SHIRBIT Insurance Company LTD.
18 Yad Harutzim St., Industrial Zone Poleg, P.O.B 6137,
09-8922281, Fax: 09-8922282
POLICY – HULL
WE SHIRBIT INSURANCE COMPANY LTD., HEREBY
AGREE, IN CONSIDERATION OF THE PAYMENT TO US BY OR ON BEHALF OF THE INSURED OF
THE PREMIUM SPECIFIED IN THE SCHEDULE, TO INSURE THE INTEREST DESCRIBED HEREIN
AGAINST LOSS DAMAGE OR EXPENSE IN THE PROPORTION AND MANNER AS HEREINAFTER
PROVIDED, SUBJECT TO THE GENERAL CONDITIONS PRINTED HEREIN AND THE SPECIAL
CONDITIONS STIPULATED IN THE SCHEDULE AND CLAUSES, ALL FORMING AN INTEGRAL PART
OF THIS POLICY.
THE LIABILITY under this policy shall not exceed its rateable
proportion having regard to other insurances whether Marine of Fire.
IN WITNESS WHEREOF THIS POLICY HAS BEEN SIGNED AS HEREIN ON
THIS INSURANCE IS SUBJECT TO ENGLISH
LAW AND PRACTICE AND ALL CLAIMS UNDER THIS POLICY SHALL BE ADJUSTED IN
ACCORDANCE THEREWITH BY THE COMPETENT COURT IN TEL AVIV, ISRAEL. TO THE EXCLUSIVE JURISDICTION OF WICH ALL PARTIES
TO AND FORMING PART OF THE MARINE HULL POLICY
The insured shall maintain and keep the vessel, her
machinery, tackle, sails and equipment in a proper state of repair and
seaworthiness and shall at all times exercise due care and diligence in
Warranted vessel not to sail unless having on board
complement of crew in accordance with the requirements of the Israeli Competent
Warranted vessel to be operated in Israel Territorial Waters
unless agreed otherwise by the Insurers.
Warranted, except for Egypt, vessel not to call any Arab Port or country, and not to enter Arab
territorial waters, unless in distress or due to force majeure.
Warranted vessel shall not be engaged in towing operations
unless for life salvage purposes only.
CONDITION PRECEDENT it is a condition precedent to the liability of the
The vessel is registered with the Ministry of
A seaworthiness certificate is in force throughout the
period of insurance.
The vessel is operated at all times by a qualified person
holding a valid operating licence issued by the competent authority in Israel.
When not in use the insured vessel is to be properly
protected and kept in a safely locked place, otherwise the risks of theft,
burglary, forcible entry and malicious damage will be expressly excluded.
All conditions and provisos contained in the Certificate of
Registration and/or the operating licence as above are deemed incorporated in
EXCLUDING SEEPAGE AND POLLUTION
THE FOLLOWING CLAUSES
SHALL BE PARAMOUNT AND SHALL OVERRIDE ANYTHING CONTAINED IN THIS INSURANCE
In no case shall this insurance cover loss, damage, liability or expense caused
war, civil war, revolution, rebellion, insurrection, or
civil strife arising therefrom, or any hostile act by or against a belligerent
capture, seizure, arrest, restraint or detainment (barratry
and piracy excepted), and the consequences thereof or any attempt thereat.
derelict, mines, torpedoes, bombs or other derelict weapons
STRIKES AND POLITICAL ACTS EXCLUSION
In no case shall this insurance cover loss, damage, liability or expense caused
strikers, locked-out workman or persons taking part in
labour disturbances, riots or civil commotions.
any terrorist or any person acting from a political motive.
In no case shall this insurance cover loss, damage, liability or expense
any weapon of war employing atomic or nuclear fission and/or
fusion or other like reaction or radioactive force or matter
ionising radiations from or contaminatin by radioactivity
from any nuclear fuel or from any nuclear waste from the combustion of nuclear
the radioactive, toxic, explosive or other hazardous
properties of any explosive nuclear assembly or nuclear component thereof.
CONDITIONS RELATING TO ACCIDENTS AND
CLAIMS ATTACHED TO POLICY NO.
