marine insurance/warranty bywarranty surveyors dubai

5/21/2018 marine insurance/warranty bywarranty surveyors dubai

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MARINE INSURANCE / WARRANTY

The Act

Principles

Warranties Common Findings

By :Capt Zarir Irani, MBA, DipMarSur, FICS, FIIMS, AFNI,National Association of Marine Surveyors - USA ( NAMS-CMS)

International Institute of Marine Surveying - UK (Regional Director-Middle East)

Call : +971 50 8979103

www.marinesurveyordubai.comwww.constellationms.com
http://www.marinesurveyordubai.com/http://www.constellationms.com/http://www.constellationms.com/http://www.marinesurveyordubai.com/


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The Policy

By :Capt Zarir Irani, MBA, DipMarSur, FICS, FIIMS, AFNI,

National Association of Marine Surveyors - USA ( NAMS-CMS)International Institute of Marine Surveying - UK (Regional Director-Middle East)

Call : +971 50 8979103 : Website: www.marinesurveyordubai.com


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The Marine Insurance

Act, 1906This act came into force on 1st January 1907.

It didntmake any new additions law but only

codified the existing legal decisions which hadbeen recorded up to that time.

Marine insurance contracts are based on the

principles laid down in this Act.



Call : +971 50 8979103 : WWW.marinesurveyordubai.com


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THE PRINCIPLES OF MARINE

INSURANCEFive basic principles of Marine Insurance

Insurable interest Utmost Good Faith *

Proximate Cause **

Indemnity Subrogation





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INSURANCEUtmost Good Faith:

All contracts of marine insurance are

contracts Uberrimae fidei i.e. of the utmostgood faith.

. and if the utmost good faith be notobserved by either party, the contract may be

voided by the other party.Marine Insurance Act 1906





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INSURANCEProximate Cause(orcausa proxima)is derived from the legal dictum causa

proxima non remota spectatur. This meansthat the proximate and not the remotecause to be considered. The Act providesthat the insurer is liable for any lossproximately caused by a peril insured

against.





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Policy terms.



Call : +971 50 8979103 : www.marinesurveyordubai.com

Ie: More than 50% crew outon shore leave and fire

breaks on board. - Or -Master intoxicated and itsproven negligence ofCommand

Failure of an insured to comply with a warranty, for whatever reason, may result in theunderwriter avoiding claims under the contract, which means the vessel is,in effect,uninsured as from the moment of the breach of warranty. As an example ,a term of astandard hull policy is that the insured must exercise due diligence in looking after hisvessel. If a claim is made for, say, damage to the vessel whilst laid up,and it was shownthat he neglected the vessel and did not maintain her, dependent on the circumstances,t hepolicy may be avoided and no claim paid.


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WarrantiesA warranty is a promise made by the assured that a

particular condition shall be fulfilled, or a particular thing

shall be done or otherwise, or confirm / negates thatexistence of a particular state of facts.

A warranty must be taken literally and must be exactlycomplied with by the assured. Any non compliance will lead

to a breach of warranty and the insurer will be dischargedfrom all liabilities under the policy from the date of such

breach.





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Warranties





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THE WARRANTY CLAUSES AND

THEIR MEANINGSWARRANTIES IN MARINE INSURANCE POLICIES

A warranty is the same as a conditionon any other type of insurance policy. It is anexpress or implied contractual undertaking by the assured (the individual taking out the policy)that something will or will not be done.

The assured undertakes that some particular thing shall or shall not be done or that somecondition shall be fulfilled or he affirms or negates the existence of a particular state of facts.

A warranty must be literally complied with, whether material to the risk or not.

An express warranty is written into the policy or contained in some document

incorporated in the policy by reference to it. Implied warranties are not written in the policy but are implied by law to exist

in the contract of insurance. They must be strictly complied with as express warranties.

www.constellationMS.com

- BY Capt. Zarir Irani, MIIMS- RD-Middle East


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THE WARRANTY CLAUSES.

They may have reference specialised procedures or guidelines to be followed bythe assured.

They may stipulate that the operation of the covered risk is always to be within

the context of an approved operations manual.

They may require that the operation be overseen by a named third party whoseprofessional competence and judgment is accepted by the underwriter as proofthat it was carried out or will be carried out to agreed standards.

They may require that the competent third party issue a CERTIFICATE OF APPROVAL prior to

the commencement of the operation in order for the insurance policy to become valid.

In addition the failure of the assured to abide by-the conditions of theCERTIFICATE OF APPROVAL may invalidate the contract of insurance.




