Cl. 16-11 cover is subsidiary to the hull cover

Sub-clause 1 of Cl. 16-11 provides that the loss of hire insurance does not cover costs which are recoverable from the hull insurer.[29] This provision must be seen in connection with Cl. 12-7 concerning temporary repairs and Cl. 12-8 concerning costs incurred to speed up repairs. Under Cl. 12-7, the hull insurer is liable for the entire cost of temporary repairs when permanent repairs cannot be carried out where the ship is situated. The cost of temporary repairs in other cases and the costs incurred to speed up repair work are covered within 20 % p.a. of the agreed insurable hull value for the time saved for the assured, cp. 7.2.3 above. These provisions are based on the assumption that any excess costs incurred to save time will be covered by the loss of hire insurer. This means that the loss of hire insurance will be supplementary and subsidiary to the hull insurance in this respect.  The decisive element for the liability of the loss of hire insurer is the extent to which costs incurred to save time are recoverable from the ship's actual hull insurer. The liability of the loss of hire insurer is, however, not increased if the costs are not recoverable from the hull insurer because they fall below the deductible. The decisive criterion is whether the costs are of a kind that are recoverable under the ship's actual hull insurance.



[29]  Ibid note 47, where it is explained that Cl. 16-16 does not apply to any overlap between the hull insurance and the loss of hire insurance for extra costs covered pursuant to Cl. 16-11.