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INSTITUTE STRIKE RISK CLAUSES.

This clause was necessitated by the deletion of the S.R. and C. C. clause from the Institute War Risks clauses. Under the new clauses the policy is expressed to cover (in consideration of an appropriate additional premium) the risks excluded by the S.R. and C.C. clause (Institute Cargo clauses-see Analysis," p. 212) and also "theft, pilferage, breakage and damage directly caused by strikers, locked-out workmen or persons taking part in labour disturbances, or riots or civil commotions." Under the clauses claims arising from delay or deterioration or loss of market are excluded. The following appear in their standard forms: Deviation clause (see "Analysis," p. 213); Warehouse to Warehouse clause (see “Analysis,” p. 214).

INSTITUTE YACHT CLAUSES.

For many years there have been in existence clauses very similar to those now officially issued by the Institute. (See p. 161 of the Clause Book, and p. 265 of the " Analysis.")

The Yacht clauses cover:

Total and/or constructive total loss;
Salvage charges;

Sue and labour charges;

Three-fourths running down clause;

General average, if it arises—an unlikely contingency; Particular average, without deductions subject to a franchise of £20 each accident, except in respect of motor machinery and its connections, which (other than the shaft and propeller) is warranted f.p.a. unless caused by the vessel being stranded, sunk, burnt, on fire, in collision, or contact with any external substance (ice included) other than water.

30

The Yacht clauses do not cover :

Excluded risks enumerated on p. 180 of the " Analysis under Institute Time clauses-Hulls;

Damage to sails, masts, or spars sustained whilst racing, unless the same be caused by stranding, sinking, fire or collision.

Replacing or repairing metalling unless the damage was caused by stranding, collision, fire, or being in contact with some substance other than water.

It is expressly provided that stores and gear ashore are covered to an amount not exceeding 15 per cent. (or as agreed) of the insured value of the vessel.

Other included clauses:

Continuation;

Sale of vessel (special);
Inchmaree (modified);
Valuation;

Notice (modified);

F.C. & S.

INSTITUTE YACHT PROTECTION AND INDEMNITY CLAUSES.

These clauses are extremely similar to the P. and I. clause of the Institute Standard Port Risks clauses dealt with on p. 25 of this supplement. They are intended for use, where required, with the Institute Yacht clauses, supra. In the following they differ from the Port Risks P. & I. clause :

(i.) Additional wording: "Costs of and expenses properly incurred by the Assured in connection with Board of Trade Enquiries "-under Part VI. of the Merchant Shipping Act, 1894-" and Coroners' Inquests and also Law Costs incurred with the consent in writing of Underwriters in defending any action."

(ii.) Expanded wording: After "Loss of life... or property appears "or Hospital, Medical and Funeral Expenses arising from accident on board, or near the vessel insured or any other vessel."

INSTITUTE REINSTATEMENT CLAUSE.

This clause replaces that on p. 165 of the Clause Book. It is now an official Institute Clause. Reference to the Analysis will explain the object of the Clause, but it must be noted that in order to obviate stamp duty difficulties it is now provided that the amount reinstated must be embodied in further appropriately stamped Policies.

INSTITUTE DANGEROUS DRUGS CLAUSE.

The object of this new clause is to prevent the insurance of illicit consignments of dangerous drugs; any policy is void unless evidence is adduced that the shipment is authorised.

WAR INSURANCE PERMISSION CLAUSE.

This new clause is self-explanatory.

ERRATUM.

Delete and composite," page 201, fourth line.

6/1/25.

INSTITUTE TIME CLAUSES.

HULLS.

1. And it is further agreed that if the Ship hereby Insured shall come into collision with any other Ship or Vessel and the Assured shall in consequence thereof 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 Undersigned will pay the Assured such proportion of three-fourths of such sum or sums so paid as their respective subscriptions hereto bear to the value of the Ship hereby Insured, provided always that their liability in respect of any one such collision shall not exceed their proportionate part of three-fourths of the value of the Ship hereby Insured, and in cases in which the liability of the Ship has been contested, or proceedings have been taken to limit liability, with the consent in writing of the Undersigned, they will also pay a like proportion of three-fourths of the costs which the Assured shall thereby incur, or be compelled to pay; but when both Vessels are to blame, then unless the liability of the Owners of one or both of such Vessels becomes límited by law, claims under this clause shall be settled on the principle of cross-liabilities as if the Owners of each Vessel had been compelled to pay to the Owners of the other of such Vessels such one-half 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 in consequence of such collision.

