1. DEFINITIONS
a) ‘You and your’ refer to the insured named on the declaration page and any
person who possesses any legal or beneficial interest in any corporation,
trust or entity either declared as the owner of the scheduled vessel or as
an additional assured.
b) ‘We, us and our’ refer to the insurers named on the declaration page or accompanying schedule of insurers.
c) ‘Covered person’ means you, and/or any person detailed on your application form which has been submitted and approved by us, provided that person has been declared to us as an operator of the scheduled vessel. This does not include either a paid captain and/or crew, or a person or organisation, or their employee or agent, operating a marina, boatyard, yacht club, charter operation, sales agency, refuelling dock or similar organisations, unless you have our agreement in writing to the contrary.
d) ‘Scheduled vessel’ means the vessel described on the declaration page, including machinery, electrical equipment, sails, masts, spars, rigging, and all other equipment normally required for the operation and maintenance of the vessel and situate on the scheduled vessel ,which would normally be sold with the vessel. This does not include the vessel’s life raft, tender or dinghy unless the same as is declared on the declaration page, nor does it include any items being stored on premises other than onboard the scheduled vessel.
e) ‘Trailer’ refers to the insured vessel’s trailer, used exclusively for that purpose.
f) Words of a masculine gender are deemed to encompass the female gender and vice versa. Words in the singular are deemed to encompass the plural and vice versa.
g) ‘Navigational limits’ means all waters as limited and shown on the declaration page unless mutually agreed by us and amended in writing.
h) ‘Salvage charges’ means those reasonable charges and expenses which are incurred by you if necessary to prevent damage, injury or loss of life or to prevent or minimise any further loss or damage covered by Section “A” of your insuring agreement.
i) ‘Deductible’ deductible is the first amount of any claim, which must be paid by you. If a deductible is applicable to any section of your insuring agreement the amount will be shown on the declaration page and this amount will be deducted from the amount payable on each admissible claim.
j) ‘Bodily injury/property damage’ means bodily injury or property damage occurring during the period of this insuring agreement arising from ownership and/or use of the vessel.
k) ‘Seaworthy’ means fit for the Scheduled Vessel’s intended purpose. Seaworthiness applies not only to the physical condition of the Hull, but to all its parts, equipment and gear and includes the responsibility of assigning an adequate crew. For the scheduled vessel to be seaworthy, it and its crew must be reasonably proper and suitable for its intended use.
l) ‘Family’ means any person related to you by blood, marriage or adoption, including wards and foster children.
m) ‘Personal Property’ means property purchased and owned by you, any covered
person, any member of your family, provided that such property is situated
on the vessel insured hereunder at the time of the loss, excluding any item
that is deemed to be part of the Scheduled vessel.
n) ‘Race or speed trial’ means any event involving speed and/or of a competitive
nature, including, but not limited to, Regattas and/or Rallies. "Preparing
for a race or speed trial," means any navigation of the vessel necessary
to ensure eligibility of either you or your vessel to participate in a race
or speed trial.
o) ‘Named Windstorm’ damage is damage relating to or resulting from a named
windstorm or any numbered tropical weather pattern from the time the “named
windstorm” or numbered tropical weather pattern impacts the area and until
72 hours later.
The area of the ‘named windstorm’ or tropical weather pattern is an area encompassed
by a circle of radius not exceeding 150 nautical miles from the path of the
storm’s forward travel.
p) ‘Divers’ means any person using underwater artificial breathing apparatus, and/or submersible mechanical or electrical device including, but not limited to, Submarines, Diving Bells and/or Diving Suits.
q) ‘Operating’ means to navigate or to be in physical control of or to be at the helm of the scheduled vessel.
r) ‘Sinking’ means when the vessel has sunk as far as is physically possible for the vessel to sink, and is totally submerged underwater.
s) ‘Abandoned’ means where you have left the scheduled vessel, unattended, whether intentionally or otherwise, whether written notice of the same has been tendered or otherwise, and where there is no damage to the scheduled vessel that would give rise to a payable claim hereunder.
t) ‘Constructive’ or ‘Compromised’ Total Loss means where we determine that either the reasonable cost of repairs exceed the sum insured, or where the net value being the sum insured, less the residual value of the scheduled vessel, is exceeded by or in our opinion is likely to be exceeded by the reasonable cost of repairs.
