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and next succeeding cargo passage (such insurance to include, if required, a preliminary and an intermediate ballast passage) plus the charges of insurance. In the case of a voyage charter where payment is made on a time basis, the sum permitted for insurance shall be calculated on the estimated duration of the voyage, subject to the limitation of two cargo passages as laid down herein. Any surn insured under this section shall be reduced as the freight or hire is earned by the gross amount so earned.

(c) Anticipated freight if the vessel sails in ballast and not under charter. A sum not exceeding the anticipated gross freight on next cargo passage, such sum to be reasonably estimated on the basis of the current rate of freight at time of insurance, plus the charges of insurance. Provided, however, That no insurance shall be permitted under this section 1 any insurance is affected under section (b).

(d) Time charter hire or charter hire for series of voyages. A sum not exceeding 50 percent of the gross hire which is to be earned under the charter in a period not exceeding 18 months. Any sum insured under this section shall be reduced as the hire is earned under the charter by 50 percent of the gross amount so earned but where the charter is for a period exceeding 18 months the sum insured need not be reduced while it does not exceed 50 percent of the gross hire still to be earned under the charter. An insurance under this section may begin on the signing of the charter.

(e) Premiums. A sum not exceeding the actual premiums of all interests insured for a period not exceeding 12 months (excluding premiums insured under the foregoing sections but including, 1 required, the premium or estimated calls on any Protection and Indemnity or War, etc., Risk Insurance) reducing pro rata monthly.

(1) Returns of premium. A sum not exceeding the actual returns which are recoverable subject to "and arrival" under any policy of insurance.

(8) Insurance irrespective of_amount. Against risks excluded by the F.C. & S. Clause, and risks enumerated in the American Institute War and Strikes Clauses and General Average and Salvage Disbursements.

Warranted that no Insurance on any interests enumerated in the foregoing sections (a) to (f), inclusive, in excess of the amounts permitted therein and no insurance subject to P.P.I., F.I.A. or other like term, on any interests whatever excepting those enumerated in section (a), is or shall be effected to operate during the currency of this Policy by or for account of the Assured, Owners, Managers or Mortgagees. Provided always that a breach of this warranty shall not afford the Underwriter any defense to a claim by a Mortgagee who has accepted this Policy without knowledge of such breach.

Beginning the adventure upon the said Vessel, as above, and so shall continue and

endure during the period aforesaid, as employment may offer, in port and at sea, in docks and graving docks and on ways, gridIrons and pontoons, at all times, in all places and on all occasions, services and trades whatsoever and wheresoever, under steam, motor power or sail; with leave to sail or navigate with or without pilots, to go on trial trips and to assist and tow vessels or craft in distress, but 11 without the approval of the Underwriter the Vessel be towed, except as is customary or when in need of assistance, or undertakes towage or salvage services under a pre-arranged contract made by Owners and/or Charterers, the Assured shall notify the Underwriter immediately and pay an additional premium if required but no such premium shall be required for customary towage by the Vessel in connection with loading and discharging. With liberty to discharge, exchange and take on board goods, specie, passengers and stores, wherever the Vessel may call at or proceed to, and with liberty to carry goods, live cattle, etc., on deck or otherwise.

Touching the Adventures and Perils which the said Underwriter is contented to bear and take upon itself, they are of the Seas, Men-of-War, Fire, Lightning, Earthquake, Enemies, Pirates, Rovers, Assailing Thieves, Jettisons, Letters of Mart and Counter-Mart, Surprisals, Takings at Sea, Arrests, Restraints and Detainments of all Kings, Princes and Peoples, of what nation, condition or quality soever, Barratry of the Master and Mariners and of all other like Perils, Losses and Misfortunes that have or shall come to the Hurt, Detriment or Damage of the said Vessel, &c, or any part thereof; excepting, however, such of the foregoing Perils as may be excluded by provisions elsewhere in the Policy or by endorsement. And in case of any Loss or Misfortune, it shall be lawful and necessary for the Assured, their Factors, Servants and Assigns, to sue, labor and travel for, in and about the Defense, Safeguard and Recovery of the said Vessel, &c, or any part thereof, without prejudice to this Insurance, to the Charges whereof the Underwriter will contribute its proportion as provided below. And it is expressly declared and agreed that no acts of the Underwriter or Assured in recovering, saving or preserv. ing the property insured shall be considered as a walver or acceptance of abandonment.

