The Plan

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Chapter 1: Introductory provisions

  • Clause 1-1. Definitions

    For the purposes of this Plan

    • the insurer means the party who under the terms of the contract has undertaken to grant insurance,
    • the person effecting the insurance means the party who has entered into the insurance contract with the insurer,
    • the assured means the party who is entitled under the insurance contract to compensation or the sum insured. In liability insurance, the assured is the party whose liability for damages is covered,
    • the broker means the entity that is instructed by the person effecting the insurance to act as an intermediary between the person effecting the insurance and the insurer.
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    Clause 1-1. Definitions

    This Clause was amended in 2016. The definitions of “loss” and “particular loss” in previous versions were deleted and a new definition of “broker” was added in sub-clause (d). Sub-clauses (a), (b) and (c) remain unchanged. Sub-clause (a) requires no comments. Sub-clause (b) gives a definition of...

  • Clause 1-2. Policy

    When the contract is concluded, the person effecting the insurance may demand that a policy be issued. The policy shall confirm that a contract has been entered into and shall refer to the conditions. If the insurer wishes to invoke conditions which are not set out in the policy or incorporated in it by reference, he has the burden of proving that the person effecting the insurance was aware of the relevant condition and that it was applicable.

    The person effecting the insurance must raise any objections to the content of the policy without undue delay. If he fails to do so, the policy shall be considered approved.

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    Clause 1-2. Policy

    Sub-clause 1, first sentence, was editorially amended in 2016 replacing the term “require” with “demand”. Sub-clause 1, first sentence, states that the person effecting the insurance may demand that a policy be issued . A “policy” according to the Plan is the insurer´s written confirmation of the...

  • Clause 1-3. Contracts entered into through a broker

    The broker acts on behalf of the person effecting the insurance in all cases except those where the insurer has given written authority to the broker to perform a specific function on behalf of the insurer.

    If the person effecting the insurance demands that a policy be issued in accordance with Cl. 1-2 above, the broker shall assist in the issuing of such a policy. If the broker issues a policy on behalf of the insurer, the policy shall explicitly state that it has been issued by the broker on the authority of the insurer.

    The broker is authorised to receive any return of premium or settlements of claim on behalf of the person effecting the insurance and/or the assured. The person effecting the insurance and/or the assured may at any time change or withdraw this authorisation by giving notice to the insurer. 

    The person effecting the insurance may pay the premium due to the insurer through a broker, but in accordance with sub-clause 1 the premium shall not be deemed paid until actually received by the insurer.

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    Clause 1-3. Contracts entered into through a broker

    This Clause was amended in 2016. Sub-clause 1 was rewritten based on the new definition of “broker” in Cl. 1-1 (d). The new sub-clause 1 replaced both sub-clauses 1 and 2 in earlier versions of the Plan. In sub-clause 2 (former sub-clause 3), first sentence, the word “requires” was replaced with...

  • Clause 1-4. Jurisdiction and choice of law

    If insurance based on this Plan is effected with a Nordic claims leader, it is agreed that legal proceedings against the claims leader concerning any matter, dispute or disagreement of any kind which may arise during or in connection with or which in any way concerns the insurance contract, may only be instituted before the courts in the venue where the head office of the claims leader is located and on the basis of the law of the venue of the claims leader, and that law shall apply exclusively. 

    If insurance based on this Plan is effected with a non-Nordic claims leader, it is agreed that Norwegian law shall apply.

    The co-insurer(s) may be sued in the venue of the claims leader.

    Any changes in the terms of the agreement set out in sub-clause 1 must be in writing.

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    Clause 1-4. Jurisdiction and choice of law

    This Clause was amended in the 2013 Plan to adapt the Plan to its future application in Denmark, Finland and Sweden. The word “Nordic” in Cl. 1-4 embraces only Denmark (including Greenland and the Faroe Islands), Finland (including Åland), Norway and Sweden. Iceland is a non-Nordic country in the...

  • Clause 1-5. Insurance period

    Unless otherwise agreed, the insurer's liability attaches when the person effecting the insurance or the insurer has approved the conditions stipulated by the other party.

    If the insurer's liability under the agreement attaches on a certain day without any indication of time, liability commences at 00:00 hours. If an insurance remains in effect until a certain day without any indication of time, liability ceases at 23:59:59 hours. The time shall be based on UTC.

    The insurance terminates on expiry of the agreed insurance period, unless the parties agree to renew it. In the event of renewal, the conditions then agreed shall apply. The provision in Cl. 1-2 above shall apply correspondingly.

    If it has been agreed that the insurance shall attach for a period longer than one year, the insurance period shall nevertheless be deemed to be one year in relation to Cl. 2-2, Cl. 2-11, Cl. 5-3, last sub-clause, Cl. 5-4, sub-clause 3, Cl. 6-3, sub-clause 1, Cl. 12-2, Cl. 16-4, sub-clause 2, and Cl. 16-14.

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    Clause 1-5. Insurance period

    This provision corresponds to Cl. 4 of the 1964 Plan and relevant sections of the Nordic Insurance Contracts Acts (Nordic ICAs). Sub-clause 4 was added in the 2003 Version of the 1996 Plan. Sub-clause 4 was further amended in the 2007 version in connection with the amendment to Cl. 12-2. Changes...