Commercial Hull Insurance - Allianz Australia · PDF fileCommercial Hull Insurance Policy...

Commercial Hull Insurance

Policy Document.

Allianz Marine & Transit Underwriting Agency

As a specialist, our exclusive focus is on providing solutions to clients in the marine, transport and logistics industries.

allianzmarineandtransit.com.au

77172 POL309 AM&T Comercial Hull cov_D1.indd 1 31/03/15 10:05 AM

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Table of contentsPage

Usage 11

Majorrepairs 11

Radioactive,nuclear,asbestos 11

Cyber 11

Terrorism 12

Property(physicalDamage)exclusions 12

Undeclaredrisks 12

Vesselcondition 12

Consequentialloss 12

Other 12

Liability(P&ILiability)exclusions 12

Crew,employeesandfamilymembers 12

Otherexcludedparties 12

Motorvehicle/towingrisks 12

Contractualliability 12

Fines,penaltiesetc 12

Other 12

General conditions 13

ApplicableLaw 13

AutomaticReinstatementClause 13

Alterationofrisk 13

Authority 13

BreachofConditionorWarranty 13

CrossLiability 13

DueCare 13

GSTnotice 13

Licensing/RegistrationWarranty 14

OtherInsurance 14

Prohibitedcoverorpayments 14

Thirdpartyinterests 14

Underinsurance 14

Waiverofsubrogationrights 14

Claims 15

Notification 15

HowmuchWepay 15

LossorDamagetoYourVessel 15

Deductible 15

Page

Introduction and important notices 2

Introduction 2

WhoistheInsurer? 2

AboutAllianzMarine&TransitUnderwritingAgencyandAllianz 2

OurcontractwithYou 2

NoWorkersCompensationcover 3

UnderstandingYourPolicyanditsimportanttermsandconditions 3

Applyingforcover 3

Renewalprocedure 3

Contactforassistanceorconfirmationofcover 3

YourDutyofDisclosure 3

Alterationofrisk 4

Premium 4

NonPaymentofPremiumbyInstalments–Righttorefuseaclaimand/orcancelYourPolicy 4

InstalmentPremiumservicefee 4

Howtomakeaclaim 5

Cancellation 5

Privacynotice 5

GeneralInsuranceCodeofPractice 6

Disputeresolutionprocess–helpingYousolveanyproblems 6

Ifthisinsurancehasbeenissuedthroughaninsuranceintermediary 6

Words with special meaning 7

Cover 9

DeliberateDamage 9

FixedFireApplianceDischargeClause 9

Fishing/SportsEquipment 9

LeasedEquipmentClause(excludingFishing,DivingandRecreationalEquipment) 10

Negligent/wrongfulactbyHirers/Charterers 10

PassengerLiabilityExtension 10

PersonalandCrewproperty 10

ShoreCover 10

TransitCover 10

General exclusions 11

Outsideagreedlimits 11

77172 POL309 AM&T Comercial Hull txt_D1.indd 1 31/03/15 10:12 AM

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Our contract with YouWhereWeagreetoenterintoaPolicywithYouitisacontractofinsurancebetweenUsandYou(seethedefinitionof“You”fordetailsofwhoiscoveredbythisterm)andisacontractofmarineinsuranceasdefinedbytheMarineInsuranceAct1909.

WeonlycoverthosepartiesshownintheScheduleunlessotherwisestatedinthePolicyasbeingapersonorentityentitledtocover.IfmorethanonepersonisinsuredunderthePolicy,afailureorwrongfulactionbyoneofthosepersonsmayadverselyaffecttherightsofanyotherpersoninsuredunderthePolicy.

WecoverYouinaccordancewiththeinsuranceasdescribedinthisPolicy,forthePeriodofInsuranceshownontheScheduleandforanysubsequentperiodwhererenewalmaybeagreed.ThemaximumamountWewillpayunderthePolicywillnotexceedtheSumInsuredortheLimitofIndemnityshownontheScheduleunlessotherwisespecifiedherein.CoverisonlyprovidedwheretherelevanteventorincidentoccurswithintheGeographicLimits(whereapplicable).

YouarerequiredtocomplywiththetermsandconditionsofthePolicy.PleaserememberthatifYoudonotcomplywithanytermorcondition,Wemay(totheextentpermittedbylaw)declineorreduceanyclaimpaymentand/orcancelYourPolicy.

ThePolicyconsistsof:

• thisdocumentwhichsetsoutthestandardtermsofYourcoveranditslimitations;

• YourcurrentScheduleissuedbyUs.TheScheduleisaseparatedocument,whichshowstheinsurancedetailsrelevanttoYou.Itmayincludeadditionalterms,conditionsandexclusionsrelevanttoYouthatamendthestandardtermsofthisdocument;and

• anyotherchangetothetermsofthePolicyotherwiseadvisedbyUsinwriting(suchasanEndorsement).Thesewrittenchangesmayvaryormodifytheabovedocuments.

Theseareallimportantdocumentsandshouldbecarefullyreadtogetherandkeptinasafeplaceforfuturereference.WhenYouenterintothePolicyYouconfirmandwarrantthatYouhavereadorwillreadthePolicydocumentswhenprovidedtoYou.AnyneworreplacementScheduleWemaysendYou,detailingchangestoYourinsuranceorthePeriodOfInsurance,willbecomethecurrentSchedule,whichYoushouldcarefullyreadandretain.

Wereservetherighttochangethetermsofthisinsurancewherepermittedtodosobylaw.

Introduction and important noticesIntroductionWelcomeandthankYouforchoosingOurCommercialHullInsurancePolicy.

Thisisanimportantdocument.Youshouldreaditcarefullybeforemakingadecisiontopurchasethisinsurance.ItwillhelpYouto:

• decidewhetherthisinsurancewillmeetYourneeds;and

• compareitwithotherproductsYoumaybeconsidering.

PleasenotethatanyrecommendationoropinioninthisdocumentisofageneralnatureonlyanddoesnottakeintoaccountYourobjectives,financialsituationorneeds.

YouneedtodecideifthisinsuranceisrightforYouandYoushouldreadallofthedocumentsthatmakeupthePolicytoensureYouhavethecoverYouneed.

Who is the Insurer?TheInsurerisAllianzAustraliaInsuranceLimited(Allianz),AFSLicenceNo.234708,ABN15000122850.

InthePolicydocumentWerefertoAllianzAustraliaLimitedas“We”,“Us”,“Our”and“Allianz”.

About Allianz Marine & Transit Underwriting Agency and AllianzAllianzMarine&TransitUnderwritingAgencyPtyLimitedAFSRepresentativeNo.423910ABN98155554279ofLevel1,61LavenderStreet,MilsonsPointNSW2061isanAustralianorganisationthatspecialisesinprovidinginsuranceproductsforcargo,commercialhullandmarineliabilities.AllianzMarine&TransitUnderwritingAgencyhavebeengivena“binding”authoritybyAllianztoissue,varyandcancelthisinsuranceandsettleclaimsasagentsofAllianzasiftheywereAllianztheinsurer.

AllianzisoneofAustralia’slargestgeneralinsurers.Weutiliseyearsoflocalexpertise,combinedwithglobalexperiencetoofferawiderangeofproductsandservicestoOurcustomers.AsamemberoftheworldwideAllianzGroup,WearecommittedtocontinuousimprovementofOurproductsandservicesandstrivetoachievethisthroughknowledgetransferwithinthegroup,dedicatedtechnicalresearchunits,sharingnewproductdevelopmentsandawiderangeofriskmanagementservicesglobally.


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WhereWeagreetoissueaPolicy,coverisprovidedonthebasis:

• thatYouhavepaidoragreedtopayUsthePremiumforthecoverprovided;

• oftheverbaland/orwritteninformationprovidedbyYouwhichmusthavegiveninaccordancewithYourDutyofDisclosure.

