B-1 Inception of cover, payment of the premium, Watercraft Hull Insurance, Basis

B 1.1 Inception of cover Cover begins at the time stated in the policy schedule. This is subject to the provisions on the consequences of late payment or non payment of the first or single premium. B 1.2 Payment of the premium, insurance period German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only. B 1.2.1 Payment of the premium. Depending on what has been agreed, premiums are paid either by ongoing payments monthly, quarterly, half yearly or annually, or as a single premium in advance. B 1.2.2 Insurance period. The insurance period is one year. That also applies where the agreed contract term is longer than one year. Where the agreed contract term is shorter than one year, the insurance period corresponds to the contract term. B 1.3 Due date of the first or single premium, consequences of late payment or non payment B 1.3.1 Due date. The first or single premium is to be paid without delay after the agreed inception date stated in the policy schedule. This applies irrespective of the existence of a right of withdrawal. Where the agreed inception date lies before conclusion of the contract, the first or single premium is to be paid without delay after conclusion of the contract. If you do not pay without delay after the point determined in paragraph 1 or 2, cover begins only once payment has been initiated. Where the policy schedule departs from your application or from agreements made, the first or single premium is payable at the earliest one month after receipt of the policy schedule. B 1.3.2 Our right of rescission in the event of default. If the first or single premium is not paid on time in accordance with B 1.3.1, we may rescind the contract for as long as payment has not been initiated. Rescission is excluded if you are not responsible for the non payment. B 1.3.3 Our release from the obligation to pay. If you do not pay the first or single premium on time in accordance with B 1.3.1, we are not obliged to pay for an insured event occurring before payment of the premium. The condition is that we drew your attention to this legal consequence of non payment by separate notification in text form (for example email, fax or letter) or by a conspicuous notice in the policy schedule. The release from the obligation to pay applies only if you are responsible for the non payment. B 1.4 Subsequent premium B 1.4.1 Due date. A subsequent premium falls due, in accordance with the agreed payment frequency, at the beginning of the month, quarter, half year or year, or at another agreed time. Payment counts as timely if it is initiated by the due date. B 1.4.2 Default and damages. If a subsequent premium is not paid on time, you fall into default without a reminder. This applies only if you are responsible for the late payment. If you are in default with payment of a subsequent premium, we are entitled to demand compensation for the loss caused to us by the default. B 1.4.3 Reminder. If a subsequent premium is not paid on time, we may request payment from you at your cost in text form (for example email, fax or letter) and set a payment deadline (a reminder). The payment deadline must be at least two weeks from receipt of the request for payment. The reminder is effective only if we itemise, per contract, the outstanding amounts of premium, interest and costs, and point out the legal consequences (release from the obligation to pay, and the right to cancel). B 1.4.4 Release from the obligation to pay after a reminder. If an insured event occurs after the payment deadline set in the reminder has expired, and at the time of the insured event you are in default with payment of the premium or of interest or costs, we are released from the obligation to pay. B 1.4.5 Cancellation after a reminder. If you are in default with payment of the amounts owed, we may, after expiry of the payment deadline set in the reminder, cancel the contract with immediate effect without observing a period of notice. The cancellation may be combined with the setting of the payment deadline. On expiry of the deadline the cancellation becomes effective if you are in default with payment at that time. Your attention must be drawn to this expressly when cancelling. B 1.4.6 Payment of the premium after cancellation. The cancellation becomes ineffective if payment is initiated within one month of the cancellation. Where the cancellation was combined with the payment deadline, it becomes ineffective if payment is initiated within one month of the deadline expiring. Our release from the obligation to pay under B 1.4.4 continues until payment is made. German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only. B 1.5 Direct debit procedure B 1.5.1 Your duties. Where the direct debit procedure has been agreed for collecting the premium, you must ensure that the account has sufficient funds at the time the premium falls due. If the premium due could not be collected by us through no fault of yours, payment is still timely if it is made without delay after a request for payment issued by us in text form (for example email, fax or letter). B 1.5.2 Failed direct debit collection. If you are responsible for one or more premiums not being collectable despite repeated attempts at collection, we are entitled to cancel the SEPA direct debit mandate in text form (for example email, fax or letter). In the cancellation we must point out that you are obliged to transmit the outstanding premium and future premiums yourself. Handling fees charged by banks for a failed direct debit collection may be invoiced to you. B 1.6 Premium on early termination of the contract B 1.6.1 General principle. On early termination of the contract we are entitled only to the part of the premium corresponding to the period during which cover existed. B 1.6.2 Premium or handling fee on withdrawal, rescission, avoidance and absence of an insured interest. B 1.6.2.1 If you withdraw your contractual declaration within 14 days, we have to refund only the part of the premiums attributable to the period after receipt of the declaration of withdrawal. The condition is that in the notice of withdrawal we drew your attention to the right of withdrawal, the legal consequences of withdrawal and the amount payable, and that you agreed that cover should begin before the end of the withdrawal period. If the notice of withdrawal under sentence 2 was not given, we must in addition refund the premium paid for the first insurance year. This does not apply if you have made use of benefits under the insurance contract. B 1.6.2.2 If we rescind the insurance contract for breach of a pre contractual duty of disclosure, we are entitled to the premium up to receipt of the declaration of rescission. If the insurance contract is terminated by rescission on our part because the single or first premium was not paid on time, we are entitled to an appropriate handling fee. B 1.6.2.3 If the insurance contract is terminated by avoidance on our part for fraudulent misrepresentation, we are entitled to the premium up to receipt of the declaration of avoidance. B 1.6.2.4 If the insured interest ceases completely and permanently after inception of the insurance, we are entitled to the premium we could have claimed if the insurance had been applied for only up to the point at which we learned of the cessation of the interest. B 1.6.2.5 You are not obliged to pay the premium where the insured interest does not exist at inception of the insurance, or where, in the case of an insurance taken out for a future undertaking or another future interest, the interest does not arise. We may, however, charge an appropriate handling fee. If you insured a non existent interest with the intention of obtaining an unlawful financial advantage, the contract is void. In that case we are entitled to the premium up to the point at which we learned of the circumstances giving rise to the nullity.