Marine Commercial Hull. Insurance policy

Transcription

1 Marine Commercial Hull Insurance policy

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3 Contents Marine Commercial Hull Insurance Policy 1 Your duty of disclosure 1 Our agreement 1 Definitions 1 Cover Commercial Vessel 3 Optional extensions 3 Cover Legal Liability 3 Optional extensions 3 Additional Benefits 4 Personal & crew property 4 Exclusions and Other Cover Limitations 4 Sanctions exclusion clause this clause shall be paramount 6 Other Cover Limitations 6 Benefit of insurance and waivers of rights 6 Co-insurance clause 6 Third party interests 6 Due care 6 Survey and manning warranty 6 How Much We Will Pay 6 Cover commercial vessel 6 Cover Legal Liability 7 Cancellation 7 When you can cancel 7 When we can cancel 7 Claims 8 Authorisation 8 Claims procedure 8 Subrogation clause 8 Waiver clause 8 Claims documentation 8 Fraudulent claims 8

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5 Marine Commercial Hull Insurance Policy Your duty of disclosure Before You enter into a contract of general insurance with an insurer, You have a duty, under both the Marine Insurance Act 1909 and the Insurance Contracts Act 1984, to disclose to Us every matter that You know or could reasonably be expected to know which is relevant to Our decision to accept the risk of the insurance and on what terms. You have the same duty of disclosure before You renew, vary, extend or reinstate a contract of general insurance. Your duty does not require You to disclose a matter: That diminishes the risk to be accepted by Us That is of common knowledge That We know, or in the ordinary course of business, should know; and In relation to which compliance with Your duty is waived by the insurer. If You fail to comply with Your duty of disclosure: Where the Marine Insurance Act 1909 applies, We may avoid the contract from inception. Where the Insurance Contracts Act 1984 applies We may be entitled to reduce Our liability under the contract in respect of a claim, or, in certain circumstances, We may cancel the Policy or declare it never existed because it was not properly entered into. If Your non-disclosure was fraudulent, We may also have the option of avoiding the contract from the beginning. Non-disclosure If You fail to comply with Your duty of disclosure, the insurer may be entitled to reduce its liability under the contract in respect of a claim or may cancel the contract. If Your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning. Our agreement We agree to provide You with the insurance as described in this Policy including the Policy Schedule, for the Period of Insurance shown in the Schedule and for any subsequent period where renewal may be agreed, and in return You agree to pay Us the premium by the dates advised to You. Should there be any change in circumstances or any change in the nature of the risks which are the basis of the contract, You must advise Us immediately and in writing. If You fail to comply, no claim arising after the change will be payable, unless We have agreed otherwise. Definitions In this Policy certain words have special meanings. They have the same meanings wherever they appear. These words are: Accidental Means any occurrence or event which results in loss or damage and is unforeseen and unintended and could not have been expected by a person who has actual knowledge of the Commercial Vessel and its operation Commercial Vessel(s) Means the Commercial Vessel(s) in use for payment or reward specified in the Policy Schedule including hull and machinery, trailer, equipment and accessories, sails, masts, spars, standing and running rigging. This excludes: Any commercial vessel capable of a speed exceeding 50 knots; and Moorings. Crew Means any person (including the skipper or Master) working on board the Commercial Vessel as an employee. Diving equipment Means wet and dry suits, tanks, regulators, buoyancy devices, fins and similar equipment used for the purpose of recreational/ sport diving. Equipment and accessories Means any equipment carried on board the Commercial Vessel either in accordance with statutory requirements, for safety or where used in conjunction with the operation of the Commercial Vessel including navigation equipment, radios, GPS, autopilots, lifesaving equipment, tender or life boats but does not include fishing or diving equipment unless You have specially requested them to be covered and they are specified in the Policy Schedule. Tender boats, dinghies or lifeboats are not covered where they are capable of a speed exceeding 50 knots. Excess Means the sum shown in the Schedule, this Policy, or an endorsement to this Policy (if any) which any loss or claim must exceed before We will be liable under this Policy and which We will not be liable to pay in respect of each loss. Where an Excess is expressed as: A specified sum it means the amount specified A percentage it means the monetary equivalent of such percentage provided that where a claim is made in respect of more than one occurrence, the Excess will apply as though a claim was made for each individual occurrence. 1

