1 anatomy of ship, management of claims & underwriting

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ANATOMY OF SHIP, MANAGEMENT OF CLAIMS & UNDERWRITING

http://www.latinamericanstudies.org/panama-canal.htm

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AFTER GOOD BREAKFAST OR LUNCH YOU ARE AT LIBERTY TO SLEEP BUT DO NOT SNORE YOU MAY DISTURB YOUR NEIGHBOUR WHO IS ALSO SLEEPING AND YOU WILL ALSO DISTURB ME AS I AM IN HABIT OF SLEEPING DURING LONG PAUSE I TAKE DURING LECTURE LIKE OUR P.M

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TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

HOLDS

ENGINE ROOM DOUBLE BOTTOM TANKS

COFFERDAM

MAIN DECK

FOREPEAK TANK

BULKHEADS

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SUPERSTRUCTURE HATCHCOVERS CRANES

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FORE PEAK

RUDDER PROPELLER GEARBOX MAIN ENGINE

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TYPES OF SHIP

FISHING VESSEL

CABLE SHIP

RESEARCH SHIP

SHIPS WHICH KEEP THE SEA LANE OPEN

DREDGERS SURVEY SHIP

ICE BREKERS TUGS

SHIPS WHICH CAN CARRY THINGS

PASSENGER

LONG DISTANCE

SHORT DISTANCE(Ferries)

HOVER CRAFTS

HYDROFOILS

GENERAL CARGO

UNIT LOAD

CONTAINER

BARGE CARRYING SHIP

RO-RO

BREAK BULKTANKER DRY TIMBER SPECIALIST

COMBINATION

0/ 0

OBO

OCO

CHEMICAL

BEER

WINE

CRUDE CARRIERSREFINED PRODUCT CARRIERS

LNG/ LPGINER GAS CARRIER

- Around 1900 passenger shipping was expanding / big vessels with many facilities- After 1960s due to airlines passenger ships declined.- Cruise ship arose due to demand of Holidays at sea. Ferries carry passengers,cars,coaches trucks on short haul routes around the coastlines.- Hovercraft has the mechanism which lift themselves above the water surface thus avoiding resistance of sea passage,it moves fast and gives smoother ride. ‘Hover’ means to remain poised over one spot but the craft operates by having air forced down beneath the craft.This causes it to rise up above the surface of the water and support it upon a cushion of air /fastest thing at sea.ACV- Air cushion vehicle recent term for hovercraft. - Hydrofoils work like the wings of an aircraft.

Cargo Ships :-Liner - operates on fixed schedule.

Tramp - unless chartered by liner company,dose not operate on fixed schedule

Bulk carrier - range from small coastal craft to ships over 150000 tonner dead weight capacity.Different types of Bulk carriers

Panamax - carry maximum cargo whilst transiting Panama canal

Cape Size - Large gearless,when fully loaded unable to transit through Suez canal or Panama they via cape of Good Hope.

General cargo ship- Twindeckers, having compartments and tanks depending upon type of cargo. Refrigerated Ship – 1.with Insulators /refrigerating storage capacity for perishable cargoes like meat,fish,poultry,eggs,vegetables,fruits, dairy products.2.also known as Reefer ships. Container Ship - ISO (International Standard Organisation)compliance

RO/RO ship - Roll on/Role off ships for short routes with self sustaining ability to load and discharge cargo itself

Tankers - Carry liquid cargo

Different types - Parcel Tanker,Acid carriers,Handy size Tankers, Panamax C, Medium size - very large(VLCC),ultra large(ULCC) -Crude carriers.Combination carriers - O/O - Ore & oil

O/B/O - Ore, Bulk or Oil PROBO - OBO with ability to carry Petroleum Product such as gas oil

Gas Carriers -

1. LPG – Propane Butane propylene butylene unhydrous Ammonia.2. LNG - Industrial / Domestic Flicks 3. TANKER

FISHING VESSELSDeep Sea Fishing TrawlersFish Factory Vessel - Fish catch is cleaned,Vessel & canned in the factory ship.Whale ship. Ships to catch whales.Cable ships - Laying off cable for communication (first cable ship -Great Easter in 1858)Dredgers - Bucket Dredgers - for digging material

Grab Dredgers - employ Grab Crane to remove mud Dipper Dredgers Suction Dredgers- sand,soft/loose material removal. Rock Breaker Dregers

Used for - 1) To develop and maintain greater water depth than naturally exists.2) To raise the level of low land 3) To construct dams & dykes (wall to prevent flooding)4) To recover subaqueous deposits.

