Section 1 - Risks Excluded
Notwithstanding anything to the contrary contained in these Rules of Class I, there shall be no right of recovery from the Association in respect of any liabilities, costs or expenses, whether or not a contributory cause of their being incurred was any neglect on the part of a Member, Co-assured or Affiliate or any of their servants or agents, when the incident giving rise to the liability, cost or expense was caused by the following: War Risks
1.
i. War, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power or any act of terrorism; ii. Capture, seizure, arrest, restraint or detainment (barratry and piracy excepted) and the consequences thereof or any attempt thereat; iii. Mines, torpedoes, bombs, rockets, shells, explosives or similar weapons or devices, provided that this exclusion shall not apply to any liabilities, costs or expenses which arise solely by reason of
a. the transport of any such weapons whether on board the insured vessel or not, or b. the use of any such weapons, either as a result of government order or through compliance with a written direction given by the Association where the reason for such use was the avoidance or mitigation of liabilities, costs or expenses which would otherwise have fallen within the cover given by the Association. AND PROVIDED ALWAYS that the exclusions in this Section 1, Sub-Section 1 shall not apply to any liabilities, costs or expenses insofar only as they are discharged by the Association on behalf of a Member pursuant to a demand made under: – a guarantee or other undertaking given by the Association to the Federal Maritime Commission under Section 2 of US Public Law 89-777, or – a certificate issued by the Association in compliance with Article VII of the International Conventions on Civil Liability for Oil Polution Damage 1969 or 1992 or any amendments thereto, or – a certificate issued by the Association in compliance with Article 7 of the International Conventions on Civil Liability for Bunker Oil Pollution Damage, 2001 or any amendments thereto, or – an undertaking given by the Association to the International Oil Pollution Compensation Fund 1992 in connection with the Small Tanker Oil Pollution Indemnification Agreement (STOPIA 2006),
to the extent that such liabilities, costs and expenses are not recovered by the Member under any other policy of insurance or extension to the cover provided by the Association. Where any such guarantee, undertaking or certificate is provided by the Association on behalf of a Member as guarantor or otherwise, the Member agrees that any payment by the Association thereunder in discharge of the said liabilities, costs and expenses shall, to the extent of any amount recovered under any other policy of insurance or extension to the cover provided by the Association, be deemed to be by way of loan and that there shall be assigned to the Association all the rights of the Member under any such other insurance and against any third party.AND FURTHER PROVIDED ALWAYS THAT: The Directors may resolve that special cover be provided to Members against any or all of the risks set out in Rule 2 of these Rules of Class I, notwithstanding that the liabilities, costs or expenses arising from such risks would otherwise be excluded by this Rule 3.1.1. Such special cover where provided may be limited to such sum or sums and be subject to such terms and conditions as the Directors may from time to time in their absolute discretion determine. In the event of any dispute as to whether or not any act constitutes an act of terrorism, the decision of the Directors shall be final. Nuclear Risks 2. Ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; or any weapons or devices employing atomic or nuclear fission and/or fusion or other like reaction of radioactive force or matter. Provided always that this Rule 3.1.2 shall not apply to liabilities, losses, costs or expenses arising out of or in consequence of the emission of ionizing radiations from, or the toxic, explosive or other hazardous properties of: i. isotopes prepared for use for industrial, commercial, agricultural, medical or scientific purposes;
ii. natural uranium; or
iii. depleted uranium,
being carried as cargo in an insured vessel, and such further exceptions as the Managers may approve. Blockade Running, Unlawful Trade etc.
3. An insured vessel carrying contraband, blockade running or being employed in an unlawful trade or if the Managers, in their absolute discretion, shall be of the opinion that the carriage, trade or voyage was imprudent, unsafe, unduly hazardous or improper.
Preclusion of/exclusion from cover of certain voyages involving Iran
4. Notwithstanding anything to the contrary contained in these Rules or in the Association’s Charter or By-Laws or in a Member’s Certificate of Entry into the Association, and until and unless authorized by the Directors through any subsequent amendment of the Association’s Rules, or as may be authorized in writing specifically by the Managers on a case-by-case basis, coverage hereunder shall not include or, as the case may be, shall terminate and cease to include, any voyage or service to or within Iran, including in Iranian territorial waters, of any vessel otherwise insured hereunder if such voyage and/or service is for or relates to the sale, exportation, provision, transportation or delivery to Iran*, directly or indirectly, of :
a. refined petroleum products (RPP)2; b. goods, services, technology, information or support:
i. which could be used to enhance Iran's ability to import RPP; or
ii. intended for, or which could be used to facilitate, the maintenance or expansion of Iran's domestic production of refined petroleum products, including any item for use in , or which could be used in the construction, modernization, upgrade, or repair of petroleum refineries in Iran.
Any determination and decision by the Managers with respect to the foregoing shall be conclusive and final.
* Iran means the territory of Iran, including its territorial waters; the Government of Iran; any entity (irrespective of where located) owned or controlled by the Government of Iran or from the territory of Iran (e.g., Iranian state enterprises such as IRISL); any agency or instrumentality of the Government of Iran; or any person (individual or entity) acting for or on behalf of any of the foregoing.** Refined petroleum products mean diesel, gasoline, jet fuel (including naphtha-type and kerosene-type jet fuel), and aviation gasoline.
5. Notwithstanding anything to the contrary contained in these Rules or in the Association’s Charter or By-Laws or in a Member’s Certificate of Entry into the Association, there shall be no cover for any liability, cost or expense to the extent that such liability, cost or expense is not recoverable from the Association’s reinsurers (such term to include, but not be limited to, any association party to the Pooling Agreement, or any reinsurer subscribing to the Group Excess Loss Contract, or any other of the Association’s reinsurers whatsoever) by reason of the fact that the provision of cover, the payment of any claim or the provision of any benefit in respect of such liability, cost and expense would expose the said reinsurer to any economic, financial or trade sanctions administered by any State, or international or supranational organization having jurisdiction over the said reinsurer.
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