6 Fishing equipment Means rods, reels, tackles and other similar equipment used for the purpose of recreational/sports fishing. Hull Means the structure of the Commercial Vessel including bottom, superstructure, deck, cabins and fixtures and fittings normally sold with the hull and not normally removable. Machinery Means the mechanical and electrical components of the Commercial Vessel not normally removable from it, excluding the items listed as equipment and accessories but including inboard/outboard motors, stern drive or jet units, thrusters, gear boxes, propellers, shafts, wiring harnesses/looms, fuel tanks and lines, instruments, generators and refrigeration or cooling machinery. Limit of liability Means the limit of liability specified in the Policy Schedule. Our liability is limited to the amount stated for any one loss or series of losses arising from the one event, plus any amount provided for under the Additional Benefits in this policy. Legal liability Means Your responsibility at law to compensate another party for death, injury or property damage. Policy Means this Policy wording, the current Schedule, and any endorsement, all of which are to be read together. Premium Means the premium specified in the current Policy Schedule and any endorsement premium. Removal of wreck Means the physical act of removing from a site/position, generally as a result of a legal or statutory responsibility, a Commercial Vessel which has been damaged to the extent that it has no residual commercial value. Salvage Has a dual meaning which can be either: The physical act of recovering a Commercial Vessel which has been lost or damaged where it has residual commercial value; or What remains of the Commercial Vessel after the act of salvage. Salvage costs Those costs incurred in connection with saving a Commercial Vessel which has been lost or damaged. Seaworthy Means the expected state of the Commercial Vessel which is such that it is in good order and repair and fit including being properly manned to encounter the normal perils of the sea and inland waters comprising its navigational limits detailed in the Policy Schedule. Total sum insured Means the amount We have agreed to insure Your Commercial Vessel for and is the total of the values for the hull, motors/ machinery, sails, masts, spars, standing and running rigging, equipment and accessories and trailer. This will be specified in the Policy Schedule. Usage Means the specified Commercial Vessel use shown in the Policy Schedule declared by You. This usage automatically includes voluntary rescue work and incidental private use by You and Your authorised employees provided that statutory commercial licencing, registration, classification and survey requirements are complied with. You or Your Means the person(s) or entity named in the Policy Schedule as the Insured. We or Our or Us Means the insurance company named in the Policy Schedule. 2

7 Cover Commercial Vessel We will indemnify You, the insured named in the Schedule, against loss or damage to the Commercial Vessel(s) specified in the Policy Schedule: Subject to the conditions contained in this policy Whilst navigating, laid up ashore at any slipway, marina or location or in transit within the navigational and geographical limits specified in the policy schedule During the period of insurance specified in the policy schedule; and As a result of one of the following events: Accidental damage, or damage caused by stranding, grounding or sinking provided the Commercial Vessel was seaworthy at the time of the sinking. Accidental land transit damage provided the Commercial Vessel is: In transit on its own trailer, designed to be trailered and in compliance with all statutory requirements Being transported by a professional road transporter, provided You have advised Us in writing prior to the transit commencing and you have agreed to and You have complied with any conditions We may have including application of a variation to the standard excess, where necessary, and paid any additional premium We have advised. Latent defect within the hull, motors or machinery that has not resulted from Your lack of due diligence and excluding the cost of repairing and/or replacing the latently defective part itself Negligence of external repairers or charterers, crew, master or skipper provided that incident has not resulted from Your lack of due diligence Theft of the entire Commercial Vessel or of parts of the Commercial Vessel from the Commercial Vessel itself or place of storage provided that You have taken all reasonable precautions to prevent such theft and the party(ies) involved have no interest in the Commercial Vessel Damage caused by strikers, locked out workers or persons taking part in labour disturbances, riots or civil commotions The wilful act of a third party which was committed without Your knowledge or connivance Deliberate damage by State, Federal or Local Authorities exercising their rights under current legislation in order to prevent or minimise an environmental hazard/ pollution resulting from an insured peril and provided this has not resulted from your lack of due diligence Salvage Costs incurred in order to minimise loss or damage to the Commercial Vessel or to remove the Commercial Vessel to safety. You do not need Our authority to take such action if it is an emergency and You are unable to contact Us in time. Optional extensions Sports, fishing and diving equipment Only where specified in the Policy Schedule and provided You have provided Us with a list of such equipment, We agree to provide additional cover for: Accidental damage to Your sports, fishing and/or diving equipment while on Your Commercial Vessel but excluding any damage whilst the item is in use Theft, provided there is visible evidence of forcible and violent entry: Into a securely locked place of storage; or Into the securely locked Commercial Vessel or carrying compartment of the Commercial Vessel. Cover Legal Liability Where specified in the Policy Schedule We will pay the amount that You as owner of the Commercial Vessel are legally liable to pay for: Damage to other people s property (other than fare paying passengers unless You have requested the optional extension detailed below) Personal injury to or death of any person other than: You Your crew Paying passengers unless You have requested the optional extension detailed below. This insurance cover and any optional extensions specified in the Policy Schedule are extended to any person navigating or in charge of the Commercial Vessel with Your permission other than a person operating or employed by a repairer, marina, yacht club, slip way, sales agency or other similar organisation. Optional extensions Passenger liability Only where specified in the Policy Schedule We cover You for the amount You are liable to pay following an accident caused by the use of Your Commercial Vessel or carriage of passengers on Your Commercial Vessel that causes: Damage to paying passenger s property (excluding watches, mobile phones, Personal Data Assistants (PDA) and laptop computers, mobile GPRS units, precious metals and stones, money (which means any coin or banknote), bullion, cheques, credit or other card sales vouchers, securities, shares, bonds, deeds, bills of exchange, or any documents that represent money); and/or Personal injury to or death of any paying passenger: While being carried on or whilst entering or leaving the Commercial Vessel via a jetty, pontoon or wharf owned by or maintained by You; and/or Caused by food or drink which You have prepared and served on the Commercial Vessel. 3

