loss/liability as per the terms and conditions of the
policy. The fees of the average adjuster is payable by the
underwriters if the claim is admissible under the policy.
SALVAGE/SALVAGE CHARGES (SECTION 65)
The 1989 Salvage Convention defines salvage operation as ‗any act or activity
undertaken to assist a vessel or any other property in danger in navigable
waters or in any other waters whatsoever.‘
For the service to be called Salvage it is essential that the subject matter
should be in a position of danger and the service should be voluntary and the
subject should be saved at the end of the salvage operations.
The general principle is that the salvage is paid by the various salved interests
in the proportion to their salved value and hence the salvage expenses are
treated on the same lines as a general average expenditure and is payable
under the policy which expressly covers the loss.
A salvage agreement (eg. Lloyds Open Form), is an agreement to give services

to a ship in peril on terms which make the requirement of success and states
the conditions of payment for the services. The LOF does not breach the
general principle that salvors must be voluntary and lists out the terms on
which the services are given, defines the duties of each party, etc.
336
GENERAL AVERAGE LOSS (Section 66)
There are four essential features:
i) The sacrifice or expenditure must be extraordinary

Working the engines when the vessel is aground is considered
extraordinary, whereas working the engines when the vessel
afloat, however much the adventure may have been in peril is
considered as part of the normal function of the machinery and
any resultant damage is not admitted as general average.
ii) The act must intentional or voluntary and not inevitable

Cutting of a wreck, which was already lost at the time of the so-
called sacrifice is not a general average sacrifice.
iii) There must be a peril

A vessel adrift without motive power in mid ocean would be held
to be in peril even though the weather might be calm, however if
the master decides to prudently seek shelter for a vessel in an
anchorage because of reports of an approaching cyclone is not
considered as a general average act.
iv) The action should be for the common safety and not merely for
the safety of part of the property involved.
Suppose a vessel is put into a port to effect repairs to a

refrigerated machinery to avoid loss or damage to the
refrigerated cargo, the expenses are not considered as a General
Average act since otherwise the vessel was good condition.
Measure of Indemnity: The full amount of GA contribution subject

to under insurance if any.
SUE AND LABOUR EXPENSES (SECTION 78)
The purpose of a sue and labour clause is simple-if the insured incurs
expenditure when averting or minimizing a loss, the insurer will reimburse him.
In the current Institute clauses this is referred to as the ‗Duty of Assured‘
clause.
The key features of a valid Sue and Labour Charge are as follows:
1. Expense incurred by the assured or his agents must be

reasonable
337
2. Loss avoided must be covered by the policy.

3. Relates to the insured property alone and General Average can
therefore not be recovered under the Sue and Labour clause.
4. Supplementary and can be recovered in addition to a Total Loss
5. Subject to under insurance deduction
Measure of Indemnity: Actual expenses subject to under
insurance and limited to the sum insured.
SUCCESSIVE LOSSES (SECTION 77)
Successive partial losses are payable under a hull policy even though the total
amount of such losses may exceed the sum insured. Successive losses do not
reduce the sum insured and no additional premium is required to reinstate the
sum insured. Thus, the insurer may pay partial losses plus a total loss occurring
during the policy period.
COLLISION LIABILITY
Collision is considered to be a peril of the sea and therefore physical damage

sustained to the insured vessel as a result of collision is generally recoverable
under hull and machinery policy. However, collisions involve more than one
vessel and hence there is a possibility of a legal liability for the damage inflicted
on the other vessel.
While some clauses cover collision liabilities in full, others like ITC hull dt
1.10.83 cover only 3/4th of the collision liability and the balance is covered by
the P&I clubs. The legal costs are also payable in the same proportion.
PROCEDURE FOR PROCESSING OF CLAIMS
OCEAN GOING VESSELS
In view of :
a) nature and quantum of claims likely to arise under this category;
b) likelihood of occurrence of loss in distant foreign waters;
c) involvement of Laws and Practices of foreign jurisdictions, and,
d) involvement of foreign professional and / or firms like surveyors,

repair yards, adjusters, solicitors, arbitrators, Courts, etc.
338
The current system of processing these claims in accordance with the

International practices and traditions will continue except in so far as the
Provisions of the Indian Statutes are concerned.
Notwithstanding the expertise available in Company, all claims (including

particular average/general average/collision liability claims) under this category
should generally be considered for reference to professional Average Adjusters
Though selection of Average Adjusters is prerogative of the Hull Owners they

should be advised to engage adjusters who have established offices in India as
far as possible.
If an adjustment is prepared, the adjuster will extract information from the

following documents and incorporate it in the adjustment, but insurers are still
entitled to see the original documents and vouchers if they so wish.
(a) General
Policies of insurance on ship.
When required to comply with a warranty in the policies, viz class

maintained certificate.
Credit notes for the scrap value or proceeds of sale of old

propellors/tail shafts/and other parts condemned on account of
damage.
Deck and engine room log books covering the casualty, and, if
possible, the repair period(s), as they contain details of all material
events relating to the ship entered in the log at the time of their
occurrence.
Master's and/or chief engineer's detailed report and/or note of

protest, as relevant.
A Note of Protest is a sworn statement made by the Master/Chief

officer/Chief Engineer before a Notary Public or Consul, as soon
as reasonably possible, detailing the facts of the casualty.
Underwriters' surveyor's report together with account for their fees

and charges
Classification Society surveyor's report together with account for

their fees and charges
Owners' superintendent's report and account.
339
Receipted accounts for repairs and/or any spare parts supplied by

ship owners, in connection with repairs, endorsed by underwriters'
surveyor as being fair and reasonable.
Accounts covering any dry docking and general expenses relating to
the repairs. These accounts should also similarly be endorsed by
underwriters' surveyor.
Accounts for all incidental expenses paid at the port of repair, e.g.
port charges, watchmen, communications expenses, agency, etc.
Wages, maintenance and overtime of crew incurred on removal
passage to repair port and in port for repairs.
Details of fuel and engine room stores consumed during the repair
period, together with the cost of replacement.
Survey fees and superintendent fees for attendance.
Copies of faxes/e-mails sent and details of long-distance calls made

in connection with the casualty, together with their costs.
Details of dates of payment of all accounts.
(b) When vessel has been in collision
Details of steps taken to establish the liability for the collisions and
the eventual settlement made between the two parties.
If a recovery has been attempted against the colliding vessel, a
detailed copy of the claim put forward and all the items allowed from
the claim by the owners of the colliding vessel together with
accounts covering legal costs.
A detailed copy of any claim received from the other vessel, together
with details of which items included in the claim have been agreed.
Details of efforts to limit liability if applicable.
.
SUNDRY HULLS ( including Sailing Vessels, Fishing Vessels, Inland
Vessels, etc.)
i) While a Licensed Surveyor should be appointed in all cases of Partial

Losses / Expenses, such licensed Surveyor is to be appointed in case
of TL/CTL only where the vessel or its wreck, of reasonable value is
available for inspection or making reasonable attempt to salvage. In
cases where there is a total loss without wreck etc, a licensed
investigator may be appointed to ascertain whether or not the
reported loss of the vessel is substantially true in view of
circumstantial evidences.
340
ii) On receipt of loss intimation a letter may be written ―on without

prejudice‖ basis to the insured advising about the appointment of
Surveyor and/or Investigator requesting the insured to render full
cooperation to the Surveyor / Investigator appointed and also to
return the claim form duly completed and signed.
iii) Notice of Abandonment of the vessel/wreck in writing is a pre-

requisite for a Constructive Total Loss Claim. As a matter of practice,
insurers must decline, prima facie, acceptance of the Notice of
Abandonment. However, Insurers' refusal to accept Abandonment
does not legally prejudice the insured's claim for a CTL once the
Notice of Abandonment has been issued by him and received by the
Insurer. Notwithstanding this the Insurer must still refuse acceptance
of abandonment of the wreck till the probable liabilities attaching to
the wreck (Port and other dues, statutory requirement of wreck
removal in case of vessel sunk in navigable channel; etc.) are
reasonably estimated or considered.
iv) Total Loss claim can be settled on the basis of the statements and
documents, as also the investigator's / surveyor's report as the case
may be if the circumstances are found to be reasonably acceptable.
As per Marine Insurance Act, following acceptance of a claim for
Total Loss of a vessel, the insurers become entitled to the wreck or
the proceeds thereof, if any. However, before enforcing such
entitlement , it is advisable to ascertain whether or not any liability,
statutory or otherwise, is a reasonably likely to attach to such wreck
or proceeds thereof.
v) Since Marine Hull Policy is issued for a composite sum insured,

representing the aggregate values of Hull and Machinery and
showing Hull or Machinery value separately in the policy being
prohibited, no claim for Total or Constructive Total Loss can be
considered for settlement on the basis of and on account of either
Hull or Machinery Value alone.
vi) In case of Partial Loss, as far as possible, efforts should be made by

the Surveyors to achieve assessment net of salvage, if any, because
it is difficult and very often not economical for the Underwriters to
get involved in salvage take-over and disposal. However, where this
is not possible, arrangements should be made to take over the
salvage from the insured before the settlement of the claim and it
should be disposed of as early as possible as per the guidelines for
disposal of salvage.
vii) Claims occurring in foreign waters should be dealt with in the same
manner as in the case of oceangoing vessels.
341
DOCUMENTATION OF CLAIMS
The documents required for settlement of Sundry Hull claims are :
i) A final survey report inter-alia incorporating the following :
a. Name of the registered owner of the vessel

b. Identity of the vessel including registration details. Licence
particulars including validity thereof wherever applicable.
c. The details of loss suffered;
d. The surveyor's observation on the alleged circumstances of
the loss;
e. The reasonable probability of the alleged circumstances
giving rise to the losses noticed and/or claims;
f. Quantification of repairs / replacement cost, salvage, sue
and labour etc. where applicable duly certifying the repair
bills as fair and reasonable.
g. Cause of loss as per the Perils Clause of the policy.
h. Confirmation of class if applicable.
i. Confirmation on compliance with Conditions and
Warranties relating to Trading, Weather, lay up, watch and
ward etc. and also the provisions of the applicable statues.
j. Adequacy of sum insured for G.A., Salvage, Sue and
labour, collision liability claims etc.
k. In case of total loss claims, specific recommendations of
the surveyors weather the claim is actual total loss or
constructive total loss with reasons.
l. Comments as to the direction, speed and angle of blow in
respect of collision claim together with opinion on degree
of blame attaching to each vessel.
m. Photographs of the wreck, salvage operations, Sue and
Labour etc. wherever practicable.
ii) Copy of Certificate of Registration and License, if any, issued by

the concerned authorities;
iii) Original of the Certificate/Letter of Cancellation of Registration of

vessel in respect of Total Loss claims.
342
iv) Weather Report for the relevant place, date and time from the
competent authority in case Adverse Weather Warranty is
involved.
v) Affidavits and/or statements by the Owner, Tindel and all

members of the crew separately of the insured vessel and / or
rescuing vessel, if any, made to any authority such as Police,
Magistrate, Notary Public, Port Office, Indian Consulate etc.
vi) Marine casualty Form issued by Mercantile Marine Department

where applicable.
N.B. - Marine Casualty form is available only if any member of the crew
including tindal has survived the casualty or if all the crew members including
the Tindal has survived the casualty. If all the crew members including the
Tindal employed in the particular adventure die due to the casualty or are
missing beyond trace, the Marine Casualty Form is not issued by Mercantile
Marine Department as no statement from any of the crew regarding the
casualty can be recorded by the Department. However, in such cases, the
Mercantile Marine Department issues a certificate confirming that the casualty
has been reported to them.
vii) Police Report for claims within the territorial waters and for SRCC
claims.
viii) The loss should be reported to the Port Authorities if occurring

within the port area.
ix) In view of the localised and small scale operation, 'Salvage

Charges' covered under the Fishing Vessels' Policy is to be seen
differently from that under Oceangoing Vessels' Policy in as much
as neither the Lloyd's Open Form for Salvage Agreement nor any
international professional salvor is ever likely to be involved in
salving such vessels. Therefore, in most of the cases the salvage
services rendered to fishing vessels will be contracted salvage
and, for the purpose of eliminating unnecessary complications, it
is advisable to treat such ' Salvage Charges' as 'Sue and Labour'
costs for all practical purposes. It is, however, to be ascertained
that the amounts claimed for such costs are both actually
incurred and judiciously and reasonably incurred as also incurred
to avoid or minimise a loss that would otherwise be admissible
under the policy.
x) In the event of a Total and/or Constructive Total Loss claim being

considered for admission, the original insurance policy duly
discharged by the insured is to be collected.
343
However, where the original policy is reported to be lost, an

appropriate Letter of Indemnity in lieu thereof should be obtained
from the insured.
xi) In the event of a claim for Partial Loss/Expenses, Salvage,

Salvage Charges or Sue and Labour Charges, original repair bills,
cash memos and similar documents duly verified and certified by
the surveyor as also Salvor's / diver's Report where applicable,
are to be furnished. Claims for Sue & Labour Charges may have
to be considered for settlement over and above the TL/CTL claim
settlement. For these also original bills/cash memos in support of
expenses incurred are required.
xii) For claims other than TL/CTL, the applicable deductible should be
first deducted from the total claim amount as provided for in the
clauses attached to and forming part of the policy.
In addition to the above, the following documents have to be collected for

Sailing Vessel Claims.
i) Certificate of Inspection
ii) Free Board Certificate before commencement of the voyage;
iii) Cargo Manifest
iv) Load Line Certificate
v) Port Clearance Certificate
In case of Fishing Vessels, wherever the provisions of the Merchant Shipping

(amendment) Act 1983 Part XVA, Section 435 A to X are applicable, the
surveyors should be directed to report on the compliance thereof.
FIXED JETTIES AND PONTOONS
Since these are fixed structures and are included in the Hull Department more
as an extension of the principles of Hull Insurance than for any other reason, in
the even of losses it is advisable to process such claims as ―Engineering
Claims‖ and proceed accordingly.
However, since some losses may be found to be appropriate to be dealt with in

accordance with practices of Hull Department, like in the event of fixed
pontoon getting unmoored accidentally, going adrift and ultimately sustaining
damage or getting stranded/grounded, such claims should be processed in line
with practices of the Hull Department.
Situations, which are not explicitly provided for here, should be handled in
consultation with the Competent Authority/Head Office.
344
ANNEXURES
345
CONTENTS
ANNEXURES PAGE NO.
1 SPECIMEN OF MARINE HULL POLICY 231
2 PREMIUM INSTALMENT CLAUSE 232
3 WRITE UP ON TYPES OF SHIPS 233
SHIPPING/HULL INSURANCE
4 TERMINOLOGIES 237
5 ITC HULLS PORT RISKS DT 20.07.87 249
6 ITC HULLS DT 1.10.83 261
7 IFVC DT 20.07.87 273
8 INSTITUTE YACHT CLAUSE DT 1.11.85 286
9 INSTITUTE WARRANTIES DT 1.7.76 296
10 ISM WARRANTY 297
11 AVERAGE DISBURSEMENTS CLAUSE 298
12 IVC HULLS DT 1.10.83 300
13 STAMP DUTY 309
14 DISTANCE CHARTS 310
15 ISM CODE (WRITE UP) 316
346
347
MARINE HULL POLICY
WHEREAS the ASSURED named in the schedule hereto, have represented to

UNITED INDIA INSURANCE COMPANY LIMITED (hereinafter called the
―Company‖) that they are interested in or duly authorised to make the insurance
mentioned and described and have paid or agreed to pay the premium hereinafter
stated.
THE COMPANY HEREBY PROMISES AND AGREES with the ASSURED their
Executors, Administrators and Assigns that the Company will insure against loss
damage liability or expense subject to the clauses, endorsements, conditions and
warranties contained in the schedule and / or attached hereto.
SCHEDULE
POLICY NO. PERIOD
INSURED
(Name & address)
VESSEL GRT/DWT/BHP YEAR BUILT
INTEREST INSURED
AMOUNT INSURED HEREUNDER
INTEREST H&M I.V. OTHER(SPECIFY) TOTAL
SUM INSURED
RATE
PREMIUM TRADING WARRANTIES
DESCRIPTION PREMIUM AMOUNT
HULL & MACHINERY
INCREASED VALUE
TOTAL
SRCC
TOTAL
SERVICE TAX
STAMP DUTY
TOTAL
CLAUSE(S) AND/OR -As per attached & forming part of the Policy. -
ENDORSEMENT (S)
CO-INSURANCE, IF ANY As per attached & forming part of the policy.
SPECIAL CONDITION -The interest of Manager/Technical Operators will be noted here-
& WARRANTIES
NOTICE OF LOSS : In the event of loss or damage which may involve a claim
under this insurance, immediate notice thereto and application for survey should
be given to the policy issuing office and when abroad also to the nearest Lloyd‘s
agent.
IN WITNESS WHEREOF signed for and on behalf of the Company.
PLACE : For UNITED INDIA INSURANCE CO. LTD.

DATE :
Examined AUTHORISED SIGNATORY
348
PREMIUM INSTALMENT CLAUSE.
1. The Assureds shall pay to the Insurers the within mentioned

Premium of ________ Service Tax of Rs.______ /- and Stamp
Duty of Rs._____/- and so long as the Assureds perform and
observe all their obligations hereunder other than in regard to
the payment of the premium as stipulated in the policy the
Insurers as a matter of facility to the Assured, agree to accept
payment of Premium by Instalments as shown below:
INSTALMENTS
FIRST SECOND THIRD FOURTH
PREMIUM
S.TAX in Rs.
STAMP DUTY in Rs.
TOTAL
PAYABLE ON OR BEFORE
All the above instalments will fall due and are payable on or before
00.00hrs of the above dates.
2. Notwithstanding the provisions of the preceding clause, upon non-payment

of any Instalment on its due date, this policy shall cease to operate from
time and date of the default in payment of the instalment and no liability
shall attach under this policy for any loss or damage occurring thereafter
nor shall any refund of premium become due under the policy.
3. Additionally, in the event of Total Loss or Constructive Total Loss or

arranged Total Loss or compromised Total Loss of the vessel during the
currency of this policy from any cause whatsoever, all the subsequent
instalments shall immediately become due and payable notwithstanding
anything to the contrary herein above contained.
NOTE : IT IS NOT OBLIGATORY ON THE PART OF THE INSURERS TO