Tugs - Oceangoing and salvage coastal Harbour & Rivercoastal

BASICALLY TWO TYPES OF COVERS ARE AVAILABLE

- TIME

- VOYAGE

HULL INSURANCE IN THE INDIAN MARKET

- HULL INSURANCE DEALS WITH RISKS RELATING TO SMALLER OR BIGGER VESSELS.- VARIOUS TYPES OF COVERS AVAILABLE FOR PROTECTION OF SHIP OWNERS ARE AS UNDER :A. HULL & MACHINERY INSURANCEB. FREIGHT INSURANCEC. DISBURSEMENT & INCREASED VALUE INSURANCED. PREMIUM REDUCING INSURANCEE. PROTECTION & INDEMNITY LIABILITY INSURANCE IN RESPECT OF COASTAL VESSELSF. SHIP REPAIRES’ LIABILITYG. TIME CHARTERER’S LIABILITYH. BUILDER’S RISKS INSURANCEI. LAST VOYAGE/FUNERAL VOYAGEJ. SHIP BREAKING INSURANCEK. WAR RISK INSURANCEL. S.R.C.C. INSURANCEM. LOADING DISCHARGING OPERATION AT SEA.N. BRACHES OF WARRANTIESO.SINGLE VOYAGESINSURERS ARE PROVIDED WITH GUIDELINE RATES.

RATES WERE PROVIDED IN THE SPECIFIC Guidlines

INLAND VESSELS

SAILING VESSELS

FISHING VESSELS

CHARTERERS’ LIABILITY

SHIP REPAIRERS’ LIABILITIES

BUILDER’S RISK INSURANCE

HULL UNDERWRITING CONSIDERATIONS

SHIP DESCRIPTION

TRADING PATTERN

CARGO CARRIED

SIZE OF SHIP

TRADING AREA

SIZE OF FLEET

PAST EXPERIENCE OF MANAGEMENT

CONDITIONS OF INSURANCE

AGE AND INSURED VALUE DEDUCTIBLE

CLASS AND FLAG

ISM CODE

ANY OTHER INFORMATION MATERIAL TO THE RISK

BUILDERS’ CERTIFICATECERTIFYING THE VALUATION& SUCCESSFUL TRIAL TRIP

SEAWORTHINESS

AGREEMENTS SUCH AS BBC etc.If any

GENERAL CONDITION CUM VALUATION CERTIFICATE BY COMPETENT MARINE HULL SURVEYOR DULY CATEGORISED BY IRDA AS ‘A’

RATING FACTORS

TYPE OF VESSEL

TANKER,DRY CARGO,PASSENGER

BULK CARRIER,TUGS

VALUE

HIGHER THE VALUE - LOWER THE RATE

LOWER THE VALUE - HIGHER THE RATE

LOWER THE AGE - LOWER THE RATE

HIGHER THE AGE - HIGHER THE RATE

AGE

RATING FACTORS

GROSS REGISTERED TONNAGE

DEAD WEIGHT TONNAGE

TRADING LIMITS

CLASSIFICATION

MANAGEMENT EXPERIENCE

CONDITIONS OF COVER

TONNAGE

• DISPLACEMENT :- This is the actual weight of the vessel measured by the weight in tones of water she displaces when loaded with the fuel,water,stores and with crew on board.

• Gross Tonnage :- Measure of the total internal volume of the ship,with certain exception such as radio room,wheel house, chartroom etc.

• Net Register Tonnage :- This represents the earning capacity of a merchant/passenger ship. It is a measure in tones of cubic capacity of the space which can be used for carrying passengers and cargo

• Dead weight :- Total carrying capacity of the vessel including cargo, crew machine,passenger, stores,fuel, water when loaded down to the waterline level.

• Water is 800 times as dense as air. It is buoyant fluid substance of water that supports the weight of a ship while allowing it to move.

CLASUES- HULL POLICIES ARE SUBJECT TO STANDARD

CLAUSES PUBLISHED BY INSTITUTE OF LONDON UNDER-WRITERS

- THERE CLAUSESARE DRAFTED BY LONDAN MARKET TECHNICAL & CLAUSES COMMITTEE.

- ACCEPTED WORLD-WIDE PROVIDES TERMS,CONDITIONS, EXCLUSIONS, PERILS COVERED UNDER THE POLICY.

STANDARD CLAUSES

1) INSTITUTE TIME CLAUSES HULLS DT. 1-10-83.

- ALL OCEANGOING VESSELS ARE SUBJECT TO THIS CLAUSES.

- PROVIDES COVER FOR 3/4TH COLLISION LIABILITY.

- LAY-UP RETURN PROVISION- REVISED 1-11-95 (NOT ACCEPTED.ALL OVER)

2) INSTITUTE TIME CLAUSES HULL PORT RISK DT. 20-7-87.

- ALL INLAND VESSELS COVER ARE SUBJECTTO THIS CLAUSE.

