marine insurance workshop - norwegian hull club · bbu ”akita” imo no 9000703 bbu ”aragon ......
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VESSEL: “NORWEGIAN HULL”
H&M SUM INSURED: USD 32 000 000
Deductibles:
Cl. 12-18: USD 350 000
Cl. 12-15 and 12-16: N/A
Deductible as per Cl. 13-4: USD 50 000
General Average amount as per Cl. 4 - 8.3: USD 350 000
HI/FI SUM INSURED: USD 8 000 000
LOH SUM INSURED USD 1 800 000
BASIS: 14/90/90
Daily Indemnity: USD 20 000
CONDITIONS:
Nordic Marine Insurance Plan of 2013
• Introduction to the Owner
• Establish Owners Insurance Needs » H&M – LOH – HI/FI - WAR
• Establish Owners Philosophy
• Define Strategic Partners
• Suggest Insurance Strategy
How did we get there?
• The broker has a duty to act in the best interests of their
clients – an owners´ broker.
Acting on behalf of the person effecting the insurance
(The Plan Cl. 1-3)
• Reasons for using a broker
– Market Knowledge
– Market Access
– Documentation and Administration
The Role of the Insurance Broker
• History dates back to 1837
• Offices in Bergen, Oslo and Kristiansand
• Leading international insurer of Marine Hull
& Machinery, Loss of Hire and Total Loss
Interests
Background
• Quality Focus
• Long-term strategic partner
• Leading Underwriter & Claims Handler
• Added value through experience transfer
• Profit orientated
Business Philosophy
• Hull & Machinery
• Total Loss Interests
• Loss of Hire
• War
• Offshore Energy
• Charterers’ P&I
• Builders Risk
• Special Risk
• Yacht
• Marine Benefits
Products
Vessel IMO No. Year GRT DWT Type
NORWEGIAN HULL 9071050 2004
33 000 47 000 GPC
BALTIC 8413400 2012 67 000 110 000 TTA
ADRIA 8413460 2002 28 800 62 000 BBU
BOSTON 9032490 2012 74 700 139 000 TTA
BRAVO 9112090 1999 150 000 274 000 TTA
ARAGON 8015713 2002 28 800 62 000 BBU
AKITA 9000703 2003 27 500 58 000 BBU
Norwegian Hull Shipping Inc.
• The Vessels:
– Type
– Age
– Size
– Class
– Flag
– Trade / Cargo
– Detentions / Classification Issues
Vital input when assessing the risk
• The Operation:
– Ownership Structure
• Integrated organisation
• Third party management
– Reputation
– Insurance History
– Financial Standing
Vital input when assessing the risk
• The Vessels
• The Operation
• Insurance Coverage:
– Scope of Cover
– Sums Insured
– Deductible
Vital input when assessing the risk
• Hull & Machinery (NMIP Chapter 10)
– Insurance on full conditions covers:
• Total loss
• Particular Average
• Salvage
• Collision Liability
• General Average
Hull Related Insurances
• Hull & Machinery (H&M)
• Separate (additional) insurances against
total loss (NMIP Chapter14)
– Hull Interest insurance
– Freight Interest insurance
Hull Related Insurances
• Hull & Machinery (H&M)
• Insurances against total loss
• Loss of Hire (NMIP Chapter 16) – Covers financial loss when the vessel is wholly or
partially deprived of income as a consequence of
damage to the vessel, subject to the damage being
recoverable under her Hull & Machinery policy.
Hull Related Insurances
• Hull & Machinery (H&M)
• Insurances against total loss
• Loss of Hire
• War Risk insurance (NMIP Chapter 15) – Covering physical damage to the vessel as a
consequence of war perils (NMIP Cl. 2-9).
Hull Related Insurances
• The Vessels
• The Operation
• Insurance Coverage:
– Scope of Cover
– Sums Insured
– Deductible
Vital input when assessing the risk
Norwegian Hull Club Underwriting Process
• Risk assessment: Screening at two levels;
1. Public information (25-plus indicators)
2. Extended list of indicators (Owner data)
• Pricing
1. NHC database
2. Cefor database
• Line guide
Norwegian Hull Shipping Inc.
Score
Age
Vessel
Watch
Comparable
Vessels
CTL
Issues?
Novel
Design?