2. INSURING AGREEMENT
This is a legally binding insurance contract between you and us, incorporating in full the application form signed by you. We will provide the insurance coverage described in this insuring agreement, in return for payment to us of the premium due and compliance by covered persons with the provisions, conditions and warranties of this insuring agreement.
3. Coverage A, Hull, Machinery, Equipment and Dinghy
If a sum insured is shown for Section A of the insuring agreement declaration page, we provide coverage for accidental physical loss of, or damage to the scheduled vessel which occurs during the period of this insuring agreement and within the limits set out in the insuring agreement declarations page, subject to the insuring agreement provisions, conditions, warranties, deductibles and exclusions.
Reasonable expenses incurred by you in attempting to minimise or mitigate a loss incurred and covered by this insuring agreement will be paid by us. These will be paid in addition to the sum insured under Sections A and F. Our maximum liability for these expenses is 50% of the sum insured under Section A of this insuring agreement less the deductible shown under Sections A and F.
We will pay salvage charges incurred by you in pursuance of ‘your duties in the event of a loss’ as set out in Section 10 of this insuring agreement, up to the limit of the sum insured under Section A of this insuring agreement less the deductible shown under Section A.
If the Insured vessel shall come into collision with any other ship or vessel
and you, in consequence thereof, become legally liable to pay by way of damages
to any other person or persons any amount not exceeding the agreed value of
the vessel hereby insured, we will reimburse you such amount paid, up to the
agreed value hereby insured, less the deductible shown under Section A.
In no case shall the foregoing clause extend to cover any amount you become
legally liable to pay in respect of removal of obstructions under statutory
powers or for injury or damages to Harbours, Wharves, Piers, Stages and similar
structures consequent on such collisions, or in respect of the cargo or engagements
of the Insured vessel or for loss of life or personal injury, or for loss
of income, value or otherwise of any other vessel or person.
A deductible of 10% of the agreed hull value of the scheduled vessel and/or equipment shall apply to each theft loss, including constructive or total loss of the Scheduled vessel. However a deductible of 5% of the agreed hull value of the scheduled vessel shall apply to each theft loss, including constructive or total loss, provided the scheduled vessel is stored and/or moored in a commercial storage yard or marina that provides 24 hour security.
The deductible shown under Section A of the insuring agreement declaration page shall apply to each claim under the insuring agreement except for claims for actual and/or constructive and/or compromised total loss of the scheduled vessel, unless caused by theft when the deductible as referred to above shall apply or arising from a named windstorm when the deductible detailed below shall apply.
Loss or damage to the scheduled vessel arising from a Named or numbered windstorm shall be subject to a deductible which shall apply to all claims, including Actual and/or Constructive and/or Compromised Total Loss of the insured vessel, equal to double the deductible as shown on the declaration page under section A and/or F of the insuring agreement.
Exclusions to Coverage A
Unless specifically agreed by us in writing and additional premium charged the following losses and or damages (whether incurred directly or indirectly) are not covered by this insuring agreement:
a) Damage sustained by scheduled vessel whilst being transported over land (whether by trailer or other method of conveyance approved by us in writing), more than 100 miles from the normal place of storage, as disclosed within your application form.
b) Losses due to wear and tear, gradual deterioration, lack of maintenance, inherent vice, weathering, insects, mould, animal and marine life.
c) Marring, scratching or denting of the hull and/or equipment of the scheduled vessel.
d) Osmosis, blistering or electrolysis.
e) The costs of replacing or repairing any item of equipment which has failed as a result of manufacturing defects or design defects, including latent defects.
f) Unrepaired damage claims if the scheduled vessel is subsequently deemed by us to be an actual or constructive total loss, during the insuring agreement period.
g) Losses caused directly or indirectly by ice or freezing.
h) Loss or damage caused intentionally by you and or any member of your family
i) Theft of the scheduled vessel’s equipment whilst afloat unless there is visible evidence of forcible entry onto the scheduled vessel and removal of the same, made by tools, explosives, electricity or chemicals.
