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Section 5-5: Damage

  • Clause 18-72. Relationship to Section 2-3 above

    The provisions in Section 2-3 above shall apply, subject to the following exceptions:

    • The insurance does not cover costs mentioned in Cl. 18-25 and Cl. 18-28, sub-clause 2. Nor does the insurance cover crew's wages, maintenance and similar expenses in connection with the running of the MOU which fall under Cl. 4-11 or Cl. 18-30, sub-clause 1.
    • Instead of Cl. 18-29 the following shall apply:
      The tenders submitted shall, for the sake of comparison, be adjusted by adding the costs of removal to the tender amount. To the adjusted tenders shall be added an amount equivalent to the product of the daily amount under the loss of hire insurance and the total number of days during which the MOU would be deprived of income if the repairs are carried out at the repair location in question. The resulting sum total is referred to as the total cost of repairs. If, because of special circumstances, the assured has justifiable reason to object to the repairs being carried out by one of the repairers that have submitted tenders, he may demand that that repairer's tender be disregarded. The assured decides which repairer shall be used, but the insurer's liability is limited to the amounts mentioned in the preceding sub-clauses. 
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    Clause 18-72. Relationship to Section 2-3 above

    This Clause was new in 2016 and is largely verbatim the same as Cl. 15-14 apart from some editorial amendments and correcting the cross references to the relevant Section and clauses in Chapter 18. Reference is made to the Commentary to Cl. 15-14.

  • Clause 18-73. Deductible

    In addition to Cl. 18-33, the following shall apply:If the MOU has been seized or requisitioned for use by a foreign State power, and is returned without the assured being entitled to claim for a total loss, any loss that has arisen during this intervention shall in its entirety be regarded as caused by a single casualty.

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    Clause 18-73. Deductible

    This Clause was new in 2016 and is verbatim the same as Cl. 15-15 apart from some editing and correcting the cross reference to the relevant Clause in Chapter 18. Reference is made to the Commentary to Cl. 15-15.