Section 2: Hull insurance

• Clause 17-7. The relationship to Chapters 10-13

  The rules in Chapters 10-13 shall apply together with the amendments that follow from Cl. 17-7A and Cl. 17-10 to Cl. 17-17.

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  Clause 17-7. The relationship to Chapters 10-13

  The provision states that for hull insurance the rules of Chapters 10 to 13 apply, with such amendments as follow from Cl. 17-7A and Cl. 17-10 to Cl. 17-17 inclusive. Certain amendments in the general rules of the Plan, see Cl. 17-8 and Cl. 17-9, also apply. The reference to Cl. 17-7A is new in t...

• Clause 17-7A. Fixed equipment temporarily removed from the vessel

  Where fixed equipment for fishing vessels is temporarily taken ashore, it shall be stored in a locked storage building or room. The insurer is liable for loss resulting from fire and burglary through forced entry into a locked storage building or room. 

  In the event of a total loss of the vessel, cf. Chapter 11, deductions shall be made from the total-loss compensation for the value of equipment covered in accordance with sub-clause 1.

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  Clause 17-7A. Fixed equipment temporarily removed from the vessel

  This Clause was new in the 2013 Plan. The two sub-clauses used to be found in Cl. 10-2 sub-clause 2 and 3. It is an absolute prerequisite for this extended cover that the object has been on board before it was stored ashore. This extension of the insurance applies only to the explicitly stated...

• Clause 17-8. Change of the open or agreed insurable value/Ref. Clause 2-2 and Clause 2-3

  In addition to Cl. 2-2 and Cl. 2-3 the following shall apply:
  The assured shall notify the insurer of any changes in conditions prescribed by public authorities relating to the vessel's fishing rights, or if the assured accepts an offer for a public destruction subsidy which is lower than the open or agreed insurable value. The insurer may in such cases demand that the open or agreed insurable value be reduced.

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  Clause 17-8. Change of the open or agreed insurable value/Ref. Clause 2-2 and Clause 2-3

  According to the rules of the Plan, the parties may choose between open and agreed insurable value, cf. Cl. 2-2 and Cl. 2-3. An open insurable value is fixed at the “full value of the interest at the inception of the insurance”, cf. Cl. 2-2. However, an agreed insurable value is fixed by agreemen...

• Clause 17-9. Damage to lifeboats, fishing, whaling and sealing tackle and catch/Ref. Clause 4-7 to Clause 4-12 and Clause 4-16

  The insurer's liability for costs of measures to avert or minimise loss, cf. Cl. 4-7 to Cl. 4-12, does not cover loss of or damage to the fishing vessel's lifeboats, fishing, whaling and sealing tackle or catch which occurs while these objects are outside the vessel.

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  Clause 17-9. Damage to lifeboats, fishing, whaling and sealing tackle and catch/Ref. Clause 4-7 to Clause 4-12 and Clause 4-16

  The dories, fishing gear and catch have in principle been lifted out of the hull insurance through the exception in Cl. 10-1, sub-clause 2. The insurer is nevertheless in principle liable for damage to such objects if the damage occurs during a measure to avert or minimise loss. Damage to or loss...

• Clause 17-10. Hull and freight-interest insurance/Ref. Clause 10-12

  Instead of Cl. 10-12 the following shall apply:
  If the insured receives compensation under an interest insurance, the hull insurer's liability is reduced correspondingly, unless the hull insurer has consented in advance to such insurance being taken out.

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  Clause 17-10. Hull and freight-interest insurance/Ref. Clause 10-12

  Today separate total-loss insurances for fishing vessels and freighters are not normally offered. However, the owners wish to have such an offer. It has therefore been stated explicitly that the hull insurer may consent to the effecting of interest insurance. In that event, the reduction rule wil...

• Clause 17-11. Condemnation/Ref. Clause 11-3

  Instead of Cl. 11-3, sub-clause 2, first sentence, the following shall apply:
  The conditions for condemnation are met when casualty damage is so extensive that the costs of repairing the vessel will amount to at least 90 % of the insurable value or of the value of the vessel after repairs if the latter is higher than the insurable value.

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  Clause 17-11. Condemnation/Ref. Clause 11-3

  The condemnation limit is 90% in relation to Cl. 11-3. A limit of 80% is too advantageous when taking into account that the average age of the fleet is far higher today than 30-40 years ago, that the international marine insurance market relies on a condemnation limit of 100%, and that the value ...