- PROVIDES COVER FOR 4/4TH COLLISION LIABILITY AND P & I RISK’S

- NO LAY UP RETURN PROVISIONS

3) INSTITUTE TIME CLAUSE - HULLS TOTAL LOSS - ONLY DT. 1.10.83 (INCLUDING SALVAGE,SALVAGE CHARGES AND SUE & LABOUR) APPLICABLE FOR TOTAL LOSS /RESTRICTED COVER.

4) INSTITUTE VOYAGE CLAUSE - HULL DT.1.10.83 - SINGLE VOYAGES5) INSTITUTE VOYAGE CLAUSE - HULLS TLO DT.1.10.836) INSTITUTE TIME CLAUSES - DISBURSEMENT & IV (INCLUDING GA,SALVAGE ,SC, S & L, 3/4TH COLLISION LIABILITY)7) INSTITUTE TIME CLAUSES - FREIGHT DT.1.10.838) INSTITUTE YACHT CLAUSES DT.1.11.85 SPEED BOATS, YACHTS ARE COVERED CRO

SPEED WARRANTY- NOT TO EXCEED 17 KNOTS

EXCLUDES USE FOR RACING,SPORT PURPOSE.

9) INSTITUTE CLAUSES FOR BUILDER’S RISK DT.1.6.88

- VESSELS UNDER CONSTRUCTION

- FAULTY DESIGN CLAUSE

- COLLISION LIABILITY

10) SHIP REPAIRERS’ LIABILITY CLAUSE

11) CLASSIFICATION AND MAINTAINANCE OF CLASS CLAUSE

- SPECIFIES 10 CLASSIFICATION SOCIETIES - COMPULSORY FOR ALL OCEANGOING VESSELS

12) HULL CLASSIFICATION CLAUSE APPLICABLE FOR OCEANGOING VESSELS ABOVE 15 YRS. OF AGE.

13) INSTITUTE RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE 1.10.90 - EXCLUDES ANY DAMAGE DUE TO RADIOACTIVE IONISATION NUCLEAR/ATOMIC WEAPONS/EXPLOSIVE ETC.

14) ISM CODE WORDINGS - INTERNATIONAL SAFETY MANAGEMENT CODE GIVES THE RULES & REGULATIONS TO BE OBSERVED BY SHIPOWNER AT SEA FOR SAFTY/SAFE ADVENTURE

15) STRIKE,RIOT AND CIVIL COMMOTION CLAUSE HULLS - INLAND VESSEL & VESSELS PLYING IN INDIAN WATER

16) INSTITUTE WAR & STRIKES CLAUSE HULLS TIME DT.1.10.83

17) WAR CLAUSES UNDER GOVERNMENT WAR RISK SCHEME - PROVIDES TERMS CONDITIONS EXCLUSIONS ALONGWITH AREAS WHICH ARE EXCLUDED FOR TRADING

18) INSTITUTE WARRANTIES OCEANGOING VESSELS ARE COVERED WHILST TRADING WORLD WIDE WITH CERTAIN EXCLUSION SPECIFIED UNDER INSTITUTE WARRANTIES.

19) SPECIAL PREMIUM ADJUSTEMNT & /OR CONCELLATON CLAUSE

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HULL CLAUSES & UNDERWRITING

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INSTITUTE TIME CLAUSES LAUSE -- 6

6.1.1 PERILS OF THE SEAS RIVERS, OR OTHER NAVIGABLE WATERS.

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INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.2 FIRE, EXPLOSION

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6.1.4 JETTISION

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6.1.5 PIRACY

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6.1.6 BREAKDOWN OF OR ACCIDENT TO NUCLER INSTALLATIONS OR REACTORS

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6.1.7 CONTACT WITH AIRCRAFT OR SIMILAR OBJECTS,OR OBJECTS FALLING THEREFROM,

LAND CONVEYANCE, DOCK OR HARBOUR EQUIPMENT, INSTALLATION.

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6.1.8 EARTHQUAKE OR VOLCANIC ERUPTION OR LIGHTNING.

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6.2.1 ACCIDENTS IN LOADING DISCHARGING OR SHIFTING CARGO OR FUEL.

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6.2.2 BURSTING OF BOILERS BREAKAGE OF SHAFTS OR ANY LATENT DEFECT IN THE MACHINERY OR HULL.

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6.2.3 NEGLIGENCE OF MASTER,OFFICERS, CREWS OR PILOTS

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6.2.4 NEGLIGENCE OF REPAIRERS AND CHARTERERS PROVIDED THEY ARE NOT ASSURED.

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6.2.5 BARRATARY OF MASTER OFFICERS OR CREWS.

SEAWORTHINESSFOR VOYAGE POLICY

IMPLIED WARRANTY

At the commencement of the risk,the vessel be reasonably fit to encounter the ordinary perils of the port.

