According to Cl. 16-3, last sentence, the loss of time period commences at the time of the casualty. This provision was introduced to simplify the computation of the claim under the loss of hire policy.
It is conceivable that the vessel may suffer loss of income prior to the time when the damage occurred. For example, a vessel staying in Port A is fixed for a voyage with cargo from Port B to Port C. The ballast voyage from port A to port B is normally estimated to take five days while the loading in Port B and the voyage to Port C and subsequent discharge, will take 25 days. The freight, USD 300,000, is payable at destination, i.e. USD 10,000 "per day", totally 30 days including the ballast voyage. The vessel suffers a casualty the first day after departure from Port B in loaded condition and has to return to Port B for discharge and repair. The estimated repair time gives the charterer the right to cancel the contract of affreightment, and the assured cannot claim freight or distance freight. However, one may say that the vessel has been deprived of income both under the ballast voyage, during loading in Port B and the voyage up to the casualty, but such loss is not covered under Cl. 16-3. Neither is the loss of the charterparty covered under Cl. 16-3.
So, under the loss of hire insurance, only the loss of income per day (the daily amount) multiplied by the number of days from the casualty occurred until completion of repairs, less the deductible period, is recoverable.
 What is recoverable under the loss of hire insurance must not be confused with what may be claimable in tort against a third party. If the damage was caused by a collision with another vessel, it may well be that the total net freight under the voyage charterparty frustrated due to the collision may be claimable against the owner of the other vessel.
 Cf. Cl. 16-13 on extension of the loss of hire period beyond completion of repairs in certain instances.