Section 2-4: Liability of the assured arising from collision or striking

Clause 18-35. Scope of liability of the insurer

The insurer will indemnify the assured for loss which is a result of liability imposed on the assured due to collision or striking by the MOU, its accessories, equipment or cargo, or by a tug used by the MOU.

However, the insurer will not cover:

• liability arising while the MOU is engaged in towing or caused by the  towage, unless this occurs in connection with a salvage operation  referred to in Cl. 3-12, sub-clause 2,
• liability for personal injury or loss of life,
• other loss suffered by third party personnel, visitors or crew on the  insured MOU,
• liability for damage to or loss of cargo, third party equipment, supplies  or other effects on board the insured MOU, or equipment which the MOU uses,
• liability to charterers or others who have an interest in the insured MOU,
• liability for pollution damage and damage resulting from fire or explosion caused by oil or other liquid or volatile substances, contamination  damage caused by radioactive substances and damage to coral reefs  and other environmental damage. The insurer is nevertheless liable if, in the event of a collision with another MOU, vessel or other navigable  unit, liability is imposed on the assured for such damage to the other MOU, vessel or unit with equipment and cargo,
• liability for loss caused by cargo or bunkers after grounding or striking  against ice,
• liability for loss caused by the use of anchor, subsea equipment, mooring  and towing gear, loading and discharging appliances, gangways and  the like, and liability for damage to or loss of these objects,
• liability for removal of the wreck of the insured MOU and for  obstructions to traffic created by the insured MOU,
• refund of amounts which a third party has paid by way of compensation for loss as mentioned under sub-clauses (a) to (i)  above.

Clause 18-36. Limitation of liability based on tonnage or value of more than one MOU

If the assured’s liability is limited on the basis of the tonnage or value of more than one MOU, and these MOUs are insured with different insurers, each individual insurer is liable for such proportion of the liability as corresponds to the tonnage or value of the MOU in question.

Clause 18-37. Maximum liability of the insurer in respect of any one casualty

The insurer is liable up to an amount equivalent to the sum insured, not exceeding USD 500,000,000 or 50 % of the sum insured, whichever is the higher, in respect of liability for damages arising from any one casualty.

Clause 18-38. Deductible

For each casualty the amount stated in the insurance contract shall be deducted. Litigation costs, cf. Cl. 4-4, costs in connection with the claims settlement, cf. Cl. 4-5, and loss arising from measures to avert or minimise the loss, cf. Cl. 4-7 to Cl. 4-12, are recoverable without any deductible.