Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 1 GENERAL SWEDISH HULL INSURANCE CONDITIONS 2000 With explanatory notes These conditions are approved by the Swedish Association of Marine Underwriters, The Swedish Club and The Swedish Shipowner’s Association The conditions are only intended as a guidance and nothing shall prevent the Insurer and the Insured from agreeing on other conditions The original Swedish wording of the Conditions to be decisive in case of dispute Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 2 Abbrevations.......................................................................................................................................................4 The Scope Of The Insurance..............................................................................................................................4 CLAUSE 1 OBJECTS COVERED BY THE INSURANCE.........................................................................................................................................4 CLAUSE 2 INSURED VALUE......................................................................................................................................................................................5 CLAUSE 3 COMMENCEMENT.................................................................................................................................................................................5 CLAUSE 4 PREMATURE TERMINATION OF LIABILITY SPL 7.3......................................................................................................................6 CLAUSE 5 THE SCOPE OF THE INSURANCE.......................................................................................................................................................6 CLAUSE 6 MAXIMUM LIMITS OF LIABILITY.......................................................................................................................................................8 CLAUSE 7 EXCLUDED LOSSES S..............................................................................................................................................................................9 CLAUSE 8 LIMITATION OF TRADING LIMITS..................................................................................................................................................15 Duty Of Disclosure...........................................................................................................................................16 CLAUSE 9 DUTY OF DISCLOSURE ON THE CONCLUSION OF THE INSURANCE CONTRACT.........................................................16 CLAUSE 10 DUTY OF DISCLOSURE DURING THE INSURANCE PERIOD..................................................................................................17 Safety Regulations, Unseaworthiness And Causing Loss By Wilful Conduct/Gross Negligence..............18 CLAUSE 11 SAFETY REGULATIONS.....................................................................................................................................................................18 CLAUSE 12 UNSEAWORTHINESS.........................................................................................................................................................................19 CLAUSE 13 EFFECT OF WILFUL MISCONDUCT OR NEGLIGENCE............................................................................................................19 Premiums..........................................................................................................................................................20 CLAUSE 14 PREMIUM.............................................................................................................................................................................................20 CLAUSE 15 REDUCTION OF PREMIUM.............................................................................................................................................................21 Certificate Of Insurance..................................................................................................................................21 CLAUSE 16 CERTIFICATE OF INSURANCE.........................................................................................................................................................21 Increase Of Risk And Reasons For Cancellation............................................................................................21 CLAUSE 17 DEVIATION BEYOND TRADING LIMITS......................................................................................................................................21 CLAUSE 18 INCREASE OF RISK AGREED TO BY THE INSURED...................................................................................................................22 CLAUSE 19 INCREASE OF RISK NOT AGREED TO BY THE INSURED........................................................................................................22 CLAUSE 20 DEMAND FOR RELEASE FROM LIABILITY WHEN THE RISK IS INCREASED.......................................................................22 CLAUSE 21 INCREASE OF RISK NOT AFFECTING INSURER'S LIABILITY....................................................................................................23 CLAUSE 22 REASONS FOR CANCELLATION.....................................................................................................................................................23 Clause 22...........................................................................................................................................................24 Damage And Adjusting Of Claims..................................................................................................................24 CLAUSE 23 MEASURES TO BE TAKEN IN CASE OF