Insurers May Deposit Insurance Payments Under The Nordic Plan

In the first arbitration award known to have been rendered under the new procedural rules of the Nordic Offshore and Maritime Arbitration Association (NOMA), the tribunal clarified that the insurers' right under Norwegian insurance law to deposit insurance payments with liberating effect, also applies to co-insurance pursuant to the Nordic Marine Insurance Plan (Nordic Plan).

Wikborg Rein successfully defended insurers against a co-insured bareboat charterer's claim for direct payment.

The award assessed the applicability of the Norwegian Insurance Contracts Act of 1989 (NICA), and also examined the co-insureds' rights pursuant to:

• Barecon 2001, as amended
• Loss Payable Clauses, as agreed, and