ANATOMY OF SHIP, MANAGEMENT OF CLAIMS & UNDERWRITING

1. ANATOMY OF SHIP, MANAGEMENT OF CLAIMS & UNDERWRITING

2. AFTER GOOD BREAKFAST OR LUNCH YOU ARE AT LIBERTY TO SLEEP BUT DO NOT SNORE YOU MAY DISTURB YOUR NEIGHBOUR WHO IS ALSO SLEEPING AND YOU WILL ALSO DISTURB ME AS I AM IN HABIT OF SLEEPING DURING LONG PAUSE I TAKE DURING LECTURE LIKE OUR P.M

3. COFFERDAM BULKHEADS MAIN DECK HOLDS DOUBLE BOTTOM TANKS ENGINE ROOM FOREPEAK TANK TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

4. SUPERSTRUCTURE HATCHCOVERS CRANES TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

5. FORE PEAK RUDDER PROPELLER GEARBOX MAIN ENGINE TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

7. A.M.GAWARIKAR

8. TYPES OF SHIP FISHING VESSEL CABLE SHIP RESEARCH SHIP SHIPS WHICH KEEP THE SEA LANE OPEN DREDGERS SURVEY SHIP ICE BREKERS TUGS SHIPS WHICH CAN CARRY THINGS PASSENGER GENERAL CARGO TANKER DRY TIMBER SPECIALIST LONG DISTANCE UNIT LOAD BREAK BULK CONTAINER COMBINATION SHORT DISTANCE (Ferries) CRUDE CARRIERS REFINED PRODUCT CARRIERS CHEMICAL 0/ 0 BARGE CARRYING SHIP HOVER CRAFTS BEER OBO RO-RO INER GAS CARRIER WINE OCO HYDROFOILS LNG/ LPG

9. - Around 1900 passenger shipping was expanding / big vessels with many facilities- After 1960s due to airlines passenger ships declined.- Cruise ship arose due to demand of Holidays at sea. Ferries carry passengers,cars,coaches trucks on short haul routes around the coastlines.- Hovercraft has the mechanism which lift themselves above the water surface thus avoiding resistance of sea passage,it moves fast and gives smoother ride. ‘Hover’ means to remain poised over one spot but the craft operates by having air forced down beneath the craft.This causes it to rise up above the surface of the water and support it upon a cushion of air /fastest thing at sea. ACV- Air cushion vehicle recent term for hovercraft. - Hydrofoils work like the wings of an aircraft. Cargo Ships :-Liner - operates on fixed schedule. Tramp - unless chartered by liner company,dose not operate on fixed schedule Bulk carrier - range from small coastal craft to ships over 150000 tonner dead weight capacity.Different types of Bulk carriers Panamax - carry maximum cargo whilst transiting Panama canal Cape Size - Large gearless,when fully loaded unable to transit through Suez canal or Panama they via cape of Good Hope.

10. General cargo ship- Twindeckers, having compartments and tanks depending upon type of cargo. • Refrigerated Ship – • 1.with Insulators /refrigerating storage capacity for perishable cargoes like meat,fish,poultry,eggs,vegetables,fruits, dairy products. • 2.also known as Reefer ships. • Container Ship- ISO (International Standard Organisation)compliance • RO/RO ship - Roll on/Role off ships for short routes with self sustaining ability to load and discharge cargo itself • Tankers - Carry liquid cargo • Different types - Parcel Tanker,Acid carriers,Handy size Tankers, Panamax C, Medium size - very large(VLCC),ultra large(ULCC) -Crude carriers. • Combination carriers -O/O - Ore & oil • O/B/O - Ore, Bulk or Oil • PROBO - OBO with ability to carry • Petroleum Product such as gas oil

