Common use of Compulsory Insurances Clause in Contracts

Compulsory Insurances. (a) The insurances required under paragraphs 1, 2, 3 and 4 above are sometimes together referred to as the “Compulsory Insurances”. (b) Owner may consider obtaining Increased Value Insurance (Hull Interest and Freight Interest Insurance (HI and FI) for an amount recommended by underwriters for a portion of the insured value on Hull & Machinery on terms (so far as applicable) similar to those for the Hull & Machinery insurance and with same insurers or others of similar standing. The decision whether to use such insurance and the percentage of the insured value to be covered by such insurance shall be made by Owner, taking into consideration the adequacy of the insurance coverage. (c) When the FSRU is idle or laid up, Owner may (or subject to availability, at the request of Company, Owner shall), in lieu of the insurance required hereunder, arrange port risk insurance under such forms as Company may approve in writing, such approval not to be unreasonably withheld, insuring the FSRU against the usual risks covered by such forms and for the amounts set out in paragraph 1. Owner shall obtain Hull & Machinery Insurance underwriters’ prior consent to such port risk insurance at the time of each renewal.