CASUALTY.................................................................................................................24 CLAUSE 24 TOTAL LOSS........................................................................................................................................................................................25 CLAUSE 25 TOTAL LOSS (UNSALVED VESSEL)...............................................................................................................................................26 CLAUSE 26 CONSTRUCTIVE TOTAL LOSS........................................................................................................................................................26 Clause 26...........................................................................................................................................................26 CLAUSE 27 INDEMNITY FOR TOTAL LOSS.......................................................................................................................................................27 CLAUSE 28 TIME, PLACE AND METHODS OF REPAIRS...............................................................................................................................27 Clause 28...........................................................................................................................................................28 CLAUSE 29 TEMPORARY REPAIRS.......................................................................................................................................................................29 CLAUSE 30 REMOVAL OF VESSEL.......................................................................................................................................................................30 CLAUSE 31 DIVISION OF GENERAL EXPENSES................................................................................................................................................30 CLAUSE 32 UNREPAIRED DAMAGE....................................................................................................................................................................31 CLAUSE 33 UNKNOWN DAMAGE TO THE VESSEL.......................................................................................................................................31 CLAUSE 34 ICE DAMAGE DEDUCTION.............................................................................................................................................................32 CLAUSE 35 MACHINERY DAMAGE DEDUCTION..........................................................................................................................................33 Clause 35...........................................................................................................................................................33 Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 3 CLAUSE 36 NON-CUMULATION OF DEDUCTIONS.....................................................................................................................................33 CLAUSE 37 INDEMNITY WITHOUT DEDUCTION..........................................................................................................................................33 CLAUSE 38 DEDUCTIBLES......................................................................................................................................................................................34 CLAUSE 39 CLAIMS AND BURDEN OF PROOF...............................................................................................................................................34 CLAUSE 40 TIME BAR OF CLAIMS......................................................................................................................................................................35 CLAUSE 41 PAYMENTS ON ACCOUNT AND ALLOWANCE OF INTEREST.............................................................................................35 CLAUSE 42 PAYMENT OF INDEMNITY..............................................................................................................................................................36 CLAUSE 43 SHIP MORTGAGES.............................................................................................................................................................................36 CLAUSE 44 DETERMINATION OF DISPUTES....................................................................................................................................................37 CLAUSE 45 THE INSURER'S PRIMARY LIABILITY AND LEGAL ACTIONS AGAINST THIRD PARTY...................................................37 CLAUSE 46 PROVIDING SECURITY FOR SALVAGE OR DAMAGES............................................................................................................38 CLAUSE 47 RIGHT OF RECOURSE.......................................................................................................................................................................38 Insurance Documents To Be Available On Board.........................................................................................38 CLAUSE 48 INSURANCE DOCUMENTS TO BE AVAILABLE ON BOARD..................................................................................................38 Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 4 Abbrevations AV : The General Swedish Hull Insurance Conditions of 2000 (Allmänna Svenska Kaskoförsäkringswillkor) FAL : The Swedish Insurance Contracts Act of 1927 (Försäkringsavtalslagen) SPL : General Swedish Marine Insurance Plan of 1957 (Svensk Sjöförsäkringsplan) The Scope of the insurance CONDITIONS Clause 1 OBJECTS COVERED BY THE INSURANCE SPL 73 The insurance covers the Vessel as well as spare parts on board. The insurance also covers such equipment and spare parts for the Vessel on board which belong to the Insured or which the Insured