GIVE ANY NOTICE TO THE ASSUREDS FOR PAYMENT OF
PREMIUM INSTALMENT.
349
TYPES/CLASSIFICATION OF SHIPS (A small write up)
Ships are difficult to classify, mainly because there are so many criteria to base
classification on.
One classification is based on propulsion; with ships categorised as either

a sailing ship, a Steamship or a motor ship. Sailing ships are ships which
are propelled solely by means of sails. Steamships are ships which are
propelled by steam engines. Motor ships are ships which use internal
combustion engines as a means to propel themselves. Motor ships include
ships that propel itself through the use of both sail and mechanical means.
Other classification systems exist that use criteria such as:
2. The number of hulls, giving categories like monohull, catamaran.
3. The shape and size, giving categories like dinghy, keelboat, and
icebreaker.
4. The building materials used, giving steel, aluminum, wood,

fiberglass, and plastic.
5. The type of propulsion system used, giving human-propelled,

mechanical, and sails.
6. The geographic origin of the vessel, many vessels are associated

with a particular region, such as the pinnace of Northern Europe,
the gondolas of Venice.
7. The manufacturer, series, or class.
Another way to categorize ships and boats is based on their use. This system
includes military ships, commercial vessels, fishing boats, pleasure craft and
competitive boats. In this section, ships are classified using the first four of
those categories, and adding a section for lake and river boats, and one for
vessels which fall outside these categories.
Commercial vessels or merchant ships can be divided into three broad

categories: cargo ships, passenger ships, and special-purpose
ships. Cargo ships transport dry and liquid cargo. Dry cargo can be
transported in bulk by bulk carriers, packed directly onto a general cargo
ship in break-bulk, packed in intermodal containers as aboard a container
ship, or driven aboard as in roll-on roll-off ships. Liquid cargo is generally
carried in bulk aboard tankers, such as oil tankers, chemical tankers and LNG
350
tankers, although smaller shipments may be carried on container ships in tank

containers.
Passenger ships range in size from small river ferries to giant cruise ships.
This type of vessel includes ferries, which move passengers and vehicles on
short trips; ocean liners, which carry passengers on one-way trips; and cruise
ships, which typically transport passengers on round-trip voyages promoting
leisure activities aboard and in the ports they visit.
Special-purpose vessels are not used for transport but are designed to perform
other specific tasks. Examples include tugboats, pilot boats,rescue
boats, cable ships, research vessels, survey vessels, and ice breakers
Most commercial vessels have full hull-forms to maximize cargo capacity. Hulls
are usually made of steel, although aluminum can be used on faster craft, and
fiberglass on the smallest service vessels. Commercial vessels generally have a
crew headed by a captain, with deck officers and marine engineers on larger
vessels. Special-purpose vessels often have specialized crew if necessary, for
example scientists aboard research vessels. Commercial vessels are typically
powered by a single propeller driven by a diesel engine] Vessels which operate
at the higher end of the speed spectrum may use pump-jet engines or
sometimes gas turbine engines
There are many types of naval vessels currently and through history. Modern
naval vessels can be broken down into three categories:
warships submarines, and support and auxiliary vessels.
Modern warships are generally divided into seven main categories, which
are: aircraftcarriers, cruisers, destroyers, frigates, corvettes,
submarines and amphibious assault ships. Battleships encompass an
eighth category, but are not in current service with any navy in the world.
Most military submarines are either attack submarines or ballistic missile

submarines. Until the end of World War II, the primary role of the
diesel/electric submarine was anti-ship warfare, inserting and removing covert
agents and military forces, and intelligence-gathering. With the development of
the homing torpedo, better sonar systems, and nuclear propulsion, submarines
also became able to effectively hunt each other. The development
of submarine-launched nuclear missiles and submarine-launched cruise
missiles gave submarines a substantial and long-ranged ability to attack both
land and sea targets with a variety of weapons ranging from cluster
bombs to nuclear weapons.
351
Most navies also include many types of support and auxiliary vessels, such
as minesweepers, patrol boats, offshore patrol vessels, replenishment
ships, and hospital ships which are designated medical treatment facilities
Combat vessels like cruisers and destroyers usually have fine hulls to maximize
speed and maneuverability. They also usually have advanced electronics and
communication systems, as well as weapons.
Fishing vessels are a subset of commercial vessels, but generally small in size
and often subject to different regulations and classification. They can be
categorized by several criteria: architecture, the type of fish they catch, the
fishing method used, geographical origin, and technical features such as
rigging. Fishing boats are generally small, often little more than 30 meters
(98 ft) but up to 100 metres (330 ft) for a large tuna or whaling ship. Aboard a
fish processing ship the catch can be made ready for market and sold more
quickly once the ship makes port. Special purpose vessels have special gear.
For example, trawlers have winches and arms, stern-trawlers have a rear
ramp, and tuna seiners have skiffs.
Modern commercial fishermen use many methods. One is fishing by nets such
as , purse seine beach seine, lift nets, ,gillnets or entangling nets. Another
is ,trawling including bottom trawl Hooks and lines are used in methods
like long line fishingand hand line fishing. Another method is the use
of fishing trap.
A weather ship was a ship stationed in the ocean as a platform for surface
and upper air meteorological observations for use in weather forecasting..
Many types of boats and ships are designed for inland and coastal waterways.
These are the vessels that trade upon the lakes, rivers and canals.
Barges are a prime example of inland vessels. Flat-bottomed boats built to

transport heavy goods, most barges are not self-propelled and need to be
moved by tugboats towing or towboats pushing them. Riverboats and inland
ferries are specially designed to carry passengers, cargo, or both in the
challenging river environment. Rivers present special hazards to vessels. They
usually have varying water flows that alternately lead to high speed water
flows or protruding rock hazards. Changing siltation patterns may cause the
sudden appearance of shoal waters, and often floating or sunken logs and
trees (called snags) can endanger the hulls and propulsion of riverboats.
Riverboats are generally of shallow draft, being broad of beam and rather
square in plan, with a low freeboard and high topsides. Riverboats can survive
352
with this type of configuration as they do not have to withstand the high winds
or large waves that are seen on large lakes, seas, or oceans.
Lake freighters, also called lakers, are cargo vessels that ply the Great
Lakes.. These vessels are traditionally called boats, not ships. Visiting ocean-
going vessels are called "salties." Because of their additional beam, very large
salties are never seen inland of the Saint Lawrence Seaway. Because the
smallest of the Soo Locks is larger than any Seaway lock, salties that can pass
through the Seaway may travel anywhere in the Great Lakes. Because of their
deeper draft, salties may accept partial loads on the Great Lakes, "topping off"
when they have exited the Seaway. Similarly, the largest lakers are confined to
the Upper Lakes (Superior, Michigan, Huron, Erie because they are too large to
use the Seaway locks, beginning at the Welland Canal that bypasses
the Niagara River.
353
LIST OF SHIPPING AND HULL INSURANCE TERMINOLOGIES

The list given below is not exhaustive.
Abaft Towards a ship's stern, relative to some object
Abreast Side by side a ship
Actual Total Loss The loss to the subject matter can be termed as Actual
Total loss in the following situations 1. When the subject
matter is destroyed.
2. When it is damaged to such an extent that it ceases
to be a thing of the kind insured (Loss of species). 3.
When the assured is irretrievably deprived of the subject
matter4. When the ship is missing
Adrift It implies that a vessel is not under control and
therefore goes where the wind and current takes her
Aft End the rear end of a ship
Aground Resting on or touching the ground or bottom (usually
involuntarily).
Ahead in advance of a ship's bow
Alongside By the side of a ship or pier.
Amidships the central portion of a ship
Anchor object designed to prevent or slow the drift of a ship,
attached to the ship by a line or chain; typically a metal,
hook-like or plough-like object designed to grip the
bottom under the body of water
Anchor Chain Or
Anchor Cable Chain connecting the ship to the anchor.
Anchorage A suitable place for a ship to anchor. Area of a port or
harbor.
Ashore On the beach,shore or land
Astern towards the stern (rear) of the vessel, behind a vessel
Average experts in marine insurance and law, who may be
Adjusters: appointed by any party in a marine claim or
dispute. Irrespective of the identity of the instructing
party, the Average Adjuster is bound to act in an
impartial and independent manner.
Aweigh Position of an anchor just clear of the bottom
Ballast water/sand/pig iron etc carried in a ship to make her
seaworthy when carrying a little or no cargo for stability
purpose.
354
Barratry wrongful act wilfully committed by the master or crew to

the prejudice of the owner/charterer.
Beaching Deliberately running a vessel aground, to load and
unload a landing craft or sometimes to prevent a
damaged vessel from sinking
Beam breadth of ship
Bilge the lowest compartment on a ship where the two sides
meet at the keel.
Boat Deck The deck on which the life boats or inflatable life rafts
are stowed
Bottom No claim shall be allowed for scraping or painting the
Treatment: vessels bottom except when the plating has been
removed for re-fitting, renewal or faired, in place or
ashore. Such expenses are allowed when incurred in
connection with bottom plating damaged due to insured
peril.
Bow The forward end of a ship
Break Horse measure of engines horse-power without loss in power
Power caused by the gear box, generator and auxiliary
components.
Breakwater A structure built on the forecastle of a ship intended to
divert water away from the superstructure
Bridge a Structure above the weather deck, extending the full
width of the vessel, which houses the command centre,
itself called by association the bridge
Bulkhead compartments which run across the ship from side to
side, creating isolated areas of the ship
Bulkwark The ship's side that is above the upper deck, affording
protectionto the crew and the deck fittings
Buoy a floating object of defined shape and colour which is
anchored at a given position and serves as an aid to
navigation
Cancellation Return/refund of premium only on cancellation of the
Returns Only policy. No lay-up returns will be allowed.
(CRO) Condition.
Capsize when a ship or boat lists too far and rolls over, exposing
the keel. On large vessels, this often reslults in the
sinking of the ship
355
Catamaran a vessel with two hulls

Charter Party: Is an agreement betweent the shipowner and charterer.
Chartered Freight the hire paid by the charterers to the shipowner for the
use of the ship for a voyage or a period of time
Charterers Is the person who hires the vessel from shipowner.
Classification the body which qualifies the design and construction of
Society : the ship to comply with accepted standards of
structural and mechanical reliability.
Collision Liability covers the liability of the insured vessel for damage to
Insurance another vessel and property thereon resulting from
collision between the insured vessel and the other
vessel.
Constructive Total The loss to the subject matter is termed as Constructive
Loss (CTL): Total Loss in the following situations:1. It is unlikely that
the assured can recover the ship ie that actual total loss
appearing to be unavoidable2. The cost of recovering
the ship would exceed the value of the ship 3. In case of
a damaged ship, the cost of repairing the damage would
exceed the insured value of the ship when repaired
Dead Weight difference between light and loaded displacement. Dwt
Tonnage (DWT) means carrying capacity of the ship expressed in tons.
Deck a permanent covering over a compartment or a hull of a
ship.
Deductible Is an amount which is deducted from the claim amount
/Deductible and the balance amount is payable. If the claim amount
Excess is less than the deductible, nothing is payable.
Derrick A long tubular steel structure, hinged at foot of the mast
or kingpost and used like the jib of a crane to load and
discharge cargo
Disbursements see increased value
Displacement actual weight of ship, corresponding to the weight of
Tonnage water displaced by her. .
Double Bottom A double bottom is a ship design and construction
method where the bottom of the ship has two complete
layers of water tight hull surface:
Draft/Draught Distance from underside or ship's keel to the waterline
at which a ship is floating
Due Diligence INSURED SHOULD ACT AS HIS OWN INSURED
356
Dumb Barge Vessels/barges which has no mechanical means of

propulsion and needs to be towed by other vessel.
Exclusive Under the law of the sea, an exclusive economic
Economic Zone zone (EEZ) is a seazone over which a state has special
rights over the exploration and use of marine resources
It stretches from the seaward edge of the
state's territorial sea out to 200 nautical miles from its
coast.
Fast fastened or held firmly
Fathom A unit of length equal to 6 feet (1.8 m), roughly
measured as the distance between a man's outstretched
hands. Particularly used to measure depth
Fender an air or foam filled bumper used in boating to keep
boats from banging into docks or each other
Fishing Vessel a ship fitted with mechanical means of propulsion which
is exclusively engaged in as fishing for profit;
Flotsam Debris or cargo that remains afloat after a shipwreck
Fore And Aft Parallel to a line conecting bow and stern
Foreign-Going a ship, not being a home-trade ship, employed in
Ship trading between any port or place in India and any
other port or place or between ports or places, outside
India;
Founder to fill with water and sink
Frame A transverse structural member which gives the hull
strength and shape. Wooden frames may be sawn, bent
or laminated into shape. Planking is then fastened to the
frames. A bent frame is called a timber.
Freeboard The height of a ship's hull (excluding superstructure
above the water line
Freight includes the profit derived by a shipowner from the
employment of his ship to carry his own goods and the
freight payable by a third party to carry his goods. This
would not include passage money that is earned by
carrying passengers.
Full Returns Lay up returns will be recoverable.
Condition
Galley the kitchen of the ship
Gangway An opening in the bulwark of the ship to allow
357
passengers to board or leave the ship.

General Average Where any extra-ordinary sacrifice or expenditure is
(GA)/General voluntarily and reasonably made or incurred in time of
Average Sacrifice peril for the purpose of preserving the property
imperilled in the common adventure.
Gross Registered this is the registered tonnage to which had been added
Tonnage (GRT) : 'over deck' tonnage which is the space covered by poop,
bridge, deck houses etc.
Grounding when a ship (while afloat) touches the bed of the sea
Hard A section of otherwise muddy shoreline suitable for
mooring or hauling out
Hatch a door like opening in the deck which leads to the hold.
Healing the lean caused by the wind's force on the sails of a
sailing vessel
Heave a vessel's transient, vertical, up and down motion
Helm the wheel and/or wheelhouse area
Helmsman a person who steers a ship
Hold the lower part of the interior of a ship's hull especially
when considered as storage space.
Hull & Machinery includes the hull, stores etc. on board, ordinary fittings
(H&M): required for trade, machinery, boilers, coals and engine
stores.
Hull: A hull is the watertight body of a ship or boat. Above
the hull is the supersstructure and/or deckhouse, where
present. The line where the hull meets the water surface
is called the waterline.
Increased Value also known as disbursements which embraces cost of
(I.V.):. provisions and stores made available on board the ship,
port dues, expenses of loading and unloading. is that
interest of the shipowner which is outside the scope of
the hull like overhead expenses, manager‘s
commission/profit etc. Such expenses forms part of
increased value cover.
Indian Ship ship registered as such under this Act and includes any
ship registered at any port in India at the
commencement of this Act which is recognised as an
Indian ship under the proviso to sub-section (2) of
section 22 of the MS Act
Institute A set of express warranties for use in policies covering
358
Warranties ships. Mainly these are navigational warranties

restricting the ship's navigational areas. Breach of the
warranties is held covered subject to payment of an
additional premium and change of policy conditions, if
required by the underwriters.
International a length of 1852 meters (approximately 6080- feet).
Nautical Mile This is the standard for practical purposes.
ISM means the international management code for the safe
Code:International operation of ships and for pollution prevention.
Safety Compliance of ism code is mandatory in accordance with
Management solas rule (international covention for the safety of life at
(Ism) Code sea- solas 1974)
Jetsam Debris ejected from a ship that sinks or washes ashore
Jettison Cargo/property thrown overboard at time of peril to
save the adventure from total loss
Jib a triangular staysail at the front of the ship
Knot : Knot : is a speed of one nautical mile per hour
Lay Up Returns Return/refund of premium for every period of 30
consecutive days when the insured vessel is laid up in
safe waters.
Light the displacement tonnage where the actual weight of
Displacement the ship is with only ship equipments and machineries
Liner A descriptive name of a passenger or cargo ship which
provides a regular service between nominated ports
List A vessel's angle of lean or tilt to one side, in the
direction called roll. Typically refers to a lean caused by
flooding or improperly loaded or shifted cargo
Loaded the displacement tonnage where the actual weight of
Displacement the ship is with ship equipments and
machineries,water,cargo,fuel, stores,passengers etc.
Loadline Line on a ship's side indicating the depth in water down
to which a ship may be loaded
Loss Of Hire Or when a vessel under charter is so damaged that she
Earnings must be withdrawn from service for repairs, the
shipowner will lose the amount which the vessel would
have earned during this period.
Marine An Act to codify the Law relating to Marine Insurance.
Insurance Act The english Marine Insurance Act 1908 was enacted by
359
the Indian Parliament as Marine Insurance Act 1963

Mast a vertical pole on a ship which supports sails or rigging
Mechanized/Self- Vessels propelling on own power
Propelled:
Merchant Shipping THE MERCHANT SHIPPING ACT 1958 APPLIES TO ALL
Act THE SHIPS REGISTERED IN INDIA AND REQUIRED TO
BE REGISTERED IN INDIA. SHIPS EXCEEDING 15 TONS
NET AND NOT EMPLOYED SOLELY IN NAVIGATION ON
COAST OF INDIA, FITTED WITH MECHANICAL MEANS
OF PROPULSION ARE REQUIRED TO BE REGISTRED
UNDER M.S.ACT 1958. FOUR IMPORTANT PART OF
THE M. S. ACT –Ø PART V DEALING WITH
REGISTRATION OF INDIAN SHIPSØ PART IX DEALING
WITH SAFTY Ø PARTS XV AND XVA DEALING WITH
SAILING VESSELS AND FISHING VESSELSØ PART XIII
DEALING WITH INVESTIGATIONS AND INQUIRIES
INTO SHIPPING CASUALITIES.DIRECTOR GENERAL OF
SHIPPING (D G SHIPPING) IS THE PERSON UPON
WHOM THE CENTRAL GOVERNMENT HAS CONFERRED
THE AUTHORITY TO EXERCISE OR DISCHARGE THE
POWERS GRANTED BY THE ACT. D. G. SHIPPING ARE
THE MERCANTILE MARINE DEPARTMENT (MMD)
OFFICES SITUATED AT VARIOUS PORTS.
Moor to attach a boat to a mooring buoy or post
Nautical Mile : Nautical mile : the length of an arc of a meridian
subtending an angle of one minute (1‘) at the centre of
curvature of the place. Its length varies approximately
1843 meters(6046 feet) at the equator to 1862 metres
(6108feet) at the poles
Net Registered GRT minus non-earning capacities of the ship i.e engine
Tonnage (NRT) room, double bottom tank, peak tanks, crew
accommodation etc. Harbour and other dues are often
calculated on NRT.
New For Old: In particular average claim, requiring replacement of
parts , full value will be considered for settlement
without applying depreciation. However, depreciation
will be applied while computing the amount made good
in general average.
No Cure No Pay: Salvage services if not resulted in saving the vessel in
distress, will not be payable under the policy.
360
Notice Of The assured has to abandon the vessel and give Notice
Abandonment of Abandonment to claim Constructive Total loss. If he
fails to do so then the loss would be treated as a partial
loss.
Ordinary Freight freight payable by the cargo owner to the shipowner for
transporting his goods
Outboard Bound to leave the safety of port, heading for the open ocean
Partial Loss any loss other than a total loss is a partial loss. It
includes Particular average, salvage and general
average and particular charges
Particular this is a partial loss of the subject matter insured,
Average: caused by an insured peril and which is not a general
average loss
Particular Charges expenses incurred by or on behalf of the assured for the
safety or preservation of the subject matter insured
other than general average and salvage charges are
called particular charges. Particular charges are not
included in particular average.
Passageway hallway of a ship
Passenger Ship ship carrying more than twelve passengers;
Perils Of The Sea Refers to extraordinary forces of nature that maritime
ventures might encounter in the course of a voyage.
Some examples of these perils include stranding,
sinking, collision, heavy wave action, and high winds.
Perils Clause The ―perils clause‖ of a marine property policy lists the
causes of loss covered by the policy. The perils of
principal importance covered by hull and cargo policies
are the ―perils of the seas,‖ which do not include every
loss that occurs on the sea, but only accidental,
unanticipated losses occurring through extraordinary
action of the elements at sea, as well as mishaps in
navigation such as collision with another vessel or
running aground.
Pilot Navigator. A specially knowledgeable person qualified to
navigate a vessel through the difficult waters
Pontoon a flat bottomed vessel used as a ferry, barge, car float
or a float moored alongside a jetty or vessel to facilitate
boarding
Poop Deck a high deck on the aft superstructure of a ship
Port Side The right hand side of a ship
361
Porthole an opening in a ship's side, esp. a round one for

admitting light and air, fitted with thick glass and, often,
a hinged metal cover, a window
Protection And These are the associations of shipowners for collective
Indemnity (P&I) self-insurance to take care of their liabilities to others
Club which includes-
Radar acronym for Radio Detection and Ranging. An electronic
system designed to transmit radio signals
Registered internal capacity of a ship and denotes the cubical
Tonnage capacity of the vessel under the tonnage deck-a
registered ton being 100 cubic feet of internal
measurement
Rigging the system of masts and lines on ships and other sailing
vessels
Roll A vessel's motion rotating from side to side about the
fore-aft/longitudinal axis. Listing is a lasting stable tilt,
or heel, along the longitudinal axis. Roll is also an
alternate name for the longitudinal axis.
Rudder a submerged plane located at the rear of the hull.
Rudders are rotated to generate a lateral force which
turns the boat
Sailing Vessels "any description of vessel provided with sufficient sail
area for navigation under sails alone, whether or not
fitted with mechanical means of propulsion and includes
a rowing boat or canoe but does not include a pleasure
craft".All sea going sailing vessels owned by a citizen of
india or a company or a co-operative society as
indicated in section 21 of the part v of m.s. act 1958
shall be registered in accordance with the provisions of
the Merchant Shipping (Registration of Sailing vessels)
Rules
Salvage ‗any act or activity undertaken to assist a vessel or any
Operations other property in danger in navigable waters or in any
other waters whatsoever.‘
Sea-Going in relation to a vessel, means a vessel proceeding to
sea beyond inland waters or beyond waters declared to
be smooth or partially smooth waters by the Central
Government by notification in the Official Gazette;
Sheer Fore and aft curves of a deck rising towards bows and
stern
Ship Owners when the shipowner carries his own goods in his ship he
362
Trading Freight is permitted to insure as freight the profits he expects to