This Insurance also specially to cover (subJect to the Average Warranty) loss of or damage to the subject matter insured directly caused by the following:

Accidents in loading, discharging or handling cargo, or in bunkering;

Accidents in going on or off, or while on drydocks, graving docks, ways, gridirons or pontoons;

Explosions on shipboard or elsewhere;

Breakdown of motor generators or other electrical machinery and electrical connections thereto, bursting of boilers, breakage of shafts, or any latent defect in the machinery or hull (excluding the cost and expense of replacing or repairing the defective part);

Breakdown of or accidents to nuclear installations or reactors not on board the insured Vessel;

Contact with aircraft, rockets or similar missiles, or with any land conveyance;

Negligence of Charterers and/or Repairers, provided such Charterers and/or Repairers are not Assured(s) hereunder;

Negligence of Master, Mariners, Engineers or Pilots; provided such loss or damage has not resulted from want of due diligence by the Assured, the Owners or Managers of the Vessel, or any of them. Masters, Mates, Engineers, Pilots or Crew not to be considered 2$ part owners within the meaning of this clause should they hold shares in the Vessel.

In the event of accident whereby loss or damage may result in a claim under this Policy, notice shall be given in writing to the Underwriter, where practicable, prior to survey, so that it may appoint its own surveyor 11 it so desires. The Underwriter shall be entitled to decide the port to which a damaged Vessel shall proceed for docking or repairing (the actual additional expense of the voyage arising from compliance with the Underwriter's requirements being refunded to the Assured) and the Underwriter shall also have a right of veto in connection with the place of repair or repairing firm proposed and whenever the extent of the damage is ascertainable the Underwriter may take or may require to be taken tenders for the repair of such damage. In the event of fallure to comply with the conditions of this clause 15 percent shall be deducted from the amount of the ascertained claim,

In cases where a tender is accepted with the approval of the Underwriter, an allowance shall be made at the rate of 30 percent per annum on the insured value for each day or pro rata for part of a day from the time of the completion of the survey until the acceptance of the tender provided that it be accepted without delay after receipt of the Underwriter's approval.

No allowance shall be made for any time during which the Vessel is loading or discharging cargo or bunkering.

Due credit shall be given against the allowance as above for any amount recovered:

(a) In respect of fuel and stores and wages and maintenance of the Master, Officers and Crew or any member thereof allowed in General or Particular Average;

(b) From third parties in respect of damages for detention and/or loss of profit and/ or running expenses; for the period covered by the tender allowance or any part thereof.

Notwithstanding anything herein tained to the contrary, this policy is warranted free from Particular Average under 3 percent, or unless amounting to $4,850, but nevertheless when the Vessel shall have been stranded, sunk, on fire, or in collision with

any other ship or Vessel, the Underwriter shall pay the damage occasioned thereby, and the expense of sighting the bottom after stranding shall be paid, 11 reasonably incurred, even if no damage be found.

Grounding in the Panama Canal, Suez Ca. nal or in the Manchester Ship Canal or its connections, or in the River Mersey above Rock Ferry Slip, or in the River Plate (above 8 line drawn from the North Basin, Buenos Aires, to the mouth of the San Pedro River) or its tributaries, or in the Danube or Demer. ara Rivers or on the Yenikale Bar, shall not be deemed to be a stranding.

Average payable on each valuation separately or on the whole, without deduction of thirds, new for old, whether the Average be Particular or General.

No claim shall in any case be allowed in respect of scraping or painting the Vessel's bottom.

The warranty and conditions as to Average under 3 percent or unless amounting to $4,850 to be applicable to each voyage as 11 separately insured, and a voyage shall commence at the Assured's election when the Vessel either begins to load cargo or sails in ballast to a loading port. Such voyage shall continue until the Vessel has made not more than three passages or not more than two passages with cargo (whichever first occurs) and extend further until the Vessel thereafter begins to load cargo or sails (whichever first occurs), but such extension shall not exceed 30 days in port. A passage shall be deemed to be from the commencement of loading at the first port or place of loading until completion of discharge at the last port or place of discharge, or, 11 the Vessel sails in ballast, from the port or place of departure until arrival at the irst port or place thereafter other than a port or place of refuge or & port or place for bunkering only. Each period in port of 30 days in excess of 30 days between passages shall itself constitute a passage for the purposes of this clause. When the Vessel sails in ballast to effect damage repairs such salling or passage shall be considered part of the previous passage. In calculating whether the 3 percent or $4,850 is reached, Particular Average occurring outside the period covered by this Policy may be added to Particular Average occurring within such period, providing it occur on the same voyage as above defined, but only that portion of the claim arising within the period covered by this Policy shall be recoverable hereon. A voyage shall not be so fixed that it overlaps another voyage on which a claim is made on this or the preceding or succeeding Policy. Particular Average which would be excluded by the terms of this Policy shall not be included in determining whether the 3 percent or $4,850 is reached.

