Underneath you will find the explandatory memo for the Rule changes. Top right you will find the complete Charterers' Rules for 2012 which includes list of correspondents.
NEW RULE 4 - REINSURANCE
"The Association shall have the right in its sole discretion to effect on behalf of the Association the reinsurance or ceding of any risks insured by the Association with such reinsurers and on such terms as the Association shall consider appropriate."
This is a similar Rule to other Clubs and is simply stating expressly what the underlying practice is.
NEW_RULE 34 SUB RULES - MISCELLANEOUS
"34.5
Subject to Rule 52.4, all monies recovered for an Assured with Defence Cover shall be paid over to the Assured except that the Association may deduct from such monies and retain any amount due to the Association from the Assured."
"34.6
Where an Assured settles or compromises a claim within his Defence Cover without making any provision as to costs without the agreement of the Association, the Association shall determine what part of that settlement agreement shall be Redeemed attributable to costs and for which the Assured is liable to reimburse the Association."
These Sub-Rules are similar to the provisions of other Clubs.
AMENDED RULE 37 - POLICY LIMIT OF REINSURANCE RECOVERIES
"37.1
The liability of the Association in respect of all claims arising out of one event including any costs, fees and expenses shall in no circumstances exceed the amount stated in the Certificate of Insurance. Without prejudice to the generality of Rule 4, the Association may reinsure in whole or in part the risk or risks insured by the Association, and where such reinsurance is arranged the Assured shall only be entitled to recover any amount in excess of USD10 million or 10% of the cover limit, whichever is lower, as and when such funds are received by the Association from the reinsurer(s). The policy limit shall apply to claims, costs, fees and expenses arising out of one event whether they are made by more than one Assured and Co-Assured."
The underlined words have been introduced to have a link to the new Rule 4 mentioned above.
NEW RULE 42 SUB RULES - MISCELLANEOUS EXCLUSIONS
"42.1.1
After "wilful misconduct of the Assured" insert " (as defined in Appendix 1). "
A standard definition of "wilful misconduct" has been introduced in Appendix 1.
"42.1.3
Delete in line 1:
"is...."
And replace with:
"which the Assured knew to be..."
This is a "softening" of the current Rule and under the new provision actual knowledge of an unlawful, imprudent etc. carriage or trade or voyage is required of an Assured before the exclusion will apply.
"42.1.14
"a default judgment or default award."
This new Sub-Rule is similar to the provisions of other Clubs.
NEW RULE 47 SUB_RULE - CLAIMS HANDLING
"47.5
The Assured shall obtain information, make calculations, attend meetings, and otherwise provide assistance, at the Assured's own expense, where such work can be performed by him or by persons employed by him or regularly engaged by him to perform such services."
This new Sub-Rule is similar to the provisions of other Clubs.
NEW RULE 50 - EXCLUSION OF LIABILITY
"1. The Association shall not be liable for errors or omissions in the handling of a case which may be committed by the Association's employees or by lawyers, advisers or other experts engaged by the Association on behalf of the Assured.
2. The Association shall not be liable for monies which are lost, having being collected by persons engaged by the Association on behalf of the Assured, or entrusted to such persons.
3. The Association shall not be liable to pay interest on any sums due from it to the Assured."
This new Rule is similar to the provisions of other Clubs.
NEW RULE 51 - ASSIGNMENT
" 1. The Assured shall not assign or otherwise transfer its rights under its contract of insurance with the Association or otherwise arising pursuant to these Rules, save as provided in Rule 51.2.
2. The Association may, in its absolute discretion, consent to an assignment or transfer by an Assured of its rights referred to in Rule 51.1, subject to such terms and conditions as the Association deems fit and subject to the Association's right to deduct from any sum due or to become due from the Association to any assignee or transferee of the Assured's rights such amount as the Association may estimate to be sufficient to discharge any existing or anticipated liability of the Assured to the Association. "
This new Rule is similar to the provisions of other Clubs.
NEW RULE 52 SUB RULES - WAIVER AND RECOVERY
"52.3
Where the Association makes any payment in respect of any liability, loss, expense or costs, the Association shall be subrogated to any rights of recourse which the Assured, co-Assured or affiliate may have against any third party in respect of the liability, loss, expense or costs."
"52.4
Where the Association has made a payment in respect of any liability, loss, expense or costs to or on behalf of the Assured, co-Assured or affiliate, the whole of the recovery from a third party in respect of that liability, loss, expense or costs shall be credited and paid to the Association up to an amount equivalent to the payment made by the Association to or on behalf of the Assured, co-Assured or affiliate plus any costs incurred by the Association in connection with the right of recourse."
"52.5
The balance (if any) of any recovery shall be credited and paid to the Assured up to any amount equivalent to any deductible."
"52.6
The remaining balance (if any) shall be apportioned between the Association and the Assured in proportion to the respective amounts credited to them under Rule 52.4 - Rule 52.5."
These new Sub Rules are similar to the provisions of other Clubs.
AMENDED RULE 56 SUB RULE - TERMINATION OF COVER BY THE ASSOCIATION
"56.1.5
Delete in line 2: "on such notice in writing as it may decide." and replace with: "in its sole discretion". Insert after "terminate" in line 2: " with immediate effect ".
These amendments are simply reflecting the underlying rights that the Association has and make the position more clear.
APPENDIX 1 DEFINITIONS
In P&I definition delete: "Rules 9 to 23" and replace with "Rules 12 to 26 ."
Insert the following new definition:
"WILFUL MISCONDUCT
An act intentionally done, or a deliberate omission by the Assured, with knowledge that the performance or omission will probably result in injury, loss or damage, or an act done or omitted in such a way as to allow an inference of a reckless disregard of the probable consequences."
Additional Rules necessitated a change of the Rules' numbering. As mentioned above under Rule 42.1.1 this definition of "wilful misconduct" is standard and used by other Clubs.