YourDutyofDisclosureandtheconsequencesofnondisclosure,areprovidedundertheheading‘YourDutyofDisclosure’onpage3.

Renewal procedureBeforeYourPolicyexpires,WewilladviseYouwhetherWeintendtoofferrenewalandifsoonwhatterms.

ThisdocumentalsoappliesforanyotherrenewalWemake,unlessWetellYouotherwise.

ItisimportantthatYoucheckthetermsofanyrenewalbeforerenewingtosatisfyYourselfthatthedetailsarecorrect.InparticularcheckthesuminsuredamountstoensurethatthelevelsofcoverareappropriateforYouandthatYouareproperlycoveredintheeventofamajorloss.

PleasenotethatYouneedtocomplywithYourDutyofDisclosurebeforeeachrenewal(seebelow).

Contact for assistance or confirmation of coverIfYouneedtoconfirmanyPolicytransactionorclarifyanyoftheinformationcontainedinthisdocumentorifYouhaveanyotherqueries,pleasecontactUsviathedetailsonthebackcover.

Your Duty of DisclosureBeforeenteringintoacontractofgeneralinsurancewithUs,Youhaveaduty,undertheInsuranceContractsAct1984andtheMarineInsuranceAct1909(asapplicable)todisclosetoUseverymatterwhich:

• Youknow;or

• areasonablepersoninthecircumstancescouldbeexpectedtoknow,

isrelevanttoOurdecisionwhethertoaccepttheriskoftheinsuranceand,ifso,onwhatterms.

YouhavethesamedutytodisclosethosematterstoUsbeforeYourenew,extend,varyorreinstateacontractofgeneralinsurance.

Thisdutyofdisclosureappliesuntilthecontractisenteredinto(orrenewed,extended,variedorreinstatedasapplicable).

No Workers Compensation coverThisPolicydoesnotincludeworkerscompensationcover.SuchcoveriscompulsoryforemployersandYoushouldarrangeseparateinsurance.

Understanding Your Policy and its important terms and conditionsToproperlyunderstandthesignificantfeatures,benefitsandrisksofthisinsuranceYouneedtocarefullyread:

• therestofthis“Introduction”section–thissetsouthowYouapplyforcover,thebasisonwhichWeinsureYou,thedutyofdisclosureYouneedtomeetbeforeWeinsureYou,Ourprivacyinformation,Ourdisputeresolutionproceduresandotherimportantinformation;

• the“Wordswithspecialmeaning”section–thissetsoutwhatWemeanbycertainwordsusedinthePolicy.Thesewordsbeginwithacapitalletterthroughoutthisdocument;

• the“GeneralPolicyexclusions”section–thissetsoutthegeneralexclusionsandlimitsthatapplytocoverandbenefits;

• the“GeneralPolicyconditions”and“Claims”sections–thesesetoutcertaingeneralrightsandobligationsthatYouandWehave;

• allofthedocumentsthatmakeupthePolicy,includingthePolicyScheduleandanyEndorsementsorotherwrittenchangestothecoverWeissueYouwith–thesecontainspecificdetailsrelevanttoYouandcanaffectthecover.

HeadingsareprovidedforreferenceonlyanddonotformpartofYourPolicyforinterpretationpurposes.

Applying for coverWhenYouapplybycompletingOurapplicationprocessYouneedtoprovidetheinformationWerequiretodeterminewhethertoissueaPolicyandifso,onwhatterms,including(totheextenttheyareoptional):

• thecoversandbenefitsYouwant(includingthepropertyYouwishtocover);

• thelimitsYouwant;

• theperiodofcoverYouwant;

• whetherYouwantanythirdpartiestobenotedashavinganinterest;

• theDeductiblethatYouwanttocontributeforcertainclaims;

• whetheranystandardtermsneedtobevaried(thismaybebywayofanEndorsement).


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Yourdutyhoweverdoesnotrequiredisclosureofanymatter:

• thatdiminishestherisktobeundertakenbyUs;or

• thatisofcommonknowledge;or

• thatWeknowor,intheordinarycourseofOurbusinessasaninsurer,oughttoknow;or

• astowhichcompliancewithYourdutyiswaivedbyUs.

Non-disclosure

Where the Insurance Contracts Act appliesWheretheInsuranceContractsActapplies,if:

• YoufailtocomplywithYourdutyofdisclosure,WemaybeentitledtoreduceOurliabilityunderthecontractinrespectofaclaim,cancelthecontractorboth;

• Yournon-disclosureisfraudulent,Wemayalsohavetheoptionofavoidingthecontractfromitsbeginning.

Where the Marine Insurance Act 1909 appliesWheretheMarineInsuranceAct1909applies,ifYoufailtocomplywithYourdutyofdisclosure,Wemayavoidthecontractfromitsbeginning.

Who must tell Us?

EveryonewhoisinsuredunderthePolicymustanswerthequestioninthisway.

Alteration of riskWhere the Insurance Contracts Act applies

IfYoubecomeawareofanychangestothefactsorcircumstanceswhichexistedwhenthisinsurancecommencedthatchangethenatureoftherisk(forexample,thenatureofYourCommercialVesseloperationsorwayYourVesselismoored)inawaythatwouldincreasetheriskoflossorDamageoccurringYoumustnotifyUsimmediatelyinwriting.IfWeagreetothechangeWewilldosoinwritingandYoumustpayUsanyadditionalPremiumWerequire.

Where the Marine Insurance Act applies

YoumustgiveUsimmediatenoticeinwritingifthereisanymaterialchangeinthecircumstancesornatureoftheriskscoveredbythisPolicy,ornoclaimarisingafterthechangeshallbepayableunlessWehaveagreedtothechangeinwriting.

PremiumTheamountofYourPremiumisdeterminedbytakinganumberofdifferentmattersintoaccountincludingYourriskprofile.ItisimportantforYoutoknowthatthePremiumvariesdependingontheinformationthatWereceivefromYouabouttherisktobecoveredbyUs.BasedonOurexperienceandexpertiseasaninsurer,WedecidewhatfactorsincreaseOurriskandhowtheyshouldimpactonthePremium.

YourriskprofileisbasedonacombinationoffactorsthatassistindeterminingthelikelihoodofaclaimoccurringinthePolicyyearandtheamountthattheclaimislikelytocostUs.ThefactorsthatmakeupYourriskprofileinclude:

• Yourpastlosshistory,experienceincommercialVesseloperations,andtheclaimshistoryandexperienceofYouremployeesorpersonswhoareallowedtousetheVessel;

• thetype,age,areaofoperation,locationandUsageoftheVessel;

• theInsuredValueoftheVesselincludingEquipmentandAccessories;

• thecoverrequiredandDeductibleapplicable;and

• whetherYoupayYourPremiumannuallyorbyinstalments,andwhetherYourVesselisfinancedandunderwhattypeoffinanceandrelevantinsurance,criminalandbankruptcyhistory.

FactorsthatincreasetherisktoUsmayresultinahigherbasePremiumwhilstfactorsthatdecreaseOurriskmayresultinalowerbasePremium.

YourPremiumalsoincludesamountsthattakeintoaccountOurobligationtopayanyrelevantcompulsorygovernmentcharges,taxesorlevies(e.g.StampDuty,GST,EmergencyandFireServicesLevy)inrelationtothePolicy.TheseamountswillbesetoutseparatelyonYourScheduleaspartofthetotalPremiumpayable.

WhenYouapplyforthisinsurance,YouwillbeadvisedofthetotalPremiumamountpayable,whenitneedstobepaidandhowitcanbepaid.ThisamountwillbesetoutintheSchedule,whichwillbesenttoYouaftercommencementofthePolicy.IfYoufailtopayWemayreduceanyclaimpaymentbytheamountofPremiumowingand/orcancelthePolicy.SpecialrightsandobligationsapplytoinstalmentPremiumpaymentsassetoutbelow.