11. Gas Carriers - 1. LPG – Propane Butane propylene butylene unhydrous Ammonia. 2. LNG - Industrial / Domestic Flicks 3. TANKER FISHING VESSELS Deep Sea Fishing Trawlers Fish Factory Vessel - Fish catch is cleaned,Vessel & canned in the factory ship. Whale ship. Ships to catch whales. Cable ships - Laying off cable for communication (first cable ship -Great Easter in 1858) Dredgers - Bucket Dredgers - for digging material Grab Dredgers - employ Grab Crane to remove mud Dipper Dredgers Suction Dredgers- sand,soft/loose material removal. Rock Breaker Dregers Used for - 1) To develop and maintain greater water depth than naturally exists. 2) To raise the level of low land 3) To construct dams & dykes (wall to prevent flooding) 4) To recover subaqueous deposits. Tugs - Oceangoing and salvage coastal Harbour & River coastal

12. BASICALLY TWO TYPES OF COVERS ARE AVAILABLE - TIME - VOYAGE

13. HULL INSURANCE IN THE INDIAN MARKET • - HULL INSURANCE DEALS WITH RISKS RELATING TO • SMALLER OR BIGGER VESSELS. • - VARIOUS TYPES OF COVERS AVAILABLE FOR • PROTECTION OF SHIP OWNERS ARE AS UNDER : • A.HULL & MACHINERY INSURANCE • B. FREIGHT INSURANCE • C. DISBURSEMENT & INCREASED VALUE INSURANCE • D. PREMIUM REDUCING INSURANCE • E. PROTECTION & INDEMNITY LIABILITY INSURANCE • IN RESPECT OF COASTAL VESSELS • F. SHIP REPAIRES’ LIABILITY • G. TIME CHARTERER’S LIABILITY • H. BUILDER’S RISKS INSURANCE • I. LAST VOYAGE/FUNERAL VOYAGE • J. SHIP BREAKING INSURANCE • K. WAR RISK INSURANCE • L. S.R.C.C. INSURANCE • M. LOADING DISCHARGING OPERATION AT SEA. • N. BRACHES OF WARRANTIES • SINGLE VOYAGES • INSURERS ARE PROVIDED WITH GUIDELINE RATES.

14. RATES WERE PROVIDED IN THE SPECIFIC Guidlines INLAND VESSELS SAILING VESSELS FISHING VESSELS CHARTERERS’ LIABILITY SHIP REPAIRERS’ LIABILITIES BUILDER’S RISK INSURANCE

15. HULL UNDERWRITING CONSIDERATIONS SHIP DESCRIPTION TRADING AREA TRADING PATTERN SIZE OF FLEET CARGO CARRIED PAST EXPERIENCE OF MANAGEMENT CONDITIONS OF INSURANCE SIZE OF SHIP AGE AND INSURED VALUE DEDUCTIBLE ANY OTHER INFORMATION MATERIAL TO THE RISK CLASS AND FLAG ISM CODE GENERAL CONDITION CUM VALUATION CERTIFICATE BY COMPETENT MARINE HULL SURVEYOR DULY CATEGORISED BY IRDA AS ‘A’ SEAWORTHINESS BUILDERS’ CERTIFICATE CERTIFYING THE VALUATION & SUCCESSFUL TRIAL TRIP AGREEMENTS SUCH AS BBC etc.If any

16. RATING FACTORS TYPE OF VESSEL TANKER,DRY CARGO,PASSENGER BULK CARRIER,TUGS VALUE HIGHER THE VALUE - LOWER THE RATE LOWER THE VALUE - HIGHER THE RATE AGE LOWER THE AGE - LOWER THE RATE HIGHER THE AGE - HIGHER THE RATE

17. RATING FACTORS GROSS REGISTERED TONNAGE DEAD WEIGHT TONNAGE TRADING LIMITS CLASSIFICATION MANAGEMENT EXPERIENCE CONDITIONS OF COVER

18. TONNAGE • DISPLACEMENT :- This is the actual weight of the vessel measured by the weight in tones of water she displaces when loaded with the fuel,water,stores and with crew on board. • Gross Tonnage :- Measure of the total internal volume of the ship,with certain exception such as radio room,wheel house, chartroom etc. • Net Register Tonnage :- This represents the earning capacity of a merchant/passenger ship. It is a measure in tones of cubic capacity of the space which can be used for carrying passengers and cargo • Dead weight :- Total carrying capacity of the vessel including cargo, crew machine,passenger, stores,fuel, water when loaded down to the waterline level. • Water is 800 times as dense as air. It is buoyant fluid substance of water that supports the weight of a ship while allowing it to move.