No recovery for a Constructive Total Loss shall be had hereunder unless the expense of recovering and repairing the Vessel shall esceed the insured value.

In ascertaining whether the Vessel 18 8 Constructive Total Loss the insured value


shall be taken as the repaired value, and nothing in respect of the damaged or breakup value of the Vessel or wreck shall be taken into account.

In the event of Total or Constructive Total Loss, no claim to be made by the Underwriter for freight, whether notice of aban. donment has been given or not.

In no case shall the Underwriter be liable for unrepaired damage in addition to a subsequent Total Loss sustained during the period covered by this Policy.

General Average, Salvage, and Special Charges payable as provided in the contract of affreightment, or falling such provision, or there be no contract of affreightment, payable in accordance with the Laws and Osages of the Port of New York. Provided always that when an adjustment according to the laws and usages of the port of destination is properly demanded by the owners of the cargo, General Average shall be paid in accordance with same.

And it is further agreed that in the event of salvage, towage or other assistance being rendered to the Vessel hereby insured by any Vessel belonging in part or in whole to the same Owners or Charterers, the value of such services (without regard to the common ownership or control of the Vessels) shall be ascertained by arbitration in the manner below provided for under the Collision Clause, and the amount so awarded so far as applicable to the interest hereby insured shall constitute a charge under this Policy.

When the contributory value of the Vessel is greater than the valuation herein the liability of the Underwriter for General Average contribution (except in respect to amount made good to the Vessel) or Salvage shall not exceed that proportion of the total contribution due from the Vessel that the amount insured hereunder bears to the contributory value; and if because of damage for which the Underwriter is liable as Particular Average the value of the Vessel has been reduced for the purpose of contribution, the amount of the Particular Average claim under this Policy shall be deducted from the amount insured hereunder and the Underwriter shall be liable only for the proportion which such net amount bears to the contributory value.

In the event of expenditure under the Sue and Labor Clause, this Policy shall pay the proportion of such expenses that the amount insured hereunder bears to the insured value of the Vessel, or that the amount insured hereunder, less loss and/or damage payable under this Policy, bears to the actual value of the salved property; whichever proportion shall be less.

If claim for total loss is admitted under this Policy and sue and labor expenses have been reasonably incurred in excess of any proceeds realized or value recovered, the amount payable under this Policy will be the proportion of such excess that the amount insured hereunder (without deduc

tion for loss or damage) bears to the insured value or the sound value of the Vessel at the time of the accident, whichever value was greater.

And it is further agreed that if the Vessel hereby insured shall come into collision with any other Ship or Vessel and the Assured or the Charterers or the Surety in consequence of the insured Vessel being at fault shall become liable to pay and shall pay by way of damages to any other person or persons any sum or sums in respect of such collision the Underwriter will pay the Assured, or the Charterers, or the Surety, whichever shall have paid, such proportion of such sum or sums so paid as its subscription hereto bears to the value of the Vessel hereby insured, provided always that its liabillty in respect to any one such collision shall not exceed its proportionate part of the value of the Vessel hereby insured. And in cases where the liability of the Vessel has been contested, or proceedings have been taken to limit liability, with the consent in writing of the Underwriter, it will also pay a like proportion of the costs which the Assured or Charterers shall thereby incur, or be compelled to pay; but when both Vessels are to blame, then, unless the liability of the Owners or Charterers of one or both such Vessels becomes limited by law, claims under the Collision Clause shall be settled on the principle of Cross-Liabilities as if the Owners or Charterers of each Vessel had been compelled to pay to the Owners or Charterers of the other of such Vessels such onehalf or

