Clause 21-1. Scope of application
The rules in this Chapter shall only apply to the extent that this follows from the insurance contract.
Clause 21-2. Renewal of the insurance/Ref. Clause 1-5
Upon expiry of the insurance period, the insurance is automatically renewed for twelve 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, it must notify the person effecting the insurance of this no later than 30 days 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, it must notify the insurer of this no later than 14 days prior to expiry of the insurance period.
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Clause 21-2. Renewal of the insurance/Ref. Clause 1-5
This Clause is new in the liability insurance because of the independent status of the cover. Reference is made to the Commentary to the equivalent Clause 20-2.
Clause 21-3. 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 21-3. Classification and vessel inspection/Ref. Clause 3-14 and Clause 3-8
This Clause is new in the liability insurance as a consequence of the independent status of the cover. Reference is made to the Commentary to the equivalent Clause 20-3.
Clause 21-4. 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 21-4. Savings to the assured
The Clause is taken from the P&I conditions in the 1964 Version of the Plan, but contains a general principle of insurance law and has therefore been generalised.
Clause 21-5. Perils covered
The insurer covers liability and other loss as set forth in Cl. 21-6 to Cl. 21-18 if such liability or loss has occurred in direct connection with the operation of the vessel covered by the insurance. If a vessel is used as a seine vessel, the insurance also covers liability incurred by the other vessels in the same seine team.
The insurance covers war perils as well as marine perils, cf. Cl. 2-8 and Cl. 2-9. Cl. 15-5, Cl. 15-6 and Cl. 15-8 apply correspondingly.
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Clause 21-6. Liability for personal injury
The insurer covers the assured’s liability resulting from personal injury or loss of life, as well as liability for salvage awards for the saving of life. The assured’s liability to the crew or their survivors for wages in the event of a shipwreck, death, illness or injury is nevertheless not covered.
The assured’s liability for the loss of life or injury to passengers is only covered where this is evident from the insurance contract or from a subsequent written agreement between the insurer and the person effecting the insurance.
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Clause 21-7. Liability for property damage
The insurer covers the assured’s liability resulting from damage to or loss of objects belonging to a third party.
Liability is excluded for the following:
- costs of repairs of packaging, re-bagging, sorting and similar measures which must be regarded as part of the fulfilment of a transport obligation,
- damage to or loss of vessel’s equipment, fishing tackle or other equipment which has been borrowed, leased or purchased with a vendor’s lien, or which belongs to the charterer of the vessel,
- damage to or loss of objects which belong to the crew or other persons accompanying the vessel who have their duties on board,
- loss occurring while the vessel is calling at a structure for the keeping of live fish. By a call is meant arrival, anchoring, working, discharging, loading and leaving,
- damage to or loss of live fish carried in the vessel,
- damage to or loss of cargo due to a leak in a wooden vessel.
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Clause 21-8. Liability for description
The insurer covers the assured’s liability for inadequate or incorrect description of the goods or other incorrect information in the bill of lading or similar document, unless the assured or the master of the vessel knows that the document contains an incorrect description of the cargo, the quantity of the cargo or the condition of the cargo.
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Clause 21-8. Liability for description
Former Cl. 17-36.
The first sentence establishes that the insurer covers the assured’s liability for inadequate or incorrect description of the goods or other incorrect information in the bill of lading or similar document.
Clause 21-9. Liability for the misdelivery of goods
The insurer covers the assured’s liability for misdelivery of transported goods to an unauthorised recipient.
The insurer does not, however, cover liability, loss and costs resulting from the fact that the goods were handed over to a person who did not present a proper bill of lading, unless the goods were carried by the assured under a non-negotiable document and handed over as stated in the document, and the assured may be held liable under a negotiable document issued by or on behalf of someone other than the assured for the carriage of the goods, partly in the assured’s vessel, partly in another vessel.
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Clause 21-10. General average contributions
The insurer covers the assured’s loss resulting from the assured being unable to recover the cargo’s general average contribution as a result of a breach of the contract of affreightment.
The insurer also covers the assured’s necessary costs in connection with the recovery of the cargo’s contribution.
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Clause 21-11. Liability for the removal of wrecks
The insurer covers the assured’s liability for the removal of wrecks as a result of a casualty, provided such removal is compulsory by law. The insurer’s liability includes the assured’s liability for disposal and destruction.
