Introduction of VHT and some advise on Machinery claims handling Spiekeroog 15. December 2005 Capt.. P. Zahalka Managing Director
Today s Agenda 1) Brief introduction of Verein Hanseatischer Transportversicherer e.v. the claim handling association employed by your owners Hull & Machinery Underwriters. 2) Some advise for ship commands on the handling of particular average (machinery damage). 3) Damage Prevention
Verein Bremer Seeversicherer e.v. - founded 1818 in Bremen Verein Hamburger Assecuradeure - founded 1797 in Hamburg
Today s status of the Association VBS and VHA merged into VHT in 2000 The Association still maintains two offices, one in Bremen and one in Hamburg Besides the general office staff we employ a total of 7 nautical and technical experts,, all of which are either Master Mariners, Chief Egineers or Naval Architects and 7 Master Mariners for claim handling in the office.
Agents all over the world VHT currently maintains about 270 agents worldwide, These agents act, although independent, on our behalf and are willing and able to provide assistance and can be approached by the master of ships insured in our market at any time.
Instructions to Average Agents
What does VHT stand for? Verein Hanseatischer Transportversicherer e.v or in English: Association of Hanseatic Marine Underwriters How are we organised?
www.vht-online.de ORGANISATION
www.vht-online.de ORGANISATION
What are we doing and for whom? services to our We are providing members and customers! Our members are national and international insurance companies and insurance agents! Our customers are the shipowners!
VHT services Risk analysis and loss prevention as required, Giving advise to insurer and owners regarding steps and preventive measures to be taken in case of damages, Damage surveys to all types of vessels and machinery, construction parts, piers and other harbour constructional fittings, When required by the circumstances of the case: : Immediate dispatch of VHT-experts to the site of the accident, Preparation of independent valuation - certificates, survey and/or expert reports and tenders, Negotiations with shipyards, workshops, manufacturers of machinery and other interested parties,
VHT services (continued) Supervising repairs and respective costs, Nautical and technical preparation and approval of all types of ocean going tows, Early advise and supervision for special transports, Assistance in marine emergencies and salvage cases and negotiations with salvage and towing companies, Recoveries on behalf of clients, Qualified claims adjustment for and on behalf of underwriters, Maintaining the global network of international average agents for underwriters and owners benefit alike,
VHT services - what what can YOU expect??? No miracles but professional advise and assistance!!
How many ships how many claims? Some figures for your information: Deep sea going vsls / P.A. claims incl. TL Number of damages 350 300 250 200 150 100 50 0 Number of vsls or P.A. claims 1.600 1.400 1.200 1.000 Hull- / Machinery damages Deep sea / going Total vessels losses 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005, 1.Q. Polynomisch (Deep sea going vessels) Number of Total losses 20 18 16 14 12 10 8 6 100 4 2 50 0 1996 1997 1998 1999 2000 2001 2002 2003 20042005, 1.Q. 0 Calendaryear Hull damages Machinery damages Total losses Number 250 200 150 Calendaryear Particular avarages / Total losses processed Collision, Grounding, Machinery damage 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005, 1.Q. Calendaryear Ship-ship collision Grounding Machinery damage Collision w. fixed a. float. objects
How many ships / how many claims? 1.382 Vessels insured 659 P.A. claims Deep sea going vsls / P.A. claims incl. TL 1.600 Number of vsls or P.A. claims 1.400 1.200 1.000 800 600 400 200 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005, 1.Q. Calendaryear Deep sea going vessels Particular avarages / Total losses processed Polynomisch (Deep sea going vessels)
Damage to Hull / Machinery / TL 328 Hull damages 192 Machinery damages 1 Total loss Hull- / Machinery damages / Total losses Number of damages 350 300 250 200 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005, 1.Q. 20 18 16 14 12 10 8 6 4 2 0 Number of Total losses Calendaryear Hull damages Machinery damages Total losses
Number of Collisions, Groundings + Machinery Damages 250 Collision, Grounding, Machinery damage 74 Ship-Ship collisions 48 Grounding cases 149 Collisions with fixed + floating objects 192 Machinery damages 200 This information is updated on a quarterly basis 150 on our web-site 100 www.vht-online.de 50 Number 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005, 1.Q. Calendaryear Ship-ship collision Grounding Machinery damage Collision w. fixed a. float. objects
The H & M insurance cover of your vessel (very briefly) The H & M cover of your vessel primarily is a cover for physical damages to the hull and/or machinery caused by an accident (of each and every damage of this category the owners are paying a share which is called the deductible). Further there is cover for collision liabilty (4/4 RDC) included (ship / ship collisions and collisions with fixed and floating objects). There is cover for General Average and Salvage Expenses.
