Transcript SLIDE 7

100 YEARS
OF
LLOYD’S FORM OF SALVAGE
AGREEMENT
OR
LLOYD’S OPEN FORM
OR
LOF
Capt.Mukesh Gautama
 ORIGIN
 NO CURE NO PAY.
 ADMINISTERED BY LLOYD’S.
 SALVAGE SECURITY.
 REVISED 10 TIMES
 MAJOR REVISION IN 1980.
 AMOCO CADIZ.
 “THE BLACK TIDE RISING”
WHEN LOF IS NEEDED?
 IS THE SITUATION OUT OF CONTROL.
 HOW RAPIDLY THINGS ARE DETERIOTING
 THREAT TO LIFE.
 THREAT TO ENVIRONMENT.
 CAN LEAD TO CRIMINALISATION OF MASTER.
CAUSE OF MARINE
EMERGENCIES.
 ACTS OF GOD – NATURAL PERILS OF OCEAN.
 HUMAN ERROR.
 MECHANICAL FAILURE.
 “TUNNEL VISION”
TYPES OF CASUALTY
WARRANTING LOF
 COLLISION
 GROUNDING
 STRUCTURAL FAILURE
 FIRE
 DRIFTING
 THREAT OF POLLUTION – ZERO TOLERANCE
Claims Trends
Photo AHIS
 LAST 29 YEARS – 2701 LOF AGREEMENTS
 SALVED VALUE : USD 32.2 BILLION
 14 MILLION TONNES OF OIL AND POLLUTANTS
RECOVERED
 EXXON VALDEZ
 ERIKA
 PRESTIGE
SALIENT FEATURES OF LOF 2000
 SIMPLE DOCUMENT
 SEVEN BOXES TO BE COMPLETED
 NO ARREST OF VESSEL
 FORM SIGNED SALAVAGE COMMENCES
 FAIR AND JUST AWARD
 NO RECOVERY NO PAYMENT
 NO PRECONTRACT DISCUSSIONS
 MASTER AUTHORISED TO SIGN ON BEHALF
OF CARGO
REASONS FOR REVISION
• SAFETY NET
• SPECIAL COMPENSATION – LOF 1990
• SCOPIC – LOF 2000
• SPECIAL CASUALTY REPRESENTATIVE (SCR)
WHEN SCOPIC IS
INVOKED?
• LOW PROPERTY VALUES
• HIGH RISK
• NO GAURANTEE OF SUCCESS
• POLLUTION RISK
SALVAGE AWARD
 SALVED VALUE OF PROPERTY (SHIP, CARGO AND
BUNKERS)
 SKILL AND EFFORTS OF SALVOR
 MEASURE OF SUCCESS.
 NATURE AND DEGREE OF DANGER.
 EXPENSES OF SALVOR.
 EQUIPMENT USED.
 VESSEL’S EQUIPMENT USED.
 TIME TAKEN TO COMPLETE THE SALVAGE OPERATION.
 PREVENTING OR MINIMISING THE DAMAGE TO
ENVIRONMENT.
KEY INFORMATION TO PROVIDE TO
SALVORS
CURRENT PROBLEM
POSITION, COURSE, SPEED, DRIFT
TOTAL COMPLEMENT ON BOARD
VESSEL’S PARTICULARS
LIST -- PORT OR STARBOARD STATIC OR
CHANGING
KEY INFORMATION TO
PROVIDE TO
SALVORS
 WEATHER CONDITION AND SEA STATE
 LAST PORT – NEXT PORT – VOYAGE DETAILS
 POLLUTION HAZARD
 CARGO
 BUNKERS
 COMMUNICATION DETAILS
SUMMARY
• LOF IS THE IDEAL CONTRACT AGREEMENT
• NO DELAY - NEGOTIATION SUPERFICIAL
• MOST WIDELY USED FORM IN THE WORLD
• PROTECTS SAFETY OF ENVIRONMENT
• “NO CURE NO PAY”
• ENCOURAGES SALVORS TO ASSIST IN ALL SITUATIONS
• COST EFFECTIVENESS
• ENVIRONMENTAL SALVAGE