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Chapter 13: Liability of the assured arising from collision or striking

  • Clause 13-1. Scope of liability of the insurer

    The insurer will indemnify the assured for loss which is a result of liability imposed on the assured due to collision or striking by the ship, its accessories, equipment or cargo, or by a tug used by the ship.

    However, the insurer will not cover:

    • liability arising while the ship is engaged in towing, or caused by the towage, unless this takes place in connection with a salvage operation referred to in Cl. 3-12, sub-clause 2,
    • liability for personal injury or loss of life,
    • other loss suffered by passengers or crew on the insured ship,
    • liability for damage to or loss of cargo, other effects on board the insured ship, or equipment which the ship uses,
    • liability to charterers or others who have an interest in the insured ship,
    • liability for pollution damage and damage resulting from fire or explosion caused by oil or other liquid or volatile substances, contamination damage caused by radioactive substances and damage to coral reefs and other environmental damage. The insurer is nevertheless liable if, in the event of a collision with another ship, liability is imposed on the assured for such damage to the other ship with equipment and cargo,
    • liability for loss caused by cargo or bunkers after grounding or striking against ice,
    • liability for loss caused by the ship's use of anchor, mooring and towing gear, loading and discharging appliances, gangways and the like, and liability for damage to or loss of these objects,
    • liability for removal of the wreck of the insured ship and for obstructions to traffic created by the insured ship,
    • refund of amounts which a third party has paid by way of compensation for loss as mentioned under sub-clauses (a) to (i) above.
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    Clause 13-1. Scope of liability of the insurer

    The wording was amended editorially in the 2013 Plan in order to better protect the insurer form being subject to a direct action in a non-Nordic country, cf. the corresponding amendments made to Cl. 4-17. Sub-clause 1 contains a specific statement of the liability the hull insurer shall cover. (...

  • Clause 13-2. Limitation of liability based on tonnage or value of more than one ship

    If the assured's liability is limited on the basis of the tonnage or value of more than one ship, and these ships are insured with different insurers, each individual insurer is liable for such proportion of the liability as corresponds to the tonnage or value of the ship in question.

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    Clause 13-2. Limitation of liability based on tonnage or value of more than one ship

    This Clause is identical to Cl. 195 of the 1964 Plan. Where a tug and tow, or a string of barges, become involved in a collision, the calculation of the liable shipowner’s limit of liability may cause problems. In certain cases, the owner will be liable along with several of the involved vessels,...

  • Clause 13-3. Maximum liability of the insurer in respect of any one casualty

    The insurer is liable up to an amount equivalent to the sum insured in respect of liability for damages arising from any one casualty.

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    Clause 13-3. Maximum liability of the insurer in respect of any one casualty

    This Clause is identical to Cl. 196 of the 1964 Plan. In addition to the Commentary on the Clause contained in the Commentary on Cl. 4-18, the following should be mentioned: Practical considerations seem to call for using the ship’s limitation amount as a limit for the hull insurers’ liability fo...

  • Clause 13-4. Deductible

    For each casualty the amount stated in the insurance contract shall be deducted.

    Litigation costs, cf. Cl. 4-4, costs in connection with the claims settlement, cf. Cl. 4-5, and loss arising from measures to avert or minimise the loss, cf. Cl. 4-7 to Cl. 4-12, are recoverable without any deductible.

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    Clause 13-4. Deductible

    The provision is worded in accordance with the same principles as the provision concerning deductible for hull damage, Cl. 12-18, and reference is made to the Commentary on that Clause. A provision has furthermore been added in Cl. 13-4 to the effect that the insurer is liable for litigation cost...