PARTICULAR AVERAGE CLAIMS

Similar documents
TOTAL LOSSES. by Dr Nicholas G. Berketis. ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS, MSc in International Shipping, Finance and Management

Rules of Practice of the Association of Average Adjusters of Canada. Revised June 1993 Revised June 2002 RULES OF PRACTICE FOR THE GREAT LAKES

SPECIFICATION E.C.B MARINE CONSEQUENTIAL LOSS INSURANCE (DELAY IN START-UP)

Zurich Insurance. Zurich marine insurance solutions

AMERICAN INSTITUTE OF MARINE UNDERWRITERS FOLLOWING FORM EXCESS MARINE LIABILITIES CLAUSES. To be attached to and form part of policy No.

RULES OF PRACTICE OF THE ASSOCIATION OF AVERAGE ADJUSTERS OF THE UNITED STATES

West of England SERVICE IS OUR STRENGTH. General Average Seminar

General Average. NHC Marine Insurance Workshop

An Introduction to the Underwriting of Yachts & Pleasure Craft

Maritime Knowledge Shipping Session

Hull Insurance according to NMIP Dr. juris Andreas Meidell and Hugo Munthe-Kaas

Constructive Total Losses The Inside Story. Keith Jones Joseph Shead

Insurance conditions and reporting requirements. Surveyors day, 24 th October Sveinung Måkestad and Alf Inge Johannessen

DELAY IN START UP INSURANCE (MARINE)

Contents. chapter 1 Introduction chapter 2 The sources of law chapter 3 The insurance contract... 36

(1) Target: To understand the Claim Settlement Procedures & claim documents

INSTITUTE TIME CLAUSES HULLS This insurance is subject to English law and practice

The Nordic Marine Insurance Plan of 2013

UNITED NATIONS CARGO INSURANCE, CARGO INSURANCE. Restricted Cover

Rule B General average sacrifices and expenses shall be borne by the different contributing interests on the basis hereinafter provided.

ST. VINCENT AND THE GRENADINES MARINE CASUALTY REPORT

Procedure for Suspension and Reinstatement or Withdrawal of Class in Case of Surveys, Conditions of Class or Recommendations Going Overdue

LOH Development last 5 years How to interact with owners maker yard Resourses and communication surveyor - handler

Associate Exam Module A2 (2 ½ hours) Hull and Cargo Claims

No.9, Vanak Ave Tehran, IRAN Tel: ( ) Fax: ( )

Marine THIS INFORMATION IS INTENDED FOR INSURANCE BROKERS AND OTHER INSURANCE PROFESSIONALS ONLY. Global reach, local service.

Understanding Claims Handling Process & its Complexities

INSTITUTE TIME CLAUSES HULLS PORT RISKS 20/7/87. This insurance is subject to English law and practice

Reinsurance arrangements for the 2019 policy year arranged through the International Group of P&I Clubs special P&I war risks cover

INSTITUTE TIME CLAUSES - HULLS (Total Loss Only) (Including Salvage, Salvage Charges, Sue & Labour) 1/11/95

INSTITUTE TIME CLAUSES - HULLS TOTAL LOSS, GENERAL AVERAGE AND 3/4THS COLLISION LIABILITY

The Underwriting of Yachts & Pleasure Crafts. Munich Re / Zaris Seminar, Beirut 18 th October 2005 Laurent Biehly with Capt.

International Hull Clauses At A Glance. Comparing the International Hull Clauses 01/11/02 and the Institute Time Clauses - Hulls 01/10/83

Demystifying general average and collision liability claims. Heather Robinson & Andrew Slade Fellows of the Association of Average Adjusters

Module II (Exam 1) - Risk Analysis and Insurance Planning (RAIP)

INSTITUTE YACHT CLAUSES. This insurance is subject to English law and practice

The Cause of Loss. Dr Nicholas G. Berketis. ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS, MSc in International Shipping, Finance and Management

INSTITUTE TIME CLAUSES - HULLS TOTAL LOSS, GENERAL AVERAGE AND 3/4THS COLLISION LIABILITY

Warranted not to abandon in case of capture, seizure or detention, until after condemnation of the property insured.

