RFIB Group RFIB Group Introduction to RFIB Group Ltd Marine Hull Insurance presentation Presented by Stephen Hurst June 2019 Page number www.rfib.com
Introduction • Stephen Hurst • Working in Marine Insurance industry for 38 years • Joined RFIB Group 1984. • Specialising in Marine Hull business for 20 Years • Divisional Director and part of the Middle East broking team. • A regular visitor to the GCC region . Page number www.rfib.com
The Marine Market Buyers - Shipowners Intermediaries - Brokers / Agents Sellers - Underwriters Page number www.rfib.com
The Intermediaries � Ship Agents � Local Brokers � Local Brokers � International Brokers Page number www.rfib.com
The Markets - Lloyds Page number www.rfib.com
The Markets - London and Overseas Companies Page number www.rfib.com
The Types of Risk � Ship Building and Conversion � Hull All Risks – Time and Voyage � Increased Value / Disbursements / Freight � Port Risks � Loss of Hire � Mortgagee’s Interest Page number www.rfib.com
Building – Construction and Repair Page number www.rfib.com
Ship Building and Conversion � Covers the construction risk from keel to final handover. � Values are low at first but rise rapidly as construction take place. Includes shipbuilders liability. � Coverage is normally based on an ‘all risk’ conditions � Can be accumulation in a Yard � Includes liability risk and marine risk on trials � Includes liability risk and marine risk on trials � Vessels are sometimes converted � Ship Building terms and conditions would still be used � “Going in Value” � Insured for Final Contract Value Page number www.rfib.com
MariHull All Risks – Time and Voyagene Page number www.rfib.com
Hull All Risks – Time and Voyage � Usually 12 months cover but can be on a voyage basis � Covers the vessel’s hull, machinery and equipment and can include 3/4 th of any damages for collision liability � General Average contributions, Salvage Charges and Sue and Labour Charges Charges � Cover is on named perils basis � Large Losses: � Lurssen Yacht – EUR 600,000,000 Builder Risk. � “COSTA CONCORDIA” – EUR 565,000,000 Page number www.rfib.com
The Named Perils – Institute Time Clauses 6. PERILS • 6.1 This insurance covers loss of or damage to the subject-matter insured caused by • 6.1.1 perils of the seas rivers lakes or other navigable waters • 6.1.2 fire, explosion • 6.1.3 violent theft by persons from outside the vessel • 6.1.4 jettison • 6.1.5 piracy • 6.1.6 breakdown of or accident to nuclear installations or reactors • 6.1.7 contact with aircraft or similar objects, or objects falling therefrom, land conveyance, dock or harbour equipment • or installation 6.1.8 earthquake volcanic eruption or lightning. • 6.2 This insurance covers loss of or damage to the subject-matter insured caused by • 6.2.1 accidents in loading discharging or shifting cargo or fuel • 6.2.2 bursting of boilers breakage of shafts or any latent defect in the machinery or hull • 6.2.3 negligence of Master Officers Crew or Pilots • 6.2.4 negligence of repairers or charterers provided such repairers or charterers are not an Assured hereunder • 6.2.5 barratry of Master Officers or Crew, • provided such loss or damage has not resulted from want of due diligence by the Assured, Owners or Managers. • 6.3 Master Officers Crew or Pilots not to be considered Owners within the meaning of this Clause 6 should they hold • shares in the vessel. Page number www.rfib.com
Total Loss Page number www.rfib.com
Constructive Total Loss Page number www.rfib.com
Collision Page number www.rfib.com
Fire Page number www.rfib.com
Grounding Page number www.rfib.com
Machinery Damage Page number www.rfib.com
Crew Negligence Page number www.rfib.com
Marine Hull Account – Underwriting Information • Age of vessels • Size of Vessels • Where were vessels built? • Flag • Classification • Trading Area • Loss History last 5 years • Maintenance Budgets • Charters • Cargos carried • How long vessels have been owned • Details of crewing arrangements • Accumulation? Page number www.rfib.com
Increased Value � Vessels are insured for an agreed value. Shipowners argue that they should not pay all risks premium for the full value as once a certain point is reached the vessel is likely to be declared a constructive total loss constructive total loss � Insurers generally allow a shipowner to insure part of the vessel as all risks (usually 80% of the agreed value) and 20% as increased value or freight on Total Loss Only terms Page number www.rfib.com
Port Risks � Cover physical damage and liabilities for vessels laid up or in port for protracted repair and maintenance work. � Problem of accumulation if many ships laid up together together � Some vessels traditionally laid up during summer months some during winter. Page number www.rfib.com
Loss of Hire Page number www.rfib.com
Loss of Hire � Compensates the shipowner for loss of income if their vessel can not be used due to Marine peril. � Calculated in daily income � Excludes total loss � Usual Limit 90 days any one accident � Excess 14 days a.o.a. � Limited to 180 days in all. Page number www.rfib.com
Mortgagee’s Interest � Protects lender’s collateral � Protects the lender against wrongful act of shipowner � If shipowner breaks a warranty or condition in hull policy insurer may void the policy. In this situation a mortgagee’s interest policy would allow the lender to recover the value of their loan Page number www.rfib.com
MORE INFORMATION Stephen Hurst Divisional Director Hull & Liability Tel: + (44) 207 621 8356 M: +(44) 7538476657 E Mail: Stephen.hurst@rfib.co.uk 20 Gracechurch Street, London, EC3V OAF Page number www.rfib.com
SHOKRAN Page number www.rfib.com
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