In the event of any accident of occurrence which may give
rise to a claim under this policy a prompt notice must be given to SHIRBIT
INSURANCE COMPANY LTD.
The Insured shall supply full information of the accident
and submit a detailed written advice of the occurrence including names,
addresses of all witnesses and any other persons involved in the accident, as
soon as possible after the occurrence.
The Insured must submit to the Insurers as soon as possible
any summons, writ, claim, loss advice etc. in relation to any occurrence which
may inflict any liability on the Insured, and which are addressed to the
Insured, its Agents or Servants, by any third party.
The Company shall be entitled to decide where repairs shall be
carried out and may take or, require to be taken, tenders for carrying out of
No liability of any sort shall be admitted nor any offer
promise or payment made by the Insured to claimants nor legal expenses incurred
without the written consent of the Company who shall be entitled, if they so
desire, to take over and conduct in the name of the Insured, the defence of any
action, or to prosecute any claim for indemnity or damages or otherwise against
any third party.
Immediately the Insured shall become aware of any loss or
damage covered by this Policy he shall take all reasonable steps to minimize
such loss or damage and to trace and recover the property lost. In the case of
loss or damage by theft or pilferage, if included in the perils insured against
under this policy, the insured shall take all reasonable steps to discover and
punish any guilty person or persons and give immediate notice to the Police.
SETTLEMENT AND MEASURE OF INDEMNITY
If the property insured under this policy or any part
thereof shall at the time of any accident which may give rise to a claim, be of
greater value than the amount insured, the Insured shall be deemed to be his
own Insurer for the difference between the insured amount and actual value and,
shall bear a rateable proportion of the loss accordingly.
Notwithstanding anything to the contrary contained in the
conditions of the Institute Yacht Clauses but subject always to the other terms
and conditions of the above clauses, it is hereby declared and agreed in any
event of loss or damage either partial or total or a constructive total loss to
the insured property or to any part thereof the Insurer shall bear only the
cost of replacement of the actual value of the damaged or lost property prior
to the occurrence of the damage, and shall always deduct "New for
If at the time of the occurrence of any loss covered by this
Policy there shall be existing any other Insurance of any nature whatsoever
covering the same, whether effected by Insurers or not, then the Company shall not be liable to pay or
contribute more than its rateable proportion of any loss.
In any event where a claim has been settled under this
policy during the currency of the policy, the sums insured as specified in the
Schedule shall be reinstated subject to payment of additional pro-rata premium,
by the Insured.
The Company shall not be bound to send any
notice to renew this policy. The Company shall at any time by giving notice in writing to
the Insured by registered letter at his address last known to the Company be at liberty to terminate and
cancel the Policy 30 days as from the date of such notice.
IT IS HEREBY DECLARED
AND AGREED THAT AS THE PREMIUM HEREON IS CALCULATED ON THE SEASONAL USE OF THE
INTERST INSURED, NO REFUND OF PREMIUM WILL BECOME DUE TO THE INSURED IN THE
EVENT OF CANCELLATION OF THE POLICY BY THE INSURED.
(FOR USE ONLY WITH THE NEW MARINE POLICY FORM)
Insurance is subject to English law and practice
the hull, machinery, boat(s), gear and equipment, such as would normally be
sold with her if she changed hands.
IN COMMISSION AND LAID UP
The vessel is covered subject to the provisions of this
while in commission at sea or on inland waters or in port,
docks, marinas, on ways, gridirons, pontoons, or on the hard or mud or at place
of storage ashore, including lifting or hauling out and launching, with leave
to sail or navigate with or without pilots, to go on trial trips and to assist
and to tow vessels or craft in distress, or as is customary, but it is
warranted that the Vessel shall not be towed, except as is customary or when in
need of assistance, or undertake towage or salvoage services under a contract
previously arranged by Owners, Masters, Managers or Charterers.
while laid up out of commission as provided for in Clause 4
below, including lifting or hauling out and launching, while begin moved in
shipyard or marina, dismantling, fitting out, overhauling, normal maintenance
or while under survey, (also to include docking and undocking and periods laid
up afloat incidental to laying up or fitting out and with leave to shift in tow
or otherwise to or from her lay-up berth but not outside the limits of the port
or place in which the Vessel is laid up) but excluding, unless notice be given
to the Underwriters and any additional premium required by them agreed, any
period for which the Vessel is used as a houseboat or is under major repair or
Notwithstanding Clause 2.1 above the gear and equipment,
including outboard motors, are covered subject to the provisions of this
insurance while in place of storage or repair ashore.
