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¾ collision liability and ¼ collision liability

The Institute Time Clauses (Hulls) includes the Running Down Clause which covers only ¾ of the insured vessel’s collision liability. This cover is limited to damage to and property on board the third party vessel. The original intention of this limitation was to have the shipowner self-insure ¼ of his liability to encourage him to navigate carefully. However, present day practice is for the remaining ¼ collision liability to be insured under the Protection & Indemnity (P&I) extension to the marine hull policy. This principle applies to London Institute Clauses only and will vary under foreign clauses.