The Plan

Scroll to the top

Section 7: Loss of hire insurance for fishing vessels

  • Clause 17-56. Relationship to Chapter 16

    The provisions of Chapter 16 apply with the changes prescribed in Cl. 17-57 to Cl. 17-61.

    View CommentaryGo to full Commentary page

    Clause 17-56. Relationship to Chapter 16

    Loss of time for fishing vessels is covered on the basis of Chapter 16, subject to the changes that follow from Cl. 17-57 to Cl. 17-61. These special rules are intended to apply only to fishing vessels and not to smaller freight vessels that are also insured on the basis of Chapter 17, Sections 1...

  • Clause 17-57. Liability of the insurer/applies instead of Clause 16-1

    The insurance covers loss due to the vessel being wholly or partially deprived of income on account of damage to the vessel, provided that the damage is recoverable under Chapter 17, Section 2, or would have been recoverable if no deductible had been agreed, see Cl. 12-18. If the hull insurance has been effected on conditions other than those of the Plan, and these conditions have been accepted in writing by the insurer, the rules in Chapter 17, Section 2, shall be replaced by the corresponding conditions of the insurance concerned when assessing whether the damage is recoverable. If the hull insurance provides extended cover under Chapter 17, Section 3, the rules in the first and second sentences shall apply correspondingly in relation to Section 3.

    View CommentaryGo to full Commentary page

    Clause 17-57. Liability of the insurer/applies instead of Clause 16-1

    This Clause corresponds to Cl. 16-1, but replaces Cl. 16-1 in its entirety because it is the provisions regarding hull insurance in Chapter 17, Section 2, that determine whether compensation is payable under the loss-of-hire cover. Sub-clause 2 of Cl. 16-1 has not been incorporated and will...

  • Clause 17-58. Total loss/applies instead of Clause 16-2

    The insurer is not liable for loss of time resulting from a casualty that gives the assured the right to compensation for total loss under Chapter 11 with Cl. 11-3, sub-clause 2, amended pursuant to Cl. 17-11 or under the corresponding conditions in the hull insurance that apply to the ship pursuant to Cl. 17-57, second sentence.

    View CommentaryGo to full Commentary page

    Clause 17-58. Total loss/applies instead of Clause 16-2

    This Clause corresponds to Cl. 16-2, but is subject to the change that follows from Cl. 17-11 to the effect that the threshold for condemnation has been set at 90 %.

  • Clause 17-59. Calculation of compensation for fishing vessels/Ref. Clause 16-3

    The insurance does not cover loss that is due to the vessel being deprived of income from fishing as a result of regulatory measures introduced by the authorities or the fact that the authorities have stopped fishing activities.

    Quotas which are not fished in full during the quota year due to damage to the vessel, cf. Cl. 17-57, and which are allowed by the authorities to be transferred to a new quota year, shall be regarded as quotas fished in the original quota year, if the quota is fished in the new quota year. The same applies to quotas transferred by the vessel to other vessels in the quota year.

    The claims adjustment shall be issued as soon as possible after the quota year is over, but in cases where quotas are transferred to a new quota year, the claims adjustment shall be issued as soon as possible after the end of the new quota year, cf. Cl. 5-2 and Cl. 5-6.

    View CommentaryGo to full Commentary page

    Clause 17-59. Calculation of compensation for fishing vessels/Ref. Clause 16-3

    When calculating compensation for loss of time for fishing vessels, Cl. 16-3 will apply in full in addition to Cl. 17-59, but Cl. 17-59 contains important limitations on the extent of the compensation that can be claimed under the loss-of-hire insurance. The rationale is that calculating...

  • Clause 17-60. The daily amount for fishing vessels/applies instead of Clause 16-5

    The assured's loss of income per day (the daily amount) shall be calculated on the basis of the average income per day from fishing for vessels of the type and size in question and the geographical area in which it is natural for the vessel to deliver fish during the period when the vessel is deprived of income, less such expenses as the assured saves or ought to have saved due to the ship not being regularly operated.

    View CommentaryGo to full Commentary page

    Clause 17-60. The daily amount for fishing vessels/applies instead of Clause 16-5

    This Clause corresponds to Cl. 16-5, but has been rewritten because fishing vessels do not normally have freight contracts and freight rates, but have earnings from fish that are delivered to a fish landing site.  Ordinarily, there is no guaranteed price for fish delivered to a fish landing site,...

  • Clause 17-61. Agreed daily amount for fishing vessels/applies instead of Clause 16-6

    If it is stated in the insurance contract that a certain amount per day shall be paid in compensation for loss of income, the said amount is the maximum compensation that may be paid out per day under Cl. 17-60 unless it is clearly evident from the contract that the amount is an agreed daily amount.

    View CommentaryGo to full Commentary page

    Clause 17-61. Agreed daily amount for fishing vessels/applies instead of Clause 16-6

    The provision establishes that a daily amount agreed in the insurance contract is to be construed as the sum insured per day and the insurer’s maximum liability per day, unless it is clearly evident that the daily amount is to be regarded as an agreed amount. Under this approach, the presumption...