ANATOMY OF SHIP, MANAGEMENT OF CLAIMS & UNDERWRITING

1
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

2
 COFFERDAM
BULKHEADS
MAIN DECK

HOLDS

ENGINE ROOM DOUBLE BOTTOM TANKS

FOREPEAK TANK

TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

3
SUPERSTRUCTURE HATCHCOVERS CRANES

TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

4
 FORE PEAK
RUDDER PROPELLER GEARBOX MAIN ENGINE

TRANSOCEAN MARINE AND GENERAL SURVEY AGENCIES

5
6
A.M.GAWARIKAR 7
 TYPES OF SHIP

FISHING CABLE RESEARCH SHIPS WHICH

VESSEL SHIP SHIP KEEP THE SEA
LANE OPEN

DREDGERS SURVEY ICE BREKERS TUGS

SHIP
SHIPS WHICH CAN CARRY THINGS

PASSENGER GENERAL CARGO

TANKER DRY TIMBER SPECIALIST
LONG DISTANCE UNIT LOAD BREAK BULK
SHORT DISTANCE CONTAINER COMBINATION
CRUDE CARRIERS CHEMICAL
(Ferries) REFINED PRODUCT
BARGE CARRYING 0/ 0
SHIP CARRIERS BEER
HOVER CRAFTS OBO
RO-RO INER GAS WINE
HYDROFOILS OCO
CARRIER LNG/ LPG
- 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.
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
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
BASICALLY TWO TYPES OF COVERS ARE AVAILABLE

- TIME

- VOYAGE
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 CHARTERERS LIABILITY
H. BUILDERS 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
O. SINGLE VOYAGES
INSURERS ARE PROVIDED WITH GUIDELINE RATES.
RATES WERE PROVIDED IN THE SPECIFIC Guidlines

INLAND VESSELS

SAILING VESSELS

FISHING VESSELS

CHARTERERS LIABILITY

SHIP REPAIRERS LIABILITIES

BUILDERS RISK INSURANCE

 HULL UNDERWRITING CONSIDERATIONS

SHIP DESCRIPTION TRADING AREA

TRADING PATTERN SIZE OF FLEET
CARGO CARRIED PAST EXPERIENCE OF MANAGEMENT

SIZE OF SHIP CONDITIONS OF INSURANCE

AGE AND INSURED VALUE DEDUCTIBLE

CLASS AND FLAG ANY OTHER INFORMATION

MATERIAL TO THE RISK
ISM CODE
GENERAL CONDITION CUM
SEAWORTHINESS VALUATION CERTIFICATE BY
COMPETENT MARINE HULL
BUILDERS CERTIFICATE SURVEYOR DULY CATEGORISED
CERTIFYING THE VALUATION BY IRDA AS A
& SUCCESSFUL TRIAL TRIP
AGREEMENTS SUCH AS BBC etc.If any
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

RATING FACTORS

GROSS REGISTERED TONNAGE

DEAD WEIGHT TONNAGE

TRADING LIMITS

CLASSIFICATION

MANAGEMENT EXPERIENCE

CONDITIONS OF COVER
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.
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.
STANDARD CLAUSES
1) 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 RISKS
- NO LAY UP RETURN PROVISIONS
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.
9) INSTITUTE CLAUSES FOR BUILDERS 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.
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
HULL CLAUSES & UNDERWRITING

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INSTITUTE TIME CLAUSES LAUSE -- 6

6.1.1 PERILS OF THE SEAS RIVERS, OR OTHER

NAVIGABLE WATERS.

25
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.2 FIRE, EXPLOSION

26
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.4 JETTISION

27
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.5 PIRACY

28
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.6 BREAKDOWN OF OR ACCIDENT TO NUCLER

INSTALLATIONS OR REACTORS

29
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 30
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.1.8 EARTHQUAKE OR VOLCANIC ERUPTION OR LIGHTNING.

