Institute Time Clauses Hulls 1/11/95 Cl. 280 (ITC)
(FOR USE ONLY WITH THE CURRENT MAR POLICY FORM)
This insurance is subject to English law and practice
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. This insurance shall not be prejudiced by reason of the Assured entering into any contract with pilots or for customary towage which limits or exempts the liability of the pilots and/or tugs and/or towboats and/or their owners when the Assured or their agents accept or are compelled to accept such contracts in accordance with established local law or practice.
1.3. The practice of engaging helicopters for the transportation of personnel, supplies and equipment to and/or from the Vessel shall not prejudice this insurance.
1.4. In the event of the Vessel being employed in the trading operations which entail cargo loading or discharging at sea from or onto 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 previously 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.
1.5. In the event of the Vessel sailing (with or without cargo) with the 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 1.5. shall affect claims under Clauses 8 and/or 10.
Should the Vessel at the expiration of this insurance be at sea and in distress or missing, she shall, provided notice be given to the Underwriters prior to the expiration of this insurance, be held covered until arrival at the next port in good safety, or if in port and in distress until the Vessel is made safe, at a pro rata monthly premium.
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 Underwriters immediately after receipt of advices and any amended terms of cover and any additional premium required by them be agreed.
4.1. It is the duty of the Assured, Owners and Managers at the inception of and throughout the period of this insurance to ensure that
4.1.1. the Vessel is classed with a Classification Society agreed by the underwriters and that her class within that Society is maintained,
4.1.2. and recommendations requirements or restrictions imposed by the Vessels Classification Society which relate to the Vessels seaworthiness or to her maintenance in a seaworthy condition are complied with by the dates required by that Society.
4.2. In the event of any breach of duties set out in Clause 4.1. above, unless the Underwriters agree to the contrary in writing, they will be discharged from their liability under this insurance as from the date of the breach provided that if the Vessel is at sea at such date the Underwriters discharge from liability is deferred until arrival at her next port.
4.3. Any incident condition or damage in respect of which the Vessels Classification Society might make recommendations as to repairs or other action to be taken by the Assured, Owners or Managers must be promptly reported to the Classification Society.
4.4. Should the Underwriters wish to approach the Classification Society directly for information and/or documents., the Assured will provide the necessary authorisation.
This Clause 5 shall prevail notwithstanding any provisions whether written typed or printed in this insurance inconsistent therewith.
Unless the Underwriters agree to the contrary in writing, this insurance shall terminate automatically at the time of
5.1. change of the Classification Society of the Vessel, or change, suspension, discontinuance, withdrawal or expiry of her Class therein, or any of the Classification Societys periodic surveys becoming overdue unless an extension of time for such survey be agreed by the Classification Society, 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 or where a periodic survey becoming overdue has resulted from loss or damage covered by Clause 6 of this insurance or which would be covered b 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 or in the case of a periodic survey becoming overdue without the Classification Society having agreed an extension of time for such survey.
5.2. 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, 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 continues 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 provided that 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.
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