The insurer is liable for any general average contribution apportioned on the interest insured. The hull insurer is also liable for general average contributions apportioned on freight or charterparty hire, provided that the assured is also the owner of this interest. The contribution is recoverable in accordance with a general average adjustment, duly drawn up according to applicable rules of law or such terms of contract as must be considered customary in the trade in question. The contribution is recoverable in accordance with the adjustment, even if the contributory value exceeds the insurable value of the interest. The insurer is similarly liable for salvage awards, insofar as they are not recovered in general average. However, he is not liable for interest payable after the due date under Cl. 5-6 if it is recovered in the general average adjustment.
If the assured, as a result of a breach of the contract of affreightment, is precluded from claiming contributions from the other participants in the general average, the insurer shall cover the amount which, according to the rules of general average, falls on the interest insured.
If the assured chooses not to claim contributions from the other interests in the general average, the insurer is, at the assured's option, liable either:
- for any loss, damage, liability or costs which would have been recoverable in the general average up to the amount stipulated in the insurance contract, or
- for the ship's general average contributions.
The adjustment in accordance with the preceding sentence shall be based on the York-Antwerp Rules 1994, but Cl. 4-11, sub-clause 2, second sentence, shall apply correspondingly.