Non Payment of Premium by Instalments – Right to refuse a claim and/or cancel Your Policy

WhereYoupayYourPremiumbyinstalments,Youmustensurethattheyarepaidontime.Ifaninstalmenthasremainedunpaidforaperiodofatleastfourteen(14)days,Wemayrefusetopayaclaim.

Ifaninstalmentremainsunpaidforatleast1month,WemaycancelthePolicy.

Instalment Premium Service Fee

InsomecasesaservicefeewillapplywhereYouselecttopayYourPremiumbyinstalments.WetellYouthetotalamountpayablewhenYouapplyandwhenandhowitcanbepaid.ThisisconfirmedintheScheduleWeissuetoYou.


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How to make a claimIfYouneedtomakeaclaimunderthePolicy,pleaserefertotheClaimsSectiononpage15.

Cancellationa) YoumaycancelthePolicyatanytimebynotifyingUs

inwriting;

b) WehavetherighttocancelthePolicywherepermittedbylaw.

Where the Insurance Contracts Act 1984 applies WecancancelthePolicy:

• ifYoufailedtocomplywithYourDutyofDisclosure;or

• whereYouhavemadeamisrepresentationtoUsduringnegotiationspriortotheissueofthePolicy;or

• whereYouhavefailedtocomplywithaprovisionofthePolicy,includingpaymentofPremium;or

• whereYouhavemadeafraudulentclaimunderYourPolicyorundersomeothercontractofinsurancethatprovidescoverduringthesameperiodoftimethatOurPolicycoversYou.

IfWedecidetocancelYourPolicyWewillgivewrittennoticetoYoupersonallyorbyposttoYourlastknownaddressor,Yourintermediaryasmaybeappropriate.Suchnoticewillbeeffectivefrom4pmonthethirdbusinessdayafterthedayitisgiventoYou,unlessitspecifiesalaterdate.

IntheeventthatYouhavemadeaclaimunderthePolicyandWehaveagreedtopaythefullSumInsured,noreturnofPremiumwillbemadeforanyunusedportionofthePremium.

IfYouorWecancelthePolicyWemaydeductaprorataproportionofthePremiumfortimeonrisk,reasonableadministrativecostsrelatedtotheacquisitionandterminationofYourPolicyandanygovernmenttaxesordutiesWecannotrecover.

Where the Marine Insurance Act 1909 applies WheretheMarineInsuranceAct1909applies,Wemay

cancelthisPolicyintheeventofnon-paymentofthePremiumorforanyotherreasonavailableatlaw.

c) IfWedecidetocancelYourPolicyWewillgivewrittennoticetoYoupersonallyorbyposttoYourlastknownaddressorYourintermediaryasmaybeappropriate.SuchnoticewillbeeffectivefromtheexpiryofthestipulatedperiodcalculatedfrommidnightofthedayonwhichnoticeofthecancellationisissuedbyortoUs.ApostednoticeisdeemedgiventoYouatthetimeitwouldhavebeendeliveredinthenormalcourseofthepostalservice.

d) IntheeventthatYouorWecancelthePolicy,WemayelecttoapplyaminimumPremiumprovisionadvisedtoYouatthetimeYoutookoutthePolicywithUs,ordeductaprorataproportionofthePremiumfortimeonrisk,reasonableadministrativecostsrelatedtotheacquisitionandterminationofYourPolicyandanygovernmenttaxesordutiesWecannotrecover.IntheeventthatYouhavemadeaclaimunderthePolicyandWehaveagreedtopaythefullSumInsured,noreturnofPremiumwillbemadeforanyunusedportionofthePremium.

e) IfthePremiumhasbeenfundedbyaPremiumfundingcompanywhichholdsalegalrightoverthePolicybyvirtueofanoticeofassignmentand/orirrevocablepowerofattorney,arefundwillbemadetothePremiumfundingcompanyinaccordancewiththeprovisionssetoutabove.

Privacy noticeAtAllianz,WegiveprioritytoprotectingtheprivacyofYourpersonalinformation.WedothisbyhandlingpersonalinformationinaresponsiblemannerandinaccordancewiththePrivacy Act 1988 (Cth).

How We collect Your personal information

WeusuallycollectYourpersonalinformationfromYouorYouragents.WemayalsocollectitfromOuragentsandserviceproviders;otherinsurersandinsurancereferencebureaus;peoplewhoareinvolvedinaclaimorassistUsininvestigatingorprocessingclaims,includingthirdpartiesclaimingunderYourPolicy,witnessesandmedicalpractitioners;thirdpartieswhomaybearranginginsurancecoverforagroupthatYouareapartof;lawenforcement,disputeresolution,statutoryandregulatorybodies;marketinglistsandindustrydatabases;andpubliclyavailablesources.

Why We collect Your personal information

WecollectYourpersonalinformationtoenableUstoprovideOurproductsandservices,includingtoprocessandsettleclaims;offerOurproductsandservicesandthoseofOurrelatedcompanies,brokers,intermediariesandbusinesspartnersthatmayinterestYou;andconductmarketorcustomerresearchtodeterminethoseproductsorservicesthatmaysuitYou.YoucanchoosenottoreceiveproductorserviceofferingsfromUs(includingproductorserviceofferingsfromUsonbehalfofOurbrokers,intermediariesand/orOurbusinesspartners)orOurrelatedcompaniesbycallingtheAllianzDirectMarketingPrivacyServiceLineon1300360529,EST8am-6pmMondaytoFriday,orgoingtoourwebsite’sPrivacysectionatwww.allianz.com.au.


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Who We disclose Your personal information to

WemaydiscloseYourpersonalinformationtootherswithwhomWehavebusinessarrangementsforthepurposeslistedintheparagraphaboveortoenablethemtooffertheirproductsandservicestoYou.Thesepartiesmayincludeinsurers,intermediaries,reinsurers,insurancereferencebureaus,relatedcompanies,ouradvisers,personsinvolvedinclaims,externalclaimsdatacollectorsandverifiers,partiesthatWehaveaninsuranceschemeinplacewithunderwhichyoupurchasedyourpolicy(suchasafinancierormotorvehiclemanufacturerand/ordealer).Disclosuremayalsobemadetogovernment,lawenforcement,disputeresolution,statutoryorregulatorybodies,orasrequiredbylaw.

Disclosure overseas

YourpersonalinformationmaybedisclosedtoothercompaniesintheAllianzGroup,businesspartners,reinsurersandserviceprovidersthatmaybelocatedinAustraliaoroverseas.Thecountriesthisinformationmaybedisclosedtowillvaryfromtimetotime,butmayincludeCanada,Germany,NewZealand,UnitedKingdom,UnitedStatesofAmericaandothercountrieswheretheAllianzGrouphasapresenceorengagessubcontractors.WeregularlyreviewthesecurityofOursystemsusedforsendingpersonalinformationoverseas.Anyinformationdisclosedmayonlybeusedforthepurposesofcollectiondetailedaboveandsystemadministration.

Access to Your personal information and complaints

YoumayaskforaccesstothepersonalinformationWeholdaboutYouandseekcorrectionbycalling1300360529EST8am–6pm,MondaytoFriday.OurPrivacyPolicycontainsdetailsabouthowYoumaymakeacomplaintaboutabreachoftheprivacyprinciplescontainedinthePrivacy Act 1988 (Cth)andhowWedealwithcomplaints.OurPrivacyPolicyisavailableatwww.allianz.com.au.

Telephone call recording

Wemayrecordincomingand/oroutgoingtelephonecallsfortrainingorverificationpurposes.WhereWehaverecordedatelephonecall,WecanprovideYouwithacopyatYourrequest,whereitisreasonabletodoso.

