Published 16 January 2002
Circular No. 8/2001 January 2002
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
Dear Sirs,
Amendments to Assuranceforeningen Gard's Rules
Assuranceforeningen Gard's (the 'Club') Rules for the 2002 policy year, which commences at noon GMT on 20 February 2002, contain some minor alterations to those presently in force.
The remainder of this Circular outlines these changes in more detail.
Rules for ships
P&I
Rule 34 - Cargo liability The effect of Rule 34.1 proviso (iv) is to exclude from the P&I cover the Member's liability for non-performance of the contract of carriage. The amendment is made in order for this Rule to have the same wording as the corresponding provision of the Pooling Agreement. The revised wording is not intended to represent any material change compared to the existing practice. Rule 34.1 proviso (iv) shall read (amendments underlined): Rule 34 - Cargo Liability The cover under this Rule 34.1 does not include: (iv) liabilities, costs and expenses arising out of the failure to arrive or late arrival of the Ship at port of loading, or the failure to load any particular cargo or cargoes in the Ship, other than liabilities, costs and expenses arising under a Bill of Lading already issued. Rule 47 - Fines The wording of the first paragraph of Rule 47.1 has been slightly amended in order to be harmonised with the corresponding wording of the Pooling Agreement. Rule 47.1 shall read (amendments underlined): Rule 47 - Fines
The Association shall cover fines or other penalties imposed upon a Member (or, imposed upon a third party whom the Member is legally obliged to reimburse or whom the Member reimburses with the Agreement of the Association) **in respect of the Ship *by any court, tribunal or other authority of competent jurisdiction for or in respect of any of the following:
Rule 56 - Non-marine personnel A minor change has been made in order to clarify that the 'accommodation unit' referred to in the Rule is the Ship entered in the Association. Rule 56 shall read (amendments underlined):
Rule 56 - Non-marine personnel The Association shall not cover under a P&I entry liabilities, losses, costs or expenses incurred by the Member in respect of any of the following:
personnel (other than marine crew) on board the Ship (being an accommodation vessel) employed otherwise than by the Member where there has not been a contractual allocation of risk as between the Member and the employer of the personnel which has been approved by the Association.
..
Rule 58 - War risks The wording of this Rule has been changed to correspond to a similar change in the text of the Pooling Agreement. Following the 11 September incident, the 'war risk' exclusion in the Pooling Agreement has been slightly amended with the effect that any act of terrorism shall be treated as a 'war risk'.
The effect of this amendment is that any liability or loss incurred by a Member as a result of a terrorist attack or other acts of terrorism will be deemed to be caused by a 'war risk' (regardless of whether weapons of war are used or not) and fall outside ordinary P&I cover for 'sea perils'.
However, in recognition of the fact that it may be difficult to determine whether or not an act shall be treated as an 'act of terrorism' or not the Club is given a discretionary right to determine the matter.
Rule 58 shall read (amendments underlined): Rule 58 - War risks The Association shall not cover under a P&I entry liabilities, losses, costs or expenses (irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the Member or his servants as agents) when the loss or damage, injury, illness or death or other accident in respect of which such liabilities arise or such losses, costs or expenses are incurred was caused by:
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 (provided that, in the event of any dispute as to whether or not, for the purpose of this paragraph (a), an act constitutes an act of terrorism, the Association shall in its absolute discretion determine that dispute and the Association's decision shall be final);
capture, seizure, arrest, restraint or detainment, (barratry and piracy excepted), and the consequences thereof or any attempt thereat;
mines, torpedoes, bombs, rockets, shells, explosives, or other similar weapons of war (save for liabilities, costs or expenses which arise solely by reason of the transport of any such weapons, whether on board the entered Ship or not), provided always that this exclusion shall not apply to the use of such weapons, whether as a result of government order or with the agreement of the Association, where the reason for such use is the mitigation of liability, costs or expenses which would otherwise fall within the cover given by the Association.
Rules for Mobile Offshore Units
Rule 41 - War risks Rule 41 in the Rules for Mobile Offshore Units mirrors the provision in Rule 58 in the Rules for Ships. A similar amendment as the one made in Rule 58 in the Rules for Ships has also been made in Rule 41 in the Rules for Mobile Offshore Units. If you have any questions, please contact Senior Vice President Kjetil Eivindstad. Yours faithfully GARD SERVICES AS As agent only for Assuranceforeningen Gard -gjensidig- Claes Isacson Chief Executive Officer
Gard is a member of
