AHLI∆SURANSI .

COM

1/10/83 (FOR USE ONLY WITH THE NEW MARINE POLICY FORM)

INSTITUTE VOYAGE 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, 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 all sea
from 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 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
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
4.1.1. perils of the seas rivers lakes or other navigable waters
4.1.2. fire, 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 thereform, land conveyance, dock or harbour
equipment or installation
4.1.8. earthquake volcanic eruption or lightning
4.2. This insurance covers loss of or damage to the subject-matter insured caused by
4.2.1. accident 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
4.2.5.1. provided such loss or damage has not resulted from want of due diligence by the Assured, Owners or
Managers or Superintendents or any of their onshore management.
4.3. Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause 6 should
they hold shares in the Vessel

5 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 that 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.
AHLI∆SURANSI .COM

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 person 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
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 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:
6.2.1. where the insured Vessel is in collisions 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.
6.2.2. 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.
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 contesting liability or taking proceedings to limit liability, with the
prior written consent of the Underwriters.
EXCLUSIONS
6.4. Provided always that this Clause 8 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 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
6.4.4. loss of life, personal injury or illness
6.4.5. pollution or contamination of any real or personal property or thing whatsoever (except other vessels
with which the insured Vessels is in collision or property on such other vessels)

7. SISTERSHIP
Should be Vessel hereby come into collision with or receive salvage services from another vessel belonging
wholly or in part 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.

8. NOTICE OF CLAIM AND TENDERS

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 of
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
between the despatch of the invitation to tender required by the 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 agree 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.
AHLI∆SURANSI .COM

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 10 a deduction of 15% shall be made
from the amount of the ascertained claim.

9. GENERAL AVERAGE AND SALVAGE

9.1. 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.
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 be 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 adventure originally contemplated the voyage
shall thereupon be deemed to be terminated.
9.4. 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.

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 Clause 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 event of such a claim, to any associated claim under
Clause 11 arising from the same accident or occurrence.
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 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 10.2 shall be deemed to include contact with floating ice.
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 additional of interest the Underwriters may receive a larger sum than they have
paid.

11. DUTY OF ASSURED (SUE AND LABOUR)

11.1. 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.
11.2. Subject to the provisions below and to Clause 10 the Underwriters will contribute to charges property and
reasonably incurred by the Assured their servants or agents for such measures. General average salvage
charges (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 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
AHLI∆SURANSI . COM

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 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.
11.6. 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.

12. NEW FOR OLD

12.1. Claims payable without deduction new for old.

13. BOTTOM TREATMENT

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
13.1. gritblasting and/or other surface preparation of new bottom plates ashore and supplying and applying
any “shop” primer thereto,
13.2. 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 or plating damaged during the course of fairing, either in place of shore,
13.3. 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.

14. 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 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.

15. 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.

16. UNREPAIRED DAMAGE

16.1. The measure of indemnity in respect of claims for unrepaired damage shall be the reasonable depreciation
in the market value of 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 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. CONSTRUCTIVE TOTAL LOSS

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
AHLI∆SURANSI .COM

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.

19. DISBURSEMENTS WARRANTY

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, insured 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 contract 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 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 not exceeding the
anticipated gross freight on next cargo passage, such sum to be reasonably estimated on the basis of the
current arte 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.
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 23, 24, 25 and 26 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 terms, 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.

The following clauses shall be paramount and shall override anything contained in this insurance inconsistent
therewith.

20. WAR EXCLUSION

In no case shall this insurance cover loss damage liability or expense caused by
20.1. war civil war revolution rebellion insurrection, or civil strife arising therefrom, 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.
AHLI∆SURANSI .COM

21. STRIKES EXCLUSION

In no case shall this insurance cover loss damage liability or expense caused by
21.1. strikes, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions.
21.2. any terrorist or any person acting from a political motive.

22. MALICIOUS ACTS EXCLUSION

In no case shall this insurance cover loss damage liability or expense arising from
22.1. the detonation of an explosive
22.2. any weapon of war
and caused by any person acting maliciously or from a political motive

23. NUCLEAR EXCLUSION

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 fussion or other like reaction or radioactive force or matter.

_________________________________

CL.285 Sold by Witherby & Co.Ltd., London_