Commentary

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Section 5-1: General rules relating to the scope of war risks insurance

  • Clause 18-59. Perils covered

    This Clause was amended in 2023 by adding a new sub-clause 3.

    Sub-clauses 1 and 2 are verbatim the same as Cl. 15-1. Reference is made to the Commentary to Cl. 15-1. 

    Section 5 will only apply if it has been agreed that the insurance of the MOU also covers war perils. If the insurance contract is silent on whether it covers marine or war perils, the presumption according to Cl. 2-10 is that the insurance only covers marine perils. Therefore, it must be expressly agreed if the insurance of the MOU shall cover war risks. War risks insurance may be covered separately or in combination with marine perils cover.

    Sub-clause 3 states that the insurance does not cover objects in storage on land. The limitation is necessary because the war reinsurance market has not been willing to reinsure property whilst on land. For objects that has been on board and is brought on land for storage, the insurance cover will be terminated at the time of completion of the unloading of the object at the port, or if the object is moved from the MOU to the port by a hired vessel the insurance will be suspended for the object in question at completion unloading from the vessel at the port for onward land transit. The insurance will reattach again at the time of commencement of loading operations onto the MOU or onto a vessel for onward transport to the MOU. Commencement of loading being the time the object is first moved for loading.

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    Clause 18-59. Perils covered

    The insurance covers war perils, cf. Cl. 2-9 If the insurance against marine perils has been suspended under such circumstances as mentioned in Cl. 3-19, the insurance also covers marine perils, cf. Cl. 2-8. This insurance against war perils does not cover objects in storage on land as per Cl....

  • Clause 18-60. Interests insured

    This Clause was new in 2016 and is verbatim the same as Cl. 15-2 apart from the cross references to the relevant sections in Chapter 18. Reference is made to the Commentary to Cl. 15-2.

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    Clause 18-60. Interests insured

    Subject to Cl. 18-61 the insurance covers: total loss and damage, cf. Sections 2-1 to 2-3 above and 5-4 and 5-5 below, collision liability, cf. Section 2-4 above, hull interest/freight interest, cf. Section 3 above, loss of hire, cf. Sections 4 above and 5-6 below, owner’s liability (P&I), cf....

  • Clause 18-61. Sum insured

    This Clause was new in 2016 and is verbatim the same as Cl. 15-3 apart from the cross references to the relevant sections and clauses in Chapter 18. Reference is made to the Commentary to Cl. 15-3. It is in Cl. 18-61, sub-clause 2, letter (b), expressly made clear that the limitation of cover of collision liability contained in Cl. 18-37 shall apply also for any war risk collision liability. This also follows from the reference to Section 2-4 in Cl. 18-60 (b) that i.a. Cl. 18-37 shall apply also to the war risk collision liability cover.

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    Clause 18-61. Sum insured

    Cover in respect of each of the interests listed in Cl. 18-60 is conditional upon the parties having agreed a separate sum insured for each interest. In the case of loss of hire insurance, the insurance contract must also state the amount of the daily indemnity, cf. Cl. 18-47 and Cl. 18-48, the...

  • Clause 18-62. Safety regulations

    This Clause was new in 2016 and is by and large verbatim the same as Cl. 15-4 apart from some editorial amendments. Reference is made to the Commentary to Cl. 15-4.

    In particular to letter (a), the words “complete a move or operation in progress” means that the assured must be allowed to comply with applicable regulations issued by relevant authorities and/or his contract requirements to complete an operation in a safe manner so that e.g. the well is properly secured against blow-out before leaving it.

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    Clause 18-62. Safety regulations

    During the insurance period the insurer may, by means of special safety regulations, cf. Cl. 3-22, issue instructions that inter alia: the MOU shall not embark on a planned move or operation or complete a move or operation in progress, the MOU shall or shall not follow a specific itinerary, the M...