earn on his goods upon such voyage.
Ship‘s Ship‘s classification
Classification
Ship‘s Registration The ship acquires the nationality of the state in which it
is registered and carries the flag of that country.
Ship‘s Tonnages: Indicates the size of ships both in respect of capacity
and weight
Sistership Clause: If two vessels owned by the same shipowner collide with
each other. At law, the shipowner cannot claim for
himself. The clause states that in such cases, the
vessels will be deemed to be in separate ownership.
Stamp Duty every hull insurance policy must be duly stamped as per
the provisions of the Indian Stamp Act 1899.
Starboard Side The left hand side of a ship
Stem the extension of keel at the forward end of a ship
Stern the rear end of a ship
Stern Tube the tube under the hull to bear the tailshaft for
propulsion
Stow to store, or to put away e.g. personal effects, tackle, or
cargo.
Stowage the amount of room for storing materials on board a
ship
Stowaway a tresspasser on a ship
Structure Of The The structure of the hull varies depending on the vessel
Hull type. In a typical modern steel ship, the structure
consists of watertight and non-tight decks, major
transverse and longitudinal members called watertight
(and also sometimes non-tight) bulkheads, intermediate
members such asgirders, stringers and webs, and minor
members called ordinary transverse frames, frames, or
longitudinals, depending on the structural arrangement.
The uppermost continuous deck may be called the
"upper deck," "weather deck," "spar deck," "main deck"
or simply "deck." The particular name given depends on
the context--the type of ship or boat, the arrangement,
or even the area where it sails. Not all hulls are decked
(for instance a dinghy).
Sue And Labour These are expenses incurred by the assured , their
Charges servants or agents with the intention of preventing or
minimising any loss or damage that is caused by an
363
insured peril.
Superstructure the parts of a ship/boat that project above her main
deck
Classification surveyors of the classification society watch the
Society constuction of a ship to confirm it in accordance with the
construction plan. When construction is complete, they
assign a ―class‖ to a ship and include the ship society‘s
register and ― certificate of class‖ is issued to a ship. All
repairs to hull, machinery or equipement must be
carried out under the superivision of society‘s surveyor.
Failing to which , the class can be withdrawn or
suspended.
Sway a vessel's lateral motion from side to side
Tailshaft a kind of metallic shafting to hold the propellor and
connected to the power engine
Territorial Waters
Time Policy where the contract of insurance is for a definite period
of time
Total Loss the loss may either be an actual total loss or a
constructive total loss
Towing the operation of drawing a vessel forward by means of
long lines
Trading Warranty The geographical operational area or nautical miles
within which the vessel is allowed to ply
Trim Inclination of a vessel in the fore and aft direction while
afloat
Under-Insurance where the subject is insured for an amount less than the
policy valuation in the case of a valued policy, the
assured is deemed to be his own insurer in respect of
the uninsured balance.
Underway Passage of a ship through the water
Unvalued Policy a policy which does not specify the value of the subject
matter insured , but subject to the limit of the sum
insured, leaves the insurable value to be subsequently
ascertained.
Valued Policy policy which speficies the agreed value of the subject
matter insured. In the absence of fraud, the value fixed
by the policy is, as between the insurer and assuered,
364
conclusive of the insurable value of the subject intented

to be insured.
Vessel includes any ship, boat, sailing vessel, or other
description of vessel used in navigation;
Voyage Policy where the contract is to insure the subject matter 'at
and from' or 'from one place to another , the policy is
called a voyage olicy.
Warranty Of A ship is deemed to be seaworthy when she is
Seaworthiness reasonably fit in all respects to encounter the ordinary
perils of the sea. In a voyage policy there is an implied
warranty that at the commencement of the voyage the
ship should be seaworthy. There is no such implied
warranty in a time policy o ship that she must be
seaworthy at any stage of the adventure. but, where
with the privity of the assured if the ship is sent to sea
in an unseaworthy condition, the insurer is not liable for
any loss attributable to unseaworthiness.
Weigh Anchor to heave up an anchor prepatory to sailing
Wheel the usual steering device on larger vessels
Wheel House location on a ship where the wheel is located
Windlass a winch mechanism, usually with a horizontal axis.
Windward in the direction that the wind is coming from
365
20.7.87
INSTITUTE TIME CLAUSES HULLS PORT RISKS
This insurance is subject to English law and practice
1 NAVIGATION
The Vessel has leave to proceed to and from any wet or dry docks harbours ways
cradles and pontoons, within the limits specified in this insurance.
2 TERMINATION
This Clause 2 shall prevail notwithstanding any provision whether

written typed or printed in this insurance inconsistent therewith.
Unless Underwriters agree to the contrary in writing, this insurance shall terminate
automatically at the time of
2.1 change of the Classification Society of the Vessel, or change,

suspension, discontinuance, withdrawal or expiry of her Class therein.
However where such change, suspension, discontinuance or withdrawal of
her Class has resulted from loss or damage covered by Clause 4 of this
insurance or which would be covered by an insurance of the Vessel subject
to current Institute War and Strikes Clauses Hulls-Time such automatic
termination shall not operate.
2.2 any change, voluntary or otherwise, in the ownership or flag,

transfer to new management, or charter on a bareboat basis, or requisition
for title or use of the Vessel. However, in the event of requisition for title or
use without the prior execution of a written agreement by the Assured,
such automatic termination shall occur fifteen days after such requisition
whether the Vessel is in port or at sea.
3 ASSIGNMENT
No assignment of or interest in this insurance or in any moneys which may be or

become payable thereunder is to be binding on or recognised by the Underwriters
unless a dated notice of such assignment or interest signed by the Assured, and by
the assignor in the case of subsequent assignment, is endorsed on the Policy and
the Policy with such endorsement is produced before payment of any claim or
return of premium thereunder.
4 PERILS
4.1 This insurance covers loss of or damage to the subject-matter insured

caused by
366
4.1.1 perils of the seas rivers lakes, or other navigable waters

4.1.2 fire lightning explosion
4.1.3 violent theft by persons from outside the Vessel
4.1.4 jettison
4.1.5 piracy
4.1.6 breakdown of or accident to nuclear installations or
reactors
4.1.7 contact with aircraft or similar objects, or objects falling
therefrom, land conveyance, dock or harbour
equipment or installation.
4.2 This insurance covers loss of or damage to the subject-matter insured

caused by
4.2.1 accidents in loading discharging or shifting cargo or fuel

4.2.2 bursting of boilers breakage of shafts or any latent
defect in the machinery or hull
4.2.3 negligence of Master Officers Crew or Pilots
4.2.4 negligence of repairers or charterers provided such
repairers or charterers are not an Assured hereunder
4.2.5 barratry of Master Officers or Crew, provided such loss
or damage has not resulted from want of due diligence by the
Assured, Owners or Managers.
4.3 Master Officers Crew or Pilots not to be considered Owners within the
meaning of this Clause 4 should they hold shares in the Vessel.
5 EARTHQUAKE AND VOLCANIC ERUPTION EXCLUSION
In no case shall this insurance cover loss damage liability or expense caused by
earthquake or volcanic eruption. This exclusion applies to all claims including
claims under Clauses 7, 9, 11 and 13.
6 POLLUTION HAZARD
This insurance covers loss of or damage to the Vessel caused by any governmental
authority acting under the powers vested in it to prevent or mitigate a pollution
hazard, or threat thereof, resulting directly from damage to the Vessel for which
the Underwriters are liable under this insurance, provided such act of
governmental authority has not resulted from want of due diligence by the
Assured, the Owners, or Managers of the Vessel or any of them to prevent or
mitigate such hazard or threat. Master, Officers, Crew or Pilots not to be
considered Owners within the meaning of this Clause 6 should they hold shares in
the Vessel.
367
7 COLLISION LIABILITY
7.1 The Underwriters agree to indemnify the Assured for any sum or
sums paid by the Assured to any other person or persons by reason of the
Assured becoming legally liable by way of damages for
7.1.1 loss of or damage to any other vessel or property

on any other vessel
7.1.2 delay to or loss of use of any such other vessel or

property thereon
7.1.3 general average of, salvage of, or salvage under

contract of, any such other vessel or property thereon,
where such payment by the Assured is in consequence of the Vessel

hereby insured coming into collision with any other vessel.
7.2 The indemnity provided by this Clause 7 shall be in addition to the

indemnity provided by the other terms and conditions of this insurance
and shall be subject to the following provisions:
7.2.1 Where the insured Vessel is in collision with

another vessel and both vessels are to blame then, unless the
liability of one or both vessels becomes limited by law, the
indemnity under this Clause 7 shall be calculated on the principle
of cross-liabilities as if the respective Owners had been compelled
to pay to each other such proportion of each other's damages as
may have been properly allowed in ascertaining the balance or
sum payable by or to the Assured in consequence of the collision.
7.2.2 In no case shall the Underwriters‘ total liability under

Clauses 7.1 and 7.2 exceed their proportionate part of
the insured value of the Vessel hereby insured in respect of any
one such collision.
7.3 The Underwriters will also pay the legal costs incurred by the Assured or
which the Assured may be compelled to pay in contesting liability or
taking proceedings to limit liability, with the prior written consent of the
Underwriters.
EXCLUSIONS
7.4 Provided always that this Clause 7 shall in no case extend to any
sum which the Assured shall pay for or in respect of
7.4.1 removal or disposal of obstructions, wrecks,

cargoes or any other thing whatsoever
368
7.4.2 any real or personal property or thing whatsoever

except other vessels or property on other vessels
7.4.3 the cargo or other property on, or the

engagements of, the insured Vessel
7.4.4 loss of life, personal injury or illness
7.4.5 pollution or contamination of any real or personal

property or thing whatsoever (except other vessels with which the
insured Vessel is in collision or property on such other vessels).
8 SISTERSHIP
Should the Vessel hereby insured come into collision with or receive salvage
services from another vessel belonging wholly or in part to the same Owners or
under the same management, the Assured shall have the same rights under this
insurance as they would have were the other vessel entirely the property of
Owners not interested in the Vessel hereby insured; but in such cases the
liability for the collision or the amount payable for the services rendered shall be
referred to a sole arbitrator to be agreed upon between the Underwriters and
the Assured.
9 PROTECTION AND INDEMNITY
Assured becoming legally liable, as owner of the Vessel, for any claim,
demand, damages and/or expenses, where such liability is in
consequence of any of the following matters or things and arises from an
accident or occurrence during the period of this insurance:
9.1.1 loss of or damage to any fixed or movable object

or property or other thing or interest whatsoever, other than the
Vessel, arising from any cause whatsoever in so far as such loss
or damage is not covered by Clause 7
9.1.2 any attempted or actual raising, removal or

destruction of any fixed or movable object or property or other
thing, including the wreck of the Vessel, or any neglect or failure
to raise, remove, or destroy the same
9.1.3 liability assumed by the Assured under contracts of

customary towage for the purpose of entering or leaving port or
manoeuvring within the port during the ordinary course of trading
9.1.4 loss of life, personal injury, illness or payments

made for life salvage
369
9.1.5 liability under Clause 1(a) of the current Lloyd's

Standard Form of Salvage Agreement in respect of unsuccessful,
partially successful, or uncompleted services if and to the extent
that the salvor's expenses plus the increment exceed any amount
otherwise recoverable under the Agreement.
9.2 The Underwriters agree to indemnify the Assured for any of the
following arising from an accident or occurrence during the period of this
insurance:
9.2.1 the additional cost of fuel, insurance, wages, stores,

provisions and port charges reasonably incurred solely for the
purpose of landing from the Vessel sick or injured persons or
stowaways, refugees, or persons saved at sea
9.2.2 additional expenses brought about by the outbreak

of infectious disease on board the Vessel or ashore
9.2.3 fines imposed on the Vessel, on the Assured, or on

any Master Officer crew member or agent of the Vessel who is
reimbursed by the Assured, for any act or neglect or breach of any
statute or regulation relating to the operation of the Vessel,
provided that the Underwriters shall not be liable to indemnify the
Assured for any fines which result from any act neglect failure or
default of the Assured their agents or servants other than Master
Officer or crew member
9.2.4 the expenses of the removal of the wreck of the

Vessel from any place owned, leased or occupied by the Assured
9.2.5 legal costs incurred by the Assured, or which the

Assured may be compelled to pay, in avoiding, minimising or
contesting liability with the prior written consent of the
Underwriters.
EXCLUSIONS
9.3 Notwithstanding the provisions of Clauses 9.1 and 9.2 this Clause 9
does not cover any liability cost or expense arising in respect of:
9.3.1 any direct or indirect payment by the Assured under

workmen's compensation or employers' liability acts and any other
statutory or common law, general maritime law or other liability
whatsoever in respect of accidents to or illness of workmen or any
other persons employed in any capacity whatsoever by the Assured
or others in on or about or in connection with the Vessel or her
cargo, materials or repairs
370
9.3.2 liability assumed by the Assured under agreement

expressed or implied in respect of death or illness of or injury to
any person employed under a contract of service or apprenticeship
by the other party to such agreement
9.3.3 punitive or exemplary damages, however described
9.3.4 cargo or other property carried, to be carried or

which has been carried on board the Vessel but this Clause 9.3.4
shall not exclude any claim in respect of the extra cost of removing
cargo from the wreck of the Vessel
9.3.5 property, owned by builders or repairers or for

which they are responsible, which is on board the Vessel
9.3.6 liability arising under a contract or indemnity in

respect of containers, equipment, fuel or other property on board
the Vessel and which is owned or leased by the Assured
9.3.7 cash, negotiable instruments, precious metals or

stones, valuables or objects of a rare or precious nature, belonging
to persons on board the Vessel, or non-essential personal effects of
any Master, Officer or crew member
9.3.8 fuel, insurance, wages, stores, provisions and port

charges arising from delay to the Vessel while awaiting a substitute
for any Master, Officer or crew member
9.3.9 fines or penalties arising from overloading or illegal

fishing

property or thing whatsoever (This Clause 9.3.10 shall not exclude
any amount recoverable under Clause 9.1.5)
9.3.11 general average, sue and labour and salvage

charges, salvage, and/or collision liability to any extent that they
are not recoverable under Clauses 7, 11 and 13 by reason of the
agreed value and/or the amount insured in respect of the Vessel
being inadequate.

indemnity provided by the other terms and conditions of this insurance.
9.5 Where the Assured or the Underwriters may or could have limited
their liability the indemnity under this Clause 9 in respect of such liability
shall not exceed Underwriters' proportionate part of the amount of such
limitation.
371
9.6 In no case shall the Underwriters' liability under this Clause 9 in

respect of each separate accident or occurrence or series of accidents
arising out of the same event, exceed their proportionate part of the
insured value of the Vessel.
9.7 PROVIDED ALWAYS THAT
9.7.1 prompt notice must be given to the Underwriters of

every casualty event or claim upon the Assured which may give
rise to a claim under this Clause 9 and of every event or matter
which may cause the Assured to incur liability costs or expense for
which he may be insured under this Clause 9.
9.7.2 the Assured shall not admit liability for or settle any
claim for which he may be insured under this Clause 9 without the
prior written consent of the Underwriters.
10 NOTICE OF CLAIM AND TENDERS
10.1 In the event of accident whereby loss or damage may result in a

claim under this insurance, notice shall be given to the Underwriters prior
to survey and also, if the Vessel is abroad, to the nearest Lloyd's Agent so
that a surveyor may be appointed to represent the Underwriters should
they so desire.
10.2 The Underwriters shall be entitled to decide the port to which the
Vessel shall proceed for docking or repair (the actual additional expense of
the voyage arising from compliance with the Underwriters' requirements
being refunded to the Assured) and shall have a right of veto concerning a
place of repair or a repairing firm.
10.3 The Underwriters may also take tenders or may require further
tenders to be taken for the repair of the Vessel. Where such a tender has
been taken and a tender is accepted with the approval of the Underwriters,
an allowance shall be made at the rate of 30% per annum on the insured
value for time lost between the despatch of the invitations to tender
required by Underwriters and the acceptance of a tender to the extent that
such time is lost solely as the result of tenders having been taken and
provided that the tender is accepted without delay after receipt of the
Underwriters' approval.
Due credit shall be given against the allowance as above for any
amounts recovered in respect of fuel and stores and wages and
maintenance of the Master Officers and Crew or any member thereof,
including amounts allowed in general average, and for any amounts
recovered from third parties in respect of damages for detention and/or
loss of profit and/or running expenses, for the period covered by the
tender allowance or any part thereof.
Where a part of the cost of the repair of damage other than a fixed
deductible is not recoverable from the Underwriters the allowance shall be
reduced by a similar proportion.
372
10.4 In the event of failure to comply with the conditions of this

Clause 10, a deduction of 15% shall be made from the amount of the
ascertained claim.
11 GENERAL AVERAGE AND SALVAGE
11.1 This insurance covers the Vessel's proportion of salvage, salvage

charges and/or general average, reduced in respect of any
under-insurance, but in case of general average sacrifice of the Vessel the
Assured may recover in respect of the whole loss without first enforcing
their right of contribution from other parties.
11.2 Adjustment to be according to the law and practice obtaining at the

place where the adventure ends, as if the contract of affreightment
contained no special terms upon the subject; but where the contract of
affreightment so provides the adjustment shall be according to the
York-Antwerp Rules.
11.3 No claim under this Clause 11 shall in any case be allowed where
the loss was not incurred to avoid or in connection with the avoidance of a
peril insured against.
12 DEDUCTIBLE
12.1 No claim arising from a peril insured against shall be payable under
this insurance unless the aggregate of all such claims arising out of each
separate accident or occurrence (including claims under Clauses 7, 9, 11
and 13) exceeds ………………….. in which case this sum shall be deducted.
Nevertheless the expense of sighting the bottom after stranding, if
reasonably incurred specially for that purpose, shall be paid even if no
damage be found. This Clause 12.1 shall not apply to a claim for total or
constructive total loss of the Vessel or, in the event of such a claim, to any
associated claim under Clause 13 arising from the same accident or
occurrence.
12.2 Excluding any interest comprised therein, recoveries against any

claim which is subject to the above deductible shall be credited to the
Underwriters in full to the extent of the sum by which the aggregate of the
claim unreduced by any recoveries exceeds the above deductible.
12.3 Interest comprised in recoveries shall be apportioned between the

Assured and the Underwriters, taking into account the sums paid by the
Underwriters and the dates when such payments were made,
notwithstanding that by the addition of interest the Underwriters may
receive a larger sum than they have paid.
13 DUTY OF ASSURED (SUE AND LABOUR)
13.1 In case of any loss or misfortune it is the duty of the Assured and
their servants and agents to take such measures as may be reasonable for
373
the purpose of averting or minimising a loss which would be recoverable

under this insurance.
13.2 Subject to the provisions below and to Clause 12 the Underwriters

will contribute to charges properly and reasonably incurred by the Assured
their servants or agents for such measures. General average, salvage
charges (except as provided for in Clause 13.5) collision defence or attack
costs and costs incurred by the Assured in avoiding, minimising or
contesting liability covered by Clause 9 are not recoverable under this
Clause 13.
13.3 Measures taken by the Assured or the Underwriters with the object
of saving, protecting or recovering the subject-matter insured shall not be
considered as a waiver or acceptance of abandonment or otherwise
prejudice the rights of either party.
13.4 When expenses are incurred pursuant to this Clause 13 the liability
under this insurance shall not exceed the proportion of such expenses that
the amount insured hereunder bears to the value of the Vessel as stated
herein, or to the sound value of the Vessel at the time of the occurrence
giving rise to the expenditure if the sound value exceeds that value. Where
the Underwriters have admitted a claim for total loss and property insured
by this insurance is saved, the foregoing provisions shall not apply unless
the expenses of suing and labouring exceed the value of such property
saved and then shall apply only to the amount of the expenses which is in
excess of such value.
13.5 When a claim for total loss of the Vessel is admitted under this
insurance and expenses have been reasonably incurred in saving or
attempting to save the Vessel and other property and there are no
proceeds, or the expenses exceed the proceeds, then this insurance shall
bear its pro rata share of such proportion of the expenses, or of the
expenses in excess of the proceeds, as the case may be, as may
reasonably be regarded as having been incurred in respect of the Vessel;
but if the Vessel be insured for less than its sound value at the time of the
occurrence giving rise to the expenditure, the amount recoverable under
this clause shall be reduced in proportion to the under-insurance.
13.6 The sum recoverable under this Clause 13 shall be in addition to

the loss otherwise recoverable under this insurance but shall in no
circumstances exceed the amount insured under this insurance in respect
of the Vessel.
14 NEW FOR OLD
Claims payable without deduction new for old.
15 BOTTOM TREATMENT
374
In no case shall a claim be allowed in respect of scraping gritblasting and/or other

surface preparation or painting of the Vessel's bottom except that
15.1 gritblasting and/or other surface preparation of new bottom plates

ashore and supplying and applying any "shop" primer thereto,
15.2 gritblasting and/or other surface preparation of:
the butts or area of plating immediately adjacent to any renewed

or refitted plating damaged during the course of welding and/or repairs,
areas of plating damaged during the course of fairing, either in place or
ashore,
15.3 supplying and applying the first coat of primer/anti-corrosive to

those particular areas mentioned in 15.1 and 15.2 above, shall be allowed
as part of the reasonable cost of repairs in respect of bottom plating
damaged by an insured peril.
16 WAGES AND MAINTENANCE
No claim shall be allowed, other than in general average, for wages and
maintenance of the Master, Officers and Crew, or any member thereof, except
when incurred solely for the necessary removal of the Vessel, with the agreement
of the Underwriters, from one port to another for the repair of damage covered by
the Underwriters, or for trial trips for such repairs, and then only for such wages
and maintenance as are incurred whilst the, Vessel is under way.
17 AGENCY COMMISSION
In no case shall any sum be allowed under this insurance either by way of
remuneration of the Assured for time and trouble taken to obtain and supply
information or documents or in respect of the commission or charges of any
manager, agent, managing or agency company or the like, appointed by or on
behalf of the Assured to perform such services.
18 UNREPAIRED DAMAGE
18.1 The measure of indemnity in respect of claims for unrepaired

damage shall be the reasonable depreciation in the market value of the
Vessel at the time this insurance terminates arising from such unrepaired
damage, but not exceeding the reasonable cost of repairs.
18.2 In no case shall the Underwriters be liable for unrepaired damage

in the event of a subsequent total loss (whether or not covered under this
insurance) sustained during the period covered by this insurance or any
extension thereof.
375
18.3 The Underwriters shall not be liable in respect of unrepaired

damage for more than the insured value at the time this insurance
terminates.
19 CONSTRUCTIVE TOTAL LOSS
19.1 In ascertaining whether the Vessel is a constructive total loss, the

insured value shall be taken as the repaired value and nothing in respect of
the damaged or break-up value of the Vessel or wreck shall be taken into
account.
19.2 No claim for constructive total loss based upon the cost of recovery
and/or repair of the Vessel shall be recoverable hereunder unless such cost
would exceed the insured value. In making this determination only the cost
relating to a single accident or sequence of damages arising from the same
accident shall be taken into account.
20 DISBURSEMENTS WARRANTY
20.1 Additional insurances as follows are permitted:
20.1.1 Disbursements, Managers' Commissions, Profits

or Excess or Increased Value of Hull and Machinery. A sum not
exceeding 25% of the value stated herein.
20.1.2 Earnings or Anticipated Freight, insured for time.

