Russian Marine Insurance Policy Contract by oam40339

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									  THE RUSSIAN P&I POOL


        RULES

MARINE LIABILITY INSURANCE

           FOR

       CHARTERERS




         July 01, 2006
                                                                                                                 THE RUSSIAN P&I POOL.
                                                                                       Rules for Marine Liability Insurance for Charterers.




                                                          - TABLE OF CONTENTS -

I.     DEFINITIONS. ......................................................................................................................................4

II.    GENERAL STIPULATIONS. .................................................................................................................5

III.   SCOPE OF COVER. ............................................................................................................................5

1. STANDARD COVER.......................................................................................................................................5
       1.1.       Liability for Damage to or Loss of the Chartered Vessel. ..........................................................5
       1.2.       Liability to Persons other than Employees. ...............................................................................5
       1.3.       Stowaways and Refugees.........................................................................................................6
       1.4.       Collision with Other Ships. ........................................................................................................6
       1.5.       Loss of or Damage to Property. ................................................................................................6
       1.6.       Pollution Risks. .........................................................................................................................7
       1.7.       Liability Arising out of Towage Contracts. .................................................................................7
       1.8.       Wreck Liabilities. .......................................................................................................................8
       1.9.       Cargo Liabilities.........................................................................................................................8
       1.10.      Assured's General Average and Salvage Contributions..........................................................10
       1.11.      Fines. ......................................................................................................................................10
       1.12.      Quarantine Expenses..............................................................................................................10
       1.13.      Enquiry Expenses. ..................................................................................................................10

2. SUE AND LABOUR AND LEGAL COSTS...........................................................................................................11

3. LIMITATIONS OF COVER. .............................................................................................................................11
       3.1.       Deductibles. ............................................................................................................................11
       3.2.       Limit of Liability........................................................................................................................11

4. EXCEPTIONS. ............................................................................................................................................11

5. ADDITIONAL COVER. ..................................................................................................................................13
       5.1.       War risks. ................................................................................................................................13
       5.2.       Liability arising out of Deviation...............................................................................................13
       5.3.       Container Risks and Liability. ..................................................................................................13
       5.4.       Strike Risks. ............................................................................................................................13
       5.5.       Freight, Demurrage & Defence Risks......................................................................................13

IV.    INSURANCE CONTRACT. ................................................................................................................14

1. APPLICATION FOR THE INSURANCE...............................................................................................................14

2. CONCLUSION OF INSURANCE CONTRACT. .....................................................................................................14

3. SINGLE POLICY..........................................................................................................................................15

4. OPEN COVER. ...........................................................................................................................................15

5. NOMINATION OF SHIPS. ..............................................................................................................................15

6. DECLARATION CERTIFICATE. .......................................................................................................................17


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7. CURRENCY OF INSURANCE. ........................................................................................................................17

8. POLICY YEARS. .........................................................................................................................................17

9. COMMENCEMENT AND TERMINATION OF INSURANCE......................................................................................17

10. SUBSIDIARY EFFECT OF INSURANCE. .........................................................................................................18

11. INSURANCE PREMIUM...............................................................................................................................18

12. NON-PAYMENT OF INSURANCE PREMIUM. ...................................................................................................18

V.      CLAIMS HANDLING AND SETTLEMENT PROCEDURE..................................................................19

1. OBLIGATION TO SUE AND LABOUR. ..............................................................................................................19

2. NOTIFICATION OF THE MANAGERS AND TIME BAR..........................................................................................19

3. CLAIMS.....................................................................................................................................................19

4. BAILS AND SECURITIES...............................................................................................................................20

5. PAYMENT FIRST BY THE ASSURED. ..............................................................................................................20

6. THE ASSURED'S CLAIM FOR REIMBURSEMENT. .............................................................................................20

7. CURRENCY OF REIMBURSEMENT FROM THE INSURERS...................................................................................21

8. RECOVERY FROM THIRD PARTIES................................................................................................................21

9. FORBEARANCE, WAIVER AND REIMBURSEMENT. ...........................................................................................21

10. TRANSFER OF RIGHTS. .............................................................................................................................21

11. DISPUTES AND DIFFERENCES....................................................................................................................22

12. SOLE REMEDY.........................................................................................................................................22

13. APPLICABLE LAW. ....................................................................................................................................22

VI.     SPECIAL EXCLUSION CLAUSES. ....................................................................................................22




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I.       DEFINITIONS.

         Assured – such party as stated to be the Assured in the Policy of Insurance.

         Attachment date – the first day on which the insurance cover commences.

         Cargo – goods, which are the subject of a contract of carriage and are to be, are, or were carried
         on the Insured Ship, other than containers leased and/or owned by the Assured.

         Certificate of Insurance – the document issued by the Insurers stating the details of risks
         attached, and which is evidence of the Insurance Contract under the Policy of Insurance.

         Chartered Vessel – such vessel, boat, hovercraft or other description of vessel or structure
         (whether under construction or otherwise) that is under Charter and is stated as the Insured Ship
         in the Policy of Insurance.

         Charterer – a time charterer, a voyage charterer (whether under contract of affreightment or
         otherwise), a charterer in partnership, space charter or slot charter in relation to a Charter Party of
         the Insured Ship.

         Charter Party – a time charter party, a voyage charter party, including contracts of affreightment
         and booking notes or a space, or slot charter party.

         Co-Assured – any person or company that is so named in the Policy of Insurance, but only to the
         extent as the Policy of Insurance stipulates.

         Crew – any person (including the Master) employed or engaged to serve on board the Insured
         Ship under articles of agreement or other crew agreement or contract of service or employment,
         including a substitute for such person under any such agreement or contract.

         Deductible – the proportion, percentage or the maximum sum of money to be borne by the
         Assured in respect of any claim, which inter alia comprises related experts' sue and labour and
         legal expenses, if incurred.

         Event – any occurrence or series of occurrences arising out of any such occurrence unless the
         Pool decides to treat each single occurrence of such series of occurrences as a separate event.
         An event shall be deemed to have taken place at the time of the first occurrence, which can give
         rise to a claim or claims.

         Hull Policies – the insurance policy or policies effected on the hull and machinery of the Insured
         Ship, including any interest, increased value, excess liability, war and strike risks and other total
         loss policies.

         Insured Ship – such vessel, boat, hovercraft, or other description of vessel or structure (whether
         under construction or otherwise), as stated to be the Insured Ship in the Policy of Insurance.