j) Theft of the dinghy or tender and/or its outboard motor to the insured scheduled vessel unless there is visible evidence of forcible entry and or removal made by tools, explosives, electricity or chemicals.
k) Theft of the scheduled vessel and or its equipment whilst on a trailer/boatlift/hoist/dry storage rack unless the scheduled vessel is situate in a locked and fenced enclosure or marina and there is visible evidence of forcible entry and or removal made by tools, explosives, electricity or chemicals
l) Loss and/or damage to the dinghy and/or tender and/or its outboard motor whilst being towed behind the scheduled vessel or as a consequence of being towed behind the scheduled vessel.
m) Damage to the scheduled vessel or tender caused by theft, and/or attempted theft unless there is visible evidence of forcible entry and or removal made by tools, explosives, electricity or chemicals.
n) Your personal expenses or those of your family including but not limited to the, cost of your own labour, hotel or accommodation costs, car rental and communication costs.
o) Losses caused by delay and or loss of use and or enjoyment of the scheduled vessel and/or its equipment.
p) Any loss of value of the Scheduled vessel and or its equipment as a result of repairs and or replacements being effected as a result of any claim hereunder.
q) Damage existing prior to the inception date of this insuring agreement, whether you are aware of the same or otherwise.
r) Loss or damage to the scheduled vessel and/or its equipment where you have abandoned the scheduled vessel.
s) Damage and or loss to the scheduled vessel and/or its equipment caused by the officers, employees, agents, servants or independent contractors of any repair yard or marina.
t) Loss of or damage to the scheduled vessel as a result of any repair yard lien being enforced, including but not restricted to the arrest or detention of the scheduled vessel by any repair yard.
4. Coverage B. Third Party Liability
If a sum insured is shown under Section B of the insuring agreement declaration page, we provide coverage for any sum or sums which you or any other covered person become legally liable to pay and shall pay as a result of ownership or operation of the scheduled vessel.
We will settle or defend as we deem appropriate any claims or suits brought against you, using attorneys of our choice where we deem necessary. Our obligation to settle or defend all third party liability claims under this insuring agreement ends when the amount we pay for damages, investigation costs, legal expenses and removal of wreck equals the sum insured under this section of the insuring agreement.
The deductibles shown on the insuring agreement declaration page shall apply to each third party liability claim.
Exclusions to Coverage B
Unless specifically agreed by us in writing and an additional premium paid, Liability cover is not provided for:
a) Covered persons with regard to their liability to you, other covered persons, your spouse, other members of your family or persons who reside in your household.
b) Your liability to other covered persons, your spouse, other members of your family or persons who reside in your household.
c) Liability assumed by you under any contract or agreement.
d) Liability which arises while the scheduled vessel is being transported on its own trailer or otherwise, except where the vessel is being hauled out or launched by a covered person.
e) Fines or penalties imposed by any Government agency.
f) Punitive or exemplary damages, however described.
g) Liability due to pollution by any substance whether it be gradual, or sudden and accidental.
h) Intentional acts.
i) Bodily injury or death benefits which are required to be or are covered by any State or Federal Act or Statute or any other compensatory statute.
j) Bodily injury or death benefit to any persons employed by a covered person, hired as crew or not.
k) Liability to persons being towed, or to be towed, or having been towed
in the water or in the air, from the time they commence to leave the scheduled
vessel, until they are safely back on board, other than that provided under
limited extension of liability for waterskiing detailed below.
l) Liability to or for divers operating from the scheduled vessel, from the
time they commence to leave the scheduled vessel, until they are safely back
on board.
m) Liability to fare paying passengers or passengers carried under charter.
n) Liability for damage to any marine estuary, artificial or natural reef, living or dead coral or other marine organisms, caused by the vessel or its operators or passengers.
o) Loss or damage to any other vessel caused by the operation of the scheduled vessel in so far as the same would have been covered under section ‘A’ of this insuring agreement.
p) Liabilities, medical expenses, costs, fees or any other related expense whatsoever arising out of illness or injury in any way related to or caused by exposure to the sun or the suns rays either cumulatively or suddenly.
q) Any claim arising from directly or indirectly caused by or associated with Human T-Cell Lymphotropic Virus type III (HILV II) or Lymphadenopathy Associated Virus (LAV) or the mutants derivatives or variations thereof or in any way related to Acquired Immune Deficiency Syndrome or any syndrome or condition of a similar kind howsoever it may be named.
