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Section 6-2: Loss of or damage to the MOU

  • Clause 18-87. Objects insured/Ref. Clause 18-2

    The insurance covers:

    • the MOU and components, equipment and materials manufactured or procured for the Project, 
    • the costs in connection with design, drawings and other planning of the Project, and
    • bunkers and lubricating oil on board.
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    Clause 18-87. Objects insured/Ref Clause 18-2

    This Clause is nearly verbatim the same as Cl. 19-9 apart from letter (b), which is not incorporated into Cl. 18-87 as there is no need to distinguish between yard and owner’s supplies in the construction risks insurance when the risk is assumed by the assured. Letter (a) comprises all components...

  • Clause 18-88. Insurable value

    The insurable value at the completion of the Project constitutes:

    • the original project contracts price less subsequently agreed deductions,
    • subsequently agreed additional amounts mentioned in the insurance contract,
    • the value of the owners deliveries, and
    • in the event of conversion and upgrade projects, the value of the existing vessel or MOU.
       

    Prior to the completion of the Project, the insurable value constitutes the value under sub-clause 1 with
    deductions for:

    • the value of the project works not performed, and 
    • the value of components, equipment and materials not manufactured or procured.
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    Clause 18-88. Insurable value

    This Clause is nearly verbatim the same as Cl. 19-10 but edited as appropriate to fit construction and rebuilding of MOUs. A new letter (d) is added to sub-clause 1. The Clause defines the insurable value in construction risks insurance.  Sub-clause 1 defines the insurable value when the Project ...

  • Clause 18-89. Compensation in the event of a total loss/Ref. Clause 4-1

    In the event of a total loss the insurer covers the sum insured, but not in excess of the insurable value,
    cf. Cl.18-88.

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    Clause 18-89. Compensation in the event of a total loss/Ref. Clause 4-1

    This Clause corresponds to Cl. 19-13 but is simplified in accordance with the general rule in Cl. 4-1.  In the event of total loss, cf. Cl. 18-90, the insurer covers the sum insured, but not in excess of the insurable value, cf. Cl. 18-88. According to Cl. 18-88, the insurable value is defined as...

  • Clause 18-90. Total Loss/Ref. Section 2-2

    The provisions contained in Section 2-2 above shall apply with the following amendment to Cl. 18-10: 

    The assured may claim compensation for a total loss if casualty damage to the Project is so extensive that the costs of repairs amount to more than 100 % of the insurable value as per Cl. 18-88.

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    Clause 18-90. Total Loss/Ref. Section 2-2

    Cl. 18-90 corresponds to Cl. 19-11. However, in line with Cl. 18-10 the insurable value is the relevant figure to put into the condemnation formula as opposed to the sum insured in Cl. 19-11 if these two amounts are different, see further the Commentary to Cl. 18-88 and Cl. 18-89. Cl. 18-90...

  • Clause 18-91. Damage/Ref. Section 2-3

    If the MOU or parts thereof have been damaged without Cl. 18-90 being applicable, the rules in Section 2-3 shall apply, as amended by Cl. 18-92 and Cl.18-93.

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    Clause 18-91. Damage/Ref. Section 2-3

    Cl. 18-91 expressly provides that Section 2-3 shall apply to the construction risks insurance, but as amended by Cl. 18-92 and Cl. 18-93. If the Project (or components and materials for the Project) are damaged without constituting a total loss pursuant to Cl. 18-90, the insurer shall indemnify t...

  • Clause 18-92. Error in design, etc.

    If the damage is a result of an error in design, faulty workmanship or faulty material, the insurer is not liable for the costs of renewing or repairing the part or parts of the hull, machinery or equipment which were not in proper condition.

    For parts and components which are completed, Cl. 18-20 shall apply.

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    Clause 18-92. Error in design, etc.

    Sub-clause 1 is verbatim the same as Cl. 19-15. Reference is made to the Commentary to Cl. 19-15. Sub-clause 2 provides that for parts or components that are completed, Cl. 18-20 shall apply. This entails that for such parts or components there will be the same cover for error in design etc. unde...

  • Clause 18-93. Costs incurred in order to save time/Ref. Clauses 18-24, 18-28 and 18-29

    For damage to the Project which occurs and is discovered whilst at a yard or any onshore project location, the insurer is not liable for costs incurred in connection with:

    • temporary repairs according to Cl. 18-24, sub-clause 2, beyond the amount he saves through the postponement of the permanent repairs,
    • repairs and removal according to Cl. 18-29, sub-clause 2, beyond the amount that would have been recoverable if the lowest adjusted tender had been accepted, or
    • loss of time according to Cl. 18-28, sub-clause 2.
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    Clause 18-93. Costs incurred in order to save time/Ref. Clauses 18-24, 18-28 and 18-29

    Cl. 18-93 corresponds to Cl. 19-17 and exclude from the construction risks insurance the so called 20% p.a. rule. This limitation of the cover as compared with the cover for MOUs in operation only applies when damage to the Project occurs and is discovered whilst at a yard or any other onshore...