TIME POLICYThere is no implied warranty that ship shall be seaworthy at any stage of adventure,but where with the privity of the assured, the ship is sent to sea in an unseaworthy state,the insurer is not liable for any loss attributable to unseaworthiness

SEAWORTHINESS INCLUDES

1) Condition of Hull,machinery 2) The fulfilment of experts,master crew on board requirement as per MMD etc.

ENDORSEMENTS :

ENDORSEMETS ARE PASSED FOR -

- INSTALMENT PREMIUM- INCREASE / DECREASE IN S.I.- BREACH OF WARRANTY- CHANGES IN TRADING WARRANTY- TO INCLUDE NAMES OF LOSS PAYEE- TO COVER ADDITIONAL RISK OF P & I AS PER REQUIREMENT OF PORT AUTHORITY.

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TYPES OF LOSSESGROUNDINGSTRANDINGTOTAL LOSSCOLLISIONFIRE / EXPLOSIONJETTISIONTHEFT BY VIOLANCEPIRACYMACHINERY DAMAGEFALL OF CARGO NEGLIGENCE OF CREWCONTACT W THAIRCRAFT,LAND CONV. DOCK HARBOURBOILER BURSTING,BREAKAGE OF SHAFTNEGLIGENCE OF REPAIRER / CHARTERERBARRATARY OF MASTER OFFICERS AND CREW

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PRELIMINARY REPORT AND ESTIMATE OF LOSS

PRELIMINARY REPORT SHOULD BE RECEIVED WHIN IN 15 DAYS.

NATURE OF DAMAGE ANALYSIS CAUSE OF DAMAGE ANALYSIS ESTIMATE OF LOSS. THIS IS TIME YOU CAN APPOINT ANY OTHER SURVEYOR FOR

FINAL SURVEY.

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LOSS REPORT AND APPOINTMENT OF SURVEYOR

CHECK POLICY TERMS,TYPE OF LOSS AND AREA OF TRADING AND APPROXIMATE LOSS,DF

GENERAL AVERAGE G.A LIKE ,PARTICULAR AVERAGE APPOINT PROPER SURVEYOR IF YOU HAVE NOT APPOINTED

A.M.GAWARIKAR OF TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES.

MARINE HULL CLAIMS, PROCEDURE.

1. INTIMATION OF LOSS : INSURED SHOULD INFORM THE UNDERWRITING D.O./R.O. ABOUT THE LOSS IMMEDIATELY AFTER ITS NOTIFICATION TO ENABLETHE UNDERWRITER TO APPOINT SURVEYOR.

2. THE CLAIMANT SHOULD BE ADVISED ENTIRELY WITHOUT PREJUDICE, TO TAKE ADEQUATE STEPS TO MINIMIZE THE LOSS. A LETTER SHOULD BE WRITTEN TO THE CLAIMANT, WITHOUT PREJUDICETO CO-OPERATE WITH THE SURVEYORS IN ALL RESPECT. CLAIMS ARE GENERALLY PROCESSED BASED ON THE SURVEYORS FINDINGS AND THE RECOMMENDATIONS. REPAIR BILLS ARE REQUIREDTO BE CERTIFIED BY THE SURVEYOR.

3. THE CLAIMANT AS WELL AS UNDERWRITERS SHOULD VERIFY :I. WHETHER THE RELATIVE HULL POLICY IS IN

FORCE AS ON THE DATE OF THE LOSS.II. WHETHER THE POLICY COVERS THE SUBJECT

VESSEL, AND THE APPROPRIATE COVER IS AVAILABLE UNDER THE POLICY. (e.g. IF THE COVER GIVEN IS TOTAL LOSS ONLY, NO PARTIAL LOSSES WILL BE COVERED UNDERTHE POLICY.)

III. WHETHER TRADING WARRANTY IS BREACHEDOR NOT.

IV. WHETHER ALL CERTIFICATES ARE VALID. IF THE VESSEL IS CLASS, WHETHER THE CLASS IS MAINTAINED OR NOT. WHETHER ISM CODE IS MAINTAINED.

4. TYPES OF CLAIMS WHICH OCCUR IN CONNETION WITH HULL INSURANCE ARE :I. TOTAL LOSS/CONSTRUCTIVE TOTAL LOSS.II. PARTIAL LOSSIII. SALVAGE CHARGES - EITHER SALVAGE

UNDER CONTRACT.OR SALVAGE AWARDS.IV. GENERAL AVERAGE.V. COLLISION LIABILITY.VI. SUE AND LABOUR CHARGES.VII. T.P. LIABILITY CLAIMS FALLING UNDER P & I

SECTION OF THE POLICY.VIII. PERSONAL ACCIDENT CLAIMS.

5. IN CASE OF TOTAL LOSS CLAIMS APART FROM THE INVESTIGATORS REPORT CANCELLATION OF REGISTRY CERTIFICATE IS REQUIRED TO BE SUBMITTED.

