Common use of Types of Insurance Coverage Clause in Contracts

Types of Insurance Coverage. Owner shall at all times during the Term procure and maintain insurances on the Vessel in accordance with the following provisions. The Vessel may be insured under the manager’s fleet policies, subject to Charter’s approval, provided always that the manager provides evidence to Charterer at the renewals of such policies that the insurance policies and cover are sufficient. In all instances, Owner shall work toward establishing, and Charterer shall approve (such approval not to be unreasonably withheld, conditioned or delayed), insurance values, amounts, coverages and deductibles which result in the most economical premiums as compatible and consistent with insurances to the standards which prudent shipowners operating first class LNG carriers/SRVs should observe in insuring LNG carriers of a similar type, size, age and trade as the Vessel, which take into consideration operation of the Vessel as an SRV, and which insurances otherwise conform with the terms of the Charter. Before Delivery under the Charter, Owner and Charterer shall agree on insurance cover having regard to the terms of this Schedule IV. A review of insurance requirements shall be undertaken by Charterer and Owner annually during the term of the Charter to assess the reasonableness of coverage levels, terms and conditions (including any limits on ports at which Vessel may call), deductibles and premiums. The objective of the review is to ensure that adequate and appropriate insurance protection and security is available at the most reasonable premiums and deductibles possible. Subsequent to each review, without prejudice to the provisions of paragraph 8 of this Schedule IV, the insurance program outlined in this Schedule IV shall be adjusted based on the mutual agreement of Charterer and Owner.