has borrowed, hired or purchased under a sale agreement with a reservation of title. Parts of the Vessel, her equipment and spare parts are covered by the insurance also during the period when these objects have been temporarily removed from the Vessel on account of loading, discharging, repairs or refitting and reconstruction provided that the objects are to be put on board again before sailing. The insurance also covers parts of the Vessel, her equipment and spare parts which are removed from the Vessel for repairs on account of a casualty, provided that the objects are put back on board the Vessel within a reasonable time. The insurance also covers hydraulic, bunkers and lubricating oils on board in stores that are owned by the Insured. The insurance does not cover all other equipment intended for consumption such as provisions and machinery consumable parts. The same applies to loose shifting boards, extra dunnage, timber and other material intended for shoring, supporting, lashing or separation of cargo. NOTES Clause 1 The insurance cover is more extensive than SPL, inasmuch as the indemnity also includes equipment not belonging to the Owner, but hired by him (as is often the case with radio and Decca installations), borrowed or bought under a credit purchase agreement with a reservation of title. Equipment means parts normally belonging to the Vessel. Equipment is also regarded as including such objects of art and decor as can be considered normal equipment of the Vessel in view of her employment, though not, however, pecuniary means in any form. As a condition for insurance coverage of equipment and spare parts it is stipulated that these must just temporarily have been removed from the Vessel during the stay in port in connection with the operation of the Vessel or due to cargo handling, repairs, refitting or reconstruction. What is meant by "reasonable time" in the event of a casualty repair has to be decided on a case-by-case basis. The insurance does not cover damage to, or loss of, equipment or spare parts, which have been stored ashore during the time the Vessel is laid up. Nor does the insurance cover newly acquired equipment and spare parts, which have not yet been taken on board. Cargo handling vehicles, which normally and not only temporarily sail with the Vessel, are covered against damage and loss caused by casualty to the Vessel or by heavy weather. However, the Insurer is not liable for any other damage to cargo handling vehicles or for indemnity to a third party due to operation of cargo handling vehicles (Clause 7.7 h). Vehicles stationed at loading and discharging ports are therefore not covered by the insurance even if they belong to the Insured or have been borrowed, Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 5 hired or purchased under a credit purchase agreement with a reservation of title by him and are temporarily situated on board. Containers are not covered by the insurance regardless of who owns or has control of them. The same applies for "flats", "pallets" etc. Such objects are considered as special packing or "material intended for shoring, supporting, lashing or separation of cargo" as per Clause l, third paragraph. Lighters, which are intended to be taken onboard to be transported by Vessels constructed for that purpose (LASH ships), are not covered by the insurance. Bareboat charterers are equated with the Insured as regards the requirement for ownership of bunkers, hydraulic and lubricating oils in stores. Examples of machinery consumable parts include piston rings, filters or other articles that are by their nature intended to be worn or consumed. CONDITIONS Clause 2 INSURED VALUE SPL 30 FAL 39 The insured value stated in the insurance contract is binding on the Insurer unless the Insured when effecting the insurance has given misleading information concerning the Vessel, which is of importance to the Insurer to know when estimating the value of the Vessel. In such an event the market value of the Vessel, immediately before the casualty occurred, is applied as the insured value. NOTES Clause 2 The assessed insured value should reflect the market value of the Vessel in unfixed condition at the commencement of the insurance. Examples of exceptions from the main rule may be special Vessels that cannot be attributed a general market value. CONDITIONS Clause 3 COMMENCEMENT SPL 19 The commencement and termination of the insurance contract is determined in accordance with the date and the time that the parties have agreed. All times stated are computed according to UTC. If no points in time have been stated in the contract, the commencement date is computed to start at UTC 00.00 on the commencement date stated in the contract and ends UTC 24.00 on the date when the contract terminates. In the event of such a disappearance as is referred to in Clause 24.2, where the insurance period expires before the right to indemnity arises, the insurance is extended to apply until the point in time at which such right arises. The right to an additional premium is governed by Clause 14. NOTES Clause 3 Heavy weather and ice damage that occurs on journeys taking place under two different insurance contracts are divided between the respective insurances according to the number of days with hard weather or passage through ice. Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 6 CONDITIONS Clause 4 PREMATURE TERMINATION OF LIABILITY SPL 7.3 Where the Vessel or the majority of the proprietary rights to the Vessel and/or the Shipowner is transferred to another Owner or where the existing title is changing so that the determining influence as proprietors transferred to another subject than the former Owner and if the Insurer has not expressly permitted that the insurance be transferred to the new Owner, the insurance terminates when the ownership is transferred or when the proprietary rights are changed. The insurance ceases to apply if the class of the Vessel is withdrawn, or if the class without the consent of the Insurer is transferred to another classification society that is not approved by the Insurer. If the Vessel is at sea, the insurance does not cease to apply before the Vessel has reached the nearest safe harbour. NOTES Clause 4 According to SPL Clause 85, the Insurer is entitled to give notice terminating the insurance with immediate effect if the Vessel is transferred to a new Owner. It is now provided that the Insurer's liability automatically terminates on a change of ownership. In the case where the ownership of the Vessel is exercised through part-ownership or shares in a company, the corresponding automatic termination will apply when the ownership position changes. The Insurer is, of course, at liberty to agree to the insurance ensuring for the benefit of the new Owner. As to change of management in respect of changes in the administration of the maintenance and operation of the Vessel, the stipulations in Clause 10.1 and Clause 22.2 g) will apply. The class shall be considered to be lost when the Insured or anyone on his behalf requests that the class shall cease or when the class has been withdrawn. Nearest safe harbour is equated with a safe anchorage near such a harbour. CONDITIONS Clause 5 THE SCOPE OF THE INSURANCE SPL 25, 55, 56-2, 76, 78, 98 Subject to the exceptions stated in these conditions the Insurer is liable for: a) actual or constructive total loss of the Vessel; b) the Vessel's contribution to General Average, contribution to joint expenditure as per Chapter 17, Section 6 of the Swedish Maritime Code or equivalent legal provision, as well as non-payment of contribution in General Average from the cargo interests or any other interested party liable for such a contribution with regard to damage to the vessel, recoverable in the general average according to adjustment which has been duly drawn up and which has acquired legal force or has been approved by the Insurer; non-payment of contribution from such a party is only reimbursed if the Insured has taken out an average bond and the refusal of the party to pay is due to breach of the contract of affreigthment; the Vessel's contribution is recoverable according to the adjustment even if the contributory value exceeds the agreed insured value of the Vessel; c) loss incurred for the purpose of completing a voyage in ballast or for saving the Vessel when carrying no cargo to the extent that the loss should have been made good in general average had the Vessel carried cargo; however, wages and maintenance during time for permanent repairs are not recoverable, nor are expenses in substitution for such disbursements; damage to the Vessel is compensated according to the provisions about particular average if these are more advantageous to the Insured; d) such damages as the Insured is liable to pay to a third party according to applicable principles governing the law of torts for damage inflicted to property by the Vessel through Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 7 direct collision/contact with some other vessel or object, and also such damages as the Insured is liable to pay in accordance with contract of towage for damage inflicted to tugboat or other boats that assist in the manoeuvring of the Vessel through direct collision with the Vessel. Where the vessel insured collides/contacts with a vessel or an object belonging to the same Owner, this circumstance shall not affect the Insurer's liability; e) all other perils to which the Vessel is exposed, third-party damages, however, being limited to what is stipulated under d); f) reasonable expense or sacrifice incurred in good faith to avert a peril for which the Insurer is liable or, where a loss has been incurred, to prevent further loss, even if the expense or sacrifice is not attributable to general average; where the expense or sacrifice has been incurred jointly for the insured Vessel and other interest, the Insurer is liable for such proportion of the expense or sacrifice as can reasonably be considered to fall on the Vessel. When damage to the Vessel is not payable, no expenses arising from the said damage shall be made good except salvage and adjustment charges. The costs of salving anchor, lifeboat or other equipment of the Vessel are reimbursed subject to agreed deductible. Where the vessel insured renders or receives salvage services or other assistance and the assisting/assisted vessel belongs to the same Owner as the vessel insured, this circumstance shall not affect the Insurer's liability. NOTES Clause 5 b) Apart from contribution in general average the provisions of the Swedish Maritime Code Chapter 17, Section 6 refer to disbursements that are made jointly for Vessel and cargo, or for part of the cargo, but which do not constitute general average. With the purpose of clarifying the coverage of the hull insurance it is now expressed in the provision in question that default of contribution in respect of damage to the ship from the cargo interests is also covered under certain conditions c) The provision does not, however, exclude indemnity for loss of time whilst the Vessel is awaiting repairs according to Clause 28.2. d) The Hull Insurer's liability for damages to a third party is limited to damage arising out of direct collision/contact with some other Vessel or object (quay, etc.). Indemnity is paid only for damage to property (Vessels and their equipment, cargo onboard another Vessel and other objects) but not for personal injury. This is normally covered by the P&1 insurance. On the other hand not only is physical damage included in damage to property but also loss of time and other indirect loss. Regarding further restrictions of the Hull Insurer's liability concerning certain types of third-party damage (oil pollution etc), see Clause 7.3a. Collision/contact means