3.2 The Structure of the Nordic Marine Insurance Plan
The Nordic Marine Insurance Plan operates with different parts and chapters to regulate the scope of cover in the event of a casualty. Part One consists of several general rules that apply to all types of insurance. For the purpose of this thesis, chapters 2 and 3 are of particular importance. Chapter 2 consists of rules concerning among other perils covered, cf. Cl. 2-8, and rules related to causation, cf. Cl. 2-11. Chapter 3 regulates the duties of the insured, including but not limited to the duty to comply with safety regulations and the duty of disclosure.
The remaining parts of the Nordic Marine Insurance Plan regulate the cover for the specific insurance types. Hull insurance is regulated in Part Two, which includes chapters 10 to 12. Chapter 10 applies for all losses under the hull insurance. Chapter 11 applies in the event that the damage is so extensive that the vessel must be considered a total loss, whereas Chapter 12 applies in the event that the “vessel has been damaged without the rules relating to total loss being applicable”, cf. Cl. 12-1. Hence, chapters 11 and 12 cannot apply simultaneously for the same casualty. This distinction results in different rules becoming applicable in the event of a loss caused by faulty material or error in design, depending on the extent of damage.
Loss of hire insurance is regulated in Chapter 16 in Part Three. The rules in Chapter 16 apply independently of Part Two as they apply to a different type of insurance. Still, the rules in Chapter 16 are closely intertwined with the rules relating to hull insurance, as a prerequisite for loss of hire cover is that the vessel has been deprived of income “as a consequence of damage to the vessel which is recoverable under the conditions of the Plan”, cf. Cl. 16-1.
The rest of Part Three will not be relevant for the purpose of this thesis. The same applies to Part Four of the contract, which regulates insurance for fishing vessels, mobile offshore units and builder’s risk.