6. IN CASE OF C.T.L. THE INSURED GIVES NOTICE OF ABANDONMENT TO THE INSURER, WHICH INSURERMUST REFUSE TO ACCEPT.

7. THE OCEAN GOING VESSEL CLAIMS, ARE GENERALLY REFERRED TO THE AVERAGE ADJUSTERBY THE INSURED. AVERAGE ADJUSTERS ARE

ADJUSTING THE CLAIMS AS PER THE TERMS CONDITIONS OF THE POLICY AND ACCORDINGLY RECOMMEND THE CLAIM FOR PAYMENT.

8. COLLISION CLAIMS OF OCEAN GOING VESSELS AREREFERRED TO THE P & I CLUB OF THE VESSEL. THE CLUBS ARRANGES FOR THE SECURITIES AS DEMANDED BY THE OPPONENT VESSEL OR ITS P & I CLUB. UNDERWRITER HAS TO ARRANGE FOR THE COUNTER SECURITY FOR 3/4th RDC AS PER THE ITC HULLS CLAUSES.THE INSURED HAS TO GIVE COUNTER SECURITY TO THE UNDERWRITER FOR THE 3/4TH SECURITY,WHICH IS ARRANGED BY THE UNDERWRITER. COLLISION CLAIMS ARE SETTLED AS PER THE DECISION OF THE COURT, OR IF MUTUALLY AGREED, OUT OF COURT SETTLEMENT IS ALSO MADE.

9. GROUNDING CLAIMS : TO SALVAGE THE VESSEL, SALVERS ARE APPOINTED BY CALLING TENDERS BYTHE OWNERS WITH THE ASSISTANCE OF THE SURVEYOR.

10. IN CASE OF OCEAN GOING VESSELS, SALVERS ENTER

INTO AGREEMENT ON “NO CURE NO PAY” BASIS. THEIR REMUNERATION IS AGREED BY CONTRACT ORBY ARBITRATOR.

11. BEFORE SETTLEMENT OF THE CLAIM NO OBJECTIONCERTIFICATE OF THE ASSIGNEE IS TO BE OBTAINED.

12. BASED ON SURVORS’, & ADJUSTER’S REPORT NOTE IS PUT UP BY THE CONCERNED OFFICE TO PROPER SANCTIONING FINANCIL AUTHORITY.

OCEAN GOING VESSELS

- GENERAL CARGO VESSEL- BULK CARRIERS- TANKERS - PRODUCT CARRIERS

- LPG, LNG CARRIERS - EQUIPPED WITH INERT GAS SYSTEM

- TUGS/ SUPPLY VESSELS - ANCHOR HANDLING TUG-CUM-SUPPLY VESSELS.

REGISTRATION -MERCHANT SHIPPING ACT.1935TRADING LIMITS : INSTITUTE WARRANTIES DT.01-070-76COVERS : WIDER OR TOTAL LOSS ONLY.CONDITIONS : ITC HULLS DT.01-10-83

CLASS & ISM CODE COMPLIANCE.OCEAN GOING VESSELS GUIDELINES :As per IRDA Regulations.

OCEANGOING VESSELS

ISSUED TO OWNERS OR BAREBOAT CHARTERS’ ONLY1) RATING :- AS PER THE GUIDELINES PROVIDED BY TACTO BE FINALISED BY HO TECHNICAL DEPT.2) COMPULSARY CLASSIFICATION3) INDIAN SHIPOWNERS CAN TAKE COVER IN INDIA.OR FOREIGN FLAG VESSELS WHERE INDIAN MANAGER/ BARE BOAT CHARTERS ARE INVOLVED

ANY CHANGE IN CONDITION DURING CURRENCY OF POLICY INCLUDING DEDUCTIBLE WILL CEASE THE POLICY.POLICIES CAN BE ASSIGNED TO THE FINANCERS BYOWNERS.

LAY UP RETURNS PROVISION FOR POLICIES ISSUED UNDER ITC HULLS 1.10.83 CONDITION

CAN OPT FOR CRO WHERE BY DISCOUNT IN THE RATES IS GRANTED DEPENDING UPON CATEGORY OF THE FLEET

CATEGORY CRO DISC. ON ANNUAL RATE

SINGLETON 4.5% 1 4.0%2 3.5%3 2.5%4 1.5%5 1.5%

ALL VESSELS UNDER FLEET SHOULD BE COVER FOR CRO

PREMIUM CAN BE PAID IN FOUR EQUAL INSTALMENTS ON OR BEFORE DUE DATES

SEAWORTHINESS TO BE ADMITTED

ITC HULL 1.10.83 PROVIDES ¾th COLLISINONLIABILITY

¼TH LIABILITY CAN BE COVERED WITH P & I CLUB.