any striking, push or contact, whether hard or slight, of any other Vessel, under way or not, or fixed or floating objects. The Hull Insurer's liability is limited to damage caused by direct collision/contact. The Vessel insured or her boats must have been in direct physical contact with some other Vessel or object. Thus the insurance does not include those cases where the Vessel while manoeuvring or otherwise, causes damage to some other Vessel or object without direct collision/contact; such damage, however, could be the subject of indemnity when caused by manoeuvring intended to avoid direct collision/contact or any other risk for which the Hull Insurer is liable (compare below under Clause 7.3 a). Damage referred to above which is not recoverable under the Hull Insurance is covered by the P&1 Insurance, but e.g. if the Vessel insured collides with some other Vessel and the latter Vessel in her turn collides with a third Vessel or quay, the damage to the latter Vessel or quay is also to be considered as caused through direct collision/contact and is recoverable under the Hull Insurance. The same applies if damage is caused via an object that is not itself damaged or is valueless, i.e. a log, an ice floe etc. There is also a collision/contact of the Vessel, if it is only the Vessel's equipment or cargo that is the instrument of contact (weighed anchor, derricks, boats swung out, deck cargo etc.) - the exception in Clause 7.3 a) applies only to such damage as, not being consequential upon direct collision/contact with the Vessel, has been caused by the use of her anchors etc., or caused by her cargo. See further comment on this sub-clause, last paragraph. Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 8 The liability for property damage on account of a collision/contact includes only the remuneration that the Insured is liable to pay by reason of the collision/contact. This means the Insured's liability according to the appropriate legal principles relative to compensatory damages, whether the indemnity is the subject of a Court Order, or stems from an agreement between the Parties. Thus the extent of liability is that which the Insured could be ordered to accept in accordance with applicable law and judicial practice in the courts of the country with jurisdiction. A Towage Contract often places a far-reaching liability on the towed Vessel. In order that there should be the simplest and clearest possible distinction between Hull and P&I the following applies: The Hull Insurer also covers the towed Vessel's liability on a contractual basis for damage to the tug as a consequence of collision with the towed Vessel. The Hull Insurer does not cover any other liability arising from the contract of towage. Thus damage caused by a tugboat through collision with another Vessel or object does not affect the Hull Insurer. The same applies for other work boats that assist in the manoeuvring of the Vessel. A claim for damages from a third party is fully recoverable even if the liability is calculated by reference to value exceeding the insured value Vessel. f) Expenditure for the purpose of protecting the Vessel, as well as her cargo or part thereof, from a threatening peril, is, as a rule, apportioned in general average or according to Chapter 17, Section 6 of the Swedish Maritime Code, and the Insurer is already liable on the basis of provisions of Clause 5 b) for the Vessel's contribution. According to Clause 5 c), the Insurer is liable for salvage charges for a Vessel in ballast, which should have been allowed in general average had the Vessel carried cargo. The provisions of Clause 5 f) are thus mainly important in connection with the question of measures taken to avert or reduce such particular average to the Vessel for which the Insurer is liable. The requirement that an expenditure or sacrifice must have been reasonable, means not only that the measures taken were sensible, but also that the costs were reasonable. As to whether or not the expenditure or sacrifice was justifiable in both of these respects must be assessed in light of the situation prevailing and those alternatives available at the time the measures were taken. The Insurer may thus - provided the Insured was acting in good faith - be liable even in the case of error of judgment and if the precautionary measures did not produce the intended result or became too expensive. It is of no consequence if the measures were taken by the Insured himself, or by an officer, crewmember or a third party. From the last paragraph it follows that the stipulation about deductible is applied on costs for salvage of parts of the Vessel. CONDITIONS Clause 6 MAXIMUM LIMITS OF LIABILITY SPL 26 Hull damage 6.1 a) For loss other than third-party compensation, the Insurer is liable up to the amount insured on any one recoverable casualty. 6.1 b) Even if the amount insured is exceeded, the Insurer nevertheless indemnifies reasonable expense or sacrifice incurred in order to avert or minimise loss or damage; reasonable expense incurred to protect rights of recourse against a third party reasonable expense incurred in order to provide security for salvage charges or for damages; reasonable cost of average adjustment; interest on the allowed claim in accordance with what is stipulated in Clause 41 below. Release from further liability for hull damage 6.2 The Insurer is entitled to release himself, in the case of a casualty, from further liability by paying the amount insured and indemnifying such costs as have been incurred or for which liability has arisen before the Insured received notice of the Insurer's decision and for which Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 9 the Insurer is liable according to 6.1 and 6.2 above. In the cases provided for in these sub- clauses the Insurer has no right to what may remain of the Vessel. Third-party losses 6.3 In addition to what is stipulated