Part One: Rules common to all types of insurance
- Chapter 1: Introductory provisions
Chapter 2: General rules relating to the scope of the insurance
Section 1: Insurable interest and insurable value
- Clause 2-1. Insurance unrelated to any interest
- Clause 2-2. Insurable value
- Clause 2-3. Agreed insurable value
- Clause 2-4. Under-insurance
- Clause 2-5. Over-insurance
- Clause 2-6. Liability of the insurer when the interest is also insured with another insurer
- Clause 2-7. Recourse between the insurers where the interest is insured with two or more insurers
Section 2: Perils insured against, causation and loss
- Clause 2-8. Perils covered by an insurance against marine perils
- Clause 2-9. Perils covered by an insurance against war perils
- Clause 2-10. Perils insured against when no agreement has been made as to what perils are covered by the insurance
- Clause 2-11. Causation. Incidence of loss
- Clause 2-12. Main rule relating to the burden of proof
- Clause 2-13. Combination of perils
- Clause 2-14. Combination of marine and war perils
- Clause 2-15. Losses deemed to be caused entirely by war perils
- Clause 2-16. Loss attributable either to marine or war perils
- Clause 2-17. Sanction limitation and exclusion
- Section 1: Insurable interest and insurable value
Chapter 3: Duties of the person effecting the insurance and of the assured
Section 1: Duty of disclosure of the person effecting the insurance
- Clause 3-1. Scope of the duty of disclosure
- Clause 3-2. Fraudulent misrepresentation
- Clause 3-3. Other failure to fulfil the duty of disclosure
- Clause 3-4. Innocent breach of the duty of disclosure
- Clause 3-5. Cases where the insurer may not invoke breach of the duty of disclosure
- Clause 3-6. Duty of the insurer to give notice
- Clause 3-7. Right of the insurer to obtain particulars from the vessel’s classification society, etc.
Section 2: Alteration of the risk
- Clause 3-8. Alteration of the risk
- Clause 3-9. Alteration of the risk caused or agreed to by the assured
- Clause 3-10. Right of the insurer to cancel the insurance
- Clause 3-11. Duty of the assured to give notice
- Clause 3-12. Cases where the insurer may not invoke alteration of the risk
- Clause 3-13. Duty of the insurer to give notice
- Clause 3-14. Loss of the main class
- Clause 3-15. Trading areas
- Clause 3-16. Illegal undertakings
- Clause 3-17. Suspension of the insurance in the event of requisition
- Clause 3-18. Notification of requisition
- Clause 3-19. Suspension of insurance while the vessel is temporarily seized
- Clause 3-20. Removal of the vessel to a repair yard
- Clause 3-21. Change of ownership
- Section 3: Safety regulations
- Section 4: Measures to avert or minimise loss, etc.
- Section 5: Casualties caused intentionally or negligently by the assured
- Section 6. Identification
- Section 1: Duty of disclosure of the person effecting the insurance
Chapter 4: Liability of the insurer
- Section 1: General rules relating to the liability of the insurer
Section 2: Costs of measures to avert or minimise the loss, including salvage awards and general average
- Clause 4-7. Compensation of the costs of measures to avert or minimise loss
- Clause 4-8. General average
- Clause 4-9. General average apportionment where the interests belong to the same person
- Clause 4-10. Damage to and loss of the object insured
- Clause 4-11. Assumed general average
- Clause 4-12. Costs of particular measures taken to avert or minimise loss
- Section 3: Liability of the assured to third parties
- Section 4: The sum insured as the limit of the liability of the insurer
Chapter 5: Settlement of claims
Section 1: Claims adjustment, interest, payments on account, etc.
- Clause 5-1. Duty of the assured to provide particulars and documents
- Clause 5-2. Claims adjustment
- Clause 5-3. Rates of exchange
- Clause 5-4. Interest on the compensation
- Clause 5-5. Disputes concerning the adjustment of the claim
- Clause 5-6. Due date
- Clause 5-7. Duty of the insurer to make a payment on account
- Clause 5-8. Payment on account when there is a dispute as to which insurer is liable for the loss
- Section 2: Liability of the assured to third parties
Section 3: Claims by the assured for damages against third parties
- Clause 5-13. Right of subrogation of the insurer to claims by the assured for damages against third parties
- Clause 5-14. Waiver of claim for damages
- Clause 5-15. Duty of the assured to assist the insurer with information and documents
- Clause 5-16. Duty of the assured to maintain and safeguard the claim
- Clause 5-17. Decisions concerning legal proceedings or appeals
- Clause 5-18. Salvage award which entails compensation for loss covered by the insurer
- Section 4: Right of the insurer to the object insured upon payment of a claim
- Section 5: Limitation, etc.
- Section 1: Claims adjustment, interest, payments on account, etc.
