ITC Clause


             Institute Time Clauses Hulls 1/11/95 Cl. 280 (ITC)

               (FOR USE ONLY WITH THE CURRENT MAR POLICY FORM)

            This insurance is subject to English law and practice

1. Navigation

1.1. The Vessel is covered subject to the provisions of  this  insurance  at
all times and has leave to sail or navigate with or without  pilots,  to  go
on trial trips and to assist and tow vessels or craft in  distress,  but  it
is warranted that the Vessel shall not be towed, except as is  customary  or
to the first safe port or place when in need  of  assistance,  or  undertake
towage or salvage services under  a  contract  previously  arranged  by  the
Assured and /or Owners and/or Managers and/or Charterers. This  Clause  1.1.
shall  not  exclude  customary  towage  in  connection  with   loading   and
discharging.

1.2. This insurance shall  not  be  prejudiced  by  reason  of  the  Assured
entering into any contract with pilots or for customary towage which  limits
or exempts the liability of the pilots and/or tugs  and/or  towboats  and/or
their owners when the Assured or their agents accept  or  are  compelled  to
accept such contracts in accordance with established local law or practice.

1.3.  The  practice  of  engaging  helicopters  for  the  transportation  of
personnel, supplies and equipment  to  and/or  from  the  Vessel  shall  not
prejudice this insurance.

1.4. In the event of the Vessel being employed  in  the  trading  operations
which entail cargo loading or  discharging  at  sea  from  or  onto  another
vessel (not being a harbour or inshore craft) no claim shall be  recoverable
under this insurance for loss of or damage to the  Vessel  or  liability  to
any other vessel  arising  from  such  loading  or  discharging  operations,
including  whilst  approaching,  lying   alongside   and   leaving,   unless
previously notice that the Vessel is to be employed in such  operations  has
been given to the Underwriters and  any  amended  terms  of  cover  and  any
additional premium required by them have been agreed.

1.5. In the event of the Vessel sailing (with or  without  cargo)  with  the
intention of being (a) broken up, or (b) sold for  breaking  up,  any  claim
for loss of or damage to the Vessel occurring  subsequent  to  such  sailing
shall be limited to the market value of the Vessel  as  scrap  at  the  time
when the loss or damage is sustained, unless previous notice has been  given
to the Underwriters and any amendments to the terms of cover, insured  value
and premium required by them have been agreed. Nothing in this  Clause  1.5.
shall affect claims under Clauses 8 and/or 10.

2. Continuation.

Should the Vessel at the expiration of this  insurance  be  at  sea  and  in
distress  or  missing,  she  shall,  provided  notice  be   given   to   the
Underwriters prior to the expiration of  this  insurance,  be  held  covered
until arrival at the next port  in  good  safety,  or  if  in  port  and  in
distress until the Vessel is made safe, at a pro rata monthly premium.



3. Breach of Warranty.

Held covered in  case  of  any  breach  of  warranty  as  to  cargo,  trade,
locality, towage, salvage services or date of sailing,  provided  notice  be
given to the Underwriters immediately  after  receipt  of  advices  and  any
amended terms of cover and  any  additional  premium  required  by  them  be
agreed.

4. Classification.

4.1. It is the duty of the Assured, Owners and Managers at the inception  of
and throughout the period of this insurance to ensure that

4.1.1. the Vessel is classed with a Classification  Society  agreed  by  the
underwriters and that her class within that Society is maintained,

4.1.2. and recommendations  requirements  or  restrictions  imposed  by  the
Vessels Classification Society which relate to the  Vessels  seaworthiness
or to her maintenance in a seaworthy condition  are  complied  with  by  the
dates required by that Society.

4.2. In the event of any breach of duties set  out  in  Clause  4.1.  above,
unless the Underwriters agree to the  contrary  in  writing,  they  will  be
discharged from their liability under this insurance as  from  the  date  of
the breach provided  that  if  the  Vessel  is  at  sea  at  such  date  the
Underwriters discharge from liability is  deferred  until  arrival  at  her
next port.

