Requirements for lay-up of entered

Requirements for Lay-up of entered Vessels

Skuld will reduce or return premium for vessels properly laid-up if they meet the criteria set out in the Rules.

Vessels properly laid-up constitute a lower risk and may therefore be entitled to a lay-up return. Skuld Rule 4.7 regulates lay-up of vessels entered for P&I. In general, Skuld will only grant lay-up return for mutual P&I entries.  No return will be provided for smaller vessels  (less than 200 GT) or vessels of certain types where this is already considered in the assessment of the risk.

CONSIDERATIONS
The lay-up return, or the lay-up premium, will depend on the following:

?    Duration of lay-up: Minimum 30 consecutive days
?    Arrangements: A lay-up Declaration issued by a class society or other organisation approved by Skuld is required
?    Site: The site has to be pre-approved by Skuld
?    Safety issues: Watchmen, bilge and fire alarms. Local services in case of emergency
?    Cold or warm lay-up: A warm lay-up will probably require more personnel on board which increases the exposure and may not warrant a lay-up return. A Cold lay-up will require a lay-up declaration.
?    The vessel to maintain class during lay-up
Skuld will individually assess each situation and decide on the terms.

RISKS
The reduced risk under the P&I cover is mainly that a number of risk elements are limited. Therefore the main principles are:
?    No cargo
?    No fuel on board ? but for safety requirements, or as per agreement
?    No crew on board ? but for required security and maintenance
?    The vessel to remain in class and follow class recommendations as well as to adhere to rules and regulations applicable at the lay-up site

PREMIUM AND SURVEYS
The minimum lay-up period to be entitled to a return of premium is as per the rules 30 days. A claim for return premium has to be made latest three months after the lay-up period has ended or three months after the Policy year has ended.

A vessel permanently laid-up may at inception of the policy year be insured on lay-up conditions. The terms will be subject to that the vessel is laid-up and that the risk is not changing under the period.

Kindly observe that there are no returns or reductions for overspill calls (Rule 4.7.1)

For all lay-up periods exceeding six months, Skuld shall have the possibility to survey the ship prior to re-enter into trade. Therefore the member has an obligation to inform Skuld preferably 30 days prior to the scheduled re-commissioning of the vessel or latest when the decision of re-commissioning is taken.

Skuld will assess each risk individually and Members are advised to contact their underwriter for assessment and calculation of lay-up return or a lay-up premium.

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