Chapter 6: Premium
- Clause 6-1. Payment of premium
- Clause 6-2. Right of the insurer to cancel the insurance in case of non-payment of premium
- Clause 6-3. Premium in the event of total loss
- Clause 6-4. Additional premium when the insurance is extended
- Clause 6-5. Reduction of premium
- Clause 6-6. Reduction of premium when the vessel is laid up or in similar situations
- Clause 6-7. Claim for a reduction of premium
- Chapter 7: Co-insurance of mortgagees
Chapter 8: Co-insurance of third parties
- Clause 8-1. Rights of third parties against the insurer
- Clause 8-2. Protection of third parties against subrogation claims from the insurer
- Clause 8-3. Application of the rules in Chapter 3 and Clause 5-1
- Clause 8-4. Amendments and cancellation of the insurance contract
- Clause 8-5. Handling of claims, claims adjustment, etc.
- Clause 8-6. Other insurance
- Clause 8-7. Independent co-insurance of mortgagees and named third parties
Chapter 9: Relations between the claims leader and co-insurers
- Clause 9-1. Definitions
- Clause 9-2. The right of the claims leader to act on behalf of co-insurers
- Clause 9-3. Lay-up plan
- Clause 9-4. Notification of a casualty
- Clause 9-5. Salvage
- Clause 9-6. Removal and repairs
- Clause 9-7. Provision of security
- Clause 9-8. Disputes with third parties
- Clause 9-9. Claims adjustment
- Clause 9-10. Insolvency of a co-insurer
- Clause 9-11. Interest on the disbursements of the claims leader
Part Two: Hull insurance
Chapter 10: General rules relating to the scope of the hull insurance
- Clause 10-1. Objects insured
- Clause 10-2. Objects, etc. temporarily removed from the vessel
- Clause 10-3. Loss due to ordinary use
- Clause 10-4. Insurance "on full conditions"
- Clause 10-5. Insurance "against total loss only" (T.L.O.)
- Clause 10-6. Insurance "against total loss and general average contribution only"
- Clause 10-7. Insurance "against total loss, general average contribution and collision liability only"
- Clause 10-8. Insurance "on stranding terms"
- Clause 10-9. Duration of voyage insurance
- Clause 10-10. Extension of the insurance
- Clause 10-11. Liability of the insurer if the vessel is salvaged by the assured
- Clause 10-12. Reduction of liability in consequence of an interest insurance
Chapter 11: Total loss
- Clause 11-1. Total loss
- Clause 11-2. Salvage attempts
- Clause 11-3. Condemnation
- Clause 11-4. Condemnation in the event of a combination of perils
- Clause 11-5. Request for condemnation
- Clause 11-6. Removal of the vessel
- Clause 11-7. Missing or abandoned vessel
- Clause 11-8. Extension of the insurance when the vessel is missing or abandoned
- Clause 11-9. Liability of the insurer during the period of clarification
Chapter 12: Damage
- Clause 12-1. Main rule concerning liability of the insurer
- Clause 12-2. Compensation for unrepaired damage
- Clause 12-3. Inadequate maintenance, etc.
- Clause 12-4. Error in design, etc.
- Clause 12-5. Losses that are not recoverable
- Clause 12-6. Deferred repairs
- Clause 12-7. Temporary repairs
- Clause 12-8. Costs incurred in expediting repairs
- Clause 12-9. Repairs of a vessel that is condemnable
- Clause 12-10. Survey of damage
- Clause 12-11. Invitations to tender
- Clause 12-12. Choice of repair yard
- Clause 12-13. Removal of the vessel
- Clause 12-14. Apportionment of common expenses
- Clause 12-15. Ice damage deductions
- Clause 12-16. Machinery damage deductions
- Clause 12-17. Compensation without deductions
- Clause 12-18. Deductible
- Clause 12-19. Basis for calculation of deductions according to Clauses 12-15 to 12-18 and Clause 3-15
- Chapter 13: Liability of the assured arising from collision or striking
- Chapter 10: General rules relating to the scope of the hull insurance
Part Three: Other insurances for ocean-going vessels
Chapter 14: Separate insurances against total loss
- Clause 14-1. Insurance against total loss and excess collision liability (hull interest insurance)
- Clause 14-2. Insurance against loss of long-term freight income (freight interest insurance)
- Clause 14-3. Common rules for separate insurances against total loss
- Clause 14-4. Limitations on the right to effect separate insurances against total loss
Chapter 15: War risks insurance
- Section 1: Duty of disclosure of the person effecting the insurance
- Section 2: Termination of the insurance
- Section 3: Trading areas
- Section 4: Total loss
- Section 5: Damage
- Section 6: Loss of hire
- Section 7: Owner’s liability, etc. (P&I)
- Section 8: Occupational injury insurance, etc.
Chapter 16: Loss of hire insurance
- Clause 16-1. Main rules regarding the liability of the insurer
- Clause 16-2. Total loss
- Clause 16-3. Main rule for calculating compensation
- Clause 16-4. Calculation of the loss of time
- Clause 16-5. The daily amount
- Clause 16-6. Agreed daily amount
- Clause 16-7. Deductible period
- Clause 16-8. Survey of damage
- Clause 16-9. Choice of repair yard
- Clause 16-10. Removal to the repair yard, etc.
