SALIENT FEATURES OF INTERNATIONAL HULL CLAUSES 01.docx
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SALIENT FEATURES OF INTERNATIONAL HULL CLAUSES 01.docx
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SALIENTFEATURESOFINTERNATIONALHULLCLAUSES01
SALIENTFEATURESOFINTERNATIONALHULLCLAUSES(01/11/03)ANDOTHERHULLFORMS
ThisdocumentlistscertainprovisionsoftheInternationalHullClauses(01/11/03)andalsocertainprovisionsappearingintheInstituteTimeClauses-Hull(01/10/83),theNorwegianPlanof1996(2003version)andtheAmericanInstituteHullClauses(June2,1977).Norelianceshouldbeplacedonthisdocument,whichispreparedsolelyfordescriptivepurposes.Thisdocumentdoesnotandisnotintendedtoprovidelegaladviceastothemeaningofanyprovisionnorastoanyissueofmarketpractice.Itisnotandisnotintendedtobeusedasanaidtoconstructionorinterpretationofthemeaningofanyprovision.Ineachcase,referencemustbemadetothepreciseprovisionsofeachofthehullformsinquestion(andthecommentaryinthecaseoftheNorwegianPlan)andtheapplicablelaw.
IHC(01/11/03)
ITC-Hulls(01/10/83)
NorwegianPlanof1996(v.2003)
AIHC(June2,1977)
1–General
EnglishlawandpracticeandexclusiveEnglishjurisdiction
Englishlawandpractice,andexclusiveEnglishjurisdictionwherewrittenonMAR91form
NorwegianlawandexclusiveNorwegianjurisdiction(whereriskledinNorway)(para1-4)
Silentonapplicablelaw
2–Perils
Triedandtestednamedperils(perilsofthesea,fire,explosionetc),plus“duediligence”perilsoflatentdefect,crewnegligenceetc.
Coverforaccidentsinloadingetcandcontactwithsatellitesetcnolongersubjecttoduediligenceproviso.
Coverforcommoncostsgivenat50%whereloss/damagecausedbyburstboiler,brokenshaftorlatentdefect
OptionalAdditionalPerilsCover(see41below)givescoverforcostsofcorrectingthelatentdefectandrepairingtheburstboiler/brokenshaftandtheremaining50%ofcommoncosts
NamedperilsasIHC-03,butcoverforaccidentsinloadingetcandcontactwithsatellitesetcsubjecttoduediligenceproviso(cl6).
Noexpressprovisionfortreatmentofcommoncosts.Adjustingpractice.
Coverforalldamage,lessexpressexceptionswhichincludepiracyandmutiny(paras10-4and12-3to12-5).Lossesattributabletocontaminationnotrecoverableunlesspreventativemeasurestakenwithin3months(para12-5(f))
BurdenofprovinglossanditsextentrestswithAssured(para2-12).
Wheredamagecausedbyerrorindesignorfaultymaterial,Underwritersnotliableforcostsofrenewingorrepairingtheparts“notinpropercondition”unlesstheywereapprovedbyclass(para12-4)
Commonexpensesapportionedonbasisofcostofeachclassofworkunlesstimerelated(para12-14).
Namedperils(butpiracyexcluded).Coverforaccidentsinloadingetc,explosionsandcontactwithaircraftetcsubjecttoduediligenceproviso(lines70-74).
Coverfordamagecausedbyburstboilersandlatentdefectexcludescostandexpenseofrepairingorreplacingthedefectivepart(lines79-80)
3–Leasedequipment
CoverforequipmentnotownedbytheAssured,butforwhichtheAssuredisresponsiblegivenasstandard
Nostandardcover
Covergivenasstandard(para10-1)
Covergivenasstandard(lines18-19andlines114-116)
4–Partstakenoff
Coverforpartstakenoffthevesselgivenasstandard
Nostandardcover
Covergivenasstandardforequipmenttemporarilyashore(para10-2)
Nostandardcover
5–Pollutionhazard
Coverslossanddamagecausedbygovernmentalauthoritytopreventpollutionandenvironmentaldamage/threat,consequentupondamagetothevesselforwhichUnderwritersliable
Coverdoesnotextendtogovernmentalauthorityactiontopreventdamage/threattoenvironment(cl7)
Measurestakenbyastatepowertoavertorminimisedamagetothevesselonlyarecovered,providedthattheriskofdamageiscausedbyaninsuredperil(para2-8).
Coverdoesnotextendtogovernmentalauthorityactiontopreventdamage/threattoenvironment(lines87-91)
6–3/4thsRDC
Coverfor3/4thsofinsuredvalueinrespectoflegalliabilityarisingonacollision.Coverforlegalcostslimitedto25%oftheinsuredvalue(savewhereagreed).PollutionexclusiondoesnotextendtoothervesselorpropertyonothervesselnortoanArt13
(1)(b)salvageaward.
Optional4/4thsandFFOcover(see37/38below).
Coverfor3/4thsofinsuredvalueinrespectoflegalliabilityarisingonacollision.Coverforlegalcosts-noexpresslimit.Pollutionexclusiondoesnotextendtoothervesselorpropertyonothervessel.SilentonArt13
(1)(b)salvageaward.
Nooptional4/4thsandFFOcover
4/4thsandFFOstandard(para13-1)
Coverfor4/4thsofinsuredvalueinrespectoflegalliabilityarisingonacollision.CoverforlegalcostswherethemajorityofUnderwriters(inamount)consent(agreedvalue).Pollutionexclusiondoesnotextendtoothervesselorpropertyonothervessel.SilentonArt13
(1)(b)salvageaward(lines158-184)
NooptionalFFOcover.