A sum not exceeding 2507o of the value as stated herein less any
sum insured, however described, under 20. 1. 1.
20.1.3 Freight or Hire, under contracts for voyage. A

sum not exceeding the gross freight or hire for the first passage
and next succeeding cargo passage plus the charges of
insurance. In the case of a voyage charter where payment is
made on a time basis, the sum permitted for insurance shall be
calculated on the estimated duration of the voyage, subject to
the limitation of two cargo passages as laid down herein. Any
sum insured under 20.1.2 to be taken into account and only the
excess thereof may be insured.
20.1.4 Time Charter Hire or Charter Hire for Series of

Voyages. A sum not exceeding 50% of the gross hire which is to
be earned under the charter in a period not exceeding 18
months. Any sum insured under 20.1.2 to be taken into account
and only the excess thereof may be insured. An insurance under
this Section may begin on the signing of the charter.
20.1.5 Premiums. A sum not exceeding the actual

premiums of all interests insured for a period not exceeding 12
months (excluding premiums insured under the foregoing
376
sections but including, if required, the premium or estimated calls

on any Club or War etc. Risk insurance) reducing pro rata
monthly.
20.1.6 Returns of Premium. A sum not exceeding the

actual returns which are allowable under any insurance but
which would not be recoverable thereunder in the event of a total
loss of the Vessel whether by insured perils or otherwise.
20.1.7 Insurance irrespective of amount against:
Any risks excluded by Clauses 5, 22, 23, 24 and

25.
20.2 Warranted that no insurance on any interests enumerated in the

foregoing 20. 1.1 to 20.1.6 in excess of the amounts permitted therein and
no other insurance which includes total loss of the Vessel P.P.I., F.I.A., or
subject to any other like term, is or shall be effected to operate during the
currency of this insurance by or for account of the Assured, Owners,
Managers or Mortgagees. Provided always that a breach of this warranty
shall not afford the Underwriters any defence to a claim by a Mortgagee
who has accepted this insurance without knowledge of such breach.
21 RETURNS FOR CANCELLATION
To return pro rata monthly net for each uncommenced month if this insurance be
cancelled either by agreement or by the operation of Clause 2 provided that a total
loss of the Vessel, whether by insured perils or otherwise, has not occurred during
the period of this insurance or any extension thereof.
The following clauses shall be paramount and shall override anything

contained in this insurance inconsistent therewith.
22 WAR EXCLUSION
22.1 war civil war revolution rebellion insurrection, or civil strife arising
therefrom, or any hostile act by or against a belligerent power
22.2 capture seizure arrest restraint or detainment (barratry and piracy

excepted), and the consequences thereof or any attempt thereat
22.3 derelict mines torpedoes bombs or other derelict weapons of war.
23 STRIKES EXCLUSION
23.1 strikers, locked-out workmen, or persons taking part in labour

disturbances, riots or civil commotions
377
23.2 any terrorist or any person acting from a political motive.
24 MALICIOUS ACTS EXCLUSION
In no case shall this insurance cover loss damage liability or expense arising from
24.1 the detonation of an explosive.
24.2 any weapon of war and caused by any person acting maliciously
or from a political motive.
25 NUCLEAR EXCLUSION
any weapon of war employing atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.
378
1.10.83
INSTITUTE TIME CLAUSES HULLS
This Insurance is subject to English law and practice.
1 NAVIGATION
1.1 The Vessel is covered subject to the provisions of this insurance at

all times and has leave to sail or navigate with or without pilots, to go on
trial trips and to assist and tow vessels or craft in distress, but it is
warranted that the Vessel shall not be towed, except as is customary or to
the first safe port or place when in need of assistance, to undertake
towage or salvage services under a contract previously arranged by the
Assured and/or Owners and/or Managers and/or Charterers. This Clause
1.1 shall not exclude customary towage in connection with loading and
discharging.
1.2 In the event of the Vessel being employed in trading operations

which entail cargo loading or discharging at sea from or into another
vessel(not being a harbour or inshore craft) no claim shall be recoverable
under this insurance for loss of or damage to the Vessel or liability to any
other vessel arising from such loading or discharging operations, including
whilst approaching, lying alongside and leaving, unless previous notice that
the Vessel is to be employed in such operations has been given to the
Underwriters and any amended terms of cover and any additional premium
required by them have been agreed.
1.3 In the event of the vessel sailing(with or without cargo) with an

intention of being (a) broken up, or (b) sold for breaking up, or (b) sold for
breaking up, any claim for loss of or damage to the Vessel occurring
subsequent to such sailing shall be limited to the market value of the
Vessel as scrap at the time when the loss or damage is sustained, unless
previous notice has been given to the Underwriters and any amendments
to the terms of cover insured value and premium required by them has
been agreed. Nothing in this Clause 1.3 shall affect claims under Clauses 8
and/or 11
2 CONTINUATION
Should the Vessel at the expiration of this insurance be at sea or in distress or at a

port of refuge or of call, she shall, provided previous notice be given to the
Underwriters, be held covered at a pro rata monthly premium to her port of
destination.
3 BREACH OF WARRANTY
Held covered in case of any breach of warranty as to cargo, trade, locality,

towage, salvage services or date of sailing, provided notice be given to the
379
Underwriters immediately after receipt of advices and any amended terms of cover
and any additional premium required by them be agreed.
4 TERMINATION

Unless the Underwriters agree to the contrary in writing, this insurance shall
terminate automatically at the time of

suspension, discontinuance, withdrawal or expiry of her Class therein,
provided that if the Vessel is at sea such automatic termination shall be
deferred until arrival at her next port. However where such change,
suspension, discontinuance or withdrawal of her class has resulted from
loss or damage covered by Clause 6 of this insurance or which would be
covered by an insurance of the Vessel subject to current Institute War and
Strikes Clauses Hulls-Time such automatic termination shall only operate
should the Vessel sail from her next port without the prior approval of the
Classification Society
4.2 any change, voluntary or otherwise, in the ownership or flag, transfer

to new management, or charter on a bareboat basis, or requisition for title
or sue of the Vessel, provided that, if the Vessel has cargo on board and
has already sailed from her loading port or is at sea in ballast, such
automatic termination shall if required be deferred, whilst the Vessel
continued her planned voyage, until arrival at final port of discharge if with
cargo or at port of destination if in ballast. However, in the event of
requisition for title or use without the prior execution of a written
agreement by the Assured, such automatic termination shall occur fifteen
days after such requisition whether the Vessel is at sea or in port.
A pro rata daily net return of premium shall be made.
5 ASSIGNMENT

6 PERILS
6.1 This insurance covers loss of or damage to the subject-matter

insured caused by
380
6.1.1 perils of the seas rivers lakes or other navigable

waters
6.1.2 fire, explosion
6.1.4 jettison
6.1.5 piracy

reactors
6.1.7 contact with aircraft or similar objects, or objects

falling therefrom, land conveyance, dock or harbour equipment
or installation
6.1.8 earthquake volcanic eruption or lightning.
6.2 This insurance covers loss of or damage to the subject matter

insured caused by accidents in loading discharging or shifting cargo or fuel

6.2.4 negligence of repairers or charters provided such

6.2.5 barratry of Master Officers or Crew, provided such

loss or damage has not resulted from want of due diligence by the
6.3 Master Officers Crew or Pilots not to be considered Owners within

the meaning of this Clause 6 should they hold shares in the Vessel.
7 POLLUTION HAZARD
381

the Vessel.
382
8 3/4THS COLLISION LIABILITY
8.1 The Underwriters agree to indemnify the Assured for three-fourths

of any sum or sums paid by the Assured to any other person or
persons by reason of the Assured becoming legally liable by way of
damages for

on any other vessel

property thereon
8.1.3 general average of , salvage of, or salvage under

contract of any such other vessel or property thereon, where
such payment by the Assured is in consequence of the
Vessel hereby insured coming into collision with any other
vessel.
8.2 The indemnity provide by this Clause 8 shall be in addition to the

indemnity provided by the other terms and conditions of this insurance and
shall be subject to the following provisions:
8.2.1 Where the insured Vessel is in collision with another

vessel and both vessels are to blame then, unless the liability of
one or both vessels becomes limited by law, the indemnity under
this clause 8 shall be calculated on the principle of cross-liabilities
as if the respective Owners had been compelled to pay to each
other such proportion of each other's damages as may have been
properly allowed in ascertaining the balance or sum payable by or
to the Assured in consequence of the collision.
8.2.2 In no case shall the Underwriters' total

liability under Clauses 8.1 and 8.2 exceed their proportionate part
of three- fourths of the insured value of the Vessel hereby
insured in respect of any one collision.
8.3 The Underwriters will also pay three-fourths of the legal costs
incurred by the Assured or which the Assured may be compelled to pay in
contesting liability or taking proceedings to limit liability, with the prior
written consent of the Underwriters.
EXCLUSIONS

383

8.4.3 the cargo or other property on, or the engagements

of, the insured Vessel

property or thing whatsoever (except other vessels with which
the insured Vessel is in collision or property on such other vessels)
9 SISTER SHIP
services from another vessel belonging wholly or in part to the same Owners
or under the same management, the Assured shall have the same rights under this
Owners not interested in the Vessel hereby insured; but in such cases the
liability for the collision or the amount payable for the services rendered shall be
referred to a sole arbitrator to be agreed upon between the Underwriters and
the Assured.

to survey and also, if the Vessel is abroad, to the nearest Lloyd's Agent so
they so desire.
Vessel shall proceed for docking or repair (the actual additional expense
of the voyage arising from compliance with the Underwriters' requirements
tenders to be taken for the repair of the Vessel. Where such a tender
has been taken and a tender is accepted with the approval of the
Underwriters, an allowance shall be made at the rate of 30% per annum
on the insured value for time lost between the dispatch of the invitations to
tender required by Underwriters and the acceptance of a tender to the
extent that such time lost solely as the result of tenders having been taken
and provided that the tender is accepted without delay after receipt of the
Underwriters' approval. Due credit shall be given against the allowance as
above for any amounts recovered in respect of fuel and stores and wages
and maintenance of the Master Officers and Crew or any member thereof,
including amounts allowed in general average, and for any amounts
recovered from third parties in respect of damages for detention and/or
384
loss of profit and/or running expenses, for the period covered by the
tender allowance or any part thereof.
Where a part of the cost of the repair of damage other than a fixed
deductible is not recoverable from the Underwriters the allowance shall be
reduced by a similar proportion.
10.4 In the event of failure to comply with the conditions of this

Clause 10 a deduction of 15% shall be made from the amount of the
ascertained claim.
11.1 This insurance covers the Vessel's proportion of salvage, salvage

charges and/or general average, reduced in respect of any under-
insurance, but in case of general average sacrifice of the Vessel the
Assured may recover in respect of the whole loss without first enforcing
their right of contribution from other parties.
11.2 Adjustment to be according to the law and practice obtaining at

the place where the adventure ends, as if the contract of affreightment
contained no special terms upon the subject: but where the contract of
affreightment so provides the adjustment shall be according to the York-
Antwerp Rules.
11.3 When the vessel sails in ballast, not under charter, the provisions
of the York-Antwerp Rules, 1974 (excluding Rules XX and XXI) shall be
applicable, and the voyage for this purpose shall be deemed to continue
from the port or place of departure until the arrival of the Vessel at the
first port or place thereafter other than a port or place of refuge or a port
or place of call for bunkering only. If at any such intermediate port
or place there is an abandonment of the adventure originally contemplated
the voyage shall thereupon be deemed to be terminated.
12 DEDUCTIBLE
12.1 No claim arising from a peril insured against shall be payable

under this insurance unless the aggregate of all such claims arising out of
each separate accident or occurrence (including claims under Clauses 8, 11
and 13) exceeds .................... in which case this sum shall be deducted.
Nevertheless the expense of sighting the bottom after stranding, if
reasonably incurred specially for that purpose, shall be paid even if no
damage be found. This Clause 12.1 shall not apply to a claim for total or
constructive total loss of the Vessel or, in the event of such a claim, to any
associated claim under Clause 13 arising from the same accident or
occurrence.
385
12.2 Claims for damage by heavy weather occurring during a single sea
passage between two successive ports shall be treated as being due to one
accident. In the case of such heavy weather extending over a period not
wholly covered by this insurance the deductible to be applied to the claim
recoverable hereunder shall be the proportion of the above deductible that
the number of days of such heavy weather falling within the period of this
insurance bears to the number of days of heavy weather during the single
sea passage. The expression "heavy weather" in this Clause 12.2 shall be
deemed to include contact with floating ice.


notwithstanding that by the addition of interest the Underwriter may

charges (except as provided for in Clause 13.5) and collision defence or
attack costs are not recoverable under this Clause 13.
herein, or to the sound value of the Vessel at the time of the occurrence
giving rise to the expenditure if the sound value exceeds that value. Where
the Underwriters have admitted a claim for total loss and property insured
by this insurance is saved, the foregoing provisions shall not apply unless
the expenses of suing and labouring exceed the value of such property
saved and then shall apply only to the amount of the expenses which is in
excess of such value.
386
13.5 When a claim for total loss of the Vessel is admitted under this
proceeds, or the expenses exceed the proceeds, then this insurance shall
bear its pro rata share of such proportion of the expenses, or of the
expenses in excess of the proceeds, as the case may be, as may
reasonably be regarded as having been incurred in respect of the Vessel;
but if the Vessel be insured for less than its sound value at the time of the
occurrence giving rise to the expenditure, the amount recoverable under
this clause shall be reduced in proportion to the under-insurance.

of the Vessel.
14 NEW FOR OLD
15 BOTTOM TREATMENT


ashore and supplying and applying any "shop" primer thereto,

ashore,
15.3 supplying and applying the first coat of primer/anti-corrosive to

No claim shall be allowed, other than in general average, for wages and
maintenance of the Master, Officers and Crew, or any member thereof, except
when incurred solely for the necessary removal of the Vessel from one port to
another for the repair of damage covered by the Underwriters, or for trial trips for
such repairs, and then only for such wages and maintenance as are incurred whilst
the Vessel is under way.
387
information or documents or in respect of the commission or charges of any
manager, agent, managing or agency company or the like, appointed by or
on behalf of the Assured to perform such services.


extension thereof.

terminates.

account.
and/or repair of the Vessel shall be recoverable hereunder unless such cost
would exceed the insured value. In making this determination, only the
cost relating to a single accident or sequence of damages arising from the
same accident shall be taken into account.
20 FREIGHT WAIVER
In the event of total or constructive total loss no claim to be made by the

Underwriters for freight whether notice of abandonment has been given or not.
21.1 Additional insurances as follows are permitted.
21.1.1 Disbursements, Managers' Commissions, Profits

or Excess or Increased Value of Hull and Machinery. A sum not
exceeding 25% of the value stated herein.
388
21.1.2 Freight, Chartered Freight or Anticipated Freight,

insured for time. A sum not exceeding 25% of the value as
stated herein less any sum insured, however described, under
21.1.1.
21.1.3 Freight or Hire, under contracts for voyage. A

sum not exceeding the gross freight or hire for the current cargo
passage and next succeeding cargo passage (such insurance to
include, if required, a preliminary and an intermediate ballast
passage) plus the charges of insurance. In the case of a voyage
charter where payment is made on a time basis, the sum
permitted for insurance shall be calculated on the estimated
duration of the voyage, subject to the limitation of two cargo
passages as laid down herein. Any sum insured under 21.1.2 to
be taken into account and only the excess thereof may be
insured, which excess shall be reduced as the freight or hire is
advanced or earned by the gross amount so advanced or earned.
21.1.4 Anticipated Freight if the Vessel sails in ballast

and not under Charter. A sum not exceeding the anticipated
gross freight on next cargo passage, such sum to be reasonably
estimated on the basis of the current rate of freight at time of
insurance plug the charges of insurance. Any sum insured under
21.1.2 to be taken into account and only the excess thereof may
be insured.
21.1.5 Time Charter Hire or Charter Hire for Series of

Voyages. A sum not exceeding 50% of the gross hire which is to
be earned under the charter in a period not exceeding 18
months. Any sum insured under 21.1.2 to be taken into account
and only the excess thereof may be insured, which excess shall
be reduced as the hire is advanced or earned under the charter
by 50% of the gross amount so advanced or earned but the sum
insured need not be reduced while the total of the sums insured
under 21.1.2 and 21.1.5 does not exceed 50% of the gross hire
still to be earned under the charter. An insurance under this
Section may begin on the signing of the charter.
21.1.6 Premiums. A sum not exceeding the actual

premiums of all interests insured for a period not exceeding 12
months (excluding premiums insured under the foregoing
sections but including, if required, the premium or estimated calls
on any Club or War etc. Risk insurance) reducing pro rata
monthly.
21.1.7 Returns of Premium. A sum not exceeding the

actual returns which are allowable under any insurance but which
would not be recoverable thereunder in the event of a total loss
of the Vessel whether by insured perils or otherwise.
389
21.1.8 Insurance irrespective of amount against: Any

risks excluded by Clauses 23,24,25 and 26 below.
21.2 Warranted that no insurance on any interests

enumerated in the foregoing 21.1.1 to 21.1.7 in excess of the
amounts permitted therein and no other insurance which includes
total loss of the Vessel P.P.I., F.I.A., or subject to any other
like term is or shall be effected to operate during the currency of
this insurance by or for account of the Assured, Owners,
Managers or Mortgagees.
Provided always that a breach of this

warranty shall not afford the Underwriters any defence to a claim
by a Mortgagee who has accepted this insurance without
knowledge of such breach.
22 RETURNS FOR LAY-UP AND CANCELLATION
22.1 To return as follows:
22.1.1 Pro rata monthly net for each uncommenced

month if this insurance be cancelled by agreement.
22.1.2 For each period of 30 consecutive days the Vessel

may be laid up in a port or in a lay-up area provided such port or
lay-up area is approved by the Underwriters (with special liberties
as hereinafter allowed)
a) .......... percent net not under repair

b) .......... percent under repair
If the Vessel is under repair during part only of a period for which a
return is claimable, the return shall be calculated pro rata to the number of
days under (a) and (b) respectively.
22.2.1 a total loss of the Vessel, whether by insured

perils or otherwise, has not occurred during the period covered
by this insurance or any extension thereof
22.2.2 in no case shall a return be allowed when the

Vessel is lying in exposed or unprotected waters, or in a port or
lay- up area not approved by the Underwriters but, provided
the Underwriters agree that such non-approved lay-up area is
deemed to be within the vicinity of the approved port or lay-up
area, days during which the Vessel is laid up in such non-
approved lay-up area may be added to days in the approved port
or lay-up area to calculate a period of 30 consecutive days and a
return shall be allowed for the proportion of such period during
which the Vessel is actually laid up in the approved port or lay-up
area
390
22.2.3 loading or discharging operations or the presence

of cargo on board shall not debar returns but no return shall be
allowed for any period during which the Vessel is being used for
the storage of cargo or for lightering purposes
22.2.4 in the event of any amendment of the annual

rate, the above rates of return shall be adjusted accordingly.
22.2.5 in the event of any return recoverable under this

Clause 22 being based on 30 consecutive days which fall on
successive insurances effected for the same Assured, this
insurance shall only be liable for an amount calculated at pro rata
of the period rates 22.1.2 (a) and/or (b) above for the number of
days which come within the period of this insurance and to which
a return is actually applicable. Such overlapping period shall run,
at the option of the Assured, either from the first day on which
the Vessel is laid up or the first day of a period of 30 consecutive
days as provided under 22.1.2 (a) or (b), or 22.2.2 above.
The following clauses shall be paramount

and shall override anything contained in this insurance
inconsistent therewith.
23 WAR EXCLUSION

23.3 derelict mines torpedoes bombs other derelict weapons of war.

