any salvage, wreck, or cargo which may be recovered by the insured, or which may be available for or chargeable with such claims or expenses.

(6) The costs and expenses incurred by the insured in resisting any claims covered by this policy, or in
any legal proceedings in relation to any such claims, provided such costs or expenses shall have
been incurred with the consent in writing of the company.

Provided always that the insured shall not be entitled to protection or indemnity against any liabilities (except
a liability for costs incurred as hereinbefore mentioned) which arising on or out of one and the same occasion
do not altogether amount to £10 or upwards, nor to any protection or indemnity in respect of loss or damage due
to improper stowage.

And provided further that if the insured or any of them shall in any case be entitled, or would but for any
contract or undertaking be entitled, to limit their or his liability in respect of all or any of the said losses,
claims, demands, damages, or expenses, then the company shall not be bound to protect or indemnify them or
him to any greater extent than they or he would be entitled to if their or his liability were so limited, together
with proper interest and costs. And that in no case shall the aggregate amount of the indemnity to be made
or contributed to by the company in respect of any one occasion exceed in all (including interest and costs) £30
per ton on the gross tonnage of the insured ship.

Provided also that if the amount hereby insured be less than the amount at which the ship is valued in this
policy, the amount in which the company by this policy undertakes to protect and indemnify the insured against
liabilities as aforesaid, shall be limited to that proportion thereof which the sum hereby insured bears to the said value.
And it is hereby expressly agreed and declared that all warranties, conditions, and terms which would be im-
plied in a policy on a ship alone shall apply to and be implied in the insurance by this policy on the insured ship,
but shall not in any way apply to or be implied in the insurance by this policy against the aforementioned liabilities.

In witness whereof the undersigned on behalf of the said company according to the articles of association of
the said company, and a resolution duly passed by the Board of Directors, have hereunto set their hands in
Liverpool the
day of

Examined

189

DIRECTOR.

Countersigned

SECRETARY.

APPENDIX G

RULES OF PRACTICE

ADOPTED BY THE ASSOCIATION OF AVERAGE
ADJUSTERS UP TO MAY 1896

Adjustments “For the Consideration of Underwriters”

That no adjustment "For consideration of the underwriters" shall be made, unless it contain a statement of the reasons of the average adjuster for making such adjustment.

Agency Fees chargeable by Shipowners

That neither interest nor commission (excepting bank commission), nor any other charge by way of agency or remuneration for trouble is allowed to the shipowner in general average or particular average on ship, or as a special charge in respect of payments made or services rendered at the port at which the managing owner for the time being resides; excepting that a commission or agency fee is allowable in respect of payments made or services rendered on behalf of cargo, when such payments or services are not involved in the contract of affreightment.

Duty of Adjusters in respect of Cost of Repairs

That in adjusting particular average on ship or general average which includes repairs, it is the duty of the adjuster to satisfy himself that such reasonable and usual precautions have been taken to keep down the cost of repairs as a prudent shipowner would have taken if uninsured.

Claims for Damage to Ship's Machinery

That no claim for damage to ship's machinery shall be admitted into an adjustment unless a survey have been held upon such

machinery by competent and disinterested engineers as soon as practicable after the occurrence of the casualty giving rise to the claim; a certificate of such survey, reporting as to the nature and cause of the damage, to be furnished to the adjuster: or unless clear proof be given to the adjuster that the holding of such survey or the obtaining of such certificate is impracticable, which proof is to be set forth on the face of the adjustment.

Claims on Ship's Machinery

That in all claims on ship's machinery for repairs, no claim for a new propeller or new shaft shall be admitted into an adjustment, unless the adjuster shall obtain and insert into his statement evidence showing what has become of the old propeller or shaft.

Water Casks

Water casks or tanks carried on a ship's deck are not paid for by underwriters as general or particular average; nor are warps or other articles when improperly carried on deck.

GENERAL AVERAGE-

Basis of Adjustment

That in any adjustment of general average not made in accordance with British law, it shall be prefaced on what principle or according to what law the adjustment has been made, and the reason for so adjusting the claim shall be set forth.

