Shipowners Gathering

Plaza Simas

15TH April, 2009

Safety Issues – Claims - Coverage

Guest Speakers:

Pak Guntur Tampubolon (PT Radita Hutama Internusa)

Pak Alif Hastono (PT Abadi Cemerlang)

Sinarmas Marine Hull Capability

Simas Kapal - for owners of tugs, barges, and crewboats - less than

5,000 GRT

First Choice for Shipowners withvessels less than 5,000 GRT

Simas H&M - for owners of dry cargo vessels, container vessels,

bulkcarriers, tankers and LCTs less than 5,000 GRT

AGREED VALUE – Why?

1. Logistics of assessing the value before and after a loss

2. Fluctuating sales and purchase market

If vessel is a TL – we pay 100% of value

BASIS OF VALUATION

BASIS OF SETTLEMENT

For Partial Losses –

NEW FOR OLD

- with no deduction for wear and tear or

depreciation

BargeBuilt 20103,000 GRT

Value US$1,500,000 @ 1% = US$15,000 premium

BargeBuilt 19903,000 GRT

Value US$500,000 @ 1.75% = US$8,750 premium

Claim for grounding = US$100,000……? We need to charge a rate of 3% on the old vessel to get the same premium as the new vessel……..

THE IMPACT OF NEW FOR OLD

The market practice is to charge 1% of H&M value……….but look at what this means:

TugBuilt 2010300 GRTValue US$1,500,000………deductible 1% = US$15,000

TugBuilt 1990300 GRTValue US$500,000…………deductible 1% = US$5,000

DEDUCTIBLES

COVERAGE OPTIONS

Insuring the Hull & Machinery

• ITC Hulls 1.10.83 – Cls 280 – Full Conditions

• ITC Hulls 1.10.83 – Cls 284 – LimitedConditions(Total Loss, GA, 3/4ths RDC, Salvage, Salvage Charges, Sue & Labour)

• ITC Hulls 1.10.83 – Cls 289 – Total Loss Only

Disbursements/Increased Value (up to 25%)

• ITC Hulls 1.10.83 – Cls 290 – Total Loss and Excess Liabilities(For vessels over US$1m value)

DISBURSEMENTS

DISBURSEMENTS

What does Disbursements/Increased Value pay for?

Additional costs incurred following total loss of vessel:

– Loss of charter money/opportunity– Legal costs re vessel lost / replacement vessel– Staff costs / overtime– Search for new vessel– Travel costs / hotel bills– Survey costs

………….No proof of loss is required, just the agreed

Total Loss of the vessel

EXTRA COVERAGE offered by Sinarmas

• 4/4ths RDC (Collision with vessels) – no additional premium

• Additional Perils Clause – 10% additional

premium

• Collision with Fixed and Floating Objects – no

additional premium

• Removal of Wreck - up to Hull Value – 7.5%

additional premium

• Bunker Pollution -US$250,000 following Total Loss

– 5% additional premium

PREMIUMS

Based on:

• age

• type of vessel

• classification (copy certificate)

• trading areas

• experience of shipowner

• loss record for whole fleet

FLEXIBLE

• Quarterly payment options: Available for fleets (2 + vessels)

• Fleet discounts: (10 vessels = 10%.....40 = 40%)

• Not classed? Tell us why and we will probably offer terms

• Not sure what cover you need? We will explain

• Need a full P&I entry? We will help you source the best cover

• Who is the Insured ? The bank lending money.

• Why do they want the cover?

In the event H & M policy or P + I Club entry

does not respond because of : -

- Breach of Warranty

- Non-disclosure

- Vessel being unseaworthy

- Deliberate damage (scuttling)

MORTGAGEE’S INTEREST

Exclusions:

• Resulting from termination of Hull / P + I coverage due to non-payment of premiums

• Insolvency or financial default of Hull / P + I underwriters

• Inability to transmit funds

• Fluctuation in exchange rates

• Operation of deductible or self -insurance provision

MORTGAGEE’S INTEREST

MORTGAGEE’S INTEREST

Often referred to as the “Innocent Owners” insurance

CLAIMS

Average Adjusters:• Radita Hutama Internusa

• Poseidon (Singapore)

• Marine Claims Office (Singapore)

CLAIMS

Surveyors:• Abadi Cemerlang

• Braemar Falconer

• Matthews Daniel

• Ajiprasasti

• Carsurin

• BMT Marine

Others subject to our approval

QUOTATIONS

We aim to offer quotations for new business

within 1 or 2 working days maximum, subject to

complete information.

Usually, we are much faster than that!

Give us a try!

• H & M : HULL & MACHINERY

• ITC 1.10.83 : INSTITUTE TIME CLAUSES HULLS 1.10.83

• DED : DEDUCTIBLE CLAUSE 12

• AMD : ADDITIONAL MACHINERY DEDUCTIBLE

• PA : PARTICULAR AVERAGE

• GA : GENERAL AVERAGE

• S : SALVAGE

COMMON ABBREVIATIONS

• S/C : SALVAGE CHARGES

• S/L : SUE AND LABOUR

• TL : TOTAL LOSS

• CTL : CONSTRUCTIVE TOTAL LOSS

• ATL : ACTUAL TOTAL LOSS

• DTBA : DATE TO BE ADVISED

• DISBS : DISBURSEMENTS

• TCH : TIME CHARTER HIRE

COMMON ABBREVIATIONS

• LOH : LOSS OF HIRE

• MI : MORTGAGEE’S INTEREST

• P + I : PROTECTION & INDEMNITY

• DWT : DEADWEIGHT TONS

• GRT : GROSS TONS

COMMON ABBREVIATIONS

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