Navigating limits (International Navigating Limits)
Geographical areas, often polar or icebound, where an insured ship may not sail without the insurer's prior agreement and an additional premium, defined in the London market by the International Navigating Limits.
Hull and machinery policies define the area in which the ship may trade at the base rate. Some areas are excluded or subject to conditions because they present particular risks: ice in Arctic, Antarctic and Baltic waters in winter, shallows, northern routes. The London market codified these areas in the International Navigating Limits, which replace the former Institute Warranty Limits and define numbered areas with their seasonal closing dates. To enter them, the owner must obtain the insurer's agreement and pay an additional premium, often subject to a suitable ice class, icebreaker escort or trained crew. Otherwise, cover is suspended or reduced. The melting of Arctic ice makes these limits more topical, since new routes are opening without rescue resources and hydrographic data comparable to those of traditional routes.
In use in the London market since November 1, 2003, the International Navigating Limits require a bulk carrier that wants to use the Northern Sea Route in 2024 to obtain prior agreement from its hull insurers, an additional premium and an ice class, failing which it sails without cover.
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