General Insurance Code of PracticeTheGeneralInsuranceCodeofPracticewasdevelopedbytheInsuranceCouncilofAustraliatofurtherraisestandardsofpracticeandserviceacrosstheinsuranceindustry.WekeenlysupportthestandardssetoutintheCode.YoucanobtainmoreinformationontheCodeofPracticeandhowitassistsYoubycontactingUs.Contactdetailsareprovidedonthebackcoverofthisdocument.

Dispute resolution process – helping You solve any problemsComplaintsordisputesarenotaneverydayoccurrenceatAllianz.WestrivetodothingstherightwayandkeepOurcustomershappy.

Sometimesthough,complaintsordisputesdooccurandwhenthishappens,Ourobjectiveistoresolveanydisagreementasamicablyandasquicklyaspossible.WebelievethebestwaytoachievethisistoprovideYouwithanopportunityforanunbiasedreviewoftheissue.

Here is what to do if a complaint or dispute arises

RegardlessofwhetherthecomplaintordisputeinvolvesOurstaff,anagent,lossadjuster,assessor,investigatorortheserviceWeprovide,simplycontactUson132664EST8am-6pm,MondaytoFriday,speaktooneofOuroperatorsandprovidethemwiththedetailsoftheissueconcerningYou.Theywillattempttoresolvethecomplaintordispute;iftheyareunabletodosotheywilllogitandreferittotheappropriatebusinessunitforresolution.

WithinOurorganisationWehaveestablishedacomplaintsanddisputesresolutionprocess.Thisisafreeservice.Itisasystemdesignedtolog,track,escalateandmonitorcomplaintsreceivedfromclientsandcustomersaboutOurservicesandproducts.AstaffmemberinvolvedinthecomplaintsanddisputesresolutionprocesswillwritetoYouwithin15workingdaysadvisingtheoutcomeofthereviewandreasonsfortheirdecision.WedonotconsideracomplaintordisputetoberesolveduntilaproposedresolutionorsolutionhasbeencommunicatedtoYouandYouhaveacceptedtheresolutionorsolution.

If You are not satisfied with the outcome of this process

IfWeareunabletoresolvethecomplaintordispute,WewilladviseYouaboutanyexternaldisputeresolutionoptionsthatareavailableoradviseYoutoseekindependentlegaladvice.

If this insurance has been issued through an insurance intermediaryIfYourPolicyhasbeenissuedthroughOuragent,orabrokerwhoisactingunderanagencyarrangementsuchasabinderwithUs,thentheyareactingasOuragentandnotasYouragent.

IfYourPolicyhasbeenissuedbyabroker,otherthanabrokeractingundersuchanagencyarrangementwithUs,thenthebrokerisactingasYouragent.

WherethisPolicyhasbeenarrangedthroughanintermediaryacommissionispayablebyUstothemforarrangingtheinsurance.


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Words with special meaningAgreed Value meanstheamountspecifiedintheScheduleasthevalueoftheVessel(s)insuredThisamountisagreedbybothYouandUsinwritingandvaliduntilthenextrenewaldate.IfYouobtainanAgreedValuePolicyratherthanaMarketValuePolicy,intheeventofatotalorconstructivetotallossWewillpayYouuptotheamountWeagreewithYouforYourVessel.

Crew meansanypersonincludingtheskipperworkingonboardtheVesselasanemployee.

Damage meansanyformofphysicalharmtotheVessel.

Deductible/Excess meanstheamountpayablebyYouforeachandeverylossrecoverableunderthisPolicyasspecifiedintheSchedule,thisPolicyoranyEndorsementtothisPolicywhichWewilldeductfromtheclaimsettlement.WhereanExcessisexpressedasaspecifiedsumitmeanstheamountspecified.WheretheExcessisexpressedasapercentageitmeansthemonetaryequivalentofsuchpercentageofeachloss.Whereaclaimismadeinrespectofmorethanoneoccurrence,theExcesswillapplyasthoughaclaimwasmadeforeachseparateoccurrence.

Diving Equipment meansmasks,snorkels,tanks,regulators,buoyancycompensationdevice,finsandflippers,wetanddrysuits,pumps,compressorsandothersimilarequipmentusedforthepurposeofrecreational/sportdivingownedbyYou.

Equipment and Accessories meansitemsmanufacturedandintendedforuseonYourVesselwhichareportableornotpermanentlyattachedtotheHull.

Equipmentincludes:equipmentfittedorcarriedontheVesselinaccordancewithstatutory/safetyrequirementsand/orasusedwiththenavigationandoperationoftheVesselincluding:

• lifesavingequipment;

• autopilot;

• navigationequipment;

• depthsounders;

• globalpositioningsystem;

• marineradios/transceivers;

• Tools;

butexcludingSports,FishingorDivingEquipmentunlessagreedandspecifiedintheSchedule.

Accessoriesincludes:

• anchors;

• batteries;

• paddlesandoars;

• portablefuelcontainers;

• Vesselcoversandcanopies.

PersonalEffects/PropertyasdefinedbelowareexcludedfromthisdefinitionofEquipmentandAccessories.

Endorsement meansdocumentaryevidenceofanamendmenttothisPolicyortheSchedulewhichformspartofthePolicy.

Fishing Equipment meansrods,reels,tackleandothersimilarequipmentusedforthepurposeofrecreational/sportfishingownedbyYou.

Geographical Area/Limits meansthegeographicalareaofoperationspecifiedintheSchedule,butunlessotherwiseagreedandspecifiedinthePolicySchedulenotexceedingthelesserof:

• thoselimitsasdefinedinYourlicencetooperate;

• 250nauticalmilesofftheAustralianmainlandandTasmania.

Hull meansthestructureoftheVesselincludingdeck(s),cabin(s),superstructure,fixturesandfittingsthatarenotnormallyremovableandnormallysoldwiththeHullincludingitsMotor(s)/MachineryandEquipmentandAccessories.

Insured Event meansaneventorcauseoflossspecifiedinthePolicyand/orInstituteClausesspecifiedintheSchedule,forwhichWeareprovidingcover.

Institute Clauses meansthestandardwordingsaspreparedbytheLloyd’sMarketAssociationandInternationalUnderwritingAssociationofLondon.AnyInstituteClausesreferredtointhePolicyortheScheduleoranyotherdocumentaredeemedtobethosemostcurrentatthetimeofattachmentoftheriskandareamendedtobesubjecttoAustralianlawandpractice.Intheeventofanyoftheseclausesbeingalteredoraddedto,newclausesshallautomaticallyformpartofthisPolicy,unlessthealterationoradditionreducesYourcoverinwhichcaseYoushallbeadvisedinwriting.

Insured Value meanstheamountspecifiedinthemostrecentlydatedScheduleasbeingthevalueoftheVessel(s)insured.

Latent Defect meansanyflawinthematerialusedintheconstructionoftheHullandsuperstructure,Motor(s)/Machinery,sails,masts,spars,standingandrunningriggingoftheVesselthatisnotknowntoYouandisnotdiscoverablebyacompetenttradespersoncarryingoutanormalinspection.

Legal Liability/Legally Liable meansYourresponsibilityinlawarisingoutoftheuseoftheVesseltopaycompensationfordeathorinjuryorforDamagetothepropertyofotherpeople,excludinganypropertyownedbyorinYourphysicalorlegalcontrol.


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Limit of Indemnity meansthemonetarylimitsspecifiedintheScheduleforDamagetotheVessel.TheLimitofIndemnityisinclusiveofandnotadditionaltoanyapplicableDeductible.

Limit of Liability meanstheamountstatedintheScheduleasapplicabletoLegalLiability(P&I)cover.ThisisthemaximumamountWewillpayforanyonelossorseriesoflossesarisingfromtheoneeventforallLegalLiabilitydirectlyorindirectly.

Market Value meansthesalevalueoftheVesselimmediatelypriortotheclaimedlossorDamagetakingintoaccounttheconditionandlocationoftheVessel.IfYouobtainaMarketValuePolicyWewillpayYouuptoOurassessmentofthesalevalueofYourVessel.YourVesselisinsuredonaMarketValuebasisunlessWehaveagreedtoinsureitforAgreedValue.

