In case, vessels are over fifteen years of age and the insurance company withdraws

[majid72]

Hello.

Would you please check the following text?

"In case, vessels are over fifteen years of age and the insurance company withdraws damage (if any), the seller is obliged to pay all relevant expenditures because of the overage."

 

[tedmc]

In case vessels are over fifteen years of age and the insurance company withdraws damage (if any), the seller is obliged to pay all relevant expenditures because of the coverage.

What do you mean by the phrases underlined?

 

[majid72]

In case vessels are over fifteen years of age and the insurance company refuses to pay for damages (if any), the seller is obliged to pay for all expenditures caused by the overage (overage refers to the age of vessels when they are over fifteen years old).

 

[tedmc]

I find your sentence not logical. If the vessel is more than fifteen years old and overaged, which the insurance company would have checked before issuing the insurance, the insurance would not have been issued to the vessel in the first place.

Thus the question of refusal to pay compensation in the event of damage to the vessel should not arise.

You are talking about discovering that a vessel is overaged only after an accident has occurred and a claim is made for damages and is rejected by the insurance company. I believe the age of a vehicle is the first thing the insurance company would check before issuing an insurance.

 

[majid72]

Re: In case, vessels are over fifteen years of age and the insurance company

Thanks for your reply.

Firstly, an insurance company issues insurance policy after nomination of a vessel, it doesn't care about the age of the vessel when issuing the document. If the vessel is over fifteen years of age, according to the insurance company's terms and conditions, it refuses to pay for any damage resulting from the overage and buyer or seller needs to undertake any damage incurred and now It is up to either of them to ship the cargo with the overage vessel.

Secondly, a cargo and not a vessel is insured by buyers or sellers .

Best regards.

 

[tedmc]

Thanks for your reply.

Firstly, an insurance company issues insurance policy after nomination of a vessel, it doesn't care about the age of the vessel when issuing the document. If the vessel is over fifteen years of age, according to the insurance company's terms and conditions, it refuses to pay for any damage resulting from the overage and buyer or seller needs to undertake any damage incurred and now It is up to either of them to ship the cargo with the overage vessel.

Secondly, a cargo and not a vessel is insured by buyers or sellers .

Best regards.

I find the above does not make sense. The whole purpose of an insurance is to cover the risks of a vessel being damaged, which the insurance premium is based.. The insurance company has the responsibility to assess the risks, taking into consideration various factors including the age of the vessel of a vehicle. It cannot just deny responsibility using "overage" of the vessel as the reason.

 

[emsr2d2]

This is still confusing! Does the insurance policy that you're talking about cover the cargo or the vessel?

 

[majid72]

I find the above does not make sense. The whole purpose of an insurance is to cover the risks of a vessel being damaged, which the insurance premium is based.. The insurance company has the responsibility to assess the risks, taking into consideration various factors including the age of the vessel of a vehicle. It cannot just deny responsibility using "overage" of the vessel as the reason.

An insurance company classifies vessels in terms of their age into five different classes: 1- vessels up to 15 years of age 2- vessels between 16 to 20 years old and etc. If a vessel is overaged, more insurance fees should be paid by buyer who insures the cargo taking the age(s) of vessels into account. Buyer deducts, as agreed between buyer and seller who has nominated a vessel, part of the amount of the cargo based on every additional age of a vessel.
I hope that you find the above clear.

 

[majid72]

Re: In case, vessels are over fifteen years of age and the insurance company

This is still confusing! Does the insurance policy that you're talking about cover the cargo or the vessel?

The insurance policy covers the cargo.

 

[emsr2d2]

OK, so the owner of the cargo insures the cargo. The owner of the vessel insures the vessel. Perhaps they are the same person/company but perhaps they're not. If the vessel sinks and the cargo is lost, there could be two insurance claims - one for the vessel and one for the cargo. The person who insured the vessel must have declared the age of the vessel when applying for the insurance. Does the person insuring the cargo have to declare what vessel it is going to be carried on, and the age of that vessel? If so, how could the insurance company only find out after the accident that the vessel is "overage"?

 

[tedmc]

Buyer deducts, as agreed between buyer and seller who has nominated a vessel, part of the amount of the cargo based on every additional age of a vessel

I do not quite understand this sentence. I take it that the buyer is the consignee or the receiver of the goods. The party which sends the goods(whom you call the seller) is the consignor and they are responsible for buying the insurance for the vessel and cargo. It is not plausible that insurer does not know or does not ask for the age of the vessel being insured.

 

[majid72]

OK, Does the person insuring the cargo have to declare what vessel it is going to be carried on, and the age of that vessel? If so, how could the insurance company only find out after the accident that the vessel is "overage"?

Yes. buyer has to declare the age and type of cargo.
If an accident occurs and vessel is overaged, insurance company demands buyer to submit a copy of the vessel documents which the buyer in turn demands seller or shipper to send them.