24.2 any terrorist or any person acting from a political motive
25.1 the detonation of an explosive
25.2 any weapon of war and caused by any person acting maliciously or
from a political motive.
391
In no case shall this insurance cover loss damage liability or

expense arising from any weapon of war employing atomic or nuclear fission
and/or fusion or other like reaction or radioactive force or matter.
392
20.7.87
INSTITUTE FISHING VESSEL CLAUSES, CRO
1 NAVIGATION AND REMOVALS ASHORE
1.1 The vessel is covered subject to the provisions of this insurance at

all times and has leave to sail or navigate with or without pilots, to go on
trial trips and to assist and tow vessels or craft in distress, but it is
warranted that with the exception of catch the Vessel shall not carry cargo
or containers for the carriage of cargo and shall not be towed, except as is
customary or to the first safe port or place when in need of assistance, or
undertake towage or salvage services under a contract previously arranged
by the Assured and/or Owners and/or Managers and/or Charterers. This
Clause 1.1 shall not exclude customary towage in connection with loading
and discharging.
1.2 Any part or parts of the subject-matter insured are covered subject
to the provisions of this insurance whilst ashore for the purpose of repair,
overhaul or refitting, including transit from and to the Vessel.
1.3 In the event of the Vessel sailing with an intention of being (a)
broken up, or (b) sold for breaking up, any claim for loss of or damage
to the Vessel occurring subsequent to such sailing shall be limited to the
market value of the Vessel as scrap at the time when the loss or
damage is sustained, unless previous notice has been given to the
Underwriters and any amendments to the terms of cover, insured value
and premium required by them have been agreed. Nothing in this Clause
1.3 shall affect claims under Clauses 8, 18 or 20.
2 CONTINUATION

port of refuge or of call, she shall, provided previous notice be given to the
Underwriters, be held covered at a pro rata monthly premium to her port of
destination.
3 BREACH OF WARRANTY
Held covered in case of any breach of warranty as to locality, towage, salvage

services or date of sailing, provided notice be given to the Underwriters
immediately after receipt of advices and any amended terms of cover and any
additional premium required by them be agreed.
4 TERMINATION

393
Unless the Underwriters agree to the contrary in writing, this insurance shall
terminate automatically at the time of

suspension, discontinuance, withdrawal or expiry of her Class therein
provided that if the Vessel is at sea such automatic termination shall be
deferred until arrival at her next port or until the expiry of fifteen days,
whichever shall first occur. However where such change, suspension,
discontinuance or withdrawal of her Class has resulted from loss or
damage covered by Clause 6 of this insurance or which would be covered
by an insurance of the Vessel subject to current Institute War and Strikes
Clauses Hulls -Time such automatic termination shall only operate should
the Vessel sail from her next port without the prior approval of the
Classification Society,
4.2 any change, voluntary or otherwise, in the ownership or flag,

transfer to new management, or charter on a bareboat basis, provided that
if the Vessel is at sea such automatic termination shall, if required, be
deferred until arrival at her next port or until the expiry of fifteen days,
whichever shall first occur.
4.3 requisition for title or use of the Vessel. However, in the event of
requisition or title or use without the prior execution of a written
agreement by the Assured, such automatic termination shall occur fifteen
days after such requisition whether the Vessel is at sea or in port.
5 ASSIGNMENT

6 PERILS

insured caused by
6.1.1 perils of the seas rivers lakes or other navigable

waters
6.1.4 jettison
6.1.5 piracy
394

reactors
6.1.7 contact with aircraft or similar objects, or objects
falling therefrom, land conveyance, dock or harbour equipment or
installation
6.1.8 earthquake volcanic eruption or lightning.

insured caused by
6.2.1 accidents in loading discharging or shifting catch

fuel or stores

6.2.4 negligence of repairers or charterers provided such

6.2.5 barratry of Master Officers or Crew, provided such

loss or damage has not resulted from want of due diligence by the
6.3 Master Officers Crew or Pilots not to be considered Owners within

the meaning of this Clause 6 should they hold shares in the Vessel.
7 POLLUTION HAZARD
the Vessel.
8.1 Any claim for general average and salvage to be on the basis of an
adjustment according to the York-Antwerp Rules 1974 if so required by the
Underwriters but the insured value of Hull and Machinery to be taken as
the contributory value without deduction.
395
396
The Underwriters to pay the cost of wages and maintenance of members of crew
necessarily retained whilst the vessel is undergoing repairs for which the
Underwriters are liable under this insurance.

charges (except as provided for in Clause 10.5) and collision defence or
attack costs and costs incurred by the Assured in avoiding minimising or
contesting liability covered by Clause 20 are not recoverable under this
Clause 10.
herein.
10.5 Where a claim for total loss of the Vessel is admitted under this
proceeds, or the expenses exceed the proceeds, then the Underwriters
shall pay the expenses, or the expenses in excess of the proceeds, as the
case may be.

of the Vessel.
11 NEW FOR OLD
12 DEDUCTIBLE
397
12.1 No claim arising from a peril insured against shall be payable under
this insurance unless the aggregate of all such claims arising out of each
separate accident or occurrence (including claims under Clauses 8, 10, 18
or 20) exceeds ………………….. ................................................... in which
case this sum shall be deducted. Nevertheless the expense of sighting the
bottom after stranding, if reasonably incurred specially for that purpose,
shall be paid even if no damage be found. This Clause 12.1 shall not
apply to a claim for total or constructive total loss of the Vessel or, in the
event of such a claim, to any associated claim under Clause 10 arising from
the same accident or occurrence.


notwithstanding that by the addition of interest the Underwriters may
13 MACHINERY DAMAGE ADDITIONAL DEDUCTIBLE
Notwithstanding any provision to the contrary in this insurance a claim for loss of
or damage to any machinery, shaft, electrical equipment or wiring, boiler
condenser heating coil or associated pipework, arising from any of the perils
enumerated in Clauses 6.2.2 to 6.2.5 inclusive above or from fire or explosion
when either has originated in a machinery space, shall be subject to a deductible
of ............................................................... Any balance remaining, after
application of this deductible, with any other claim arising from the same accident
or occurrence, shall then be subject to the deductible in Clause 12.1.
The provisions of Clauses 12.2 and 12.3 shall apply to recoveries and interest
comprised in recoveries against any claim which is subject to this clause.
This Clause shall not apply to a claim for total or constructive total loss of the
Vessel.
14 BOTTOM TREATMENT

surface preparation or painting of the Vessel‘s bottom except that

ashore and supplying and applying any ―shop‖ primer thereto,
398

ashore
14.3 supplying and applying the first coat of primer / anti-corrosive to

15 FISHING GEAR
No claim to attach hereto for loss of or damage to fishing gear unless
15.1 caused by fire lightning or violent theft by persons from outside the
Vessel
15.2 totally lost as a result of the total loss of the Vessel by insured
perils.


extension thereof.

terminates.

account.
and / or repair of the Vessel shall be recoverable hereunder unless such
cost would exceed the insured value. In making this determination, only
the cost relating to a single accident or sequence of damages arising from
the same accident shall be taken into account.
399
18 COLLISION LIABILITY
Assured becoming legally liable by way of damages for

on any other vessel

property thereon
18.1.3 general average of, salvage of, or salvage under

contract of, any such other vessel or property thereon, where such
payment by the Assured is in consequence of the Vessel hereby
insured coming into collision with any other vessel.

indemnity provided by the other terms and conditions of this insurance and
shall be subject to the following provisions:
18.2.1 Where the insured Vessel is in collision with another

vessel and both vessels are to blame then, unless the liability of
one or both vessels becomes limited by law, the indemnity under
this Clause 18 shall be calculated on the principle of cross-liabilities
as if the respective Owners had been compelled to pay to each
other such proportion of each other‘s damages as may have been
properly allowed in ascertaining the balance or sum payable by or
to the Assured in consequence of the collision.
18.2.2 In no case shall the Underwriters‘ total liability

under Clauses 18.1 and 18.2 exceed their proportionate part of
the insured value of the Vessel hereby insured in respect of any
one such collision.
18.3 The Underwriters will also pay the legal costs incurred by the
Assured or which the Assured may be compelled to pay in contesting
liability or taking proceedings to limit liability, with the prior written consent
of the Underwriters.
EXCLUSIONS

400

18.4.3 the cargo or other property on, or the engagements

of, the insured Vessel

property or thing whatsoever (except other vessels with which
the insured Vessel is in collision or property on such other vessels).
401
19 SISTERSHIP
services from another vessel belonging wholly or in part to the same Owners or
under the same management, the Assured shall have the same rights under this
Owners not interested in the Vessel hereby insured; but in such cases the liability
for the collision or the amount payable for the services rendered shall be referred
to a sole arbitrator to be agreed upon between the Underwriters and the Assured.
20 PROTECTION AND INDEMNITY
Assured becoming legally liable, as owner of the Vessel, for any claim,
demand, damages and/or expenses, where such liability is in consequence
of any of the following matters or things and arises from an accident or
occurrence during the period of this insurance:
20.1.1 loss of or damage to any fixed or movable object

or property or other thing or interest whatsoever, other than the
Vessel, arising from any cause whatsoever in so far as such loss
or damage is not covered by Clause 18.
20.1.2 any attempted or actual raising, removal or

destruction of any fixed or movable object or property or other
thing, including the wreck of the Vessel, or any neglect or failure
to raise, remove or destroy the same
20.1.3 liability assumed by the Assured under contracts

of customary towage for the purpose of entering or leaving port
or manoeuvring within the port during the ordinary course of
trading
20.1.4 loss of life, personal injury, illness or payments

made for life salvage
20.1.5 (a) hospital medical and burial expenses of

Master Officers or Crew
(b) repatriation expenses of Master

Officers or Crew (other than wages, remuneration in the
nature of wages, or any expenses which ensue from the
termination of an agreement, sale of the Vessel or any
other act of the Assured).
20.2 The Underwriters agree to indemnify the Assured for any of the
following arising from an accident or occurrence during the period of this
insurance:
402
20.2.1 the additional cost of fuel, insurance, wages

stores, provisions and port charges reasonably incurred solely for
the purpose of landing from the Vessel sick or injured persons or
stowaways, refugees, or persons saved at sea
20.2.2 additional expenses brought about by the

outbreak of infectious disease on board the Vessel or ashore
20.2.3 fines imposed on the Vessel, on the Assured, or

on any Master Officer crew member or agent of the Vessel who
is reimbursed by the Assured, for any act or neglect or breach of
any statute or regulation relating to the operation of the Vessel,
provided that the Underwriters shall not be liable to indemnify
the Assured for any fines which result from any act neglect
failure or default of the Assured their agents or servants other
than Master Officer or crew member
20.2.4 the expenses of the removal of the wreck of the

Vessel from any place owned, leased or occupied by the Assured
20.2.5 legal costs incurred by the Assured, or which the

Assured may be compelled to pay, in avoiding, minimising or
contesting liability with the prior written consent of the
Underwriters.
EXCLUSIONS
20.3 Notwithstanding the provisions of Clauses 20.1 and 20.2 this

Clause 20 does not cover any liability cost or expense arising in respect of:
20.3.1 any direct or indirect payment by the Assured

under workmen‘s compensation or employers‘ liability acts and
any other statutory or common law, general maritime law or
other liability whatsoever in respect of accidents to or illness of
workmen or any other persons employed in any capacity
whatsoever by the Assured or others in on or about or in
connection with the Vessel or her catch materials or repairs
20.3.2 liability assumed by the Assured under agreement

expressed or implied in respect of death or illness of or injury to
any persons employed under a contract of service or
apprenticeship by the other party to such agreement
20.3.3 punitive or exemplary damages, however

described
20.3.4 passengers
403
20.3.5 catch, fishing gear or other things or interests

whatsoever on board the insured Vessel or the engagements of
the insured Vessel but this Clause 20.3.5 shall not exclude any
claim in respect of the extra cost of removing catch or property
from the wreck of the Vessel
20.3.6 property, owned by builders or repairers or for

which they are responsible, which is on board the Vessel
20.3.7 liability arising under a contract or indemnity in

respect of containers, equipment, fuel or other property on board
the Vessel and which is owned or leased by the Assured
20.3.8 cash, negotiable instruments, precious metals or

stones, valuables or objects of a rare or precious nature,
belonging to persons on board the Vessel, or non-essential
personal effects of any Master, Officer or crew member
20.3.9 fuel, insurance, wages, stores provisions and port

charges arising from delay to the Vessel while awaiting a
substitute for any Master, Officer or crew member
20.3.10 fines or penalties arising from overloading or

illegal fishing

property or thing whatsoever
20.3.12 general average, sue and labour and salvage

charges, salvage, and/or collision liability to any extent that
they are not recoverable under Clauses 8, 10 and 18 by
reason of the agreed value and/or the amount insured in
respect or the Vessel being inadequate

indemnity provided by the other terms and conditions of this insurance.
20.5 Where the Assured or the Underwriters may or could have limited
their liability the indemnity under this Clause 20 in respect of such liability
shall not exceed Underwriters‘ proportionate part of the amount of such
limitation.
20.6 In no case shall the Underwriters‘ liability under this Clause 20 in

respect of each separate accident or occurrence or series of accidents
arising out of the same event, exceed their proportionate part of the
insured value of the Vessel.
404
20.7.1 prompt notice must be given to the Underwriters of

every casualty event or claim upon the Assured which may give
rise to a claim under this Clause 20 and of every event or matter
which may cause the Assured to incur liability costs or expense for
which he may be insured under this Clause 20.
20.7.2 the Assured shall not admit liability for or settle any
claim for which he may be insured under this Clause 20 without the
prior written consent of the Underwriters.

to survey and also, if the Vessel is abroad, to the nearest Lloyd‘s Agent so
they so desire.
Vessel shall proceed for docking or repair (the actual additional expense of
the voyage arising from compliance with the Underwriters‘ requirements
tenders to be taken for the repair of the Vessel. Where such a tender has
been taken and a tender is accepted with the approval of the Underwriters,
an allowance shall be made at the rate of 30 % per annum on the insured
value for time lost between the despatch of the invitations to tender
required by Underwriters and the acceptance of a tender to the extent that
such time is lost solely as the result of tenders having been taken and
provided that the tender is accepted without delay after receipt of the
Underwriter‘s approval.
21.4 In the event of failure to comply with the conditions of this Clause
21 a deduction of 15 % shall be made from the amount of the ascertained
claim.
Warranted that no insurance is or shall be effected to operate during the currency

of this insurance by or for account if the Assured, Owners, Managers or
Mortgagees on:
22.1 disbursements, commissions or similar interests, P.P.I., F.I.A. or

subject to any other like term,
22.2 excess or increased value of hull and machinery however

described.
405
Provided always that a breach of this warranty shall not afford the
Underwriters any defence to a claim by a Mortgagee who has accepted this
insurance without knowledge of such breach.
23 RETURNS FOR LAY-UP AND CANCELLATION
23.1 To return as follows:
23.1.1 Pro rata monthly net for each uncommenced month

if this insurance be cancelled by agreement or by the operation of
Clause 4.
23.1.2 For each period of 30 consecutive days the Vessel

may be laid up in a port or in a lay-up area provided such port or
lay-up area is approved by the Underwriters (with special liberties
as hereinafter allowed)
(1).................................. per cent net not under

repair
(2)...................................... per cent net under repair
If the Vessel is under repair during part only of a

period for which a return is claimable, the return shall be
calculated pro rata to the number of days under (1) and (2)
respectively.
23.2.1 a total loss of the Vessel, whether by insured

perils or otherwise, has not occurred during the period covered
by this insurance or any extension thereof
23.2.2 in no case shall a return be allowed when the

Vessel is lying in exposed or unprotected waters, or in a port or
lay-up area not approved by the Underwriters but, provided the
Underwriters agree that such non-approved lay-up area is
deemed to be within the vicinity of the approved port or lay-up
area, days during which the Vessel is laid up in such non-
approved lay-up area may be added to days in the approved port
or lay-up area to calculate a period of 30 consecutive days and a
return shall be allowed for the proportion of such period during
which the Vessel is actually laid up in the approved port or lay-up
area
23.2.3 loading or discharging operations or the presence

of catch on board shall not debar returns but no return shall be
allowed for any period during which the Vessel is being used for
the storage of catch or for lightering purposes
406
23.2.4 in the event of any amendment of the annual

rate, the above rates of return shall be adjusted accordingly
23.2.5 in the event of any return recoverable under this

Clause 23 being based on 30 consecutive days which fall on
successive insurances effected for the same Assured, this
insurance shall only be liable for an amount calculated at pro rata
of the period rates 23.1.2 (1) and / or (2) above for the number
of days which come within the period of this insurance and to
which a return is actually applicable. Such overlapping period
shall run, at the option of the Assured, either from the first day
on which the Vessel is laid up or the first day of a period of 30
consecutive days as provided under 23.1.2 (1) or (2), or 23.2.2
above.

contained in this insurance inconsistent therewith.
24 WAR EXCLUSION

24.3 derelict mines torpedoes bombs or other derelict weapons of war.