Coverage B, Water Skiing Coverage Limitation of Liability
Whilst the Insured vessel is being used for water skiing, the third party
liability limits relating to this activity are reduced to:
Property damage US $10,000
Bodily Injury US $10,000
Maximum any one incident US $20,000
These limits shall apply from the time any person or persons begin to leave the scheduled vessel, or such activity commences, and will continue until the person or persons are safely back on board and such activity ceases completely. All other terms, warranties, conditions, exclusions, remain unaltered and in effect save for exclusion k) above.
Any amount recoverable hereunder shall form part of the maximum amount recoverable under Section B Liability.
Coverage B, Extension to include Crew Liability
Subject to our prior written agreement and your payment of an additional premium, we may at your request extend this insuring agreement to cover any sum or sums you become legally liable to pay and shall pay to hired crew resulting from injury, illness or death occurring whilst in the service of the scheduled vessel.
The maximum amount recoverable in respect of crew liability claims shall be the amount shown on the insuring agreement declaration page and shall form part of the maximum recoverable under Section B, Third Party Liability. All other terms, warranties, conditions, exclusions remain unaltered and in effect save for exclusion i) and j) above.
The deductible shown on the insuring agreement declaration page shall apply to each crew liability claim.
Coverage B, Extension to include Limited Pollution Coverage
It is hereby noted and agreed that in consideration of the additional premiums charged herein and notwithstanding exclusion (g) Coverage B Third Party Liability, we agree to indemnify you for reasonable costs incurred by you preventing or mitigating a pollution hazard or threat thereof resulting directly from damage to the scheduled vessel, where coverage is afforded under this insuring agreement, provided always that such pollution hazard or threat thereof:
a) Was sudden, unintentional and unexpected by you.
b) That the incident commenced during the period of this insuring agreement.
c) It became known to you within 72 hours of its commencement.
d) Was reported to us in writing not later than seven days after having become
known to you.
e) Was not a result of your want of due diligence of that or your managers,
servants or agents to prevent or mitigate such pollution hazard to threat
thereof.
The maximum amount recoverable under this section shall be US$50,000 less the policy deductible detailed under Section B. These reasonable expenses must be incurred within one year from the commencement of the incident giving rise to a claim hereunder. Any amount recoverable hereunder shall form part of the maximum amount recoverable under Section B Liability.
5. Coverage C, Medical Payments
If a sum insured is shown under Section C of the insuring agreement declaration page, we will pay reasonable medical and/or funeral expenses necessary due to accidental bodily injury or death of third parties, incurred whilst boarding, leaving or onboard the scheduled vessel insured under this insuring agreement. These expenses must be incurred within one year from the date of the accident and will reduce any amount payable under Section B of this insuring agreement, arising from the same occurrence.
This coverage will be in excess over any other applicable insurance.
Any sum insured under this section is our maximum liability for all claims arising from any one event, regardless of the number of persons involved. Any payment made by us under this section is not an admission of liability for you or by us.
The deductible shown on the insuring agreement declarations page shall apply to each claim made under this section of the insuring agreement.
Exclusions to Coverage C
We do not provide medical payment coverage for:
a) Covered persons, their spouses, family or other persons who reside with them. Employees of covered persons or anyone that is or should be covered under a State or Federal Act or Statute.
b) Responsibility assumed under any contract or agreement.
c) Anyone injured whilst the scheduled vessel is being transported, hauled out or launched.
d) Trespassers on the scheduled vessel.
e) Anyone to or for whom benefits are payable under any State or Federal Workers Compensation Act including but not limited to State Workers Compensation Act, Federal Longshoreman’s and Harbour Workers Compensation Act or Federal Jones Act.
6. Coverage D, Uninsured Boaters
If a sum insured is shown under Section D of the insuring agreement declaration page, coverage is provided in respect of sums which covered persons under this insuring agreement are legally entitled to recover from a third party vessel owner or operator, but which cannot be recovered either because they have no marine liability insurance and no realisable assets or they cannot be identified, such as a hit and run operator.
