Clause 19-1. Perils covered/Ref. Clause 2-8 cf. Clause 2-10
The insurance covers marine perils, cf. Cl. 2-8, and strikes and lockouts.
Clause 19-2. Insurance period/Ref. Clause 1-5
The insurance remains in effect until the delivery date stipulated in the building contract. If delivery is later than that date, the insurance will automatically be extended subject to an additional premium as agreed in the insurance contract until the buyer has in actual fact taken delivery of the subject-matter insured.
If the buyer has not taken delivery of the subject-matter insured, the insurance is automatically extended subject to an additional premium as agreed in the insurance contract until another buyer has in actual fact taken delivery of the subject-matter insured.
Extension of the insurance according to sub-clauses 1 and 2 does not apply beyond nine months from the takeover date stipulated in the building contract.
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Clause 19-2. Insurance period/Ref. Clause 1-5
The provision and the commentaries were amended in the Version 2013 of the Plan. The term “newbuilding” is replaced with “subject-matter insured” because practice in recent years has shown that the Chapter is increasingly also applied in connection with the rebuilding of vessels and building of other units. Further, the…
Clause 19-2A. Premium in the event of total loss
If the insurer compensates for total loss pursuant to Cl. 19-13, sub-clause 1, or pays the sum insured pursuant to Cl. 4-21, it is entitled to the entire agreed premium.
If the insurer compensates for total loss pursuant to Cl. 19-13, sub-clause 2, it is only entitled to the proportion of the entire agreed premium that corresponds to the ratio between the compensation paid and the sum insured.
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Clause 19-2A. Premium in the event of total loss
This Clause was added in Version 2016 and corresponds to Cl. 18-83.
Clause 19-3. Co-insurance/Ref. Clause 8-1
Unless otherwise agreed, the buyer is co-insured under Cl. 8-1. However, this does not apply to cover of expenses under Section 3.
If liability as mentioned in Section 4 is covered by another insurance which the co-insured has effected, the co-insured’s cover under Section 4 is subsidiary in relation to that insurance.
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Clause 19-3. Co-insurance/Ref. Clause 8-1
The Commentary was amended in the Version 2013 of the Plan.
Clause 19-4. Transfer of the building contract/Ref. Clause 3-21
If the building contract is transferred to a new shipyard, the insurance terminates as from the date of the transfer.
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Clause 19-4. Transfer of the building contract/Ref. Clause 3-21
It has been made some editorial amendments in the Commentary of the Version 2013 of the Plan.
Clause 19-5. Place of insurance
The insurance is in effect:
- while in the builder’s yard or other premises in the port where the builder’s yard is situated and whilst in transit between these areas,
- during sea trials carried out within the area specified by the certificate, including the trading area.
If specifically agreed, the insurance also covers manufacture or transport outside the yard areas in the building port, insofar as this is set out in the insurance contract.
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Clause 19-5. Place of insurance
Cl. 19-5 sub-clause 1 (b) was amended in the Version 2013 of the Plan.
Clause 19-6. The sum insured as the limit of the liability of the insurer/Ref. Clause 4-18 and Clause 4-19
In addition to the sum insured as mentioned in Cl. 4-18, sub-clause 1, the insurer is separately liable up to an amount corresponding to the sum insured for damage, expenses and liability under Section 3 and Section 4 caused by any one casualty.
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Clause 19-6. The sum insured as the limit of the liability of the insurer/Ref. Clause 4-18 and Clause 4-19
This provision entails that the insurer may become liable for up to three sums insured: one sum insured for loss of or damage to the subject-matter insured according to Section 2, one sum insured for loss in connection with measures to prevent or minimise a casualty covered under Section 2,…
Clause 19-7. Escalation of the sum insured
If the value of the project exceeds the sum insured, the assured shall notify the insurer of this as soon as possible. The assured shall pay a premium for the increase in value and the insurer(s) shall accept its/their share of the increase.
Under no circumstances shall the sum insured exceed 110 % of the original sum insured unless the insurers have given their prior approval of the increase and agreement has been reached on the conditions for such an increase.
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Clause 19-7. Escalation of the sum insured
This Clause was new in the 2013 Version of the Plan.
Clause 19-8. Deductible
For each casualty the deductible stated in the insurance contract shall apply. If the same casualty entitles the assured to compensation according to Sections 2, 3 and/or 4, only one deductible shall apply.
Total loss, cf. Cl. 19-10 and Cl. 19-11, costs in connection with a claim, cf. Cl. 4-5, and loss in connection with measures to avert or minimise a loss, cf. Cl. 4-7 to Cl. 4-12, are recoverable without deductible.
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Clause 19-8. Deductible
Sub-clause 1 of the Clause states that the deductible must be specified in the insurance contract, and that if the one and the same casualty entitles the assured to compensation under Sections 2, 3 and 4, only one deductible applies.
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Clause 19-1. Perils covered/Ref. Clause 2-8, cf. Clause 2-10
This Commentary was amended in the 2013 Version of the Plan.