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Section 3: Separate insurances against total loss

  • Clause 18-39. Insurance against total loss and excess collision liability (hull interest insurance)

    If insurance has been effected against total loss and excess collision liability (hull interest insurance), the insurer is liable for the amount stated in the insurance contract:

    • for total loss in accordance with the rules contained in Cl. 18-8 to Cl. 18-16, 
      and 
    • separately for the assured’s liability for collision or striking in  accordance with the rules in Cl. 18-35 to
      Cl. 18-37, when the H&M  insurer does not cover the liability because it exceeds his maximum  liability as per Cl. 18-37.
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    Clause 18-39. Insurance against total loss and excess collision liability (hull interest insurance)

    This Clause corresponds to Cl. 18-15 of the 1996 Plan, but is in the 2013 Plan verbatim the same as Cl. 14-1. Similarly to Cl. 18-37 it introduces a cap on the collision/striking liability. Reference is made to the Commentary to Cl. 14-1. Cl. 18-39 (b) provides that the hull interest insurer, as...

  • Clause 18-40. Insurance against loss of long-term freight income (freight interest insurance)

    If insurance has been effected against loss of long-term freight income (freight interest insurance), the insurer is liable for total loss in accordance with the rules contained in Cl. 18-8 to Cl. 18-16 for the amount stated in the insurance contract.

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    Clause 18-40. Insurance against loss of long-term freight income (freight interest insurance)

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 14-2. Reference is made to the Commentary to Cl. 14-2.

  • Clause 18-41. Common rules for separate insurances against total loss

    The insurer’s liability is subject to the condition that the assured claims for a total loss against the H&M insurer. If the H&M insurer has paid the sum insured in accordance with Cl. 4-21, the assured may claim compensation from the insurer provided that he is prepared to transfer the wreck to the insurer. If both hull interest insurance and freight interest insurance have been effected, the hull interest insurer has first right to the wreck. 

    The insurer is not liable for any loss arising from measures to avert or minimise the loss, cf. Cl. 4-7 to Cl. 4-12. 

    The rules contained in Cl. 18-2 to Cl. 18-16 apply correspondingly. 

    The rules contained in Cl. 1-4, Cl. 9-4, Cl. 9-5, first sentence, Cl. 9-6 and Cl. 9-8, cf. Cl. 9-2, apply correspondingly to the relationship between the insurers for the special insurances against total loss, etc.,
    and the claims leader under the H&M insurance.

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    Clause 18-41. Common rules for separate insurances against total loss

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 14-3. Reference is made to the Commentary to Cl. 14-3.

  • Clause 18-42. Limitations on the right to insure separately against total loss

    If hull interest insurance has been effected for more than 25 % of the agreed insurable value under the hull insurance which covers the same perils, the excess part of the hull interest insurance is void. The same applies to freight interest insurance. 

    If more than one hull interest insurance or freight interest insurance have been effected, the insurer’s liability is reduced proportionately. 

    The rules in sub-clause 1 do not prevent the assured from effecting, in addition to hull interest insurance and freight interest insurance, insurance with an open insurable value against loss of an existing time charterparty or a contract for a series of operations. If the assured receives compensation under such an insurance, the liability of the freight interest insurer under Cl. 18-40 is reduced correspondingly.

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    Clause 18-42. Limitations on the right to insure separately against total loss

    This Clause was new in the 2013 Plan and is verbatim the same as Cl. 14-4. Reference is made to the Commentary to Cl. 14-4.