The deductible shown on the insuring agreement declaration page shall apply to each claim made under this section of the insuring agreement.
The sum insured in respect of this coverage is our maximum liability for all uninsured boater claims regardless of the number of people involved and the number of claims made.
Exclusions to Coverage D
We do not provide coverage for:
a) Claims settled without our prior written consent.
b) Loss due to an uninsured vessel which is a Government vessel.
c) Loss due to a vessel operated by a covered person.
d) Loss where no physical damage to the scheduled vessel exists, evidencing collision.
7. Coverage E, Trailer
If a sum insured is shown under Section E of the insuring agreement declaration page, we provide coverage for accidental physical loss of or damage to the trailer provided it is used exclusively for the transportation of the scheduled vessel insured under this insuring agreement, up to the sum insured.
Claims will be paid up to the limit of the sum insured, on the basis of the actual cost of repairing or replacing the trailer with a trailer of like kind and value. Depreciation due to age and wear and tear will be taken into account in calculating claims under this insuring agreement.
Reasonable expenses incurred by you in attempting to minimise or mitigate a loss covered by this insuring agreement will be paid by us, whether successful or not. These will be paid in addition to the sum insured under Section E without application of the insuring agreement deductible. Our maximum liability for such expenses is 50% of the sum insured under Section E.
The deductible shown on the insuring agreement declaration page shall apply to each claim under this section of the insuring agreement.
Exclusions to Coverage E
a) Damages sustained by the trailer whilst the scheduled vessel is being transported over land, more than 100 miles from the normal place of storage, unless specifically agreed by us in writing and an additional premium paid.
b) Losses due to wear and tear, gradual deterioration, lack of maintenance, weathering, insects, mould animal or marine life.
c) Marring, scratching or denting.
d) Manufacturing defects or design defects, including latent defects.
e) Tyre damage.
f) Losses due to exceeding manufacturer’s maximum load or speed specifications.
g) Your personal expenses or those of your family including but not limited to, cost of your own labour, hotel or accommodation costs, car rental, communication costs.
h) Theft of the trailer unless the trailer is stolen from a locked and fenced enclosure or marina and there is visible evidence of forcible entry or removal made with tools, explosives, electricity or chemicals.
8. Coverage F, Personal Property
If a sum insured is shown under Section F of the insuring agreement declaration page, we will cover direct loss or damage to personal property from any accidental cause, whilst property is onboard, being loaded onto, or unloaded from the scheduled vessel. Our maximum liability in respect of all claims arising from one event is the amount of the sum insured and our maximum liability for any one item, pair or set is US$1,000.
Fishing gear and tackle, unless permanently affixed to the scheduled vessel, is deemed personal property.
Claims will be settled on the basis of actual cash value of personal property, less the insuring agreement deductible and any claim made hereunder shall be adjusted in accordance with general principles of average. Where the sum insured is less than the overall actual cash value of the covered property situate on the scheduled vessel, we will only pay claims in the ratio that such sum insured bears to the overall cash value of the covered property situate on the scheduled vessel at the time of the covered loss.
Exclusion to Coverage F
a) Money, jewellery, watches, travellers cheques or any form of paper of value, furs, china, glass, silverware, antiques, collectibles or computer software.
b) Fishing gear or tackle which is permanently affixed to the scheduled vessel, unless the scheduled vessel insured hereunder shall become an actual or constructive total loss, due to a covered loss.
We will not cover losses due to:
a) Wear and tear, gradual deterioration, inherent vice, corrosion, damage due to changes in humidity or temperature or mechanical or electrical failure.
b) Breakage of articles of a brittle nature unless caused by the scheduled vessel being stranded, sunk, burnt, on fire, or in collision or by stress of weather, burglars or thieves.
c) Loss of water-skis or diving equipment, unless as a result of fire, or theft following forcible entry, or a total loss of the scheduled vessel.
d) Theft and or damage caused by theft unless there is visible evidence of forcible entry and removal made by tools, explosives, electricity or chemicals.
