Navigating Limits

The London Market and other markets lay down certain navigational restrictions, both permanent and seasonal, principally Arctic, Antarctic, Baltic, St. Lawrence, etc. which are deemed particularly hazardous chiefly due to ice at certain seasons of the year.  These are known as Navigating Limits (Clause 34) and it is a condition that the vessel will not trade in the designated areas/seasons.  However, it is usually possible to apply to underwriters for permission to breach Navigating Limits against payment of an Additional Premium (AP) which is normally charged voyage by voyage. All standard marine policies specifically exclude damage resulting from wars and hostile acts, capture, seizure, arrest or strikes, etc. (Clauses 29 to 33)  From time to time marine underwriters declare certain ports and areas of the world where hostilities are taking place or threatened as “War Zones”, in which normal marine policy cover is suspended. Other market underwriters, however, specialise in providing specific cover for War Zones for which an Additional Premium is charged. Should any vessel be required to enter a War Zone brokers should be consulted without delay so that special War Risk cover can be arranged at rates which vary in direct proportion to the level of war-like activity in that area and thus to the level of risk.  For vessels flying certain flags, including British, Norwegian and Greek, special War Risk cover partly underwritten by the national governments can be arranged usually through P & I Club channels.  Owners normally arrange for their ships to be “held covered” for War Risks on a permanent world-wide basis at a cost which in peace-time is modest if not nominal. Whilst no two casualties are ever the same, there are always a number of common elements to which attention should be paid to ensure a prompt and trouble-free settlement.  Within the ship manager’s organisation close liaison and understanding between the insurance/claims department, the technical superintendents and the accountants is most desirable.