31
32
 INSTITUTE TIME CLAUSES CLAUSE -- 6

6.2.1 ACCIDENTS IN LOADING

DISCHARGING OR SHIFTING
CARGO OR FUEL.

33
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 34
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.2.3 NEGLIGENCE OF MASTER,OFFICERS, CREWS OR PILOTS

35
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.2.4 NEGLIGENCE OF REPAIRERS AND CHARTERERS PROVIDED THEY ARE

NOT ASSURED.

A.M.GAWARIKAR 36
INSTITUTE TIME CLAUSES CLAUSE -- 6

6.2.5 BARRATARY OF MASTER OFFICERS OR CREWS.

37
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.
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.
 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

40
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.

41
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.

42
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
 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
 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
 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.
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.

12. BASED ON SURVORS, & ADJUSTERS REPORT

NOTE IS PUT UP BY THE CONCERNED OFFICE TO
PROPER SANCTIONING FINANCIL AUTHORITY.
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.
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.
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
ITC HULL 1.10.83 PROVIDES th COLLISINONLIABILITY

TH LIABILITY CAN BE COVERED WITH P & I CLUB.

NO COVER FOR OUTBOARD ENGINE FITTED TO SHIP.

MINIMUM RATE TL + 0.01% TOWARDS OTL COMPONENT

RATING OF SUBSIDIARY INTEREST

1) SHOULD NOT BE HIGHER THAN H & M RATE

RISK RATE

FREIGHT TL TO BE LOADED BY 20%

min 0.10% + 10%(min.0.05%)
DISBURSEMENT & IV TL + 10% min 0.05%
PREMIUM REDUCING 80% OF TL
GA DISBURSEMENT 50% OF H & M RATE.
Maximum Deductible
1) Vessel not above 20 yrs. in age Final amount should
not be more than 3% of
H & M Sum Insured

2) Vessels above 20 yrs.in age Final amount should

not be more than 3.75%
of H & M Sum Insured
TRADING WARRANTIES
All attachments /aquisition shall be covered subject to any one of the
following trading warranties
OCEANGOING VESELS
A) Warranted vessel plying only within a port limits of (name of the port with
leave to proceed not beyond 12 N.M. from prominent point of the harbour/
port as designated by Port Authorities/custom or local Authorities
 RENEWAL RATING

- FIVE YEARS PREMIUM /CLAIM STATISTICS

- MAJOR CASUALTY DEDUCTION FOR CUMULATIVE

INCREASE OF 20% OR MORE

- PENALTY/ REDUCTION AS PER GRAPH PROVIDED

-TOTAL CLAIM = CLAIM RATIO

TOTAL PREIMUM

- PENALTY FOR CLAIM RATIOS MORE THAN 40%

- REDUCTION FOR CLAIM RATIO LESS THAN 20%

WITHOUT EXCLUDING MAJOR CASUALTY DEDUCTION.
COMMERCIAL MANAGEMENT

54
 MANAGEMENT OF SHIP

OWNERS AND OR MANAGERS

TECHNICAL SHIP MANAGEMENT
NEW CONSTRUCTION
SURVEY AND MANAGEMENT
OPERATIONAL MANAGEMENT
COMMERCIAL MANAGEMENT
DRY DOCKING
SALE AND PURCHASE OF SHIP