         Insurers – the Russian insurance companies being parties to the Russian P&I Pool Agreement
         (the "Agreement"), acting in accordance with the Agreement, all insurance companies being
         jointly liable under these Rules as defined from time to time in the Agreement.

         Joint Assured – where the Policy of Insurance names more than one person as the Assured,
         any of those so named.

         Managers – managing company appointed by the Pool for the management of the Pool, as
         specified in the Policy of Insurance.

         Passenger – a person carried on board the Insured Ship pursuant to a passage contract.

         Person – a natural person, an incorporated or unincorporated body or a combination of both.




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         Personal effects – personal property including clothes, documents, navigation and other
         technical instruments and tools, but excluding valuables and any other articles, which, in the
         opinion of the Insurers, are not reasonably required by a crew member or a passenger.

         Policy of Insurance – the document issued by the Managers on behalf of the Insurers on the
         Insurers’ Marine Liability Policy Form setting out the agreements between the Assured and the
         Insurers on the basis of the Questionnaire and Proposal Form.

         Pool – Insurers joining the Russian P&I Pool Agreement.


II.       GENERAL STIPULATIONS.

         1.      The risks covered in accordance with these Rules are set out in Part III.

         2.      The cover set out in these Rules can be extended, limited, excluded, modified or otherwise
                 altered by other rules and conditions agreed in writing between the Insurers and the
                 Assured. In case of inconsistency of anything stated in the Policy of Insurance and any
                 provision of these Rules the content of the Policy of Insurance shall prevail.

         3.      The cover is limited to the amount stipulated in the Policy of Insurance. Losses and
                 expenses are compensated up to this limit with the exclusion of expenses as per Part III
                 Section 2 (Sue and Labour and Legal Costs), which are covered in excess.

         4.      Compensation will be paid by the Insurers only in respect of events

                 -        which occurred during the period covered by the Policy of Insurance,

                 -        concerning the Assured's interest in connection with the Insured Ship,

                 -        which occurred in connection with the operation of the Insured Ship by or on
                          behalf of the Assured.

         5.      This insurance does not, in any circumstances, confer any rights or indemnity against
                 liabilities incurred by the Assured as bareboat or demise charterer.

         6.      The Insurers may enter into contracts of reinsurance in excess of their retention facilities.


III.      SCOPE OF COVER.


         1. STANDARD COVER.

         The Assured can be insured against the following risks:

         1.1.    Liability for Damage to or Loss of the Chartered Vessel.

                 Liability of the insured Charterer under the terms of the Charter Party of the Insured Ship,
                 which may arise out of physical loss of or damage to the Insured Ship, including loss of or
                 damage to the hull, machinery, equipment, stores, fuel or other property belonging to the
                 owner of the Insured Ship.

         1.2.    Liability to Persons other than Employees.

                 Liability to pay damages or compensation:

                  i.      for personal injury, illness or death of any person other than an employee, directly
                          caused by the operation of the Insured Ship, including hospital, medical or funeral
                          expenses incurred in relation to such injury, illness or death;



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                 ii.     for personal injury, illness or death of any passenger on board the Insured Ship
                         and hospital, medical or funeral expenses incurred in relation to such injury,
                         illness or death, directly caused by the operation of the Insured Ship, including
                         the costs of forwarding passengers to the port of destination or of returning them
                         to the port of embarkation, whatever is the Assured’s liability, and including the
                         costs of caring for these passengers ashore until they have reached the port of
                         embarkation or disembarkation,

                         provided always that

                         contractual liabilities of the Assured in excess of the Assured’s non-contractual
                         liabilities are covered only if and to the extent that the conditions of the passage
                         contract between the passenger and the Assured have been approved by the
                         Insurers in writing;

                 iii.    for loss of or damage to the effects of any person (other than a crew member)
                         aboard the Insured Ship,

                         provided always that

                         unless and to the extent that the Assured has obtained appropriate special cover
                         by agreement with the Insurers, there shall be no recovery from the Insurers in
                         respect of claims relating to cash, negotiable documents, precious or rare metals
                         or stones, valuables or objects of a rare, antiquarian or precious nature.

         1.3.    Stowaways and Refugees.

                 Liability under a Charter Party to the owner of the Insured Ship for fines and expenses
                 reasonably incurred by that owner in discharging his obligations towards or making
                 necessary arrangements for stowaways or refugees,

                 provided always that

                 -       the owner of the ship is legally liable for such fines or expenses,

                 -       the Assured has no right to recover such expenses from a third party,

                 -       cover shall be limited to those costs and liabilities the Assured would be exposed
                         to under the Stowaway Clause for Time Charters as recommended by BIMCO.

         1.4.    Collision with Other Ships.

                 Liability of the Charterer to pay damages to any other person arising out of a collision of
                 the Insured Ship with another ship.

         1.5.    Loss of or Damage to Property.

                 Liability of the Charterer to pay damages or compensation for any loss of or damage to
                 any property (including infringement of rights) whether on land or water and whether fixed
                 or moveable,

                 provided always that

                 -       cover is limited to liabilities arising out of a negligent act or omission on board the
                         Insured Ship for which the Assured is liable,

                 -       contractual liabilities of the Assured in excess of the Assured's non-contractual
                         liabilities are covered only if and to the extent that the conditions of the passage
                         contract between the passenger and the Assured have been approved by the
                         Insurers in writing, and



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                 -        there shall be no cover in respect of loss of or damage to property owned, leased
                          or in any other way controlled by the Assured.

         1.6.    Pollution Risks.

                 Liabilities, losses, damages, costs and expenses to the extent that they are caused by or
                 incurred in consequence of the discharge or escape from the Insured Ship of oil or any
                 other substance, or the threat of such discharge or escape for which the Assured is liable,
                 in as much as these liabilities are not covered under the Hull Policies of the Insured Ship,
                 including:

                  i.      liability for loss, damage or contamination;

                 ii.      the costs of any measures reasonably taken for the purpose of avoiding or
                          minimising pollution or any resulting loss or damage together with any liability for
                          loss of or damage to property caused by measures so taken;

                 iii.     the costs of any measures reasonably taken to prevent an imminent danger of
                          the discharge or escape from the Insured Ship of oil or any substance, which may
                          cause pollution;

                 iv.      the costs or liabilities incurred as a result of compliance with national or
                          international laws and regulations, conventions or agreements or any order or
                          direction given by any government or authority, for the purpose of preventing or
                          reducing pollution or the risk of pollution in a sudden and accidental case of such
                          nature, unless such compliance is a requirement for the normal operation or
                          salvage or repair of the Insured Ship, and unless such costs or liabilities are
                          recoverable under any other insurance,

                 provided always that

                 -        there shall be no cover for liabilities of the Assured arising out of or in relation to
                          the Assured’s ownership of or rights in the cargo,

