Norwegian Marine Insurance Plan

   

PREFACE
The Norwegian Marine Insurance Plan
of 1996, Version 2010

This foreword covers work on the Norwegian Marine Insurance Plan of 1996, Version 2010. With regard to work on the 1996 Plan itself and on the 1997, 1999, 2002, 2003 and 2007 Versions, reference is made to earlier prefaces. During the preparation of Version 2010 of the 1996 Plan, the Standing Revision Committee has comprised the following persons:

Chair
Trine-Lise Wilhelmsen, Professor, LL.D

Secretary
Kaja de Vibe, PhD Research Fellow

The Nordic Association of Marine Insurers (Cefor)
Haakon Stang Lund, Legal Counsel, Norwegian Hull Club
Sveinung Måkestad, Vice President, Gard
Lars Malm, Director, Swedish Club
Svein Ringbakken, Director, Den norske Krigsforsikring for Skib
Ottar Gjerstad, Product Market Manager, If (chapter 17)
Roar Sanden, Legal Counsel, Norwegian Hull Club (observer)
Olli Kytö, Director, Alandia Bolagen (observer)

Norwegian Shipowners' Association
Bjarte Thorsen, Vice President, Insurance, Kristian Gerhard Jebsen Skipsrederi
Karoline Bøhler, Legal Counsel, Norwegian Shipowners’ Association
Hogne Nesse, Head of Department, Insurance/Claims, Høegh Autoliners
Hans Kristian Hønsvall, Director, Insurance, Color Line
Lone Scheuer Larsen, Vice President, Torm (Nordic observer)
Kim Forssblad, Claims Handler, Stena Rederi AB (Nordic observer)

The Norwegian Fishing Vessel Owners Association
Managing Director Audun Maråk

Norwegian Average Adjusters
Bjørn Slaatten, Average Adjuster

The Revision Committee has adopted the following amendments for incorporation into the Norwegian Marine Insurance Plan of 1996, Version 2010:

  1. § 1-5: In paragraph 1, 24:00 hours has been replaced by 23:59 hours.
  2. § 2-3: In paragraph 1, the reference to "Norwegian average adjuster" has been replaced by "Nordic average adjuster" with a view to the work on a Nordic marine insurance plan.
  3. § 2-9: In subparagraph (a), "civil war" has been added to the perils covered by an insurance against war perils. In subparagraph (b) "condemnation in prize" has been deleted because the term is no longer in use. In subparagraph (c), "other social, religious or politically motivated use of violence or threats of the use of violence" has been added as a war peril. The term "piracy" in subparagraph (d) has been retained, but significant amendments have been made in the commentary, cf. below.
  4. § 4-8: An addition has been made to paragraph 1, fifth and sixth sentences, to the effect that the insurer is liable for salvage awards that are not recovered in general average, but not for any interest that is payable after the due date prescribed by the Plan and that is recovered in the general average adjustment.
  5. § 5-5: In paragraph 1, "Norwegian average adjuster" has been replaced by "Nordic average adjuster", cf. the commentary to § 2-3 above.
  6. § 12-2: In paragraph 2, an addition has been made to the effect that estimated common expenses are not recoverable, except for 50 % of estimated dock and quay hire.
  7. § 12-10: In paragraph 4, second sentence, "Norwegian average adjuster" has been replaced by "Nordic average adjuster", cf. the commentary to § 5-5 and § 2-3 above.
  8. § 13-1: In subparagraph (f), an addition has been made to the effect that hull insurance does not cover damage to coral reefs and other environmental damage.
  9. § 15-20: In paragraph 1, an addition has been made to the effect that the hull insurer also covers perils included in the range of war perils of the P&I insurance as defined in Appendix IV of the Pooling Agreement of the International Group of P&I Clubs. In paragraph 2, the reference to Skuld’s conditions has been replaced by a reference to Gard, and it has been specified that Gard’s conditions apply if the P&I insurance of the ship in question has not been effected with one of the associations that are party to the Pooling Agreement of the International Group of P&I Clubs.
  10. § 15-22: In paragraph 1, an addition has been made to the effect that the cover is not subsidiary with regard to liability and expenses that are recoverable under the ship’s P&I Insurance and that also are covered under § 15-20, if the P&I Insurance has been effected with a P&I association that is a party to the pooling Agreement of the International Group of P&I Clubs.
  11. § 16-15: In paragraph 2, a sentence has been added to the effect that the deductible period is calculated in consecutive dayseven if the loss of interest differs from the sum insured per day.
  12. § 17-39: In paragraph 1, a new sentence has been added to the effect that the insurer’s liability covers the assured’s liability for disposal and destruction.
  13. § 17-41 lays down a new provision to the effect that the insurer is liable for the assured’s liability for bunker oil pollution damage pursuant to the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001.
  14. Chapter 17, section 7, contains new rules governing loss of hire insurance for fishing vessels:
    § 17-56: This provision regulates the relationship to the provisions of chapter 16.
    § 17-57: This provision regulates the liability of the insurer, and applies instead of § 16-1.
    § 17-58: This provision regulates total loss and applies instead of § 16-2.
    § 17-59: This provision regulates the calculation of compensation, and supplements § 16-3.
    § 17-60: This provision regulates the daily amount for fishing vessels and applies instead of § 16-5.
    § 17-61: This provision regulates the assessed daily amount for fishing vessels, and applies instead of § 16-6.
  15. § 19-20:  Paragraph 3 is new and prescribes that the insurer is liable for the assured’s liability for bunker oil pollution damage pursuant to the International Convention on Civil Liability for Bunker Oil Pollution Damage, cf. § 17-41.