9. General Conditions & Warranties
a) It is warranted that the scheduled vessel shall be used solely for private and pleasure purposes, and will not be used for Charter, hire lease or any other commercial activity.
b) It is warranted that the scheduled vessel is seaworthy at all times during the duration of this insuring agreement. Breach of this warranty will void this insuring agreement from its inception
c) This insuring agreement incorporates in full your application for insurance and, together with any endorsements issued herein, constitutes the entire contract between us. At your request, various provisions of this insuring agreement may be varied by us but only by our prior written agreement.
d) This insuring agreement does not cover any loss or damage which occurs after its expiration. However, if you have been at sea in the scheduled vessel for at least 24 hours and this insuring agreement expires other than due to cancellation, you may renew or reinstate the insuring agreement at such time as the scheduled vessel arrives safely at its next port of call and for a further 24 hours provided that you contact us during that 24 hours and make the necessary arrangements as may be required by us to renew or reinstate the insuring agreement.
e) This insuring agreement may be cancelled by either you or us at any time, subject to 10 days prior written notice. If it is cancelled by us, we will pay you a pro rata return of premium. If it is cancelled by you, we shall pay you a short rate return of premium calculated at pro rata less 10%. However if a reduced premium has been charged in consideration of a period of lay up or an earned premium in respect of an agreed extended voyage, the return premium will be calculated based upon the actual activity of the scheduled vessel, and then pro rata or short rate applied. Cancellations due to sale of the scheduled vessel or non-payment of premium, or non-payment of premium instalment to a premium financier are deemed cancellations by you. All policy fees are deemed earned at the inception of the policy.
f) If you sell or pledge the scheduled vessel or otherwise transfer ownership in part or in full, or give up possession of the scheduled vessel, whether actual or otherwise, this insuring agreement is immediately cancelled by your action unless you have our prior written agreement to the contrary.
g) In the event of an actual and/or constructive and/or compromised total loss under this insuring agreement the annual premium is deemed fully earned by us.
h) If you have used a Broker to effect coverage, it is hereby agreed that your brokers or any substituted brokers (whether surplus line approved or otherwise), shall be deemed to be exclusively the agents of you and not of us in any and all matters relating to, connected with or affecting this insurance. Any notice given or mailed by or on behalf of us to the said brokers in connection with or affecting this insurance, or its cancellation, shall be deemed to have been delivered to you.
i) We need not accept or pay for any property abandoned by you. At our option however we are entitled to the salvage value of any property or equipment where we have settled a claim in full under this insuring agreement, in respect of such property or equipment.
j) It is warranted that covered persons must at all times comply with all laws and regulations, governing the use and or operation of the scheduled vessel.
k) If the scheduled vessel is fitted with fire extinguishing equipment, then it is warranted that such equipment is properly installed and is maintained in good working order. This includes the weighing of tanks once a year, certification/tagging and recharging as necessary.
l) If you give up your rights or our rights to recover damages from anyone who may be liable to you, denying us the benefit of the right of recovery, payment of any admissible loss under this insuring agreement shall be reduced by the amount we have been denied.
m) This contract is null and void in the event of non-disclosure or misrepresentation of a fact or circumstances material to our acceptance or continuance of this insurance. No action or inaction by us shall be deemed a waiver of this provision.
n) We will not pay for any loss resulting from i) radioactive contamination, or nuclear reaction ii) pollution or contamination by any substance (other than to the extent provided for under extension of Section B Limited Pollution Coverage) iii) War declared or not, civil war, insurrection, rebellion, revolution or the consequences of any of these. iv) Capture, seizure, arrest, restraint or detainment by any government power or authority, lawful or otherwise.
o) If we take steps to protect damaged or endangered property, this does not constitute acceptance of abandonment of that property by us or acceptance of any claim as may be covered hereunder.
p) If any covered person has other insurance against risks covered by this insuring agreement, then this insurance shall be in excess over all other valid and collectible insurances.
q) Unless we specifically agree in writing, and the appropriate endorsement is issued, this insurance does not cover loss or liability incurred during a race or speed trial or during preparation for a race or speed trial.
r) Unless we agree in writing to the contrary, if we request a survey of the scheduled vessel then it is warranted that such survey is in existence prior to the effective date of this insurance and a copy of the same must be received by us within 30 days of the effective date of this agreement. If the survey makes any recommendations with respect to the scheduled vessel, then it is warranted that all such recommendations are completed prior to any loss giving rise to any claim hereunder, by skilled workmen using fit and proper materials and that either.