4.3. Any incident condition or damage  in  respect  of  which  the  Vessels
Classification Society might make recommendations as  to  repairs  or  other
action to be taken  by the Assured, Owners  or  Managers  must  be  promptly
reported to the Classification Society.

4.4. Should the Underwriters wish to  approach  the  Classification  Society
directly for information and/or documents., the  Assured  will  provide  the
necessary authorisation.

5. Termination.

This Clause 5 shall prevail notwithstanding any provisions  whether  written
typed or printed in this insurance inconsistent therewith.

Unless the Underwriters agree to the contrary  in  writing,  this  insurance
shall terminate automatically at the time of

5.1. change  of  the  Classification  Society  of  the  Vessel,  or  change,
suspension, discontinuance, withdrawal or expiry of her  Class  therein,  or
any of  the  Classification  Societys  periodic  surveys  becoming  overdue
unless an extension of time for such survey be agreed by the  Classification
Society, provided that if the Vessel is at sea  such  automatic  termination
shall be deferred until  arrival  at  her  next  port.  However  where  such
change, suspension, discontinuance or withdrawal of her  Class  or  where  a
periodic survey becoming overdue has resulted from loss  or  damage  covered
by Clause 6 of this insurance or which would be covered b  an  insurance  of
the Vessel subject to current Institute War  and  Strikes  Clauses  Hulls  -
Time such automatic termination shall only operate should  the  Vessel  sail
from her next port without the prior approval of the Classification  Society
or  in  the  case  of  a  periodic  survey  becoming  overdue  without   the
Classification Society having agreed an extension of time for such survey.

5.2. any change, voluntary or otherwise, in the ownership or flag,  transfer
to new management, or charter on a bareboat basis, or requisition for  title
or use of the Vessel, provided that, if the Vessel has cargo  on  board  and
has already sailed from her loading port or  is  at  sea  in  ballast,  such
automatic termination shall if  required  be  deferred,  whilst  the  Vessel
continues her planned voyage, until arrival at final port  of  discharge  if
with cargo or at port of destination if in ballast. However,  in  the  event
of requisition for title or use without the prior  execution  of  a  written
agreement by the Assured, such automatic  termination  shall  occur  fifteen
days after such requisition whether the Vessel is at sea or in port.

A pro rata daily net return of premium shall be made provided that  a  total
loss of the  Vessel,  whether  by  insured  perils  or  otherwise,  has  not
occurred during the period  covered  by  this  insurance  or  any  extension
thereof.

6. Perils.

6.1. This insurance covers loss of or damage to the  subject-matter  insured
caused by

6.1.1. perils of the sea rivers lakes or other navigable waters

6.1.2. fire, explosion

6.1.3. violent theft by persons from outside the Vessel

6.1.4. jettison

6.1.5. piracy

6.1.6.  contact  with  land  conveyance,  dock  or  harbour   equipment   or
installation

6.1.7. earthquake volcanic eruption or lightning

6.1.8. accident in loading discharging or shifting cargo or fuel

6.2. This insurance covers loss of or damage to the  subject-matter  insured
caused by

6.2.1. bursting of boilers breakage of shafts or any latent  defect  in  the
machinery or hull

6.2.2. negligence of Master Crew or Pilots

6.2.3. negligence of repairers or  charterers  provided  such  repairers  or
charterers are not an Assured hereunder

6.2.4. barratry of Master Officers or Crew

6.2.5. contact with aircraft, helicopters or  similar  objects,  or  objects
falling therefrom

provided that such loss  or  damage  has  not  resulted  from  want  of  due
diligence by the Assured, Owners, Managers  or  Superintendents  or  any  of
their onshore management.

6.3. Master Officers Crew or Pilots not to be considered Owners  within  the
meaning of this Clause 6 should they hold shares in the Vessel.

