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Section 1: General provisions

  • Clause 20-1. Scope of application

    The rules in this Chapter shall only apply to the extent that this follows from the insurance contract.

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    Clause 20-1. Scope of application

    As mentioned under General, certain freighters and other vessels are insured on so-called hull conditions for ocean-going vessels (Chapters 10 to 13). It is therefore necessary to have a rule determining the applicable cover if this is not clear. According to Cl. 20-1 the rules in Chapter 20 shal...

  • Clause 20-2. Renewal of the insurance/Ref. Clause 1-5

    Upon expiry of the insurance period, the insurance is automatically renewed for 12 months at the same premium and on the same conditions.

    If the insurer does not wish to renew the insurance, or if it only wishes to renew it at a different rate or on different conditions, the insurer must notify the person effecting the insurance of this no later than one month prior to expiry of the insurance period.

    If the person effecting the insurance wishes to cancel the insurance or if it does not wish to accept renewal at a new rate or on new conditions, the person effecting the insurance must notify the insurer of this no later than 14 days prior to expiry of the insurance period.

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    Clause 20-2. Renewal of the insurance/Ref. Clause 1-5

    Cl. 1-5, sub-clause 3, establishes that the insurance is not renewed unless this has been specifically agreed. Many of the persons effecting insurances in this industry do not have professional offices. It may therefore be problematic for them to be required to ensure that the insurance is renewe...

  • Clause 20-3. Classification and vessel inspection/ Ref. Clause 3-14 and Clause 3-8

    If the vessel at the start of the insurance period is classified with a classification society approved by the insurer, Cl. 3-14 and Cl. 3-8, sub-clause 2, shall apply.

    Vessels not ascribed to any class shall at the start of the insurance period have a valid certificate in accordance with the rules of the vessel's flag state. Expiry of a valid certificate is considered equivalent to loss of class, cf. Cl. 3-14.

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    Clause 20-3. Classification and vessel inspection/Ref. Clause 3-14 and Clause 3-8

    Clause 3-14 assumes that the vessel is in class and establishes that the insurance will automatically lapse in the event of loss of class. Change of classification society is deemed to be an alteration of the risk, cf. Cl. 3-8, sub-clause 2, last sentence. However, there is no reason to introduce...

  • Clause 20-4. Safety regulations/Ref. Clause 3-22 and Clause 3-25

    The following special safety regulations shall apply, cf. Cl. 3-25, sub-clause 2:

    • The vessel shall not force ice, unless the vessel has appropriate ice class or a certificate by the relevant authority, or same is agreed in writing by the insurer or explicitly mentioned in the policy.
    • If the vessel has a trading certificate, the provisions in the certificateshall constitute special safety regulations. 
    • When the vessel is at quay or laid up, the assured shall secure the vessel and equipment and arrange for daily supervision of the vessel and its moorings. Accessories, equipment, catch or cargo shall be locked away, or fixed or bolted to the vessel so that they cannot be removed without the use of tools.
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    Clause 20-4. Safety regulations/Ref. Clause 3-22 and Clause 3-25

    Section 7, sub-clause 1 of the Norwegian Ship Safety Act No. 9 of 15 February 2007 reads as follows in English translation: “The operator of the ship shall ensure that a safety management system which can be documented and verified is established, implemented and developed in his organisation and...

  • Clause 20-5. Savings to the assured

    If the assured as a result of a casualty or liability covered by the insurance has received additional income, saved expenses or averted liability which it would otherwise have incurred and which would not have been covered by the insurer, the latter may deduct from the compensation an amount equivalent to the advantage gained.

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    Clause 20-5. Savings to the assured

    The provision is taken from the P&I conditions in the 1964 Plan, but contains a general principle of insurance law and has therefore been generalised.