| The International Hull Clauses 2002 (IHC 02) has been published by the Joint Hull Committee (JHC) on 1st November 2002. The aim of the IHC 02 is to improve clarity and reduce uncertainty both for shipowners and underwriters by updating wording with current market. In this article I make the differences between the IHC 02 and ITC83/95, also analyze the new clauses comparing with ITC 83/95, Maritime Code of PRC, Hull Insurance Clauses of PICC(1986), American Institute Hull Clauses1977, Norwegian Marine Insurance Plan1999 and Australian Law Reform Committee Report.This article includes 3 chapters. I introduced the history of marine insurance and take a general overview on IHC 02 in chapter 1. Firstly I reviewed the origin and development of England marine insurance and the developing course of hull clauses from Inchmaree clause to ITC 83/95 and IHC 02.Then I deal with the background and layout changes in IHC 02.Chapter 2 is the main body in this article. This chapter contains 3 parts according to the construction of IHC 02,which is composed of 3 parts. Part 1 contains principal insurance condition. There are many clauses that have been revised in this part, such as Perils, Navigation Provisions, Breach of Navigation Provisions, General Average and Salvage, Deductlbles, Constructive Total Loss, Returns for lay-up, etc. Also many clauses have been added in IHC 02, for example, Leased Equipment, Parts Taken Off, Classification and ISM, Management, Separate Insurance and Affiliated Company, etc. This article compares IHC 02 with ITC 83/95, also with Maritime Code of PRC and Hull Clauses of PICC to find out the differences between them, also makes comment on the new clause added in IHC 02. Part 2 deals with additional clauses that have been used widely for many years. The part that comprises clauses 34-44 is opening to add new clauses or improve wording when needed. Clauses 34-39 will apply to the insurance contract automatically. However, clauses 40-44 shall only apply where the underwriters have expressly agreed in writing. They are 4/4 Collision Liability, Fixed and Floating Object, Returns for Lay-up, General Average Absorption and Additional Peril. Part 3 is claims provisions for claim handling and the duties of the assured and underwriters. It's helpful for assured to learn about the procedure of claims handling. The underwriters showed goodwill by making a decision in respect of claim within 28 days. However, it's necessary for assured to learn and perform the new duties under this part. For example, the assured will not be indemnified at any stage whether legal proceedings be commenced or not if they mislead or attempt to mislead the underwriters in consideration of claims handling or conceal anything which might be material to defend a claim. Also there are many other clauses that be worth analyzing.Chapter 3 is the summary of this article. Many clauses have been revisedand added in IHC 02. The intention to publish this new edition of hull clauses is not to deny the previous one completely but to update wording with current market and make the IHC 02 apply easier. The IHC 02 reflects the developing trend of marine insurance. The rights and interests of the assured have been considered fully. The strict legal effect of breaching the warranties has been modified. The assured has been recognized as co-insurer in writing. But the assured also should learn that they have to strictly perform all kinds of duties under the ISM rules. Any breach of such duties might bring disastrous effect. Besides the assured have to perform all kinds of duties all the time according to the utmost good faith principle and should not mislead or attempt to mislead the underwriters or conceal any material things when claiming at any time whether legal proceedings be commenced or not. |
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