Motor(s)/Machinery meansinboardand/oroutboardmotors,sterndriveunits,jetunits,gearboxes,propellers,shafts,skegs,fueltanksandlines,wiringharnessandinstruments,fixedgeneratorsandrefrigerationmachineryincludingancillariesnecessaryfortheoperationoftherefrigerationmachinery.

Period of Insurance meanstheperiodcommencingontheeffectivedateandendingat4pmintheStateorTerritoryofAustraliainwhichthePolicyisissuedontheexpirydateasshowninthemostrecentlydatedSchedule.

Personal Effects/Property meansclothingandpersonalaccessories,waterproofgear,shoes,hygieneitems,foodanddrinkanditscontainers(includingthermosflasks,eskiesandmobilefridges),camerasandpersonalentertainmentequipment(e.g.DVD/CDplayers,iPodsorMP3players).

PersonalEffects/Propertydoesnotinclude:moneyoranynegotiabledocuments/documentsthatrepresentmoney,creditcards,watchesandjewellery,spectacles,sunglasses,mobilephones,pagers,laptopcomputersorPDAs/tablets,mobileGPSunits,compactdiscs,audioorvideotapes,preciousmetalsorstones.

Policy meansthisdocumentandanyEndorsement,theInstituteClauses,oranyotherclausesand/orWarranties,specification,attachmentormemorandaaffixedtoit,theScheduleandtheProposal.

Premium meansthePremiumspecifiedinthecurrentScheduleandanyEndorsementPremiumplusanyapplicablegovernmentcharges.

Proposal meanstheapplicationformcompletedbyYouorthequotationslipsubmittedonYourbehalfinwhichYourovidedtheinformationuponwhichWereliedtoenterintothePolicy.

Salvage hasadualmeaningwhichiseitherwhatisleftoftheVesselafterithassufferedlossorDamage,orthephysicalactofrecoveringaVesselwhichhasbeenlostorDamaged,butwhereithasaresidualcommercialvalue.SalvagecostsarethecostsassociatedwithrecoveringtheVessel(Salvageoperations).

Schedule meansthemostrecentlydatedscheduleWehaveprovidedtoYouwhichspecifiesimportantinformationsuchasthePolicynumber,GeographicalAreaofoperations,thedetailsoftheHull(s),theInsuredValue,theInstituteClausesandoranyotherclauses,Warranty(ies)(ifapplicable)andanyDeductiblepayable.

Seaworthy meanstheVesselisreasonablyfitinallrespects,includingtheHull,Motor(s)/Machinery,EquipmentandAccessoriesduringoperationoratmooringtoencountertheordinaryperilsoftheprotectedwaters,inlandwaters,riversorlakes,theseaandportsinwhichitwillbeoperating.

Sports Equipment meanswater-skiingandaquaplaningtogetherwithassociatedequipment.

Tender meansanauxiliaryboatordinghy(includingMotor)whichiscarriedondeckortowedbehindYourVesselthatisusedasalifeboatorbywayoftransportationtoYourVessel,excludingpersonalwatercraft(jetskis)unlessagreedandextendedinwriting.

Tools meanstoolskeptpermanentlyonYourVesselforemergency,breakdownandmaintenancepurposes.

Trailer meanstheTrailernotedascoveredintheScheduleanditswinchincludingpowerwinch

Usage meansthecommercialoperationswhichtheVesselisnormallyengaged,asYouhavedeclaredtoUs.ThisautomaticallyincludesvoluntaryrescueworkandincidentalprivateusebyYouorYourauthorisedemployees.

RegardlessofdeclaredUsage,WedonotcoverYouunderthisPolicyinrespectofanyliabilityassociatedwithbusinessactivitiesotherthantheoperationoftheVesselitselfincluding:

• Anyunderwateractivity(diving);

• Anyconstructionactivity(e.g.piledriving/dredging);

• Sportsparticipation(skiing,aquaplaningetc)ortouristinwateractivities.

Vessel meansthecraft/vesselsnamedintheScheduleandincludes:

• Hull,MotorsandMachinery;

• EquipmentandAccessories(excludingSports,FishingandDivingEquipment,unlessagreedandspecifiedintheSchedule);

• sails,masts,spars,boomsandfittings,standingandrunningrigging,whereapplicable;


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CoverWe agree to provide You with insurance as described in this Policy and/or the most recently dated Schedule, for the Period of Insurance and any subsequent period where renewal may be agreed, based on the information provided to Us by You or on Your behalf.

This insurance provides coverage in accordance with the terms and conditions of the Policy including any Institute Clauses referenced in the Schedule whilst the Hull(s) is operating within the Geographical Area of operations shown in the Schedule, plus the following, as applicable.

Deliberate DamageThePolicyisextendedtocoverYoufordeliberateDamagebyFederal,StateorLocalauthoritiesexercisingtheirrightsundercurrentlegislationinordertopreventorminimiseanenvironmentalhazard/pollutionresultingfromanInsuredEventprovidedthishasnotresultedfromlackofduediligencebyYou,ownersormanagers.

Fixed Fire Appliance Discharge ClauseThePolicyisextendedtocovercleanupcostsupto$5,000eachclaimanyoneaccidentoroccurrenceduringthecurrencyofthePolicyarisingfromand/orlossorDamagecausedbysudden,spontaneousandcompletedischargeofanypermanentlyfixedfiresuppressionappliancefittedonboardtheVessel(s)intheabsenceofanyfire,explosionorothereventdeemedtobeafireappliancesystemtrigger,butexcludingwherethefiresuppressionapplianceisbeingtested,fitted,maintained,rechargedorotherwiseinuseorbeingworkedupon.

Fishing/Sports EquipmentWhenspecifiedintheSchedule,thisPolicyisextendedtoindemnifyYoufor:

a) accidentalDamagetoYourSports,FishingandDivingEquipmentwhilstonYourVessel(excludingaccidentalDamageoccurringduringuse);and

b) theftofYourSports,FishingandDivingEquipmentprovidedthereisvisibleevidenceofforcibleandviolententryintothesecurelylockedVesselorasecurelylockedcompartmentwithintheVesselinwhichtheSports,FishingandDivingEquipmentisstored;

occurringduringthePeriodofInsurance.

ThemaximumamountWewillpayisthe$25,000intotalwithalimitof$2,500foranyoneitem.

• Trailer(ifspecificallynotedascoveredontheSchedule);

• Tenderorlifeboats(uptoamaximumdesignedspeednotexceeding50knots).

InthecaseoftwoormorecraftbeingnamedintheSchedule,eachcraftisdeemedtobeseparatelyinsured.

Warranty(ies) meansYouwillundertakethatsomeparticularthingshallorshallnotbedoneorthatsomeconditionsshallbefulfilledorthatYouaffirmornegativetheexistenceofaparticularstateoffacts.TheWarrantymaybeexpressorimplied.

We, UsorOur,Insurer,UnderwritermeanstheInsurerAllianzAustraliaInsuranceLimited(Allianz)AFSLicenceNo.234708ABN15000122850of2MarketStreet,Sydney,NSW,2000throughitsagentAllianzMarine&TransitUnderwritingAgencyPtyLimited.

You orYour, InsuredmeansanypartyspecifiedintheSchedule.

WheretheInsurediscomprisedofmorethanoneentity,theterm“You”willbeconsideredasapplyingtoeachentityinthesamemannerasthoughaseparatePolicyhadbeenissuedtoeachentity,however,OurLimitOfLiabilityshallnotexceedtheSumInsuredspecifiedintheScheduleandOurliabilitytomakesupplementarypaymentswillapplyasthoughtherewerenotseparatepoliciesissuedtoeachentity.


