Changes to British Marine Terms and Conditions for 20.02.2017

18 Jan 2017

British Marine has made changes to the expiring 2016 P&I terms and conditions, which are now reflected in the 2017 edition.

1) 7. Casualty indemnity to crew
 The clause is renamed “”Compensation following a Casualty” and now includes the liabilities to pay damages / compensation to passengers arising from a casualty – originally under 36. “Passenger Vessel(s)”.
 The new clause is as follows:
7. Compensation following a Casualty
7.1 Liability for wages or compensation payable to any member of the Crew for a maximum period of 60 days, following the actual or constructive or compromised total loss of the Insured Vessel(s) which necessitates the termination of the employment of any member of the Crew under the terms of any contract of service or employment or Collective Agreement, or other legal obligation.
7.2 Liabilities incurred by the Assured arising under a contract of carriage for reward to pay damages or compensation to passengers on board an insured vessel arising as a consequence of a casualty to the insured vessel, including the costs of forwarding passengers to destination or return to port of embarkation and of maintenance of passengers ashore.

Any claim in respect of such liabilities shall be subject to the following provisions:
7.2.1 The terms of the passage ticket or other contract between the passenger and the Assured have been approved by the Insurers in writing.
7.2.2 There shall be no cover under this policy in respect of liabilities incurred as a result of the carriage of any passenger by air, except when such liability occurs during repatriation by air of injured or sick passengers, or of passengers following a casualty to the insured vessel.
7.2.3 There shall be no cover under this policy in respect of liabilities incurred when a passenger is on an excursion from the insured vessel where either: a separate contract has been entered into by the passenger for the excursion, whether or not with the assured; or the Assured has waived any rights of recourse against any sub-contractor or other third party in respect of the excursion.
Cover under 7.2 is subject to the provisions at Clause 18 in respect of the personal effects of any Passenger and at Clause 77.5 of this policy. The Assured shall also be covered under Clauses 1.3, 2.3, 3.3, 4.3, 10 and 18 in respect of Passengers.

Reason: Under the 2016 Terms and Conditions (and prior) liabilities to pay damages or compensation to Passengers was an optional cover when agreed by British Marine in writing. This change means cover for these liabilities no longer requires approval, and now falls under standard P&I cover.

2) 36. Maritime Labour Convention 2006 (MLC) Abandonment Indemnity Clause

 Insertion of new clause as follows:
1. It is hereby agreed that in the event of relinquishing of possession or control of the Insured Vessel by the Assured, the application of clause 49.5 of this policy (termination of cover of the Insured Vessel without notice) shall be suspended for a period of 120 days, save where there is foreclosure by a mortgagee. This suspension shall apply solely for the purposes of discharging the legal liabilities referred to in Clauses 2 & 3 below.
2. Suspension pursuant to Clause 1 above shall be for the sole purpose of the Insurer discharging legal liabilities of the Assured in respect of :-
2.1 Medical and Funerary Expenses pursuant to Clause 3 of this policy;
2.2 Repatriation of crew and personal luggage transportation costs;
2.3 Accommodation and food costs;
2.4 Outstanding wages
where such liability would otherwise fall to be met by the competent authority of an Assured that has ratified the MLC to Standard A2.5.5(a) and Guidelines B2.5.1.3(a)-(e), and only to the extent that such competent authority would otherwise be liable to meet such liabilities, costs and expenses.
3. Any payment in respect of a liability, costs or expense pursuant to Clause 2 above shall be made on behalf of the Assured, and the Assured shall be liable to reimburse the Insurer, for all costs and expenses paid pursuant to Clauses 2.3 and 2.4 above.
4. There shall be no cover under this MLC Abandonment Clause 30 days after notice of termination has been given in accordance with Regulation 2.5, Standard A2.5.2.11 or Regulation 4.2, Standard A4.2.12.

Reason: The insertion of this clause responds to the amendments to the Maritime Labour Convention 2006. The Assured may be covered under this clause if agreed by British Marine in writing.

3) 55. Claims notification, Provision of Information and Recovery

 Insertion of new paragraph as follows:
55.2 Unless the Insurer in its discretion decides otherwise, it is a condition precedent to the Assured’s right to recover under the Policy in respect of any liabilities, costs or expenses that he shall first have discharged or paid the same out of funds belonging to him unconditionally and not by way of a loan or otherwise.

Reason: Due to the repeal and replacement of the Third Parties (Rights Against Insurers) Act 1930 with the 2010 Act, British Marine has assessed the potential enhanced exposure against direct action by third parties. As a result it has been decided to implement this paragraph on the right of recovery which we believe to be in the best interest of the Insurer and the Assured.

4) 50. Premium

 50.5 and 50.5.1 – Laid up Return – The words “up to” are being inserted prior to 70% and 50% respectively.