Expediting Damage Repairs - The 20 per cent rule
In recognition of the fact that a vessel is a freight earning machine and that an uninsured owner would take the vessel’s current earnings into account when considering available repair options, the Nordic Plan establishes a notional daily earning sum for the purposes of evaluating the hull insurer’s liability to cover costs of various options to speed up repairs. The vessel’s notional earnings are calculated as 20 per cent per annum of the vessel’s agreed hull value and the assumed daily earnings are therefore 20 per cent of the hull value, divided by 365. The hull insurer is liable up to this amount for each day saved, e.g. in carrying out temporary repairs, ref. Cl. 12-7, for measures to speed up repairs, ref. Cl. 12-8 and by incurring extra costs by selecting a quicker repair yard. Clause 16-9 co-ordinates the loss of hire insurance with the rule in Clause 12-12.
ITCH do not have any equivalent.