Rule 29 Fines

The Association shall cover fines imposed upon the Member in respect of the Vessel by any court, tribunal or other authority of competent jurisdiction for or in respect of any of the following:

1. failure to comply with regulations concerning the declaration of goods, or documentation of cargo, provided that the Member is insured by the Association for cargo liability under Rule 26 (other than fines or penalties arising from smuggling goods or cargo or any attempt thereat);

2. breach of any immigration law or regulations;

3. the accidental escape or discharge from the vessel of oil or any other substance, provided that the Member is insured for pollution liability by the Association under Rule 25. An escape or discharge in this context is accidental if it is not the proximate result of an act or omission done with intent to discharge any substance from the Vessel or a reckless act or omission done (irrespective of intent) with knowledge that an escape or discharge from the Vessel would probably result.

The Association may, in its sole discretion, cover in whole or in part

1. a fine other than those listed in Rule 29.1 above imposed upon the Member, provided the Member has satisfied the Association that it took steps as appear to the Association to be reasonable to avoid the event giving rise to the fine or penalty;

2. any fine imposed not upon the Member but the master or Crew member of the Vessel or on any other servant or agent of the Member or on another party, provided that the Member has been compelled by law to pay or reimburse such fine or that the Association determines that it was reasonable for the Member to have paid or reimbursed the same.

The Association shall be under no obligation to give reasons for its decision pursuant to Rule 29.2 above.