Interest Insurance of Fishing Vessels Larger than 100 Gross Tons
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 type of insurance is Interest Insurance for fishing vessels larger than 100 gross tons?
Interest Insurance covers the insurable interests that the insured wishes to protect. Under this insurance, it is not the vessel itself that is insured, but rather the shipowner’s interests in the operation of the vessel. Vörður and the policyholder agree on the insured value at the beginning of each period, which is then paid out in the event of a loss.
What Is Covered?
Total loss.
What Is Not Covered?
Damage due to insufficient maintenance, grouting, fatigue, corrosion, wear and tear, or similar causes. The same applies to loss or damage attributed to design defects.
Loss or damage that is caused by the fact that the ship was unseaworthy when it last left port, was inadequately equipped or staffed, did not have the necessary shipping documents or was not safely loaded.
Are There Any Restrictions or Precautionary Rules?
The insured is required to comply with Vörður's precautionary rules.
When the vessel is in port or at anchor, its moorings must be properly secured. The insured is also required to regularly monitor the vessel.
The insured must follow the instructions of public authorities, such as the Maritime Administration and the Certification Office. The vessel must always be fully seaworthy and have a valid seaworthiness certificate when leaving port.
The vessel must always be securely locked when unmanned in port, and otherwise secured so that unauthorized persons cannot easily gain access.
Where Is The Insurance Valid?
Varðar is released from liability if the vessel sails south of 40° north latitude or north of 70° north latitude during the period from November 16 to May 15.
What Are The Insured's Obligations?
Provide all necessary information, whether at renewal or when making changes to the insurance.
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.