Subject of insurance

Subject of insurance is a ship under construction whilst at a shipyard. Apart from the ship, the insurance also includes machinery, equipment and material required for construction even before being carried into the ship.

Insured risks:

From the aspect of risk, a ship under construction goes through 5 phases:

  • the first phase starts with the preparation of material and parts of a future ship at the shipyard until the keel is laid down,
  • the second phase starts from the moment the keel is laid down and lasts until the ship launching,
  • the third phase includes the ship launching and special launch-related risks.
  • the fourth phase includes completion of the construction of the ship floating at the shipyard,
  • the fifth phase includes ship navigation (trials and other navigations).

The insurance does not cover the losses arising from:

  • the correction of a faulty design,
  • capture, seizure, restraint or detainment, hostilities or warlike operations, civil war, revolution, rebellion, insurrection,
  • strikes, labour disturbances, riots, demonstrations or manifestations,
  • the use of explosion or any weapon of war by terrorists or any persons who inflicted the loss from a political motive,
  • earthquake, volcanic eruption or large waves caused by earthquakes or volcanic eruptions,
  • the use of nuclear weapon, radiation and contamination,
  • any loss, damage, liability or expenses directly or indirectly incurred or increased or resulting from the use or operation of any means intended to inflict harm, of any computer, computer system, computer software program, malicious codes, computer viruses or processes or any other electronic system.

Immediately upon the occurrence, the Insured is obliged to notify the Insurer about the damage for the purpose of establishing the cause, scope and amount of damage by the Insurer’s average adjuster or the professional institution designated by the Insurer.