Clause 3-22. Safety regulations
A safety regulation is a rule concerning measures for the prevention of loss, issued by public authorities, stipulated in the insurance contract, prescribed by the insurer pursuant to the insurance contract, or issued by the classification society.
Periodic surveys required by public authorities or the classification society constitute a safety regulation under sub-clause 1. Such surveys shall be carried out before expiry of the prescribed time-limit.
When establishing the Safety Management System that is necessary to fulfil the assured’s obligation to comply with the International Safety Management Code as adopted by IMO, the assured shall ensure that the system includes instructions and procedures for the use and monitoring of lubricating oil, cooling water and boiler feed water. Cl. 3-25, sub-clause 2, shall not be applied.
Clause 3-23. Right of the insurer to demand a survey of the vessel
The insurer has the right at any time during the insurance period to verify that the vessel meets the technical and operational safety requirements that are prescribed by public authorities or by the classification society. If necessary for the purpose of such verification, the insurer may demand a complete or partial discharge of the cargo.
If the assured refuses to let the insurer undertake the necessary investigation, the insurer shall subsequently only be liable to the extent that the assured proves that the loss is not attributable to defects in the vessel which the investigation would have revealed.
If the investigation is not occasioned by a casualty or similar circumstances covered by the insurance, the insurer shall indemnify the assured for its costs as well as for the loss it suffers as a result of the investigation, unless it becomes apparent that the technical and operational safety requirements have not been met.
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Clause 3-23. Right of the insurer to demand a survey of the vessel
Sub-clause 1 gives the insurer authority to demand a survey of the vessel at any time during the insurance period for the purposes of ascertaining that the vessel meets the technical and operational safety regulations that are prescribed by public authorities or by the classification society. The…
Go to full Commentary pageClause 3-24. (open)
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Clause 3-24. (open)
In earlier versions of the 1996 Plan, this provision contained rules on safety regulations. In the 2007 version, the Clause was moved to Cl. 3-22 and in that connection slightly amended.
Go to full Commentary pageClause 3-25. Breach of safety regulations
If a safety regulation has been breached, the insurer shall only be liable to the extent that the loss is not a consequence of the breach, or that the assured has not breached the safety regulation through negligence. However, the insurer may not invoke this rule where the assured is the master of the vessel or a member of the crew and the breach is committed in connection with its service as a seafarer.
If the breach relates to a special safety regulation laid down in the insurance contract, negligence by anyone whose duty it is on behalf of the assured to comply with the regulation or to ensure that it is complied with shall be deemed equivalent to negligence by the assured itself.
The insurer has the burden of proving that a safety regulation has been breached, unless the vessel springs a leak whilst afloat. The assured has the burden of proving that it did not breach the safety regulation through negligence, and that there is no causal connection between the breach of safety regulation and the casualty.
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Clause 3-25. Breach of safety regulations
The Commentary was amended in 2016. Under sub-clause 1, first sentence , the assured will lose insurance cover if he can be blamed for breaching the safety regulation and there is a causal connection between the breach and the loss. The sanctions may be applied to all forms of negligence. In oce…
Go to full Commentary pageClause 3-26. Vessels laid up
For ships which are to be laid up, a lay-up plan shall be drawn up which shall be submitted to the insurer for approval. If this has not been done, or the lay-up plan has not been followed while the vessel is laid up, Cl. 3-25, sub-clause 1, shall apply correspondingly.
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Clause 3-26. Vessels laid up
The Commentary was amended in 2016. The provision introduces safety regulations for vessels that are laid up; the insurer may also invoke other safety regulations, in so far as they are applicable to situations where vessels are laid up. The first sentence imposes on the assured an obligation to…
Go to full Commentary pageClause 3-27. Right of the insurer to cancel the insurance
The insurer may cancel the insurance by giving fourteen days’ notice, but with effect at the earliest on arrival of the vessel at the nearest safe port, in accordance with the insurer’s instructions, if:
- the vessel, by reason of unsuitable construction, a defect, a casualty or similar circumstances, is not in compliance with a technical or operational safety regulation,
- a safety regulation of material significance has been infringed, intentionally or through gross negligence, by the assured or by someone whose duty it is on its behalf to comply with the regulation or ensure that it is complied with.
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Clause 3-27. Right of the insurer to cancel the insurance
This Clause was amended in the 2007 version, in connection with the revocation of the former Cl. 3-22 on unseaworthiness. The provision corresponds to relevant Nordic Insurance Contracts Acts, but contains no explicit requirement that the cancellation must be reasonable in order for the…
Go to full Commentary pageClause 3-28. Terms of contract
The insurer may require that certain terms shall be included in contracts concerning the operation of the insured vessel, or that certain terms of contract shall not be included in such contracts. The requirement may be made in respect of contracts in general or in respect of contracts for a specific port or trade.
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Clause 3-28. Terms of contract
This Clause corresponds to earlier versions of the 1996 Plan. The provision gives the insurer authority to impose safety regulations during the period of insurance, cf. Cl. 3-22, sub-clause 1. The rule is of particular significance for the hull insurer’s cover of collision liability, e.g., in…
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Clause 3-22. Safety regulations
Sub-clause 3 was deleted in 2016, see further the amended Cl. 3-15 with its Commentary, and a new sub-clause 3 was provided. The Commentaries were also amended in 2016. Sub-clause 1 defines safety regulations as “rules concerning measures for the prevention of loss”. A fundamental requirement in…
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