Transcript Diapositiva 1 - Studio Legale Lauro

SAFER SHIPS – WHAT’S THE MARINE
UNDERWRITERS’ ROLE?
Francesco Siccardi
Siccardi Bregante & C.
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THE ROLE OF MARINE UNDERWRITERS IN
SUPPORT OF THE SHIPPING INDUSTRY
-
Protecting the Owner’s asset (vessel) against partial/total loss/collision and
salvage liabilities through Hull & Machinery insurance;
-
Protecting the Owner’s corporate assets, against liabilities arising from
vessel’s trading through P&I insurance;
-
Facilitating the ship financing through mortgage of the insured vessel and
assignment of insurance proceeds to lending Banks.
-
Contributing to safety at sea through implementation of safety rules as Cover
warranties and conditions
Siccardi Bregante & C.
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HOW CAN MARINE UNDERWRITERS HELP
PROMOTING SAFETY AT SEA
•
PREVENTION OF CLAIMS
•
- Condition surveys (no substandard ships)
•
- Prudent underwriting policy
•
- Taking part to safety rules implementation process
Siccardi Bregante & C.
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HOW CAN MARINE UNDERWRITERS HELP
PROMOTING SAFETY AT SEA
SETTLEMENT OF CLAIMS
Compliance by the Assured of
1. Rules of Conduct (exclusions of cover)
2. International safety standards (certification) (warranties)
Siccardi Bregante & C.
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1. COVER EXCLUSIONS
ASSURED’S RULES OF CONDUCT
The DUAL THRESHOLD
A. Assured conduct in general
B. Assured conduct interfering with the employment or navigation
Siccardi Bregante & C.
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1.A ASSURED CONDUCT IN GENERAL
1. WILLFUL MISCONDUCT NOT COVERED
Sect 55 M.I.A. (Marine Insurance Act)
Club’s Rules
Sect 1900 It. Civil Code (Dolo)
Norwegian Marine Insurance Plan (intentionally/gross negligence)
French Hull Policy (Faute intentionelle)
2. NEGLIGENCE COVERED
Thames & Mersey Marine Co Ltd.
Sect 1900 It. Civil Code (Colpa)
WHAT IS WILLFUL MISCONDUCT: an act intentionally done, or a deliberate
omission by the Assured, with knowledge that the performance or omission will
probably result in injury, or an act done or omitted in such a way as to allow an
inference of a reckless disregard of the probable consequences).
Siccardi Bregante & C.
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1.B ASSURED CONDUCT INTERFERING WITH THE
SHIP’S EMPLOYMENT OR NAVIGATION
1. LOSS ATTRIBUTABLE TO SHIP SENT TO SEA IN UNSEAWORTY CONDITIONS
WITH THE PRIVITY OF THE ASSURED
Privity: Assured’s knowledge and consent (the Eurysthenes 1976)
2. DUE DILIGENCE
ITCH 1983
Negligence of Master etc. covered provided such loss or damage has not resulted
from want of due diligence by the Assured Owners or Managers.
Due Diligence: lack of reasonable care equal to privity?
Sect 524 it Code Navigation: loss caused by negligence of Master covered provided
Assured has taken no part (“privy?”).
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2. COMPLIANCE WITH INTERNATIONAL SAFETY
STANDARDS (WARRANTIES)
CLASS (ITCH 1.10.1983)
Vessel MUST BE CLASSED
NO CHANGE, SUSPENSION OR WITHDRAWAL OF CLASS
Non compliance: TERMINATION OF COVER
Siccardi Bregante & C.
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1.C HOW HAVE COVER CONDITIONS
CHANGED
Privity: blind eye knowledge insufficient: need to have suspicion or belief in the
vessel unseaworthiness and deliberately refraining from making enquiries
(the “Star Sea”, 2003)
ITCH 1983
… Due Diligence by the Assured, Owners or Managers
ITCH 1.10.95
…. Due Diligence by the Assured, Owners, Managers or any of their onshore
management
I.H.C. 2003
Or any of their onshore management deleted
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2.B. HOW HAVE WARRANTIES CHANGED
CLASS (IHC 2003)
Recommendations imposed by class as to vessel’s
seaworthiness to be complied with at the due date
[Club Rules]
[French Hull Policy]
[NMIP]
Owners to hold DOC - vessel to hold SMC
[Club Rules]
MANAGEMENT (IHC 2003)
Duty of Assured/Owners Managers to comply with all
statutory requirements of vessel’s flag relating to construction,
adaptation,condition,fitment, equipment, operation or
manning
[Club Rules]
[German DTV]
BUT
Non compliance: loss caused thereby not covered
Siccardi Bregante & C.
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CONCLUDING REMARKS
Are Underwriters reluctant to apply too strictly the rules?
Is Market not prepared to accept restriction of cover ?
How effective is the role of Marine Underwriters in promoting safety?
Siccardi Bregante & C.
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