8 Pollution liability Only where specified in the Policy Schedule We cover You for the amount You are liable to pay for: The costs of cleaning up an accident site, up to $25,000 unless otherwise specified in the Policy Schedule, following an insured event; and/or Actual physical damage to property caused by accidental discharge, spillage, leakage or emission of oil, petroleum products or sewage provided that the event or discharge, spillage, leakage or emission was not caused by Your negligence or wilful misconduct. This cover extension specifically excludes: Death, bodily injury or illness Contractual or assumed liability Consequential loss or loss of use Breaches of Federal, State or local legislation regulating or controlling discharge, spillage, leakage or emission of substances from the Commercial Vessel. Additional Benefits Personal & crew property Where We pay a claim under this Policy for loss or damage to the Commercial Vessel, We will also pay up to $1000 for loss or damage to any personal property of You or Your employees which were carried on the Commercial Vessel at the time of the incident, excluding watches, mobile phones, PDA and laptop computers, mobile GPRS units, precious metals and stones, money (which means any coin or banknote), bullion, cheques, credit or other card sales vouchers, securities, shares, bonds, deeds, bills of exchange, or any documents that represent money. Stranding grounding & submersion If Your Commercial Vessel is grounded or stranded, We will pay the cost of inspecting the hull to see if it is damaged, provided that: Such grounding or stranding was not deliberately caused by You or You can show that the Commercial Vessel was deliberately grounded as part of a general average act or to avoid or minimise further damage to the Commercial Vessel following an accident. If Your motor is submerged We will pay the reasonable costs to: Dismantle, clean and oil the motor Dry all electrical equipment and instruments. Substitute boat If Your Schedule includes legal liability cover then the legal liability cover also applies when You are using a substitute Commercial Vessel not owned by You, Your household or any person in Your employ because Your own Commercial Vessel is unable to be used whilst undergoing unscheduled maintenance or repairs. Return to base cover We will pay up to $1000 towards the cost of returning Your Commercial Vessel from: The site of the accident Port/place of refuge; or The place of repairs, to its normal place of storage following an event causing loss or damage to the Commercial Vessel to the extent that the Commercial Vessel cannot be used in addition to the salvage costs incurred to tow or remove the Commercial Vessel to safety. Removal of wreck Where Your Commercial Vessel has been sunk or damaged by an insured event to the extent that it no longer has a residual commercial value, or the recovery costs would exceed the residual commercial value, but You nevertheless have a legal responsibility to remove the Commercial Vessel, We will pay the reasonable costs of such removal up to $1,000,000 for each and every loss or series of losses caused by the insured event in addition to the sum insured expressed in the Schedule above for either the legal liability or Commercial Vessel cover. Exclusions and Other Cover Limitations This Policy does not cover You for: Commercial Vessels other than those listed in the Policy Schedule Events other than those listed in the cover(s) and option(s) listed in the Policy Schedule Navigation or Transits outside the navigational and geographical limits shown on the Policy Schedule Usage other than that advised to Us, except for: Incidental private use by You and Your authorised employees; and Voluntary rescue work. provided that statutory commercial licencing, registration, classification and survey requirements are complied with: Racing, speed tests or trials Loss or damage occurring whilst the Commercial Vessel is undergoing major hull repairs or alteration, unless You tell Us beforehand and We agree to cover You Unlawful usage Operation of the Commercial Vessel or transport of the Commercial Vessel on land by an unlicensed person, or one whose faculties were impaired by drugs or alcohol in excess of that permitted by law, unless You did not know or suspect, or could not reasonably have known or suspected the circumstances or condition of the person controlling the Commercial Vessel or driving the conveying vehicle. Operation of the Commercial Vessel: While in an unseaworthy state At a speed exceeding the maximum design speed; With a motor more powerful than recommended by the manufacturer 4