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THE ROLE OF A WARRANTY SURVEY COMPANY

These companies provide consultancy services to the marine and offshore industries as

third parties (Constellation Marine being one of them) giving professional advice for

fees. Their business success relies on their unquestioned integrity, highprofessional standards and expertise.

Their business activities span both the insurance and marine industries and they vary

in size from quite small to very large and diverse companies.


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OVERVIEW OF TYPICAL PRECAUTIONERY WORK

On-Site Evaluation at Departure PortTug Approval SurveyBarge Survey

Cargo Securing InspectionOperational Survey

Jack-up Rig Move

The example is a three-leg jack-up drilling unit (barge). It is presently located at

position A where it is completing a workover on a platform and is to proceed toposition B, a distance of about 150 nautical miles, where it is to perform anexploration drilling operation in an open location.. The client is the owner ofthe barge.


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TUGS AND TOWING GEAR

Practical knowledge required Towing Vessel Requirement and Selection

CriteriaMinimum Towing ForceA well known warranty survey

company requires that:Sufficient towing power is available to hold the vessel being towed at zerospeed against the following conditions:

Wind speed 44 knotsCurrent speed 4 knotsSignificant wave height 25 feet

Determining the power of oilfield tugs


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SURVEYORS INSPECTION OF A TOWING VESSEL

Inspection of the Vessel

The Towing Gear

Ancilliary Gear Towing Machinery Working Deck Area At the Bow Mooring Ropes Machinery Spares Bridge Area


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- BY Capt. Zarir Irani, MIIMSRD- Middle East

Following faults are grounds for outright rejection of OSVs/tugs for service:

1. Insufficient fuel, food, water, lubricating oil.2. Main engine broken down, steering gear broken down, tow winch broken down.3. Main or spare tow wire unserviceable due to being outside standard criteria for use either due t

damage or under size or length.4. Any main certificates out of date (including survey range dates).5. Damaged/in-sufficient life saving firefighting equipment.Boat under-powered for service required. Does not meet bollard pull criteria. 8. Damaged and inoperativepower generation machinery leaving only one

generator.9. Hull damage to boat such that stability criteria is impaired.

10. Contaminated fuel such that engine reliability is doubtful.11. Tow Pennants, Towing Shackles, Towing Sprigs insufficient in number,

insufficient in strength terms or damaged so as to be unserviceable.12. Navigational equipment outfit including radar, gyro compass etc, inoperative or

damaged or insufficient such that accurate position fixing and navigation isunreasonably difficult.

13. Incompetence of the master and officers such that lack of knowledge oftowing and ship handling would imperil the operation.

SURVEYORS INSPECTION OF A TOWINGVESSEL

-PRECAUTIONS-


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SURVEYORS INSPECTION OF A TOWING VESSEL

The following areas are those where experience and judgement countmore than rigidguidelines or meeting precise criteria:

1. The true condition of tow wires, pennants, stretchers and all other towing running gear.

2. The true condition of main engines and towing winches and steering gear.3. The amounts of spare parts and tools/equipment for the repair of main engines and

auxiliary machinery. Class society spares are the minimum required.4. The knowledge and skill of the master, officers and crew.5. Defects which are borderline cases can be judged on deciding how they affect the

operation of the boat for the particular operation concerned and whether they can berectified or mitigated.

Charters (or) Operators are always in a desperate rush to get the vessel into the fields- Go to Reputable Operators


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WARRANTY SURVEYORS REPORT AND RECOMMENDATIONS EXTRACTS

Section Title Page No.1. Documentation 0002. Drilling derrick and blocks 0003. Securing of legs 000

4. Inspection required 0005. Helicopter deck 0006. Compartmentation 0007. Sounding pipes 0008. Pumping arrangements 0009. Openings in hull 00010. Anchors 00011Stowage of deck cranes 00012 Signalling equipment 00013 Navigation lights, sound signals and safety equipment 00014 Damage control equipment 00015 Additional recommendations 000


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Lastly - The term I most

often use is.UTMOST Good Faith:

Marine insurance contracts are Uberrimae Fidel Contracts orcontracts of Utmost Good Faith.

Hence, it is of very high importance for owners to have their vesselseaworthy at the start of the voyage.

To a lawyer sea worthiness is an absolute mine field, they are stilldiscovering this term as we speak..

any thoughts !By :Capt Zarir Irani, MBA, DipMarSur, FICS, FIIMS, AFNI,




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Thank You very muchBy :Capt Zarir Irani, MBA, DipMarSur, FICS, FIIMS, AFNI,


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