- Clause 16-11. Extra costs incurred in order to avert or minimise loss
- Clause 16-12. Simultaneous repairs
- Clause 16-13. Loss of time after completion of repairs
- Clause 16-14. Repairs carried out after expiry of the insurance period
- Clause 16-15. Liability of the insurer when the vessel is transferred to a new owner
- Clause 16-16. Relationship to other insurances and general average
- Chapter 14: Separate insurances against total loss
Part Four: Other insurances
Chapter 17: Insurance for fishing vessels
Section 1: General provisions
- Clause 17-1. Scope of application
- Clause 17-2. Renewal of the insurance/Ref. Clause 1-5
- Clause 17-3. Trading areas for fishing vessels/Ref. Clause 3-15
- Clause 17-4. Classification and vessel inspection/Ref. Clause 3-14 and Clause 3-8
- Clause 17-5. Safety regulations/Ref. Clause 3-22 and Clause 3-25
- Clause 17-6. Savings to the assured
Section 2: Hull insurance
- Clause 17-7. The relationship to Chapters 10-13
- Clause 17-7A. Fixed equipment temporarily removed from the vessel
- Clause 17-8. Change of the open or agreed insurable value/Ref. Clause 2-2 and Clause 2-3
- Clause 17-9. Damage to lifeboats, fishing, whaling and sealing tackle and catch/Ref. Clause 4-7 to Clause 4-12 and Clause 4-16
- Clause 17-10. Hull and freight-interest insurance/Ref. Clause 10-12
- Clause 17-11. Condemnation/Ref. Clause 11-3
- Clause 17-12. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1
- Clause 17-13. Limited cover of damage to machinery
- Clause 17-14. Costs incurred in saving time/Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12
- Clause 17-15. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18
- Clause 17-16. Collision liability for fishing vessels/Ref. Clause 13-1
- Clause 17-17. Collision liability/Ref. Clause 13-1
- Section 3: Hull insurance - extended cover
Section 4: Catch and equipment insurance - standard cover
- Clause 17-19. Objects insured
- Clause 17-20. Insurable value
- Clause 17-21. Extraordinary handling costs
- Clause 17-22. Excluded perils/Ref. Clause 2-8
- Clause 17-23. Deck cargo
- Clause 17-24. Total loss
- Clause 17-25. Damage to or loss of catch
- Clause 17-26. Damage to other objects
- Clause 17-27. Survey of damage
- Clause 17-28. Deductible
- Section 5: Supplementary cover for nets and seines in the sea
Section 6: Loss of hire for fishing vessels
- Clause 17-33. Relationship to Chapter 16
- Clause 17-34. Liability of the insurer/applies instead of Clause 16-1
- Clause 17-35. Total loss/applies instead of Clause 16-2
- Clause 17-36. Calculation of compensation for fishing vessels/Ref. Clause 16-3
- Clause 17-37. The daily amount for fishing vessels/applies instead of Clause 16-5
- Clause 17-38. Agreed daily amount for fishing vessels/applies instead of Clause 16-6
- Section 1: General provisions
Chapter 18: Insurance of mobile offshore units (MOUs)
- Section 1: General rules relating to the scope of the insurance
Section 2: Hull insurance
Section 2-1: General rules relating to the scope of the H&M insurance
- Clause 18-2. Objects insured
- Clause 18-3. Objects temporarily removed or separated etc. from the MOU
- Clause 18-4. Loss due to ordinary use
- Clause 18-5. Extension of the insurance
- Clause 18-6. Liability of the insurer if the MOU is salvaged by the assured
- Clause 18-7. Reduction of liability in consequence of an interest insurance
Section 2-2: Total loss
- Clause 18-8. Total loss
- Clause 18-9. Salvage attempts
- Clause 18-10. Condemnation
- Clause 18-11. Condemnation in the event of a combination of perils
- Clause 18-12. Request for condemnation
- Clause 18-13. Removal of the MOU
- Clause 18-14. Missing or abandoned MOU
- Clause 18-15. Extension of the insurance when the MOU is missing or abandoned
- Clause 18-16. Liability of the insurer during the period of clarification
Section 2-3: Damage
- Clause 18-17. Main rule concerning liability of the insurer
- Clause 18-18. Compensation for unrepaired damage
- Clause 18-19. Inadequate maintenance, etc.
- Clause 18-20. Error in design, etc.
- Clause 18-21. Losses that are not recoverable
- Clause 18-22. Damage to the drill string
- Clause 18-23. Deferred repairs
- Clause 18-24. Temporary repairs
- Clause 18-25. Costs incurred in expediting repairs
- Clause 18-26. Repairs of a MOU that is condemnable
- Clause 18-27. Survey of damage
- Clause 18-28. Invitations to tender
- Clause 18-29. Choice of repair yard
- Clause 18-30. Removal for repairs
- Clause 18-31. Apportionment of common expenses
- Clause 18-32. Ice damage deductions
- Clause 18-33. Deductible
- Clause 18-34. Basis for calculation of deductions according to Clauses 18-32, 18-33 and 3-15
- Section 2-4: Liability of the assured arising from collision or striking
- Section 2-1: General rules relating to the scope of the H&M insurance
Section 3: Separate insurances against total loss
- Clause 18-39. Insurance against total loss and excess collision liability (hull interest insurance)
- Clause 18-40. Insurance against loss of long-term freight income (freight interest insurance)
- Clause 18-41. Common rules for separate insurances against total loss
- Clause 18-42. Limitations on the right to insure separately against total loss
Section 4: Loss of hire insurance
- Clause 18-43. Main rules regarding the liability of the insurer
- Clause 18-44. Total loss
- Clause 18-45. Main rule for calculating compensation
- Clause 18-46. Calculation of the loss of time
- Clause 18-47. The daily amount
- Clause 18-48. Agreed daily amount
- Clause 18-49. Deductible period
- Clause 18-50. Survey of damage
- Clause 18-51. Choice of repairer
- Clause 18-52. Move to the repair location, etc.