7. Pollution Hazard.

This insurance covers loss  of  or  damage  to  the  Vessel  caused  by  any
governmental authority acting under the powers vested in it  to  prevent  or
mitigate a  pollution  hazard  or  damage  to  the  environment,  or  threat
thereof, resulting  directly  from  damage  to  the  Vessel  for  which  the
Underwriters are liable under this insurance,  provided  that  such  act  of
governmental authority has not resulted from want of due  diligence  by  the
Assured, Owners or Managers to prevent or mitigate such  hazard  or  damage,
or threat thereof. Master Officers Crew  or  Pilots  not  to  be  considered
Owners within the meaning of this Clause 7 should they hold  shares  in  the
Vessel.

8. 3/4th Collision Liability.

8.1. The Underwriters agree to indemnify the  Assured  for  three-fourth  of
any sum or sums paid by the Assured  to  any  other  person  or  persons  by
reason of the Assured becoming legally liable by way of damages for

8.1.1. loss of or damage to any  other  vessel  or  property  on  any  other
vessel

8.1.2. delay to or loss of use of any such other vessel or property thereon

8.1.3. general average of, salvage of, or salvage  under  contract  of,  any
such other vessel or property thereon,

where such payment by the Assured is in consequence  of  the  Vessel  hereby
insured coming into collision with any other vessel.

8.2. The indemnity provided by this Clause 8 shall be  in  addition  to  the
indemnity provided by the other terms and conditions of this  insurance  and
shall be subject to the following provisions:

82.1. where the insured Vessel is in collision with another vessel and  both
vessels are to blame, then unless the  liability  of  one  or  both  vessels
becomes limited  by  law,  the  indemnity  under  this  Clause  8  shall  be
calculated on the  principle  of  cross-liabilities  as  if  the  respective
Owners had been compelled to pay to each  other  such  proportions  of  each
others damages as may  have  been  properly  allowed  in  ascertaining  the
balance of  sum  payable  by  or  to  the  Assured  in  consequence  of  the
collision,

8.2.2. in no case shall the  Underwriters  total  liability  under  Clauses
8.1. and 8.2. exceed  their  proportionate  part  of  three-fourths  of  the
insured value of the Vessel hereby insured in respect of any one collision.

8.3. The Underwriters  will  also  pay  three-fourths  of  the  legal  costs
incurred by the Assured or which the Assured may  be  compelled  to  pay  in
contesting liability or taking proceedings  to  limit  liability,  with  the
prior written consent of the Underwriters.
Exclusions

8.4. Provided always that this Clause 8 shall in no case extend to  any  sum
which the Assured shall pay for or in respect of

8.4.1. removal or disposal of obstructions, wrecks,  cargoes  or  any  other
thing whatsoever;

8.4.2. any real or  personal  property  or  thing  whatsoever  except  other
vessels or property on other vessels

8.4.3. the cargo or other property on, or the engagements  of,  the  insured
Vessel;

8.4.4. loss of life, personal injury or illness;

8.4.5. pollution or  contamination,  or  threat  thereof,  of  any  real  or
personal property or thing whatsoever (except other vessels with  which  the
insured Vessel is in collision or property on such other vessels) or  damage
to the environment, or threat thereof, save that this  exclusion  shall  not
extend to any sum which the Assured shall pay  for  or  in  respect  of  any
salvage remuneration in which the  skill  and  efforts  of  the  salvors  in
preventing or minimising  damage  to  the  environment  as  is  referred  to
Article 13 paragraph 1 (b) of the International Convention on Salvage,  1989
have been taken into account.

9. Sistership

Should the Vessel  hereby  insured  come  into  collision  with  or  receive
salvage services from another vessel belonging wholly  or  in  part  to  the
same Owners or under the same management, the Assured shall  have  the  same
rights under this insurance  as  they  would  have  were  the  other  vessel
entirely the  property  of  Owners  not  interested  in  the  Vessel  hereby
insured; but in such cases the liability for the  collision  or  the  amount
payable for the services rendered shall be referred to a sole arbitrator  to
be agreed upon between the Underwriters and the Assured.

