Legal notice to Members after the Japan earthquake and tsunami
Norwegian Hull Club established its contingency team immediately following reports of the earthquake in Japan on Friday March 11th. 5 casualties has so far been registered to ships insured by the Club. Based on available sources 55 vessels insured by the Club is still located in the vicinity of the earthquake area and could potentially be effected by the consequences of the earthquake and the tsunami.
Physical damages to the vessels as a direct consequence of the earthquake and/or the tsunami are in principle an insured peril under the Hull & Machinery insurance. Similarly, in policies where collision liability forms part of the H&M policy, there is insurance cover for third party liability for damage done to fixed and floating objects when there is physical contact between the vessel and property.
However, Members and clients should be aware of one important general exception from insurance covers that might have relevance. As will be noted from reports from Japan, there is an unresolved situation at nuclear facilities Fukushima Daiici, Onagawa and Tokai. This situation has resulted in evacuations from the subject locations. To our knowledge up until today there are no indications that the present level of radiation does pose a threat to vessels and its personnel, but this situation might change at any time.
All insurance policies contain a Radioactive Exclusion Clause, which excludes from cover the following perils:
1. ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel,
2. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof,
3. any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter,
4. the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes.
5. any chemical, biological, bio-chemical, or electromagnetic weapon.
Under the present circumstances in Japan, please take careful notice of this important exclusion from the insurance cover. We obviously urge shipowners to assess the situation to protect their people and property. Norwegian Hull Club will continue to monitor the development in Japan, and revert with updates on this subject as required.
If there are any comments or questions to this legal notice kindly contact our Legal Department at e-mail address: legal@norclub.no or by phone:
Per-Åge Nygård +47 91599808
/ Roar Sanden +47 91116815 /
Casper Meland +47 97753632 / Haakon Stang-Lund +47 91755274