                 -        there shall be no cover, unless otherwise agreed with the Insurer in advance in
                          writing, in respect of liabilities or costs, which arise in respect of bulk oil cargo
                          tanker voyages within the Exclusive Economic Zone of the United States of
                          America as defined in the United States Oil Pollution Act 1990, to which the
                          United States Oil Pollution Act 1990 and/or any other similar federal or state
                          legislation is applicable,

                 -        any certificate of insurance, policy of insurance or confirmation of cover shall not
                          de deemed to be evidence of financial responsibility under the United States Oil
                          Pollution Act 1990 and/or any similar federal or state legislations, and

                 -        no certificate of insurance, policy of insurance or confirmation of cover may be
                          shown to the United States Coast Guard or any other federal or state agency as
                          evidence of financial responsibility or evidence of insurance.

         1.7.    Liability Arising out of Towage Contracts.

                 Liability, other than the cost of the contracted services, connected with:

                  i.      towage for the purpose of entering or leaving a port or manoeuvring within the
                          port during the ordinary course of trading;

                 ii.      towage of such Insured Ships as are usually towed in the ordinary course of
                          trading from port to port or from place to place;

                 iii.     towage of the Insured Ship other than customary towage or towage by the
                          Insured Ship, but only if and to the extent that cover for such towage contract has
                          been agreed with the Managers in writing,

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                 always to the extent that the Insured Ship is not insured against such liability under the
                 Hull Policies.

         1.8.    Wreck Liabilities.

                 Costs or expenses relating to:

                  i.      the raising, removal, destruction, lighting or marking of the wreck of the Insured
                          Ship, when such raising, removal, destruction, lighting or marking is the Assured's
                          compulsory statutory duty or are imposed on the Assured by an order of authority;

                 ii.      the raising, removal or destruction of any property being carried or having been
                          carried on the Insured Ship, not being oil or any other substance within the scope
                          of Rule 1.6 (Pollution Risks), when such raising, removal or destruction is the
                          Assured's compulsory statutory duty or are imposed on the Assured by an order
                          of authority;

                 iii.     liabilities incurred by the Assured as the result of the presence or involuntary
                          shifting of the wreck of the Insured Ship or as the result of his failure to remove,
                          destroy, light or mark such wreck, including liability arising from the discharge or
                          escape of oil or any other substance from such wreck,

                 provided always that

                 -        the value of all stores and materials saved, as well as the wreck itself, shall first
                          be deducted from such costs or expenses and only the balance thereof, if any,
                          shall be recoverable from the Insurers,

                 -        nothing shall be recoverable from the Insurers if the Assured shall, without the
                          consent of the Managers in writing, have transferred his interest in the wreck,
                          otherwise than by abandonment, prior to the raising, removal, destruction, lighting
                          or marking of the wreck or prior to the incident giving rise to the liabilities, costs
                          and expenses,

                 -        the Insured Ship became a wreck as the result of a casualty or event occurring
                          during the period of that ship being insured by the Insurers, and

                 -        there shall be no recovery for any liability incurred more than three years after the
                          termination of the insurance for the Insured Ship.

         1.9.    Cargo Liabilities.

                 1.9.1.   The liabilities and costs to the extent that they relate to cargo intended to be or
                          being or having been carried in the Insured Ship and in connection with:

                          i.       loss, shortage, damage to the cargo, or other responsibility arising out of
                                   any breach by the Assured, or by any person for whose acts, neglect or
                                   default he may be legally liable, of his obligation properly to load, handle,
                                   stow, carry, keep, care for, discharge or deliver the cargo or out of
                                   unseaworthiness or unfitness of the Insured Ship,

                                   provided always that

                                   the unseaworthiness or unfitness of the Insured Ship could not be
                                   detected with due diligence of the Assured before the commencement of
                                   the voyage;

                          ii.      additional costs (over and above those, which would have been incurred
                                   by him if the cargo had not been damaged) incurred by the Assured in
                                   discharging or disposing of damaged cargo, but only if and to the extent
                                   that the Assured has no recourse to recover those costs from any other
                                   party;

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                           iii.     the liabilities and additional costs (over and above the costs, which
                                    would have been incurred by him if the cargo had been collected or
                                    removed) incurred by the Assured solely by reason of the total failure of
                                    a consignee to collect or remove the cargo at the port of discharge or
                                    place of delivery, but only if and to the extent that such liabilities or costs
                                    exceed the proceeds of sale of the cargo and the Assured has no
                                    recourse to recover those liabilities or costs from any other party.

                 1.9.2.     There shall be no recovery from the Insurers in respect of liabilities, costs or
                            expenses arising out of:

                             i.     discharge of cargo at a port or place other than the port or place
                                    provided in the contract of carriage;

                            ii.     delivery of cargo carried under a negotiable bill of lading or similar
                                    document of title without production of that bill of lading or document by
                                    the person to whom delivery is made, except where cargo has been
                                    carried on the Insured Ship under the terms of a non-negotiable bill of
                                    lading, waybill or other non-negotiable document, and has been properly
                                    delivered as required by that document, notwithstanding that the
                                    Assured may be liable under the terms of a negotiable bill of lading or
                                    other similar document of title issued by or on behalf of a party other
                                    than the Assured providing for carriage partly by a means of transport
                                    other than the Insured Ship;

                           iii.     the issue of an ante dated or post dated bill of lading, waybill or other
                                    document containing or evidencing the contract of carriage, that is to say
                                    a bill of lading, waybill or other document recording the loading or
                                    shipment or receipt for shipment on a date prior or subsequent to the
                                    date on which the cargo was in fact loaded, shipped or received as the
                                    case may be;

                           iv.      a bill of lading, waybill or other document containing or evidencing the
                                    contract of carriage, issued with the knowledge of the Assured or the
                                    Master of the Insured Ship with an incorrect description of the cargo or
                                    its quantity or its condition;

                            v.      either the failure to arrive or late arrival of the Insured Ship at a port of
                                    loading, or the failure to load any particular cargo or cargoes in the
                                    Insured Ship other than liabilities, loss and expenses arising under a bill
                                    of lading already issued;

                           vi.       weight shortage of bulk cargoes only if it is not connected to sea perils;

                          vii.      weight shortage of cargo in packages within intact package or in
                                    containers with intact seals;

                          viii.     carriage of specie, bullion, precious or rare metals or stone, plate or
                                    other object of a rare or precious nature, bank notes or other forms of
                                    currency, bonds or other negotiable documents unless such carriage has
                                    been agreed with the Managers in writing;

                           ix.      carriage of the cargo (including cargo on deck) under a contract of
                                    carriage, which is based on any rules/conventions less favourable to the
                                    Assured than the standard terms of carriage, which shall be the Hague
                                    or Hague-Visby Rules. If the contract of carriage is based on other
                                    rules/conventions etc., cover will be provided only with prior written
                                    consent of the Managers;

                            x.      carriage of steel products and/or other ferrous metals without the
                                    obligatory pre-loading condition survey having been conducted at the
                                    Assured's expense.

