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7. Measures to avert or minimize loss

7. Measures to avert or minimize loss. Overview Insurance coverage of general average Particular average/salvage charges. 7.1. Overview. Duty to notify/avert or minimize loss cf. NMIP § 3-31/CICG § 25.1 Gard rule 82.1 (b) and 6.7 above. = connected to right to be reimbursed

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7. Measures to avert or minimize loss

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  1. 7. Measures to avert or minimize loss • Overview • Insurance coverage of general average • Particular average/salvage charges Marine insurance

  2. 7.1. Overview • Duty to notify/avert or minimize loss cf. • NMIP § 3-31/CICG § 25.1 • Gard rule 82.1 (b) • and 6.7 above. • = connected to right to be reimbursed • NMIP § 4-7 ff./CICG § 39-§ 40 • Gard rule 46 Marine insurance

  3. 7.1. Overview • Rests on fundamental insurance principles: • Fairness • Motivation to salvage • Economic effeciency • The rules more complicated in NMIP/CICG • Here: Only NMIP and CICG Marine insurance

  4. 7.2 Insurance coverage of general average • The YAR and the insurance • Some common rules • Special rules in NMIP Marine insurance

  5. 7.2.1 The YAR and the insurance • The main principles of the York Antwerpen rules: • Common safety • Common benefit • Insurance coverage provided in NMIP § 4-8/CICG § 40 Marine insurance

  6. 7.2.2 Some common rules • Must be a peril insured against • But: Cargo insurance on B and C clauses • Coverage of common benefit expences • The situation where the ship or goods is damaged • NMIP § 4-10 • CICG Commentary 369 Marine insurance

  7. 7.2.3 Special rules in NMIP • NMIP § 4-8 1 i.f: Valuation according to YAR • NMIP § 4-8 3: GA absorption clause • Extension of general average principles • NMIP § 4-9 • NMIP § 4-11 Marine insurance

  8. 7.3. Salvage measures • Introduction • The situation • The measures • Subjective requirements • The settlement Marine insurance

  9. 7.3.1 Introduction • The regulation • NMIP § 4-7 cf. § 4-12. • CICG § 39 and ICA § 6-4. • The main difference: Extent of cover • NMIA § 4-18: separate sum • CICG § 39 cf. ICA § 6-4: unlimited Marine insurance

  10. 7.3.1 Introduction • Limited practical importance in hull insurance: Measures to salvage ships will normally be GA • Conditions for liability concerns • The situation • The measures • Subjective requirement • The settlement: Not insurance but tort Marine insurance

  11. 7.3.2 The situation • A casualty must have occurred or threatened to occur • The problem: ”threatened to occur” • Not purely preventive measures • Imminent and great probability • ND 1946.263 Porsanger – treshold too low? Marine insurance

  12. 7.3.3 The measures taken • Must be of extraordinary character • Not foreseeable losses/expenses • Must be reasonable • But need not succeed • However: limited coverage according to § 4-18 Marine insurance

  13. 7.3.4 Subjective requirements • Any person may take the measures • The purpose must be to avert or minimize loss • No purpose/knowledge required as to incurring expenses. Marine insurance

  14. 7.3.5 Settlement • Any loss may be covered • No exclusions in NMIP or ICA for national cargo transports • But: CICG § 39 2 sentence: No coverage for third party liability in international transits Marine insurance

  15. 7.3.5 Settlement • Amount: • CICG § 39/ICA § 6-4: Unlimited • NMIP § 4-18 • No deductibles • Several interests: • Starting point: Apportionment of costs, NMIP § 4-12, CICG § 44 • Not practiced strictly Marine insurance

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