34 I Rules 2021 I www.shipownersclub.com
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14 Cargo liabilities
The liabilities and expenses set out in paragraphs A to D below when and to the
extentthat they relate to cargo intended to be or being or having been carried
intheinsured vessel.
A Loss, shortage, damage or other responsibility
Liability for loss, shortage, damage or other responsibility arising out of any breach
bythe Member or by any person for whose acts, neglect or default he may be legally
liable, of his obligation properly to load, handle, stow, carry, keep, care for, discharge
ordeliver the cargo or out of unseaworthiness or untness of the insured vessel.
B Disposing of damaged cargo
The additional costs and expenses, over and above those which would have been
incurred by him in any event under the contract of carriage, incurred by the Member
in discharging or disposing of damaged or worthless cargo, but only if and to the
extent that the Member is unable to recover those costs from any other party.
C Failure of consignee to remove cargo
The liabilities and additional costs incurred by a Member, over and above the costs
which would have been incurred by him if the cargo had been collected or removed,
solely by reason of the total failure of a consignee to collect or remove cargo at the
port of discharge or place of delivery, but only if and to the extent that such liabilities
or costs exceed the proceeds of sale of the cargo and the Member has no recourse
torecover those liabilities or costs from any other party.
D Through or transhipment bills of lading
Liability for loss, shortage, damage or other responsibility in respect of cargo carried
byameans of transport other than the insured vessel, when the liability arises under a
through or transhipment bill of lading, or other form of contract approved by the Managers
in writing, which provides for carriage partly to be performed by the insured vessel.
E Provisos
i Hague and Hague-Visby Rules
Unless the Member has previously obtained appropriate special cover
byagreement with the Managers or the Board in its discretion otherwise
determines, there shall be no recovery from the Association in respect of
liabilities which would not have been incurred or sums which would not have
been payable by the Member if the cargo had been carried on terms no less
favourable to the Member than those laid down in the Hague or Hague-Visby
Rules, save where the contract of carriage is on terms less favourable to the
Member than those laid down in the Hague or Hague-Visby Rules solely
because of the relevant terms of carriage being of mandatory application.
ii Regulations as to terms and methods of carriage
The Board shall have power from time to time to make Regulations prescribing
the use of any particular clause or form of contract, either generally or in any
particular trade or in relation to the system and method of carriage, storage,
transport, custody and handling of cargo intended to be, being or having been
carried in an insured vessel. The Board may in its discretion reject or reduce a
claim on the Association arising as a consequence of the failure by a Member
toadhere to the terms of such Regulations.