1) The surveyor who carried out the survey certifies in writing that all recommendations have been completed to his (the surveyors) satisfaction prior to any loss and/or claim
Or,
2) The workmen/repair yard that carried out the said work and/or recommendations
certifies in writing that all recommendations have been completed prior to
any loss and/or claim.
Failure to comply with this warranty will void this agreement from inception.
s) In no event shall this insurance cover any loss, damage, expense or liability of whatever nature, which might otherwise be recoverable under this insuring agreement arising out of or in any way connected with, whether directly or indirectly, the use or operation of any computer, computer system, computer software, programme or process or any electronic system where any such loss, damage, expense or liability arises directly or indirectly, as a consequence of a) the date change to the year 2000 or any other date change and/or b) any change or modification of or to any such computer, computer system, computer software, programme or process or any electronic system in relation to any such date change.
t) The scheduled vessel shall be valued at the agreed valuation shown on the declaration page or on any endorsement thereto issued by us. However the following items are subject to payment on the basis of depreciated cash value less the applicable deductible .Depreciated cash value means replacement cost less the annual percentage factor of depreciation shown as follows;
i) Internal and/or external paints, finishes, gelcoat or other covering -
10% per annum
ii) Bottom paint including but not limited to anti-foul or barrier coat finishes-
50% per annum
iii) Sails, standing and running rigging - 12.5% per annum
iv) Internal and/or external protective covers, canvas, vinyl and other materials
- 20% per annum
v) Internal and/or external upholstery, fabrics, wall coverings, carpets and
rugs - 10% per annum
vi) Machinery including but not limited to engines, generators, water makers
and waste systems - 7% per annum
vii) Outboard Motors - 20% per annum
viii) Outdrives, propellers, shafts, rudders, struts, couplings, trim tabs,
stabilisers - 20% per annum
ix) Batteries and solar charging panels - 20% per annum
x) Electrical equipment including but not limited to internal and external
appliances, winches, pump motors and electric deck gear - 10% per annum.
xi) Mast and spars – 5% per annum.
xii) Stanchions and lifelines – 10% per annum.
xiii) Inflatable, tenders or dinghies – 12.5 % per annum.
xiv) Hard FRP, composites, aluminium or wood tenders or dinghies – 10% per
annum.
The cost of dry docking and/or lay-days shall be adjusted in accordance with the required time to complete the repair of covered losses.
However in no event shall the depreciated value be less than 20% of the replacement cost. Reasonable labour costs to repair or replace the damaged items following a recoverable claim shall be payable in full subject always to the applicable deductible
If the hull is made in whole or in part of plywood, fibreglass, metal or other material of similar nature its repair shall be made by applying suitable patches to the damaged hull area in accordance with generally accepted good repair practice. This insuring agreement does not cover the cost or expense of painting or impregnating colour beyond the immediate damaged area or areas.
We have the right to settle any physical loss or damage claim under this insuring agreement, either by making payment to you of the estimated loss agreed between you and us, or by making repairs or replacements, like with like, for your lost or damaged property.
u) No suit or action on this Insuring agreement for the recovery of any claim shall be sustainable in any court of law or equity unless the Assured shall have fully complied with all the requirements of this Insuring agreement, nor unless commenced within one (1) year from the date of the happening or the occurrence out of which the claim arose, provided that where such limitation of time is prohibited by the laws of the state wherein this Insuring agreement is issued, then, and in that event, no suit or action under this Insuring agreement shall be sustainable unless commenced within the shortest limitations permitted under the laws of such state.
v) Where a lay up ‘laid up period’ has been specified within the declaration page, it is warranted that the scheduled vessel will not be used, navigated or utilised, in any manner whatsoever, during the dates so specified. “Use” includes, but is not restricted to, living on board the scheduled vessel.
w) It is warranted that the scheduled vessel will be operated only by covered persons.
x) Where you are entitled to limit your liability to third parties the maximum recoverable under section 4 coverage B, third party liability herein, is the amount you become legally liable to pay or the limit of coverage shown under “Section B” of the insuring agreement declaration page ,whichever is the lesser amount.
y) Where two or more insurers subscribe to this insurance their obligations are several and not joint and are limited solely to the extent of their individual subscriptions. The insurers in such circumstances are not responsible for the subscription of any co subscribing insurer who for any reason does not satisfy all or part of its obligations hereunder.
