The Plan

Scroll to the top

Section 5: Damage

  • Clause 15-14. Relationship to Chapter 12

    The provisions in Chapter 12 shall apply, subject to the following exceptions:

    • The insurance does not cover costs mentioned in Cl. 12-8 and Cl. 12-11, sub-clause 2. Nor does the insurance cover crew's wages, maintenance and similar expenses in connection with the running of the ship which fall under Cl. 4-11 or Cl. 12-13, sub-clause 1.
    • Instead of Cl. 12-12 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 ship would be deprived of income if the repairs are carried out at the repair yard 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 at one of the yards that have submitted tenders, he may demand that that yard's tender be disregarded. 
      The assured decides which yard shall be used, but the insurer's liability is limited to the amounts mentioned in the preceding sub-clauses. 
    View CommentaryGo to full Commentary page

    Clause 15-14. Relationship to Chapter 12

    Sub-clause 1 determines, by way of introduction, that the rules in Chapter 12 apply fully to war hull insurance as well. Cl. 15-14 does differ from Chapter 12 on one important point, however. The provision is aimed at solving an underlying problem when the assured has both hull cover and...

  • Clause 15-15. Deductible

    If a deductible is stipulated in the insurance contract, cf. Cl. 12-18, the following shall apply:
    If the ship 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.

    View CommentaryGo to full Commentary page

    Clause 15-15. Deductible

    The provision follows Cl. 12-18, which establishes that rules relating to the deductible should be stated in the insurance contract . The provision defines the concept of casualty when the ship is returned following a seizure or requisition, and establishes that all damage, etc., sustained by the...