Class 6 Freight, Demurrage & Defence Rules 2024/2025 Page 1 of 41 CONTENTS Page Section I Introductory 8 RULE 1 ARTICLES OF ASSOCIATION 8 RULE 2 DEFINITIONS 8 2.1 The Association 8 2.2 Associated Company 8 2.3 The Board 8 2.4 Call Rate 8 2.5 Calls 8 2.6 Certificate of Entry 8 2.7 This Class 8 2.8 Closed Policy Year 8 2.9 The Committee 8 2.10 Contribution 8 2.11 Costs 8 2.12 Entered Ship 9 2.13 Entered Tonnage 9 2.14 Fleet Entry 9 2.15 Full Tonnage 9 2.16 Hull Policies 9 2.17 Insurance 9 2.18 The Managers 9 2.19 Member 9 2.20 Passenger 9 2.21 Policy Year 9 2.22 The Register 9 2.23 Representative 9 2.24 Rules 9 2.25 Sanction 9 2.26 Seafarer 9 2.27 Senior Member 9 2.28 Ship 10 2.29 The United Kingdom 10 2.30 Interpretation 10 RULE 3 NATURE OF COVER 10 3.1 Extent of Cover 10 3.2 Period of Entry 10 3.3 Conditions 11 3.4 Contributions 11 3.5 Sanctions 11 3.6 Insurance Act 2015 11 Class 6 Freight, Demurrage & Defence Rules 2024/2025 Page 2 of 41 CONTENTS Page RULE 4 MEMBERSHIP 12 4.1 Entry of a Ship 12 4.2 Directors 12 4.3 Reinsured Member 12 4.4 Cessation of Membership 12 4.5 Separate Class 12 RULE 5 RIGHT OF RECOVERY 12 5.1 Right of Recovery 12 5.2 Subrogation 12 5.3 Set-off 12 5.4 Currency 12 5.5 Limit 12 5.6 Sanctions 13 Section II Entry and Contribution 14 RULE 6 ENTRY 14 6.1 Application 14 6.2 Fair presentation 14 6.3 Certificate of Entry 14 6.4 Entered Tonnage 14 6.5 Subject to Rules 14 6.6 Variation of Cover 15 6.7 Contract of Insurance 15 6.8 Refusal of Application 15 RULE 7 SPECIAL INSURANCES 15 7.1 Fixed Premium 15 7.2 Special Acceptance 15 7.3 Reinsurance and Recovery 15 RULE 8 JOINT ENTRIES 15 8.1 Joint Members 15 8.2 Disclosure 16 8.3 Conduct 16 8.4 Extent of cover 16 8.5 Limits of cover 16 8.6 Communications 16 8.7 Provisos 16 RULE 9 PERIOD OF INSURANCE 16 9.1 Attachment and Contribution 16 9.2 Change of Conditions 16 9.3 Notice of Termination of Cover by Board or Managers 17 9.4 Prohibition of Withdrawal 17 Class 6 Freight, Demurrage & Defence Rules 2024/2025 Page 3 of 41 CONTENTS Page RULE 10 CONTRIBUTION BY WAY OF CALLS 17 10.1 Mutual Insurance 17 10.2 Estimated Total Call 17 RULE 11 CALLS 18 11.1 Call Rate 18 11.2 Discount 18 11.3 Exceptional Calls 18 RULE 12 PAYMENT 18 12.1 Instalments 18 12.2 Notification 18 12.3 Currencies 18 12.4 Tax 18 12.5 Set-off 18 12.6 Penalty for Late Payment 18 12.7 Bad Debts 19 12.8 Effect of a Member’s Non-Payment 19 RULE 13 RELEASE 19 13.1 Request by Member for Release 19 13.2 No Request by Member for Release 19 13.3 Scope of Release 19 13.4 Effect of Payment of Release Call 19 13.5 Effect of Release 19 RULE 14 RECOVERY OF CONTRIBUTIONS 19 14.1 Recovery 19 RULE 15 FLEET ENTRY 19 15.1 Effect of Fleet Entry 19 RULE 16 ASSOCIATED COMPANIES 20 16.1 Extension of Cover to Associated Companies 20 16.2 Conditions of Reimbursement 20 16.3 Receipt of Reimbursement 20 Section III Risks Covered 21 RULE 17 RISKS COVERED 21 17.1 Costs of Legal or Other Proceedings 21 17.2 Costs of Claims, Disputes, Legal or Other Proceedings 21 17.3 Costs incurred by the Member 21 RULE 18 EXTENT OF COVER 21 18.1 Freight, Hire and Demurrage 21 18.2 Detention and Delay 21 18.3 Loss and Damage 21 18.4 General Average 21 Class 6 Freight, Demurrage & Defence Rules 2024/2025 Page 4 of 41 CONTENTS Page 18.5 Carriage of Goods 21 18.6 Supplies 21 18.7 Repairs 21 18.8 Stevedores 21 18.9 Insurers and Brokers 21 18.10 Salvage and Towage 22 18.11 Passengers 22 18.12 Seafarers and Others 22 18.13 Buying and Selling 22 18.14 Port and Custo