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ECAPENERGY CLAIM ADJUSTMENT PROTOCOL

A quantum step forward in handling complex claims.

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ENERGY CLAIM ADJUSTMENT PROTOCOL

Indemnity basedAssured contracts repairs

Team approach maximizes the proactive efforts of theAssured and Insurers. Transparency of the process isessential.

American Petroleum Institute (API) RecommendedPractices form the agreed standards for damage evaluation

The API Procedural format hastens damage assessmentand expedites repairs

The use of agreed standards simplifies the ultimateadjustment process.

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AMERICAN PETROLEUM INSTITUTE

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API Recommended Practice (RP) 579

The assessment procedures in this recommended practice can be usedfor fitness-for-service assessments and/or re-rating of componentsdesigned and constructed to the following codes:

ASME B&PV Code, Section VIII, Division 1, Division 2(Fired and Unfired Pressure Vessels)

ASME B&PV Code, Section 1 (Power Boilers)

ASME B31.3 Piping Code (Process Piping)

ASME B31.1 Piping Code (Power Piping)

API 650 (Oil Storage Tanks)

API 620 (Low Pressure General Storage Tanks)

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STEP 1 . ESTABLISH THE TEAM

Agree on common goals. The intent of the Policy is to placethe Assured back in the position he was in immediatelybefore the loss.

API standards provide independent guidelines for damageassessment and repairs. Insurers agree to provide technicalexpertise to implement the API procedures, in concert withthe Assured.

Transparency is critical. All parties must cooperate toachieve maximum benefit.

Production of a common cause report is an importantintermediate goal. Subrogation/recovery may be possible.

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STEP 2 . ASSESS THE DAMAGE

Zoning: overpressure & heat exposure

Prioritize vessel assessment schedule according toapplicable zoning criteria

Place orders immediately for critical items located inhighest intensity damage zones

Determine required repairs for vessels in lower intensitydamage zones

Sub-systems (piping, instrumentation, controls) assessedafter critical vessels

Investigate potential consequential effects to other units

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ZONES OF DARKNESS

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DAMAGE ZONE CRITERIA

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STEP 3 . CHART REPLACEMENTS ANDREPAIRS, PREPARE FOR CLAIM

Scope of work documentation for the selected EPCcontractor evolves directly from the API damage report.

Order shorter lead time components (instruments,controls, etc.), now that major items are in-process.

Engage accountants for BI, if applicable.

Consider potential milestones and magnitude of partialpayments.

Collaboration as issues arise. Betterment issues may be

likely, but addressable.

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