Contractual indemnities

• American Club 2011-2012 Rule Book, Class I, Rule 3, Section 2(8)
excludes cover for: “There shall be no right of recovery from the
Association in respect of . . . liabilities, costs and expenses which
would not have arisen but for the terms of a contract or indemnity
entered into by a Member, unless those terms have been expressly
approved in writing by the Managers.”
• Poolability of major incidents is prejudiced under the IG Pooling
Agreement which excludes liabilities, costs or expenses stemming
– Contractual indemnities where owner assumes responsibility for
liability that it would not otherwise be liable
– “Knock for Knock” provisions are acceptable so long as vessel
owner’s rights to limit liability have not been waived
• Efforts have been made with PSC community to agree on a
standardized services contract but this is still in draft form – MARSEC
2011 form contract being reviewed by IG Maritime Security