26.2 any weapon of war and caused by any person acting maliciously or
from a political motive.
407
any weapon of war employing atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.
408
1.11.85
INSTITUTE YACHT CLAUSES
1 VESSEL
Vessel means the hull, machinery, boat(s), gear and equipment, such as would
normally be sold with her if she changed hands.
2 IN COMMISSION AND LAID UP
2.1 The Vessel is covered subject to the provisions of this insurance
2.1.1 while in commission at sea or on inland waters or in port, docks,

marinas, on ways, gridirons, pontoons, or on the hard or mud or
at place of storage ashore, including lifting or hauling out and
launching, with leave to sail or navigate with or without pilots, to
go on trial trips and to assist and to tow vessels or craft in
distress, or as is customary, but it is warranted that the Vessel
shall not be towed, except as is customary or when in need of
assistance, or undertake towage or salvage services under a
contract previously arranged by Owners, Masters, Managers or
Charterers
2.1.2 while laid up out of commission as provided for in Clause 4

below, including lifting or hauling out and launching, while being
moved in shipyard or marina, dismantling, fitting out,
overhauling, normal maintenance or while under survey, (also to
include docking and undocking and periods laid up afloat
incidental to laying up or fitting out and with leave to shift in tow
or otherwise to or from her lay-up berth but not outside the
limits of the port of place in which the Vessel is laid up) but
excluding, unless notice be given to the Underwriters and any
additional premium required by them agreed, any period for
which the Vessel is used as a houseboat or is under major repair
or undergoing alteration.
2.2 Notwithstanding Clause 2.1 above the gear and equipment, including
outboard motors, are covered subject to the provisions of this insurance
while in place of storage or repair ashore.
3 NAVIGATING AND CHARTER HIRE WARRANTIES
3.1 Warranted not navigating outside the limits stated in the Schedule to the
policy or, provided previous notice be given to the Underwriters, held
covered on terms to be agreed.
3.2 Warranted to be used solely for private pleasure purposes and not for hire
charter or reward, unless specially agreed by the Underwriters.
409
4 LAID UP WARRANTY
Warranted laid up out of commission as stated in the Schedule to the policy, or held
covered on terms to be agreed provided previous notice be given to the
Underwriters.
5 SPEED WARRANTY
5.1 Warranted that the maximum designed speed of the Vessel, or the parent
Vessel in the case of a Vessel with boat(s), does not exceed 17 knots.
5.2 Where the underwriters have agreed to delete this warranty, the conditions
of the Speedboat Clause 19 below shall also apply.
6 CONTINUATION

port or place of refuge or of call, she shall, provided prompt notice be given to the
Underwriters, be held covered at a premium to be agreed until anchored or moored
at her next port of call in good safety.
7 ASSIGNMENT

the assignor in the case of subsequent assignment, is endorsed on the policy and the
policy with such endorsement is produced before payment of any claim or return of
premium thereunder.
8 CHANGE OF OWNERSHIP
This Clause 8 shall prevail notwithstanding any provisions whether written

typed or printed in this insurance inconsistent herewith.
8.1 Should the Vessel be sold or transferred to new ownership, or, where the
Vessel is owned by a company, should there be a change in the
controlling interests of the company, then, unless the Underwriters agree
in writing to continue the insurance, this insurance shall become cancelled
from the time of such sale transfer or change and a pro rata daily net
return of premium be made calculated on the premium charged for the in
commission and/or laid up period.
8.2 If however the Vessel shall have left her moorings or be at sea at the time
of sale or transfer such cancellation shall if required by the Assured be
suspended until arrival at port or place of destination.
9 PERILS
Subject always to the exclusions in this insurance
410
9.1 this insurance covers loss of or damage to the subject-matter insured

caused by
9.1.1 perils of the seas rivers lakes or other navigable waters
9.1.2 fire
9.1.3 jettison
9.1.4 piracy
9.1.5 contact with dock or harbour equipment or installation, land
conveyance, aircraft or similar objects or objects falling
therefrom
9.1.6 earthquake volcanic eruption or lightning
9.2 and, provided such loss or damage has not resulted from want of due
diligence by the Assured Owners or Managers, this insurance covers
9.2.1 loss of or damage to the subject-matter insured caused by
9.2.1.1 accidents in loading, discharging or moving stores,

gear, equipment, machinery or fuel
9.2.1.2 explosions
9.2.1.3 malicious acts
9.2.1.4 theft of the entire Vessel or her boat(s), or outboard

motor(s) provided it is securely locked to the Vessel
or her boat(s) by an anti-theft device in addition to
its normal method of attachment, or, following upon
forcible entry into the Vessel or place of storage or
repair, theft of machinery including outboard
motor(s), gear or equipment
9.2.2 loss of or damage to the subject-matter insured, excepting

motor and connections (but not strut shaft or propeller)
electrical equipment and batteries and connections, caused by
9.2.2.1 latent defects in hull or machinery, breakage of

shafts or bursting of boilers (excluding the cost and
expense of replacing or repairing the defective part
broken shaft or burst boiler)
the negligence of any person whatsoever, but

excluding the cost of making good any defect
resulting from either negligence or breach of
contract in respect of any repair or alteration work
carried out for the account of the Assured and/or
the Owners or in respect of the maintenance of the
Vessel.
411
9.3 this insurance covers the expense of sighting the bottom after a stranding,
if reasonably incurred specially for that purpose, even if no damage be
found.
10 EXCLUSIONS
No claim shall be allowed in respect of any
10.1 outboard motor dropping off or falling overboard
10.2 ship's boat having a maximum designed speed exceeding 17 knots, unless
such boat is specially covered herein and subject also to the conditions of
the Speedboat Clause 19 below, or is on the parent Vessel or laid up
ashore
10.3 ship's boat not permanently marked with the name of the parent Vessel
10.4 sails and protective covers split by the wind or blown away while set,
unless in consequence of damage to the spars to which sails are bent, or
occasioned by the Vessel being stranded or in collision or contact with any
external substance (ice included) other than water
10.5 sails, masts, spars or standing and running rigging while the Vessel is
racing, unless the loss or damage is caused by the Vessel being stranded,
sunk, burnt, on fire or in collision or contact with any external substance
(ice included) other than water
10.6 personal effects
10.7 consumable stores, fishing gear or moorings
10.8 sheathing, or repairs thereto, unless the loss or damage has been caused
by the Vessel being stranded, sunk, burnt, on fire or in collision or contact
with any external substance (ice included) other than water
10.9 loss or expenditure incurred in remedying a fault in design or construction

or any cost or expense incurred by reason of betterment or alteration in
design or construction
10.10 motor and connections (but not strut shaft or propeller) electrical
equipment and batteries and connections, where the loss or damage has
been caused by heavy weather, unless the loss or damage has been
caused by the Vessel being immersed, but this clause 10.10 shall not
exclude loss or damage caused by the Vessel being stranded or in collision
or contact with another vessel, pier or jetty.
11 LIABILITIES TO THIRD PARTIES
This clause only to apply when a sum is stated for this purpose in the
Schedule to the policy
412
11.1 The Underwriters agree to indemnify the Assured for any sum or sums
which the Assured shall become legally liable to pay and shall pay, by
reason of interest in the insured Vessel and arising out of accidents
occurring during the currency of this insurance, in respect of
11.1.1 loss of or damage to any other vessel or property whatsoever
11.1.2 loss of life, personal injury or illness, including payments made

for life salvage, caused on or near the Vessel or any other vessel
11.1.3 any attempted or actual raising, removal or destruction of the

wreck of the insured Vessel or the cargo thereof or any neglect
or failure to raise, remove or destroy the same.
11.2 LEGAL COSTS
The underwriters will also pay, provided their prior written consent has
been obtained.
11.2.1 the legal costs incurred by the Assured or which the Assured
may be compelled to pay in contesting liability or taking
proceedings to limit liability
11.2.2 the costs for representation at any coroner's inquest or fatal

accident enquiry.
11.3 SISTERSHIP
Should the Vessel hereby insured come into collision with or receive
salvage services from another vessel belonging wholly or in part to the
same Owners or under the same management, the Assured shall have the
same rights under this insurance as they would have were the other vessel
entirely the property of owners not interested in the Vessel hereby insured;
but in such cases the liability for the collision or the amount payable for the
services rendered shall be referred to a sole arbitrator to be agreed upon
between the Underwriters and the Assured.
11.4 NAVIGATION BY OTHER PERSONS
The provisions of this Clause 11 shall extend to any person navigating or in

charge of the insured Vessel with the permission of the Assured named in
this insurance (other than a person operating, or employed by the operator
of, a shipyard, marina, repair yard, slipway, yacht club, sales agency or
similar organization) and who while so navigating or in charge of the
Vessel shall in consequence of any occurrence covered by this Clause 11
become liable to pay and shall pay any sum or sums to any person or
persons, other than to the Assured named in this insurance, but indemnity
under this Clause shall incur to the benefit of the Assured and only to a
person navigating or in charge of the Vessel as described above, at the
written request of and through the agency of the Assured. Nothing in this
extension shall increase the Underwriters' liability beyond the limitation of
liability imposed by Clause 11.8 below and this extension shall be subject
to all other terms conditions and warranties of this insurance.
413
Nothing in this Clause 11.4 shall be deemed to override the provisions of

Clause 3.2 above.
11.5 REMOVAL OF WRECK EXTENSION
This insurance also to pay the expenses, after deduction of the proceeds of
the salvage, of the removal of the wreck of the insured Vessel from any
place owned, leased or occupied by the Assured.
11.6 LIABILITIES SECTION EXCLUSIONS
Notwithstanding the provisions of this Clause 11 this insurance does not

cover any liability cost or expense arising in respect of
11.6.1 any direct or indirect payment by the Assured under workmen's

compensation or employers' liability acts and any other statutory
or common law liability in respect of accidents to or illness of
workmen or any other persons employed in any capacity
whatsoever by the Assured or by any person to whom the
protection of this insurance is afforded by reason of the
provisions of Clause 11.4 above, in on or about or in connection
with the Vessel hereby insured or her cargo, materials or repairs.
11.6.2 any boat belonging to the Vessel and having a maximum

designed speed exceeding 17 knots, unless such boat is specially
covered herein and subject also to the conditions of the
Speedboat Clause 19 below, or is on the parent Vessel or laid up
ashore
11.6.3 any liability to or incurred by any person engaged in water skiing

or aquaplaning, while being towed by the Vessel or preparing to
be towed or after being towed until safely on board or ashore.
11.6.4 any liability to or incurred by any person engaged in a sport or

activity, other than water skiing or aquaplaning, while being
towed by the Vessel or preparing to be towed or after being
towed until safely on board or ashore
11.6.5 punitive or exemplary damages, however described.
11.7 WATER-SKIERS LIABILITIES
Should Clause 11.6.3 and/or Clause 11.6.4 above be deleted, the liabilities
mentioned in such clause(s) shall be covered hereunder, subject always to
the warranties, conditions and limits of this insurance.
11.8 LIMIT OF LIABILITY
The liability of the Underwriters under this Clause 11, in respect of any one
accident or series of accidents arising out of the same event, shall in no
case exceed the sum stated for this purpose in the Schedule to the policy,
but when the liability of the Assured has been contested with the consent
414
in writing of the Underwriters, the Underwriters will also pay a like

proportion of the costs which the Assured shall thereby incur or be
compelled to pay.
12 EXCESS AND DEDUCTIBLE
12.1 No claim arising from a peril insured against shall be payable under this
insurance unless the aggregate of all such claims arising out of each
separate accident or occurrence (including claims under Clauses 11, 14 and
15) exceeds the amount stated for this purpose in the Schedule to the
policy, in which case this sum shall be deducted. This Clause 12.1 shall not
apply to a claim for total or constructive total loss of the Vessel or, in the
12.2 Prior to the application of Clause 12.1 above and in addition thereto,
deductions new for old not exceeding one-third may be made at the
Underwriters' discretion in respect of loss of or damage to
12.2.1 protective covers, sails and running rigging
12.2.2 outboard motors whether or not insured by separate valuation

13.1 Prompt notice shall be given to the Underwriters in the event of any
occurrence, which may give rise to a claim under this insurance, any theft
or malicious damage shall also be reported promptly to the police.
13.2 Where loss or damage has occurred, notice shall be given to the
Underwriters prior to survey and, if the vessel is abroad, also to the
nearest Lloyd's Agent so that a surveyor may be appointed to represent
the Underwriters should they so desire.
13.3 The Underwriters shall be entitled to decide the port to which the Vessel
shall proceed for docking or repair (the actual additional expense of the
voyage arising from compliance with Underwriters' requirements being
refunded to the Assured) and shall have a right of veto concerning a place
of repair or a repairing firm.
13.4 The Underwriters may also take tenders or may require tenders to be
taken for the repair of the Vessel.
14 SALVAGE CHARGES
Subject to any express provision in this insurance, salvage charges incurred in

preventing a loss by perils insured against may be recovered as a loss by those
perils.
415
15 DUTY OF ASSURED
15.1 In case of any loss or misfortune it is the duty of the Assured and their
servants and agents to take such measures as may be reasonable for the
purpose of averting or minimising a loss which would be recoverable under
this insurance.
15.2 Subject to the provisions below and to Clause 12 the Underwriters will
contribute to charges properly and reasonably incurred by the Assured
charges, collision defence or attack costs and costs incurred by the Assured
in contesting liability covered by Clause 11.2 are not recoverable under this
Clause 15.
15.3 The Assured shall render to the Underwriters all possible aid in obtaining
information and evidence should the Underwriters desire to take
proceedings at their own expense and for their own benefit in the name of
the Assured to recover compensation or to secure an indemnity from any
third party in respect of anything covered by this insurance.
15.4 Measures taken by the Assured or the Underwriters with the object of
saving, protecting or recovering the subject-matter insured shall not be
15.5 The sum recoverable under this Clause 15 shall be in addition to the loss
otherwise recoverable under this insurance but in no circumstances shall
amounts recoverable under Clause 15.2 exceed the sum insured under this
insurance in respect of the Vessel.
16.1 The measure of indemnity in respect of claims for unrepaired damage shall
be the reasonable depreciation in the market value of the Vessel at the
time this insurance terminates arising from such unrepaired damage, but
not exceeding the reasonable cost of repairs.
16.2 In no case shall the Underwriters be liable for unrepaired damage in the
event of a subsequent total loss (whether or not covered under this
extension thereof.
16.3 The Underwriters shall not be liable in respect of unrepaired damage for
more than the insured value at the time this insurance terminates.
17.1 In ascertaining whether the Vessel is a constructive total loss the insured
value shall be taken as the repaired value and nothing in respect of the
damaged or break-up value of the Vessel or wreck shall be taken into
account.
416
17.2 No claim for constructive total loss based upon the cost of recovery and/or
repair of the Vessel shall be recoverable hereunder unless such cost would
exceed the insured value. In making this determination, only the cost
relating to a single accident or sequence of damages arising from the same
accident shall be taken into account.
Warranted that no amount shall be insured policy proof of interest or full interest
admitted for account of the Assured, Mortgages or Owners on disbursements,
commission, profits or other interests or excess or increased value of hull or
machinery however described unless the insured value of the Vessel is over £50,000
and then not to exceed 10 per cent of the total amount insured in respect of the
Vessel as stated in the Schedule to the policy.
Provided always that a breach of this warranty shall not afford the Underwriters any
defence to a claim by a Mortgagee who has accepted this insurance without
knowledge of such breach.
19 SPEEDBOAT CLAUSE
WHERE THIS CLAUSE 19 APPLIES IT SHALL OVERRISE ANY CONFLICTING

PROVISIONS IN THE CLAUSES ABOVE
19.1 It is condition of this insurance that when the Vessel concerned is

under way the Assured named in the Schedule to the policy or
other competent person(s) shall be on board and in control of the
Vessel.
19.2 No claim shall be allowed in respect of loss of or damage to the Vessel or

liability to any third party or any salvage services
19.2.1 caused by or arising from the Vessel being stranded sunk

swamped immersed or breaking adrift, while left moored or
anchored unattended off an exposed beach or shore
19.2.2 arising while the Vessel is participating in racing or speed tests,

or any trials in connection therewith.
19.3 No claim shall be allowed in respect of rudder strut shaft or propeller
19.3.1 under Clauses 9.2.2.1 and 9.2.2.2
19.3.2 for any loss or damage caused by heavy weather, water or

contact other than with another vessel, pier or jetty, but this
Clause 19.3.2 shall not exclude damage caused by the Vessel
being immersed as a result of heavy weather.
19.4 If the Vessel is fitted with inboard machinery no liability shall attach to this
insurance in respect of any claim caused by or arising through fire or
explosion unless the Vessel is equipped in the engine room (or engine
space) tank space and galley, with a fire extinguishing system
417
automatically operated or having controls at the steering position and

properly installed and maintained in efficient working order.
20 CANCELLATION AND RETURN OF PREMIUM
This insurance may be cancelled by the Underwriters at any time subject to 30 days
notice to the Assured or by mutual agreement, when a pro rata daily net return of
premium shall be made calculated on the premium Charged for the in commission
and/or laid up period.
THE FOLLOWING CLAUSES SHALL BE PARAMOUNT AND SHALL OVERRIDE

ANYTHING CONTAINED IN THIS INSURANCE INCONSISTENT THEREWITH.
21 WAR EXCLUSION
21.1 war civil war revolution rebellion insurrection or civil strife arising therefrom
or any hostile acts by or against belligerent power

21.3 derelict mines torpedoes bombs or other derelict weapons of war
22 STRIKES AND POLITICAL ACTS EXCLUSION

23.1 any weapon of war employing atomic or nuclear fission and/or fusion or
other like reaction or radioactive force or matters.
23.2 ionising radiations from or contamination by radioactivity from any nuclear

fuel or from any nuclear waste from the combustion of nuclear fuel
23.3 the radioactive, toxic, explosive or other hazardous properties of any

explosive nuclear assembly or nuclear component thereof.
418
1.7.76
INSTITUTE WARRANTIES
1 Warranted no
(a) Atlantic Coast of North America, its rivers or adjacent islands,
(i) north of 52 10' N Lat, and west of 50 W. Long:
(ii) south of 52 10' N. Lat in the area bounded by lines drawn between
Battle Harbour / Pistolet Bay; Cape Ray/Cape North; Port
Hawkesbury/Port Mulgrave and Baie Comeau/Matane, between 21st
December and 30th April both days inclusive.
(iii) west of Baie Comeau/Matane (but not west of Montreal) between 1st
December and 30th April both days inclusive.
(b) Great Lakes or St. Lawrence Seaway west of Montreal.
(c) Greenland Waters.
(d) Pacific Coast of North America its rivers or adjacent islands north of 54 30'
N. Lat., or west of 130 50' W. Long.
2 Warranted no Baltic Sea or adjacent waters east of 15 E. Long.
(a) North of a line between Mo (63 24' N. Lat) and Vasa (63 06' N. Lat.)
between 10th Decemebr and 25th May b.d.i.
(b) East of a line between Viipuri (Vyborg) (28 47' E. Long.) and Narva (28
12' E. Long.) between 15th December and 15th May b.d.i.
(c) North of a line between Stockholm (59 20' N. Lat.) and Tallinn (59 24' N.
Lat.) between 8th January and 5th May b.d.i.
(d) East of 22 E. Long, and south of 59 N. Lat. between 28th December and
5th May b.d.i.
3 Warranted not North of 70 N. Lat. other than voyages direct to or form any port
or place in Norway or Kola Bay.
4 Warranted no Behring Sea, no East Asian waters north of 46 N. Lat. and to enter
or sail from any port or place in Siberia except Nakhodka and/or Vladivostock.
5 Warranted not to proceed to Kerguelen and/or Croset Islands or south of 50 S.
Lat., except to ports and/or places in Patagonia and/or Chile and/or Falkland Islands,
but liberty is given to enter waters south of 50 S. Lat., if enroute to or from ports
and/or places not excluded by this warranty.
6 Warranted not to sail with Indian Coal as cargo:
(a) Between 1st March and 30th June, b.d.i.
(b) Between 1st July and 30th September, b.d.i. except to ports in Asia, not West
of Aden or East of or beyond Singapore.
419
ISM WARRANTY
Warranted that insured obtain requisite certificates from the concerned authorities in
compliance with the ISM code in respect of those vessels for which ISM code has been
made mandatory effective from 1st July 1998 failing which the insurance cover granted
under the policy shall exclude all liabilities arising from non-compliance of the ISM code.
420
14.5.87
AVERAGE DISBURSEMENTS CLAUSES (A)
Agreed by the Association of Average Adjusters and the Institute of London Underwriters
ASSURED
1 This insurance is effected for account of all parties concerned in the property and
freight at risk as interest may appear.
DURATION
2 2.1 This insurance shall attach as the disbursements costs and charges
specified in Clause 4 are incurred or as liability for advancing such
disbursements costs and charges is incurred.
Provided that no risk shall attach in respect of loss of or damage to the
property and freight at risk occurring prior to the agreed time of
attachment as stated herein.
2.2 This insurance shall continue until termination of the common maritime
adventure in accordance with the provisions for General Average in the
contract of affreightment or in the absence of such provisions in
accordance with the governing law and practice.
Provided that in the event of discharge, reshipment, transshipment, delay
or forwarding by any other vessel, craft or conveyance, prompt notice
shall be given to the Underwriters and an additional premium agreed if
required.
DEVIATION OR CHANGE OF VOYAGE
3 3.1 The vessel or forwarding vessel or craft has leave to call at any ports or
places in any order for any purpose whatsoever and to dry dock with or
without cargo on board
3.2 Held covered subject to prompt notice and to a reasonable additional
premium if required in the event of a change of voyage
SUBJECT-MATTER INSURED
4 This insurance is in respect of general average disbursements and salvage and
salvage charges inclusive of costs.
AMOUNT INSURED
5 5.1 The insurable value of the subject-matter shall be the amount finally
ascertained in respect of the disbursements costs and charges described
in Clause 4 plus the charges of insurance thereon.
5.2 The insurance shall be opened for the estimated amount of such
disbursemensts costs and chargs at the inception of the risk. If found to
be deficient this may be increased by not more than 25% subject to a
pro rata additional premium.
5.3 If the amount provisionally insured in accordance with Clause 5.2 a pro
rata return of premium shall be allowed.
421
COVER
6 6.1 Except as provided in Clause 11 and subject to the provisions of Clause 7
this insurance covers extinction or reduction of the contributory value of
the property as freight at risk arising from
6.1.1 the risks of loss of or damage of such property or freight
6.1.2 special charges or other expense incurred to avert or minimise
such loss or damage
6.1.3 contributions to any subsequent General Average
6.1.4 damage or injury to third parties during the period of this
insurance.
6.2 Contributory values to be calculated in accordance with the provisions for
General Average in the contract of affreightment or in the absence of
such provisions in accordance with the governing law and practice.
MEASURE OF INDEMNITY
7 In the event of loss covered by this insurance the measure of indemnity shall be
7.1 Where there are no contributory values, the amount insured.
7.2 Where the contributory valued calculated in accordance with Clause 6.2
have been reduced, such proportion of the insurable value as the
reduction bears to such contributory values as they would have been but
for the loss.
If the total of the disbursements costs and charges is not fully insured
hereunder the amount payable shall be reduced in proportion to the
under-insurance.
SEAWORTHINESS
8 Seaworthiness and fitness of vessel, container, craft and conveyances for the safe
carriage of the cargo is admitted.
BENEFIT OF INSURANCE
9 This insurance is without benefit of any other insurance.
LAW AND PRACTICE
10 This insurance is subject to English law and practice
The following clause shall be Paramount and shall override anything in this
insurance inconsistent therewith.
EXCLUSIONS
11 This insurance excludes any claim arising from
11.1 willful misconduct of the Assured but this exclusion shall not defeat a
claim hereunder by an innocent Assured
11.2 the risks excluded by Clause 6 of the Institute Cargo Clauses (A) 1/1/82,
except to the extent that such risks are covered by the Institute War
Clauses (Cargo) 1/1/82.
422
1.10.83
INSTITUTE VOYAGE CLAUSES HULLS
1 NAVIGATION
1.1 The Vessel is covered subject to the provisions of this insurance at all times
and has leave to sail or navigate with or without pilots, to go on trial trips and
to assist and tow vessels or craft in distress, but it is warranted that the Vessel
shall not be towed, except as is customary or to the first safe port or place
when in need of assistance, or undertake towage or salvage services under a
contract previously arranged by the Assured and / or Owners and / or
Managers and / or Charterers. This Clause 1.1 shall not exclude customary
towage in connection with loading and discharging
1.2 In the event of the Vessel being employed in trading operations which entail
cargo loading or discharging at sea from or into another vessel (not being a
harbour or inshore craft) no claim shall be recoverable under this insurance for
loss of or damage to the Vessel from such loading or discharging operations,
including whilst approaching, lying alongside and leaving, unless previous
notice that the Vessel is to be employed in such operations has been given to
the Underwriters and any amended terms of cover and any additional
premium required by them have been agreed.
2 CHANGE OF VOYAGE
Held covered in case of deviation or change of voyage or any breach of warranty as to

