B-3 Obligations, Watercraft Hull Insurance, Basis Plus

B-3.1 Duty of disclosure B-3.1.1 Completeness and accuracy of information about circumstances material to the risk. Up to the point at which you make your contractual declaration you must disclose to us all risk circumstances known to you about which we have asked in text form and which are material to our decision to conclude the contract with the agreed content. You are also under a duty of disclosure so far as we ask questions within the meaning of the first sentence after your contractual declaration but before acceptance of the contract. Circumstances are material to the risk where they are capable of influencing our decision to conclude the contract at all, or to conclude it with the agreed content. Where the contract is concluded by your representative and that representative knows of the circumstance German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only. material to the risk, you must be treated as though you had known of it yourself or had fraudulently concealed it.

B-3.1.2 Rescission. 1 Incomplete and incorrect information about circumstances material to the risk entitles us to rescind the insurance contract. 2 We have no right of rescission if you prove that neither you nor your representative gave the incorrect or incomplete information intentionally or through gross negligence. Our right of rescission for a grossly negligent breach of the duty of disclosure does not exist if you prove that we would have concluded the contract even had we known the undisclosed circumstances, albeit on different terms. 3 In the event of rescission there is no cover. If we rescind after the occurrence of the insured event, cover may not be refused if you prove that the circumstance disclosed incompletely or incorrectly was causal neither for the occurrence of the insured event nor for establishing or determining the extent of the payment. Even in that case, however, there is no cover if you breached the duty of disclosure fraudulently. We are entitled to the part of the premium corresponding to the contract period elapsed up to the point at which the declaration of rescission takes effect.

B-3.1.3 Change of premium or right of cancellation. If our right of rescission is excluded because the breach of a duty of disclosure was based neither on intent nor on gross negligence, we may cancel the contract giving one month's notice. The right of cancellation is excluded if you prove that we would have concluded the contract even had we known the undisclosed circumstances, albeit on different terms. If we can neither rescind nor cancel because we would have concluded the contract even had we known the undisclosed circumstances, but on different terms, those other terms become part of the contract retrospectively at our request. If you are not responsible for the breach of duty, the other terms become part of the contract from the current insurance period. If the contractual adjustment increases the premium by more than 10 per cent, or if we exclude cover for the undisclosed circumstance, you may cancel the contract without notice within one month of receiving our notification. We must assert the rights available to us under B-3.1.2 and B-3.1.3 in writing within one month. The period begins at the point at which we learn of the breach of the duty of disclosure on which the right asserted is based. We must state the circumstances on which we base our declaration; we may state further circumstances subsequently in support of our declaration if the one month period has not expired for them. We have the rights under B-3.1.2 and B-3.1.3 only if we drew your attention to the consequences of a breach of the duty of disclosure by separate notification in text form. We cannot rely on the rights named in B-3.1.2 and B-3.1.3 if we knew of the undisclosed risk circumstance or of the incorrectness of the disclosure.

B-3.1.3 Avoidance. (The German original numbers this clause B-3.1.3 a second time.) Our right to avoid the contract for fraudulent misrepresentation remains unaffected. In the event of avoidance we are entitled to the part of the premium corresponding to the contract period elapsed up to the point at which the declaration of avoidance takes effect.

B-3.2 Obligations after the occurrence of the insured event After the occurrence of the insured event you have the following duties:

B-3.2.1 To report every insured event to us in writing without delay. Losses through fire, explosion, theft, burglary and vandalism must be reported without delay to the nearest police station and, in a harbour area, additionally to the competent administration.

B-3.2.2 You are obliged to take, on your own initiative, all reasonable measures that come into consideration as suitable for averting and mitigating the insured event. So far as we have given instructions on this, those instructions are to be followed.

B-3.2.3 You are obliged to answer all questions put to you in connection with the insured event correctly and completely, to the best of your knowledge and belief. German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only.

B-3.2.4 Before reinstatement begins you must give us the opportunity to inspect and establish the insured event, and permit us every investigation into the cause and amount of the insured event and into the extent of our obligation to indemnify. You must give us every piece of information in writing on request and produce documents, so far as that can reasonably be expected of us.

B-3.2.5 If you have a claim against a third party for compensation of the insured event, you are obliged to give us all the information and documents necessary to assert the claim.

B-3.2.6 A sale of damaged items is not permitted before the insured event has been acknowledged, without our consent.

B-3.2.7 The installation of a tracking device is likewise part of the pre contractual duty of disclosure. If proof cannot be provided, we are entitled to reduce the payment by 25 per cent of the indemnity.

B-3.2.8 The provisions on your duties apply accordingly to the persons to whom you hand over your boat for use.

B-3.3 Legal consequences of a breach of obligation If in the event of a claim you intentionally breach one of the obligations named in B-3.2, you have no cover. If you breach one of your obligations through gross negligence, we are entitled to reduce the insurance benefit in a proportion corresponding to the severity of your fault. If you prove that you did not breach the duty through gross negligence, cover remains in place. We are released from the obligation to pay, wholly or in part, only if we drew your attention to this legal consequence by separate notification in text form. We are, however, obliged to pay so far as you prove that the breach of obligation was causal neither for the occurrence or establishment of the insured event nor for establishing or determining the extent of our obligation to pay. This does not apply if you breached the obligation fraudulently. These provisions apply irrespective of whether we have exercised our right of cancellation under clause B-2.2.