• Clause 17-12. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1

  In the event of damage to the hull of vessels which are not built of steel, the insurer is not liable for:

  • distortion of the keel or damage resulting therefrom. The same applies to a depreciation in value caused by the fact that repairs are not carried out,
  • damage resulting from striking against or contact with ice,
  • caulking of hull and deck.
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  Clause 17-12. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1

  Sub-clause 1 (a) is first and foremost relevant to insurance of vessels deserving of preservation. Sub-clause 1 (b) is not intended to cover more unforeseeable forms of striking against ice, e.g. where an ice floe has drifted out from a branch of a fjord to an open area of water where there is...

• Clause 17-13. Limited cover of damage to machinery

  Unless otherwise agreed in the insurance contract, the insurer is only liable for damage to:

  • machinery with accessories,
  • plant machinery used for preparing or processing catch, etc.,
  • seine winch, line hauler, trawl winch or other hauling device for fishing gear, fish pumps, etc.,
  • pipelines and electric cables outside the machinery, and
  • electronic equipment

  if the damage is a result of collision, striking, an earthquake, an explosion, unless originating in spaces containing machinery or battery packs, fire, or of the vessel having sunk or capsized, or the vessel having been filled with water as a result of a breach of a hose or a pipe onboard the vessel provided the breach was not caused by corrosion or age. Damage to electronic equipment caused by heavy weather shall, however, be covered if damage to hull or superstructure occurred in the same casualty.

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  Clause 17-13. Limited cover of damage to machinery

  The 2023 Version introduced a new term for “engine room”, cf. Cl. 12-16 with commentaries. Cl. 17-13 provides limited cover for damage to machinery. On the other hand, extended cover for damage to machinery may be effected in accordance with Cl. 17-18. The first part of the first sentence specifi...

• Clause 17-14. Costs incurred in saving time/Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12

  The insurer is not liable for costs incurred in connection with:

  • temporary repairs under Cl. 12-7, sub-clause 2, in excess of what the insurer saves by a postponement of the final repairs,
  • the fact that the assured pursuant to the rules in Cl. 12-8 expedites repairs by extraordinary measures in order to limit its loss of time,
  • repairs and removal in accordance with the rules in Cl. 12-12, sub-clause 2, in excess of the amount that would have been recoverable if the lowest corrected bid had been accepted,

  nor for the loss of time under Cl. 12-11, sub-clause 2.

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  Clause 17-14. Costs incurred in saving time/Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12

  The provision excludes the time-loss element in the ordinary hull conditions from the cover under the coastal hull insurance conditions. 

• Clause 17-15. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18

  • Ice damage deduction, cf. Cl. 12-15:
    Damage resulting from striking against or contact with ice is covered  subject to the deductions stated in the insurance contract.
  • Electronic equipment damage deduction:
    Damage to electronic equipment is covered subject to the deductions stated in the insurance contract.
  • Machinery damage deduction, cf. Cl. 12-16:
    Damage to machinery etc. is covered subject to the deductions stated in the insurance contract.
  • Deductible, cf. Cl. 12-18:
    For any one casualty the amount stated in the insurance contract shall be deducted.
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  Clause 17-15. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18

  Sub-clause (a) refers to ice damage. This sub-clause was amended in the 2013 Plan. Previous versions of the Plan stated that damage resulting from striking against or contact with ice north of 75° north latitude and the waters of Greenland, including the Strait of Denmark, was covered subject to...

• Clause 17-16. Collision liability for fishing vessels/Ref. Clause 13-1

  In addition to the limitations in Cl. 13-1, sub-clause 2, the following shall apply:

  • In the event of a collision with or striking against another vessel, the insurer's liability under Cl. 13-1 is limited to damage caused to the vessel with fixed accessories.
  • The insurer does not cover any liability that might arise in connection with a collision with or striking against fishing, whaling or sealing tackle in the sea.
  • The insurer does not cover any liability that might arise between the participants in the same fishing teams or between pair trawlers.
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  Clause 17-16. Collision liability for fishing vessels/Ref. Clause 13-1

  This cover follows Cl. 13-1 as regards general liability for collision and striking. The purpose of this amendment is to ensure that cover includes collision and striking with aquaculture structures, which are no t covered under P&I insurance. However, cover for collision has now been generalised...

• Clause 17-17. Collision liability/Ref. Clause 13-1

  In addition to the limitations in Cl. 13-1, sub-clause 2, the following shall apply:
  The insurer does not cover liability under Cl. 13-1 for damage to or loss of fish or structures for keeping live fish, where the loss or damage occurs in connection with a call at the relevant structure. By a call is meant arrival, anchoring, working, discharging, loading and leaving.

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  Clause 17-17. Collision liability/Ref. Clause 13-1

  The heading and the Clause was amended in 2016 to make it applicable for all types of vessels insured under Chapter 17. The amended wording is partly mere editorial. Also, by adding the new sentence “By a call is meant arrival, anchoring, working, discharging, loading and leaving”, it is made cle...