9 With a load or number of passengers in excess of that recommended by the manufacturer When not in compliance with statutory/licencing requirements or outside any limits imposed by any certificate of construction and performance, licence or similar unless the speed, motor or condition of the Commercial Vessel or overloading did not contribute to the loss and/or the condition was not reasonably detectable or known by You. Loss, damage or destruction of the boat or any cost or expense directly or indirectly caused by or contributed to by or arising from any of the following: 1. Damage to your commercial vessel before this insurance started. 2. Reduction in value of your commercial vessel due to age or condition or because of repairs or resulting from any unrepaired damage. 3. Financial loss because of loss of use of your commercial vessel following damage. 4. Damage caused by your misconduct or intentionally caused by you or any person acting with your expressed or implied consent. 5. Delay, loss of market, financial or consequential loss of any description. 6. Unseaworthiness or lack of repair. 7. The cost of repairing or replacing any part of the commercial vessel defective by reason of fault or error in design or construction. 8. Ordinary wear and tear to any part or parts of your commercial vessel including wet or dry rot, mould, rusting or other forms of corrosion, vermin, or marine growth or any damage arising therefrom. 9. Loss of data from any computer hardware or software. 10. Electrical, mechanical or electronic breakdown or malfunction including failure to recognise, interpret or process any date or to function correctly as a result of such breakdown or malfunction. We will pay for the resultant damage to your commercial vessel due to the breakdown or malfunction but not for the item that broke down. 11. Sinking, loss or damage caused by your misconduct or intentionally caused by you or any person acting with your expressed or implied consent except where required by law. 12. Theft by persons to whom you have loaned your commercial vessel. 13. Damage to sails and protective covers caused by water or the force of the wind while set. 14. Unsecured outboard motors falling off the commercial vessel. 15. Damage to tyres on your trailer which results from application of the brakes, punctures, cuts or bursting. 16. Legal seizure, confiscation, nationalisation or requisition of the commercial vessel. 17. War or warlike activities, which means invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection or civil strife following any of these. 18. The absence, shortage or withholding of labour of any description resulting from strike, lockout, labour disturbance, riot or civil commotion. 19. Loss, damage or expense caused directly or indirectly by radiation, radioactive material, nuclear process or from nuclear weapons or material. 20. Arising from the use or operation, as a means of inflicting harm, of any computer, computer system, computer software program, computer virus or process or any other electronic system. Your costs of liability for: 1. Incidents which happened before this insurance started. 2. Death or bodily injury or third party property damaged caused deliberately by you. 3. Death or bodily injury to: You, your family or your crew Any tradesperson or company you or an authorised user employs including where engaged in the repair, servicing or maintenance of your commercial vessel and/or Any other person who is covered, or should have been covered by compulsory third party or workers compensation insurance. 4. Property belonging to you or your crew, or in your or your crew s control except as provided for in the additional benefits personal & crew property. 5. Claims arising either directly or indirectly from pollution or contamination by any substance, except where the optional extension pollution liability has been selected and is shown on the schedule and only to the extent outlined in that cover. 6. Death or bodily injury to passengers, or liability for passenger s property except where the optional extension passenger liability has been selected and is shown on the schedule and only to the extent outlined in that cover. 7. Claims arising from the use of any fishing or diving equipment or from the activities of or in connection with instructions given regarding: Boom netting, water-skiing, parasailing, aquaplaning or similar activity Snorkelling, scuba diving, tunnel diving, diving or diving operations Any other similar activities involving swimming by passengers on your commercial vessel. 8. Actions that are brought against you in a court or tribunal outside australia or a court or tribunal that applies laws other than the law of a state or territory of australia. 9. Any fine or penalty. 10. Aggravated, exemplary or punitive damages. Additionally, the following exclusions apply to either the cover for your commercial vessel or your legal liability regardless of any other cause or event contributing concurrently or in any other sequence to the loss: 5

