Commonwealth Numbered Regulations

1996 No. 240 CIVIL AVIATION (CARRIERS' LIABILITY) REGULATIONS (AMENDMENT) - REG 2

2.1 Paragraph 9 (2) (a): Omit "(also called 'Aviation 38'),", substitute
"(also called 'Aviation 38')".

2.2 After paragraph 9 (2) (a), insert:

"(aa) 'Nuclear Risks Exclusion Clause' (also called 'AVN. 38B') as that clause
is commonly in use at the commencement of this paragraph; or". (NOTE: The note
to subregulation 9 (2) should be omitted and the following note substituted:
"(NOTE: The text of each exclusion clause, as in use at the commencement of
the paragraph describing it in subregulation 9 (2), is set out, for
information, in the note at the end of these Regulations.)".) (NOTE: The
following note should be inserted after the Schedule: NOTE

The texts of the standard exclusion clauses referred to in subregulation 9 (2)
are as follows: AVIATION RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE (GENERAL)
(Aviation 38)

(1) The contract of insurance does not cover:

   (a)  loss or destruction of, or damage to, any property or any loss or
        expense resulting therefrom;

   (b)  any legal liability of whatsoever nature; directly or indirectly
        caused or contributed to by or arising from ionising radiations or
        contamination by radioactivity from any source whatsoever.

(2) Loss, destruction, damage, expense or legal liability which, but for the
provisions of paragraph (1) of this Clause, would be covered by this policy,
and is directly or indirectly caused or contributed to by or arising from
ionising radiations or contamination by radioactivity from any radioactive
materials in course of carriage as cargo under International Air Transport
Association regulations, shall (subject to all the other provisions of this
policy) be covered, provided that:

   (a)  it shall be a condition precedent to the liability of the Underwriters
        that the carriage of any radioactive materials shall in all respects
        comply with the current regulations issued by the International Air
        Transport Association relating to the carriage of restricted articles
        by air;

   (b)  the loss, destruction, damage, expense or legal liability shall have
        occurred or arisen during the period of this policy, and any claim by
        the Assured against the Underwriters or by any claimant against the
        Assured shall have been made within three years after the date of the
        occurrence giving rise to the claim;

   (c)  in the case of any claim by virtue of this paragraph (2) under the
        Hull section of this policy, the level of contamination shall have
        exceeded the maximum permissible level set out in the following
        scale:-

    Emitter      Maximum permissible level of non-fixed radioactive
surface contamination (Averaged over 300cm2)
Alpha emitters in Group 1 of the IAEA list of radio isotopes
(IAEA Health and Safety Series No. 6)
Not exceeding 10-5 microcuries per cm2
All other substances
Not exceeding 10-4 microcuries per cm2
and

   (d)  the cover afforded by this paragraph (2) may be cancelled at any time
        by the Underwriters giving seven days' notice of cancellation. NUCLEAR
        RISKS EXCLUSION CLAUSE (AVN. 38B)

(1) This Policy does not cover:

   (a)  loss of or destruction of or damage to any property whatsoever or any
        loss or expense whatsoever resulting or arising therefrom or any
        consequential loss;

   (b)  any legal liability of whatsoever nature; directly or indirectly
        caused by or contributed to by or arising from:

   (c)  the radioactive, toxic, explosive or other hazardous properties of any
        explosive nuclear assembly or nuclear component thereof;

   (d)  the radioactive properties of, or a combination of radioactive
        properties with toxic, explosive or other hazardous properties of, any
        other radioactive material in the course of carriage as cargo,
        including storage or handling incidental thereto;

   (e)  ionizing radiations or contamination by radioactivity from, or the
        toxic, explosive or other hazardous properties of, any radioactive
        source whatsoever.

(2) It is understood and agreed that such radioactive material or other
radioactive source in paragraph (1) (d) and (e) above shall not include:

   (a)  depleted uranium and natural uranium in any form;

   (b)  radioisotopes which have reached the final stage of fabrication so as
        to be usable for any scientific, medical, agricultural, commercial,
        educational or industrial purpose.

(3) This Policy, however, does not cover loss of or destruction of or damage
to any property or any consequential loss or any legal liability of whatsoever
nature with respect to which:

   (a)  the Insured under this Policy is also an insured or an additional
        insured under any other insurance policy, including any nuclear energy
        liability policy; or

   (b)  any person or organization is required to maintain financial
        protection pursuant to legislation in any country; or

   (c)  the Insured under this Policy is, or had this Policy not been issued
        would be, entitled to indemnification from any government or agency
        thereof.

