Rules 2011 – Rule 31
May 2011
SHIPOWNERS' CLUB RULES 2011
PART V LIMITATIONS AND EXCLUSIONS -THE DEFINITION OF
"UNLAWFUL TRADE" WITHIN RULE 31 AND ITS APPLICATION TO
SANCTIONS
The Managers have been following the developments in relation to
sanctions against certain countries for some time.
Rule 31 currently provides:
RULE 31 - LIABILITIES EXCLUDED IF ADVENTURE ILLEGAL, HAZARDOUS
OR IMPROPER
There shall be no right of recovery of any claim from the
Association if it arises out of or is consequent upon an insured
vessel carrying contraband, blockade running or being employed in
an unlawful trade or engaged in illegal fishing, or if the Board
having regard to all the circumstances shall be of the opinion that
the carriage, trade, voyage or any other activity on board or in
connection with the insured vessel, was imprudent, unsafe, unduly
hazardous or improper.
At their meeting on 5th May, 2011 the Directors made a
Regulation in accordance with their powers under Rule 59 that the
term "unlawful trade" in Rule 31 shall include any trade where the
provision of cover or the payment of any claim by the Association
would risk exposing the Association to any sanctions, prohibitions
or restrictions under United Nations Resolutions or the trade or
economic sanctions, laws or regulations of the European Union,
United Kingdom or United States of America.
This will form a Note to Rule 31.
You can download the information here