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         1.10. Assured's General Average and Salvage Contributions.

                 Liability for the Assured’s proportion of general average, special charges or salvage in
                 respect of freight at risk and/or bunkers owned by the Assured, provided always that such
                 liability is not covered by any other insurance.

         1.11. Fines.

                 Liability for fines imposed by any court, tribunal, or authority of competent jurisdiction upon
                 the Assured or upon any person for whom the Assured is legally liable to reimburse, for
                 any of the following:

                  i.      short or over delivery of cargo or failure to comply with regulations concerning
                          declaration relating to goods or cargo or to the Insured Ship’s documents;

                 ii.      pollution by oil or substances, or the threat thereof;

                 iii.     smuggling or any infringement of any customs law or regulation relating to the
                          cargo of the Insured Ship;

                 iv.      breach of immigration laws or regulations;

                 v.       any act, neglect or default, other than those specified above, of any servant or
                          agent of the Assured in the course of their duties in respect of the Insured Ship,

                 provided always that

                 there shall be no recovery in respect of fines arising out of

                 -        the overloading of the Insured Ship,

                 -        infringements or violations of or non-compliance with the provisions regarding
                          construction, adaptation and equipment of ships contained in the International
                          Convention for the Prevention of Pollution from Ships, 1973, as modified or
                          amended by the Protocol of 1978 and any subsequent Protocol, or such of those
                          aforesaid provisions as are contained in the laws of any State given effect to that
                          Convention or such Protocol,

                 -        entry of the Insured Ship into prohibited waters,

                 -        disregarding of routing regulations,

                 -        criminal activity, of which the Assured had actual or constructive knowledge, or
                          which he recklessly disregarded or failed to take reasonable steps to prevent.

         1.12. Quarantine Expenses.

                 Additional expenses incurred by the Assured of the Insured Ship as a direct consequence
                 of a contagious or infectious disease on that ship, including quarantine and disinfecting
                 expenses and the net loss of the Assured (over and above such expenses as would have
                 been incurred but for the outbreak) in respect of fuel, insurance, wages, stores, provisions
                 and port charges, but always excluding loss of freight, hire or any other income.

         1.13. Enquiry Expenses.

                 Costs and expenses incurred by the Assured in defending himself or in protecting his
                 interests before a formal enquiry into the loss of or into a casualty involving the Insured
                 Ship, but only to the extent and on such conditions as the Managers in their sole discretion
                 may determine.




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         2. SUE AND LABOUR AND LEGAL COSTS.

         In conformity with the Assured’s obligation to sue and labour (see Part V Section 1 of the subject
         Rules) the Insurers provide cover for the following costs and expenses in respect of risks insured
         against:

          i.     extraordinary costs and expenses reasonably incurred on or after the occurrence of any
                 casualty, event or matter liable to give rise to a claim upon the Insurers and incurred solely
                 for the purpose of avoiding or minimising any liability or expenditure against which the
                 Assured is wholly or partially, by reason of application of a deductible, insured by the
                 Insurers;

          ii.    legal costs and expenses relating to any liability or expenditure, against which the Assured
                 is wholly, or, by reason of a deductible, partly insured by the Insurers,

         provided always and to the extent that

         those costs and expenses have been incurred with the written agreement of the Managers.


         3. LIMITATIONS OF COVER.

         3.1.    Deductibles.

                 Unless otherwise agreed reimbursements from the Insurers to the Assured for any one
                 event shall be subject to the sum of the applicable separate deductibles as individually
                 agreed between the Managers and the Assured for the itemised risks covered and shall be
                 specified in the Policy of Insurance. Reimbursements paid by the Insurers to the Assured
                 in accordance with Section 2 above (Sue and Labour and Legal Costs) shall bear the
                 same deductible as the liability so avoided would have borne.

         3.2.    Limit of Liability.

                 The maximum liability of the Insurers under this Policy in respect of each accident or
                 occurrence relating to the Insured Ship and falling within the period of insurance as agreed
                 between the Managers and the Assured in each individual case as part of the terms upon
                 which the ship is insured shall be limited to the amount or amounts specified in the Policy
                 of Insurance,

                 provided always that

                 the Insurer’s liability shall not exceed the amount, to be determined by the Insurer, to
                 which the Assured could have limited his liability for the claim if he had been the registered
                 owner of that ship and sought and had not been denied the right to limit.


         4. EXCEPTIONS.

         There will be no compensation:

         4.1.    If the liabilities and obligations of the Assured towards third parties, their respective losses
                 and expenses, set out in these Rules, took place as a result of:

                  i.       wilful misconduct or gross negligence of the Assured;

                 ii.       unseaworthiness of the Insured Ship, which the Assured knew or could have
                           known at the beginning of the voyage;

                 iii.      one of the following factors:

                           -           war, military actions and hostilities,


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                           -        civil war, revolution, rebellion, insurrection or civil commotions,

                           -        strikes, lock-outs and similar occurrences,

                           -        capture, seizure, arrest, restraint or detainment and their consequences,

                           -        effect of mines, torpedoes, bombs, rockets, shells, explosives or other
                                    similar weapons of war,

                           -        acts of sabotage, terrorist acts with political motives,

                           -        confiscations, requisitions and similar measures undertaken by the
                                    government or an organisation, which has taken over all governmental
                                    responsibilities,

                           -        participation of the Insured Ship in contraband or unlawful trade,

                           -        any attempts thereat,

                           -        ionising radiation, toxic, explosive or other hazardous or contaminating
                                    properties of any nuclear installation, reactor or other nuclear assembly
                                    or nuclear component, nuclear fuel, waste irrespective whether carried
                                    as cargo or not,

                 iv.       employment of a non-specialised vessel for specific activities, for which the
                           Insured Ship is unfit or not properly equipped and/or manned;

                  v.       employment of specialised vessels for performing specialist operations including
                           but not limited to salvage, core sampling, drilling, oil or gas production or storage,
                           heavy lifting, dredging, blasting, pile-driving, well stimulation, cable or pipe-laying,
                           construction, installation or maintenance work, depositing of spoil, professional oil
                           spill response or professional oil spill response training and tank cleaning
                           (otherwise than on the Insured Ship), (but excluding fire-fighting). Special cover
                           can be agreed between the Assured and the Managers for the professional
                           liability risks of specialised vessels.