10. General Average and Salvage

10.1. This insurance covers the  Vessels  proportion  of  salvage,  salvage
charges and/or general average, reduced in respect of  any  under-insurance,
but in case of any general average sacrifice of the Vessel the  Assured  may
recover in respect of the whole loss without first enforcing their right  of
contribution from other parties.

10.2. Adjustment to be according to the law and practice at the place  where
adventure ends, as if the contract of  affreightment  contained  no  special
terms upon the subject; but where the contract of affreightment so  provides
the adjustment shall be according to the York-Antwerp Rules.

10.3. When the Vessel sails in ballast, not under  charter,  the  provisions
of the York-Antwerp Rules, 1994 (excluding Rules XI (d), XX and  XXI)  shall
be applicable, and the voyage for this purpose shall be deemed  to  continue
from the port or place of departure until the arrival of the Vessel  at  the
first port or place thereafter other than a port or place  of  refuge  or  a
port or place of call for bunkering only. If at any such  intermediate  port
or place there is an abandonment of the  adventure  originally  contemplated
the voyage shall thereupon be deemed terminated.

10.4. No claim under this Clause 10 shall in any case be allowed  where  the
loss was not incurred to avoid or in connection  with  the  avoidance  of  a
peril insured against.

10.5. No claim under this Clause 10 shall in any case be allowed for  or  in
respect of

10.5.1. special compensation payable to a salvor under  Article  14  of  the
International Convention on Salvage, 1989 or under any  other  provision  in
any statute, rule, law or contract which is similar in substance;

10.5.2.  expenses  or  liabilities  incurred  in  respect   of   damage   to
environment, or the threat such damage, or as a  consequence  of  escape  or
release of pollutant substances from the  Vessel,  or  the  threat  of  such
escape or release.

10.6. Clause 10.5. shall not however  exclude  any  sum  which  the  Assured
shall pay to salvors for or in respect of salvage remuneration in which  the
skill and efforts of the salvors in preventing or minimising damage  to  the
environment as is  referred  to  in  Article  13  paragraph  1  (b)  of  the
International Convention on Salvage, 1989 have been taken into account.

11. Duties of Assured (Sue & Labour)

11.1. In case of any loss or misfortune it is the duty of  the  Assured  and
their servants and agents to take such measures as  may  be  reasonable  for
the purpose of averting or minimising a  loss  which  would  be  recoverable
under this insurance.

11.2. Subject to the provisions below and  to  Clause  12  the  Underwriters
will contribute to charges properly and reasonably incurred by  the  Assured
their servants  or  agents  for  such  measures.  General  average,  salvage
charges (except as provided for in Clause 11.5.), special  compensation  and
expenses as referred to in Clause 10.5. and  collision  defence  and  attack
costs are not recoverable under this Clause 11.

11.3. Measures taken by the Assured or the Underwriters with the  object  of
saving, protecting or recovering the subject-matter  insured  shall  not  be
considered as a waiver or acceptance of abandonment or  otherwise  prejudice
the rights of either party.

11.4. When expenses are incurred pursuant to this Clause  11  the  liability
under this insurance shall not exceed the proportion of such  expenses  that
the amount insured hereunder bears to the value  of  the  Vessel  as  stated
herein, or to the sound value of the Vessel at the time  of  the  occurrence
giving rise to the expenditure if the sound value exceeds that value.  Where
the Underwriters have admitted a claim for total loss and  property  insured
by this insurance is saved, the foregoing provisions shall not apply  unless
the expenses of suing and labouring exceed the value of such property  saved
and then shall apply only to the amount of the expenses which is  in  excess
of such value.