7–Sistership
Wheresistershipscollideoronesalvesanother,liabilitydeterminedbymutuallyagreedarbitrator
AsIHC-03.(cl7)
Insurerisliableasifsalvageperformedbyathirdparty(para10-11)
Liabilitytobedeterminedbymutuallyagreedarbitratororfailingsuchagreement,by3arbitrators(lines124-127and171-175)
8–GAandSalvage
Coverforvessel’sproportionofsalvage,salvagecharges,generalaverage.
Noreductionwherethevesselisunderinsured.
PollutionexclusionsdonotextendtoArt13
(1)(b)awardorexpensesunderRuleXI(d)ofYorkAntwerpRules1994
OptionalGAAbsorptionclause(BIMCO)(see40below)
Claimssubjecttoreductionforunderinsurance.Silentonpollution.(cl11)
NooptionalGAAbsorptionclause
CoverforcontributiondueoninterestinsuredandonfreightatriskandownedbyAssured.Noreductionwherevesselisunderinsured(para4-8).
GAAbsorptionprovision(para4-8)
Lossesrecoverablewithoutapplicationofanydeductible.
Claimssubjecttoreductionforunderinsurance.Silentonpollution.(lines120-123and128-133)
NooptionalGAAbsorptionclause
9–Sueandlabour
DutyofAssuredtosueandlabourandcoverforchargesproperlyandreasonablyincurred.
Noreductionwherethevesselisunderinsured
Claimssubjecttoreductionwhereunderinsurance(cl13)
Noreductionwherevesselunderinsured(para4-8)
Lossesrecoverablewithoutapplicationofanydeductible.
Claimssubjecttoreductionwhereunderinsurance(lines144-157)
10/11–Navigation
Navigatingprovisionsnolongerexpressedaswarranties.Rather,Underwritersnotliableduringperiodofbreach.Coverresumespostbreach.
NavigatingprovisionsexpressedaswarrantiesandUnderwriterspossiblyoffriskfromthemomentofbreach,evenifbreachcorrected(cl1)
Adeductionofone-fourthoftheclaimapplieswhendamagesustainedinaconditionaltradingarea(beyondordinarylimits)andnonoticehasbeengiven(para3-15).
Navigatingprovisions(lines59-69)
12-Continuation
Covertonextportingoodsafetyatproratamonthlypremiumcontinueswherevesselindistress/missing(atsea)orindistress(inport)andwherenoticegivenassoonaspossible
CovertoportofdestinationatproratamonthlypremiumcontinueswherevesselatseaorindistressorataportofrefugeorcallandwherepreviousnoticegiventoUnderwriters(cl2)
Where,uponexpiry,insureddamagenecessitatesrepair,insuranceisextendedtomooringatfirstplacewherepermanentrepairscanbeeffectedandduringrepairscarriedoutthere(para10-10).
CovertoportofdestinationatproratamonthlypremiumcontinueswherevesselatseaorindistressorataportofrefugeorofcallandwherepreviousnoticegiventoUnderwriters(lines23-24)
13–Class/ISM
Vesselmustbeclassed(andcomplywithclassrecommendationsastoseaworthiness)withanagreedsocietyandmustholdvalidDOCandSMC.Automatictermination,savewherethevesselatseaorlossofclassetcresultsfrominsuredloss/damage
Automaticterminationonchange/lossofclasssavewherethevesselatseaetcorlossofclassetcresultsfrominsuredloss/damage(cl4)
Automaticterminationonchange/lossofclasssavewherethevesselatsea(para3-14).Underwritersnotliablewherelosshasresultedfrombreachofa“safetyregulation”andtheassuredresponsiblefortheinfringement(para3-25)
Automaticterminationonchange/lossofclasssavewherethevesselatseaetc(lines196-209)
14-Management
Automaticterminationonchangeofownership,sailingonscrapvoyages.Dutytocomplywithstatutoryrequirements,failingwhichUnderwritersnotliableforcausativefailures.
Automaticterminationonchangeofownershipetc.Coveronscrapvoyagesreducedtoscrapvalue,althoughclaimsforRDC/GAatoriginalinsuredvalue(cl4,cl1)
Automaticterminationonchangeofownership(para3-21)
Automaticterminationonchangeofownershipetc(lines196-209)
15-Deductibles
Deductiblesapplytoallclaimsexceptforatotallossandsightingthebottomincertaincircumstances.Aggregatingprovisionforheavyweather,icedamageandcargolightening(wherepermitted).
OptionalAMD.
NodeductibleforclaimsunderoptionalGAAbsorptionclause.
AsIHC-03,butnolighteningprovision(cl12)
Nolighteningclause.
AMD(para12-16)
AsIHC-03,butnolighteningprovision(lines29-35)
16–Newforold
Claimspayablewithoutdeductiononthebasisofnewforold
AsIHC-03(cl14)
Restorationtoconditionpriortooccurrenceofdamage(para12-1),notnecessarily‘newforold’inallcircumstances(seeCommentary)
AsIHC-03(line111)
17–Bottomtreatment
Nocoverforscraping,gritblasting,paintingthevessel’sbottom,savefordamaged/disturbedareas.Coverextendedtoanti-foulingcoating
AsIHC,butnocoverforanti-foulingcoatings(cl15)
Coverf
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