PART I: INTRODUCTORY

RULE I: BASIS OF COVER

1 All contracts of insurance afforded by the Association to its Members incorporate all the provisions of these Rules and any Regulations made hereunder.

2 The standard cover afforded by the Association to its Members is set out in Rule 2.

3 By virtue of Rules 3 and 4 a Member may be afforded special cover against risks other than those set out in Rule 2 provided that such special cover has been agreed by the Managers in writing.

4 By virtue of Rule 6 a Member may be afforded Freight, Demurrage and Defence cover as specified in Rule 6 provided that such cover has been agreed by the Managers in writing.

5 The cover afforded by the Association under Rules 2, 3, 4 and 6 is always subject to the procedures, limitations and exclusions set out in Parts IV and V and in the remainder of these Rules unless otherwise agreed by the Managers in writing.

6 A Member is only covered against risks which arise:

A out of events occurring during the period of insurance of a vessel in
the Association;

B in respect of the Member's interest in the insured vessel; and

C in connection with the operation of the insured vessel by or on behalf of the Member.

7 The cover afforded by the Association under Rules 2, 3, 4 and 6 is conditional on payment of calls or premiums in accordance with Rules 49 to 54 unless otherwise agreed by the Managers in writing.

8 No act, omission, course of dealing, forbearance, delay or indulgence by the Association in enforcing any of these Rules or any of the terms or conditions of its contracts with Members nor any granting of time by the Association shall prejudice or affect the rights and remedies of the Association under these Rules or under such contracts, and no such matter shall be treated as any evidence of waiver of the Association's rights thereunder, nor shall any waiver of a breach by a Member of such Rules or contracts operate as a waiver of any subsequent breach thereof. The Association shall at all times and without notice be entitled to insist on the strict application of these Rules and on the strict enforcement of its contracts with Members.

9 All contracts of insurance afforded by the Asscoiation to its Members and these Rules and Regulations made hereunder shall be governed by and construed in accordance with English Law. A person who is not a Member of the Association may not enforce any terms of any contracts of insurance afforded by the Association to its Members under the Contracts (Rights of Third Parties) Act 1999.