Battery Performance - Loss of Hire (BP - LoH) is the first cover of its type on the market. It covers loss of income arising from time lost during rectification of a performance issue of a vessel’s battery system.
Norwegian Hull Club is committed to supporting its clients and members on their sustainability journeys. An innovative product geared towards such enabling support is Battery Power - Loss of Hire cover. This product has been co-developed with Munich RE, a leading global provider of reinsurance.
The Club understands that our clients need the reassurance of a cover that will help them should there be a gap between a battery manufacturer’s quoted performance and real-world performance, resulting in battery repair or replacement measures that result in Loss of Hire situations, negatively impacting their business.
The solution
BP - LoH, subject to the Nordic Marine Insurance Plan of 2013 (version 2023), is available as an optional addition to normal Loss of Hire cover as well as on a standalone basis. BP-LoH from Norwegian Hull Club covers the assured’s loss of income in accordance with Chapter 16 of the Plan, sub-clause 1 and 2, which is deleted and replaced with the following:
This insurance covers the assured’s loss of income due to the vessel being wholly or partially deprived of income-earning activity as a consequence of works to rectify a Non-Performance Event, including necessary alterations, additions, betterments and/ or improvements of original material, workmanship, design, plan or specification, provided however that it is proven by the Assured and or a third party expert that the work is necessary and reasonable.
A Non-Performance Event is defined as the Battery System’s performance, during the insurance period, falling short by more than 10 per cent the guaranteed performance as described in the vendor specification.
Under this cover, the battery system is defined as:
a. Set of battery packs including racks and cabinets
b. Related Battery Management System (BMS)
c. Related Auxiliary Systems (cooling and protection)
d. Monitoring system (local and remote), as described in the technical specification of the shipbuilding contract of the vessel and the documentation of the Battery System provider.
Non-performance of the Battery System is subject to no physical damage and/or physical loss of any individual part or Insured Component of the Battery System.
It's our Service Concept that sets us apart
When placing insurance with Norwegian Hull Club as Leader, an Assured has access to claims handling experience, service levels and competence of the highest quality. We handle claims and critical situations in the most professional way. We prioritise and make claims settlements much quicker than the industry average, through practical, solution-driven claims handling and involvement from notification to final payment. Norwegian Hull Club encourages teamwork together with the Assured and the broker.
Our world-leading contingency support and operational intelligence services are developed from handling some 2,500 claims every year. We organise a wide variety of loss prevention activities for both ship and shore-based staff, sharing experience from actual incidents, aimed at improving industry best practice.