Liability Insurance for Carriers and Transport Operators
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Liability Insurance for Carriers and Transport Operators?
Liability insurance for carriers and transport operators is intended to cover companies engaged in passenger transport by ships for any liability that may arise under the provisions of the Maritime Act.
What Is Covered?
Liability incurred by the insured if a passenger is injured or dies during the voyage.
Liability incurred by the insured if luggage is lost or damaged during the voyage.
Liability incurred by the insured due to damage caused by negligence in the performance of duties by the ship’s captain or others working on behalf of the ship.
Liability incurred by the insured due to delays related to the transport of passengers or luggage.
What Is Not Covered?
Losses that the carrier or transport operator assumes if the liability goes beyond their general legal liability as a carrier or transport operator. Fines or other penalties.
Losses that occur before a passenger boards the ship and after they disembark.
Losses for which another party, who is responsible for part of the transport under the carriage contract, is liable.
Losses related to live animals transported as luggage.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
The insured must ensure that only employees with legally required qualifications and competence operate ships/boats and other equipment.
The operation of the ship and its other activities must comply with navigation rules and other written or unwritten regulations regarding passenger safety and care.
The insured must be in a physical condition to perform their duties safely and must not be under the influence of alcohol, stimulants, or sedative drugs.
What are the insured's obligations?
To provide all necessary information, whether at renewal, when making changes to the insurance, or when reporting a claim.
To report any damage and/or liability claims at the earliest opportunity, and no later than within one year from the date of the incident.
To provide Vörður with any information and documents they have or can obtain that are necessary to assess Vörður’s liability and pay compensation.
Where is the insurance valid?
The insurance is valid only within Icelandic territorial waters.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.