10 a) Ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel. b) The radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof. c) Any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. d) The radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter, but this exclusion does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes. Any actual or alleged liability whatsoever for any claim or claim in respect of loss or losses directly or indirectly arising out of, resulting from or in consequence of asbestos; and f) Any chemical, biological, bio-chemical or electromagnetic weapon. This Policy also excludes any loss, damage, destruction, cost or expense of any nature directly or indirectly caused by, contributed to by, resulting from or arising out of or in conjunction with any action taken in controlling, preventing, suppressing, retaliating against, responding to or in any way relating to the above a) to f) additional exclusions. Co-insurance clause If, at the time of any loss or damage to the Commercial Vessel, there is any other current insurance, whether effected by You or any other person or persons, covering the same Commercial Vessel, the We will not be liable (where legally entitled) for more than the rateable proportion of the loss, damage or expense. Third party interests You must let Us know the names and interests of any other party (e.g. financiers, owners or lessors) who You require to be covered by this insurance. We will protect their interests only if You have informed Us about them and they are noted on Your Policy Schedule. Due care You must, at all times, take appropriate care: In the operation of the commercial vessel in your care custody and control To protect the commercial vessel from loss or damage Following an event causing loss or damage to take reasonable steps to minimise loss or prevent further damage or loss; and To preserve rights against any other party who may have responsibility for the loss, damage or liability. Sanctions exclusion clause this clause shall be paramount No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom, United States of America or Australia. Other Cover Limitations Benefit of insurance and waivers of rights Where the Commercial Vessel is lost or damaged in transit, the carrier or any other bailee cannot claim any benefit under this Policy. Your rights are not prejudiced by any agreement exempting the carrier from liability but where any other person(s) is liable to compensate You for any loss or damage which is covered by this Policy but where You have agreed not to seek recovery of any moneys from that person(s), then We will not provide cover under this Policy for such or damage or may reduce Our liability under the Policy contract as permitted by law. 6 Survey and manning warranty The Commercial Vessel must at all times be: Properly registered and in current survey with the appropriate government authorities Operated within the limits and in compliance with any licence or government authority restrictions or conditions; and Operated by a master or skipper or other person who is the holder of an appropriate competency certificate issued by a government authority (where required). How Much We Will Pay Cover commercial vessel Subject to the terms, conditions, limitations and the maximum limit of liability shown in the Policy Schedule, in the event of a total or constructive total loss We will at Our option: Pay You, or other parties agreed with You, the market value of Your Commercial Vessel up to the sum insured shown in the Policy Schedule; or Pay You, or other parties agreed with You, the agreed sum insured shown in the Policy Schedule; or Replace the Commercial Vessel with one of similar age and condition. Where the Commercial Vessel is damaged We pay the reasonable costs of repairing the Commercial Vessel or part or item or replacing the damaged or lost part or item(s) but not exceeding the market value or agreed value shown in the Policy Schedule of the entire Commercial Vessel, or item or part.