The H & M insurance cover of your vessel (very briefly) An accident is defined as any unintended and unexpected occurrence which acts upon the the insured vessel.
The H & M insurance cover of your vessel (very briefly) Historically the cover for machinery damage was identical to the cover for hull damages,, i.e. cover was provided only when an accident (as defined on the recent slide) ) was the cause of the damage. Today however the cover for machinery damage is extended in the favour of the shipowner
The H & M insurance cover of your vessel (very briefly) First of all and for better understanding you should know what your underwriters understands / accepts to be machinery. Machinery is: 1. Main Propulsion Plant inclusive of Shaft and Propeller 2. Auxiliary Engines,, Pumps, Cooling Plants and Deck-machinery Whereas: 1. Pipes and Fittings 2. Electric Cables 3. Tanks (consumption( and reserve) Do not fall under the definition of machinery machinery
The H & M insurance cover of your vessel (very briefly) The underwriters provide cover for damage to machinery which did occur in consequence of: 1. an insured peril / risk 2. a latent defect caused by a material error or faulty manufacturing 3. a construction error or deficiency 4. breakage of shaft
The H & M insurance cover of your vessel (very briefly) The underwriter will not pay for damages which have been caused by gross neglect of the insured object / fittings over a longer period of time Time is of the essence!!
The H & M insurance cover of your vessel (very briefly) Further: Fair wear and tear, corrosion and corrosion-like phenomena are excluded from the insurance cover.
Example: Damage caused by corrosion- like phenomena Hinge bolt and securing sheet of different materials, Materials far apart from each other on the electro-chemical chain. Material of securing sheet was consumed, Hinge bolt fell through, Rudder flap was lost. Cause of damage: Galvanic corrosion, No Cover.
Machinery Damage and how to deal with it
Machinery Damage 1 Once the situation is under control again: Advise owners of the damage, who in turn will advise Hull + Machinery underwriters (VHT) if necessary (sub to deductible). Prepare a true account of the circumstances of the claim and send it to the owners soonest possible. Take photographs (digital) and send it to the owners soonest possible. Keep samples, evidence of any facts, which you think might be helpful to eventually establish the cause for the damage. Hull + Machinery (VHT) underwriters will either dispatch a staff surveyor from Germany or appoint a local surveyor through its worldwide network of Average Agents.
Machinery Damage 2 Once a Hull + Machinery underwriter s representative arrives - be co-operative operative instruct your engineers accordingly -,, he is not your opponent. His task is to establish the facts and to estimate possible repaircosts in the joint interest of owners and underwriters. The VHT representaive will assist in getting quotations from shipyards and assist in organising repairs.
Machinery Damage 3 AGAIN: The overriding principle for any activity from your side, whether based on your own decisionmaking or whether discussed and agreed with your owners, should always be: Act as costconcious as possible under the circumstances and act as if no insurance would exist for your vessel!!
Machinery Damage 4 AGAIN: Keep in mind: Truthful and comprehensive reporting and documentation will help to process your owners claim as fast and correctly as possible!!
How does a useful Damage Report look like? Damage Report Where? When? What? Why? + Digital Photographs Sketches Please - as soon as possible and The Truth and nothing but the Truth!!
Let s have a break - NOW!! say 15 minutes
Damage Prevention I a m Da p i h s o t ge r a e g t t i f s e x bo i w ed s g n i r a e b r e l l o th r
Damage Prevention II
Touch only in utmost emergency Any dirt in the lube oil is expected to be caught here
CONCLUSION 1. VHT Claims Surveying/Handling Organisation of your Hull & Machinery Underwriters 2. The objective is to find the true cause for the damage 3. The true cause will be a basis for fair and correct handling of the claim 4. The true cause will be the source for preventing future damage 5. VHT is dependent on true and comprehensive reporting by ship-commands commands, owners, agents,, etc. but Preventing damage damage is better than handling claims your owner will appreciate your efforts!!
Good Luck and Thanks for your Attention!
THE END