This document only provides a summary of the key features of the insurance. You will find all the terms and conditions in the policy conditions.
The cover relates to defence cover provided by the NNPC for "Freight, Demurrage and Defence" disputes.
Cover is provided for legal disputes in which the member or insured is involved which related to the insured vessel and includes both the
assistance of the NNPC’s in-house claimshandlers and legal advisers as well as for appointed lawyers and experts up to the limit as set out in the policy.
The policy provides cover for legal disputes arising in connection to the insured vessel.
The policy also provides cover for any costs award against the member or insured.
The limit of cover under the policy is Euro 100,000.- unless otherwise stated in the policy.
There is no cover for default risks and related claims.
The policy can only be taken out if the member or insured has also taken out a policy for P&I risks with the NNPC (Class 1).
In the event that a dispute relates to the recovery of salvage or towage, the legal costs up to 5% of the amount claimed shall be for account of the member or insured.
The Board of Directors always has the discretion to refused to cover a dispute under this polis or to apply limitations or additional terms and conditions as it may deem appropriate. The Board may also refuse to provide further cover under this policy if it deems appropriate.
The Board of Directors may decide to exercise its discretion for example if the member or insured refers the matter to a lawyer without approval of the NNPC, if the matter is reported too late and this results in additional costs or risks, or if the member provides incorrect information or does not co-operate in the assessment or handling of the matter.
The policy provides world-wide cover.
The member or insured is obligated to timely notify the NNPC of any matter which falls under the policy and to provide the NNPC with all relevant information and documentation. The member or insured is also obligated to pay the premium by the due date.
The payment of premium is required by quarter or bi-annually, as agreed.
The policy will commence and end on the dates referred to in the policy. The insurance will also be terminated when the P&I policy is terminated (for example in the event of a sale or bankruptcy of the insured vessel).
The policy can be terminated at the end of the policy year, subject to notice being given of no less than 2 months.