Clause 6: Perils

6.1 This insurance covers loss of or damage to the subject-matter insured  caused by

 6.1.1 perils of the seas rivers lakes or other navigable waters

 6.1.2 fire, explosion

 6.1.3 violent theft by persons from outside the vessel

 6.1.4 jettison

 6.1.5 piracy

 6.1.6 breakdown of or accident to nuclear installations or reactors

 6.1.7 contact with aircraft or similar objects, or objects falling therefrom,  land conveyance, dock or harbour equipment or installation

 6.1.8 earthquake volcanic eruption or lightning.

6.2 This insurance covers loss of or damage to the subject-matter insured  caused by

 6.2.1 accidents in loading discharging or shifting cargo or fuel

 6.2.2 bursting of boilers breakage of shafts or any latent defect in the  machinery or hull

 6.2.3 negligence of Master Officers Crew or Pilots

 6.2.4 negligence of repairers or charterers provided such repairers or  charterers are not an Assured hereunder

 6.2.5 barratry of Master Officers or Crew,

provided such loss or damage has not resulted from want of due diligence by the Assured, Owners or Managers.

6.3 Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause 6 should they hold shares in the vessel.

 

INSTITUTE ADDITIONAL PERILS CLAUSES - HULLS

1             In consideration of an additional premium this insurance is extended to cover

 1.1 the cost of repairing or replacing

 1.1.1 any boiler which bursts or shaft which breaks

 1.1.2 any defective part which has caused loss or damage to the Vessel  covered by Clause 6.2.2 of the Institute Time Clauses - Hulls 1/10/83,

 1.2  loss of or damage to the Vessel caused by any accident or by negligence,  incompetence or error of judgement of any person whatsoever.

2              Except as provided in 1.1.1 and 1.1.2, nothing in these Additional Perils Clauses shall allow any claim for the cost of repairing or replacing any part found to be defective as a result of a fault or error in design or construction and which has not caused loss of or damage to the Vessel.

3              The cover provided in Clause 1 is subject to all other terms, conditions and exclusions contained in this insurance and subject to the proviso that the loss or damage has not resulted from want of due diligence by the Assured, Owners or Managers. Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause should they hold shares in the Vessel.

Comments to ITCH

ITCH covers named perils only as listed in Clause 6 (and 7). Piracy is included as a marine peril under Clause 6 but is normally excluded from the marine policy and included on the war risk policy, see note below to ITCH Cl. 23. Under ITCH the assured has the burden of proving that a loss is caused by an insured peril. Although ITCH is based on a named perils approach there are specific exclusions. War and related perils are excluded by ITCH Cls. 23 – 26 and MIA Section 55 contains exclusions for wear and tear and inherent vice.

ITCH Cl. 6 Covers Loss caused by latent defects that is consequential damage but not the original part itself.

The Additional Perils Clause, as quoted above, covering any accident and negligence of any person etc., is included in most Hull & Machinery policies. To a certain extent this Clause also provides cover for the cost of repairing a latent defect; ITCH + AP Clause cover damage to the defective part when it causes damage to other parts.

NMIP Comparison

Under the Nordic plan marine insured perils are dealt with in Cl. 2-8 and war perils in Cl. 2-9. Piracy is included in Cl. 2-9. The Plan’s hull conditions are based on the all risks principle. The excluded perils are stated in Cl. 2-8 and in Chapter 12. This means that it is the insurer who has the burden of proving that a loss is caused by an excluded peril, Cl. 2-12. However, the same Clause states that the assured has the burden of proof that the loss is of a kind covered by the insurance, eg. physical damage in the case of H&M insurance, and the extent of the economic loss that the assured has suffered.

Clause 12-3 contains an exclusion similar to MIA Section 55 excluding liability for wear and tear and similar causes. Cl. 12-4 states that damage  caused by error in design or faulty material is covered if the damaged part has been  approved by class.  Because cover is based on the all risks principle any damage that is not regulated by either Cl. 12-3 or Cl. 12-4 will remain covered.

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