Commentary

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Section 3: Hull insurance - extended cover

  • Clause 17-18. Extended cover of damage to machinery

    Section 2 applies in full to the other parts of the hull insurance.

    The fact that extended cover for damage to machinery has been agreed will be evident from the insurance contract, see sub-clause 1. In such case, damage to machinery, electronic equipment, etc. will be covered in accordance with the ordinary rules of Chapter 12 of the Plan, with certain minor exceptions. These follow in part directly from sub-clause 1, in part from sub-clauses 2 and 3. Sub-clause 1 refers to Cl. 17-14 and Cl. 17-15, which thereby apply correspondingly in the event of extended cover for damage to machinery.

    Sub-clause 2 states that damage must have been caused by the listed perils in order to be covered. The insurer is liable for damage to other machinery in the usual way, on the basis of the all-risk principle set out in Cl. 2-8. The remainder of the provision is unchanged.

    Sub-clause 3 establishes that costs of removal of the vessel in connection with damage to seine winches and the like are not covered if the damage to machinery is subject to a deduction pursuant to the rules of Cl. 17-15 (c). It is illogical, in a way, that the cover of removal costs will thus be better under Cl. 17-13 (c) than under the present sub-clause in cases where the damage to seine winches and the like is a consequence of the vessel having been subjected to a collision, striking, etc. However, the solution corresponds to the solution that was introduced in the Norwegian Plan of 1996.

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    Clause 17-18. Extended cover of damage to machinery

    Where the insurance contract states that Cl. 17-13 shall not apply to the hull insurance, the rules in Chapter 12, together with the amendments that follow from Cl. 17-14 and Cl. 17-15, shall apply to the cover of damage to machinery, electronic equipment, etc. Damage to factory machinery for the...