Water transport insurance

Water transport insurance

Voluntary water transport insurance

The object of insurance is the property interests of the Insured relating to the possession, use and/or disposal of water transport.

To be insured shall be:
1) vessels of sea-, river-, lake- and mixed river-sea going vessels, duly registered and having the appropriate class;
2) yachts, motorboats, cutters, scooters (jet boats); 
3) stationary support construction, housing and other vessels designed for placement on the water and able to move on the water but not suitable for navigation.

The insurance amount is set by the insurance contract by agreement of the parties and shall not exceed the actual (insurance) value of the vessel and additional equipment on the date of signing the insurance contract.

The actual value of the vessel (insured value) is determined on the basis of an expert assessment of the object to be insured, made by the Insurer. According to the agreement between the Insured and the Insurer, the expert assessment can be done by specialist organizations (appraisers, surveyors).
In the case of concluding the contract of insurance to the insured amount less than the actual (insurance) cost of the Vessel, the amount of the insurance indemnity in relation to the size of the losses shall be calculated in proportion to the relation of the insurance value to the actual (insurance) value of the Vessel, unless otherwise specified by the insurance contract. 
The size of the insurance premium payable under the insurance contract, shall be calculated according to the insurance rates that determine the rate of the insurance premium charged from the unit of insured amount given the nature of the insurance risk. 
As the insured event shall be recognized loss (total loss), damage of the insured Vessel as a result of the following events:
Directly related to navigation on waters, in particular:

1) in severe weather conditions – strong wind and churning of water surface;
2) flooding or tilting of the vessel, as a result of severe weather conditions and the flow of water into the Vessel, leakage in the body of the vessel or its rollover due to the displacement of cargo in the holds;
3) collision with other vessels;
4) contact with the floating and fixed objects;
5) touching the ground and getting aground.

1.Fire, explosion;
2.Intentional throwing overboard of a property, which is a part of the equipment of the Vessel in times of danger  in order to prevent an increase in the loss;
3.Collisions with ground-based means of transport, equipment or facilities of harbors or docks;
4.Earthquakes, volcanic eruptions or lightning strike;
5.Accidents in loading, discharging or shifting cargo, during loading or unloading fuel.
6.Explosion of boilers, breakage of shafts; 
7. Hidden defects in machinery or hull of the vessel, the errors in the design of the vessel;
8. Collisions with manned aircraft, their fragments;
9.  Unlawful acts of third parties (other than members of the team).
If the cause of the loss, destruction or damage is not excluded by Article 5 of these Rules.
The contract of insurance may provide the insurance terms that provide for liability of the Insurer under the following risk groups:

Total loss or damage to the insured vessel.

Under the insurance contract, concluded on this condition, shall be reimbursed:
1) losses due to total loss of the Vessel (actual or constructive), or the costs of repairing the damage in its hull, machinery, equipment, occurring for any reason other than those listed in paragraph 5.1 of these Rules;
2) losses, costs and charges associated with the general average of the share of the Vessel,;
3) necessary and appropriate expenses incurred for the salvage of the Vessel;
4) it is necessary and appropriate to incur expenses to prevent, reduce and establish the amount of loss if the loss is to be compensated under the terms of the insurance contract.

Damage to the insured Vessel.

Under the contract of insurance, concluded on this condition, shall be reimbursed:
1) the costs of eliminating the damages to the Vessel, its machinery, machines or equipment that have occurred for any reasons.
2) the damages, costs and charges associated with the general average of the share of the vessel;
3) necessary and reasonable costs incurred to prevent, reduce and eliminate the amount of loss, if the loss is to be compensated under the insurance conditions.

Total loss of the Vessel. 

Under the insurance contract, concluded on this condition, shall be reimbursed the losses due to total loss of the Vessel (actual or constructive) that occurred for any reason.

Total loss of the Vessel, including the salvage charges. 

Under the insurance contract, concluded on this condition, shall be reimbursed:
1)losses due to total loss of the Vessel (actual or constructive) that occurred for any reasons.
2) necessary and reasonable expenses incurred to save the Vessel to prevent, reduce losses and to establish its size.