Tagged: P&I, piracy, renewal, shipowner

The Nordic Association of Marine Insurers (Cefor) has now released the 2010 version of the Norwegian Marine Insurance Plan (NMIP) updating their 2007 version. Whilst there would not appear to be any fundamental changes, owners may wish to be aware of the following.

Cefor has sought to clarify the relationship between the NMIP and the International Group P&I cover, specifically in relation to piracy risks under Chapter 15.

Clauses 15-20 make it clear that the war cover provided by Chapter 15 is seamless in relation to the war exclusion clauses used by the International Group of P&I Clubs.

Furthermore, Clauses 15-22 make it clear that the cover provided by P&I clubs is always subsidiary to the war cover provided by Chapter 15.

As Cefor has stated, this is important in relation to piracy, which is a war peril under the Plan but a marine peril under International Group P&I Cover, and means that all piracy-related losses will be covered by the Chapter 15 Insurer.

P&I Club cover is now per Gard’s Rules, not Skuld’s, in the event that the owner has cover with a non-International Group Club.

Collision cover under the NMIP no longer includes liability for damage to coral reefs, which the NMIP clarifies is more traditionally a P&I risk.

We anticipate that the NMIP 2010 will become standard for each renewal or new business led by the Norwegian market currently on NMIP 2007 terms.

Thank you to Cefor for the explanatory notes – further information can be obtained from your usual contact at FP Marine Risks.

 Print This Post