INSTITUTE TIME CLAUSES - HULLS

DISBURSEMENTS AND INCREASED VALUE

(Total Loss only, including Excess Liabilities)

This insurance is subject to English law and practice

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NAVIGATION

1.1 The subject-matter insured is covered subject to the provisions of this insurance at all times and the

vessel 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 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 in respect of loss of or damage to the subject-matter insured or

for 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.

1.3 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, no claim shall be recoverable under this insurance in respect of loss or

damage to the vessel occurring subsequent to such sailing unless previous notice has been given to

the Underwriters and any amendments to the terms of cover, amount insured and premium