- Clause 18-53. Extra costs incurred in order to avert or minimise loss
- Clause 18-54. Simultaneous works
- Clause 18-55. Loss of time after completion of repairs
- Clause 18-56. Repairs carried out after expiry of the insurance period
- Clause 18-57. Liability of the insurer when the MOU is transferred to a new owner
- Clause 18-58. Relationship to other insurances and general average
Section 5: War risks insurance
- Section 5-1: General rules relating to the scope of war risks insurance
- Section 5-2: Termination of the insurance
- Section 5-3: Areas of operation
- Section 5-4: Total loss
- Section 5-5: Damage
- Section 5-6: Loss of hire
- Section 5-7: Owner’s liability, etc. (P&I)
- Section 5-8: Occupational injury insurance, etc.
Section 6: Construction risks insurance
- Section 6-1: General rules relating to the scope of construction risks insurance
Section 6-2: Loss of or damage to the MOU
- Clause 18-87. Objects insured/Ref. Clause 18-2
- Clause 18-88. Insurable value
- Clause 18-89. Compensation in the event of a total loss/Ref. Clause 4-1
- Clause 18-90. Total Loss/Ref. Section 2-2
- Clause 18-91. Damage/Ref. Section 2-3
- Clause 18-92. Error in design, etc.
- Clause 18-93. Costs incurred in order to save time/Ref. Clauses 18-24, 18-28 and 18-29
- Section 6-3: Supplementary covers
Chapter 19: Builders’ risks insurance
Section 1: Common provisions
- Clause 19-1. Perils covered/Ref. Clause 2-8 cf. Clause 2-10
- Clause 19-2. Insurance period/Ref. Clause 1-5
- Clause 19-2A. Premium in the event of total loss
- Clause 19-3. Co-insurance/Ref. Clause 8-1
- Clause 19-4. Transfer of the building contract/Ref. Clause 3-21
- Clause 19-5. Place of insurance
- Clause 19-6. The sum insured as the limit of the liability of the insurer/Ref. Clause 4-18 and Clause 4-19
- Clause 19-7. Escalation of the sum insured
- Clause 19-8. Deductible
Section 2: Loss of or damage to the subject-matter insured
- Clause 19-9. Objects insured/Ref. Clause 10-1
- Clause 19-10. Insurable value
- Clause 19-11. Total loss in the event of condemnation
- Clause 19-12. Total loss where the yard's obligation to deliver no longer applies
- Clause 19-13. Compensation in the event of a total loss/ Ref. Clause 4-1
- Clause 19-14. Damage/Ref. Chapter 12
- Clause 19-15. Limitation of the insurer’s liability/Ref. Clause 12-1
- Clause 19-16. Compensation for unrepaired damage/ Ref. Clause 12-2
- Clause 19-17. Costs incurred in order to save time/ Ref. Clause 12-7, Clause 12-11 and Clause 12-12
- Section 3: Indemnification of additional costs incurred in an unsuccessful launching and costs of wreck removal
- Section 4: Liability insurance
Section 5: Supplementary covers
- Clause 19-22. Applicable rules
- Clause 19-23. Insurance of additional costs in connection with rebuilding and/or building of a new subject-matter insured
- Clause 19-24. Insurance of the yard’s liability for the buyer’s interest claim for instalments paid
- Clause 19-25. Insurance of the yard’s loss of interest in the event of late delivery
- Clause 19-26. Insurance of the yard’s daily penalties in the event of late delivery
- Clause 19-27. Towage and removal of the subject-matter insured
- Section 6: Supplementary cover for war risks
- Section 1: Common provisions
Chapter 20: Insurance for vessels with trading certificates
- Section 1: General provisions
Section 2: Hull insurance
- Clause 20-6. The relationship to Chapters 10-13
- Clause 20-7. Hull and freight-interest insurance/ Ref. Clause 10-12
- Clause 20-8. Condemnation/Ref. Clause 11-3
- Clause 20-9. Damage to the hull of vessels which are not built of steel/Ref. Clause 12-1
- Clause 20-10. Limited cover of damage to machinery
- Clause 20-11. Costs incurred in saving time/ Ref. Clause 12-7, Clause 12-8, Clause 12-11 and Clause 12-12
- Clause 20-12. Deductions/Ref. Clause 12-15, Clause 12-16 and Clause 12-18
- Clause 20-13. Collision liability/Ref. Clause 13-1
- Section 3: Hull insurance - extended cover
- Section 4: Hull insurance - limited cover
Chapter 21 Liability insurance
- Clause 21-1. Scope of application
- Clause 21-2. Renewal of the insurance/Ref. Clause 1-5
- Clause 21-3. Classification and vessel inspection/ Ref. Clause 3-14 and Clause 3-8
- Clause 21-4. Savings to the assured
- Clause 21-5. Perils covered
- Clause 21-6. Liability for personal injury
- Clause 21-7. Liability for property damage
- Clause 21-8. Liability for description
- Clause 21-9. Liability for the misdelivery of goods
- Clause 21-10. General average contributions
- Clause 21-11. Liability for the removal of wrecks
- Clause 21-12. Liability for special salvage compensation
- Clause 21-13. Liability for bunker oil pollution damage and damage to the environment
- Clause 21-14. Stowaways
- Clause 21-15. Liability for fines, etc.