NAVIGATING AND CHARTER HIRE WARRANTIES
Warranted not navigating outside the limits stated in
Schedule to the policy or, provided previous notice be given to the
Underwriters, held covered on terms to be agreed.
Warranted to be used solely for private pleasure purposes
and not for hire charter or reward, unless specially agreed by the
LAID UP WARRANTY
Warranted laid up out of commission as stated in the Schedule to the
policy, or held covered on terms to be agreed provided previous notice be given
to the Underwriters.
Warranted that the maximum designed speed of the Vessel, or
the parent Vessel in the case of a Vessel with boat(s), does not exceed 17
Where the Underwriters have agreed to delete this warranty,
the conditions of the Speedboat Clause 19 below shall also apply.
Should the Vessel at the expiration of this insurance be at sea or in
distress or at a port or place of refuge or of call, she shall, provided prompt
notice be given to the Underwriters, be held covered at a premium to be agreed
until anchored or moored at her next port of call in good safety.
No assignment of or interest in this insurance or in any moneys which
may be or become payable thereunder is to be binding on or recognised by the
Underwriters unless a dated notice of such assignment or interest signed by the
Assured, and by the assignor in the case of subsequent assignment, is endorsed
on the policy and the policy with such endorsement is produced before payment
of any claim or return of premium thereunder.
CHANGE OF OWNERSHIP
This Clause 8 shall prevail notwithstanding any provision whether
written typed or printed in this insurance inconsistent herewith.
Should the Vessel be sold or transferred to new ownership,
or, where the Vessel is owned by a company, should there be a change in the
controlling interest(s) of the company, then, unless the Underwriters agree in writing
to continue the insurance, this insurance shall become cancelled from the time
of such sale transfer or change and a pro rata daily net return of premium be
made calculated on the premium charged for the in commission and/or laid up
If however the Vessel shall have left her moorings or be at
sea at the time of sale or transfer such cancellation shall if required by the
Assured be suspended until arrival at port or place of destination.
Subject always to the exclusions in this insurance
this insurance covers loss of or damage to the
subject-matter insured caused by:
perils of the seas rivers lakes or other navigable waters
contact with dock or harbour equipment or installation, land
conveyance, aircraft or similar objects or objects falling therefrom
earthquake volcanic eruption or lightning.
and, provided such loss or damage has not resulted from want
of due diligence by the Assured Owners or Managers, this insurance covers
loss of or damage to the subject-matter insured caused by
accidents in loading, discharging or moving stores, gear,
equipment, machinery or fuel
theft of the entire Vessel or her boat(s), or outboard
motor(s) provided it is securely locked to the Vessel or her boat(s) by an
anti-theft device in addition to its normal method of attachment, or following
upon forcible entry into the Vessel or place of storage or repair, theft of
machinery including outboard motor(s), gear or equipment.
loss of or damage to the subject-matter insured, excepting
motor and connections (but not strut shaft or propeller) electrical equipment
and batteries and connections, caused by
latent defects in hull or machinery, breakage of shafts or
bursting of boilers (excluding the cost and expense of replacing or repairing
the defective part broken shaft or burst boiler).
the negligence of any person whatsoever, but excluding the
cost of making good any defect resulting from either negligence or breach of
contract In respect of any repair or alteration work carried out for the
account of the Assured and/or the Owners or in respect of the maintenance of
this insurance covers the expense of sighting the bottom
after a stranding, if reasonably incurred specially for that purpose, even if
no damage be found.