MASTER CHIEF ENGINEER G P CREWS

CHIEF MATE 2ND ENGINEER ENGINE CREW
2ND OFFICER WATCH KEEPING ENGINEERS
WATCH KEEPING OFFICERS

55
NEW CONSTRUCTION

A.M.GAWARIKAR 56
DRY DOCKING

A.M.GAWARIKAR 57
BUILDERS RISKS INSURANCE

SCOPE : ALL VESSELS - MECHANISED OR NON

MECHANISED IRRESPECTIVE OF VALUE
WHILSTUNDER CONSTRUCTIONS ARE
COVERED.
ASSURED : COVER IS THEREFORE REQUESTEDBY
THE SHIP BUILDER FOR THE RISKS WHILST
THE VESSEL IS UNDER CONSTRUCTION.
PERIOD : RISK IS COVERED FROM THE DATE OF
LAYING KEEL,UNTIL COMPLETION OF THE
CONSTRUCTION AND HANDING OVER THE
VESSEL TO THE OWNER.
COVER THEREFORE ALSO INCLUDES :
TRIAL TRIPS,LAUNCHING AND DELIVERY
VOYAGE (UPTO 250 N.M.NO ADDITIONAL
PREMIUM.)
SUM INSURED : FULL CONTRACT VALUE OR FULL
COMPLETED VALUE WHICHEVER IS
GREATER.

COVER : SUBJECT TO INSTITUTE BUILDERS

RISKS CLAUSES DATED 01-06-88.

PREMIUM : AS PER TARIFF FOR BUILDERS RISKS

INSURANCE EFFECTIVE FROM 10-06-86

NOTE : PROPOSAL FORM IS THE BASIS OF

UNDERWRITING.
BUILDERS RISK TARIFF
1) BASIS OF RATING :
a) FULL CONTRACT VALUE OR FULL COMPLETED VALUE
WHICHEVER IS GREATER.
B) PERIOD OF CONSTRUCTION - FROM INCEPTION OF ANY
WORK IN THE YARD UNTIL FINAL DELIVERY.
2) CATEGORY :
A : BARGES ETC.WITHOUT MAIN PROPELLING
MACHINERY
RATE : 0.35% + 0.035% PER MONTH OR PART.
B: CONVENTONAL VESSELS
RATE : 0.45% + 0.045% PER MONTH OR PART.
C : CONTAINERS,SHIPS HAVING REFRIGERATING
CAPACITY,WOODEN ,FIBER GLASS
RATE : 0.55% + 0.055% PER MONTH FOR FIRST 12 MONTHS.
0.065% P.M. NEXT 12 MONTHS.
0.075% P.M. THEREAFTER
.
 D : WARSHIPS, LGC ETC.
RATE : TO BE REFERRED TO TAC.

THE ABOVE RATES INCLUSIVE OF SRCC RISKS.

3) YARD DISCOUNT - FOR GOOD CLAIM RECORD.

4) LOADING FOR ADVERSE CLAIM RECORD.
5) OWNERS DISCOUNT - 15%
INSTITUTE CLAUSES FOR BUILDERS RISK DT.01.06.88

PERILS : 1) THE INSURANCE IS AGAINST ALL RISKS OF

LOSS OR DAMAGE TO THE SUBJECT MATTER
DURING THE PERIOD INCLUDING THE COST
OF REPAIRING, REPLACING ANY DEFECTIVE
PART SOLELY IN CONSEQUENCE OF THE
DISCOVERY OF A LATENT DEFECT.

2) IN CASE OF FAILURE TO LAUNCH,

UNDERWRITER HAS TO BEAR SUBSEQUENT
EXP.

