Small Boat Insurance
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 Small Boat Insurance?
Small Boat Insurance is intended for individuals and companies that own small vessels used either for private purposes or for commercial fishing. The insurance compensates for damage to the vessel specified in the policy certificate, its equipment, provisions, and supplies. It also covers third-party liability losses if errors in operating the vessel lead to a collision and damage to the property of others, and it insures the boat’s engine if this is stated in the insurance certificate.
What Is Covered?
Total loss if the boat perishes.
Total loss in the event that the boat is damaged to such an extent that the cost of saving and repairing it amounts to a higher amount than stated on the certificate.
Total loss in the event that the boat gets lost or goes missing and has not been found after three months have passed since the company was notified of the disappearance.
Loss or damage due to fire, explosion or lightning.
Loss or damage due to running aground, stranding or the boat sinking.
Loss or damage due to storms, earthquakes, avalanches and mudslides.
Loss or damage caused by surges.
The owner's liability, according to the Icelandic Maritime Law, which is a direct result of damage caused by the boat during its voyage, whether it is material damage or bodily injury.
Cost of removing the wreck of the boat.
Tjón á aðalvél bátsins.
What Is Not Covered?
Loss or damage to engines, power transition equipment, electrical systems, positioning devices, telecommunication devices, radar, fish finders, line winches and other similar equipment.
Loss or damage to masts, sails, or riggings during an organised sailing competition.
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.
Damage to the parts of the boat that have a material defect, construction defect or repair defect.
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.
Claims for damages from employees of the owner or operator.
Damage to items that the insured has borrowed, rented, is storing, selling, transporting, or otherwise has in their custody — including items taken without authorization.
Fines and other criminal penalties.
Indirect losses, such as loss of catch or costs due to delays.
Tjón vegna galla.
Tjón vegna eðlilegrar notkunar.
Tjón vegna ófullnægjandi viðhalds.
Tjón vegna rýrnunar.
Tjón sem verður við flutning.
Tjón vegna of mikils álags.
Tjón vegna breytinga sem eru ekki í samræmi við fyrirmæli framleiðenda.
Tjón vegna þess að útblástur vélar er tengdur við sjókælingu.
Óbeint tjón vátryggðs, svo sem aflatjón og kostnað vegna tafa.
Are There Any Restrictions or Precautionary Rules?
The insured is required to comply with Vörður's precautionary rules.
The vessel must comply at all times with the regulations of the Icelandic Maritime Administration and must always have a valid seaworthiness certificate when leaving port.
When a boat is stored in a harbor or at anchor, all moorings must be securely fastened. The same applies if the boat is stored on land. The insured must ensure that the boat is regularly inspected.
The vessel must be securely locked when left unattended. Navigation equipment, communication equipment, handline reels, and other loose equipment must be removed from the vessel when it is kept on land or in harbor for extended periods.
The main engine must be water-cooled and fitted with an alarm system that provides warnings for engine overheating, changes in oil pressure, fire, or water in the engine room.
The vessel must be properly and adequately maintained and equipped in accordance with its use. Furthermore, the insured, or persons for whom the insured is responsible, must comply with laws and regulations intended to ensure safety.
The insured must ensure that employees are not under the influence of alcohol or drugs while performing their work.
Where is the insurance valid?
The insurance is valid within Iceland’s fishing jurisdiction.
What are the insured's obligations?
To provide all necessary information, whether at renewal of the insurance or when making changes to it.
To grant Vörður permission to inspect the insured property and its equipment when requested.
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.