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Section 4: Right of the insurer to the object insured upon payment of a claim

  • Clause 5-19. Right of the insurer to take over the object insured

    Upon payment of compensation for damage or total loss, the insurer is subrogated to the assured's rights in the object insured or such parts of the object insured as it has indemnified, unless it, no later than the time of payment, waives this right. Cl. 2-4 shall apply correspondingly.

    In the event of a total loss, the assured shall furnish the insurer with title to the object insured and hand over all documents that are material to it as owner. Costs incurred in this connection shall be borne by the insurer.

    In the event of damage, Cl. 5-13, sub-clause 2, first sentence, shall apply correspondingly.

  • Clause 5-20. Charges on the object insured

    If the insurer, after having taken over all or part of the object insured pursuant to Cl. 5-19, becomes liable for the costs of its removal, the assured shall reimburse the insurer the costs which exceed the value of what is removed.

    If there is a charge on the object insured in respect of liability not covered by the insurance, the assured shall indemnify the insurer to the extent thereof.

    If the assured, for the purpose of limiting its liability to third parties, has to abandon the vessel, this may be done irrespective of the insurer's rights under Cl. 5-19.

  • Clause 5-21. Preservation of the object insured

    The insurer is liable for costs of necessary measures to preserve the object insured incurred after a casualty that entitles the assured to compensation for total loss. The assured shall also implement such measures after the object insured has been taken over by the insurer, if the latter is unable to protect its own interest in that object.

  • Clause 5-22. Right of subrogation of the insurer in respect of damage to the object insured

    The insurer is subrogated to the assured's claim against third parties who are liable to pay compensation for damage to the object insured that has been covered by the insurer. However, this does not apply to claims under insurance contracts.