above, the Insurer is liable, on each recoverable casualty, for third-party damages, including interest and expenses incurred in defending claims by such third party, up to the amount insured. NOTES Clause 6 As regards the maximum limits of liability, there is substantial difference in favour of the Insured when compared with SPL. The Insurer is thus liable up to the amount insured for damage to the Vessel and, in addition, for an amount - also up to the insured amount - for compensation to a third party for damage to property. These two limitations are not cumulative. If one limit is not exhausted in covering damage to the Vessel and where the second limit is insufficient to cover the third-party damages, or vice versa, the surplus of one limit cannot be used to make good the amount by which the other is deficient. The provisions in I b) relating to indemnity for reasonable expense or sacrifice to avert or minimise loss or damage refer only to such damage or loss for which the Insurer is liable. CONDITIONS Clause 7 EXCLUDED LOSSES S PL 24, 26, 56, 80 7.1 The Insurer is not liable for: a) loss or damage caused by normal use of the Vessel, her machinery or equipment; b) damage to part or unit as a consequence of 1. wear and tear, age, corrosion, pitting or insufficient maintenance and care; 2. design defect or faulty materials, unless the part or unit in question has been approved by the Classification Society and the damage occurred after the expiry of the normal warranty period and repair is required for reasons other than those stated in b) 1. 7.2 The Insurer is not liable for loss or damage caused by: a) the Vessel being used for unlawful purposes except where the Insured neither knew nor ought to have known of this fact at such a time that it would have been possible for him to intervene; b) war, civil war or similar contingencies covered by the General Swedish War Risk Insurance Conditions in force at the time when the insurance was effected; c) embargo, seizure, confiscation or other measure implemented by civil or military authorities, except for cases that the Vessel, as a result of a casualty for which the Insurer is liable, suffers physical damage through measures by military or civil authorities aimed at preventing or mitigating damage to the environment, provided such measures have not resulted from the Insured's intentional or negligent omission to take reasonable measures to prevent or mitigate such damage to the environment and that the event is not covered by applicable Swedish War Risk Insurance Conditions; d) requisition by civil or military authorities; nor for damage sustained by the Vessel while under requisition; e) strikes, lockouts, riots, civil commotion, sabotage, plundering or mutiny. The Insurer is neither liable for: f) damage or liability, directly or indirectly caused by, contributed to by or arising from: Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia) http://www.pdfmail.com For Information Only 10 1) release of nuclear energy, fission or fusion in connection with explosion or test explosion of nuclear weapons or nuclear charge. If contamination by means of radioactive material has taken place or if other direct influence of such an explosion has contributed to the damage, the damage in its entirety shall be considered as caused by the explosion; 2) other nuclear damage, which means damage caused by: i) radioactive properties of nuclear fuel; ii) radioactive products; iii) radioactive properties in combination with toxic, explosive or other hazardous properties of the fuel or the product, and/or iv) damage, caused by ionising radiation from other source of radiation in a nuclear installation or atomic reactor than nuclear fuel or radioactive product. The terms nuclear fuel, radioactive product, atomic reactor and nuclear installation shall be defined as per the Swedish Nuclear Liability Act (1968:45). Clause 7.2 f) shall be paramount and shall override anything contained in this insurance inconsistent therewith. 7.3 The Insurer is not liable for: a) such third-party damages or for such expenses as the Insured has to pay for: 1. damage caused by chemicals, oil, gas, steam or similar solid, fluid or volatile substances or for the laying out of booms or for other preventive actions taken in order to prevent such damage. However, such cost is indemnified if it is allowed in General Average in accordance with an average adjustment prepared and based on the York Antwerp Rules of 1994 or if the expense has arisen to prevent damage caused by leakage from the Vessel when it is at dock for inspection or repair of a casualty even including internal cleaning of the dock after such leakage; 2. damage caused by wash or otherwise by the manoeuvring of the Vessel, by the use of her anchors, mooring or tow lines, loading and discharging devices, gangways etc. or by the Vessel's cargo, unless constituting general average or Assumed general average; b) personal injury or for damage to the Vessel's own cargo or such objects or installations on board which do not belong to the Insured or which the Insured has borrowed, stored, hired or purchased under a credit purchase agreement with a reservation of title; c) damage to a third party caused by the insured Vessel towing another vessel unless the towage resulted from salvage under such circumstances that it must be held justifiable; d) damage sustained, when the insured Vessel has salved another Vessel and received salvage award therefor; where the damage sustained exceeds the salvage award the exceeding proportion of the damage is, however, allowed as a Particular Average. 7.4 The Insurer is not liable for : a) compensation to a Charterer or other person, who has an interest in the insured Vessel; b) damage caused by the fact that the Insured has entered into a contract of affreightment or other agreement containing unusual conditions; c) costs for passengers.