Section 3: Trading areas

Clause 15-9. Trading areas

The provision in Cl. 3-15 shall not apply.

The ordinary trading area under the insurance comprises all waters, except areas listed in the insurance contract (“Listed areas”). The Listed areas shall be designated as excluded areas unless explicitly designated as conditional areas.

The insurer may at any time designate new or change existing Listed areas, as per Cl. 15-8. 

The person effecting the insurance shall notify the insurer before the vessel proceeds beyond the ordinary trading area. The insurer may consent to trade outside the ordinary trading area and may require an additional premium. The insurer may also stipulate other conditions which shall constitute safety regulations, cf. Cl. 3-22 and Cl. 3-25, sub-clause 1.

The vessel is held covered for trade in a conditional area, but if damage occurs while the vessel is in a conditional area with the consent of the assured and without notice having been given to the insurer, the claim shall be settled subject to a deduction of one fourth. The provision in Cl. 12-19 shall apply correspondingly.

If the insurer has been duly notified in accordance with sub-clause 4 of trade within the conditional area, the insurance remains in full force and effect, subject to compliance with conditions, if any, stipulated by the insurer.

If the vessel proceeds into an excluded area, the insurance ceases to be in effect, unless the insurer has given its consent in advance, or the infringement was not the result of an intentional act by the master of the vessel. If the vessel, prior to expiry of the insurance period, leaves the excluded area, the insurance shall again come into effect. The provision in Cl. 3-12, sub-clause 2, shall apply correspondingly.