The General Rules of the
Association -
Rule 19
| CLAIMS, LAWYERS, DEDUCTIBLES AND RELATED MATTERS |
| 1. |
| (a) |
Every claim or circumstances which may give rise
to a claim in respect of which the Member is or may be insured
by the Association shall be notified to the Managers immediately.
Without prejudice to the obligation to give such notification,
if the Managers are not so notified in writing of a claim or
circumstance which may give rise to a claim within one year
after the Member has or should have knowledge thereof, or fails
to submit a claim in writing to the Managers for reimbursement
of any liability, loss, cost or expense within one year after
discharging the same, the claim against the Association shall
be extinguished and the Association shall be under no further
liability in respect thereof, unless the Directors in their
discretion shall otherwise determine, |
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| (b) |
the Member shall promptly notify the Managers
of every survey or opportunity to survey in connection with
any claim or circumstance which may give rise to a claim, |
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| (c) |
the Member shall at all times promptly notify
the Mangers of any information, documents or reports in his
or his agents' possession, custody, power or knowledge relevant
to any claim or circumstances which may give rise to a claim
and permit the Managers or their agents to examine and if necessary
record or obtain copies of the said information, documents or
reports, |
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| (d) |
the Member shall permit the Managers or their
agents to interview any servant, agent, manager or other person
who may have been employed by the Member at the material time
or at any time thereafter or whom the Managers may consider
likely to have any direct or indirect knowledge of the matter
or who may have been under a duty at any time to report to the
Member in connection therewith. |
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| (e) |
the Member shall not, without the prior written
consent of the Managers, compromise or admit liability for any
claim in respect of which he may be insured by the Association, |
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| (f) |
the Managers shall have the right if they so decide
to control or direct the conduct of any claim or legal or other
proceedings relating to any liability, cost or expense in respect
of which the Member is or may be insured in whole or in part,
and to require the Member to settle, compromise or otherwise
dispose of such claim or proceedings in such manner or upon
such terms as the Managers in their discretion decide. The Managers
shall not settle any claim without the consent of the Member.
If, however, the Member refuses to consent to any settlement
recommended by the Managers and elect to contest or continue
any legal proceedings in connection with such claim, then the
Association's liability to reimburse the Member shall not exceed
the amount for which the claim could have been so settles, plus
the costs and expenses incurred with their consent up to the
date such refusal, |
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| (g) |
if the Member commits any breach of his obligations
referred to in sub-paragraphs (a) to (f) of this Rule, or it
the Member shall willfully or negligently withhold or knowingly
conceal any relevant information, document or evidence, or shall
make any false statement with a view to obtaining payment of
any claim or the support of the Association in any matter, or
it the Member shall cause or knowingly permit any other person
so to act , the Directors may in their discretion reject in
whole or in part any claim by the Member against the Association
arising out of the casualty, dispute, event or matter concerned,
or reduced the sum payable by the Association in respect thereof
by such amount as they may in their discretion determine. |
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| 2. |
| (a) |
Without prejudice to any other provisions of these
Rules and without waiving any of the Association's rights hereunder,
the Managers may in their discretion and at any and all times
appoint and employ on behalf of a Member upon such terms as
they may think fir lawyers, surveyors or other persons ( whether
or not lawyers, surveyors or other persons have already been
appointed or employed by the Member) for the purpose of dealing
with any matter liable to give rise to a claim by the Member
upon the Association including, but not limited to, investigating
or advising upon any such matter and taking or defending legal
or other proceedings in connection therewith. The Managers may
in their discretion at any time discontinue such employment
as they may think fit. |
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| (b) |
the cost and expense incurred in connection with
a particular matter shall only be recoverable from the Association
on condition that all lawyers, surveyors, and other person employed
in the case are appointed with the prior consent of or by the
Managers, |
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| (c) |
all lawyers, surveyors and other persons appointed
by the Managers on behalf of the Member or appointed by a Member
with the prior consent of the Managers shall at all times be
and be deemed to be appointed and employed on the terms: |
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(i)
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that ( without prejudice to their right
to retire from the matter on any other grounds) they shall
be entitled to retire from the matter if either the Managers
or the Member so requests or if any of them considers
that a conflict of interest has arisen or may arise between
the Member and the Association so that he ought to retire
from the matter; |
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(ii)
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that they have been instructed
by the Member at all time (both while so acting and after
having retired from the matter) to give advice and to
report to the Managers in connection with the matter without
prior reference to the Member; |
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(iii)
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that they are to produce to the Managers
without prior reference to the Member any document or
information in their possession or power relating to such
matter, |
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| as if such person had been appointed to act and
had at all times been acting on behalf of the Association and
not withstanding that any such advice, reports, documents or
information would, as against the Association, otherwise be
the subject of legal or any other form of privilege. |
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| 3. |
The Directors shall meet as often as may be required
for the settlements of claims which shall be paid by the Association
as the Directors may determine in accordance with these Rules, but
the Directors may from time to time delegate to the managers the power
to agree and to effect payment of claims without prior reference to
the Directors. No Director shall act as such in the settlement of
any claim in which he is directly or indirectly interested as claimant. |
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| 4. |
Without prejudice to any other provision of these Rules,
unless the member has obtained from the Managers their prior written
approval of such cesser or failure, the Directors shall have power
in their discretion to reject a claim or reduce the sum payable by
the Association in respect thereof it, |
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(a)
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the entered ship in respect of which the claim
is submitted has ceased, before the incident which gave a rise
to the claim, to be fully classed by a classification society
approved by the Managers, or |
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(b)
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if the Member has failed fully and timeously to
comply with all the rules, recommendations and requirements
of such society |
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| 5. |
In no circumstances whatsoever shall a Member be entitled
to be paid interest on his claim against the Association or to recover
any loss of profit or consequential loss from the Association. |
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| 6. |
Claims shall be limited to the amount by which they
exceed agreed deductibles, but subject to the agreed limits. Deductibles
to be applied to particular claims will be on the basis agreed between
the Member and the Association as part of the terms and conditions
upon which the entry of the ship is accepted or continued. In the
absence of contrary notification from the Association, the deductibles
and limits applicable to any particular entry at the end of any policy
year shall continue to apply to that entry in the next policy year. |
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