Maritime Insurance

Norwegian Plan still a firm favourite with shipping firms

THE Norwegian Plan is the backbone of the Nordic insurance market whose clarity and coverage is a winning formula that is attracting business from rival centres such as London.

Drawn up in 1996, for supporters, the plan offers a co-ordinated and comprehensive regime that avoids gaps in cover and unnecessary overlaps between policies.

“The plan is not just a set of hull conditions but a policy that starts with the all risks principle, where everything is covered unless it is specifically excluded,” said Nic Wilmot, senior vice president of Gard.

Now used by all major Norwegian shipping companies irrespective of the market in which they are insured, the plan has also been adopted by international owners and even where neither shipowner nor insurer has any Norwegian connection.

Mr Wilmot suggests that its great strength lies in its practical details and the high level of shipowner participation in its drafting.

“Great care has been taken to protect the legitimate expectations of assureds so that they will not unexpectedly find themselves without cover,” he said.

“This also protects the position of brokers and fosters dialogue rather than confrontation between the three parties.”

Written clearly and clarifying many issues of practice, the plan has kept disputes over interpretation to a minimum — with only a handful of cases ending up in court.

“Most of these have been resolved with the help of one of the official Norwegian average adjusters or independent legal experts,” said Mr Wilmot.

“The plan gives greater certainty to its users than any other standard system used in the international market.

“It also offers a claims service designed to support the Norwegian and the Nordic claims-handling mode.

“All the new hull conditions that have been produced since 1996 have incorporated elements from the plan, but none of them have included the full range of benefits available.”

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