- Clause 21-16. Liability for social benefits for the crew
- Clause 21-17. Travel expenses for replacement crew
- Clause 21-18. Expenses for disinfection and quarantine
- Clause 21-19. Limitation due to other insurance, etc.
- Clause 21-20. Safety regulations/Ref. Clause 3-22 and Clause 3-25
- Clause 21-21. Assured’s fault
- Clause 21-22. The insurer’s rights in the event of liability
- Clause 21-23. Liability for loss that occurred during other transport, etc.
- Clause 21-24. Limitation of liability for fishing vessels
- Clause 21-25. Limitation of the insurer’s liability for measures to avert or minimise loss
- Clause 21-26. The sum insured as a limit to the insurer’s liability
- Clause 21-27. Deductible
- Chapter 17: Insurance for fishing vessels
- Appendix to Clause 3-15: Trading areas
- Appendix to Clause 3-15 and Clause 17-3 Trading areas
The Nordic Marine Insurance Plan of 2013, Version 2023
Based on the Norwegian Marine Insurance Plan of 1996, Version 2010
The basis for the Nordic Marine Insurance Plan of 2013 is the Agreement of 3 November 2010 (last amended 9 December 2016) with addendum dated 21 August 2019 between:
The Nordic Association of Marine Insurers (Cefor)
the Finnish Shipowners’ Association,
the Norwegian Shipowners’ Association and
the Swedish Shipowners’ Association.
The Agreement states that the name of this document shall be “The Nordic Marine Insurance Plan of 2013” with the following subtitle; “based on the Norwegian Marine Insurance Plan of 1996, Version 2010” (hereinafter “the Plan”).
The Agreement mandates a permanent Standing Revision Committee (SRC) the task of drafting the Plan. The Parties to the Agreement may propose changes to the Plan. If the members agree that changes should be made, the SRC shall draft amendments to the Plan text and Commentary in English.
The following members of the SRC have been working on the 2023 Version of the Plan:
Trine-Lise Wilhelmsen, Professor, LL.D, Scandinavian Institute of Maritime Law
Amund Bjøranger Tørum, Professor, LL.D, Deputy Director of the Scandinavian Institute of Maritime Law
Maria Linn Riis, Doctoral Research Fellow, Scandinavian Institute of Maritime Law
The Nordic Association of Marine Insurers (Cefor)
Sveinung Måkestad, Vice President, Gard
Roar Sanden, Legal Director, Norwegian Hull Club
Tore Høisæther, Chairman – Director Special Projects, Fender Marine
Magne Andersen, Attorney-at-Law, Nordisk Skibsrederforening
Anders Hovelsrud, Insurance Director, The Norwegian Shipowners' Mutual War Risks Insurance Association
Hanne Rydelsborg, Senior Claims Handler, Codan Marine
Ronny Hindersson, Head of H&M Claims, Alandia
Johan Kahlmeter, Area Manager Team Sweden, The Swedish Club
Nordic Shipowners’ Associations
Karoline Bøhler, Attorney-at-Law, Insurance and CSR Manager, Norwegian Shipowners’ Association
Marthe Romskoug, General Manager, Wilhelmsen Insurance Services AS
Svein Bergstad, Insurance Director, Altera Infrastructure
Claes Westman, Head of Marine Insurance, A.P. Møller-Maersk A/S
Anne Mentz Hansen, Senior Claims Manager, TORM A/S
Jörgen Sköld, Chairman of the Board, Svenska Orientlinjen
Mikael Livijn, Attorney-at-Law, Wallenius Marine AB
Mervi Pyökäri, Head of Legal, Finnlines
Nordic Average Adjusters
Bjørn Slaatten, Average Adjuster
In addition, Eivind Killengreen, deputy member of SRC for the Shipowners' Associations, and Nils Christian Evensen (from insurance broker firm Willis Towers Watson AS), representing the Shipowners' Associations without being member of SRC, participated in the revision.
A focus in this revision has been on sustainability. Both the Nordic Association of Marine Insurers (Cefor) and the Shipowners' Associations in the Nordic Countries support the UN Sustainable Development Goals and in this new version of the Nordic Plan Clauses 12–12 and 18-29 have been amended to reflect this goal.
