The 2019 version of the Nordic Marine Insurance Plan 2013 recently entered into force. Among other things, the revisions introduce an arbitration clause as an option for insurances with Nordic claims leaders. Making arbitration the default position when there is a non-Nordic claims leader aims to align the plan with market practice. However, the change has also been brought about by the looming consequences of Brexit.
Since arbitration requires agreement between the parties, a third party is not normally bound by, or entitled to invoke, an arbitration clause. However, there are exceptions to the rule. It is recommended, when drafting arbitration clauses, to take into account not only the position of the contractual parties, but also the position of possible third parties, since this may reduce or avoid the risk of difficult procedural questions that may arise if claims are later made by or against a third party.
Two of the most commonly used sets of hull and machinery insurance terms are the Nordic Marine Insurance Plan 2013 and the Institute Time Clauses Hulls 1983 (ITC). Both have long traditions, but with different approaches. For example, hull and machinery insurance on the Nordic Plan covers all risks unless they are specifically excluded, while the ITC is based on the 'named perils' principle.
The unprecedented retreat of sea ice and changes to season lengths and weather patterns in the Arctic region have provided new opportunities and risks for the shipping industry. In particular, the reduction in journey time achievable by sailing through the Northern Sea Route is attracting increasing interest. This update concerns insurance cover under the Nordic Marine Insurance Plan in respect of navigation in the Northern Sea Route.
The Nordic Marine Insurance Plan 2013 recently entered into force. While the plan is largely based on its predecessor, some important changes have been introduced. These amendments will better facilitate use of the plan in other Nordic countries, as well as in the international market. The plan will no doubt provide greater certainty to both insurers and assureds as to the extent of insurance cover.
The Norwegian Marine Insurance Plan is a comprehensive set of insurance conditions developed by insurers, shipowners and average adjusters. The plan is supplemented by an extensive commentary; both are revised at regular intervals by the Standing Revision Committee. This update provides a review of the most significant changes in the 2010 version.
The term 'warranties' refers to conditions under which the insurer is discharged from liability in case of non-compliance, irrespective of whether there is fault on the part of the assured or causation between the breach and the loss. However, it is disputable whether such warranties are valid in marine policies governed by law in cases where there is no causation between the breach of the warranty and the loss.
A Mexican company has unsuccessfully brought a claim in Norway against a Russian shipowner. The Supreme Court held that an insurance agreement with a Norwegian company did not constitute a sufficient connection with Norway. The key issue was whether membership in such a company could be regarded as an asset where the member had no claim against the insurer. However, the court's answer was unclear.