1/11/95

1. NAVIGATION

INSTITUTE TIME CLAUSES - HULLS

This insurance is subject to English law and practice

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1.1 The Vessel is covered subject to the provisions of this insurance at all times and has 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 it is warranted that the Vessel shall not be towed, except as is

customary or to the first safe port or place when in need of assistance, or undertake towage or salvage services under a contract

previously arranged by the Assured and/or Owners and/or Managers and/or Charterers. This Clause 1.1 shall not exclude customary

towage in connection with loading and discharging.

1.2 This insurance shall not be prejudiced by reason of the Assured entering into any contract with pilots or for customary towage which

limits or exempts the liability of the pilots and/or tugs and/or towboats and/or their owners when the Assured or their agents accept or

are compelled to accept such contracts in accordance with established local law or practice.

1.3 The practice of engaging helicopters for the transportation of personnel, supplies and equipment to and/or from the Vessel shall not

prejudice this insurance.

1.4 In the event of the Vessel being employed in trading operations which entail cargo loading or discharging at sea from or into another

vessel (not being a harbour or inshore craft) no claim shall be recoverable under this insurance for loss of or damage to the Vessel or

liability to any other vessel arising from such loading or discharging operations, including whilst approaching, lying alongside and

leaving, unless previous notice that the Vessel is to be employed in such operations has been given to the Underwriters and any

amended terms of cover and any additional premium required by them have been agreed.

1.5 In the event of the Vessel sailing (with or without cargo) with an intention of being (a) broken up, or (b) sold for breaking up, any

claim for loss of or damage to the Vessel occurring subsequent to such sailing shall be limited to the market value of the Vessel as

scrap at the time when the loss or damage is sustained, unless previous notice has been given to the Underwriters and any