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Clause 21-11. Liability for removal of wrecks
The Clause was amended in the 2027 Version of the Plan making the wording more in line with the wordings used by the IG P&I Clubs. Further, the Commentary was amended by elaborating on the effect of the Nairobi International Convention on the Removal of Wrecks. A part of the…
Clause 21-12. Liability for special salvage compensation
The insurer covers the assured’s liability for special compensation to the salvor, provided such compensation is fixed under the relevant sections of the Nordic Maritime Codes or is based on some other legislation or contract founded on Article 14 of the International Convention on Salvage, 1989.
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Clause 21-12. Liability for special salvage compensation
Former Cl. 17-40.
Clause 21-13. Liability for bunker oil pollution damage and damage to the environment
The insurer covers the assured’s liability for bunker oil pollution damage in accordance with the provisions laid down in national legislation that are based on the provisions of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001.
The insurer covers the assured ́s liability for damage to the environment.
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Clause 21-13. Liability for bunker oil pollution damage and damage to the environment
Former Cl. 17-41.
Clause 21-14. Stowaways
The insurer covers the assured’s liability and direct expenses resulting from the vessel having stowaways on board, but not costs of maintenance and accommodation which either have been or could have been provided for them on board.
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Clause 21-15. Liability for fines, etc.
The insurer covers the assured’s liability for:
- immigration and customs fines,
- fines resulting from the conduct of the crew,
- expenses in connection with orders for the deportation of the crew, passengers or other persons who accompany the vessel but who are not part of the crew.
Even if the assured does not become personally liable, the insurer covers such fines and expenses where it is possible to enforce payment by retention of or levying distraint on the vessel.
However, the insurer does not cover the assured’s liability for fines resulting from:
- overloading of the vessel,
- the vessel carrying more passengers than allowed,
- illegal fishing,
- inadequate maintenance of the vessel’s lifesaving or navigationequipment,
- absence of prescribed certificates on board the vessel.
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Clause 21-16. Liability for social benefits for the crew
The insurer covers the assured’s liability under the law or collective wage agreement for:
- care and maintenance of the crew on shore in the event of illness or injury,
- costs of the crew’s travel home, including maintenance, in the event of illness or injury or following a shipwreck,
- costs in connection with the funeral and sending home of the cinerary urn and the deceased’s personal effects,
- costs in connection with the crew’s travel home, including maintenance, in the event of the illness or death of a close relative.
No deductible shall be charged, unless otherwise agreed.
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Clause 21-16. Liability for social benefits for the crew
Former Cl. 17-44.
Sub-clause 1 establishes that the insurance covers the assured’s liability for certain specific social benefits for the crew in accordance with the law or collective wage agreements.
Clause 21-17. Travel expenses for replacement crew
The insurer covers the assured’s necessary travel expenses for replacement crew when the master or other officers have died or signed off due to injury or sudden illness. The cover is, however, limited to travel expenses to the first port of call after the death, or the port where the signing off took place, even if the replacement is sent to a port further away.
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Clause 21-18. Expenses for disinfection and quarantine
The insurer covers the assured’s necessary expenses in connection with a quarantine order or disinfection of the vessel or crew due to infectious diseases on board. Operating expenses during the stay are not covered.
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Clause 21-19. Limitation due to other insurance, etc.
The insurer does not cover:
- loss which due to its nature is insurable under the rules in Part II, Part III, or Part IV, Chapters 17 and 20,
- loss as mentioned in Cl. 13-1, sub-clause 2 (a). Under the insurance of a fishing vessel, the insurer nevertheless covers liability incurred during towage of vessels which belong to the same fishing team and which are not covered under the general hull insurance conditions,
- loss as mentioned in Cl. 4-16, provided that it could have been covered by fire insurance, cargo insurance or other general insurance.
However, the insurer covers loss as mentioned in Cl. 13-1, to the extent that it exceeds the amount which according to Cl. 13-3 is recoverable under a hull insurance with a sum insured that covers the full value of the vessel. For loss as mentioned in Cl. 4-16 a deduction shall also be made for the amount that could have been covered by an insurance as mentioned in sub-clause 1 (a) and (c).