towage or salvage services, provided notice be given to the Underwriters immediately
after receipt of advices and any amended terms of cover and any additional premium
required by them be agreed.
3 ASSIGNMENT

become payable there under is to be binding on or recognised by the Underwriters
unless a dated notice of such assignment or interest signed by the Assured, and by the
assignor in the case of subsequent assignment, is endorsed on the Policy and the Policy
with such endorsement is produced before payment of any claim or return of premium
there under
4 PERILS
4.1 This insurance covers loss of or damage to the subject-matter insured caused
by
4.1.1 perils of the seas rivers lakes or other navigable waters

423

4.1.4 Jettison
4.1.5 Piracy
4.1.6 breakdown of or accident to nuclear installations or reactors
4.1.7 contact with aircraft or similar objects, or objects falling therefrom,
land conveyance, dock or harbour equipment or installation
4.1.8 earthquake volcanic eruption or lightning
4.2 This insurance covers total loss (actual or constructive) of the subject-matter
insured caused by

4.2.2 bursting of boilers breakage of shafts or any latent defect in the
machinery or hull
4.2.4 negligence of repairs or charters provided such repairers or charterers
are not an Assured hereunder
4.2.5 barratry of Master Officers or Crew, provided such loss or damage
has not resulted from want of due diligence by the Assured, Owners
or Managers
4.3 Master Officers Crew or Pilots not to be considered Owners within the
meaning of this Clause 4 should they hold shares in the vessel.
5 POLLUTION HAZARD
authority acting under the powers vested in it to prevent or mitigate a pollution hazard,
or threat thereof, resulting directly from damage to the Vessel caused by a peril
covered by this insurance, provided such act of governmental authority has not
resulted from want of due diligence by the Assured, the Owners, or Managers of the
Vessel or any of them to prevent or mitigate such hazard or threat. Master, officers,
crew or pilots not to be considered owners within the meaning of this clause 5 should
they hold shares in the Vessel
6 3/4THS COLLISION LIABILITY
6.1 The Underwriters agree to indemnify the Assured for three-fourths of any sum
or sums paid by the Assured to any other or persons by reason of the Assured
becoming legally liable by way of damages for
6.1.1 loss of or damage to any other vessel or property on any other

vessel
6.1.2 delay to or loss of use of any such other vessel or property thereon
424
6.1.3 general average of, salvage of, or salvage under contract of, any
such other vessel or property thereon where such payment by the
Assured is in consequence of the Vessel hereby insured coming into
collision with any other vessel
6.2 The indemnity provided by this Clause 6 shall be in addition to the indemnity
provided by the other terms and conditions of this insurance and shall be
subject to the following provisions:
6.2.1 Where the insured Vessel is in collision with another vessel and both
vessels are to blame then, unless the liability of one or both vessels
becomes limited by law,the indemnity under this Clause 6 shall be
calculated on the principle of cross-liabilities as if the respective
Owners had been compelled to pay to each other such proportion of
each other's damages as may have been properly allowed in
ascertaining the balance or sum payable by or to the Assured in
consequence of the collision
6.2.2 In no case shall the Underwriters' total liability under Clauses 6.1
and 6.2 exceed their proportionate part of three-fourths of the
insured value of the Vessel hereby insured in respect of any one
collision
6.3 The Underwriters will also pay three-fourths of the legal costs incurred by the
Assured or which the Assured may be compelled to pay in contenting liability
or taking proceedings to limit liability with the prior written consent of the
Underwriters.
EXCLUSIONS
6.4 Provided always that this Clause 6 shall in no case extend to any sum which
the Assured shall pay for or in respect of
6.4.1 removal or disposal of obstructions, wrecks, cargoes or any other

thing whatsoever
6.4.2 any real personal or personal property or thing whatsoever except
other vessels or property on other vessels
6.4.3 the cargo or other property on, or the engagements of, the insured
Vessel
6.4.5 pollution or contamination of any real or personal property or thing
whatsoever (except other vessels with which the insured Vessel is
in collision or property on such other vessels)
7 SISTER SHIP
Should the Vessel hereby insured come into collision with or receive salvage services
from another vessel belonging wholly or in part to the same Owners or under the same
management, the Assured shall have the same rights under this insurance as they
would have were the other vessel entirely the property of Owners not interested in the
Vessel hereby insured; but in such cases the liability for the collision or the amount
payable for the services rendered shall be referred to a sole arbitrator to be agreed
upon between the Underwriters and the Assured.
425
8.1 In the event of accident whereby loss or damage may result in a claim under
this insurance, notice shall be given to the Underwriters prior to survey and
also, if the Vessel is abroad, to the nearest Lloyd's Agent so that a surveyor
may be appointed to represent the Underwriters should they so desire
8.2 The Underwriters shall be entitled to decide the port to which the Vessel shall
proceed for docking or repair (the actual additional expense of the voyage
arising from compliance with the Underwriters' requirements being refunded
to the Assured) and shall have a right of veto concerning a place of repair or a
repairing firm.
8.3 The Underwriters may also take tenders or may require further tenders to be
taken for the repair of the Vessel. Where such a tender has been taken and a
tender is accepted with the approval of the Underwriters, an allowance shall
be made at the rate of 30% per annum on the insured value for time lost to
the extent that such time is lost solely as the result of tenders having been
taken and provided that the tender is accepted without delay after receipt of
the Underwriters' approval
Due credit shall be given against the allowance as above for any amounts
recovered in respect of fuel and stores and wages and maintenance of the
Master Officers and Crew or any member thereof, including amounts allowed
in general average, and for any amounts recovered from third parties in
respect of damages for detention and/or loss of profit and / or running
expenses, for the period covered by the tender allowance or any part thereof.
Where a part of the cost of the repair of damage other than a fixed deductible
is not recoverable from the Underwriters the allowance shall be reduced by a
similar proportion
8.4 In the event of failure to comply with the conditions of this Clause 8 a
deduction of 15% shall be made from the amount of the ascertained claim.
9.1 This insurance covers vessel's proportion of salvage, salvage charges and / or
general average, reduced in respect of any under-insurance, but it case of
general average sacrifice of the Vessel the Assured may recover in respect of
the whole loss without first enforcing their right of contribution from the
parties.
9.2 Adjustment to be according to the law and practice obtaining at the place
where the adventure ends, as if the contract of affreightment contained no
special terms upon the subject; but where the contract of affreightment so
provides the adjustment shall be according to the York-Antwerp Rules.
9.3 When the Vessel sails in ballast, not under charter, the provisions of the York-
Antwerp Rules, 1974 (excluding Rules XX and XXI) shall be applicable, and the
voyage for this purpose shall be deemed to continue from the port or place of
departure until the arrival of the Vessel at the first port or place thereafter
other than a port or place of refuge or a port or place of call for bunkering
only. If at any such intermediate port or place there is an abandonment of the
426
adventure originally contemplated the voyage shall thereupon be deemed to

be terminated.
9.4 No claim under this Clause 9 shall in any case be allowed where the loss was
not incurred to avoid or in connection with the avoidance of a peril insured
against.
10 DEDUCTIBLE
10.1 No claim arising from a peril insured against shall be payable under this
insurance unless the aggregate of all such claims arising out of each separate
accident or occurrence (including claims under Clauses 6, 9 and 11) exceeds .
. . . . . . . in which case this sum shall be deducted. Nevertheless the expense
of sighting the bottom after stranding, if reasonably incurred specially for that
purpose, shall be paid even if no damage be found. This Clause 10.1 shall not
apply to a claim for total or constructive total loss of the Vessel, or in the
10.2 Claims for damage by heavy weather occurring during a single sea passage
between two successive ports shall be treated as being due to one accident.
In the case of such heavy weather extending over a period not wholly covered
by this insurance the deductible that the number of days of such heavy
weather falling within be the proportion of the above deductible that the
number or days of such heavy weather falling within the period of this
insurance bears to the number of days of heavy weather during the single
sea passage. The expression "heavy weather" in this Clause 10.2 shall be
deemed to include contact with floating etc.
10.3 Excluding any interest comprised therein, recoveries against any claim which
is subject to the above deductible shall be credited to the Underwriters in full
to the extent of the sum by which the aggregate of the claim unreduced by
any recoveries exceeds the above deductible
10.4 Interest comprised in recoveries shall be apportioned between the Assured

and the Underwriters, taking into account the sums paid by the Underwriters
and the dates when such payments were made, notwithstanding that by the
addition of interest the Under writers may receive a large sum than they have
paid.
11.1 Incase of any loss or misfortune it is the duty of the Assured and their
servants and agents to take such measures as may be reasonable for the
purpose of averting or minimising a loss which would be recoverable under
this insurance
11.2 Subject to the provisions below and to Clause 10 the Underwriters will
contribute to charge properly and reasonably incurred by the Assured their
servants or agents for such measures. General average, salvage charges
427
(except as provided for in Clause 11.5) and collision defence or attack costs
are not recoverable under this Clause 11.
11.3 Measures taken by the Assured or the Underwriters with the object of saving,
protecting or recovering the subject-matter insured shall not be considered as
a waiver or acceptance of abandonment or otherwise prejudice the rights of
either party.
11.4 When expenses are incurred pursuant to this Clause 11 the liability under this
insurance shall not exceed the proportion of such expenses that the amount
insured hereunder bears to the value of the Vessel as stated herein, or to the
sound value of the Vessel at the time of occurrence giving rise to the
expenditure if the sound value exceeds that value. Where the Underwriters
have admitted a claim for total loss and property insured by this insurance is
saved, the foregoing provisions shall not apply unless the expenses of suing
and labouring exceed the value of such property saved and then shall apply
only to the amount of the expenses which is in excess of such value.
11.5 When a claim for total loss of the Vessels admitted under this insurance and
expenses have been reasonably incurred in saving or the expenses exceed the
proceeds, then this insurance shall bear its pro rata share of such proportion
of the expenses, or of the expenses in excess of the proceeds, as the case
may be, as may reasonably be regarded as having been incurred in respect of
the Vessel; but if the Vessel be insured for less than its sound value at the
time of the occurrence giving rise to the expenditure, the amount recoverable
under this clause shall be reduced in proportion to the under-insurance.
11.6 The sum recoverable under this Clause 11 shall be in addition to the loss
otherwise recoverable under this insurance but shall in no circumstances
exceed the amount insured under this insurance in respect of the Vessel.
12 NEW FOR OLD
13 BOTTOM TREATMENT
In no case shall a claim be allowed in respect of scraping grit blasting and / or other
13.1 grit blasting and / or other surface preparation of new bottom plates ashore
and supplying and applying any `shop' primer thereto.
132. grit blasting and / or other surface preparation of:
the butts or area of plating immediately adjacent to any renewed or refitted

plating damaged during the course of welding and / or repairs.

ashore,
428
133. supplying and applying the first coat of primer / anti-corrosive to those
particular areas mentioned in 13.1 and 13.2 above shall be allowed as part of
the reasonable cost of repairs in respect of bottom plating damaged by an
insured peril.
No claim shall be allowed, other than in general average, for wages and maintenance
of the Master, Officers and Crew, or any member thereof, except when incurred solely
for the necessary removal of the Vessel from one port to another for the repair of
damage covered by the Underwriters, or for trial trips for such repairs, and then only
for such wages and maintenance as are incurred whilst the Vessel is under way.
information or documents or in respect of the commission or charges of any manager,
agent, managing or agency company or the like, appointed by or on behalf of the
Assured to perform such services.
16.1 The measure of indemnity in respect of claims for unrepaired damage shall be
the reasonable depreciation in the market value of the vessel at the time this
insurance terminates arising from such unrepaired damage, but not exceeding
the reasonable cost of repairs.
16.2 In no case shall the Underwriters the liable for unrepaired damage in the
event of a subsequent total loss (whether or not covered under this insurance)
sustained during the period covered by this insurance or any extension
thereof.
16.3 The Underwriters shall not be liable in respect of unrepaired damage for more
than the insured value at the time this insurance terminates.
17.1 In ascertaining whether the Vessel is a constructive total loss, the insured
value shall be taken as the repaired value and nothing in respect of the
damaged or break-up value of the Vessel or wreck shall be taken into account.
17.2 No claim for constructive total loss based upon the cost of recovery and / or
repair of the Vessel shall be recoverable hereunder unless such cost would
exceed the insured value. In making this determination, only the cost relating
to a single accident or sequence of damages arising from the same accident
shall be taken into account
18 FREIGHT WAIVER
In the event of total or constructive total loss no claim to be made by the Underwriters
for freight whether notice of abandonment has been given or not.
429
19.1 Additional insurances as follows are permitted:
19.1.1 Disbursements, Managers' Commissions, Profits or Excess or

Increased Value of Hull and Machinery. A sum not exceeding 25%
of the value stated herein.
19.1.2 Freight, Chartered Freight or Anticipated Freight, insure for time. A

sum not exceeding 25% of the value as stated herein less any
sum insured, however described, under 19.1.1.
19.1.3 Freight or Hire, under contracts for voyage. A sum not exceeding
the gross freight or hire for the current cargo passage and next
succeeding cargo passage (such insurance to include, if required,
a preliminary and an intermediate ballast passage) plus the
charges of insurance. In the case of a voyage charter where
payments made on a time basis, the sum permitted for insurance
shall be calculated on the estimated duration of the voyage,
subject to the limitation of two cargo passages as laid down
herein. Any sum insured under 19.1.2 to be taken into account
and only the excess thereof may be insured, which excess shall be
reduced as the freight or hire is advanced or earned by the gross
amount so advanced or earned.
19.1.4 Anticipated Freight if the Vessel sails in ballast and not under
Charter. A sum of exceeding the anticipated gross freight on text
cargo passage, such sum to be reasonably estimated on the basis
of the current rate of freight at time of insurance plus the charges
of insurance. Any sum insured under 19.1.2 to be taken into
account and only the excess thereof may be insured.
19.1.5 Time Charter Hire or Charter Hire for Series of Voyages. A sum not
exceeding 50% of the gross hire which is to be earned under the
charter in a period not exceeding 18 months. Any sum insured
under 19.1.2 to be taken into account and only the excess thereof
may be insured, which excess shall be reduced as the hire is
advanced or earned under the charter by 50% of the gross
amount so advanced or earned but the sum insured need not be
reduced while the total of the sums insured under 19.1.2 and
19.1.5 does not exceed 50% of the gross hire still to be earned
under the charter. An insurance under this section may begin on
the signing of the charter.
19.1.6 Premiums. A sum not exceeding the actual premiums of all

interests insured for a period not exceeding 12 months (excluding
premiums insured under the foregoing sections but including, if
required, the premium or estimated calls on any club or War etc.
Risk insurance) reducing pro rata monthly.
430
19.1.7 Returns of Premium. A sum not exceeding the actual returns

which are allowable under any insurance but which would not be
recoverable thereunder in the event of a total loss of the Vessel
whether by insured perils or otherwise.
19.1.8 Insurance irrespective of amount against:

Any risks excluded by Clauses 20, 21, 22 and 23 below
19.2 Warranted that no insurance on any interests enumerated in the foregoing

19.1.1 to 19.1.7 in excess of the amounts permitted therein and no other
insurance which includes total loss of the Vessel P.P.I., F.I.A., or subject to
any other like term, is or shall be effected to operate during the currency of
this insurance by or for account of the Assured, Owners, Managers or
Mortgagees. Provided always that a breach of this warranty shall not afford
the Underwriters any defence to claim by a Mortgagee who has accepted this
insurance without knowledge of such breach

contained in this insurance inconsistent therewith
20 WAR EXCLUSION
20.1 War, civil war revolution, rebellion insurrection, or civil strife arising there
from, or any hostile act by or against a belligerent power
20.2 Capture, seizure arrest restraint or detainment (barratry and piracy excepted),
and the consequences thereof or any attempt thereat
20.3 derelict mines torpedoes bombs or other derelict weapons of war
21.1 strikers, locked-out workmen, or persons taking part in labour disturbances,

riots or civil commotions
22 In no case shall this insurance cover loss damage liability or expense arising from
22.2 any weapon of war and caused by any person acting maliciously or from a
political motive.
In no case shall this insurance cover loss damage liability or expense arising from any
weapon of war employing atomic or nuclear fission and / or fusion or other like reaction
or radioactive force or matter.
431
STAMP DUTY FOR MARINE' HULL INSURANCE.
The Ministry of Finance informed that stamp duty has been revised under
Section 7 of the Indian Stamp Act 1899 with a view to decrease transaction
costs and encourage economic activity.
Accordingly the stamp duty now chargeable on Hull Policies will be

as under:
Description Stamp Duty
For all Hull voyages -
Where the premium rate charged is 1/8th %

(a) Five paise
(0.125)
or less, the stamp duty regardless of the Sum

Insured
Any other case (where Premium rate exceeds

(b) Five paise
1/8%),
for every Rs. 1500/- or part thereof
For all Time Policies
In respect of every full sum of Rs.1000/- or part

(a) Ten paise
thereof
where the insurance shall be made or any time

not
exceeding 12 months.
432
DISTANCES BETWEEN PORTS OF INDIA AND PAKISTAN
Mumbai Mumbai
Bhavnagar 204 Bhavnagar
Jafrabad 148 76 Jafrabad
Nawa Bunder 152 96 20 Nawa Bunder .
Veraval 186 144 68 48 Veraval
Navi Bunder 237 191 115 95 . 47 Navi Bunder
Porbunder 250 206 130 110 62 15 Porbunder
Dwarka 300 256 180 160 112 65 50 Dwarka
Okha '330 286 . 210 190 . 142 95 80 24 Okha
Bedi Bunder 390 348 272 252 204 157 142 86 59 Bedi Bunder
Navlakhi. 417 375 299 279 231 174 169 113 86 38 Navlakhi
Kandla 412 370 294 274 226 169 164 108 81 33 19 Kandla
Mandvi 354 309· 233 213 165 118 103 48 24 (2 66 61 Mandvi
Karachi 498 456 380 360 312 265 250 200 191 236 262 257 198 Karach
i
DISTANCE BETWEEN PORTS OF