         4.2.     If the following actions or abstaining from any action of the Assured took place:

                   i.      incorrect and/or incomplete information, which is known or should have been
                           known to the Assured regarding circumstances of essential importance for
                           judging the insured risk;

                  ii.      non-information on essential changes in the risk;

                 iii.      non-disclosure of existing facts at the moment of an event, which can give rise to
                           a claim;

                 iv.       failure to perform due diligence in avoiding and/or minimising any expense or
                           liability in respect whereof the Assured may be covered by this insurance;

                  v.       failure to notify the Managers of any casualty, event or claim, which can give right
                           to claim compensation from the Insurers in due time (Part V, Section 2 –
                           Notification of the Managers and Time Bar);

                 vi.       presentation of documentation known to be fraudulent or false;

                vii.       failure to reserve to the Insurers rights for recourse;

                viii.      concession or transfer of the rights of the Assured on the Insurance Contract to
                           third parties without prior written consent of the Managers;



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                 ix.           employment of the Insured Ship in trades or areas other than those agreed with
                               the Managers.

         4.3.    If the losses of the Assured are consequential, i.e.:

                  i.           borne in connection with loss of or damage to the Insured Ship or any part
                               thereof;

                 ii.           borne in connection with loss of or damage to any equipment on board the
                               Insured Ship or to any containers, lashing, stores or fuel thereon to the extent that
                               the same are owned or leased by the Assured;

                 iii.          connected to claims by or against the Assured related to loss of freight or hire,
                               unless such losses are part of a claim recoverable from the Assured for liabilities
                               in respect of cargo or such losses are, with written consent of the Managers,
                               included in the settlement of such a claim.

          4.4.          Classification.

         Any declared vessel shall be classed at the date of inception of her cover by a Classification
         Society approved by the Managers, and the Charter Party or other agreement for use of the
         Insured Ship by the Assured shall include the requirement that the ship remains in class for the
         duration of the fixture.

          4.5.          Statutory Requirements.

         It is a condition of cover under this entry that the Assured shall make it a requirement, and shall
         take reasonable steps to ensure compliance with the requirement, that under and throughout the
         period of the relevant Charter Party or other engagement of the Insured Ship the owner or other
         person responsible for its operation shall:

          i.            comply with all statutory requirements of the state of the vessel’s flag relating to the
                        construction, condition, fitness, equipment and manning of the declared Insured Ship;
                        and

          ii.           maintain the validity of such statutory certificates as are issued by or on behalf of the
                        state of the vessel’s flag in relation to the requirements in sub-paragraph i. above, and in
                        relation to the International Safety Management (ISM) Code and the International Ship
                        and Port Facility (ISPS) Code.


         5. ADDITIONAL COVER.

         Subject to separate written agreement, for additional and/or separate premium and on special
         terms agreed in the Insurance Contract, the Insurers can provide extra cover for one or more of
         the following risks:

         5.1.           War risks.

         5.2.           Liability arising out of Deviation.

         5.3.           Container Risks and Liability.

         5.4.           Strike Risks.

         5.5.           Freight, Demurrage & Defence Risks.




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IV.       INSURANCE CONTRACT.


         1. APPLICATION FOR THE INSURANCE.

         1.1.      For the conclusion of the Insurance Contract as well as in any nomination of a ship under
                   Section 5 (Nomination of Ships) the Applicant shall present to the Managers a written
                   Questionnaire and Proposal Form, which must contain:

                   -      name and address of the applicant,

                   -      his banking details,

                   -      information on the vessel/vessels to be insured:

                          -      name,
                          -      IMO number,
                          -      gross tonnage,
                          -      type of vessel,
                          -      class and which Classification Society classed with,
                          -      year of build,
                          -      flag and place of registration,
                          -      nationality of crew (including master),
                          -      area of trading and trading pattern,

                   -      list of the risks to be insured (Part III of the Rules),

                   -      loss record on above risks for the last 5 years,

                   -      with whom the applicant was previously insured against Charterers' P&I risks,

                   -      details of current vessel’s P&I cover and Hull Policy,

                   -      currency of insurance payments,

                   -      attachment date.

         1.2.      The applicant must advise any other known information on any circumstances essential
                   for proper evaluation of the risk.

         1.3.      The Managers have the right of asking any additional questions connected to the risk.

         1.4.      The Managers have the right in their own discretion and without explaining the reasons
                   to refuse cover.


         2. CONCLUSION OF INSURANCE CONTRACT.

         2.1.      The Insurance Contract is concluded in writing.

         2.2.      The Insurance Policy is the main document evidencing the existence of the Insurance
                   Contract.

         2.3.      The Insurance Policy and any Addenda thereto should contain:

                   -      the name of the Assured and any Co-Assured and Joint Assured as well as the
                          terms on which such Co-Assureds and Joint Assureds are covered,

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                   -      scope of cover including risks insured, limit of Insurers' liability, terms and
                          conditions, clauses, deductibles,

                   -      period of insurance under the Policy and any minimum period of insurance in
                          respect of any nominated vessel,

                   -      the limit of liability,

                   -      rate of insurance premium, amount of premium and terms of payment,

                   -      approved cargoes and Charter Parties.

         2.4.      The Policy and Addenda thereto on demand of the Assured are done in Russian and/or
                   in English language.

         2.5.      It is a duty of the Assured to inform the Managers immediately after it becomes known to
                   him about any changes in the risk during validity of cover.

         2.6.      Any changes, which can increase the risk, entitle the Managers to reconsider terms and
                   conditions of the Insurance Contract and demand additional insurance premium. In case
                   the Assured does not agree to payment of such additional premiums the Insurance
                   Contract can be terminated with effect from the date when such changes happened.