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Leased Equipment Clause (excluding Fishing, Diving and Recreational Equipment)ThisinsuranceisextendedtocoverEquipment,machineryandapparatusnotownedbyYoubutinstalledforuseontheVesselandforwhichYouhaveassumedliabilitybutOurliabilityunderthisPolicywillnotexceedthecontractualliabilityYouhaveforsuchequipment,machineryorapparatus.AllEquipment,machineryorapparatusinstalledontheVesselandnotownedbyYoushallbeincludedintheSumInsuredoftheVessel(s).

Negligent/wrongful act by Hirers/CharterersProvidedthelossorDamagehasnotresultedfromlackofduediligencebyYouortheVesselownersormanagers,Wewillcoverthewrongfulactormisconductofahirer,chartererormemberofamanagedrecreationalboatinggroupwhoisusingtheVessel,provided:

• Youdonotrevealtheexistenceofthisadditionalbenefittocharterers/hirers;

• YouassistUsinallrespectstopursuerightsofrecoveryagainstcharterers/hirersand/orotherresponsiblethirdparties.

Passenger Liability ExtensionWherenotedintheSchedule,WeagreetoindemnifyYouuptotheLimitofLiabilityspecifiedforanysumorsumswhichYoushallbecomeLegallyLiabletopaytopassengerspursuanttotheInstituteClauseslistedinthePolicyScheduleincludingpassengers’baggageandpassengers’PersonalEffectsbutexcludinganyliability,costsorexpensearisinginrespectof:

(i) instruction,adviceorrecommendationofanykindwhatsoevergiventoortasksundertakenbypassenger(s)undergoingtrainingforanyactivity,includingbutnotlimitedtosailingandseamanship;

(ii) passengersengagedindiving,swimming,snorkelling,water-skiing,boomnetting,para-sailingoranyotheraquasportorlandactivityunlesscausedbysuchpassenger(s)beingrundownbytheVessel(s);

(iii)instruction,adviceorrecommendationofanykindwhatsoevergiventoorcausedbytheuseofEquipmentorAccessorieswhilstthePassenger(s)is/areparticipatingindiving,swimming,snorkelling,water-skiing,boomnetting,para-sailingoranyotheraquasportorlandactivity.

Personal and Crew propertyIfaclaimispaidunderthisPolicyforlossorDamagetoYourVessel,WewillalsocoverYouforlossorDamagetoYourPersonalPropertyorPersonalPropertybelongingtoYourCrewwhichwason-boardYourVesselatthetimeofsuchloss.Wewillpayupto$1,000foreachclaimantuptoamaximumof$5,000intheaggregate,eachandeverylossorseriesoflossescausedbytheoneInsuredEventinadditiontotheSumInsuredspecifiedintheSchedule.

Shore CoverWewillcoverlossorDamagetopartsoftheVesselremovedforthepurposesofrepair,overhaulorservicingwhilsttheyareashoreandduringtransitfromandtotheVesselforthatpurpose.

Transit CoverWewillcoverAccidentalDamagetoYourVessel:

• whilstintransitontheVessel’sownTrailerprovidedtheVesselisdesignedtobenormallytraileredandYoucomplywithallstatutoryrequirements;or

• whilstbeingtransportedbyaprofessionalroadhaulierprovidingYouhaveadvisedUsbeforehandandWehaveagreedtoextendthecoverinwriting.WemayrequireavariationtoYourstandardExcessandanadditionalPremium.

ThisextensiondoesnotprovidecoverforanyliabilitytothirdpartiesarisingfromthelandtransportoftheVessel.


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Radioactive, nuclear, asbestos5. thisPolicyexcludesanyloss,Damage,destruction,

death,injury,illness,liability,costorexpenseofanynaturewhatsoeverthatisdirectlyorindirectlycausedbyorcontributedtoorby,resultingfrom,arisingoutoforinconnectionwithfromanyofthefollowing:

(i) ionisingradiationsfromorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwasteorfromthecombustionofnuclearfuel;

(ii) theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanynuclearinstallation,reactororothernuclearassemblyornuclearcomponentthereof;

(iii) anyweaponordeviceemployingatomicornuclearfissionand/orfusionorotherlikereactionorradioactiveforceormatter;

(iv) theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanyradioactivematter.Theexclusioninthisclause(iv)doesnotextendtoradioactiveisotopes,otherthannuclearfuel,whensuchisotopesarebeingprepared,carried,stored,orusedforcommercial,agricultural,medical,scientificorothersimilarpeacefulpurposes;

(v) anychemical,biological,bio-chemicalorelectromagneticweapon;

(vi) anyactualorallegedliabilitywhatsoeverforanyclaimorclaimsinrespectoflossorlossesdirectlyorindirectlyarisingoutof,resultingfromorinconsequenceof,orinanywayinvolving,asbestos,oranymaterialscontainingasbestosinwhateverformorquantity.

ThisPolicyalsoexcludesanyloss,Damage,destruction,death,injury,illness,liability,costorexpenseofanynaturewhatsoeverthatisdirectlyorindirectlycausedbyorcontributedtoorby,resultingfrom,arisingoutoforinconnectionwithanyactiontakenincontrolling,preventing,suppressing,retaliatingagainst,orrespondingtoorinanywayrelatingtoexclusionsi)tovi).

Cyber6. liabilityorexpensedirectlyorindirectlycausedbyor

contributedtobyorarisingfromtheuseoroperation,asameansforinflictingharm,ofanycomputer,computersystem,computersoftwareprogramme,maliciouscode,computervirusorprocessoranyotherelectronicsystem.However,inrespectofwarperilscoveredbythePolicy,thisexclusiondoesnotapplytotheuseofanycomputer,computersystemorcomputersoftwareprogrammeoranyotherelectronic

General exclusionsThe exclusions contained within the Institute Clauses described in the Schedule and forming part of this Policy shall be paramount where they conflict with any terms contained in this exclusion section of the Policy.

ThisPolicydoesnotcoveranyloss,Damage,destruction,liability,costorexpenseofanynaturewhatsoeverthatisdirectlyorindirectlycausedbyorcontributedtobyorarisingfromwhen:

Outside agreed limits1. YourVesselisoutsidetheGeographicalAreaspecified

intheScheduleunlessYouhaveadvisedUsandWehaveagreedtoextendcoverinwriting.ThisexclusionwillnotapplywhereYourVesselgoesbeyondtheGeographicalAreaspecifiedintheSchedule:

• asaresultofcircumstancesbeyondthereasonablecontrolofthepersoninchargeorcontrolofit;or

• toreasonablyrespondtoanunforeseenemergency.

Wewillcontinuetoprovidecover,providedthatassoonaspossible:

• YourVesselreturnswithintheGeographicLimits(exceptinthecaseofTotalLoss);and

• YounotifyUsofthecircumstancestakingitbeyondtheGeographicLimits.

YourPolicywillbeautomaticallysuspendedwhenYourVesselclearsAustralianorNewZealandCustomsandImmigrationforthepurposeofleavingAustralianorNewZealandwatersandwillrecommencewhenitclearsAustralianorNewZealandCustomsandImmigrationonreturn(unlessYouadviseUsandWeagreetoextendcoverinwriting).

Usage2. YourVesseloperationsaremateriallydifferenttothose

originallydeclaredtoUsunlessWehaveagreedtoextendcovertosuchoperations;

3. YourVesselistowinganotherVessel(s)forhireorreward,unlessthecircumstancesweredeclaredtoandagreedbyUs;

Major repairs4. YourVesselisundergoingmajorHullrepairor

undergoingalterationtotheHullunlessYoutellUsbeforehandinwritingandWeagreeinwritingtoinsureYou;


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systeminthelaunchand/orguidancesystemand/orfiringmechanismofanyweaponormissile.