INSTITUTE TIME CLAUSES HULLS PORT RISKS

British Marine PROTECTION & INDEMNITY

The Training Material on Risks Management (including International Conventions) has been produced under Project Sustainable Human Resource

American Institute Hull Clauses 7

Risk & Insurance. Alex Rimmer Chief Operating Officer. A Member of the Global Alliance Group of Companies

Circular Ref: 3/13 FEBRUARY 2013

Insurance Operations 2013 Chapter 3: Property and Casualty Insurance on Land, Sea, and Air

Finnish Marine. Conditions 2001 (FHC 2001)

ASSOCIATION OF AVERAGE ADJUSTERS RULES OF PRACTICE INTRODUCTION

Mandatory Club Clauses 2018

FRENCH MARINE HULL INSURANCE POLICY FOR ALL VESSELS

Terms and Conditions for Bulk Shipments by Barge or Vessel

THE CHARTERED INSURANCE INSTITUTE. Read the instructions on page 3 carefully before answering any questions.

negligence of repairers or charterers provided such repairers or charterers are not an Assured hereunder

PERSONAL INJURY AND ILLNESS

Comparative Essay about War Risks and Strikes

FRENCH MARINE HULL INSURANCE POLICY FOR ALL VESSELS

AMENDMENTS TO THE P&I, OFFSHORE, WAR RISKS AND DEFENCE RULES AND DIRECTORS FEES

Hull & Machinery Insurance 2017

Introduction to Marine DSU Delay in Start Up, Advance Loss of Profits are: The unique Marine Consequential Loss covers that address the marine time el

PROTECTION & INDEMNITY INSURANCE QUESTIONNAIRE

AMENDMENTS TO THE P&I, OFFSHORE, DEFENCE, WAR RISKS RULES AND DIRECTORS FEES

Sustainable Human Resource Development in logistics services for ASEAN Member States

Protection & Indemnity Insurance 2010/2011 Part 2 - final

Rapid Response Damage Assessment. 24/7 Casualty Response

Ce document a été fabriqué par PDFmail (Copyright RTE Multimedia)

TO ALL OWNERS AND MEMBERS. 13 November Dear Sirs RULE AMENDMENTS. Rule amendments

Introduction to P&I The background, the rules and the wet stuff. - Part two- Nordisk Institutt for Sjørett Andreas Brachel Gard

The Standard Club An introduction to P&I. Anna Doumeni Senior Claims Executive

WAR AND TERRORISM RISKS: COVER IN RESPECT OF BIOLOGICAL AND BIO-CHEMICAL WEAPONS 2019 POLICY YEAR

British Marine PROTECTION & INDEMNITY

ARAB WAR RISKS INSURANCE SYNDICATE (AWRIS)

INSTITUTE CARGO CLAUSES (A)

PROTECTION & INDEMNITY APPLICATION

MODULE F1 - GENERAL AVERAGE, SALVAGE AND CARRIAGE OF GOODS BY SEA

SYH GENERAL CONDITIONS

Valued and Unvalued Policies

CANADIAN BOARD OF MARINE UNDERWRITERS GREAT LAKES HULL CLAUSES September 1, 1971

Anders W. Færden Attorney-at-law / admitted to the Supreme Court 26 and 27 February 2015

Legal Business. Risk Management. Memoranda on legal and business issues and concerns for multiple industry and business communities

INSURANCE LAW CHAPTER ONE NATURE OF CONTRACT OF INSURANCE

HAZARDOUS WASTE AGREEMENT

Date: 10 July Contribution less wakalah fee will be credited to the GTF as Tabarru' (a.k.a. cost of insurance in conventional insurance).

South China Insurance Ship Operator Excess Chassis Liability Clause. Applying to EXCESS PROTECTION AND INDEMNITY

Alwen Hough Johnson Marine Products Directory

P&I CLAIMS MANAGEMENT. Edgar Chin Kelvin Chia Partnership

Insurance Terms No. 72

Conditions of Use for LNG CARRIERS

Consequences of the new CLNI convention on insurance. Nick Williams Manager/Syndicate Claims Director IVR Colloquium Bratislava 7-8 February 2013

American Institute Great Lakes Hull Clauses 47V-14 (MARCH 9, 1978)

INSTITUTE CARGO CLAUSES (B)

(FOR USE ONLY WITH THE NEW MARINE POLICY FORM) INSTITUTE CLAUSES FOR BUILDERS RISKS SPECIMEN. This insurance is subject to English law and practice

