British Marine has made changes to the expiring 2019 P&I terms and conditions, which are now reflected in the 2020 edition.
Insertion of a new clause as follows:
17.18 Deck Cargo: Liabilities, costs or expenses arising out of the carriage of cargo on deck; however, this exclusion shall not apply where the cargo is suitable for carriage on deck and one of the following applies:
17.18.1 the contract of carriage is specially endorsed to the effect that the cargo is carried on deck and provides that:
18.104.22.168 the carrier is exempted from all liability for loss or damage to such cargo howsoever caused; or
22.214.171.124 that the Hague Rules or Hague-Visby Rules apply to the on-deck carriage notwithstanding Article 1 (c) of said Rules;
17.18.2 the contract of carriage contains an appropriate liberty to carry cargo on deck and makes such carriage subject to the Hague Rules, the Hague-Visby Rules or no less favourable rights, immunities and limitations in favour of the carrier; or
17.18.3 where the contract of carriage is compulsorily subject to the Hamburg Rules by operation of law, the Assured has complied with the provisions of paragraphs 1 and 2 of Article 9 thereof.
Reason: The insertion of this clause provides clarity on the requirements which need to be satisfied in order to ensure coverage for liabilities in respect of cargo carried on deck. The insertion also aligns our terms and conditions with market practice.
The clause is amended to insert new paragraph 79.2 and includes logical amendments in paragraphs 79.1 and 79.3. The new clause is as follows:
79.1 Subject only to Clause 79.3 below, in no case shall this insurance cover loss, damage, liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system.
79.2 Subject to the conditions, limitations and exclusions of this policy, the indemnity otherwise recoverable hereunder shall not be prejudiced by the use or operation of any computer, computer system, computer software programme, computer process or any other electronic system, if such use or operation is not as a means for inflicting harm.
79.3 Where this Clause is endorsed on policies the Insurer is covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 79.1 shall not operate to exclude losses (which would otherwise be covered) arising from the use of any computer, computer system, computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.
Reason: The insertion of this new paragraph provides clarity with regard to coverage in respect of cyber related risks and places British Marine’s terms and conditions in line with regulators’ requirements.