This Commentary was rewritten in the 2013 Plan.
This Clause deals with the insurer’s indemnification of costs incurred by the assured for the “necessary removal of wrecks”. In this connection, “wreck” means the wreck of the subject-matter insured or its components. Removal is necessary when it is impossible for the yard to continue to operate without removing the wreck. Only costs related to the removal of the wreck from sites owned or used by the yard are recoverable, and only the expenses that exceed the value of what is removed, on condition that such costs are reasonable.
If the subject-matter insured/wreck causes an obstruction to traffic in areas belonging to or used by others, such as in a port area owned by the public authorities, removal costs must be covered as wreck removal liability under Cl.19-20.