chios marine club marine club insurance seminar 2017... · •london 2015 chios marine club....

Chios Marine Club

Chios Marine Club

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Welcome to The Swedish Club

Chios Marine Club

It all started in 1872

1872 ‐ Established in Göteborg as a Hull Mutual

1910 ‐ P&I introduced

1971 ‐ International with the first non‐Swedish entry of the “Flowergate”

1984 ‐ FD&D introduced

2011 ‐ Energy introduced

Offices in:

• Gothenburg HQ 1872

• Piraeus 1980

• Hong Kong 1982

• Tokyo 1991

• Oslo 2010

• London 2015

Chios Marine Club

Protectionand Indemnity

Freight Demurrageand Defence

Kidnap and Ransom

Hull and Machinery

War Risks

Loss of Hire and Delay Cover

Energy and Offshore

Increased ValueInsurance and Freight Interest Insurance

Chios Marine Club

The Insurance Perspective of Marine Disasters

1st November 2017

Stelios MagkanarisFellow of The Association of Average Adjusters

“to interpret the policy conditions, based on establishedMarine Insurance Law principles, apply the facts of the casualty, and deduce the fair liability of each party in the average”

Role of the adjuster

Insurance contract

Chios Marine Club

Marine Insurance “Engineering”

P&I

FR

WAR

H&M

IV

FD&DLoss of property

Liability for loss of life / injuriesLoss of cargoLoss of freight

Loss of hire

Liability to other vessels

Liability to any other property

Charterers liability

Liability to cargo

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Chios Marine Club

Interpretation : the Matrix of Marine Insurance law

Conditions (ITC/83)

Implied Warranties

Common Law

Chios Marine Club

Adjusting practice / engineering

$$$$$$$$$$$$$$$$$Measure of Indemnity$$$$$$$$$$$$$$$$$

What happened ?

When it happened ?

Why it happened ?

LOSS

TIMING

PERIL

Insurer liable ?

YES NO

Chios Marine Club

Why it happened ? ‐ Causation


Peril struck the property

Is it an insured peril?

Insurance Conditions• ITC/83, ITC/95, IHC, • Nordic MIP 2013• AIHC/77• DTV

Chios Marine Club


• When the peril struck?• When the damage occurred ?• Was the damage progressive ?

31.12.2015 31.12.2016

Peril struck

… progressive damage …

Damage discovered

Which policy pays ? ….. if any …

When it happened ? ‐ Timing

Chios Marine Club


Typical classification of H&M Losses & Liabilities

• Total Loss / CTL• Particular Average• Sue and Labour

• General Average• Salvage• Collision Liability• Fixed & Floating Objects

What happened ? ‐ Loss / Liability

Chios Marine Club

Vessel GL at Onne river, Nigeria, discharging Gas Oil at the local refineryExplosion at subsequent fire

Case ‐ 1 : Fire in Nigeria

Chios Marine Club

Looters attempt to steal cargo from C/T No.5 – fire expands tpo C/T No.5


Fire all across all the vessel


Chios Marine Club

Fire burned out – looting by armed gangs


Chios Marine Club

Looting guarded by local warlords


Chios Marine Club

As if this was not enough … fire erupts in the accommodation


Chios Marine Club

• Explosion at the forecastle and fire in No. 1 C/T• Looters extend the fire to No. 5 C/T• Fire rages all across the deck• Fire self extinguished and vessel is captured by looters• Local armed warlords onboard, different every day• Vessel drifting in the river• Looters cause fire in the accommodation

Case – 1 : Fire in Nigeria

• Who caused what damage ?

• Is the vessel a CTL ?

• Which policy pays?

Chios Marine Club

Case – 2 : Collision

Container Vessel (CV)


Chios Marine Club

Flag : LiberiaManagers/Own. : TaiwanType : Container VesselDWT : 22,955 mtsGRT 16,750Built : 1994Voyage (round) : (Australian Port) – Jakarta – Singapore – Hong Kong ‐

Quingdao – (Australian Port)Cargo : Loaded TEUs 855

Empty TEUs 170Loaded FEUs 680Empty FEUs 220Total 1,925 units

Vessel : CV


Bulk Carrier (BC)

Voyage : Shanghai – Gladstone – HobartCargo (2 B/L) : Loaded with 55,000mts of fertilizers delivery at :

Gladstone 35,000mts – freight prepaid

Hobart 20,000mts – freight outstanding55,000mts


Chios Marine Club

Vessel : ΒC


Bulk Carrier (BC)


Collision off Gladstone


CV damages


Regional strength - CRITICAL

BC damages

… Breaking News …

/ship loaded with highly toxic cargo / / bunkers leaking into the Great Barrier Reef /

/vessel is breaking in two and sinking // suspicions of alcohol abuse on board under investigation /

All content simulated by Triton media simulator

Discharging at sea into barges photo

Salvage under contract

Salvage contract signed

LOF with SCOPIC invoked• Barges for the removal of bunkers• Deployment of booms and clean up vessels• Floating crane for the removal of hatch covers• Barges for the removal of the cargo from No. 5 cargo hold

Emergency discharge of cargo at sea

Chios Marine Club

• Who places the SCOPIC security ?


• Is the cargo entitled for any counter security ?

• Who places the salvage security for the ship ?

• Who places the salvage security for the cargo ?

• Who provides general average securities ?

Chios Marine Club

Discharging at Gladstone


Cargo for Gladstone is discharged

Who pays for the cost of discharge ?

Cargo for Hobart is discharged

Who pays for the cost of discharge ?

Who pays for the cost of storage ?

Who pays for the cost of reloading to the forwarding vessel ?Who pays for the cost of the freight ?

Chios Marine Club


Hobart cargo

Emergency dischargeStorageReloadingForwarding Insured losses ?

Are these general average losses ?

Is the owner entitled to abandon the voyage ?

Chios Marine Club

Completion of discharge – removal for repairs

Permanent repairs


Temporary repairs to the vessel removal for permanent repairs

in China.

Who pays for the temporary repairs ?

Who pays for the removal voyage to China ?

Chios Marine Club

Who pays for the permanent repairs ?

Is anyone paying for the hire lost ?

With you at all times

The Swedish Club

Thank you

chios marine club marine club insurance seminar 2017... · •london 2015 chios marine club....

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