19. CLASUES - HULL POLICIES ARE SUBJECT TO STANDARD CLAUSES PUBLISHED BY INSTITUTE OF LONDON UNDER- WRITERS - THERE CLAUSESARE DRAFTED BY LONDAN MARKET TECHNICAL & CLAUSES COMMITTEE. - ACCEPTED WORLD-WIDE PROVIDES TERMS, CONDITIONS, EXCLUSIONS, PERILS COVERED UNDER THE POLICY.

20. STANDARD CLAUSES • INSTITUTE TIME CLAUSES HULLS DT. 1-10-83. • - ALL OCEANGOING VESSELS ARE SUBJECT TO • THIS CLAUSES. • - PROVIDES COVER FOR 3/4TH COLLISION • LIABILITY. • - LAY-UP RETURN PROVISION • - REVISED 1-11-95 (NOT ACCEPTED.ALL OVER) • 2) INSTITUTE TIME CLAUSES HULL PORT RISK DT. 20-7-87. • - ALL INLAND VESSELS COVER ARE SUBJECT • TO THIS CLAUSE. • - PROVIDES COVER FOR 4/4TH COLLISION • LIABILITY AND P & I RISK’S • - NO LAY UP RETURN PROVISIONS

21. 3) INSTITUTE TIME CLAUSE - HULLS TOTAL LOSS - ONLY DT. 1.10.83 (INCLUDING SALVAGE,SALVAGE CHARGES AND SUE & LABOUR) APPLICABLE FOR TOTAL LOSS /RESTRICTED COVER. 4) INSTITUTE VOYAGE CLAUSE - HULL DT.1.10.83 - SINGLE VOYAGES 5) INSTITUTE VOYAGE CLAUSE - HULLS TLO DT.1.10.83 6) INSTITUTE TIME CLAUSES - DISBURSEMENT & IV (INCLUDING GA,SALVAGE ,SC, S & L, 3/4TH COLLISION LIABILITY) 7) INSTITUTE TIME CLAUSES - FREIGHT DT.1.10.83 8) INSTITUTE YACHT CLAUSES DT.1.11.85 SPEED BOATS, YACHTS ARE COVERED CRO SPEED WARRANTY- NOT TO EXCEED 17 KNOTS EXCLUDES USE FOR RACING,SPORT PURPOSE.

22. 9) INSTITUTE CLAUSES FOR BUILDER’S RISK DT.1.6.88 - VESSELS UNDER CONSTRUCTION - FAULTY DESIGN CLAUSE - COLLISION LIABILITY 10) SHIP REPAIRERS’ LIABILITY CLAUSE 11) CLASSIFICATION AND MAINTAINANCE OF CLASS CLAUSE - SPECIFIES 10 CLASSIFICATION SOCIETIES - COMPULSORY FOR ALL OCEANGOING VESSELS 12) HULL CLASSIFICATION CLAUSE APPLICABLE FOR OCEANGOING VESSELS ABOVE 15 YRS. OF AGE. 13) INSTITUTE RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE 1.10.90 - EXCLUDES ANY DAMAGE DUE TO RADIOACTIVE IONISATION NUCLEAR/ATOMIC WEAPONS/EXPLOSIVE ETC.