The Plan remains under constant review and it is the intention of the parties to the Nordic Plan Agreement to find further ways to contribute to a more sustainable future.
It shall be considered the spirit of the Plan that the parties to the insurance contract strive to finding more ESG-friendly ways to operate and adjust claims under this Plan.
The SRC decided that amendments to the text of the Plan and the Commentary in relation to the Nordic Marine Insurance Plan of 2013, Version 2019 should be shown in the text and highlighted in the preface. Where the amendments are dominant, the title or subtitle is highlighted. In the Plan wording and Commentary an effort has been made to implement gender neutrality, as well as replacing the word “ship” to the broader “vessel”.
The SRC has adopted the following amendments for incorporation into the Plan Version 2023:
Clause 2-17: Sub-clause 1 was amended by deleting the reference to France, the Russian Federation and the People’s Republic of China. This aligns the Clause with the clauses used in the English market. Further, the reference to France was unnecessary as this is encompassed by the reference to EU. The reference to the Russian Federation was also problematic with the outbreak of war between Russia and Ukraine with the risk of countersanctions from Russia that created uncertainty for the parties.
Clause 5-4: Sub-clause 3 was simplified and amended to correspond to the United States Prime Rate applicable on the 1st January of the year the insurance contract comes into effect. The amendment was made primarily due to termination of LIBOR settings by the UK Financial Conduct Authority, and the lack of any generally accepted replacement. The rate of interest shall now be based the United States Prime Rate, which is a commonly used, short-term borrowing interest rate in the banking system of the United States.
Clause 5-23: The previous time-limit of six months to claim compensation was extended to twelve months. This is in accordance with the similar rule in the Norwegian ICA Section 8-5 sub-section 1.
Chapter 7: Chapter 7 was amended throughout to correspond to the amendment in Clause 9-2 on the authorities of the claims leader. Clause 7-1, sub-clauses 2 and 3 were amended, new sub-clauses 4 and 5 were added, and the Commentary to sub-clause 1 was amended.
The following clauses have been amended with material changes:
- Cl. 7-1, sub-clause 2 second and third sentence, was amended by adding that the notice of mortgage takes effect from the time it reaches the insurer “or the claims leader as per Cl. 9-2, sub-clause 3 (a)”.
- Cl. 7-1, sub-clause 3, was amended to include a reference to the claims leader as per Cl. 9-2, sub-clause 4.
- Cl. 7-1, sub-clause 4, is new and states that “Any special requirements of the mortgagee to be included in the insurance contract other than the rules contained in Cl. 7-2 to Cl. 7-4 shall not take effect unless and until they are specifically agreed by the insurer. If the co-insurers are represented by a claims leader, the claims leader is authorized to accept such special requirements on behalf of the co-insurers, provided that the special requirements are within customary market practice according to Cl. 9-2, sub-clause 3 (b)”.
- Cl. 7-1, sub-clause 5, is new and provides that “If a vessel is insured as part of a fleet, each of the vessels thereunder shall be deemed to be separately insured in respect of: (i) amendment or cancellation (cf. Cl. 7-2), and (ii) set-off (cf. Cl. 7-4, sub-clause 6)”. The purpose of the amendment is to provide a default rule that essentially reflects market practice, and the regulation is intended to facilitate the use of Chapter 7 in international loan agreements.
- Cl. 7-3, sub-clause 1, was amended to expressly state that also “provision of security for loss or liability covered under the insurance” may be made without the participation of the mortgagee. The purpose is to clarify that the assured, without the participation of the mortgagee, is vested with an authority to provide security to third parties concerning loss or liability covered under the insurance.
- Cl. 7-4, sub-clause 5 second sentence, was added for the situation where the claims leader has provided security (cf. Cl. 7-3, sub-clause 1). The reference to Cl. 9-7, sub-clause 2 sets out that the claims leader’s interest takes priority under these circumstances.
Clause 8-2: A new sub-clause 2 is added to emphasize that the liability of the assured and co-insured third parties to each other shall not be excluded nor discharged by reason of co-insurance. The new provision is in line with Norwegian background law, where co-insurance is meant to provide financial cover for any liability the co-insured might get against the assured, but not to affect the liability between the assured and the co-insured. The provision is however necessary to depart from the judgment in the recent English Supreme court award in the Ocean Victory case. Changes to the same effect has been made by the adoption of BARECON 2017 and amendment of the IG Pooling Agreement and P&I club rules.
Clause 9-2: Sub-clauses 3 and 4 are new. The aim is mainly to clarify the authority of the claims leader to act on behalf of the co-insurers and to enhance the administrative benefits of having a claims leader. Cl. 9-2, sub-clause 3 letter (a) clarifies the authority of the claims leader to receive notice of mortgage according to Cl. 7-1, sub-clause 2, on behalf of the co-insurers and hence with effect for its co-insurers. Letter (b) makes it easier for the mortgagee to put forward and agree on special requirements, which is to the benefit to the assured and its lenders and mortgagees.