Terrorism7. anyactofterrorismarisingdirectlyorindirectlyout

oforinanywayconnectedwithbiological,chemical,radioactive,ornuclearpollutionorcontaminationorexplosion;or

8. anyactioncontrolling,preventing,suppressing,retaliatingagainstorrespondingtoanyactreferredtoin7.above.

Anactofterrorismincludes,butisnotlimitedto,anyact,preparationinrespectofactionorthreatofaction,designedto:

(i) influenceagovernmentoranypoliticaldivisionwithinitforanypurpose;and/or

(ii) influenceorintimidatethepublicoranysectionofthepublicwiththeintentionofadvancingapolitical,religious,ideologicalorsimilarpurpose.

Property (physical Damage) exclusionsWewillnotcoverYoufor:

Undeclared risks

a) anyVesselsnotlistedontheSchedule;

b) lossorDamagetoSports,Fishing,DivingEquipment,(unlessagreedandspecifiedintheSchedule);

Vessel Condition

c) pre-existingDamage(i.e.occurringpriortocommencementofthisPolicy);

d) lossorDamagecausedbytheVesselbeingUnseaworthyorarisingfromlackofmaintenance;

e) anyreductioninvalueofYourVesselduetotheVessel’sage,conditionorbecauseofrepairsorunrepairedDamage;

Consequential Loss

f) delay,lossofmarket,financialorconsequentiallossoranyothersecondaryfinanciallossofanydescriptionsustainedbyYou;

g) emotional,psychologicalorsentimentallosswhichoccursduetolossorDamagesustainedtoYourVessel.

h) LossofdatafromanycomputerhardwareorsoftwareunlessthereisvisibleexternalphysicalDamage;

Other

i) thecostofimprovingoralteringtheVessel;

j) theftbyapersonYouhavepermittedtouseYourVessel;

k) lossorDamagetosailsandprotectivecoverscausedbythewindwhilesetunlesstherehasalsobeenDamagetothemastsandsparsortheVesselhasbeenstrandedorincollisionorcontactwithanyexternalsubstanceotherthanwater;

Liability (P&I Liability) exclusionsWewillnotcoveranyLegalLiabilityfor:

Crew, employees and family membersa) deathorbodilyinjurytoYouorYourCrew;

b) lossorDamagetopropertyownedbyYouorYourCreworinYour/theirphysicalorlegalcontrolexceptasprovidedunderthePersonalandCrewpropertyextensiononpage10;

c) bodilyinjuryto,ortheillnessordeathof,apersonwhoiscoveredorshouldhavebeencoveredbyanycompulsorycompensationinsurance,includinganycompulsorythirdpartyinsuranceandworkerscompensationinsurance;

Other excluded partiesd) thirdpartypersonalinjuryorpropertyDamagecaused

anytradespersonorcompanyengagedinrepair,serviceormaintenanceofYourVessel;

e) thirdpartypersonalinjuryorpropertyDamagecausedbymarinaoperators,portauthoritiesandthelikeinchargeofYourVesselatthetimeoftheaccident;

f) deathorbodilyinjurytopassengers,passengers’baggageand/orpassengers’PersonalEffectsunlessthePassengerLiabilityExtensionandtheLimitofLiabilityareshowninthePolicySchedule;

Motor vehicle/towing risksg) death,bodilyinjuryorDamageoccurringtoproperty

whiletheVesselisattachedto,oritbreaksawayfromoraccidentallydetachesfromamotorvehicle;

Contractual Liabilityh) acontractthatimposesonYoualiabilitywhichYou

wouldnototherwisehaveunlessthishasbeendeclaredtoUsandWehavespecificallyagreedtoextendcoverforliabilityunderthatcontract;

Fines, penalties etci) anyfineorpenalty,aggravated,exemplaryorpunitive

damages;

Otheri) thecarryingorpassingonofanyinfectiousdiseaseor

virusbyYou,whetheraccidentally,knowingly,wilfully,maliciouslyorotherwiseincludinganylossescausedbyquarantinablediseaselistedintheAustralianQuarantineAct1908orsimilar;

j) underwaterexcavationorconstructionincludingthelifting,cutting,drilling,crushingordepositingofspoiling,orpiledriving.


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Cross LiabilityWhereYouarecomprisedofmorethanoneentity,theterm“You”willbeapplytoeachentityinthesamemannerasthoughaseparatePolicyhadbeenissuedtoeachentity,however,OurLimitofIndemnityshallnotexceedthesumspecifiedintheScheduleandOurliabilitytomakesupplementarypaymentswillapplyasthoughtherewerenotseparatepoliciesissuedtoeachentity.

Due CareAtalltimesYoumusttakeappropriatecareinYourVesseloperationsandtheoperationandmaintenanceoftheVessel(s)inYourcare,custodyorcontrol.

Fraudulent claimsInnocaseshallthisPolicycoverphysicalloss,destruction,deterioration,DamageorexpenseoccasionedbyorhappeningthroughfraudulentordishonestactsbyYouoranyotherpartywithYourknowledge.Wemayrefusetopaythewholeorpartoftheclaimandtotheextentpermittedbylaw,mayalsocancelthePolicy.

GST noticeThisPolicyhasaGSTprovisioninrelationtoPremiumandOurpaymenttoYouforclaims.ItmayhaveanimpactonhowYoudeterminetheamountofinsuranceYouneed.Pleasereaditcarefully.SeekprofessionaladviceifYouhaveanyqueriesaboutGSTandYourinsurance.

Limit of Indemnity

AllmonetarylimitsinthisPolicymaybeincreasedforGSTinsomecircumstances(seebelow).

Claim settlements – Where We agree to payWhenWecalculatetheamountWewillpay,WewillatYourrequesteitherpayYouoranyotherpartyagreedwithYouandWewillhaveregardtotheitemsbelow:

• WhereYouareliabletopayanamountforGSTinrespectofanacquisitionrelevanttoYourclaim(suchasservicestorepairaDamagediteminsuredunderthePolicy)WewillpayfortheGSTamount.

WewillpaytheGSTamountinadditiontotheLimitofIndemnityorotherlimitsshowninthePolicyorinYourSchedule.

IfYourLimitofIndemnityisnotsufficienttocoverYourloss,WewillonlypaytheGSTamountthatrelatestoOursettlementofYourclaim.

WewillreducetheGSTamountWepayforbytheamountofanyinputtaxcreditstowhichYouareorwouldbeentitled.

General conditionsApplicable lawThisPolicyisgovernedbyandshallbeconstruedinaccordancewiththelawsofAustralia.AnydisputerelatingtothePolicyshallbesubmittedtotheexclusivejurisdictionofacompetentCourtwithintheStateorTerritoryofAustraliainwhichthePolicywasissued.

Automatic Reinstatement ClauseWhenWepayaclaimunderthisPolicy,theLimitofIndemnitywillbeautomaticallyreinstatedsubjecttothepaymentofanadditionalPremiumandgovernmentcharges(whereapplicable).

Alteration of riskYoumustgiveUsimmediatenoticeinwritingifthereisanymaterialchangeinthecircumstancesornatureoftheriskscoveredbythisPolicy,ornoclaimarisingafterthechangeshallbepayableunlessWehaveagreedtothechangeinwriting.

AuthorityWemaygivetoandobtainfromanyotherinsurers,insurancereferencebureausandcreditreportingagenciesanyinformationrelatingtoYourcreditorinsurancehistoryaswellasinsuranceclaimsinformation.

Breach of Condition or WarrantyWhere the Insurance Contracts Act 1984 applies

ThelawgivesUsanumberofrightsifYoudonotcomplywiththeconditionsofthisPolicy.InparticularcasesWemaybeableto:

• cancelthePolicy;

• avoidthePolicyfromthecommencementdateofthePeriodofInsurance;

• refusetopayaclaim;

• reducetheamounttobepaidoutonaclaim.