No claim shall be allowed in respect of any
outboard motor dropping off or falling overboard
ship's boat having a maximum designed speed
exceeding 17 knots, unless such boat is specially covered herein and subject
also to the conditions of the Speedboat Cause 19 below, or is on the parent
Vessel or laid up ashore
ship's boat not permanently marked with the name
of the parent Vessel.
sails and protective covers split by the wind or
blown away while set, unless in consequence of damage to the spars to which
sails are bent, or occasioned by the Vessel being stranded or in collision or
contact with any external substance (ice included) other than water
sails, masts, spars or standing and running
rigging while the Vessel is racing, unless the loss or damage is caused by the
Vessel being stranded, sunk, burnt, on fire or in collision or contact with any
external substance (ice included) other than water
consumable stores, fishing gear or moorings
sheathing, or repairs thereto, unless the loss or
damage has been caused by the Vessel being stranded, sunk, burnt, on fire or in
collision or contact with any external substance (ice included) other than
loss or expenditure incurred in remedying a fault
in design or construction or any cost or expense incurred by reason of
betterment or alteration in design or construction
motor and connections (but not strut shaft or
propeller) electrical equipment and batteries and connections, where the loss
or damage has been caused by heavy weather, unless the loss or damage has been
caused by the Vessel being immersed, but this clause 10.10 shall not exclude
loss or damage caused by the Vessel being stranded or in collision or contact
with another vessel, pier or jetty.
LIABILITIES TO THIRD PARTIES
Clause only to apply when a sum is stated for this purpose in the Schedule to
The Underwriters agree to indemnify the Assured for any sum
or sums which the Assured shall become legally liable to pay and shall pay, by
reason of interest in the insured Vessel and arising out of accidents occurring
during the currency of this insurance, in respect of :
loss of or damage to any other vessel or property whatsoever
loss of life, personal injury or illness, including payments
made for life salvage, caused on or near the Vessel or any other vessel.
any attempted or actual raising, removal or destruction of
the wreck of the insured Vessel or the cargo thereof or any neglect or failure
to raise, remove or destroy the same.
The underwriters will also pay, provided their prior written consent has
the legal costs incurred by the Assured or which the Assured
may be compelled to pay in contesting liability or taking proceedings to limit
the costs for representation at any coroner's inquest or
fatal accident enquiry.
Should the Vessel hereby insured come into collision with or receive
salvage services from another vessel belonging - wholly or in part to the same
Owners or under the same management, the Assured shall have the same rights
under this insurance as they would have were the other vessel entirely the
property of Owners not interested in the Vessel hereby insured; but in such
cases the liability for the collision or the amount payable for the services
rendered shall be referred to a sole arbitrator to be agreed upon between the
Underwriters and the Assured.
NAVIGATION BY OTHER PERSONS
The provisions of this Clause 11 shall extend to any person navigating
or in charge of the insured Vessel with the permission of the Assured named in
this insurance (other than a person operating, or employed by the operator of,
a shipyard, marine, repair yard, slipway, yacht club, sales agency or similar
organisation) and who while so navigating, or in charge of the Vessel shall in
consequence of any occurrence covered by this Clause 11 become liable to pay
and shall pay any sum or sums to any person or persons, other than to the
Assured named in this insurance, but indemnity under this Clause shall insure
to the benefit of the Assured and only to a person navigating or in charge of
the Vessel as described above. at the written request of and through the agency
of the Assured. Nothing in this extension shall increase the Underwriters' liability
beyond the limitation of liability imposed by Clause 11.8 below and this
extension shall be subject to all other terms conditions and warranties of this
insurance. Nothing in this Clause 11.4 shall be deemed to override the
provisions of Clause 3.2 above.
REMOVAL OF WRECK EXTENSION
This insurance also to pay the expenses, after deduction of the proceeds
of the salvage, of the removal of the wreck of the insured Vessel from any
place owned, leased or occupied by the Assured.
