In the event of a total loss, the mortgagee's interests take priority.
Compensation for loss from a single casualty exceeding 5 % of the sum insured shall, in the absence of consent from the mortgagee, only be paid by the insurer upon presentation of a receipted invoice for repairs carried out.
If the ship is insured with two or more insurers against the same perils, this restriction applies to the combined payments from the insurers.
Compensation under Cl. 12-1, sub-clause 4, and Cl. 12-2, may not be paid without the consent of the mortgagee.
Compensation for loss of time may not be paid without the consent of the mortgagee who has a mortgage on the ship's freight income.
Liability to a third party which is covered by the insurance may only be settled upon presentation of a receipt from the third party.
In the absence of the mortgagee's consent, the insurer may only set off claims which have arisen out of the insurance contract relating to the ship in question and which have fallen due in the course of the last two years prior to the settlement of a claim.