Deckload Jettison

The jettison of a deckload carried according to the usage of trade, and not in violation of the contracts of affreightment, is general

average.

There is an exception to this rule in the case of cargoes of cotton, tallow, acids, and some other goods.

Damage by Water used to extinguish Fire

That damage done by water poured down a ship's hold to extinguish a fire be treated as general average.

Damage caused by Water thrown upon Burning Goods

That goods in a ship which is on fire, or the cargo of which is on fire, affected by water voluntarily used to extinguish such fire, shall

not be the subject of general average if the packages so affected be themselves on fire at the time the water was thrown upon them.

Voluntary Stranding

The custom of Lloyd's excludes from general average all damage to ship or cargo resulting from a voluntary stranding.

This rule does not necessarily exclude such damage as is done by beaching or scuttling a burning vessel to extinguish the fire.

Expenses Lightening a Ship when Ashore

When a ship is ashore, and, in order to float her, cargo is put into lighters and is then at once reshipped, the whole cost of lightening, including lighter hire and reshipping, is general average.

Sails set to force a Ship off the Ground

Sails damaged by being set, or kept set, to force a ship off the ground, or to drive her higher up the ground for the common safety, are general average.

Stranded Vessels: Damage to Engines in getting off

That damage caused to machinery and boilers of a stranded vessel in endeavouring to refloat, be allowed in general average, when shown to have arisen from an actual intention to float the ship at the risk of such damage.

Resort to Port of Refuge for General Average Repairs :

Treatment of the Charges incurred

That when a ship puts into a port of refuge in consequence of damage which is itself the subject of general average, and sails thence with her original cargo, or a part of it, the outward as well as the inward port charges shall be treated as general average; and when cargo is discharged for the purpose of repairing such damage, the warehouse rent and reloading of the same shall, as well as the discharge, be treated as general average. (See Atwood v. Sellar.)

Resort to Port of Refuge on account of Particular Average

Repairs: Treatment of the Charges incurred

That when a ship puts into a port of refuge in consequence of damage which is itself the subject of particular average (or not of general average), and when the cargo has been discharged in consequence of such damage, the inward port charges and the cost of

discharging the cargo shall be general average, the warehouse rent of cargo shall be a particular charge on cargo, and the cost of reloading and outward port charges shall be a particular charge on freight. (See Svendsen v. Wallace.)

Treatment of Costs of Storage and Reloading at Port of Refuge

That when the cargo is discharged for the purpose of repairing, reconditioning, or diminishing damage to ship or cargo which is itself the subject of general average, the cost of storage on it and of reloading it shall be treated as general average equally with the cost of discharging it.

Expenses at a Port of Refuge

:

When a ship puts into a port of refuge on account of accident, and not in consequence of damage which is itself the subject of general average, then, on the assumption that the ship was seaworthy at the commencement of the voyage, the custom of Lloyd's is as follows:(a) All cost of towage, pilotage, harbour dues, and other extraordinary expenses incurred in order to bring the ship and cargo into a place of safety, are general average. Under the term "extraordinary expenses are not included wages or victuals of crew, coals, or engines, stores, or demurrage. (b) The cost of discharging the cargo, whether for the common safety, or to repair the ship, together with the cost of conveying it to the warehouse, is general average.

The cost of discharging the cargo on account of damage to it resulting from its own vice propre is chargeable to the owners of the cargo.

(c) The warehouse rent, or other expenses which take the place of warehouse rent, of the cargo when so discharged, is, except as under, a special charge on the cargo.

(d) The cost of reloading the cargo, and the outward port charges incurred through leaving the port of refuge, are, when the discharge of cargo falls in general average, a special charge on freight.

(e) The expenses referred to in clause (d) are charged to the party who runs the risk of freight; that is, wholly to the charterer, if the whole freight has been prepaid; and if part only, then in the proportion which the part prepaid bears to the whole freight.

When the cargo instead of being sent ashore, is placed on board hulk or lighters during the ship's stay in port, the hulk-hire is divided between general average, cargo, and freight, in such proportions as may place the several contributing interests in nearly the same relative positions as if the cargo had been landed and stored.