         2.7.      In case of alteration of any terms and conditions of the cover the Managers issue an
                   Addendum to the Policy.


         3. SINGLE POLICY.

         3.1.      Obtaining insurance for one or more exact charter contracts, the Managers will produce
                   a single Policy of Insurance with the names and addresses of the Assured, the name of
                   the Insured Ship that the Assured has chartered, its home port, IMO number, the
                   specified risks covered and general insurance conditions, any further agreed clauses,
                   agreed deductible and limits as well as the beginning and the end of the insurance
                   period. The Policy is underwritten by the Managers and if changes are necessary, then it
                   will be immediately returnable for correction.

         3.2.      Obtaining insurance on an inexact number of charter contracts is achieved by means of
                   both parties agreeing on an Open Cover.


         4. OPEN COVER.

          The Policy of Insurance shall form the basis of the contract between the Assured and the
          Insurers, under which contract:

         i.        the Insurers shall be obliged to accept any nomination of a ship under Section 5
                   (Nomination of Ships) where that nomination is within the terms and conditions specified
                   in the Policy of Insurance; and

         ii.       the Assured shall be obliged to nominate every ship on charter to the Assured.


         5. NOMINATION OF SHIPS.

         5.1.      During the validity of the Policy of Insurance any Assured who wishes or is obliged to
                   declare a ship for insurance shall make a declaration in such form as may from time to
                   time be required by the Managers.

         5.2.      Any particulars given by the Assured in any declaration under this Section shall be
                   deemed to form the basis of the Insurance Contract between the Assured and the
                   Insurers and it shall be a condition precedent of such insurance that all such particulars

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                   and information were true so far as the Assured knew or could have ascertained with
                   reasonable diligence.

         5.3.      The duty of the Assured to disclose all material information to the Managers shall apply
                   at the time of any declaration as well as at the time of the application for insurance.

         5.4.      The Assured shall in addition advise the Managers of any material change in such
                   particulars or circumstances, which occur and which the Assured would be obliged to
                   disclose at the time of an application for insurance or declaration of a ship.

         5.5.      Subject to Rule 5.6. the ship shall be regarded as the Insured Ship from the date (“the
                   Declaration Date”) when the Assured concludes a legally binding Charter Party in
                   respect of such ship,

                    provided always that

                    premium shall be assessed from the date on which (in the case of a time charter) the
                    ship is delivered to the Assured pursuant to the terms of the Charter Party and (in the
                    case of a voyage charter) the date on which Notice of Readiness is validly tendered at
                    the first loading port. If however there is a dispute, as to whether or when such delivery
                    or the tendering of Notice of Readiness has occurred, premium may, in the Managers’
                    sole discretion, be assessed from the Declaration Date.

         5.6.      It shall be a condition precedent to the liability of the Insurers under these Rules, unless
                   and in so far as the Managers in their sole discretion shall otherwise determine, that
                   every nomination shall be made either before or within seventy two hours after the
                   Declaration Date.

         5.7.      The insurance shall continue until the earlier of:

                    i.    the fixed date (if any) specified in the Policy of Insurance; or

                   ii.    the termination of the Charter Party in respect of which the ship is declared under
                          the Policy of Insurance,

                   unless the Policy of Insurance is terminated earlier in accordance with these Rules,

                   provided always that

                   -      in no event shall a period of insurance of a ship exceed a period of 12 months
                          from the Declaration Date unless agreed in advance in writing by the Insurers,
                          and

                   -      if the period of insurance continues after the date of expiry of the Policy of
                          Insurance in force at the Declaration Date, then such period shall, if the Assured
                          renews his insurance, continue on the terms of the renewed insurance from the
                          date of the Assured’s Policy of Insurance (or such other time as may be agreed in
                          writing between the Assureds and the Managers). If the Assured does not renew
                          his insurance, such period of insurance shall continue in accordance with the
                          terms of the original insurance of the Insured Ship, subject always to the
                          Managers’ right of termination in accordance with these Rules,

                   -      the Insurers shall remain liable in respect of any Insured Ship for all claims under
                          these Rules arising by reason of any event, which had occurred prior to or on the
                          date of termination, but shall be under no liability whatsoever by reason of
                          anything occurring after the date of termination.




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          6. DECLARATION CERTIFICATE.

          As soon as reasonably practicable after accepting the declaration of a ship into the Policy of
          Insurance the Insurers shall issue to the Assured a Certificate of Declaration. Such Certificate of
          Declaration shall state the Declaration Date from which the ship has been accepted for insurance
          and may specify the specific expiry date. Unless otherwise agreed, such Certificate of Declaration
          shall be deemed to incorporate all terms and conditions contained in the Certificate of Insurance
          and any endorsement slip relating thereto.


         7. CURRENCY OF INSURANCE.

          The Insurance Contract can be concluded in any currency on agreement of the parties in
          accordance with valid currency regulations of the Russian Federation.


         8. POLICY YEARS.

         8.1.      Insurance cover offered on these Rules is based on policy years.

         8.2.      Insurance cover commences at the time and date specified in the Insurance Policy and
                   continues, unless agreed otherwise, until the next 24:00 hours Moscow time of
                               st
                   December 31 .

         8.3.      Terms and conditions are agreed and renewed every year.


         9. COMMENCEMENT AND TERMINATION OF INSURANCE.

         9.1.      The Insurance Contract is considered to be in effect from and until the times and dates
                   specified in the Policy.

         9.2.      The Managers can terminate the Insurance Contract in case of

                   -      non-payment of the premium or any instalment thereof by the date specified in
                          the Policy. If the payment of any overdue amount of premium is received within a
                          time acceptable to the Insurers they may in their own discretion not terminate the
                          Contract,

                   -      liquidation of the Assured or commencement of proceedings against him under
                          bankruptcy or insolvency laws,

                   -      reorganisation of the Assured. The Insurance Contract may be kept in effect after
                          written agreement with the successors of the Assured.

         9.3.      Any ship ceases to be insured in case of any of the following events:

                   -      upon the Insured Ship ceases to be or rejected to be classed,

                   -      upon the Assured parting with the whole or any part of his interest in the Insured
                          Ship whether by termination of Charter or any other formal document or
                          agreement or upon termination of any formal agreement according to which the
                          Insured Ship was under Charter by the Assured,

                   -      upon the Insured Ship declared to be missing,

                   -      upon the Insured Ship becoming an actual or constructive total loss.