INDIA, SRILANKA AND BANGLADESH
Mumbai Mumbai
Marmagoa 223 Marmagoa
Mangalore 388 170 Mangalore
Cali cut 504 292 122 Calicut
Kochi ..
5M ' 376· 206 86 Kochi
Alleppey 610 406 236 116 30 Alleppey
Tuticorin 816 642 472 322 236 206 Tuticorin
Colombo .907 685 515 395 3QQ· 279 142 Colombo
Cuddalore 1397 1177 1017 ,;945 81t 787 659 530 Cuddalore
Pondicherry 1417 1197 1037 965 837 807 679 550 .16 Pondicherry
Chennai 1468 1248· 1088· 1016 888 85.8 '730 600 96 78 Chennai
Kakinada ..
1698 1478 1318 .1246 1118 1088 960 825 360 350 277 Kakinada
Vishakhapatna 1733 1513 1353 1281 1153' 1123 995 866 414 406 327 73 Vishakhapatnam
m
Paradip 1930 1710 1557 1440 1350 1320 1220 1090 705 690 570 '310 240 Paradip
Kolkata 2121 1901 1747 16.69 154-1 1511 1383 1253 838 826 783 522 442 200 Kolkata
Chittagong 2156 1947 1793 1715 1587 1557 1489 1299 948 '942. 891 645 577 310 367 Chittagong
..
433
DISTANCE BETWEEN ISLANDS AND

ISLANDS TO MAINLAND PORTS
COCHIN COCHIN
(in kilo metres) (in nautical miles)
Mangalore 500 270 Mangalore
Calicut 246 254 137 t33 Calicut
Andrott 228 257 293 158 139 123 Andrott
Amini 107 320 287 407 220 155 173 58 Amini

Kadmat 11 119 320 287 407 220 133 173 64 46 Kadrnat
Bitra 72 80' 183 383 333 483 261 180 207 99 43 39 Bitra
.
Chetlat 56 54 65 141 330 269 432 233 145 178 76 35 29 30Chetlat
Kirtan 37 89' 48 59 102 296 252 394 213 136 160 55 32 as 4820 Kirtan
Agatti 111 104 80 72 61 157 383 363 459 248 196 207 85 33 39 4356 60 Agatti
,
Kavaratti 57 115 126 124 76 65 119 346 352 404 218 190 187 64 35 41 67 68 62 31 Kavaratti
Suheli 54 81 ·169 176 167 126 115 165 389 404 446 241 218 210 89 62 68 90 . 95, ' 91 44 29 Suheli
Kalpeni 141 124 178 176 206 228 159 150 87 263 361 287 ' 155 195 142 47 81 86 123 111 95 96 67 76 Kalpeni
Minicoy 211 219 252 296 346 378 376 330 311 293 444 537 398 2-15 290 240 158 168 178 203 204 187 160 136 118 1141 Minicoy
(1 nautlcal mile = 1.852 kms.)*
434
TABLE SHOWING DISTANCE

BETWEEN PORTS ON THE COASTS OF
INDIAN, PAKISTAN, BANGLADESH, SRI LANKA & MYANMAR
(In approximate Nautical Miles from Port to Port)
Karachi Karachi
Mandvi 144 Mandvi
Jamnagar 233 42 Jamnagar
Okha 210 27 62 Okha
Dwarka 220 43 79 22 Dwarka
Porbunder 249 101 139 77 52 Porbunder
Navibandar 263 115 213 91 66 15 Navibandar
Mumbai 494 344 442 321 295 244 234 Mumbai
Marmagoa 583 540 576 509 496 444 429 223 Marmagoa
Mangalore 848 697 733 676 656 602 587 388 170 Mangalore
Cannanore 917 765 801 744 722 670 655 465 237 70 Cannanore
Tellicherry 926 774 810 753 731 679 664 470 247 80 10 Tellicherry
Badagara 934 782 818 761 739 687 672 479 257 88 18 9 Badagara
Kozhikode 957 805 841 784 762 710 695 500 250 111 41 33 24 Kozhikode
Ponnani 985 833 869 812 790 738 723 528 308 139 70 62 52 29 Ponnani
Kochi 1033 890 826 869 847 795 780 580 360 191 124 116 104 83 53 Kochi
Alleppey 1063 920 856 899 877 825 810 610 390 221 154 146 134 113 83 30 Alleppey
Quilon 1105 953 989 932 911 858 843 651 431 263 197 189 177 156 126 73 43 Quilon
Thiruvanthapuram 1138 986 1022 965 943 891 876 684 462 296 233 222 210 189 159 103 73 33 Thiruvanthapuram
Kolachel 1167 1015 1051 994 972 920 905 703 490 325 262 251 239 218 188 182 102 61 9 Kolachel
Tuticorin 1259 1110 1146 1089 1067 1015 1000 803 583 414 255 344 332 311 281 225 195 154 119 93 Tuticorin
Colombo 1334 1181 1218 1161 1139 1087 1072 869 649 477 423 415 403 384 355 305 272 230 196 171 148
Galle 1386 1234 1270 1213 1191 1139 1124 924 701 529 425 467 455 434 404 351 323 281 251 223 206
Trincomali 1637 1485 1517 1462 1442 1390 1375 1172 952 780 726 718 706 685 655 602 572 533 502 474 457
Kankesanturai 1754 1602 1634 1579 1559 1507 1492 1289 1069 897 843 834 823 802 772 708 686 650 619 591 574
Jafna 1799 1647 1650 1624 1604 1552 1537 1334 1104 943 888 879 868 847 817 763 731 696 664 636 619
Nagapatnam 1790 1638 1670 1615 1595 1543 1528 1325 1105 933 879 871 859 838 808 755 725 686 655 627 610
Karikal 1797 1645 1677 1622 1602 1550 1535 1332 1112 940 886 878 866 845 815 762 732 693 662 634 617
Cuddalore 1841 1689 1721 1635 1646 1594 1579 1376 1156 984 930 922 910 889 859 805 776 737 707 673 651
Pondicherry 1852 1701 1732 1677 1631 1608 1590 1387 1167 995 941 933 921 900 870 817 787 748 717 689 672
Chennai 1915 1763 1795 1740 1720 1689 1653 1453 1233 1061 1007 997 987 966 936 883 893 814 773 745 728
Kakinada 2131 1929 2011 1956 1936 1884 1869 1666 1446 1274 1220 1212 1200 1179 1149 1096 1066 1027 996 968 951
Vishakhapatnam 2172 2020 2052 1997 1977 1925 1910 1707 1487 1315 1261 1253 1241 1220 1190 1187 1107 1058 1037 1009 952
Bimlipantam 2183 2038 2065 2013 1993 1941 1926 1723 1503 1331 1277 1269 1257 1230 1206 1153 1123 1084 1053 1025 1008
Kalingapatnam 2219 2087 2099 2044 2025 1932 1907 1754 1534 1362 1308 1300 1288 1267 1237 1184 1154 1115 1081 1036 1039
Gopalpur 2284 2132 2164 2169 2089 2037 2022 1819 1599 1427 1373 1355 1353 1332 1301 1248 1210 1126 1149 1120 1103
Puri 2326 2176 2208 2153 2033 2081 2066 1863 1643 1471 1417 1409 1397 1376 1346 1293 1263 1124 1195 1165 1148
Kolkata 2405 2293 2325 2220 2250 2198 2183 1980 1760 1588 1534 1526 1514 1493 1463 1410 1390 1541 1310 1282 1265
Chittagong 2495 2453 2435 2430 2410 2338 2343 2140 1920 1748 1694 1686 1674 1653 1623 1570 1540 1501 1476 1402 1405
Akyab 2430 2335 2410 2455 2335 2283 2268 2065 1845 1623 1619 1611 1599 1578 1548 1495 1465 1426 1393 1367 1350
Bassein 2431 2229 2311 2256 2235 2184 2280 1966 1746 1574 1520 1512 1500 1479 1449 1396 1365 1327 1296 1287 1251
Rangoon 2554 2397 2431 2326 2336 2334 2284 2086 1866 1694 1640 1632 1620 1599 1569 1516 1486 1447 1416 1388 1371
Moulmein 2630 2449 2480 2485 2495 2353 2338 2135 1915 1743 1639 1681 1649 1618 1565 1535 1495 1455 1435 1437 1430
435
TABLE SHOWING DISTANCE

BETWEEN PORTS ON THE COASTS OF
INDIAN, PAKISTAN, BANGLADESH, SRI LANKA & MYANMAR
(In approximate Nautical Miles from Port to Port)
436
Colombo
70 Galle
25 Trincom
319 3 ali
1
37 2
436 0 6 Kankesanturai
1
41 7
481 5 1 45 Jafna
1
40 6
472 6 2 123 168 Nagapatnam
1
41 6
479 3 9 130 175 8 Karikal
2
45 1
523 7 4 177 221 57 49 Cuddalore
2
46 2
534 8 3 189 232 68 60 14 Pondicherry
2
52 8
500 4 4 253 297 139 132 90 77 Chennai
5
74 1
813 7 9 502 546 406 398 357 346 269 Kakinada
5
78 7
851 6 4 551 595 461 57 416 405 328 30 Vishakhapatnam
5
80 9
870 4 1 568 612 476 468 428 416 342 87 16 Bimlipantam
6
83 2
901 5 4 605 649 507 509 470 458 384 134 63 48 Kalingapatnam
6
89 9
965 9 1 674 718 587 579 541 520 454 205 134 118 71 Gopalpur
7
94 3
1010 4 6 725 669 642 634 597 585 511 265 194 178 131 61 Puri
8
10 6
1127 61 3 857 801 780 772 740 728 565 409 340 330 282 218 154 Kolkata
1
0
12 4
1387 21 3 1039 1003 976 968 937 927 839 639 561 545 560 485 377 243 Chittagong
9
11 6
1212 46 5 992 1036 939 931 905 895 835 629 563 549 495 395 343 269 163 Akyab
8
10 7
1113 47 2 932 976 997 890 883 873 810 654 643 635 603 576 510 466 413 100 Bassein
1
0
11 1
1233 57 0 1058 1102 1038 1030 1025 1017 971 815 785 779 754 735 683 623 503 412 148 Rangoon
1
0
12 5
1422 16 9 1107 1151 1005 1079 1074 1060 1026 802 803 835 829 752 735 675 652 484 207 74 Moulmein
437
438
DISTANCE FROM MUMBAI TO KARACHI AND SAURASHTRA PORTS
Mumbai Mumbai
Div 158 Div
Veraval 193 35 Veraval
Managalore 214 56 21 Managalore
Bhavnagar 233 75 40 19 Bhavnagar
Navibunder 241 83 48 27 8 Navibunder
Porbunder 256 98 63 42 23 15 Porbunder
Dwarka 308 150 115 94 75 67 52 Dwarka
Okha 343 185 150 120 110 102 87 35 Okha
Mandvi 360 202 167 146 127 119 104 52 17 Mandvi
Bedi bunder 390 232 197 176 212 149 134 42 47 30 Bedi bunder
Kandla 453 295 260 239 220 212 197 145 110 92 63 Kandla
Karachi 512 254 319 298 279 271 256 204 169 152 112 61 Karachi
DIRECT SEA DISTANCE TABLE FROM MUMBAI TO

Aden 1664 Geneva 4448 Naples 4286
Adelaide 5220 Gibralter 4951 Trieste 3613
Alexandria 3169 Glasgow 6325 New York 8500
Antwerp 5860 Hamburg 6620 Penang 2175
Auckland 7079 Havre 6165 Port Said 3059
Bunbury 4057 Hong kong 4032 Port Sudan 2310
Bangkok 3269 Hull 6393 Quilon 652
Basrah 1590 Kobe 5671 Ratnagiri 180
Batavia 2760 Lisbon 6047 San Francisco (Via 9250
Singapore)
Bremen 6605 Liverpool 6255 Rotterdam 6355
Brindisi 3968 London 6570 Shanghai 4852
Bristol 6111 Malta 4020 Singapore 2482
Bushire 1425 Manila 4258 Suez 2945
Cape Town 4650 Marseilles 4567 Sydney 6017
Djibouti 1762 Masqut 853 Thiruvananthapuram 688
Dunkirk 6260 Mauritius 2535 Venice 4247
Durban 3802 Melbourne 5558 Yokohama 6010
Treemantile 3980 Mombasa 2721
Mozambique 3435 Zanzibar 2517
439
-
,. ', "'
t
.It, .
. .rI
.',
',.-
:
.:
'
:,.,
'
\
.: :," ..
"
"
,.,'
.
»
"
,,11:
.••.
440
INTERNATIONAL SAFETY MANAGEMENT CODE FOR THE

SAFE OPERATION OF SHIPS AND FOR POLLUTION
PREVENTION (ISM CODE)
1. INTRODUCTION
1.1 The purpose of this Notice is to provide a brief

introduction to the ISM code, explain to which vessels the code
will apply and the date by which, for different vessel types, the
Code becomes mandatory this Notice also sets out the
Directorate's certification system.
1.2 The International Safety Management Code for the safe

operation of ships and for pollution prevention (ISM Code) was
made mandatory in 1994 by the adoption of chapter IX to SOLAS
1974.
1.3 The ISM Code sets an international standard for the safe
management and operation of ships and requires companies to
document and implement clear procedures, standards and
instructions for safety management ashore and afloat. The ISM
Code does not replace the requirement for compliance with
existing regulations.
1.4 The Code requires shipowners or management companies

to set up a safety Management system (SMS) embracing a safety
and environment protection policy, instructions and procedures
for safe operation of ships and protection of the environment,
levels of authority and levels of communication between the key
personnel, accident reporting, emergency preparedness, internal
audit and management review procedures.
1.5 The ISM Code will become mandatory for ships at two stages -
(a) Passenger ships including high speed craft

irrespective of tonnage, of oil, tankers, chemical tankers,
gas carriers, bulk carriers and high speed cargo crafts of 500
gross tonnage and "over, not later than 1 st July, 1998, and
(b) All cargo ships and mobile offshore drilling units of

500 gross tonnage and over, not later than 1st July, 2002.
441
2. CERTIFICATION
2.1 The application of the ISM Code will result in the issue of
two new certificates -
2. Document of Compliance (DOC) - a certificate to the

company following a successful assessment of the shore
side aspects of the Safety Management system (SMS). In
order to be assessed, a company must be able to
demonstrate that a SMS has been in operation for at least
three months, and at least three months on board at least
one ship of each ship type operated by the company.
(ii) Safety Management Certificate (SMC) - a certificate

issued to individual ships after on board assessment of the
SMS. The company must be able to demonstrate satisfactory
on board application of the company's SMS for minimum
three months before the assessment and be in possession of
a valid, DOC.'
3. VALlDITY
3.1 The document of Compliance (DOC) will be valid for a time

period of five years. The validity of the DOC is subject to annual
verifications within three months before or after the anniversary
date to confirm the effective functioning of the SMS. The Annual
audits will include the examining and verifying the correctness
of the statutory and classification records presented for at least
one ship of each type of which the DOC applies. Corrective
action and modification to the SMS carried out since the
previous verification would also be checked.
3.2 The Safety Management Certificate (SMC) will be valid for a per
The Safety Management Certificate (SMC) will be valid for a
period of five years. The validity of SMC is subject to at least
one intermediate verification; confirming the effective
functioning of the SMS and that the possible modification
carried out since the previous verification comply with the
requirements of the ·ISM Code. In certain cases, particularly
during the initial period of operation of the SMS, it may be
necessary to increase the frequency of the intermediate
verification. Additionally, the nature of non-conformities may
also provide a basis to increase the verification frequency.
442
3.3 The DOC or SMC may be revoked or withdrawn, if

periodical or intermediate verification is not carried out or there
is evidence of major non-conformity with the ISM Code.
Withdrawal of a DOC would result in invalidation of all the SMCs
associated with the DOC.
4. INTERIM DOC AND SMC
4.1 An interim DOC may be issued to facilitate initial implementation

of the ISM Code where a company is newly established or where
new ship types are added to an existing DOC.
4.2 The Directorate may issue interim DOC valid for not more than
twelve months to a company following a demonstration that the
company has a SMS that meets the objectives of section 1.2.3. of
the ISM Code. The company must demonstrate its plans to
implement a SMS meeting the full requirements of the ISM Code
within the period of validity of the Interim DOC.
4.3 An· interim SMC, valid for not more than six months may be
issued to new ship types on delivery.
443

The Marine Hull Insurance Manual PDF

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

The Marine Hull Insurance Manual PDF

Transféré par

Droits d'auteur :

Formats disponibles

MARINE HULL INSURANCE MANUAL

UNITED INDIA INSURANCE COMPANY LIMITED

MARINE HULL INSURANCE MANUAL

Insurance is an essential ingredient in commercial trade. In the increasingly

It is necessary to have a reasonable knowledge of the types of ships, basic ship

We hope this manual will be of help to the operating offices.

Ms.Parvathy Eswaran, Consultant

GENERAL RULES AND REGULATIONS 5

SECTION 1 UNDERWRITING OF OCEAN GOING VESSELS 8

UNDERWRITING OF INLAND VESSELS

SECTION 3 UNDERWRITING OF INLAND DREDGERS 69

SECTION 5 UNDERWRITING OF SAILING VESSELS. 102

SECTION 6 BUILDER‘S RISK INSURANCE 121

SECTION 7 SHIP REPAIRER‘S LIABILITY INSURANCE. 130

SECTION 8 CHARTERER‘S LIABILITY INSURANCE 140

SECTION 9 SHIP BREAKING INSURANCE 147

OIL AND ENERGY INSURANCE AND OFF

SECTION 11 PORT PACKAGE INSURANCE 176

SECTION 12 UNDERWRITING OF WAR AND SRCC RISKS. 185

SECTION 13 UNDERWRITING OF VOYAGE INSURANCE 192

INSURANCE OF JETTIES (WITH OR

UNDERWRITING OF YACHTS AND

SECTION 16 MARINE HULL INSURANCE CLAIMS 218

BASIC STRUCTURE OF A SHIP

Knowledge of the basic structure of a ship would be helpful for hull

A collision bulkhead is a watertight partition in a ship, perpendicular to the

A propeller is a mechanical device for propelling a ship and consists of a

MARINE HULL INSURANCE COVERS:

General Average sacrifice and contribution: The law of general average is a

Salvage, Salvage charges : The cost incurred by a third party in saving

normally treated as general expenditure and payable under marine hull

Sue and labour expenses: charges or expenses reasonably incurred by the

1/4th collision liability not payable under Marine Hull insurance

GENERAL RULES AND REGULATIONS

2. No cover should be granted to ship owners for bunkers, bonds, stores,

Marine Insurance for vessels owned by foreign shipping Companies

(B) PAYMENT OF CLAIMS

The remittances are being made to the non-resident beneficiary

4. Hull, Machinery and Accessories of a Vessel shall be deemed to be one

7. POLICIES ISSUED TO OWNERS/CHARTERERS, ETC.

In case of a Bareboat Charter, the Hull Policy will be issued to the

9. No cover shall be granted only for Outboard Engine fitted to a Ship.

10. MINIMUM PREMIUM

11. PROPOSAL FORM

Depending on the type of vessel/insurance cover, proposal forms have

12. VALUATION REPORT/CERTIFICATE

Since marine hull insurances are generally agreed valued policies it is

13. POLICY FORMS

It is mandatory to attach the printed clauses/warranties to the policy.

PLEASE NOTE THAT THE RATES/TERMS/CONDITIONS GIVEN IN THE

Hull and Machinery policy:

Institute Time Clauses Hulls dt 1.10.83

Institute Time Clauses Hulls dt 1.10.83 extended to include

Institute Time Hulls Port Risks dt 20.7.87 (applicable only where

Institute Time Clauses-Hulls TL, GA, 3/4ths Collision liability

Increased Value/Disbursements Policy

Freight Insurance Policies

2. STANDARD TRADING WARRANTIES

(B) Institute Warranties dated 1-7-1976 but trading limited to East

(C) Institute Warranties dated 1-7-1976 but trading limited to East

(D) Institute Warranties dated 1-7-1976 but trading limited to not

(E) Institute Warranties dated 1-7-1976 but trading limited to not