Circular - Lodestar issues updated P&I and Legal Expenses Ts&Cs

Lodestar Protection & Indemnity and Legal Expenses Insurance Terms and Conditions Edition 2 (November 2013)

As outlined in our MLC 2006 Circular dated 24th July 2013, Lodestar has made changes to Edition 1 (September 2012) terms and conditions and these are now reflected in Edition 2 (November 2013).

Both sets of terms and conditions are available on the Products page.  All new business, renewals or additions to fleets bound with effect from 25th November 2013 will be subject to Edition 2 (November 2013). The alterations:

In order to respond to MLC 2006:-


34. Seamen

34.1. Liability for compensation or damages for the injury, illness or death of a Seaman.

34.2. Hospital, medical and ancillary expenses necessarily incurred in relation to the injury, illness or death of a Seaman, including funeral arrangements and the repatriation of remains.

34.3. Liability for the repatriation of a Seaman.

34.4. Expenses necessarily incurred in respect of a Seaman’s entitlement to repatriation pursuant to any enactment or provision implementing Regulation 2.5 of the 2006 Maritime Labour Convention.

34.5. Expenses necessarily incurred as the result of any statutory obligation or order issued by any governmental agency or authority in relation to any Seaman who goes absent from the Insured Ship without leave if such expense cannot be recovered from the Seaman concerned.

34.6. Expenses necessarily incurred in sending aboard a substitute Seaman by reason of the injury, illness, death or absence without leave of a Seaman.

34.7. Liability to any Seaman for wages or compensation for the loss of his employment following the actual, constructive or compromised total loss of the Insured Ship.

1A Provisos

(a) There is no cover for any Liability or expense incurred only because of the terms of a Crew Contract unless the Insurer has previously approved those terms in Writing. 


(b) There is no cover  under sub- clause 1.3  for Liability or expense which arises because of:
     (i) The sale or laying up of the Insured Ship; or

     (ii) The termination of a Crew Contract in accordance with its terms, or by mutual consent.

(c) Cover under sub-clause 1.7 is limited to a maximum period of 60 days.

 

34. Payment First

34.1. The Insurer may make payments in respect of Liability or expense covered under sub- clauses 1.1 and 1.4 directly to a Seaman or on his behalf to a third party.  The Assured shall be liable to reimburse the Insurer for any payment made in respect of expense covered under sub-clause 1.4.

34.2. Unless the Insurer decides otherwise, it is a condition precedent to any recovery by the Assured under any other clause of this insurance that the Assured shall have discharged the Liability or paid the costs or expense claimed out of funds belonging to the Assured unconditionally and not by way of loan or otherwise.


In order to clarify the cover in relation to special operations and reflect the position adopted by the majority of P&I providers:

32. Special Operations

32.1. Unless and to the extent that an extension of cover is agreed under clause 67, there is no cover under any of clauses 3 to 10 inclusive, clauses 12 to 14 inclusive, or clauses 16 to 19 inclusive for Liability or expense arising from or in respect of the use of the Insured Ship for the following:

32.1.1. Professional salvage or fire fighting services;
32.1.2. Dredging and/or depositing of spoil;
32.1.3. Exploration, survey, drilling or other production operations in connection with oil, gas or mineral production;
32.1.4. Oil Storage
32.1.5. Commercial diving, underwater surveying and underwater operations by a submarine or other underwater vessel or equipment;
32.1.6. Construction including but not limited to installation and maintenance work, pile driving, blasting or core sampling, cable or pipeline laying, maintenance or recovery;
32.1.7. Professional oil spill or other pollution response or training or tank cleaning (other than on the Insured Ship);
32.1.8. Waste disposal or incineration;
32.1.9. Hotel, catering or leisure services on board a permanently moored Ship.

32.2. Where clause 32.1 applies:

32.2.1.  the cover available under clauses 1 (Seamen) and 2 (Liability to Persons other than Seamen) is restricted to Liability and expense only in respect of Seamen and Persons on board the Insured Ship;
32.2.2. the cover available under clause 11 (Wreck) is restricted to Liability under clause 11.1 only;
32.2.3.  the cover available under clause 15 (Pollution) is restricted to Liability and expense only in respect of pollution from the Insured Ship.

Should you have any questions please contact one of the Lodestar team.

In the meantime, please click on the below link to download this circular as a PDF. 

Steven Kirk
 

Download