In the event of liability for personal injury and social benefits for the crew, the insurer does not cover:
- loss covered through national insurance benefits or benefits from workers’ or employment insurance schemes,
- loss which due to its nature is covered by mandatory insurance benefits under a collective wage agreement and which is financed by the employer liable to pay compensation,
- loss which due to its nature is covered by the industrial injuries insurance legislation.
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Clause 21-20. Safety regulations/Ref. Clause 3-22 and Clause 3-25
The following special safety regulation shall apply, cf. Cl. 3-25, sub-clause 2:
The assured shall disclaim liability for damage to and loss of cargo and liability to passengers insofar as this is allowed under current rules of law.
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Clause 21-20. Safety regulations/Ref. Clause 3-22 and Clause 3-25
Former Cl. 17-48.
Clause 21-21. Assured’s fault
The insurer does not cover loss which the assured has caused by a grossly negligent act or omission, or which has been caused by its acting on an interpretation of rules of law or contractual terms which it ought to have known was incorrect or knew to be uncertain when another reasonable course was open to it.
The rules in sub-clause 1 shall not apply if the assured is the master of the vessel or a member of the crew and its negligence is of a nautical nature.
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Clause 21-22. The insurer’s rights in the event of liability
If the insurer is willing to settle a matter amicably or to pay the liability amount, it will not be liable for any further expenses in the dispute.
The insurer has the right to pay any compensation directly to the injured party.
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Clause 21-22. The insurer's rights in the event of liability
Former Cl. 17-50.
By the term “the liability amount” is meant the lowest of the injured party’s claim, the limitation amount under the law and the insurer’s maximum liability under Cl. 21-25.
Clause 21-23. Liability for loss that occurred during other transport, etc.
The insurer does not cover liability to passengers and for cargo which arises:
- during the period prior to loading or after discharging or during transport to and from the vessel covered by the insurance when the goods are not in the carrier’s custody,
- while the goods are in the custody of a sub-carrier, if it has been explicitly agreed that the sub-carrier in question shall carry out a specific part of the transport,
- during transport of passengers carried out by another carrier, when the latter is named in the contract of affreightment and shall according to that contract carry out the relevant part of the transport, or when the passenger, according to the contract, has the right to use, wholly or in part, the other carrier,
- during the period prior to the passenger’s embarkation and after disembarkation, with the exception of liability during marine transport between the vessel and shore, which is included in the ticket price or is carried out by a means of transport made available by the carrier.
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Clause 21-23. Liability for loss that occurred during other transport, etc.
Former Cl. 17-51.
Clause 21-24. Limitation of liability for fishing vessels
The insurer does not cover liability between the participants in the same fishing team nor between pair trawlers.
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Clause 21-24. Limitation of liability for fishing vessels
Former Cl. 17-52.
Clause 21-25. Limitation of the insurer’s liability for measures to avert or minimise loss
In no case does the insurer cover, as a loss incurred in connection with measures to avert or minimise loss pursuant to Cl. 4-12, the following:
- costs of discharging, reloading, restowing, storing, lightering and similar measures resulting from the fact that the vessel was overloaded, too heavily loaded for the voyage or poorly trimmed, or that the cargo was incorrectly or inexpediently stowed,
- costs incurred in connection with measures which were or could have been taken by the vessel’s crew or with a proper use of the vessel or its equipment,
- the assured’s liability for late or non-performance of a transport obligation or agreement regarding the sale of the vessel,
- costs of restoring the vessel to a seaworthy condition enabling it to receive the cargo.
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Clause 21-25. Limitation of the insurer's liability for measures to avert or minimise loss
Former Cl. 17-53.
Clause 21-26. The sum insured as a limit to the insurer’s liability
The insurer covers, up to the sum insured, liability arising from any one casualty.
Cl. 4-19 shall apply correspondingly.
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Clause 21-26. The sum insured as a limit to the insurer's liability
Former Cl. 17-54.
Clause 21-27. Deductible
For any one casualty, the amount stated in the insurance contract shall be deducted.
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Clause 21-27. Deductible
Former Cl. 17-55.
In accordance with the other deductible provisions of the Plan, the actual amount of deductible has been removed from the provision.
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Clause 21-1. Scope of application
This Clause is new in the liability insurance as a consequence of the independent status of the cover. As in all special covers under the Plan, the insurance in Chapter 21 is only applicable if agreed upon in the insurance contract between the parties.