Clause 7: Pollution hazard

This insurance covers loss of or damage to the vessel caused by any governmental authority acting under the powers vested in it to prevent or mitigate a pollution hazard, or threat thereof, resulting directly from damage to the vessel for which the Underwriters are liable under this insurance, provided such act of governmental authority has not resulted from want of due diligence by the Assured, the Owners, or Managers of the vessel or any of them to prevent or mitigate such hazard or threat. Master, Officers, Crew or Pilots not to be considered Owners within the meaning of this Clause 7 should they hold shares in the vessel.

Comments to ITCH

The insurance covers damage to the vessel caused by any governmental authority in order to prevent or mitigate a pollution hazard, or threat thereof, resulting directly from damage to the vessel for which the Underwriters are liable.

NMIP Comparison

Under the Nordic Plan Cl. 2.8 measures taken by a State power for the purpose of averting or limiting damage shall not be regarded as an intervention, provided that the risk of such damage is caused by a peril covered by the insurance against marine perils.

The cover under the Plan Cl. 2.8 (b) is broader than ITCH Cl. 7 as it covers state actions taken to prevent any type of damage not just pollution or damage to the environment. Under the Plan it is not necessary that there is any actual damage to the vessel, only that the damage the state power is trying to prevent arises from a peril insured against under the H&M policy.