Section I: Marine, river and lake insurance

In the event of damage, the insurer will only reimburse the cost of replacements and repairs recognised as necessary to restore the vessel to a seaworthy condition, to the exclusion of any other compensation for depreciation or unemployment or any other cause whatsoever.

Regardless of the number of events that occur during the term of the policy, the insured is covered for each event up to the amount of the sum insured, without prejudice to the insurer’s right to request an additional premium after each event.

The vessel may be relinquished in the following cases: 1° Total loss ; 2° Repairs amounting to three quarters of the agreed value; 3° Impossible to repair; 4° No news for more than three months; the loss is deemed to have occurred on the date of the last news.

In the event of alienation or bareboat charter of the vessel, the insurance shall continue ipso jure in favour of the new owner or charterer, on condition that he informs the insurer within ten days and fulfils all the obligations which the insured had towards the insurer by virtue of the contract. The insurer may, however, cancel the contract within one month of receiving notification of the alienation or charter….

The alienation of the majority of the shares of a co-owned vessel alone triggers the application of article L. 173-14.

The provisions of this section are also applicable to insurance contracts concerning ships which are insured only for the duration of their stay in ports, roadsteads or other places, whether afloat or in dry dock. They are applicable to ships under construction.