loss of personal effects, repatriation and sometimes counseling. Careful attention to their welfare in the aftermath of a casualty will preserve crew loyalty and will mitigate the cost of claims. This is an area in which P&I insurers provide particularly valuable services.


Criminalization: This remains a live issue and one in which P&I insurers can make a material contribution. It is now routine for seafarers to be detained by the coastal state pending satisfactory arrangements for addressing claims arising from the casualty. Deliberate ill-treatment is rare, but seafarers and their families can pay a high price in uncertainty and associated stress. Beside practical assistance such as legal


representation and medical care, P&I Clubs can sometimes materially improve the situation of detained seafarers by establishing good, working relations with local authorities, addressing claims appropriately and placing reasonable security when required. The unparalleled flexibility of P&I indemnity insurance in responding to the infinite range of liabilities that can arise in the aftermath of a casualty is perhaps the P&I insurers’ greatest contribution to successful casualty management.


Bunker removal: In many marine casualties the coastal state will immediately issue an order requiring bunker removal, irrespective of the fact that removal can present more risks


than leaving bunkers on board, in properly designed spaces and with all facilities to keep them safe. If bunker removal is ordered for environmental protection rather than as a necessary part of salvage operations, the cost will generally be for P&I insurers. Careful liaison between P&I and Hull & Machinery insurers will ensure that the job is done economically and with minimum disruption to salvage operation.


SCOPIC: If the salvage is conducted under LOF, P&I insurers may be directly involved via the Special Compensation P&I Clause (SCOPIC) under which P&I insurers are potentially liable to compensate salvors in the event that the value of salved property is insufficient to reward them properly. Having been introduced in 1999, the SCOPIC Clause is still relatively new but it is working well and delivers many benefits, not least of which is greatly improved communications via the relationship between the salvage master and the special casualty representative.


Once the casualty has been stabilized and the immediate risks to life, property and the environment have been addressed, casualty management generally moves to address the claims arising.


The Report • December 2017 • Issue 82 | 41


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