Case Study: Do all policies work in the same way?

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SOS

What does this bring?

1. Collision2. Crew claim3. General average4. Salvage5. Particular average6. Cargo liability7. Loss of hire

Assumptions

1. “Бравый” sum insured: EUR 1’000’0002. Cargo value: EUR 1’000’0003. Daily T/C hire: EUR 1’500

4. Crew claim: US$ 80’0005. Salvage award: 15% of TV6. Damage to cargo: EUR 150’0007. Particular average: EUR 750’0008. Off hire period: 90 days

Crew Claim

• Crew cover limited to US$20,000 under P&I policy• Duty to settle under ITF agreement – up to US$ 80,000 • Loss of $60,000

Possible Scenario

Good Practice

• Proper P&I cover - full recovery, including medical care and repatriation

Salvage

• Страховщик не возмещает суммы, превышающие по величине 10% от страховой суммы, затраченные Страхователем на спасание застрахованного судна (clause 4.10 of certain rules)

• No S&P rating – Salvage guarantee not accepted• Salvage award 15% • Loss of 5%, i.e. EUR 50,000

Possible Scenario

Good Practice

• “For purposes of all contributions to General Average and/or Salvage and/or Sue and labor, all vessels deemed to be fully insured for their actual sound market value at all times” (Standard ILU additional wording)

Cargo liability

• No S&P rating – LOU not accepted, bank guarantee not provided

• Direct settlement or bank guarantee by shipowner requested.

Possible Scenario

Good Practice

• Proper P&I cover – LOU accepted and claim settled following defence regarding liability

Particular average

• А соответствует ли страховая сумма страховой стоимости?

• Claim settled with depreciation (0,75)• Loss of EUR 187,500

Possible Scenario

Good Practice

• Temporary repairs settled with payment on account• Towage arranged to convenient yard• Full recovery

In general

Good Practice

Спасибо за внимание!