23. 14) ISM CODE WORDINGS - INTERNATIONAL SAFETY MANAGEMENT CODE GIVES THE RULES & REGULATIONS TO BE OBSERVED BY SHIPOWNER AT SEA FOR SAFTY/SAFE ADVENTURE 15) STRIKE,RIOT AND CIVIL COMMOTION CLAUSE HULLS - INLAND VESSEL & VESSELS PLYING IN INDIAN WATER 16) INSTITUTE WAR & STRIKES CLAUSE HULLS TIME DT.1.10.83 17) WAR CLAUSES UNDER GOVERNMENT WAR RISK SCHEME - PROVIDES TERMS CONDITIONS EXCLUSIONS ALONGWITH AREAS WHICH ARE EXCLUDED FOR TRADING 18) INSTITUTE WARRANTIES OCEANGOING VESSELS ARE COVERED WHILST TRADING WORLD WIDE WITH CERTAIN EXCLUSION SPECIFIED UNDER INSTITUTE WARRANTIES. 19) SPECIAL PREMIUM ADJUSTEMNT & /OR CONCELLATON CLAUSE

24. HULL CLAUSES & UNDERWRITING

25. INSTITUTE TIME CLAUSES LAUSE -- 6 • 6.1.1 PERILS OF THE SEAS RIVERS, OR OTHER NAVIGABLE WATERS.

26. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.2 FIRE, EXPLOSION

27. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.4 JETTISION

28. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.5 PIRACY

29. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.6 BREAKDOWN OF OR ACCIDENT TO NUCLER INSTALLATIONS OR REACTORS

30. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.7 CONTACT WITH AIRCRAFT OR SIMILAR OBJECTS,OR OBJECTS FALLING THEREFROM, • LAND CONVEYANCE, • DOCK OR HARBOUR EQUIPMENT, • INSTALLATION. A.M.GAWARIKAR

31. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.1.8 EARTHQUAKE OR VOLCANIC ERUPTION OR LIGHTNING.

33. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.2.1 ACCIDENTS IN LOADING DISCHARGING OR SHIFTING CARGO OR FUEL.

34. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.2.2 BURSTING OF BOILERS BREAKAGE OF SHAFTS OR ANY LATENT DEFECT IN THE MACHINERY OR HULL. A.M.GAWARIKAR

35. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.2.3 NEGLIGENCE OF MASTER,OFFICERS, CREWS OR PILOTS

36. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.2.4 NEGLIGENCE OF REPAIRERS AND CHARTERERS PROVIDED THEY ARE NOT ASSURED. A.M.GAWARIKAR

37. INSTITUTE TIME CLAUSES CLAUSE -- 6 • 6.2.5 BARRATARY OF MASTER OFFICERS OR CREWS.

38. SEAWORTHINESS FOR VOYAGE POLICY IMPLIED WARRANTY At the commencement of the risk,the vessel be reasonably fit to encounter the ordinary perils of the port. TIME POLICY There is no implied warranty that ship shall be seaworthy at any stage of adventure,but where with the privity of the assured, the ship is sent to sea in an unseaworthy state,the insurer is not liable for any loss attributable to unseaworthiness SEAWORTHINESS INCLUDES 1) Condition of Hull,machinery 2) The fulfilment of experts,master crew on board requirement as per MMD etc.

39. ENDORSEMENTS : ENDORSEMETS ARE PASSED FOR - - INSTALMENT PREMIUM - INCREASE / DECREASE IN S.I. - BREACH OF WARRANTY - CHANGES IN TRADING WARRANTY - TO INCLUDE NAMES OF LOSS PAYEE - TO COVER ADDITIONAL RISK OF P & I AS PER REQUIREMENT OF PORT AUTHORITY.

40. TYPES OF LOSSES GROUNDING STRANDING TOTAL LOSS COLLISION FIRE / EXPLOSION JETTISION THEFT BY VIOLANCE PIRACY MACHINERY DAMAGE FALL OF CARGO NEGLIGENCE OF CREW CONTACT W THAIRCRAFT,LAND CONV. DOCK HARBOUR BOILER BURSTING,BREAKAGE OF SHAFT NEGLIGENCE OF REPAIRER / CHARTERER BARRATARY OF MASTER OFFICERS AND CREW

41. PRELIMINARY REPORT AND ESTIMATE OF LOSS • PRELIMINARY REPORT SHOULD BE RECEIVED WHIN IN 15 DAYS. • NATURE OF DAMAGE ANALYSIS • CAUSE OF DAMAGE ANALYSIS • ESTIMATE OF LOSS. • THIS IS TIME YOU CAN APPOINT ANY OTHER SURVEYOR FOR FINAL SURVEY.