         9.4.      Irrespective of termination of the Insurance Contract both parties will be liable as per the
                   Contract in respect of any events taken place before termination and including liabilities
                   in connection with the event, which lead to such termination.


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         10. SUBSIDIARY EFFECT OF INSURANCE.

         10.1.     The Assured is obliged to inform the Managers about all valid insurance contracts in
                   respect of the ship applying for insurance on these Rules.

         10.2.     In case of compensation under any other insurance contract the Russian P&I Pool will
                   pay only such amounts, which are covered with the Russian P&I Pool, but are not
                   covered under such other insurance contracts.


         11. INSURANCE PREMIUM.

         11.1.     Debit notes for the insurance premium are issued by the Managers after conclusion of
                   the Insurance Contract and contain:

                   -      name of the Insurers,

                   -      number and date of the Policy of Insurance,

                   -      calculations and the amount of premium,

                   -      date of payment; if the premium is payable in instalments, amounts of such
                          instalments and respective dates on which they are payable,

                   -      banking details of the Insurers.

         11.2.     The insurance premium is calculated on the basis of gross tonnage of the ship. The rates
                   are fixed on annual basis. In case of commencement of insurance in the progress of a
                   policy year insurance premium is calculated on a pro rata basis.

         11.3.     It is a duty of the Assured to pay the premium within the dates specified in the respective
                   debit notes.

         11.4.     In case of lay-up of the Insured Ship in a safe port unemployed without cargo and not
                   under repair/conversion for more than 28 consecutive days (such period being computed
                   from the day of final mooring to the day of departure, one day being excluded) the
                   Assured has the right to claim from the Insurers a return of premium in proportion to the
                   time of lay-up with the deduction of any administrative cost of the Insurers.

         11.5.     In case of termination of the Insurance Contract the Assured has the right to claim from
                   the Insurers a return of premium on a pro rata basis from the day of termination.


         12. NON-PAYMENT OF INSURANCE PREMIUM.

          Non-payment of insurance premium by the date specified in the premium invoice has the
          following consequences:

         12.1.     The Insurers are released from any obligation under the Insurance Contract, be it for
                   cases arising after the due date of the premium or for cases arising prior to the due date
                   of the premium, no matter if the Managers have admitted cover for such cases prior to
                   the due date of the premium and/or have appointed surveyors, lawyers or any other
                   person to deal with such claims.

         12.2.     The Insurers have the right to terminate the Insurance Contract forthwith without notice.

         12.3.     The Managers may, in their absolute discretion, decide not to make use of their rights
                   under Rules 12.1 and 12.2 of this Section. Any such decision made from time to time not
                   to exercise the aforementioned rights does not constitute a waiver of such rights, but the
                   Insurers may exercise the rights at any time later.



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V.        CLAIMS HANDLING AND SETTLEMENT PROCEDURE.


         1. OBLIGATION TO SUE AND LABOUR.

         1.1.      Upon any occurrence, event or matter liable to give rise to a claim by the Assured upon
                   the Insurers, it is a duty of the Assured and his agents to take and continue to take all
                   such steps as may be reasonable for the purpose of averting or minimising any expense
                   or liability in respect whereof he may be insured.

         1.2.      In case the Assured fails to take such steps, the Insurers are released from any liability,
                   unless and to the extent that the Assured proves that

                   -      his failure to take such step had no influence on the liability of the Insurers,

                    -     there was no fault on his part.

         1.3.       Sue and labour and legal costs and expenses are subject to the Assured’s deductibles.


         2. NOTIFICATION OF THE MANAGERS AND TIME BAR.

         2.1.       The Assured must immediately, as soon as it becomes known to him or his agents,
                    notify in writing the Managers or his agent/correspondent at the site of every casualty,
                    event or claim upon him, which is likely to give rise to a claim upon the Insurers, failing
                    that the Insurers will be released from any liability unless and to the extent that the
                    Assured proves that

                   -      his failure to notify had no influence on the liability of the Insurers or its
                          determination,

                   -      there was no fault on his part.

         2.2.       In the event that the Assured fails to submit a claim to the Managers for reimbursement
                    of any liabilities, costs or expenses within one year after discharging or settling the
                    same, the Managers may decline the Assured's claim for reimbursement.


         3. CLAIMS.

         3.1.      For the purpose of dealing with any matter likely to give rise to a claim upon the Insurers
                   including investigating, advising any such matter, taking or defending legal or other
                   proceedings in connection therewith, the Assured, with prior agreement of the Managers
                   may appoint and employ lawyers, surveyors, experts or other persons. Any costs and
                   expenses incurred by the Assured are recoverable only if they have been incurred with
                   the Managers' prior written approval.

         3.2.       The Managers are entitled in respect of any casualty, event or occurrence to

                   -      demand from the Assured any information and documentation pertaining to the
                          case,

                   -      appoint and employ at their own choice and on the Assured's behalf and at the
                          Assured's expense any lawyer, surveyor, expert or other person for the purpose
                          of dealing with any matter likely to give rise to a claim upon the Insurers,

                   -      act on the Assured's behalf in legal or other proceedings,

                   -      receive from the Assured a properly legalised Power of Attorney in favour of the
                          appointed persons,



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                   -      give recommendations aiming at minimising losses and expenses and conduct
                          joint investigations and inspections, tests or the like.

         3.3.      Any actions of the Managers as per Rule 3.2 of this Section do not mean admission of
                   liability of the Insurers on any particular case.

         3.4.      If the Assured does not cooperate in realisation of the Insurers' rights as per Rule 3.2. of
                   this Section or does not settle, compromise or dispose of a claim or of proceedings after
                   being required to do so by the Managers, any eventual recovery by the Assured from the
                   Insurers in respect of such a claim or proceedings shall be limited to the amount he
                   would have recovered if he had acted as required by the Managers.

         3.5.      The Assured shall not settle or admit liability directly or indirectly for any claim for which
                   he may be insured by the Insurers without prior written consent of the Managers. If the
                   Assured admits liability or settles the claim or dispute without such prior approval or
                   refuses to settle the claim, despite the Managers having required him to do so, the
                   Insurers shall not be liable to indemnify the Assured and the Assured will be liable to
                   refund the Insurers for any costs paid by the Insurers either to the Assured or to lawyers,
                   surveyors or other persons.


         4. BAILS AND SECURITIES.

         4.1.      To obtain the release of or to prevent the arrest of the Insured Ship, the Assured can
                   apply to the Managers with request to provide bail or other security.

