Comprehensive Insurance of Fishing Vessels Under 100 Tonnes
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 Comprehensive Insurance of Fishing Vessels Under 100 Tonnes?
Hull Insurance for fishing vessels covers total loss and partial loss of a fishing vessel under 100 tons, as well as damage to its appurtenances. The insurance also covers damage caused by the vessel in a collision and damage otherwise resulting from mistakes in its operation. In addition, the policyholder may purchase special interest insurance for the vessel to cover direct and indirect financial losses that may be suffered if the vessel is lost.
What Is Covered?
Total loss.
Loss or damage to a ship caused by sinking or capsizing, storm, sea, current, ice, earthquake, avalanche, mudslide, fire, explosion, lightning, stranding, collision with ground, shipwreck, overturn, collision with another fixed or floating object.
Loss or damage to the ship's main engine.
Loss or damage due to burglary, theft or vandalism.
Rescue costs.
Participation in joint damage at sea.
Costs of item disposal due to liable repairs.
Loss or damage to third parties caused by the ship through a collision and loss or damage caused in other ways due to mistakes in its operation.
Cost of removing the wreck of the boat.
What Is Not Covered?
Compensation claims from the owner's or operator’s employees. The same applies to compensation claims from the owners of catches or other things that the ship carries.
Damage to the parts of the ship that have a material defect, construction defect or repair defect.
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?
The insurance only applies to the insured vessel within Iceland’s exclusive fishing zone, except in cases of specific voyages to ports in Western Europe.
What Are The Insured's Obligations?
Provide all necessary information, whether at renewal or when making changes to the insurance.
The insured is obliged to grant Vörður permission to inspect the insured property and its equipment upon request.
As soon as the policyholder becomes aware of or suspects that a claim for damages may be made against him, he must notify the company in writing.
The insured must handle vessel repairs unless Vörður requests otherwise and consult the company on place and time. Failure to do so releases the company from paying any resulting extra costs.
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.