2. Provided always that this Clause shall in no case extend to any sum which the assured may become liable to pay, or shall pay for removal of obstructions under statutory powers, for injury to harbours, wharves, piers, stages, and similar structures, consequent on such collision; or in respect of the cargo or engagements of the Insured Vessel, or for loss of life or personal injury.

3. Should the Vessel hereby insured come into collision with or receive salvage services from another Vessel belonging wholly or in part to the same owners, or under the same management, the Assured shall have the same rights under this policy as they would have were the other Vessel entirely the property of owners not interested in the Vessel hereby insured; but in such cases the liability for the collision or the amount payable for the services rendered, shall be referred to a sole arbitrator to be agreed upon between the Underwriters and the Assured. 4. 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 or sail, with leave to sail with or without pilots, to tow and assist vessels or craft in all situations, and to be towed and to go on trial trips.

5. Should the Vessel at the expiration of this policy be at sea, or in distress, or at a port of refuge or of call, she shall, provided previous notice be given to the Underwriters, be held covered at a pro rata monthly premium, to her port of destination.

6. Held covered in case of any breach of warranty as to cargo, trade, locality, or date of sailing provided notice be given and any additional premium required be agreed immediately after receipt of advices.

7.

Should the Vessel be sold or transferred to new management, then unless the Underwriters agree in writing to such sale or transfer, this Policy shall thereupon become cancelled from date of sale or transfer, unless the Vessel has cargo

HULLS, TIME-continued.

on board and has already sailed from her loading port or is at sea in ballast, in either of which cases such cancellation shall be suspended until arrival at final port of discharge if with cargo, or at port of destination if in ballast. A pro rata daily return of premium shall be made.

8. This insurance also specially to cover (subject to the free of average warranty) loss of or damage to hull or machinery directly caused by accidents in loading, discharging or handling cargo, or caused through the negligence of Master, Mariners, Engineers, or Pilots, or through explosions, bursting of boilers, breakage of shafts, or through any latent defect in the machinery or hull, provided such loss or damage has not resulted from want of due diligence by the owners of the Ship, or any of them, or by the Manager. Masters, Mates, Engineers, Pilots, or Crew not to be considered as part owners within the meaning of this clause should they hold shares in the steamer.

9. General average and salvage to be adjusted according to the law and practice obtaining at the place where the adventure ends, as if the contract of affreightmert contained no special terms upon the subject; but where the contract of affreightment so provides the adjustment shall be according to York-Antwerp Rules 1890 (omitting in the case of wood cargoes the first word, "No," of Rule I.) or YorkAntwerp Rules 1924.

10. In the event of expenditure for Salvage, Salvage charges, or under the Sue and Labour Clause, this Policy shall only be liable for its share of such proportion of the amount chargeable to the property hereby insured as the insured value, less loss and/or damage, if any, for which the insurer is liable bears to the value of the salved property.

Provided that where there are no proceeds or there are expenses in excess of the proceeds, the expenses, or the excess of the expenses, as the case may be, shall be apportioned upon the basis of the sound value of the property at the time of the accident and this policy without any deduction for loss and/or damage shall bear its pro rata share of such expenses or excess of expenses accordingly.

11. Average payable on each valuation separately or on the whole, without deduction of thirds, new for old, whether the average be particular or general.

12. Donkey boilers, winches, cranes, windlasses, steering gear and electric light apparatus shall be deemed to be part of the hull, and not part of the machinery. Refrigerating machinery and insulation not covered unless expressly included in this Policy.

13. Warranted free from particular average under 3 per cent. but nevertheless, when the Vessel shall have been stranded, sunk, on fire, or in collision with any other Ship or Vessel, Underwriters shall pay the damage occasioned thereby, and the expense of sighting the bottom after stranding shall be paid if reasonably incurred, even if no damage be found.

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

15. Grounding in the Panama Canal, Suez Canal or in the Manchester Ship Canal or its connections, or in the River Mersey above Rock Ferry Slip, or in the River Plate (above Buenos Ayres) or its tributaries, or in the Danube, Demerara, or