10. Your Duties In The Event Of A Loss
1) Immediately take all possible steps to minimise the loss and protect the scheduled vessel from further loss. Failure to do so may invalidate your insurance coverage or reduce the amount of any claim hereunder.
2) Within 14 days of a loss giving rise to any claim hereunder give us written notification of the loss and its circumstances.
3) Comply with any reasonable request made of you, by us with regard to the loss.
4) Advise the Police, Coast Guard, or any appropriate authority of the loss and its circumstances.
5) Give us an opportunity to examine the damaged property before it is repaired or discarded.
6) Submit a claim form and/or statement describing the loss, together with two estimates of repair cost and/or records to substantiate the amount of the loss.
7) Neither assume obligation, nor admit liability without our written permission to do so.
8) Immediately forward to us any legal papers or notices received in connection with the loss.
9) Cooperate with us in the investigation, defence or settlement of any loss and agree to be examined under oath if we so request
10) Allow examination by physicians of our choice.
11) Assist us in obtaining copies of medical records and reports.
12) Give us a notarised statement or statutory declaration if we so request.
13) Give us a proof of loss and discharge of liability once the amount of the claim under this insuring agreement has been agreed with you.
14) Preserve any right of recovery from others. When we pay a loss, your right to recover becomes ours up to the amount of our payment together with any legal fees and expenses You must also co-operate with us to recover the losses we may pay. Any amounts recovered from others belong to us up to the amount of our payment together with any legal fees and expenses.
11. Service Of Suit Clause
It is agreed that in the event of the failure of the Underwriters severally subscribed to this insurance (The Underwriters) to pay any amount claimed to be due hereunder, the Underwriters, at the request of the Assured, will submit to the jurisdiction of a court of competent jurisdiction within the United States of America.
Notwithstanding any provision elsewhere in this insurance relating to jurisdiction,
it is agreed that the Underwriters have the right to commence an action in
any court of competent jurisdiction in the United States of America, and nothing
in this clause constitutes or should be understood to constitute a waiver of
the Underwriters right to remove an action to the United States Federal District
Court or to seek remand therefrom or to seek a transfer of any suit to any
other court of competent jurisdiction as permitted by the laws of the United
States of America or any State therein.
Subject to the Underwriter’s rights set forth above:
a) It is further agreed that the Assured may serve process upon any senior partner in the firm of:
LeBoeuf, Lamb, Greene & MacRae
125 West 55th Street
New York, NY 10019-5389
and that in any suit instituted against any one of them upon this contract the Underwriters will abide by the final decision of the Court or any Appellate Court in the event of an appeal.
b) The above named are authorised and directed to accept service of process on behalf of Underwriters in any such suit and/or upon request of the Assured to give written undertaking to the Assured that they will enter a general appearance upon the Underwriter’s behalf in the event such a suit shall be instituted.
c) The right of the Assured to bring suit as provided herein shall be limited to a suit brought in its own name and for its own account. For the purpose of suit as herein provided the word Assured includes any mortgage under a ship mortgage which is specifically named as a loss payee in this insurance and any person succeeding to the rights of any such mortgage.
d) Further, pursuant to any Statute of any State, Territory or District of the United States of America which makes provision therefore, Underwriters hereby designate the Superintendent, Commissioner or Directors of Insurance or any other officer specified for that purpose in the statute, or his successor or successors in office (The Officer) as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Assured or any beneficiary hereunder arising out of this contract of insurance, and hereby designates the above named as the person to whom the Officer is authorised to mail such process or true copy thereof.
Clause 11 above is subject, in all respects to clause 12 hereafter.
12. CHOICE OF LAW
It is hereby agreed that any dispute arising hereunder shall be adjudicated according to well established, entrenched principles and precedents of substantive United States Federal Admiralty law and practice but where no such well established, entrenched precedent exists, this insuring agreement is subject to the substantive laws of the state of New York.