8th September, 2008 | 16:16:54 BST

Publications

Circulars: SHIP MANAGERS - Ship Management Terms & Conditions

Ship Management Terms & Conditions

1st June 1993

[Alterations have been highlighted below]

  1. It is understood and agreed that this insurance covers the management of those ships declared by the Member. Any additional ships managed by the Member must also be declared to the Club. The management contracts of these additional ships will be deemed to be on terms no more onerous than those of the BIMCO "Shipman" form unless otherwise agreed by the Managers.
  2. It is hereby understood and agreed that this insurance excludes any liability on the part of the Member for the consequences of commercial misjudgment whether in contract or in tort. [The second half of this clause, dealing with liability for the collection of freight and hire, has been deleted].
  3. Crew Claims
    This insurance excludes any liability of the Member for any claims by or on behalf of crew engaged, employed or deemed to be employed by the Member, or by their dependants and relatives for death, injury or illness or for any matter relating to their employment including but not limited to wages, social security, redundancy monies, sickness benefit, travelling costs or repatriation costs.
  4. Co-Assurance
    1. (i) It is a condition of this insurance that the Member shall* be named as a co-assured in all insurances taken out in respect of any ship under the management of the Member (including but not limited to full P&I cover provided under the Rules of a Club which is a member, or which is reinsured by a member, of the International Group and hull policies on terms equivalent to those of Lloyd's Marine Policy MAR Form 1/1/82 with the Institute Time Clauses Hulls 1/10/83 attached); and

      (ii) in relation to any liability to which such other insurance applies, this insurance shall take effect, if at all, as excess cover only, notwithstanding any provision of the P&I or other insurance to the contrary and provided always that such other insurance is valid and effective.

      (iii) For the avoidance of doubt, it is also understood and agreed that this insurance shall not extend to cover any deductible which applies in relation to any such other insurances in which the Member is named.

      * ["use his best endeavours to" has now been removed from this clause, as co-assurance is now universally understood to be mandatory].
  5. Strikes and Boycotts
    This insurance excludes any liability of the Member arising out of industrial disputes of any kind, including but not limited to strikes, boycotts and blacking of ships under his management unless it is conclusively proved that such activity was instigated by a crew member engaged by the Member and that there was a failure by the Member to exercise due care and diligence in relation to the engagement of such a person.
  6. Classification
    Unless and to the extent that the Directors otherwise decide, this insurance excludes any liability of the Member arising from any breach of the Rules, recommendations and requirements of the Classification Society with which the ship under his management is classed.
  7. Bunkers
    It is hereby understood and agreed that this insurance excludes all claims against the Member for loss, damage, delay or consequential losses caused by the supply of bad or inferior quality bunkers to the extent that such claims arise as the result of the Member acting otherwise than as the agent of his principal in arranging bunker stems for ships under his management.

Circulars by Type