Optional Insolvency clause

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as a supplement to the Terms and Conditions for Cancellation of Travel Costs Insurance

Many charter operators conclude hire agreements which, according to German law, are not subject to compulsory insurance because the charter company is not considered a tour operator.

Alte Leipziger Versicherung AG undertakes to reimburse the charter fee paid by the charterer where the chartered yacht or a similar vessel are not made available to the charterer due to the initiation of court insolvency proceedings with respect to the charter operator or due to the court's rejection of such proceedings on the grounds of charter operator's insufficient funds.

The charterer must demonstrate that he concluded a regular rental agreement for the yacht and that he paid the relevant charter fee to the charter operator. In the event of damage/loss the charterer must be able to prove that remittance of the charter fee was actually effected to the charter operator.

Where the charterer is furnished with a yacht different from the one booked in advance this does not constitute sufficient grounds for the assertion of justified claims under the insurance agreement.

The policy holder is obliged to immediately inform the insurer of the charter operator's insolvency once the former has become aware of this circumstance.

The total amount of compensation available for all claimants for damage/loss arising from the same cause is limited to a maximum of 1 million Euros. Where the total amount of damage exceeds the above-mentioned maximum the insurer will pay out on a pro-rata basis.

After the occurrence of an insured event, the charterer shall bear 20 per cent of the recoverable damage himself/herself.

With respect to the paying out of compensation, any other existing insurance agreements such as, e.g. the compulsory insurance to be taken out by the tour operator are always prior-ranking to this insurance cover (subsidiary cover).

As is the case with regard to Cancellation of Travel Costs Insurance the full travel price must be insured. If the charterer only insures the sum of EUR 1,000.00 the travel, however, costs EUR 1,050.00, the insurance is null and void. Instances of "underinsurance" entail the loss of insurance cover.

ALTE LEIPZIGER Versicherung AG
Authorised representative: Schomacker Versicherungsmakler GmbH

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