Where the Marine Insurance Act 1909 applies

Warrantiesareconditionswhichmustbeexactlycompliedwith,whethermaterialtotheriskornot.UndertheMarineInsuranceAct1909,whereapplicable,iftheyarenotcompliedwith,then,subjecttoanyexpressprovisionsinthePolicy,WearedischargedfromliabilityasfromthedateofthebreachoftheWarranty,butwithoutprejudicetoanyliabilityincurredbyUsbeforethatdate.


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• WhereWemakeapaymentunderthePolicyascompensationinsteadofpaymentforarelevantacquisition,WewillreducetheamountofthepaymentbytheamountofanyinputtaxcreditthatYouwouldhavebeenentitledtohadthepaymentbeenappliedtoarelevantacquisition.

Disclosure – Input tax credit entitlementIfYouregister,orareregistered,forGSTYouarerequiredtotellUsYourentitlementtoaninputtaxcreditonYourPremium.IfYoufailtodiscloseorunderstateYourentitlement,YoumaybeliableforGSTonaclaimWemaypay.ThePolicydoesnotcoverYouforthisGSTliability,orforanyfine,penaltyorchargeforwhichYoumaybeliable.

Licensing/Registration WarrantyYoumust:

a) complyatalltimeswiththelicensingandregistrationrequirementsofthegoverninglegislationforthecrewing,operationandsafetyoftheVesselaccordingtothetypeandclassofoperationandensurethatitstypeandclassaremaintained;

b) ensuretheVesselisoperatedbyamaster(oranyotherpersoninchargeoftheVessel)whoistheholderofacertificateofcompetencyissuedbytheappropriategovernmentalauthority;

c) obeyanyconditionsattachingorimposedbytheregistrationoftheVesselandensuretheseconditionsarecompliedwithbythedatesstipulatedinthoseconditions.

NoliabilityshallattachtoUswhentheVesselatthetimeofanAccidentdoesnothaveacurrentcertificateofseaworthinessissuedbytheappropriategovernmentauthorityattheportofregistrywherethisisastatutoryrequirement.

Other insuranceIfatthetimeofthelossanotherpolicyisinforcecoveringthesamerisk,Wewillonlypaytheamountinexcessoftheamountthatisrecoveredunderthatotherpolicy,limitedtotheAgreedValue.

Prohibited cover or paymentsIrrespectiveofanyotherprovisionofthePolicy,Weshallnotbedeemedtoprovidecoverorbeliabletopayanyclaimorprovideanybenefit(includingarefundaPremium)hereundertotheextentthattheprovisionofsuchcover,paymentofsuchclaimorprovisionofsuchbenefitwouldcontraveneorotherwiseexposeUstoanypenalty,sanction,prohibitionorrestrictionunderUnitedNationsresolutionsorthetradeoreconomicsanctions,lawsorregulationsofAustralia,NewZealand,theEuropeanUnion,UnitedKingdomorUnitedStatesofAmerica.

Third party interestsYoumustinformUsoftheinterestsofallthirdparties(e.g.financiersorlessors)tobecoveredbythisPolicy.WeprotecttheinterestsofthirdpartiesonlyifYouhaveinformedUsofthemandsuchinterest(s)arenotedinthe≈Schedule.

UnderinsuranceWerequireYoutoinsuretheVesselforthefullvalue.IfYoudonotandtheactualvalueoftheVesselorEquipmentinsuredunderthisPolicyishigherthantheSumInsuredintheSchedule(atthetimeoflossorDamage),WeshallonlypayYoutheproportionalamountthatthetotalvalueofthelossbearstotheSumInsuredspecifiedintheSchedulewording.

Waiver of subrogation rightsWemaynotbeliabletopayanybenefitsunderthisPolicyforlossorDamageifYouagreeorhaveagreedtolimitorexcludeanyrightofrecoveryagainstanythirdpartywhowouldbeliabletocompensateYouwithrespecttothatDamage.


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(iv) WehavetherighttorecoverfromanypersonagainstwhomYoumaybeabletoclaimanymoneypaidbyUs.Wemaytakeoverandconduct,inYournamethedefenceorsettlementofanyclaimandWewillhavefulldiscretionintheconductofanyproceedingsinconnectionwiththeclaim.

How much We payLoss or Damage to Your Vessel

IntheeventofatotalorconstructivetotallossofYourVessel,theamountWewillpaywilldependonwhetherWehaveagreedtoinsureYourVesselforMarketValueorAgreedValue.

• WhereYouhaveinsuredYourVesselonaMarketValuebasis,WewillatOuroption:

(i) repairorreplaceYourVessel;or

(ii) payYouthereasonablecostofrepairingorreplacingYourVessel;or

(iii) payYouuptotheMarketValueofYourVessel.

• WhereYouhaverequestedandWehaveagreedtoinsureYourVesselforAgreedValue,WewillpayYouoranyotherpartyagreedwithYou,atOuroption:

(i) theAgreedValuespecifiedintheSchedule;or

(ii) replacetheVesselwithoneofsimilarageandcondition.

OnceWepayYou,WemaydecidetotakeownershipofanySalvage.

WewillsettleclaimsforpartiallossinaccordancewiththeInstituteClausesspecifiedintheSchedule.

Deductible

TheamountspecifiedintheScheduleastheDeductiblewillbedeductedfromeachandeverylossexceptfortotaland/orConstructiveTotalLossoftheVessel.

ClaimsTheseproceduresareimportant.FailuretofollowthemmightjeopardiseaclaimunderthisPolicy.

NotificationA. YouMUST:

AssoonasYoubecomeawareofany,oranypotentiallossorDamagewhichmayresultinaclaimunderthePolicy,atYourownexpenseactasifYouarenotinsured.Youmust:

(i) takeallmeasuresasmaybereasonableforthepurposeofavertingorminimisinglossorDamagethatwouldbecoveredunderthisPolicy.

WewillreimburseYouforanychargesproperlyandreasonablyincurredinpursuanceoftheseduties;

(ii) immediatelyadviseUsofthelossorDamage.WemaydecidetoappointasurveyororanassessortoinspecttheDamagetodeterminethecause,andwhomightberesponsibleforit.Youshouldco-operatewiththesurveyorfullyasthiswillassistwiththespeedyadjustmentofYourclaim;

(iii) completeOurclaimformifWeaskYouto,andanyotherformandtakeitormailittoOurclaimsdepartmentatanyofOuroffices.

MeasurestakenbyYouorUswiththeobjectofsaving,protectingorrecoveringtheHullinsuredshallnotbeconsideredasawaiveroracceptanceofabandonmentorotherwiseprejudicetherightsofanyparty.

B. YouMUSTNOT:

(i) authorisetherepairorreplacementofanythingwithoutOuragreement;

(ii) releaseanyotherthirdpartyfromliability;

(iii) withoutOurconsent:

• makeoracceptanyofferorpayment,orinanytherwayadmitYouareliable,or

• settleorattempttosettleanyclaim,or

• defendanyclaim.

C. AfterYouhaveadvisedUsofanylossoforDamagetotheVessel:

(i) YoumustcomplywithallPolicytermsandconditionsbeforeWewillmeetanyclaimunderthePolicy;

(ii) onlyWehavetherighttosettleordefendaclaimagainstYoubyanotherparty;

(iii) whenanyotherthirdpartymaybeliable,YoumustadvisethatpartyinwritingthatitisYourintentiontoclaimonthem;


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Thispagehasbeenleftblankintentionally.


For all enquiries please call your insurance intermediary

allianzmarineandtransit.com.au

Allianz Marine & Transit Underwriting Agency Pty Limited AFS Representative No. 423910 ABN 98 155 554 279 Level 1, 61 Lavender Street, Milsons Point NSW 2061 as agents of the insurer Allianz Australia Insurance Limited AFS Licence No. 234708 ABN 15 000 122 850 PO

L309

BA/A

M&

T 03

/15


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