It has been three years since we last introduced a new policy wording. As in previous reviews the Company has focused on clarifying existing terms as well as improving the cover offered to our Assureds in the face of current market demands. This year’s amendments will see significant developments for Crew liability cover; as well as an enhancement to our Wreck Removal provision and the addition of a new Part 3.
As customary, the terms of our current policy wording (2/2014) will continue to apply to those insurance contracts with a policy start date in 2016. The 2017 terms will apply to those contracts entered into or renewed as from 2017.
For your easy reference please find below a recap of all significant changes coming into effect with our new policy version. Should you have any specific question regarding any of these amendments kindly direct this to us at SupportDesk@RaetsMarine.com
PART 1: PROTECTION AND INDEMNITY
SECTION 1 – ILLNESS, INJURY AND LOSS OF LIFE [Crew]
This section has seen a complete makeover of its wording. We have sought first to itemize and then to clarify the full extent of the cover. The policy goes on to recognize that covered risks may also derive from the provisions of the Maritime Labour Convention 2006 (MLC) 2006.
SECTION 2 – REPATRIATION
Repatriation is one of the two main risks for which MLC will requires a formalized evidence of insurance or other financial security as from mid-January 2017. Section 2 has been reworked in order to recognize the impact that MLC has on this area. Attention should also be given to the wording of 38.16 which – although not new – is relevant at the time of distinguishing MLC obligations from policy cover.
SECTION 5 – DIVERSIONS EXPENSES
Significant changes have been carried on this section. Instances that would benefit from diversion cover are better outlined, including repatriation of a deceased member of the Crew which remained a point of interest amongst some of our Assureds. The Exclusions and Limitations paragraphs are not altogether new, but rather they have been extracted from within existing provisions and made to stand separate for clarity’s sake.
SECTION 9 – CARGO LIABILITIES
In order to stay in line with the latest market trends a new section 9.2.9 has been included in relation to the use of Electronic Bills of Lading. Equally relevant when considering this practice is the new definition for Electronic Trading System (E.T.S.) included in Part 5 of the Policy.
SECTION 12 – WRECK REMOVAL
It was in April last year that the Nairobi Convention on the Removal of Wrecks came into force. Since then RaetsMarine has been issuing required Blue Cards in order to enable our Assureds compliance with this Convention. During our review it was felt that more could be done in order to outline the cover we offer. With this in mind is that the wreck removal cover has been expanded into three separate paragraphs dealing with distinct heads of cover. For their part, the Exclusions and Limitations provisions remain unchanged.
PART 3: WAR PROTECTION AND INDEMNITY COVER
Favouring to work with one main document, our frequently used War P&I wording has been incorporated into our Policy as a new part. As usual, this additional cover is subject to agreement with the underwriter and whenever included the Certificate of Insurance (COI) will reflect this accordingly.
PART 4: GENERAL TERMS AND CONDITIONS
SECTION 33 – PAYMENTS TO THE COMPANY
A new section on Premium Tax has been added at the end of this section under number 33.7
Also in this section a new 33.8 has been added dealing with ‘schedule payments’. The intention behind this section is to formalize in the Policy wording a procedure which up to now works mainly in practice.
SECTION 34 – CESSER OF INSURANCE AND TERMINATION
The last three years has seen much progress in the ‘sanctions’ field. We have no doubt this is a fact known to our Assureds as much as it is to us. RaetsMarine’s ability to serve the totality of our clients depends on being able to stay clear of sanctions infringements and with this in mind is that we have included a new section 34.3.
SECTION 38 – CLAIMS
The ability of a shipowner to limit their liability is a recognized by numerous national and international legislations. Intending to ensure that our Assureds safeguard their position in this respect, a new section 38.17 has been included.
SECTION 39 - MAXIMUM AMOUNT INSURED
A new section has been added to bring clarity in relation to instances when more than one limit applies under the Policy of Insurance under number 39.2
SECTION 41 – JOINT ASSUREDS AND CO-ASSUREDS
A complete review of this section has been undertaken in order to more distinctly outline the two parties, as well as their rights and obligations under the Policy of Insurance. This should be read in conjunction with the New Contractor’s Co-assurance Cover (NEW Clause 15), which has been designed to operate in instances where a charter party requires the Owners to name the Charterers as Co-assured (for instance SupplyTime). Additional Clause 15 Cover, once agreed with the underwriter, should be reflected in the COI.
SECTION 47 – CONDITION, OTHER SURVEYS AND INSPECTIONS
This is an entire overhaul of our current provision aiming to bring this more in line with our current practices. Our expectation is that in the long run this new provision will enable both the Company and our Assured to work together in safeguarding the condition of the Insured Vessel and the management of the insured risk; unquestionably in the direct interest of both parties.