other proportion of the latter's damages as may have been properly allowed in ascertaining the balance or sum payable by or to the Assured or Charterers in consequence of such collision; and it is further agreed that the principles involved in this clause shall apply to the case where both Vessels are the property, in part or in whole, of the same Owners or Charterers, all questions of responsibility and amount of liability as between the two Vessels being left to the decision of a single Arbitrator, if the parties can agree upon a single Arbitrator, or failing such agreement, to the decision of Arbitrators, one to be appointed by the Managing Owners or Charterers of both Vessels, and one to be appointed by the Underwriter; the two Arbitrators chosen to choose & third Arbitrator before entering upon the reference, and the decision of such single, or of any two of such three Arbitrators, appointed as above, to be final and binding. Provided always that this clause shall in no case extend to any sum which the Assured, or the Charterers, or the Surety, may become liable to pay or shall pay for removal of obstructions under statutory powers, for injury to harbors, wharves, piers, stages, structures, or any other objects (excepting other Vessels and property thereon), consequent on such collision, or in respect of the cargo, baggage or engagements of the Insured Vessel, or for loss of life, or personal injury. And provided also that in the event of any


claim under this clause being made by any. ciously, but this paragraph shall not be conone other than the Owners of the Vessel strued to include or cover any loss, damage hereby insured, he shall not be entitled to or expense caused by or resulting from delay, recover in respect of any liability to which detention or loss of use. This insurance is the Owners of the Vessel as such would not subject, however, to the following be subject, nor to a greater extent than the rauties, exclusions and other provisions: Owners would be entitled in such event to Warranted free from any claim for loss, recover.

damage or expense covered under any comIn witness whereof, the Maritime Admin- mercial policy in effect for the benefit of the Istrator, acting for the Secretary of Com- assured merce, has signed this Policy but it shall not Warranted free from any claim for loss, be valid unless countersigned by an au- damage or expense which is or could be thorized underwriting agent.

covered by a commercial war risk policy conUNITED STATES OF AMERICA,

taining the American Institute War Risk and By Maritime Administrator,

Strikes and Automatic Termination and

Cancellation clauses acting for the Secretary

(Time)-Hulls(March 7, 1961). of Commerce.

Warranted free from any claim for delay (Maritime Administrator)

or demurrage and warranted not to abandon

in case of capture, seizure or detention, until The Underwriting Agent does not, by after condemnation of the property Insured. countersigning this Policy or in any other Warranted free from any claim based upon manner, warrant its own authority, or the loss of or frustration of the Insured voyage or authority of the Maritime Administrator, adventure caused by arrests, restraints or acting for the Secretary of Commerce, to detainments, of kings, princes, or peoples. issue this instrument, but acts solely under Warranted free from any claim arising the power conveyed to the Underwriting

from capture, seizure, arrest, restraint, deAgent by the Agreement made with the

tainment, preemption, confiscation or requiMaritime Administrator, acting for the Sec- sition by the Government of the United retary of Commerce.

States or of the country in which the Vessel Countersigned at


is owned or registered or of the country in day of 19...

which any such right of requisition is vested.

The Franchise warranty in the attached (Authorized underwriting Policy is waived and average will be payable agent)

Irrespective of percentage and without deBy

duction of new for old. The provisions of Form MA-240-A (Revised 5-81)

the attached Policy with respect to con

structive total loss shall apply only to claims UNITED STATES OF AMERICA

arising from physical damage to the insured


If at the natural expiry time of this InsurEndorsement attached to and made part ance the vessel is at sea, this insurance will of Policy No.

It is agreed that this be extended, provided notice be given to the Insurance covers only:

Underwriter as soon as practicable and an 1. Those risks which would be covered by additional premium paid, 11 required, until thi attached Policy (including the Collision midnight, G.m.t. of the day on which the Clause) in the absence of the F. C. and S. vessel enters the next port to which she warranty and which shall be deemed to in- proceeds and for 24 hours thereafter. clude, specifically, the risks of hostilities or The "Breach of Warranty" clause in the warlike operations, piracy, civil war, revolu- Policy is deleted. tion, rebellion or insurrection or civil strife Warranted no War Risk Insurance in exarising therefrom, floating and/or station- cess of the amount insured herein, whether ary mines and/or torpedoes whether derelict for hull, machinery, disbursements, or other or not, weapons of war employing atomic or similar interests however described, exists or nuclear fission and/or fusion or other like will be placed during the currency of this inreaction or radioactive force or matter, and surance, except as authorized by the Martthe application of sanctions under interna- time Administrator, acting for the Secretary tional agreements, whether before or after of Commerce. declaration of war and whether by a bellig- Warranted no cancellation except by muerent or otherwise, but excluding arrest, tual consent; Provided, however, That if the restraint or detainment under customs or Vessel shall be requisitioned by the United quarantine regulations and similar arrests, States on a basis whereby the United States restraints or detainments not arising from provides the war risk Insurance, then this inactual or impending hostilities or sanctions. surance shall terminate and pro rata dally

