INSIGHTS
COLLISION LIABILITIES SPLIT BETWEEN HULL AND P&I INSURERS
As stated, we have considered this subject in the context of a hull insurance policy that responds for 100% of collision liability. However, it should be remembered that, in its unamended form, the Institute Time Clauses (1.10.83) only cover 3/4ths of that liability, the remaining 1/4th usually residing with the vessel’s P&I club. In such a situation, care should be taken to ensure that the club and hull insurers are kept together throughout the process, and whichever party takes the lead role, they should be encouraged to seek the other party’s approval at all key decision-making stages.
THE ROLE OF MARSH’S CLAIMS ADVOCACY
The highly experienced Marine Claims Advocacy team at Marsh assists clients in navigating through the dangers presented by these often difficult claims. Once we have been notified, we will appoint a claims advocate who will act as a single point of contact for our client, overseeing the claim to its conclusion. Among other things, the advocate will:
• Review the performance of third-party service providers, such as surveyors appointed by insurers, and ensure that the content they deliver is appropriate and within remit.
The information contained herein is based on sources we believe reliable and should be understood to be general risk management and insurance information only. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.
In the United Kingdom, Marsh Ltd is authorised and regulated by the Financial Conduct Authority.
Marsh Ltd, trading as Marsh Ireland is authorised by the Financial Conduct Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Copyright © 2017 Marsh Ltd. All rights reserved. GRAPHICS NO. 17-0636
• Intercede early on issues that could de-rail strategy, such as facilitating early agreement between insurers and clients on appropriate legal representation.
• Provide detailed advice on options for arranging security to an opponent. This will include the management of information needed by a third-party surety company, if that is the most realistic method of arranging acceptable collision guarantees on the assured’s behalf.
• Ensure full engagement by collision liability insurers at all key stages. Efficient decision making offers the best chance of proactively managing the assured’s best interests.
• Maintain lines of communication between all client acting parties. This includes management of dialogue between hull and P&I insurers in circumstances where the insurance for collision liabilities is pooled.
• Be alert to the needs of our client’s business. In the early stages of a collision incident, this means the urgent repair of the vessel and/or continuance of the intended voyage, with the minimum of inconvenience and financial loss arising from avoidable delay.
Q3 2017
DISCLAIMER AND FINAL WORD
This is a general guide only and the example given is fictional. As such, it describes a very particular circumstance in the broad field of a technically difficult subject. The content is not meant to be used as generic advice for all collision claims. Each instance involving ship versus ship collision will have its own distinct characteristics, and clients will need to take advice based on those particular aspects. Marsh is not authorised to provide legal views and nothing within this communication should be taken as such. We would always recommend that on areas of law, clients should seek an appropriate legal opinion from a reputable and qualified source.
Further information: TONY MAYLE
Marine Claims Advocate
tony.mayle@
marsh.com +44 (0) 207 178 4389
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The Report • September 2017 • Issue 81 | 63
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