LIABILITIES SECTION EXCLUSIONS
Notwithstanding the provisions of this Clause 11 this
insurance does not cover any liability cost or expense arising in respect of :
any direct or indirect payment by the Assured
under workmen's compensation or employers' liability acts and any other
statutory or common law liability in respect of accidents to or illness of
workmen or any other persons employed in any capacity whatsoever by the Assured
or by any person to whom the protection of this insurance is afforded by reason
of the provisions of Clause 11.4 above, in on or about or in connection with
the Vessel hereby insured or her cargo, materials or repairs.
any boat belonging to the Vessel and having a
maximum designed speed exceeding 17 knots, unless such boat is specially
covered herein and subject also to the conditions of the Speedboat Clause 19
below, or is on the parent Vessel of laid up ashore .
any liability to or incurred by any person engaged
in water skiing or aquaplaning, while being towed by the Vessel or preparing to
be towed or after being towed until safely on board or ashore
any liability to or incurred by any person engaged
in a sport or activity, other than water skiing or aquaplaning, while being
towed by the Vessel or preparing to be towed or after being towed until safely
on board or ashore .
punitive or exemplary damages, however described.
Should Clause 11.6.3 and/or Clause 11.6.4 above be deleted, the
liabilities mentioned in such clause(s) shall be covered hereunder, subject
always to the warranties, conditions and limits of this insurance.
LIMIT OF LIABILITY
The liability of the Underwriters under this Clause 11, in respect of
anyone accident or series of accidents arising out of the same event, shall in
no case exceed the sum stated for this purpose in the Schedule to the policy,
but when the liability of the Assured has been contested with the consent in
writing of the Underwriters, the Underwriters will also pay a like proportion
of the costs which the Assured shall thereby incur or be compelled to pay.
EXCESS AND DEDUCTIBLE
No claim arising from a peril insured against shall be
payable under this insurance unless the aggregate of all such claims arising
out of each separate accident or occurrence (including claims under Clauses 11,
14 and 15) exceeds the amount stated for this purpose in the Schedule to the
policy, in which case this sum shall be deducted. This Clause 12.1 shall not
apply to a claim for total or constructive total loss of the Vessel or, in the
event of such a claim, to any associated claim under Clause 15 arising from the
same accident or occurrence.
Prior to the application of Clause 12.1 above and in
addition thereto, deductions new for old not exceeding one-third may be made at
the Underwriters' discretion in respect of loss of or damage to:
protective covers, sails and running rigging
outboard motors whether or not insured by separate valuation
under this insurance.
NOTICE OF CLAIM AND TENDERS
Prompt notice shall be given to the Underwriters in the
event of any occurrence which may give rise to a claim under this insurance,
and any theft or malicious damage shall also be reported promptly to the
Where loss or damage has occurred, notice shall be given to
the Underwriters prior to survey, so that a surveyor may be appointed to
represent the Underwriters should they so desire.
The Underwriters shall be entitled to decide the port to
which the Vessel shall proceed for docking or repair (the actual additional
expense of the voyage arising from compliance with Underwriters' requirements
being refunded to the Assured) and shall have a right of veto concerning a
place of repair or a repairing firm.
The Underwriters may also take tenders or may require
tenders to be taken for the repair of the Vessel.
to any express provision in this insurance, salvage charges incurred in
preventing a loss by perils insured against may be recovered as a loss by those
DUTY OF ASSURED
In case of any loss or misfortune it is the duty of the Assured
and their servants and agents to take such measures as may be reasonable for
the purpose of averting or minimising a loss which would be recoverable under
Subject to the provisions below and to Clause 12 the
Underwriters will contribute to charges properly and reasonably incurred by the
Assured their servants or agents for such measures. General average, salvage
charges, collision defence or attack costs and costs incurred by the Assured in
contesting liability covered by Clause 11.2 are not recoverable under this
The Assured shall render to the Underwriters all possible
aid in obtaining information and evidence should the Underwriters desire to
take proceedings at their own expense and for their own benefit in the name of
the Assured to recover compensation or 10 secure an indemnity from any third
party in respect of anything covered by this insurance.
Measures taken by the Assured or the Underwriters with the
object of saving, protecting or recovering the subject-matter insured shall not
be considered as a waiver or acceptance of abandonment or otherwise prejudice
the rights of either party.
The sum recoverable under this Clause 15 shall be in
addition to the loss otherwise recoverable under this insurance but in no
circumstances shall amounts recoverable under Clause 15.2 exceed the sum
insured under this insurance in respect of the Vessel.