42. LOSS REPORT AND APPOINTMENT OF SURVEYOR • CHECK POLICY TERMS,TYPE OF LOSS AND AREA OF TRADING AND APPROXIMATE LOSS,DF • GENERAL AVERAGE G.A LIKE ,PARTICULAR AVERAGE • APPOINT PROPER SURVEYOR IF YOU HAVE NOT APPOINTED A.M.GAWARIKAR OF TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES.

43. MARINE HULL CLAIMS, PROCEDURE. 1. INTIMATION OF LOSS : INSURED SHOULD INFORM THE UNDERWRITING D.O./R.O. ABOUT THE LOSS IMMEDIATELY AFTER ITS NOTIFICATION TO ENABLE THE UNDERWRITER TO APPOINT SURVEYOR. 2. THE CLAIMANT SHOULD BE ADVISED ENTIRELY WITHOUT PREJUDICE, TO TAKE ADEQUATE STEPS TO MINIMIZE THE LOSS. A LETTER SHOULD BE WRITTEN TO THE CLAIMANT, WITHOUT PREJUDICE TO CO-OPERATE WITH THE SURVEYORS IN ALL RESPECT. CLAIMS ARE GENERALLY PROCESSED BASED ON THE SURVEYORS FINDINGS AND THE RECOMMENDATIONS. REPAIR BILLS ARE REQUIRED TO BE CERTIFIED BY THE SURVEYOR. 3. THE CLAIMANT AS WELL AS UNDERWRITERS SHOULD VERIFY : I. WHETHER THE RELATIVE HULL POLICY IS IN

44. FORCE AS ON THE DATE OF THE LOSS. II. WHETHER THE POLICY COVERS THE SUBJECT VESSEL, AND THE APPROPRIATE COVER IS AVAILABLE UNDER THE POLICY. (e.g. IF THE COVER GIVEN IS TOTAL LOSS ONLY, NO PARTIAL LOSSES WILL BE COVERED UNDER THE POLICY.) III. WHETHER TRADING WARRANTY IS BREACHED OR NOT. IV. WHETHER ALL CERTIFICATES ARE VALID. IF THE VESSEL IS CLASS, WHETHER THE CLASS IS MAINTAINED OR NOT. WHETHER ISM CODE IS MAINTAINED. 4. TYPES OF CLAIMS WHICH OCCUR IN CONNETION WITH HULL INSURANCE ARE : I. TOTAL LOSS/CONSTRUCTIVE TOTAL LOSS. II. PARTIAL LOSS III. SALVAGE CHARGES - EITHER SALVAGE

45. UNDER CONTRACT.OR SALVAGE AWARDS. IV. GENERAL AVERAGE. V. COLLISION LIABILITY. VI. SUE AND LABOUR CHARGES. VII. T.P. LIABILITY CLAIMS FALLING UNDER P & I SECTION OF THE POLICY. VIII. PERSONAL ACCIDENT CLAIMS. 5. IN CASE OF TOTAL LOSS CLAIMS APART FROM THE INVESTIGATORS REPORT CANCELLATION OF REGISTRY CERTIFICATE IS REQUIRED TO BE SUBMITTED. 6. IN CASE OF C.T.L. THE INSURED GIVES NOTICE OF ABANDONMENT TO THE INSURER, WHICH INSURER MUST REFUSE TO ACCEPT. 7. THE OCEAN GOING VESSEL CLAIMS, ARE GENERALLY REFERRED TO THE AVERAGE ADJUSTER BY THE INSURED. AVERAGE ADJUSTERS ARE