Homogeneous
Fleet
Size
Class
Society
# Classes
Change of Class
Class Records
Flag
State
Aw ards
Change of
Ow nership
Change of
Management
Premium
Payment
Claim Rating
Banned
Detention
CountDetentions
Days
Seaw ay
Profit
Freq
Rightship
Weighted Average
0
1
2
3
4
5
Score
NORWEGIAN SHIPPING & TRADING ASA
Risk Assessment Scoring
Vessel Year Type IMO No. GRT DWT
Sum
Insured Deductible Rate % Premium
NORWEGIAN HULL 2004 GPC 9071050 33 000 47 000 32 000 000 350 000 0,4725 151 200
BALTIC 2012 TTA 8413400 58 200 110 000 60 000 000 150 000 0,1945 116 700
ADRIA 2002 BBU 8413460 28 800 62 000 28 000 000 75 000 0,4541 127 148
BOSTON 2012 TTA 9032490 74 700 139 000 42 000 000 150 000 0,3027 127 134
BRAVO 1999 TTA 9112090 167 000 274 000 48 000 000 250 000 0,3460 166 080
ARAGON 2002 BBU 8015713 28 800 62 000 28 000 000 75 000 0,4541 127 148
AKITA 2003 BBU 9000703 27 500 58 000 32 000 000 75 000 0,4000 128 000
943 410
Hull & Machinery Quote Hull & Machinery Quote
Subject to the terms and conditions of the Nordic Marine Insurance Plan of 2013,
Part One and Chapters 10 -13, but deductibles as follows in lieu of 12-18 of the
Plan:
”Norwegian Hull” : $350,000
”Akita” / ”Aragon” / ”Adria”: $75,000
”Baltic” / ”Boston”: $150,000
”Bravo”: $250,000
Deductible as per Cl. 13-4 of the Plan: $50,000
General Average amount as per CL. 4-8.3 of the Plan: $ 350,000
CEFOR Sanction Limitation & Exclusion Clause
Claims Leader: Norwegian Hull Club
Quarterly premium payment
Brokerage: 10%
H&M Conditions
Hull / Freight Interest Quote
Vessel Year Type IMO No. GRT DWT Sum Insured Rate % Premium
NORWEGIAN HULL 2004 GPC 9071050 33 000 47 000 8 000 000 0,15 12 000
BALTIC 2012 TTA 8413400 58 200 110 000 15 000 000 0,1 15 000
ADRIA 2002 BBU 8413460 28 800 62 000 7 000 000 0,15 10 500
BOSTON 2012 TTA 9032490 74 700 139 000 10 500 000 0,125 13 125
BRAVO 1999 TTA 9112090 167 000 274 000 12 000 000 0,125 15 000
ARAGON 2002 BBU 8015713 28 800 62 000 7 000 000 0,15 10 500
AKITA 2003 BBU 9000703 27 500 58 000 8 000 000 0,15 12 000
76 125
Hull / Freight Interest - Conditions
Subject to the terms and conditions of the Nordic Marine
Insurance Plan of 2013, Part One and Chapter 14.
Upfront premium payment
Brokerage: 10%
Loss of Hire Quote
Vessel Year Type IMO No. GRT DWT D / I Basis Sum Insured Rate % Premium
NORWEGIAN HULL 2004 GPC 9071050 33 000 47 000 20 000 14/90/90 1 800 000 2,5 45 000
BALTIC 2012 TTA 8413400 58 200 110 000 50 000 14/90/90 4 500 000 2,0 90 000
ADRIA 2002 BBU 8413460 28 800 62 000 10 000 14/90/90 900 000 2,5 22 500
BOSTON 2012 TTA 9032490 74 700 139 000 45 000 14/90/90 4 050 000 2,5 101 250
BRAVO 1999 TTA 9112090 167 000 274 000 55 000 14/90/90 4 950 000 2,5 123 750
ARAGON 2002 BBU 8015713 28 800 62 000 10 000 14/90/90 900 000 2,5 22 500
AKITA 2003 BBU 9000703 27 500 58 000 10 000 14/90/90 900 000 2,5 22 500
382 500
Loss of Hire - Conditions
• Subject to the terms and conditions of the
Nordic Marine Insurance Plan of 2013,
Part One and Chapter 16
• Upfront premium payment
• Brokerage: 10,0%
Vessel Year Type IMO No. GRT DWT
Sum
Insured Rate % Premium
NORWEGIAN HULL 2004 GPC 9071050 33 000 47 000 49 800 000 0,01 4 980
BALTIC 2012 TTA 8413400 58 200 110 000 94 500 000 0,01 9 450
ADRIA 2002 BBU 8413460 28 800 62 000 42 900 000 0,01 4 290
BOSTON 2012 TTA 9032490 74 700 139 000 67 050 000 0,01 6 705
BRAVO 1999 TTA 9112090 167 000 274 000 78 950 000 0,01 7 895
ARAGON 2002 BBU 8015713 28 800 62 000 42 900 000 0,01 4 290
AKITA 2003 BBU 9000703 27 500 58 000 48 900 000 0,01 4 890
42 500
WAR Quote
WAR - Conditions Subject to the Nordic Marine Insurance Plan of 2013, Part One and chapter 15 against war risks
as defined in Cl. 2-9.