OTHER : 1) POLLUTION HAZARD : LOSS DUE TO &

CAUSED BY ANY GOVT.AUTHORITY TO
PREVENT POLLUTION HAZARD OR THREAT
THEREOF.
 2) FAULTY DESIGN : LOSS ARISING FROM FAULTY
DESIGN - BUT NO COVER TO REPLACE SUCH FAULTY
PART.
3) COLLISION LIABILITY.
4) PROTECTION AND INDEMNITY
a) LOSS OR DAMAGE TO ANY FIXED OR MOVABLE
OBJECT
b) LOSS OF LIFE PERSONAL INJURY ILLNESS.
c) ANY EXPENCES OF REMOVAL OF THE WRECK OF
THE VESSEL.
d) LEGAL COSTS.
5) SUE & LABOUR CHARGES
- EXPENCES INCURRED TO MINIMISE THE LOSS OR
TO AVOID THE LOSS.
EXCLUSION :
WAR RISKS
NUCLEAR WEAPONS.
INFORMATION TO BE COLLECTED BY WAY OF
COMPLETED PROPOSAL FORM
1) NAME & ADDRESS OF THE BUILDER
2) CONSTRUCTION YARD NUMBER
3) PALCE OF CONSTRUCTION
4) CONTRACT VALUE - HULL Rs.
Or COMPLETED VALUE - MACH : Rs.
5) TYPE OF VESSEL - STEEL, WOODEN ETC.
6) CLASSIFICATION, GRT,DIAMENSIONS ETC.
7) DATE OF LAYING OF KEEL
8) PROBABLE DATE OF COMPLETION
9) PROBABLE DATE OF ARRIVAL OF FIRST ITEM OF
MACHIERY.
6) INSTALMENT FACILITY :
i) ON QUARTERLY BASIS - WILL BE GRANTED ii)ONLY
WHEN THE PERIOD OF CONSTRUCTION IS OVER 12 MONTHS.
iii) FIRST INSTALMENT WILL BE 5% MORE THAN THE REST.
7) DELIVERY VOYAGE UPTO 250 N.M.ON OWN POWER IS
COVERD WITHOUT ADDITIONAL PREMIUM.
- BEYOND 250 N.M.ADDITIONAL PREMIUM TO BE
CHARGED AS PER APPLICABEL TARIFF.

8) POLICY INCLUDES DURATION CLAUSE.

9) DEDUCTIBLE :

POLICY SUBJECT TO DEDUCTIBLE 0.05% OF PROVISONAL

CONTRACT VALUE WITH MINIMUM RS. 1,500/- &
MAXIMUM Rs.6,00,000/-

TO BE ROUNDED TO NEAREST Rs.100/-

FISHING VESSELS /TRAWLERS
Tariff is applicable for all fishing vessels/Trawlers mechanized / non-
mechanized upto Rs.100,00,000/-
Cover is subject to one of the condition given in tariff.
No cover for IFVC (Additional perils) clause 347 dt.20.7.87
No separate Insurance cover for Bunkers & spares. However,
cost of Bunkers & spares can be included in H & M Sum Insured.
No cover for Fish Catch on board Fishing Vesel/Trawlers
Cover for laid up can be granted.
Widest cover available is Institute Fishing Vessel clauses dt.20.7.87
No separate cover for fishing nets alone under Hull dept.
Nets are covered alongwith the vessels subject to IFVC
Valuation of net is to be ascertained at inception.
Minimum premium Rs.1000/-
Short period cover
a) more than 3 months less than 12 months
b) 1/8 of the Annual rate to be charged.
- Fleet discount 10% for 10 or more fishing vessel of single owner
- Owners discount /Agency commission shall be granted thereafter.
- Not more than 15%
- Policy should show aggregate value of Hull,Machinery &Accessories
together.
- Value for Fishing net to be shown seperately
- All the rates are subject to cancellation returns only (CRO)

- SRCC
Restricted conditions i.e. IFVC dt.20.7.87
TL/OTL only including Salvage ,SC.S & L) 0.05%
Wider conditions
i.e. IFVC dt.20.7.87 0.10%
MID TERM COVER for SRCC is granted subject ot short period rate of 1/8th
of annual rate p.m. or part thereof
- min 0.025% for restricted cover
- max 0.05% for wider cover
- Cover shall commence 15 days after the receipt of the premium
CONDITIONS OF INSURANCE

1) IFVC dated 20.7.87 but limited to pay only TL/CTL (including

salvage,salvage charges Sue & Labour), CRO
2) IFVC dated 20.7.87 with clause 20 (P & I risks) deleted, CRO
3) IFVC dated 20.7.87, CRO
- subject to
No breach of local port regulations regarding sailing
Trading warranties
- 6 Tones for trading
-Warranted vessel engaged in fishing operation connected therewith on
1) Coast of Gujarat,Maharashtra & Goa with leave to proceed upto Karwar
Not beyond 50 nautical miles into the sea from shore.

