SALIENT FEATURES OF INTERNATIONAL HULL CLAUSES 01.docx

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