REPUBLIC OF THE MARSHALL ISLANDS

Who Is An Insured 2. Coverage 2. Extension Of Coverage 2. Exclusions 3. Duration Of Insurance 4. Limits Of Insurance 5. Loss Payment Basis 5

Protection & Indemnity Insurance 2018/2019 Part 2

Introduction to P&I. The background, the rules and the wet stuff. -Part one- Nordisk Institutt for Sjørett Andreas Brachel Gard

Technical Information

MARINE HULL TAKAFUL CONTRACT

Protection & Indemnity Insurance 2017/2018

This e bulletin seeks to clarify some of the most frequent questions that are posed to the Club on this rather hot topic.

FUNDAMENTAL PRINCIPLES OF INSURANCE

Transcription:

PARTICULAR AVERAGE CLAIMS by Dr Nicholas G. Berketis

Section 64(1) of the Marine Insurance Act 1906 "Particular Average loss is a partial loss of the subject matter insured caused by a peril insured against, and which is not a General Average loss".

Principal Features A partial loss of the vessel insured. Caused by a peril insured against. Not a General Average loss.

Principal Features (cont d) The M.I.A. tells us, at section 56(1) that any loss other than a total loss is a partial loss. So, a partial loss is effectively any loss which does not totally destroy the vessel or place her beyond recovery. It should be noted that even though the cost of repairing the vessel may exceed her insured value, the assured may elect to repair and claim up to 100% (less deductible) under his hull and machinery policy, and this would constitute a partial loss. It is sufficient to say here that the loss must be fortuitous or accidental to fall within the risks covered by the policy. A General Average loss has one feature that distinguishes it above all others from a Particular Average loss. That is the voluntary nature of the General Average act that has brought about the loss. This should be contrasted with the accidental character of a Particular Average loss. This is an important distinction.

EXAMPLES Heavy weather damage to the ship is a Particular Average loss. Damage caused by striking a floating object is a Particular Average loss. Damage caused by stranding is an accident, it is therefore a Particular Average loss, though damage caused by efforts to refloat is voluntary, and it is therefore a General Average loss. Similarly, fire damage is a Particular Average loss (accidental) but damage caused by efforts to extinguish the fire (voluntary) is a General Average loss. Machinery damage caused by negligence of the crew or of the repairers is a Particular Average loss. Damage received in a collision is a Particular Average loss.

Measure of Indemnity Where a vessel is repaired the measure of indemnity for a claim of Particular Average is defined by section 69(1) of the Marine Insurance Act as follows: "The assured is entitled to the reasonable cost of repairs, less the customary deductions, but not exceeding the sum insured in respect any one casualty".

Measure of Indemnity (cont d) Underwriters exercise a measure of control over the level over repair costs through the application of the Tender Clause the main features of which are as follows: Prompt notice to underwriters in the event of a casualty likely to give rise to a claim. Underwriters entitled to decide on the port of repair and have the right of veto in this respect. Underwriters may take tenders or ask for further tenders to be taken; provision for allowance of 30% p.a. on insured value for the period of time lost as a result. Provision for 15% deduction from the ascertained claim in the event of failure to comply.

Temporary Repairs Temporary repairs are a provisional reinstatement of the vessel and have no lasting value. Hence temporary repairs are not automatically part of cost of repairs and consideration must be given to the benefits achieved. Assuming that General Average is not involved temporary repairs will only be recoverable as part of the reasonable cost of repairs where: There is no alternative (i.e. permanent repairs cannot be effected). There is a saving to the overall costs of repairs.

Temporary Repairs (Example) On arriving at Jacksonville, Florida to discharge cargo a vessel struck the cargo berth and sustained damage to her side shell plating. With the approval of the Classification Society surveyor the shipowners undertook minimal temporary repairs it being agreed with the surveyor that permanent repairs could be deferred until the following year when permanent repairs would be carried out at a routine drydocking. This duly took place in China.

Temporary Repairs (Example) Permanent repairs had they been effected at Jacksonville would have cost US$ 150,000 Add incidental costs and superintendency 30,000 TOTAL US$ 180,000 Temporary repairs necessary for continued trading US$ 40,000 Permanent repairs in China 75,000 Add incidental costs and superintendency 15,000 TOTAL US$ 130,000