NO COVER FOR OUTBOARD ENGINE FITTED TO SHIP.

MINIMUM RATE TL + 0.01% TOWARDS OTL COMPONENT

RATING OF SUBSIDIARY INTEREST1) SHOULD NOT BE HIGHER THAN H & M RATE

RISK RATE

FREIGHT TL TO BE LOADED BY 20%min 0.10% + 10%(min.0.05%)

DISBURSEMENT & IV TL + 10% min 0.05%PREMIUM REDUCING 80% OF TLGA DISBURSEMENT 50% OF H & M RATE.

Maximum Deductible

1) Vessel not above 20 yrs. in age Final amount shouldnot be more than 3% ofH & M Sum Insured

2) Vessels above 20 yrs.in age Final amount shouldnot be more than 3.75%of H & M Sum Insured

TRADING WARRANTIESAll attachments /aquisition shall be covered subject to any one of the following trading warranties

OCEANGOING VESELS

A) Warranted vessel plying only within a port limits of (name of the port with leave to proceed not beyond 12 N.M. from prominent point of the harbour/port as designated by Port Authorities/custom or local Authorities

RENEWAL RATING

- FIVE YEARS PREMIUM /CLAIM STATISTICS

- MAJOR CASUALTY DEDUCTION FOR CUMULATIVE INCREASE OF 20% OR MORE

- PENALTY/ REDUCTION AS PER GRAPH PROVIDED

-TOTAL CLAIM = CLAIM RATIO TOTAL PREIMUM

- PENALTY FOR CLAIM RATIOS MORE THAN 40%

- REDUCTION FOR CLAIM RATIO LESS THAN 20% WITHOUT EXCLUDING MAJOR CASUALTY DEDUCTION.

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COMMERCIAL MANAGEMENT

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MANAGEMENT OF SHIP

OWNERS AND OR MANAGERSTECHNICAL SHIP MANAGEMENT

NEW CONSTRUCTIONSURVEY AND MANAGEMENT

OPERATIONAL MANAGEMENTCOMMERCIAL MANAGEMENT

DRY DOCKINGSALE AND PURCHASE OF SHIP

MASTER CHIEF ENGINEER G P CREWS

CHIEF MATE 2ND ENGINEER ENGINE CREW

2ND OFFICER WATCH KEEPING ENGINEERS

WATCH KEEPING OFFICERS

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NEW CONSTRUCTION

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DRY DOCKING

BUILDERS RISKS INSURANCE

SCOPE : ALL VESSELS - MECHANISED OR NON MECHANISED IRRESPECTIVE OF VALUE WHILSTUNDER CONSTRUCTIONS ARE COVERED.

ASSURED : COVER IS THEREFORE REQUESTEDBY THE SHIP BUILDER FOR THE RISKS WHILST THE VESSEL IS UNDER CONSTRUCTION.

PERIOD : RISK IS COVERED FROM THE DATE OF LAYING KEEL,UNTIL COMPLETION OF THE CONSTRUCTION AND HANDING OVER THE

VESSEL TO THE OWNER. COVER THEREFORE ALSO INCLUDES : TRIAL TRIPS,LAUNCHING AND DELIVERY

VOYAGE (UPTO 250 N.M.NO ADDITIONAL PREMIUM.)

SUM INSURED : FULL CONTRACT VALUE OR FULL COMPLETED VALUE WHICHEVER IS

GREATER.

COVER : SUBJECT TO “INSTITUTE BUILDERS RISKS CLAUSES DATED 01-06-88.”

PREMIUM : AS PER TARIFF FOR BUILDERS RISKS INSURANCE EFFECTIVE FROM 10-06-86

NOTE : PROPOSAL FORM IS THE BASIS OF UNDERWRITING.

BUILDERS RISK TARIFF

1) BASIS OF RATING :

a) FULL CONTRACT VALUE OR FULL COMPLETED VALUE WHICHEVER IS GREATER. B) PERIOD OF CONSTRUCTION - FROM INCEPTION OF ANY WORK IN THE YARD UNTIL FINAL DELIVERY.

2) CATEGORY :

A : BARGES ETC.WITHOUT MAIN PROPELLING MACHINERY

RATE : 0.35% + 0.035% PER MONTH OR PART.B: CONVENTONAL VESSELS

RATE : 0.45% + 0.045% PER MONTH OR PART. C : CONTAINERS,SHIPS HAVING REFRIGERATING

CAPACITY,WOODEN ,FIBER GLASSRATE : 0.55% + 0.055% PER MONTH FOR FIRST 12 MONTHS.

0.065% P.M. NEXT 12 MONTHS. 0.075% P.M. THEREAFTER

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D : WARSHIPS, LGC ETC.RATE : TO BE REFERRED TO TAC.