11.5. When a claim for total loss of  the  Vessel  is  admitted  under  this
insurance  and  expenses  have  been  reasonably  incurred  in   saving   or
attempting to save the Vessel and other property and there are no  proceeds,
or the expenses exceed the proceeds, then this insurance shall bear its  pro
rata share of such proportion of the expenses, or of  the  expenses  in  the
excess of the proceeds. As the case may be, as may  reasonably  be  regarded
as having been incurred in respect of  the  Vessel,  excluding  all  special
compensation and expenses as referred to in Clause 10.5.; but if the  Vessel
be insured for less than its sound value  at  the  time  of  the  occurrence
giving rise to the expenditure, the amount  recoverable  under  this  clause
shall be reduced in the proportion to the under-insurance.

11.6. The sum recoverable under this Clause 11 shall be in addition  to  the
loss  otherwise  recoverable  under  this  insurance   but   shall   in   no
circumstances exceed the amount insured under this insurance in  respect  of
the Vessel.

12. Deductible

12.1. No claim arising from a peril insured against shall be  payable  under
this insurance unless the aggregate of all such claims arising out  of  each
separate accident or occurrence (including claims under  Clause  8,  10  and
11) exceeds the deductible amount agreed in which case  this  sum  shall  be
deducted.
Nevertheless  the  expense  of  sighting  the  bottom  after  stranding,  if
reasonably incurred specially for that purpose, shall be  paid  even  if  no
damage be found. This Clause 12 shall not apply to a claim  for  total  loss
or constructive loss of the Vessel or, in the event of such a claim, to  any
associated  claim  under  Clause  11  arising  from  the  same  accident  or
occurrence.

12.2. Claims for damage by heavy  weather  occurring  during  a  single  sea
passage between two successive ports shall be treated as being  due  to  one
accident. In the case of such heavy weather  extending  over  a  period  not
wholly covered by this insurance the deductible to be applied to  the  claim
recoverable hereunder shall be the proportion of the above  deductible  that
the number of days of such heavy weather falling within the period  of  this
insurance bears to the number of days of heavy  weather  during  the  single
sea passage. The expression heavy weather in this Clause  12.2.  shall  be
deemed to include contact with floating ice.

12.3. Excluding any  interest  comprised  therein,  recoveries  against  any
claim which is subject to the above deductible  shall  be  credited  to  the
Underwriters in full to the extent of the sum by which the aggregate of  the
claim unreduced by any recoveries exceeds the above deductible.

12.4. Interest comprised in recoveries  shall  be  apportioned  between  the
Assured and the Underwriters, taking into  account  the  sums  paid  by  the
Underwriters and the dates when such  payments  were  made,  notwithstanding
that by the addition of interest the Underwriters may receive a  larger  sum
than they have paid.

13. Notice of Claim and Tenders

13.1. In the event of accident whereby loss or damage may result in a  claim
under this insurance, notice must be  given  to  the  Underwriters  promptly
after the date on which the Assured, Owners or  Managers  become  or  should
have become aware of the loss or damage  and  prior  to  survey  so  that  a
surveyor may be appointed if the Underwriters so desire.
If notice is not given to the Underwriters  within  twelve  months  of  that
date  unless  the  Underwriters  agree  to  the  contrary  in  writing,  the
Underwriters will be automatically discharged from liability for  any  claim
under this insurance in respect of or arising out of such  accident  or  the
loss or damage.

13.2. The Underwriters shall be entitled to decide the  port  to  which  the
Vessel shall proceed for docking or repair (the  actual  additional  expense
of the voyage arising from compliance with  the  Underwriters  requirements
being refunded to the assured) and shall have a right of veto  concerning  a
place of repair or a repairing firm.