11 The cost of materials or parts used in repairs is payable without deduction, new for old. Where any item of equipment or accessories which is less than 10 years old is lost or damaged to the extent that it cannot be repaired, We will pay for its replacement without deduction, new for old. This benefit does not apply to lifeboats or tender boats or equipment contained therein, for which an amount for depreciation will be deducted in making a settlement. Where Your Commercial Vessel is less than one year old and becomes a total loss as a result of an insured event, We will: Replace Your Commercial Vessel with a new replacement vessel provided one is locally available; and Pay the registration and dealer delivery fee. If a new replacement vessel is not available, We will replace Your Commercial Vessel with the nearest equivalent vessel available. You are fully insured again for the amount shown in Your Policy Schedule following a claim, except where Your claim is for a total loss in which case Your Policy will end then and there will be no refund of premium. The above excludes any additional amounts payable under the Additional Benefits. Cover Legal Liability Subject to the terms, conditions, limitations and the maximum limit of liability shown in the Policy Schedule, at Our option We will pay the costs of: All sums which you become legally liable to pay as compensation for physical loss or damage to third party property or death or personal injury The claimant s legal expenses and any interest awarded Legal costs incurred with our consent in addition to the above; and The additional benefits shown in the section additional benefits where applicable; or The amount(s) we negotiate on your behalf, subject to the maximum limit of liability shown in the policy schedule. All claims We pay under this Policy (either Cover) will have any Excess deducted prior to settlement. Goods and Services Tax Where We make a payment under this Policy for the acquisition of goods, services or other supply, We will reduce the amount of the payment by the amount of any input tax credit that You are, or will be, or would have been entitled to under A New Tax System (Goods and Services Tax) Act 1999, in relation to that acquisition, whether or not that acquisition is actually made. Where We make a payment under this Policy as compensation instead of payment for the acquisition of goods, services or other supply, We will reduce the amount of the payment by the amount of any input tax credit that You would have been entitled to under A New Tax System (Goods and Services Tax) Act 1999 had the payment been applied to acquire such goods, services or other supply. Cancellation This Policy may be cancelled by either You or Us in writing as set out below. When you can cancel You may cancel this Policy at any time by giving written notice to Us. When we can cancel Where the Marine Insurance Act 1909 applies We may cancel this Policy by giving 30 days notice in the event of any non-payment of premium, or for any other reason available at law. Where the Insurance Contracts Act 1984 applies Under Section 60 of the Insurance Contracts Act 1984, We may cancel this Policy or any Section at any time, by giving notice in writing to You of the date from which cancellation is to take effect, where You have: Failed to comply with your duty of utmost good faith Failed to comply with your duty of disclosure at the time when this policy or any section of the policy was entered into, varied, altered, or renewed Made a misrepresentation to us during the negotiations for this policy, but before we agreed to issue this policy Failed to comply with a provision of the policy Failed to pay the premium for this policy Made a fraudulent claim under this policy, or any other contract of insurance (whether with us or another insurer) that provided cover during any part of the period of insurance of this policy Failed to comply with the requirement in this policy that you notify us of an act or omission which occurred after this policy was entered into; or Failed to notify us of any specific act or omission or such a notification as is required under the terms of this policy. We may deliver such notice to You personally or by post at Your address last notified to Us. Under Section 60 of the Insurance Contracts Act 1984, We may cancel this Policy at any time where: It is in force by virtue of section 58 of the insurance contracts act 1984; or It is an interim contract of general insurance. After cancellation, We will refund the premium for the time remaining on the Policy, less any non-refundable duties, unless You have made a fraudulent claim. 7

12 Claims Authorisation We may give to and obtain from any other insurers, insurance reference bureaus and credit reporting agencies any information relating to Your credit or insurance history as well as insurance claims information. Claims procedure If there is any event which may result in a claim under this Policy You must take the following steps: Take all reasonable measures to avoid or minimise any loss, damage or expense (the costs of which will be payable by the insurers in addition to the sum insured provided they are both reasonable and necessary) Ensure that all rights against third parties are properly preserved and exercised Inform the police as soon as possible after a theft has occurred Inform Us about the event as soon as possible; and Submit as soon as possible all written particulars, supporting documentation and correspondence regarding the event including invoices, statements or other documents evidencing the amount being claimed. You should not, without Our consent: Make or accept any offer or payment, defend settle or attempt to settle any claim; or Admit responsibility for the incident When other parties may be liable: Do not release those parties from liability Deliver to the parties responsible a notice of intention to claim; and Inform Us of the circumstances and let Us have a copy of all relevant documents. Claims documentation You are required, in the interests of prompt settlement of any claim and to avoid prejudicing Your claim under the Policy to submit all available supporting documentation without delay including correspondence exchanged with any third party regarding their liability for the loss or damage. Fraudulent claims If any claim is fraudulent or false in any respect We may refuse to pay the whole or part of the claim to the extent permitted by law, and may also be entitled to cancel the Policy. Subrogation clause When We settle a claim, We may endeavour to pursue recovery rights against any third party who caused or contributed to loss or damage to the Commercial Vessel and or Your third party liability. You authorise Us to act in Your name in such recovery action, and undertake to give Us reasonable assistance in such actions. Waiver clause Measures taken by You or Us with the object of saving, protecting or recovering the Commercial Vessel shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. 8

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16 Preparation date: 11/3/2004 MA00015 REV2 10/11 Insurer CGU Marine Insurance A Division of CGU Insurance Limited ABN