2. Damage to or destruction of the prop- return premium shall be paid. In no other erty insured directly caused by strikers, event shall there be any return of premium locked out workmen, or persons taking part For the purpose of determining liability in labor disturbances or riots or civil com- under this policy for General Average conmotions or caused by persons acting mall. tribution or Salvage and sue and labor ex

penses only, the sum insured herein or as stated in any binder of which this policy is a part, shall be deemed to be the "insured value."

Subpart C-War Risk Protection and

Indemnity Insurance $ 308.200 Amount of insurance for

which application may be made. An applicant for war risk protection and indemnity insurance shall state the amount of insurance desired but such amount shall not exceed $750.00 per gross ton of the vessel. (G.O. 75, 2d Rev., 26 F.R. 4541, May 26, 1961, as amended by Amdt. 1, 27 F.R. 4028, Apr. 27, 1962) $ 308.201 Form of application.

Application submitted shall be in strict accordance with the following form: Form MA-185 (Revised 5-61)




Application is made for War Risk Protection and Indemnity Insurance pursuant to Title XII of Merchant Marine Act, 1936, as amended, and in accordance with all provisions of law and subject to all limitations thereof: Assured(s) Address(es) Owner Address Mortgagee, if any, Address Loss, if any, payable to

----- or order. On (Vessel's name)

(Official No.)

To terminate thirty (30) days after the outbreak of war (whether there be a declaration of war or not) between any of the aforesaid countries.

Terms and conditions: Subject to form of policy prescribed by the Maritime Administrator, acting for the Secretary of Commerce.

The category (one only) of eligibility under which application is made must be designated. o (a)

A vessel registered, enrolled or licensed under the laws of the United States; any tug or barge or other watercraft (documented under the laws of the United States, or undocumented) owned by a citizen of the United States, used in essential water transportation within the territorial waters of the United States; and United States citizenowned watercraft in the fishing trade or industry, except when used exclusively in or for sport fishing.

(b) (1) A foreign-ilag vessel under Panamanian, Honduran or Liberian registry, 1,500 gross tons and over, self-propelled, and not over twenty years of age (unless authorized by the Maritime Administration), which is subject to an unqualified Contract of Commit. ment with the United States in form as required by the Maritime Administration, and which is owned by a U.S. corporation, or a foreign corporation in which a majority of the stock is owned and controlled by United States citizens, whether direct or through intervening corporations, foreign or domestic. Where such intervening corporations are foreign, the ultimate majority ownership and control of the stock of such corporations must be vested in a citizen or citizens of the United States as defined in section 1201(d), Merchant Marine Act, 1936, as amended. 0 (b) (2)

A foreign-flag vessel under Panamanian, Honduran or Liberian registry, 1,500 gross tons and over, self-propelled, and not over twenty years of age (unless authorized by the Maritime Administration), which is subject to an unqualified Contract of Commitment with the United States in form as required by the Maritime Administration, and which is owned by a foreign corporation which is not directly or beneficially owned by United States citizens or corporations, but which vessel is under a long-term charter or other long-term contract covering the use of the vessel on terms deemed by the Maritime Administration to subject the vessel to U.S. control in the event of emergency. The charterer of such a vessel must be either a U.S. corporation or a foreign corporation in which a majority of the stock is owned and controlled by U.S. citizens, whether direct or through intervening corporations, foreign or domestic. Where such intervening corporations are foreign, the ultimate majority ownership and control of the stock of such

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(Date built) Sum to be insured $. --- but not exceeding $750.00 per gross ton of the vessel.

To attach automatically upon and simul. taneously with the outbreak of war (whether there be a declaration of war or not) between any of the following countries: United States of America, United Kingdom, France, the Union of Soviet Socialist Republics, the People's Republic of China; upon the occurrence of any prior hostile act or acts by any of the said countries resulting in such outbreak of war and occurring within a period of 90 days preceding such outbreak of war.

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