         4.2.      The Managers may agree to take reasonable steps to provide such bail or security, but
                   in no case shall such arrangements be the obligation of the Insurers. Arrangement of a
                   bail or other security will be a subject of a special agreement between the Assured and
                   the Managers.


         5. PAYMENT FIRST BY THE ASSURED.

         5.1.      The Insurers are reimbursing losses and expenses of the Assured covered under these
                   Rules only after the Assured has done actual payments, unless the Managers in their
                   sole discretion decide otherwise.

         5.2.      On a without prejudice basis the Assured can ask the Managers to pay urgent claims
                   directly to the claimant. The Managers may do so, provided they have a full set of claim
                   documents.

         5.3.      In case of such direct payment the Assured must reimburse the Insurers with the amount
                   of any deductible within 10 banking days from the date of the respective debit note.


         6. THE ASSURED'S CLAIM FOR REIMBURSEMENT.

         6.1.      Claiming reimbursement from the Insurers the Assured should support his claim with

                   -      documents evidencing payment by the Assured,

                   -      full set of claim documents;

                   in case of settlement by the Assured's agent/representative

                   -      documents evidencing the Assured's authorisation of the agents to settle claims.

         6.2.      The Managers may demand from the Assured any other documents pertaining to the
                   case.



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         7. CURRENCY OF REIMBURSEMENT FROM THE INSURERS.

         7.1.      Reimbursement by the Insurers is effected in the currency of the claims and losses paid,
                   otherwise in the currency of the Insurance Contract, or by prior written agreement in any
                   other currency with application of the exchange rate of the Central Bank of the Russian
                   Federation. In any case payments are done according to the currency regulations of the
                   Russian Federation.

         7.2.      When settling claims the Insurers can set off any amounts of premium due to them from
                   the Assured.


         8. RECOVERY FROM THIRD PARTIES.

         8.1.      The Assured must take all reasonable steps to obtain recovery and compensation of his
                   losses and expenses from any liable third parties.

         8.2.      The Assured must inform the Managers of any such recoveries received from third
                   parties in compensation of his losses and expenses against which the Insurers may
                   cover him. Reimbursing the Assured's claims upon them the Managers will deduct
                   amounts of such compensations. If compensations from third parties are received after
                   reimbursement from the Insurers it is a duty of the Assured to return the corresponding
                   amount of reimbursement to the Insurers.


         9. FORBEARANCE, WAIVER AND REIMBURSEMENT.

         9.1.      No act, omission, course of dealing, forbearance, delay or indulgence by the Insurers in
                   enforcing any of these Rules or any of the terms or conditions of their contracts with the
                   Assured nor any granting of time by the Managers shall prejudice or affect the rights and
                   remedies of the Insurers under these Rules or under such contracts, and no such matter
                   shall be treated as any evidence of waiver of the Insurers’ rights hereunder, nor shall any
                   waiver of a breach by the Assured of such Rules or contracts operate as a waiver of any
                   subsequent breach thereof. The Managers shall at all times and without notice be
                   entitled to insist on strict application of these Rules and on the strict enforcement of their
                   contracts with the Assured.

         9.2.      The Assured shall reimburse to the Insurers on demand the amount of any payment
                   made to any third party by the Insurers on behalf of or as guarantor for such Assured to
                   the extent that such payment is in respect of any amount, which in the opinion of the
                   Manager is not recoverable from the Insurers.


         10. TRANSFER OF RIGHTS.

         10.1.     After reimbursement of the Assured's losses and expenses the Insurers obtain the right
                   to claim from the responsible parties within the amounts of reimbursement.

         10.2.     The Assured must secure the right of the Insurers to claim from third parties if he had
                   failed to receive compensations as per Part V Rule 8.1. (Recovery from Third Parties).

         10.3.      The Assured must transfer all the documents necessary for such claims.

         10.4.     If the Assured fails to secure the right of the Insurers to claim upon responsible third
                   parties the Managers may decline the Assured's claim for reimbursement.




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         11. DISPUTES AND DIFFERENCES.

         11.1.     Any difference or dispute which arises between the Assured and the Insurers out of or in
                   connection with these Rules or any contract between them or as to the rights or
                   obligations of the Insurers or the Assured there under or in connection therewith, shall in
                   the first instance be referred to and adjudicated upon by the Managers. Such reference
                   and adjudication shall be on written submissions only.

         11.2.     If the Assured concerned in such difference or dispute does not accept the decision of
                   the Managers the case shall be referred to the Court of Arbitration in Moscow.

         11.3.     If the Assured refuses to refer the case to the Court of Arbitration, the dispute shall be
                   referred to the Arbitration Tribunal at the Central Agency for Transport in Moscow and
                   settled by two Arbitrators (one to be appointed by the Managers and the other by the
                   Assured) and an Umpire to be appointed by the Arbitrators; the submission to Arbitration
                   Tribunal and all the proceedings therein shall be subject to the provisions of the Russian
                   laws and Regulations on the Arbitration Tribunal at the Central Agency for Transport in
                   Moscow.


         12. SOLE REMEDY.

          No Assured shall be entitled to maintain any action, suit or legal proceedings against the Insurers
          otherwise than in accordance with the procedures laid down in Part V Section 11 (Disputes and
          Differences) and may only commence proceedings other than arbitration under Rules 11.2 and
          11.3, so as to enforce an award under such arbitration and then only for such sum, if any, as the
          award may direct to be paid by the Insurers. The sole obligation of the Insurers to such Assured
          under these Rules and any Policy of Insurance in respect of such difference or dispute shall be to
          pay such sum as may be directed by such an award,

          provided always that

          notwithstanding Rules 11.1-11.3 the Insurers shall be entitled at any time to take whatever action
          is deemed necessary by the Managers to obtain a security for any claim the Insurers may have
          against the Assured, including the right of the Insurers to take action and/or commence
          proceedings in any jurisdiction to enforce its right of lien on ships.


         13. APPLICABLE LAW.

          These Rules and any contract of insurance between the Insurers and the Assured shall be
          governed by and construed in accordance with the laws of the Russian Federation and
          International Marine Insurance Practice, subject to the right of the Insurers under Section 11
          (Disputes and Differences) to enforce their right of lien in any jurisdiction in accordance with the
          local law of such jurisdiction.


VI.       SPECIAL EXCLUSION CLAUSES.

         The Assured must comply with all Reinsurance Exclusion Clauses stated within the Exclusion
         Clause Document updated from time to time, of which the most recent will be deemed to be in
         force.




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