Clause 9-7: The Clause was amended by the addition of “co-insurers”, as well as an amendment of the previous phrase “guarantee” to “security”.
Clause 10-8: Letter (d) which describes the cover for damage to the vessel when it is insured on “stranding terms”, was amended in the first and last alternative. In the event of grounding, it now allows for grounding whether the vessel has to be refloated with assistance or by its own power. In the last alternative the former phrase “engine room” was amended to “spaces containing machinery or battery packs”.
Clause 12-12: The Clause was amended by introducing an increase in the maximum contribution from H&M insurers in case fuel consumption for removal can be reduced by choosing a more expensive yard than the cheapest. Sub-clause 2, second sentence is new, and provides for an incentive in form of an extra allowance (in addition to the 20% rule), which is applicable for repair alternatives requiring relatively shorter removal voyages with corresponding lower emissions due to reduction in fuel consumption.
Clause 12-16: Sub-clause 1 was amended to clarify the exception. The wording of sub-clause 2 letter (b) was amended from “the engine room having been completely or partly flooded”, to “water ingress and flooding of the space in which the damaged machinery or accessories is installed, or”. The exception in letter (c) was revised by replacing the narrow concept “engine room” with the neutral and broader term “space” as a consequence of the layout of modern vessels, which often have more than one space containing equipment for propulsion and power generation.
Clause 15-11: The time limit to establish total loss of the vessel was extended from six to twelve months.
Chapter 16: The loss of hire conditions were revised to improve consistency of terminology, simplify and restructure the provisions and also to make some material amendments. The expression “loss” was amended to “the assured’s loss of income” to emphasize that loss of hire insurance covers the assured’s loss of income and not income attributed to the vessel. For the same reason, the expression “the vessel being … deprived of income” is amended to “the vessel being …. deprived of income-earning activity”. The purpose of these amendments is to clarify the cover. The Commentary is for the most part rewritten.
- In the following clauses this terminology is amended and/or there have been editorially amendments with no material changes: 16-1, 16-3, 16-4, 16-5, 16-6, 16-7, 16-8, 16-9 sub-clause 1, 16-11 sub-clauses 2 and 3, 16-13 and 16-14.
- The following clauses have been amended with material changes:
- Cl. 16-2 now provides that it is decisive whether the assured is entitled to total loss compensation under the actual hull conditions. The requirement in the previous clause that the conditions were accepted by the insurer is deleted. If no hull insurance is effected the assessment shall be based on the Plan.
- Cl. 16-9 now apply equally to all hull conditions whether they are based on the Plan or not and regardless of any acceptance by the insurer of other conditions. Sub-clause 2 describes how tenders shall be adjusted for the purpose of comparison. Sub-clause 3 provides a revised limitation for insurer’s liability. Sub-clause 4 corresponds with the previous sub-clause 2, but is amended to be identical to Cl. 12-12, sub-clause 3.
- Cl. 16-11 is extended to cover all measures to avert or minimise loss, and not only costs in order to save time, cf. the heading and sub-clause 1. As an extension of this, a new last sentence in sub-clause 1 states that “Chapter 4, Section 2, shall not apply”.
- Cl. 16-12 have a new sub-clause 1 replacing the previous sub-clauses 1 to 3. The material changes are limited to equal apportionment between casualties, after expiry of the deductible period, where no owner’s work is effected. Sub-clause 2 corresponds with the previous sub-clause 4, and has only a minor amendment necessitated by re-arranging the previous sub-clauses 1 to 3 into the new sub-clause 1.
- Cl. 16-15, sub-clause 1, was amended to include cover of wages and maintenance of the crew. Sub-clause 2 was amended to include loss of time during removal after repairs.
Chapter 17: Section 2 on hull insurance was updated with editorial changes and amendments to correspond to the amendments in Chapter 16 in Clauses 17-34 to 17-37.
Clause 17-7A: Sub-clause 1 last sentence with the requirement to notify the insurer before leaving port was deleted, as it is not considered relevant.
Clause 17-13: The narrow concept “engine room” was replaced with the neutral and broader term “space”, cf. Cl. 12-16 with commentaries.
Clause 17-22: The wording was amended by adding a new item (e). Sub-clause (e) excludes claims from deterioration or contamination of the catch as a result of lack of appropriate routines in handling the catch on board.
Chapter 18: Section 4 Loss of hire insurance was amended to correspond to the amendments made to Chapter 16 Loss of hire insurance.
Clause 18-29: The Clause was amended to correspond to Cl. 12-12 with the introduction of an increase in the maximum contribution from hull insurers in case fuel consumption for removal can be reduced by choosing a more expensive yard than the cheapest.
- Clause 18-59: A limitation was added to sub-clause 3, which now states that the insurance does not cover objects in storage on land.
Clause 18-69: The time limit to establish total loss of the MOU was extended from six to twelve months, in accordance with the amendments in Cl. 15-11.
Clause 18-73: The wording “or requisitioned for use” was deleted from the plan wording, as requisition is no longer covered.