46. ADJUSTING THE CLAIMS AS PER THE TERMS CONDITIONS OF THE POLICY AND ACCORDINGLY RECOMMEND THE CLAIM FOR PAYMENT. 8. COLLISION CLAIMS OF OCEAN GOING VESSELS ARE REFERRED TO THE P & I CLUB OF THE VESSEL. THE CLUBS ARRANGES FOR THE SECURITIES AS DEMANDED BY THE OPPONENT VESSEL OR ITS P & I CLUB. UNDERWRITER HAS TO ARRANGE FOR THE COUNTER SECURITY FOR 3/4th RDC AS PER THE ITC HULLS CLAUSES.THE INSURED HAS TO GIVE COUNTER SECURITY TO THE UNDERWRITER FOR THE 3/4TH SECURITY,WHICH IS ARRANGED BY THE UNDERWRITER. COLLISION CLAIMS ARE SETTLED AS PER THE DECISION OF THE COURT, OR IF MUTUALLY AGREED, OUT OF COURT SETTLEMENT IS ALSO MADE. 9. GROUNDING CLAIMS : TO SALVAGE THE VESSEL, SALVERS ARE APPOINTED BY CALLING TENDERS BY THE OWNERS WITH THE ASSISTANCE OF THE SURVEYOR.

47. 10. IN CASE OF OCEAN GOING VESSELS, SALVERS ENTER • INTO AGREEMENT ON “NO CURE NO PAY” BASIS. • THEIR REMUNERATION IS AGREED BY CONTRACT OR • BY ARBITRATOR. • 11. BEFORE SETTLEMENT OF THE CLAIM NO OBJECTION • CERTIFICATE OF THE ASSIGNEE IS TO BE OBTAINED. • BASED ON SURVORS’, & ADJUSTER’S REPORT • NOTE IS PUT UP BY THE CONCERNED OFFICE TO • PROPER SANCTIONING FINANCIL AUTHORITY.

48. OCEAN GOING VESSELS - GENERAL CARGO VESSEL - BULK CARRIERS - TANKERS - PRODUCT CARRIERS - LPG, LNG CARRIERS - EQUIPPED WITH INERT GAS SYSTEM - TUGS/ SUPPLY VESSELS - ANCHOR HANDLING TUG-CUM-SUPPLY VESSELS. REGISTRATION -MERCHANT SHIPPING ACT.1935 TRADING LIMITS : INSTITUTE WARRANTIES DT.01-070-76 COVERS : WIDER OR TOTAL LOSS ONLY. CONDITIONS : ITC HULLS DT.01-10-83 CLASS & ISM CODE COMPLIANCE. OCEAN GOING VESSELS GUIDELINES :As per IRDA Regulations.

49. OCEANGOING VESSELS ISSUED TO OWNERS OR BAREBOAT CHARTERS’ ONLY 1) RATING :- AS PER THE GUIDELINES PROVIDED BY TAC TO BE FINALISED BY HO TECHNICAL DEPT. 2) COMPULSARY CLASSIFICATION 3) INDIAN SHIPOWNERS CAN TAKE COVER IN INDIA. OR FOREIGN FLAG VESSELS WHERE INDIAN MANAGER/ BARE BOAT CHARTERS ARE INVOLVED ANY CHANGE IN CONDITION DURING CURRENCY OF POLICY INCLUDING DEDUCTIBLE WILL CEASE THE POLICY. POLICIES CAN BE ASSIGNED TO THE FINANCERS BY OWNERS.

50. LAY UP RETURNS PROVISION FOR POLICIES ISSUED UNDER ITC HULLS 1.10.83 CONDITION CAN OPT FOR CRO WHERE BY DISCOUNT IN THE RATES IS GRANTED DEPENDING UPON CATEGORY OF THE FLEET CATEGORY CRO DISC. ON ANNUAL RATE SINGLETON 4.5% 1 4.0% 2 3.5% 3 2.5% 4 1.5% 5 1.5% ALL VESSELS UNDER FLEET SHOULD BE COVER FOR CRO PREMIUM CAN BE PAID IN FOUR EQUAL INSTALMENTS ON OR BEFORE DUE DATES SEAWORTHINESS TO BE ADMITTED