Sat, Oct

Running down or 3/4ths collision liability clause (RDC)


Running down or 3/4ths collision liability clause (RDC). Under the Institute Time Clauses (Hulls) 1983 it is agreed that if the insured vessel is to blame for a collision with another vessel, underwriters undertake to pay three-fourths of the damage sustained by the other vessel up to a maximum of three fourths of the value of the insured vessel mentioned in the policy.

Payments by the assured for cargo on this insured vessel are excluded in view of the fact that shipowners are not responsible, under the bill of lading terms, for the consequences of negligent navigation.

The clause under which underwriters agreed to pay 3/4ths of the damage, subject to the abovementioned maximum, is called the “Running Down Clause” or “Collision Clause”. As a rule the remaining one-fourth is covered by the Protecting and Indemnity Association. If the “Running Down Clause” does make underwriters liable for the full amount of damage, which may sometimes be arranged, it is known as “4/4ths R.D.C.”.

“3/4ths Collision Liability

8.1. The Underwriters agree to indemnify the Assured for three-fourths 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 or damage to any other vessel or property on any vessel

8.1.2. delay 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.”