13.3. The Underwriters may also take tenders or may require further  tenders
to be taken for the repair of the Vessel.  Where  such  a  tender  has  been
taken and a tender is accepted with the approval  of  the  Underwriters,  an
allowance shall be made at the rate of 30% per annum on  the  insured  value
for the time lost between despatch of the invitations to tender required  by
the Underwriters and the acceptance of a tender  to  the  extent  that  such
time is lost solely as a result of tenders having been  taken  and  provided
that  the  tender  is  accepted  without  delay   after   receipt   of   the
Underwriters approval.
Due credit shall be given against the allowance as  above  for  any  amounts
recovered in respect of fuel and store and  wages  and  maintenance  of  the
Master Officers and Crew or any member thereof,  including  amounts  allowed
in general average, and for any amounts  recovered  from  third  parties  in
respect of damages for  detention  and/or  loss  of  profit  and/or  running
expenses, for the period  covered  by  the  tender  allowance  or  any  part
thereof.
Where a part of the cost  of  the  repair  of  damage  other  than  a  fixed
deductible is not recoverable from the Underwriters the allowance  shall  be
reduced by a similar proportion.

13.4. In the event of failure by the Assured to comply with  the  conditions
of Clauses 13.2. and/or 13.3. a deduction of 15%  shall  be  made  from  the
amount of the ascertained claim.

14. New for Old

Claims payable without deduction new for old.

15. Bottom Treatment

In no case shall a claim be allowed in respect of scraping gritblasting  and
/or other surface preparation or painting  of  the  Vessels  bottom  except
that

15.1. gritblasting and/or other surface preparation  of  new  bottom  plates
ashore and supplying and applying any shop primer thereto,

15.2. gritblasting and/or other surface preparation of:

    the butts or area of plating immediately adjacent  to  any  renewed  or
    refitted plating damaged during the course of welding and/or repairs,

    areas of plating damaged during the course of fairing, either in  place
    or ashore,

15.3. supplying and applying the  first  coat  of  primer/anti-corrosive  to
those particular areas mentioned in 15.1. and 15.2. above,

shall be allowed as part of the reasonable cost of  repairs  in  respect  of
bottom plating damaged by an insured peril.

16. Wages and Maintenance

No claim shall be allowed, other than in  general  average,  for  wages  and
maintenance of the Master Officers and Crew or any  member  thereof,  except
when incurred solely for the necessary removal of the Vessel from  one  port
to another for the repair of damage covered  by  the  Underwriters,  or  for
trial trips for such repairs, and then only for such wages  and  maintenance
as are incurred whilst the Vessel is under way.

17. Agency Commission

In no case shall any sum be allowed under this insurance either  by  way  of
remuneration of the Assured for time and trouble taken to obtain and  supply
information or documents or in respect of the commission or charges  of  any
manager, agent, managing or agency company or the like, appointed by  or  on
behalf of the Assured to perform such services.

18. Unrepaired Damage

18.1. The measure of indemnity in respect of claims  for  unrepaired  damage
shall be reasonable depreciation in the market value of the  Vessel  at  the
time this insurance terminates arising from such unrepaired damage, but  not
exceeding the reasonable cost of repairs.

18.2. In no case shall the Underwriters be liable for the unrepaired  damage
in the event of a subsequent total loss (whether or not covered  under  this
insurance) sustained during the period covered  by  this  insurance  or  any
extension thereof.

18..3. The Underwriters shall not be liable in  respect  of  the  unrepaired
damage  for  more  than  the  insured  value  at  the  time  this  insurance
terminates.

19. Constructive Total Loss

19.1. In ascertaining whether the vessel is a constructive total  loss,  the
insured value shall be taken as the repaired value and  nothing  in  respect
of the damage or break-up value of the Vessel or wreck shall be  taken  into
account.

19.2. No claim for constructive total loss based upon the cost  of  recovery
and/or repair of the Vessel shall be recoverable hereunder unless such  cost
would exceed the insured value. In making this determination, only the  cost
relating to a single accident or sequence of damages arising from  the  same
accident shall be taken into account.

20. Freight Waiver

In the event of total or constructive loss  no  claim  to  be  made  by  the
Underwriters for freight whether notice of abandonment  has  been  given  or
not.