Chapter 20: The title of this Chapter was amended to reflect that some vessels without class actually have global trading as per its certificate. Several clauses in Chapter 20 were also amended to correspond to the amendments to Chapter 17 and Cl. 12-16.
Clause 20-4 (a): An exemption was accepted if the vessel has an appropriate class or certificate by the relevant authority, or same is agreed in writing by the insurer or explicitly mentioned in the policy.
Clause 20-9 (b): An exemption was accepted if the vessel has an appropriate class or certificate by the relevant authority, or same is agreed in writing by the insurers or explicitly mentioned in the policy.
Clause 20-10: The term “engine room” was replaced by “spaces containing machinery or battery packs” as modern vessels have several rooms or spaces containing machinery for propulsion or vessel operation (cf. commentaries to Cl. 12-16).
New Clause 20-16: This Clause is identical to Cl. 10-6 and new for Chapter 20 in the 2023 Version.
New Clause 20-17: This Clause is identical to Cl. 10-7 and new for Chapter 20 in the 2023 Version.
New Clause 20-18: The Clause was moved from previous Cl. 20-16 and amended to be identical to Cl. 10-8.
In connection with the above-mentioned amendments, changes have also been made in the Commentary to the respective clauses. Changes have similarly been made in the Commentary to other clauses in which matters regulated in the amended clauses are mentioned. Furthermore, changes have been made in several places in the Commentary to clauses that have not been amended, and where the SRC has found that the former Commentary was impractical, misleading or could be misunderstood. This applies to the following provisions:
- Clause 4-5: The Commentary was amended to clarify that costs in connection with a claim include both expenses and fees for the services provided.
- Clause 5-2: The sentence “If the insurer has given responsibility for drafting the adjustment to an average adjuster as per Cl. 5-2, and the assured or insurer does not accept the adjustment, they may use their right under Cl. 5-5 to demand that the adjustment is submitted to a Nordic average adjuster for its opinion before the dispute is brought before the courts” was added.
- Clause 10-1: The Commentary was amended to clarify the concept of “equipment”, which is now defined to include also “digital, navigation and communication equipment.”
- Clause 12-3: In the Commentary the definition of corrosion was deleted, and the word ”ordinary” was added to clarify what kind of corrosion is excluded from cover. This is further elaborated by including an example to clarify when corrosion may be recoverable under Cl. 12-3.
- Clause 12-5: Letter (a) was amended in the Commentary with the purpose to reiterate and clarify the special agreement rule between the assured and the claims leader in Cl.12-5. The reason is that the intention of establishing a practice of special agreement between the assured and the claims leader has not been followed up. The Commentary now emphasise that the insurer must respond quickly and appropriately when being asked by the assured for such special agreement. If the insurer does not provide within reasonable time a concrete answer to a specific request from the assured, the assured can consider its request accepted by the insurer.
- Clause 12-12: The Commentary to sub-clause 3 was amended by introducing an example as to what shall be considered “special circumstances” giving the assured the right to demand that a tender shall be disregarded.
- Clause 18-17: New Commentary was added to clarify the insurer’s liability for expenses necessary to carry out repairs, cf. Cl. 12-1. The main point is that the hull insurer will cover costs which are strictly necessary for repairs and/or replacement of insured property, hereunder depressurizing of equipment, safe disconnection for repairs and/or re-connection of the insured MOU upon return. Other consequential or indirect losses and costs incurred in connection with such disconnection and re-connection and/or during the period of damage repairs is outside the scope of hull insurance.
When the amendments in the Commentary were made, the explanation of the historical development of the clauses previously contained in the Commentary was also deleted to facilitate the reading and understanding of the Commentary.
However, for Clauses where no amendments are made in the Commentary, this historical development is not deleted. In the Commentaries to these Clauses, references are made to both the Plan in use before the 1996 Plan, the Norwegian Marine Insurance Plan of 1964 (the 1964 Plan), and various insurance conditions and practices. The insurance conditions referred to are the Conditions for Hull Insurance issued by the Central Union of Marine Underwriters (Cefor) and the Mutual Marine Insurers Committee’s Premium and Insurance Conditions (PIC). The abbreviation Cefor stands for Cefor Form 246 A October 1995, while PIC means the Mutual Marine Insurers Committee’s Premium and Insurance Conditions 1 January 1995.
The language of the Plan and Commentary is English. The Plan will be translated into four of the Nordic languages.
The Plan Version 2023 enters formally into force on 1 January 2023. The amendments are marked in both the printed and web versions of the Plan. Cefor is the copyright holder and responsible for the printing of the Plan and the publication of the web edition of the Plan and Commentary. The Internet address is nordicplan.org. The Plan is also available as an App for smartphones and tablets.
Finally, the Standing Revision Committee wishes to state that the Plan is a set of standard policy conditions and thus purely illustrative. The Plan is not binding to the parties of this agreement. Parties negotiating an insurance contract are completely free to agree upon other insurance conditions or modify any part of the Plan and its clauses.
Oslo, 15 September 2022
Trine-Lise Wilhelmsen, Chair
Amund Bjøranger Tørum, Secretary
Maria Linn Riis, Secretary