As a result of the complexities of mutual rights and obligations of the parties to the bareboat charter contract, a very complex issue of insurance arises. Hull and machinery insurance, protection and indemnity insurance and insurance of other interests are intertwined and therefore there is a very real possibility that some interests might be missed and left uninsured. Therefore, it is necessary to establish with certainty who is obliged to take out hull and machinery insurance, who is obliged to take out protection and indemnity insurance – both contractual and non-contractual – as well as all other aspects of insurance specific for this type of vessel exploitation.
The aim of this paper is to identify the characteristics of bareboat chartered vessel insurance in accordance with its standardisation in the provisions of the standard bareboat charter, code name BARECON 2001. The same standard contractual form is most often used in the practice of bareboat charter contracting and it is, therefore, deemed necessary to establish whether or not the provisions of standard charter provide broad enough bareboat charter vessel insurance. By analysing and interpreting the insurance provisions of the standard charter the authors make a conclusion as to whether or not the specified provisions meet the interests of the parties to the bareboat charter.