(4) Loss, destruction, damage, expense or legal liability in respect of the
nuclear risks not excluded by reason of paragraph (2) shall (subject to all
other terms, conditions, limitations, warranties and exclusions of this
Policy) be covered, provided that:

   (a)  in the case of any claim in respect of radioactive material in the
        course of carriage as cargo, including storage or handling incidental
        thereto, such carriage shall in all respects have complied with the
        full International Civil Aviation Organization "Technical Instructions
        for the Safe Transport of Dangerous Goods by Air", unless the carriage
        shall have been subject to any more restrictive legislation, when it
        shall in all respects have complied with such legislation;

   (b)  this Policy shall only apply to an incident happening during the
        period of this Policy and where any claim by the Insured against the
        Insurers or by any claimant against the Insured arising out of such
        incident shall have been made within three years after the date
        thereof;

   (c)  in the case of any claim for the loss of or destruction of or damage
        to or loss of use of an aircraft caused by or contributed to by
        radioactive contamination, the level of such contamination shall have
        exceeded the maximum permissible level set out in the following scale:

Emitter
(IAEA Health and Safety Regulations)
Maximum permissible level of non-fixed radioactive
surface contamination
(averaged over 300 cm2)
Beta, gamma and low toxicity alpha emitters Not exceeding 4
Bequerels/cm2
(10-4 microcuries/cm2)
All other emitters
Not exceeding 0.4 Bequerels/cm2
(10-5 microcuries/cm2)

   (d)  the cover afforded hereby may be cancelled at any time by the Insurers
        giving seven days' notice of cancellation. NOISE AND POLLUTION AND
        OTHER PERILS EXCLUSION CLAUSE (AVN. 46B)

(1) This Policy does not cover claims directly or indirectly occasioned by,
happening through, or in consequence of:

   (a)  noise (whether audible to the human ear or not), vibration, sonic boom
        and any phenomena associated therewith,

   (b)  pollution and contamination of any kind whatsoever,

   (c)  electrical and electromagnetic interference,

   (d)  interference with the use of property; unless caused by or resulting
        in a crash fire explosion or collision or a recorded in-flight
        emergency causing abnormal aircraft operation.

(2) With respect to any provision in the Policy concerning any duty of
Underwriters to investigate or defend claims, such provision shall not apply
and Underwriters shall not be required to defend:

   (a)  claims excluded by Paragraph 1 or

   (b)  a claim or claims covered by the Policy when combined with any
claims excluded by Paragraph 1 (referred to below as "Combined Claims").

(3) In respect of any Combined Claims, Underwriters shall (subject to proof of
loss and the limits of the Policy) reimburse the Insured for that portion of
the following items which may be allocated to the claims covered by the
Policy:

   (a)  damages awarded against the Insured; and

   (b)  defence fees and expenses incurred by the Insured.

(4) Nothing in this clause shall override any radioactive contamination or
other exclusion clause attached to or forming part of this Policy. WAR,
HIJACKING AND OTHER PERILS EXCLUSION CLAUSE AVIATION) (AVN. 48B)

(1) This Policy does not cover claims caused by:

   (a)  War, invasion, acts of foreign enemies, hostilities (whether war be
        declared or not), civil war, rebellion, revolution, insurrection,
        martial law, military or usurped power or attempts at usurpation of
        power;

   (b)  Any hostile detonation of any weapon of war employing atomic or
        nuclear fission and/or fusion or other like reaction or radioactive
        force or matter;

   (c)  Strikes, riots, civil commotions or labour disturbances;

   (d)  Any act of one or more persons, whether or not agents of a sovereign
        Power, for political or terrorist purposes and whether the loss or
        damage resulting therefrom is accidental or intentional;

   (e)  Any malicious act or act of sabotage;

   (f)  Confiscation, nationalisation seizure, restraint, detention,
        appropriation, requisition for title, or use by or under the order of
        any Government (whether civil military or de facto) or public or local
        authority;

   (g)  Hijacking or any unlawful seizure or wrongful exercise of control of
        the Aircraft or crew in flight (including any attempt at such seizure
        or control) made by any person or persons on board the Aircraft acting
        without the consent of the Insured.

Further this policy does not cover claims arising whilst the Aircraft is
outside the control of the Insured by reason of any of the above perils. The
Aircraft shall be deemed to have been restored to the control of the Insured
on the safe return of the Aircraft to the Insured at an airfield not excluded
by the geographical limits of this Policy, and entirely suitable for the
operation of the Aircraft (such safe return shall require that the Aircraft be
parked with engines shut down and under no duress).