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Section 4: Right of the insurer to the object insured upon payment of a claim

  • Clause 5-19. Right of the insurer to take over the object insured

    Upon payment of compensation for damage or total loss, the insurer is subrogated to the assured's rights in the object insured or such parts of the object insured as he has indemnified, unless he, no later than the time of payment, waives this right. Cl. 2-4 shall apply correspondingly.

    In the event of a total loss, the assured shall furnish the insurer with title to the object insured and hand over all documents that are material to him as owner. Costs incurred in this connection shall be borne by the insurer.

    In the event of damage, Cl. 5-13, sub-clause 2, first sentence, shall apply correspondingly.

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    Clause 5-19. Right of the insurer to take over the object insured

    This Clause corresponds to Clauses 102 and 103 of the 1964 Plan. Sub-clause 1 is a merger of sub-clauses 1, first sentences, of clauses 102 and 103 of the 1964 Plan, and confirms the principle that, upon payment of compensation, the insurer is subrogated to the assured’s rights in the object...

  • Clause 5-20. Charges on the object insured

    If the insurer, after having taken over all or part of the object insured pursuant to Cl. 5-19, becomes liable for the costs of its removal, the assured shall reimburse him the costs which exceed the value of what is removed.

    If there is a charge on the object insured in respect of liability not covered by the insurance, the assured shall indemnify the insurer to the extent thereof.

    If the assured, for the purpose of limiting his liability to third parties, has to abandon the ship, this may be done irrespective of the insurer's rights under Cl. 5-19.

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    Clause 5-20. Charges on the object insured

    This Clause corresponds to Cl. 104 of the 1964 Plan. Sub-clause 1 regulates the position where the insurer is ordered to remove objects (wreck, equipment) which he has taken over. In the 1964 Plan, the rule applied only to the insurer’s take-over of the wreck; now it also applies to damage, e.g.,...

  • Clause 5-21. Preservation of the object insured

    The insurer is liable for costs of necessary measures to preserve the object insured incurred after a casualty that entitles the assured to compensation for total loss. The assured shall also implement such measures after the object insured has been taken over by the insurer, if the latter is unable to protect his own interest in that object.

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    Clause 5-21. Preservation of the object insured

    This Clause is identical to Cl. 105 of the 1964 Plan. Under Cl. 3-30, it is the assured’s duty to take measures to avert or minimise loss, and under Cl. 4-12 the insurer shall cover the costs involved in such measures. However, it may be doubtful whether these rules are applicable if it has alrea...

  • Clause 5-22. Right of subrogation of the insurer in respect of damage to the object insured

    The insurer is subrogated to the assured's claim against third parties who are liable to pay compensation for damage to the object insured that has been covered by the insurer. However, this does not apply to claims under insurance contracts.

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    Clause 5-22. Right of subrogation of the insurer in respect of damage to the object insured

    This Clause is identical to Cl. 106 of the 1964 Plan. When the insurer takes over the object insured, the question arises as to what will happen to the claims for damages the assured has against third parties in connection with damage to the object insured. If a claim has arisen from the casualty...