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Section 2 Hull insurance

  • Clause 20-6. The relationship to Chapters 10-13

    The rules in Chapters 10-13 shall apply together with the amendments that follow from this Section.

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    Clause 20-6. The relationship to Chapters 10-13

    The provision states that for hull insurance the rules of Chapters 10 to 13 apply, with such amendments as follow from this Section.

  • Clause 20-7. Hull and freight-interest insurance/ Ref. Clause 10-12

    Instead of Cl. 10-12 the following shall apply:If the insured receives compensation under an interest insurance, the hull insurer’s liability is reduced correspondingly, unless the hull insurer has consented in advance to such insurance being taken out.

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    Clause 20-7. Hull and freight-interest insurance/Ref. Clause 10-12

    The hull insurer may consent to the effecting of interest insurance. In that event, the reduction rule will only apply to interest insurances which are larger than what the hull insurer has consented to.

  • Clause 20-8. Condemnation/Ref. Clause 11-3

    Instead of Cl. 11-3, sub-clause 2, first sentence, the following shall apply: The conditions for condemnation are met when casualty damage is so extensive that the costs of repairing the vessel will amount to at least 90 % of the insurable value or of the value of the vessel after repairs if the latter is higher than the insurable value.

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    Clause 20-8. Condemnation/Ref. Clause 11-3

    The condemnation limit is 90 % in relation to Cl. 11-3. A limit of 80 % is too advantageous when taking into account that the average age of the fleet is far higher today than 30-40 years ago, that the international marine insurance market relies on a condemnation limit of 100 %.

  • Clause 20-9. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1

    In the event of damage to the hull of vessels which are not built of steel, the insurer is not liable for:

    • distortion of the keel or damage resulting therefrom. The same applies to a depreciation in value caused by the fact that repairs are not carried out, 
    • damage resulting from striking against or contact with ice,
    • caulking of hull and deck.
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    Clause 20-9. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1

    Sub-clause 1 (a)  is first and foremost relevant to insurance of vessels deserving of preservation. Sub-clause 1 (b)  is not intended to cover more unforeseeable forms of striking against ice, e.g. where an ice floe has drifted out from a branch of a fjord to an open area of water where there is...

  • Clause 20-10. Limited cover of damage to machinery

    Unless otherwise agreed in the insurance contract, the insurer is only liable for damage to:

    • machinery with accessories,
    • pipelines and electric cables outside the machinery, and 
    • electronic equipment

    if the damage is a result of collision, striking, an earthquake, an explosion outside the engine room, fire, or of the vessel having sunk or capsized, or the vessel having been filled with water as a result of a breach of a hose or a pipe onboard the vessel provided the breach was not caused by corrosion or age. Damage to electronic equipment caused by heavy weather shall, however, be covered if damage to hull or superstructure occurred in the same casualty.

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    Clause 20-10. Limited cover of damage to machinery

    The Commentary to Cl. 17-13 was amended in 2016. Cl. 20-10 is identical to Cl. 17-13.  The Clause provides limited cover for damage to machinery. On the other hand, extended cover for damage to machinery may be effected in accordance with Cl. 17-18. The wording has been editorially amended in the...

  • Clause 20-11. Costs incurred in saving time/ Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12

    The insurer is not liable for costs incurred in connection with:

    • temporary repairs under Cl. 12-7, sub-clause 2, in excess of what he saves by a postponement of the final repairs,
    • the fact that the assured pursuant to the rules in Cl. 12-8 expedites repairs by extraordinary measures in order to limit his loss of time,
    • repairs and removal in accordance with the rules in Cl. 12-12, sub-clause 2, in excess of the amount that would have been recoverable if the lowest corrected bid had been accepted, nor for the loss of time under Cl. 12-11, sub-clause 2.
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    Clause 20-11. Costs incurred in saving time/Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12

    The provision excludes the time-loss element in the ordinary hull conditions from the cover under the coastal hull insurance conditions. 

  • Clause 20-12. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18

    • Ice damage deduction, cf. Cl. 12-15:
      Damage resulting from striking against or contact with ice is covered subject to the deductions stated in the insurance contract.
    • Electronic equipment damage deduction:
      Damage to electronic equipment is covered subject to the deductions stated in the insurance contract.
    • Machinery damage deduction, cf. Cl. 12-16:
      Damage to machinery etc. is covered subject to the deductions stated in the insurance contract. 
    • Deductible, cf. Cl. 12-18:
      For any one casualty, the amount stated in the insurance contract shall be deducted.
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    Clause 20-12. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18

    Sub-clause (a)  refers to ice damage. According to the 2013 Plan the deduction will be the subject of individual negotiations where inter alia the strength of the hull and ice class will be taken into account. According to the Plan, the deduction applies only to partial damage in accordance with...

  • Clause 20-13. Collision liability/Ref. Clause 13-1

    In addition to the limitations in Cl. 13-1, sub-clause 2, the following shall apply:
    The insurer does not cover liability under Cl. 13-1 for damage to or loss of fish or structures for keeping live fish, where the loss or damage occurs in connection with a call at the relevant structure. By a call is meant arrival, anchoring, working, discharging, loading and leaving.

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    Clause 20-13. Collision liability/Ref. Clause 13-1

    “By a call is meant arrival, anchoring, working, discharging, loading and leaving”, it is made clear that the insurance does not cover any collision liability to the relevant structure or any fish contained therein during the whole period when the insured vessel is calling at the structure. The...

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