According to Cl. 16-1 of the Plan, see under 3.4 above, it is a basic condition for the loss of hire insurer's liability that the loss of income is a consequence of damage to the vessel which is recoverable under the specified hull conditions or which would have been recoverable if no deductible had been agreed. This means that when the vessel has suffered damage, hull survey reports will normally be submitted. Nevertheless, the loss of hire insurer will normally obtain separate loss of hire survey reports, hence it is essential that he is notified in time.
Hull survey reports will normally contain: information about the nature of the casualty and the voyage; the time of occurrence; reference to the relevant documents and other information which has been available to the surveyor; a description of the casualty which, in the surveyor's opinion, gave rise to the damage; a description of the damage attributable to the casualty; reference to any disputes with regard to the damage; a detailed specification of all repairs effected and the actual cost of each item (including information about deferred repairs and temporary repairs); information about the use of spare parts, overtime, work not concerning the insurer; common expenses; and such other information as the nature of the casualty makes it natural to include.
Loss of hire survey reports must in addition provide necessary details regarding the time lost due to "the vessel being wholly or partially deprived of income as a consequence of damage to the vessel."
Time lost at the place of the accident, slow-steaming, removal to/from the repair yard, tank cleaning, waiting time, engine- and sea trials etc. must be specified individually and separately from the repair time. The time required for the damage repair, if carried out separately, must be stated. The time lost must be specified in days, hours and minutes, see Cl. 16-4. If assureds' repairs are carried out simultaneously with damage repairs, it is necessary to state the total time required for all assured's repairs, if carried out separately, and the time required for such assured's repairs which were either carried out to fulfil classification requirements (due or not due), or necessary to meet technical and operational safety requirements for the vessel including cargo carrying ability, or associated with reconstruction, see Cl. 16-12.
The main concern for the loss of hire insurer is to get a detailed picture of the cause of the casualty, the extent of the repair period and other periods lost due to the casualty, in order to be able to assess whether the loss is covered under the insurance.
In order to accomplish this, the loss of hire insurer would normally have to require the assured to provide some particulars and documents in addition to the survey reports. The assured is obliged to provide the insurer with such information and documents as are available to him and are required by the insurer for the purpose of settling the claim, see Cl. 5-1, sub-clause 1.
In most cases the following documents/information will be required in support of the assured's statement of claim:
In the event of an open policy or if the case is complicated, additional documents and information may be required by the insurer.
If the assured, intentionally or through gross negligence, fails to fulfil his duties to provide particulars and documents, the insurer is only liable to the extent he would have been liable if the assured had fulfilled his duty, see Cl. 5-1, sub-clause 2. If the assured has acted fraudulently, the insurer is free from all liability and may terminate the insurance contract, see Cl. 5-1, sub-clause 3.