The measure of indemnity in respect of claims for unrepaired
damage shall be the reasonable depreciation in the market value or the Vessel
at the time this insurance terminates arising from such unrepaired damage, but
not exceeding the reasonable cost of repairs.
In no case shall the Underwriters be liable for unrepaired
damage in the event of a subsequent total loss (whether or not covered under
this insurance) sustained during the period covered by this insurance or any
The Underwriters shall not be liable in respect of
unrepaired damage for more than the insured value at the time this insurance
CONSTRUCTIVE TOTAL LOSS
In ascertaining whether the Vessel is a constructive total
loss, the insured value shall be taken as the repaired value and nothing in
respect of the damaged or break-up value of the Vessel or wreck shall be taken
No claim for constructive total loss based upon the cost of
recovery and/or repair of the Vessel shall be recoverable hereunder unless such
cost would exceed the insured value. In making this determination, only the
cost relating to a single accident or sequence of damages arising from the same
accident shall be taken into account.
Warranted that no amount shall be insured policy proof of interest of
full interest admitted for account of the Assured, Mortgagees or Owners on
disbursements, commission, profits or other interests or excess or increased
value of hull or machinery however described unless the insured value of the
Vessel is over $ 50,000 and then not to exceed 10 per cent of the total amount
insured in respect of the Vessel as stated in the Schedule to the policy.
Provided always that a breach of this warranty shall not afford the
Underwriters any defence to a claim by a Mortgagee who has accepted this
insurance without knowledge of such breach.
WHERE THIS CLAUSE 19 APPLIES IT SHALL OVERRIDE ANY CONFLICTING
PROVISIONS IN THE CLAUSES ABOVE.
It is a condition of this insurance that when the
Vessel concerned is under way the Assured named in the Schedule to the policy
or other competent person(s) shall be on board and in control of the Vessel
No claim shall be allowed in respect of loss of or
damage to the Vessel or liability to any third party or any salvage services
caused by or arising from the Vessel being
stranded sunk swamped immersed or breaking adrift, while left moored or
anchored unattended off an exposed beach or shore
arising while the Vessel is participating in
racing or speed tests, or any trials in connection therewith.
No claim shall be allowed in respect of rudder
strut shaft or propeller
under Clauses 18.104.22.168 and 22.214.171.124
for any loss of damage caused by heavy weather,
water or contact other than with another vessel, pier or jetty, but this Clause
19.3.2 shall not exclude damage caused by the Vessel being immersed as a result
of heavy weather.
If the Vessel is fitted with inboard machinery no
liability shall attach to this insurance in respect of any claim caused by or
arising through fire or explosion unless the Vessel is equipped in the engine
room (or engine space) tank space and galley, with a fire extinguishing system
automatically operated or having controls at the steering position and properly
installed and maintained in efficient working order.
CANCELLATION AND RETURN OF PREMIUM
insurance may be cancelled by the Underwriters at any time subject to 30 days
notice to the Assured or by mutual agreement, when a pro rata daily net return
of premium shall be made calculated on the premium charged for the in
commission and/or laid up period.
FOLLOWING CLAUSES SHALL BE PARAMOUNT AND SHALL OVERRIDE ANYTHING
CONTAINED IN THIS INSURANCE INCONSISTENT THEREWITH.
In no case shall this insurance cover loss damage liability or
expense caused by
war civil war revolution rebellion insurrection,
or civil strife arising therefrom, or any hostile act by or against a
capture seizure arrest restraint or detainment
(barratry and piracy excepted), and the consequences thereof or any attempt
derelict mines torpedoes bombs or other derelict
weapons of war.
STRIKES AND POLITICAL ACTS EXCLUSIONS
In no case shall this insurance cover loss damage liability or
expense caused by
strikers, locked-out workmen, or persons taking
part in labour disturbances, riots or civil commotions
any terrorist or any person acting from a
In no case shall this insurance cover loss damage liability or
expense arising from
any weapon of war employing atomic or nuclear
fission and/or fusion or other like reaction or radioactive force or matter
ionising radiations frorTI.or contamination by
radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel
the radioactive, toxic, explosive or other
hazardous properties of any explosive nuclear assembly or nuclear component