- Warranted vessel laid up to from 15th June to 15th August (B.D.I)

with leave to operate on coasts of Saurashtra and Kutch during this
period.
2) Coasts of karnataka,Kerala and West & South coasts of Tamil Nadu
upto and including Gulf of Mannar
- laid up 1st June to 15th Aug.(B.D.I)
3) coast of Andhra Pradesh and Tamil Nadu including Pondichery)
upto and including Palk Strait & Palk Bery
- laid up from 1st Nov.5o 31st January (B.D.I)
4) Coast of Orissa & West Bengal
- laid up from 1st May to 30th Sept.(BDI)
5) Coast of Andaman & Nicobar Islands coast of Andaman to Nicobar
& vice versa
- laid up for 15th May to 15th Nov.(BDI)
6) Coasts of islands constituing Lakshadweep & not to proceed beyond
20 N.M.into sea from shore with leave to proceed from one island to
another island forming port of lakshadweep
laid up 15th May to 15th Nov.(BDI)
For employment beyond 50 N.M. upto 100N.M subject to Additional
premium & certification by competent authority.
- Separate Trading warranty for Deep Sea Fishing Vessels /Trawlers.
Warranted vessel employed for fishing

a) On the East & West coast of India but not to proceed beyond
300 N.M. into the sea from shore.

b) On the coast of Lakshadweep Islands but not to proceed beyond

300 N.M.

c) On the coast of Andaman & Nicobar islands but not to proceed

beyond 300 N.M.into the sea from the shore.

All voyages between a,b,c, are covered without any A.P.but no

fishing whist passing from one zone to another.
ADDITIONAL COVERS
1) EXTENDED TRADING - RS.2000 PER ZONE
2) FOR FV.PLYING BEYOND H &.M rate loaded by
100 N.M.UPTO 300 N.M 0.10%
3) DEEP SEA TRADING IN A.P. RS.10000
ALL ZONES
A.P FOR
WAIVER OF MONSOON LAY-UP WARRANTY TO BE OPTED
AT THE INCEPTION OF COVER
FOR FISHING VESSELS WITH S.I. UPTO RS.10 LAKHS
1) ONE ZONE 1.5% OF H & M S.I.
2) MORE THAN ONE ZONE
ON THE SAME COAST 2.5% OF H & M S.I.
3) FOR MORE THAN ONE
COAST INCLUDING
ANDAMAN & NICOBAR
AND LAKSHADWEEP 3% OF H & M S.I.
(ABOVE RS.20 LACS AND UPTO RS.100 LACS)
FISHING VESSEL
(WIDER CONDITIONS)

ATTACHING TO AND FORMING PART OF POLICY NO.____

A/C. M/S._____________________________________________

SUBJECT TO INSTITUTE FISHING VESSEL CLAUSES

DATED 20-07-87 AS ATTACHED.

SUBJECT TO CANCELATION RETURNS ONLY.NO REFUND

OF PREMIUM IS PAYABLE IN THE EVENT THE VESSEL IS
LAID UP IN PORT OR ON HARD DURING THE CURRENCY
OF INSURANCE.

SUBJECT TO DEDUCTIBLE OF 0.50% OF S.I. EACH CLAIM

(OTHER THAN TL AND CTL) EACH ACCIDENT OR
OCCURRENCE. OR 10% OF ASSESSED LOSS WHICHEVER
IS HIGHER.
SUBJECT TO ADDITIONAL DEDUCTIBLE OF 10% OF THE
ASSESSED LOSS UNDER CLAUSE NO.13.

SUBJECT TO INSTITUTE RADIOACTIVE CONTAMINATION

EXCLUSION CLAUSE CL.356 (01-10-90)

SUBJECT TO ELEC.DATE RECOGNITION ENDT.

EXTENSION :

(a) INCLUDING S.R.C.C RISKS AS PER STRIKE CLAUSES.

TRADING WARRANTY :- TO INDICATE

SUBJECT TO NO BREACH OF LOCAL PORT REGULATION
REGARDING SAILING.
Thank you