21. Assignment

No assignment of or interest in this insurance or in any  moneys  which  may
be or become payable thereunder is to be binding on  or  recognised  by  the
Underwriters unless a dated notice of such assignment or interest signed  by
the Assured, and by the assignor in the case of  subsequent  assignment,  is
endorsed on the Policy and the Policy  with  such  endorsement  is  produced
before payment of any claim or return of premium thereunder.

22. Disbursements Warranty

22.1. Additional insurances as follows are permitted:

22.1.1.  Disbursements,  Managers  Commissions,  Profits   or   Excess   or
Increased Value of Hull and Machinery. A sum not exceeding 25% of the  value
stated herein.

22.1.2. Freight, Chartered  Freight  or  Anticipated  Freight,  insured  for
time. A sum not exceeding 25 % of the  value  stated  herein  less  any  sum
insured, however described, under 22.1.1.

22.1.3. Freight or Hire, under contract for voyage. A sum not exceeding  the
gross freight or hire for the current  cargo  passage  and  next  succeeding
cargo passage (such insurance to include, if  required,  a  preliminary  and
intermediate ballast passage) plus the charges of insurance. In the case  of
a voyage charter where payment is made on a time basis,  the  sum  permitted
for insurance shall be calculated on the estimated duration of  the  voyage,
subject to the limitation of two cargo passages as  laid  down  herein.  Any
sum insured under 22.1.2. to be taken  into  account  and  only  the  excess
thereof may be insured, which excess shall be the gross amount  so  advanced
or earned.

22.1.4. Anticipated Freight if the Vessel sails in  ballast  and  not  under
Charter. A sum not exceeding the anticipated gross  freight  on  next  cargo
passage, such sum to be reasonably estimated on the  basis  of  the  current
rate of freight at time of insurance plus the charges of insurance. Any  sum
insured under 22.1.2. to be taken into account and only the  excess  thereof
may be insured.

22.1.5. Time Charter Hire or Charter Hire for Series of Voyages. A  sum  not
exceeding 50% of the gross hire which is to be earned under the charter  not
exceeding 18 months. Any sum insured under 22.1.2. to be taken into  account
and only the excess thereof may be insured, which excess  shall  be  reduced
as the hire is advanced or earned under the charter  by  50%  of  the  gross
amount so advanced or earned but the sum insured need not be  reduced  while
the total of the sums insured under 22.1.2. and 22.1.5. does not exceed  50%
of the gross hire still to be earned under the charter. An  insurance  under
this Section may begin on the signing of the Charter.

22.1.6. Premiums. A sum not exceeding the actual premiums of  all  interests
insured for a period not exceeding 12  months  (excluding  premiums  insured
under the foregoing sections, but including, if required,  the  premiums  or
estimated calls on any Club or War etc. Risk insurance)  reducing  pro  rata
monthly.



22.1.7. Returns of Premium. A sum not exceeding  the  actual  returns  which
are allowable under  any  insurance  but  which  would  not  be  recoverable
thereunder in the event of a total loss of the  Vessel  whether  by  insured
perils or otherwise.

22.1.8. Insurance irrespective of amount against:
        Any risk excluded by Clauses 24, 25, 26 and 27 below.

22.2. Warranted that  no  insurance  on  any  interests  enumerated  in  the
foregoing 22.1.1. to 22.1.7. in the excess of the amounts permitted  therein
and no other insurance which includes the total loss of the  Vessel  P.P.I.,
F.I.A. or subject to any other  like  term,  is  or  shall  be  effected  to
operate during the currency of this insurance  by  or  for  account  of  the
Assured, Owners, Managers or Mortgagees. Provided always that  a  breach  of
this warranty shall not afford the Underwriters any defence to a claim by  a
Mortgagee who has accepted this insurance without knowledge of such breach.

