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Section 2-1: General rules relating to the scope of the H&M insurance

  • Clause 18-2. Objects insured

    The insurance covers:

    • the MOU’s hull and superstructure,
    • all its machinery, equipment, plant and spare parts which:
      1. belong to the assured or have been borrowed, leased or purchased with a vendor's lien or similar encumbrance, and
      2. are on board, above water, subsea or in the well,
    • bunkers and lubricating oil on board.

     

    The insurance does not cover:

    • supplies, engine and deck accessories and other articles intended for consumption,
    • helicopters,
    • blueprints, plans, specifications, logs, etc.,
    • mini-submarines and remote operated vehicles during operation.
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    Clause 18-2. Objects insured

    This Clause corresponds to Cl. 18-2 of the 1996 Plan but was edited in the 2013 Plan. This provision is divided into two and patterned on Cl. 10-1 and Cl. 10-2. Cl. 18-2 regulates the objects of the insurance, while the cover of objects removed from the MOU is contained in Cl. 18-3. Sub-clause 1...

  • Clause 18-3. Objects temporarily removed or separated etc. from the MOU

    The insurance covers:

    • Objects mentioned in Cl. 18-2, sub-clause 1 (b), which:
      1. are on board a vessel, structure or fixed installation, which is moored to or is in the vicinity of the insured MOU and has been used in connection with that MOU, or
      2. have been temporarily removed from the MOU for repairs, storage or the like,
      3. are in storage, or in transit to/from places of storage without being covered by point (2).
        The sum insured for such objects constitutes 10% of the sum insured under H&M insurance of the MOU. Cl. 2-4 does not apply. A separate deductible shall be applied.
    • The mooring/anchoring system and the like of the insured unit, which has been installed at the place of operation.
    • Blow-out preventers that are left on the well head or the seabed adjacent to the well because of:
      1. a casualty which is covered by the insurance, or
      2. measures taken to avert such casualty.
    • Buoys, risers, umbilicals and associated subsea equipment which are  installed at the place of operation and are owned by the assured, or  which the assured is  contractually obliged to insure.
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    Clause 18-3. Objects temporarily removed or separated etc. from the MOU

    This Clause corresponds to Cl. 18-3 of the 1996 Plan but was edited and amended in the 2013 Plan. The provision supersedes the provision relating to “insurance of objects removed from the ship” in Cl. 10-2, which does not quite fit in with insurance of MOUs. Sub-clause (a) corresponds to Cl. 10-2...

  • Clause 18-4. Loss due to ordinary use

    The insurer is not liable for loss that is a normal consequence of the use of the insured MOU and its equipment.

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    Clause 18-4. Loss due to ordinary use

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 10-3. Reference is made to the Commentary to Cl. 10-3.

  • Clause 18-5. Extension of the insurance

    If, upon expiry of the insurance period, the MOU has sustained damage for which the insurer is liable and which is of such a nature that repairs are necessary to make the MOU compliant with technical and operational safety requirements, the insurance is extended until the MOU has arrived at a place where permanent repairs can be effected. If repairs are carried out at that place, the insurance is extended until the repairs are completed.

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    Clause 18-5. Extension of the insurance

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 10-10. Reference is made to the Commentary to Cl. 10-10. 

  • Clause 18-6. Liability of the insurer if the MOU is salvaged by the assured

    If the insured MOU is salvaged by a vessel or another unit belonging to the assured, the insurer is liable as if the salvage operation had been carried out by a third party.

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    Clause 18-6. Liability of the insurer of the MOU is salvaged by the assured

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 10-11. Reference is made to the Commentary to Cl. 10-11.

  • Clause 18-7. Reduction of liability in consequence of an interest insurance

    If the assured receives compensation under a hull interest insurance or a freight interest insurance, and the amount paid under the respective insurances exceeds 25 % of the agreed insurable value as per Cl. 18-1 (a) applicable to the H&M insurance against the same perils, the H&M insurer’s liability is reduced correspondingly.

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    Clause 18-7. Reduction of liability in consequence of an interest insurance

    This Clause was new in the 2013 Plan and is by and large verbatim the same as Cl. 10-12 apart from some editorial amendments. Reference is made to the Commentary to Cl. 10-12.