3 / 4th collision liability. (formerly known as %u201crunning down clause%u201d)

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FOLLOW

•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 ship owners are not responsible, under the bill of lading terms, for the consequences of negligent navigation
•loss of or damage to other vessel
•delay to or loss of use of other vessel
•general average of other vessel
•salvage or salvage under contract of other vessel
•if both vessels are to blame in the collision, then the liabilities will be calculated as per the principle of cross liabilities, unless the liabilities are limited by law
•the 1/4th of liability not covered by the underwriters under the policy is usually insured under the ship owner’s P&I Club policy.
•3/4th of legal costs incurred by the assured in contesting liability
•The total liability of the insurer under this clause is limited to 3/4th of the insured value of the insured vessel

Exclusions , The following are excluded from the  3/4th  liability cover
•removal or disposal of wreck/cargo
•the cargo or other property of insured vessel
•loss of life/personal injury
•pollution or contamination of any real or personal property