23. Returns for Lay-up and Cancellation

23.1. To returns as follows:

23.1.1. pro rata net  for  each  uncommenced  month  if  this  insurance  be
cancelled by agreement,

23.1.2. for each period of 30 consecutive days the Vessel may be laid up  in
a port or in a lay-up area provided such port or lay-up area is approved  by
the Underwriters
    (a)  ..............................................  per  cent  net  not
under repair
    (b) .............................................  per  cent  net  under
repair.

23.1.3. The Vessel shall not be considered to be under repair when  work  is
undertaken in respect of  ordinary  wear  and  tear  of  the  Vessel  and/or
following recommendations in the  Vessels  Classification  Society  survey,
but any repairs following loss of or  damage  to  the  Vessel  or  involving
structural alterations, whether  covered  by  this  insurance  or  otherwise
shall be considered as under repair.

23.1.4. If the Vessel is under repair during  part  only  of  a  period  for
which a return is claimable, the return shall be calculated pro rata to  the
number of days under 23.1.2. (a) and (b) respectively.

23.2. PROVIDED ALWAYS THAT

23.2.1. a total loss of the Vessel, whether by insured perils or  otherwise,
has not occurred during the period covered by this insurance or  any  extent
thereof;

23.2.2. in no case shall a return be allowed when the  Vessel  is  lying  in
exposed or unprotected waters, or in a port or lay-up area not  approved  by
the Underwriters;

23.2.3. loading or discharging operations or the presence of cargo on  board
shall not debar returns but no  return  shall  be  allowed  for  any  period
during which the Vessel is being used  for  the  storage  of  cargo  or  for
lightering purposes;

23.2.4. in the event of any amendment of the annual rate,  the  above  rates
of returns shall be adjusted accordingly;

23.2.5. in the event of any return recoverable under this  Clause  23  being
based on 30 consecutive days which fall on  successive  insurances  effected
for the same Assured, this insurance shall only  be  liable  for  an  amount
calculated at pro rata of the period rates 23.1.2. (a) and or (b) above  for
the number of days which come within the period of  this  insurance  and  to
which a return is actually applicable. Such overlapping  period  shall  run,
at the option of the Assured, either from the first day of a  period  of  30
consecutive days as provided under 23.1.2. (a) or (b) above.



The following  clauses  shall  be  paramount  and  shall  override  anything
contained in this insurance inconsistent therewith.

24. War Exclusion

In no case shall this insurance  cover  loss  damage  liability  or  expense
caused by

24.1. war civil war  revolution  rebellion  insurrection,  or  civil  strife
arising therefrom, or any hostile act by or against a belligerent power

24.2 capture seizure arrest restrain  or  detainment  (barratry  and  piracy
excepted), and the consequences thereof or any attempt thereat

24.3. derelict mines torpedoes bombs or other derelict weapons of war.

25. Strikes Exclusion

In no case shall this insurance  cover  loss  damage  liability  or  expense
caused by

25.1. strikers,  locked-out  workmen,  or  persons  taking  part  in  labour
disturbances, riots or civil commotions

25.2. any terrorist or any person acting from a political motive

26. Malicious Acts Exclusion

In no case shall this insurance  cover  loss  damage  liability  or  expense
caused by

26.1 the detonation of an explosive

26.2. any weapon of war

and caused by any person acting maliciously or from a political motive.

27. Radioactive Contamination Exclusion Clause

In no case shall this insurance  cover  loss  damage  liability  or  expense
directly or indirectly caused by or contributed to by or arising from

27.1. ionising radiations from or contamination by  radioactivity  from  any
nuclear fuel or from any nuclear waste or from  the  combustion  of  nuclear
fuel

27.2. the radioactive, toxic, explosive or other hazardous or  contaminating
properties of any nuclear installation, reactor or  other  nuclear  assembly
or nuclear component thereof

27.3 any weapon of war employing atomic or nuclear fission and/or fusion  or
other like reaction or radioactive force or matter.