THE ABOVE RATES INCLUSIVE OF SRCC RISKS.

3) YARD DISCOUNT - FOR GOOD CLAIM RECORD.4) LOADING FOR ADVERSE CLAIM RECORD.5) OWNERS DISCOUNT - 15%

INSTITUTE CLAUSES FOR BUILDERS RISK DT.01.06.88

PERILS : 1) THE INSURANCE IS AGAINST ALL RISKS OF LOSS OR DAMAGE TO THE SUBJECT MATTER DURING THE PERIOD INCLUDING THE COST OF REPAIRING, REPLACING ANY DEFECTIVE PART SOLELY IN CONSEQUENCE OF THE DISCOVERY OF A LATENT DEFECT.

2) IN CASE OF FAILURE TO LAUNCH,UNDERWRITER HAS TO BEAR SUBSEQUENT EXP.

OTHER : 1) POLLUTION HAZARD : LOSS DUE TO & CAUSED BY ANY GOVT.AUTHORITY TO PREVENT POLLUTION HAZARD OR THREAT THEREOF.

2) FAULTY DESIGN : LOSS ARISING FROM FAULTY DESIGN - BUT NO COVER TO REPLACE SUCH FAULTY PART.3) COLLISION LIABILITY.4) PROTECTION AND INDEMNITY a) LOSS OR DAMAGE TO ANY FIXED OR MOVABLE OBJECT b) LOSS OF LIFE PERSONAL INJURY ILLNESS.

c) ANY EXPENCES OF REMOVAL OF THE WRECK OF THE VESSEL.

d) LEGAL COSTS.5) SUE & LABOUR CHARGES - EXPENCES INCURRED TO MINIMISE THE LOSS OR TO AVOID THE LOSS.

EXCLUSION :WAR RISKSNUCLEAR WEAPONS.

INFORMATION TO BE COLLECTED BY WAY OF COMPLETED PROPOSAL FORM

1) NAME & ADDRESS OF THE BUILDER2) CONSTRUCTION YARD NUMBER3) PALCE OF CONSTRUCTION4) CONTRACT VALUE - HULL Rs. Or COMPLETED VALUE - MACH : Rs.5) TYPE OF VESSEL - STEEL, WOODEN ETC.6) CLASSIFICATION, GRT,DIAMENSIONS ETC.7) DATE OF LAYING OF KEEL8) PROBABLE DATE OF COMPLETION9) PROBABLE DATE OF ARRIVAL OF FIRST ITEM OF MACHIERY.

6) INSTALMENT FACILITY :i) ON QUARTERLY BASIS - WILL BE GRANTED

ii)ONLY WHEN THE PERIOD OF CONSTRUCTION IS OVER 12 MONTHS.iii) FIRST INSTALMENT WILL BE 5% MORE THAN THE REST.

7) DELIVERY VOYAGE UPTO 250 N.M.ON OWN POWER IS COVERD WITHOUT ADDITIONAL PREMIUM. - BEYOND 250 N.M.ADDITIONAL PREMIUM TO BE CHARGED AS PER APPLICABEL TARIFF.

8) POLICY INCLUDES DURATION CLAUSE.

9) DEDUCTIBLE : POLICY SUBJECT TO DEDUCTIBLE 0.05% OF PROVISONAL CONTRACT VALUE WITH MINIMUM RS. 1,500/- & MAXIMUM Rs.6,00,000/-

TO BE ROUNDED TO NEAREST Rs.100/-

FISHING VESSELS /TRAWLERS

Tariff is applicable for all fishing vessels/Trawlers mechanized / non- mechanized upto Rs.100,00,000/-

Cover is subject to one of the condition given in tariff.

No cover for IFVC (Additional perils) clause 347 dt.20.7.87

No separate Insurance cover for Bunkers & spares. However, cost of Bunkers & spares can be included in H & M Sum Insured.

No cover for Fish Catch on board Fishing Vesel/Trawlers

Cover for laid up can be granted.Widest cover available is Institute Fishing Vessel clauses dt.20.7.87

No separate cover for fishing nets alone under Hull dept.

Nets are covered alongwith the vessels subject to IFVC

Valuation of net is to be ascertained at inception.

Minimum premium Rs.1000/-Short period cover a) more than 3 months less than 12 monthsb) 1/8 of the Annual rate to be charged.

