Details of the risk
- The insured is located in Qatar.
- The vessel is registered in Germany.
- The vessel ordinarily operates in Germany.
- Open market business.
Ship’s Hull and Machinery is a risk relating to a “vehicle” and as such the risk location may be determined by the following factors:
- The country/territory in which the ship is registered,
- The country/territory where the ship is physically located, and
- The country/territory in which the insured is resident or has its establishment most closely associated with the risk.
- Whether or not a factor is relevant will be dependent on the countries/territories identified.
Analysis
Qatar:
Under Qatari law local risk is defined as real estate, properties or assets situated in Qatar. The fact that the insured is resident in Qatar does not determine a regulatory risk location here. In this scenario the risk will not fall within the Qatari regulatory or tax regime.
Germany:
EU insurance law which is applicable in Germany states that “a risk is located in an EU/EEA member state if relates to:
- A building (and its contents if covered under the same policy) situated in that member state.
- A motor vehicle, ship, yacht or aircraft registered in that member state.
- A travel policy for four months or less taken out in that member state.
- For all other types of insurance, it is a risk of that member state if the insured is habitually resident in the member state or for a business or an organisation if the establishment to which the contract relates is situated in that member state."
As the vessel is registered in Germany the risk is located in Germany and subject to the German regulatory and tax regime. The fact that the vessel operates out of Germany is irrelevant to the risk location as this concept is not recognised under EU law.
As there is a single risk location and it is located in Germany, the risk must be written by Lloyd’s Europe using the Lloyd’s Europe stamp.