Covers (Cl. 15-2, Interests insured)
- total loss and damage
- collision liability
- hull interest/freight interest
- loss of hire
- P&I and occupational injury insurance
Paramount clauses:
- Institute Cyber Attack Exclusion Clause 10/11/03 (Cl. 380)
- CEFOR Sanction Limitation & Exclusion Clause
World wide trading, except areas that are conditional or excluded as per the list of Areas of
Perceived Enhanced Risk published by the Joint War Committee in London.
The list may be changed on immediate notice.
Claims Leader: Norwegian Hull Club
Upfront premium payment
Brokerage: 10%
Conclude the placing
Negotiating terms
Evaluation of terms
Recommendation to the shipowner
Placing the order…
MARINE COVER-NOTE NO.: 10001 / 2013.
TO: Norwegian Hull Shipping Inc.
In accordance with your instructions we have effected
insurance as follows:
INSURED: Norwegian Hull Shipping Inc.
VESSELS:
GPC ”NORWEGIAN HULL” IMO No 9071050
BBU ”AKITA” IMO No 9000703
BBU ”ARAGON” IMO No 8015713
BBU ”ADRIA” IMO No 8413460
TTA ”BOSTON” IMO No 9032490
TTA ”BALTIC” IMO No 8413400
TTA ”BRAVO” IMO No 9112090
PERIOD: 01.01.2015 – 31.12.2015 (Norwegian time)
INTEREST: Hull and Machinery values as below
SUM INSURED: 100 % ORDER HEREON: 15 %
VESSELS: Value: Rate: Premium (100%):
(USD) (%) (USD)
GPC ”NORWEGIAN HULL” 32,000,000 0.4725 151,200
BBU ”AKITA” 32,000,000 0.4000 128,000
BBU ”ARAGON” 28,000,000 0.4541 127,148
BBU ”ADRIA” 28,000,000 0.4541 127.148
TTA ”BALTIC” 60,000,000 0.1945 116,700
TTA ”BOSTON” 42,000,000 0.3027 127,134
TTA ”BRAVO” 48,000,000 0.3460 166,080
CONDITIONS: Subject to the terms and conditions of the Nordic
Marine Insurance Plan of 2013, Part One and Chapter 10 – 13
but deductibles as follows in lieu of Cl. 12-18 of the Plan:
“NORWEGIAN HULL”: USD 350,000
“AKITA”,”ARAGON”,
“ADRIA”: USD 75,000 ev
“ BALTIC” “ BOSTON”: USD 150,000 ev
“BRAVO”: USD 250,000
Deductible as per Cl. 13-4 of the Plan: USD 50.000 ev
General Average amount as per Cl. 4 - 8.3. of the Plan: USD 350.000
TRADING:
Worldwide subject to Nordic Trading Warranties, but vessels with Ice Class
1A may call at ports in the Gulf of Finland year around without Additional
Premium – provided sailing conditions approved by the respective
Countries’ Ice / Port Authorities and all recommendations complied with.
MORTGAGEES:
It is hereby noted and agreed that the interest of Trustworthy BANK, as
first priority mortgagees to be noted hereunder in accordance with the
Nordic Marine Insurance Plan of 2013, Chapter 7.
CLAIMS LEADER: Underwriters hereon to follow Norwegian Hull Club, on claims handling and adjustments in all respects (excl. ex gratia settlements) in accordance with Chapter 9 of the Nordic Marine Insurance Plan of 2013. GROSS PREMIUM: USD 943,410 p.a. payable quarterly SECURITY: 15.00% Norwegian Hull Club 10.00% HDI Gerling 35.00% Underwriters at Lloyds, London 15.00% Allianz 15.00% Assicurazioni Generali 10.00% People’s Insurance Company of China 100.00%
DATE: 1st June, 2015 for Nordic Brokers AS
as Brokers only