In order to tidy up chapter 17 after these and earlier amendments, the clauses in the chapter have been renumbered in consecutive order in the 2010 version.

In connection with the above-mentioned amendments, changes have also been made in the commentary to the respective provisions. Changes have similarly been made in the commentary to other provisions in which matters regulated in the amended provisions are mentioned. Furthermore, changes have been made in several places in the commentary to provisions that have not been amended, and where the committee has found that the former commentary was impractical, misleading or could be misunderstood. This applies to the following provisions:

  1. § 1-3: The reference to the Broker Regulations of 24 November 1995 no. 923 has been replaced by a reference to the Act of 10 June 2005 No. 41 on Insurance Mediation.
  2. § 2-9:  In the commentary to subparagraph (d) regarding piracy, the reference to "on the open sea" has been replaced by a comprehensive description  of the geographical limits of the piracy cover in respect of merchant ships and offshore installations.
  3. § 3-1: In the commentary to paragraph, it is specified that the shipowner has a duty to provide information on any unusual waiver of the right to file a claim in accordance with the guarantee in a building contract.
  4. Chapter 3, section 3 and § 3-22: In the introduction to the provisions on safety regulations and in the commentary to § 3-22, a number of matters have been clarified in respect of the relationship between the rules regarding safety regulations and the previous rules regarding seaworthiness, including the relationship to foreign ships.
  5. § 3-36: In the commentary to paragraph 1, the reference to the Seaworthiness Act has been changed to a reference to the Ship Safety Act.
  6. § 4-8: In the commentary to paragraph (a), an addition has been made to the effect that interest, commissions and fees for the calculation of compensation are covered in addition to the maximum amount stipulated in the policy.
  7. § 5-2: With regard to paragraph 2, it is specified that, unlike the insurer, the assured does not have a general right to require that the adjustment be made by an average adjuster, but that an agreement may be made to this effect.
  8. § 5-9:  The reference in the commentary to section 43, second paragraph, of the Civil Procedure Act has been replaced by section 3-1 of the Dispute Act.
  9. § 6-3:  The commentary to paragraph 1 specifies that the right to the entire agreed premium in the event of total loss does not apply to the loss-of-hire premium in the event of total loss under the hull insurance.
  10. § 10-1: The commentary to subparagraph (c) specifies that bunker oil and lubricating oil are covered provided that they belong to the shipowner.
  11. § 11-3:  The commentary to paragraph 2 specifies that only the assessed insurable hull value is relevant to the question of condemnation.
  12. § 12-8: The commentary specifies that the cost of new parts in order to save time is recoverable up to the amount it could have cost to repair the parts, and that costs that do not expedite the actual repair process are not recoverable.
  13. § 12-16: The comments regarding a "nautical casualty" have been deleted. An addition has been made to the effect that the exception in subparagraph (b) covers the situation where the engine room is flooded because the crew forgets an open valve.
  14. § 15-16: The commentary refers to the Bulford Dolphin arbitration case. It also specifies that non-physical blocking and trapping are only covered if they are undertaken by a foreign State power.
  15. § 16-1: The commentary to subparagraph (d) explains the rationale for the provision and how the provision is to be interpreted in relation to certain general average expenses related to piracy.
  16. § 16-16: The commentary to paragraph 3 explains how compensation is to be apportioned between the insurer and the assured when part of the sum insured relating to a casualty is unutilised due to a reimbursement by a third party.
  17. § 17-30: In the commentary to subparagraph (e), it is specified that the exception for normal use of the object insured covers cases where large seines and nets are lost as a result of the weight of the fish and sea currents.

Furthermore, the term "seaworthiness", which was left in some parts of the commentary after the revision of the provisions on seaworthiness in 2007, has been amended to "the ship’s ability to meet technical and operational safety requirements". Finally, a number of other minor errors have been rectified.

The amendments to the text of Version 2010 of the Plan and the Commentary will come into force on 1 January 2010. In the printed version the amendments are shown in bold print, while in the web version they are also marked in a different colour.

In connection with the work on Version 2010, the parties have also addressed a number of other issues. There was insufficient time to finish this work in the current revision, but the aim is to complete this process in the revision planned for 2013. The scope of this work will depend on whether the Plan is made a joint Nordic Plan or remains a Norwegian Plan.

The printing of Version 2010 and the publication of the web edition of the Plan have been carried out by Det Norske Veritas. The internet address is

Oslo, December 2009
Trine-Lise Wilhelmsen, Chair
Kaja de Vibe Malling, Secretary