- Fleet discount 10% for 10 or more fishing vessel of single owner- Owners discount /Agency commission shall be granted thereafter.- Not more than 15%- Policy should show aggregate value of Hull,Machinery &Accessories together.- Value for Fishing net to be shown seperately- All the rates are subject to cancellation returns only (CRO)

- SRCCRestricted conditions i.e. IFVC dt.20.7.87 TL/OTL only including Salvage ,SC.S & L) 0.05%

Wider conditionsi.e. IFVC dt.20.7.87 0.10%

MID TERM COVER for SRCC is granted subject ot short period rate of 1/8th of annual rate p.m. or part thereof - min 0.025% for restricted cover - max 0.05% for wider cover- Cover shall commence 15 days after the receipt of the premium

CONDITIONS OF INSURANCE

1) IFVC dated 20.7.87 but limited to pay only TL/CTL (including salvage,salvage charges Sue & Labour), CRO2) IFVC dated 20.7.87 with clause 20 (P & I risks) deleted, CRO3) IFVC dated 20.7.87, CRO

- subject to

“No breach of local port regulations regarding sailing” Trading warranties - 6 Tones for trading -Warranted vessel engaged in fishing operation connected therewith on

1) Coast of Gujarat,Maharashtra & Goa with leave to proceed upto Karwar Not beyond 50 nautical miles into the sea from shore. - Warranted vessel laid up to from 15th June to 15th August (B.D.I) with leave to operate on coasts of Saurashtra and Kutch during this period.

2) Coasts of karnataka,Kerala and West & South coasts of Tamil Nadu upto and including Gulf of Mannar- laid up 1st June to 15th Aug.(B.D.I)3) coast of Andhra Pradesh and Tamil Nadu including Pondichery) upto and including Palk Strait & Palk Bery- laid up from 1st Nov.5o 31st January (B.D.I)4) Coast of Orissa & West Bengal - laid up from 1st May to 30th Sept.(BDI)5) Coast of Andaman & Nicobar Islands coast of Andaman to Nicobar & vice versa - laid up for 15th May to 15th Nov.(BDI)6) Coasts of islands constituing Lakshadweep & not to proceed beyond20 N.M.into sea from shore with leave to proceed from one island toanother island forming port of lakshadweeplaid up 15th May to 15th Nov.(BDI)For employment beyond 50 N.M. upto 100N.M subject to Additional premium & certification by competent authority.

- Separate Trading warranty for Deep Sea Fishing Vessels /Trawlers.Warranted vessel employed for fishing

a) On the East & West coast of India but not to proceed beyond 300 N.M. into the sea from shore.

b) On the coast of Lakshadweep Islands but not to proceed beyond 300 N.M.

c) On the coast of Andaman & Nicobar islands but not to proceed beyond 300 N.M.into the sea from the shore.

All voyages between a,b,c, are covered without any A.P.but no fishing whist passing from one zone to another.

ADDITIONAL COVERS

1) EXTENDED TRADING - RS.2000 PER ZONE2) FOR FV.PLYING BEYOND H &.M rate loaded by 100 N.M.UPTO 300 N.M 0.10%3) DEEP SEA TRADING IN A.P. RS.10000

ALL ZONESA.P FOR WAIVER OF MONSOON LAY-UP WARRANTY TO BE OPTED AT THE INCEPTION OF COVER

FOR FISHING VESSELS WITH S.I. UPTO RS.10 LAKHS1) ONE ZONE 1.5% OF H & M S.I.2) MORE THAN ONE ZONE ON THE SAME COAST 2.5% OF H & M S.I.3) FOR MORE THAN ONE COAST INCLUDING ANDAMAN & NICOBAR AND LAKSHADWEEP 3% OF H & M S.I.

(ABOVE RS.20 LACS AND UPTO RS.100 LACS)

FISHING VESSEL(WIDER CONDITIONS)

ATTACHING TO AND FORMING PART OF POLICY NO.____A/C. M/S._____________________________________________

SUBJECT TO INSTITUTE FISHING VESSEL CLAUSES DATED 20-07-87 AS ATTACHED.

SUBJECT TO CANCELATION RETURNS ONLY.NO REFUND OF PREMIUM IS PAYABLE IN THE EVENT THE VESSEL IS LAID UP IN PORT OR ON HARD DURING THE CURRENCY OF INSURANCE.

SUBJECT TO DEDUCTIBLE OF 0.50% OF S.I. EACH CLAIM (OTHER THAN TL AND CTL) EACH ACCIDENT OR OCCURRENCE. OR 10% OF ASSESSED LOSS WHICHEVER IS HIGHER.

SUBJECT TO ADDITIONAL DEDUCTIBLE OF 10% OF THEASSESSED LOSS UNDER CLAUSE NO.13.

SUBJECT TO INSTITUTE RADIOACTIVE CONTAMINATIONEXCLUSION CLAUSE CL.356 (01-10-90)

SUBJECT TO ELEC.DATE RECOGNITION ENDT.

EXTENSION :

(a) INCLUDING S.R.C.C RISKS AS PER STRIKE CLAUSES.

TRADING WARRANTY :- TO INDICATESUBJECT TO NO BREACH OF LOCAL PORT REGULATIONREGARDING SAILING.

Thank you

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