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Section 5: Supplementary covers

  • Clause 19-22. Applicable rules

    If supplementary cover has been agreed according to Cl. 19-23 to Cl. 19-27 the rules in Chapter 19, Sections 1 to 4, shall apply insofar as they have not been departed from in Section 5.

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    Clause 19-22. Applicable rules

    The Commentary was rewritten in the 2013 Plan. This Clause maintains the principle that it is possible to expand the builders’ risks insurance by taking out supplementary covers. A factor common to all such supplementary covers is that the Clauses of Chapter 19, Sections 1 to 4, as a rule are...

  • Clause 19-23. Insurance of additional costs in connection with rebuilding and/or building of a new subject-matter insured

    The insurance covers the difference between compensation paid under the builders’ risks insurance, cf. Sections 1 and 2, and the costs of rebuilding/building of a new subject-matter insured.

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    Clause 19-23. Insurance of additional costs in connection with rebuilding and/or building of a new subject-matter insured

    The heading and the Commentary were amended in the 2013 Plan. This Clause concerns insurance of additional costs in connection with the rebuilding/building of a new subject-matter insured. It therefore only applies in the event of a total loss necessitating rebuilding and does not apply to repair...

  • Clause 19-24. Insurance of the yard’s liability for the buyer’s interest claim for instalments paid

    The insurance covers the yard’s liability for the buyer’s interest claim under the building contract in the event that the obligation to deliver ceases to apply due to loss or damage which is recoverable under Cl. 19-12. Interest is calculated from the time of payment of the individual instalment up to the time of the total loss.

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    Clause 19-24. Insurance of the yard’s liability for the buyer’s interest claim for instalments paid

    The Commentary was amended in the 2013 Plan. It is specified in the Clause heading that this supplementary cover applies to the yard’s liability for the buyer’s claim for interest on instalments paid. This is done in order to make it clear that it is a question of a liability insurance taken out ...

  • Clause 19-25. Insurance of the yard’s loss of interest in the event of late delivery

    The insurance covers the yard’s loss of interest resulting from late delivery due to damage which is recoverable under the builders’ risks insurance, cf. Sections 1 and 2.

    For any one casualty a deductible period shall be determined which is calculated from the start of the casualty and lasts until the delay resulting from the casualty is equivalent to the deductible period stated in the insurance contract. Loss of interest during the deductible period is not recoverable.

    The insurer’s liability resulting from any one casualty is limited to the sum insured per day multiplied by the number of compensation days per casualty stated in the insurance contract.

    If the assured and the buyer agree to postpone the delivery date due to circumstances which do not provide any basis for compensation under this supplementary cover, the insurance is automatically extended subject to an additional premium as agreed in the insurance contract until the buyer has in actual fact taken delivery of the subject-matter insured. Cl. 19-2, sub-clause 3, shall apply correspondingly.

    If a late delivery is caused by a combination of several different perils and one or more of these perils are not covered by the insurance, the insurer shall cover a proportional share of the loss of interest. The calculation shall be based on the delay which each of the perils would have entailed in excess of the deductible period if they had occurred separately.

    If the assured takes measures to avert or minimise the delay covered by the insurance, the insurer shall not be liable for more than the amount he should have paid if no such measures had been taken. If the measures result in time being saved for the assured, he shall bear a share of the costs of the said measures that is proportional to the time saved for his account. 

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    Clause 19-25. Insurance of the yard’s loss of interest in the event of late delivery

    The Clause was amended in the 2013 Plan. In previous versions of the Norwegian Marine Insurance Plan the insurance covered both the yard´s loss of interest and its daily penalties, but the daily penalties was removed from the cover in the 2013 Plan. Further, there was made some amendments in...

  • Clause 19-26. Insurance of the yard’s daily penalties in the event of late delivery

    The insurance covers the yard’s daily penalties resulting from late delivery due to damage which is recoverable under the builders’ risks insurance, cf. Sections 1 and 2.

    For any one casualty a deductible period shall be determined which is calculated from the start of the casualty and lasts until the delay resulting from the casualty is equivalent to the deductible period stated in the insurance contract. Daily penalties during the deductible period are not recoverable.

    The insurer’s liability resulting from any one casualty is limited to the sum insured per day multiplied by the number of compensation days per casualty stated in the insurance contract.

    If the assured and the buyer agree to postpone the delivery date due to circumstances which do not provide any basis for compensation under this supplementary cover, the insurance is automatically extended subject to an additional premium as agreed in the insurance contract until the buyer has in actual fact taken delivery of the subject-matter insured. Cl. 19-2, sub-clause 3, shall apply correspondingly.

    If a late delivery is caused by a combination of several different perils and one or more of these perils are not covered by the insurance, the insurer shall cover a proportional share of the daily penalties. The calculation shall be based on the delay which each of the perils would have entailed in excess of the deductible period if they had occurred separately.

    If the assured takes measures to avert or minimise the delay covered by the insurance, the insurer shall not be liable for more than the amount he should have paid if no such measures had been taken. If the measures result in time being saved for the assured, he shall bear a share of the costs of the said measures that is proportional to the time saved for his account.

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    Clause 19-26. Insurance of the yard’s daily penalties in the event of late delivery

    As stated in the Commentary on Cl. 19-22, in the 2013 Plan it was decided to split up the supplementary cover for the yard’s loss of interest and daily penalties in the event of late delivery into two different clauses. This has been done in order to make it easier for the yard in the event it...

  • Clause 19-27. Towage and removal of the subject-matter insured

    The insurance covers towage or removal of the subject-matter insured or components thereof.

    In the case of towage on a barge, the insurance also covers loss of or damage to the subject-matter insured or components thereof which occurred during discharge. Subject to agreement, the insurance also covers loss or damage that occurred during loading.

    In the case of towage, the following safety regulations shall apply, cf. Cl. 3-25, sub-clause 1:

    • The tow shall be surveyed and approved by a surveyor.
    • The surveyor shall be approved in advance by the insurer.
    • The surveyor shall issue a towage approval certificate which shall be  sent to the insurer prior to the start of the tow.
    • The assured shall ensure that the towage approval certificate is signed  by the shipping company before the tow begins.


    If the subject-matter insured is moved other than by towage, sub-clause 3 applies correspondingly.

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    Clause 19-27. Towage and removal of the subject-matter insured

    This Clause is new in the 2013 Plan. The Clause has been placed in Chapter 19, Section 5, which means that it is a “supplementary cover” that may be agreed on and included in the ordinary builders’ risks insurance contract . The rationale for incorporating a clause regarding towage under the...