2.2 The first Norwegian Marine Insurance Plan 1871
The first Norwegian Marine Insurance Plan was published in 1871, more than 100 years after the case of Carter v Boehm (1766) 3 Burr 1905 (97 ER 1162), and almost 100 years after the formalization of the English SG (ships and goods) policy in 1779. Before 1871, the individual companies each had their own conditions.(1) Atle Thowsen, Den norske Krigsforsikring for Skib, Bergen 1988 (Thowsen), p. 22. The first marine insurance company in Danmark/Norge, “Det Kongelig Oktroierede Sø-Assurance Kompagni” was established in 1726, cf. Thowsen p. 13. The first Norwegian company of any significance was “Langesundsfjordens Skibsassuranceforening” (also called “Første norske”) established 10. February 1837, Thowsen p. 16. This led to the establishment of several mutual insurance companies along the coast of Norway from 1837 until 1900. However, agreement was reached among the marine insurers that they should establish a Norwegian Plan. The reason for this was the vast expansion of the Norwegian international fleet from around 1850, as well as the technical innovations in naval warfare that developed during first the Crimean war (1853–1855) and then the North American civil war (1861–1865). The growth of the Norwegian commercial fleet made it possible to sail in these waters and the wars increased the need for sea transport, resulting in higher freight rates.(2) Thowsen pp. 20–22.
However, these wars also represented a military technical revolution in particular with the invention of the torpedo in 1862, which meant that sailing with a neutral Norwegian flag did not provide sufficient protection. This development influenced both the Norwegian marine insurers’ general attitude towards marine insurance, as well as their calculation of risk and attitudes towards war risk insurance in particular. The more efficient maritime naval weapons, together with the increassed value of the vessels following the transfer from sailing vessels to steam vessels, led to a greater focus on calculating the risk involved and coverage possibilities. Both the marine insurers and the ship owners argued for better and more standardised conditions for marine insurance. The answer was the establishment of Det norske Veritas in 1864, followed by the publication of the Norwegian Marine Insurance Plan in 1871.(3) Thowsen pp. 20–22.
The 1871 Plan covered vessel, cargo and freight and was drafted by a Plan Committee headed by the chairman of Veritas, Hr. Smith Petersen, with the average adjuster A. Winge as secretary. Also participating was the law professor Brandt.(4)Forhandlinger vedrørende sjøforsikringsplanen 1871 (Forhandlinger 1871) p. 1. The Committee discussed the newly revised Hamburgerplan, and reached the conclusion that it contained contradictory rules and that Norway had reached such a respectable status as a seafaring nation that it was reasonable for them to draft their own plan.(5) Forhandlinger 1871 pp. 1–2. The draft was prepared by the average adjuster J. Aall Møller, who developed the Plan without regard to the revised Hamburgerplan, which he did not consider “good work”.(6) Forhandlinger 1871 p. 2. His strategy was to make a new structure, aimed at making it easy to find the provisions and using as few words as possible.(7) Forhandlinger 1871 p. 3. It is interesting to note that this strategy – even if developed into several different structures and with different material content – has followed the development of the Plan to modern times, not least during the great revision in 1964 led by professor Sjur Brækhus. However, the structure of the 1871 Plan was apparently not a success, since it was completely revised 10 years later, and nor was there any mention in the Commentary of continental marine insurance jurists, or of English court cases.