D1 EXPENSES OF REMOVING A VESSEL FOR REPAIR
- For the purpose of ascertaining the reasonable cost of repairs, and subject to any express provisions in the policy, where a vessel is at any port place or location (hereinafter referred to as ‘port’) and is necessarily or reasonably removed to some other port for the purpose of repairs, either because the repairs cannot be effected at the first port, or cannot be effected prudently, the additional expenses reasonably incurred by the Shipowners in removing the vessel (other than any expenses allowable in general average) shall be treated as part of the reasonable cost of repairs.
- (a) Where the vessel after repairing forthwith returns to the port from which she was
removed, the expenses incurred both in removing the vessel to the port of repair and
in returning shall be treated as part of the expenses of removal.
(b) Where the vessel loads a new cargo at the port of repair or proceeds thence to some
other port for the same purpose, the expenses shall be calculated as though, but for the repairs, the vessel had previously been engaged to proceed direct from the port from which she was removed to the loading port.
(c) Where, immediately following a casualty, or upon completion of the voyage on which the casualty occurred, the vessel is removed solely to enable repairs to be effected
which are essential for continued trading, the expenses may, at the Owners’ option, be calculated only for the single passage to the repair port. - (a) The expenses of removal shall include, inter alia, the cost of any necessary temporary
repairs, wages and provisions of crew and/or runners, pilotage, towage, extra marine
insurance, port charges, bunkers and stores.
(b) Where by moving the vessel to or from the port of repair any new freight or hire is
earned, such net earnings shall be deducted from the expenses of removal. - The expenses of removing the vessel for repair shall be charged as follows:
(a) Where the vessel is removed to the port of repair as an immediate consequence of damage for the repair of which Underwriters are liable, or the vessel is necessarily taken out of service especially to effect repairs arising from that damage, the whole cost of
removal shall be treated as part of the cost of repairing that damage, notwithstanding
that the Shipowners may have taken advantage of the removal to carry out survey for
classification purposes or to effect other average repairs or repairs on their own
account.
However, where the vessel is removed for Owners’ purposes, other than a routine
overhaul as in 4(b) below, or as an immediate consequence of damage for which
Underwriters are not liable, no part of the cost of removal shall be charged to Underwriters, notwithstanding that repairs for which they are liable may be carried out
at the port of repair.
(b) Where the vessel is removed to the port of repair for routine overhaul at which repairs on both Owners’ and Underwriters’ accounts are effected, the expenses of removal shall be apportioned pro rata to the cost (including drydock dues and general services) of all work effected at the port, other than to any damage sustained after the commencement of the removal passage and the cost of any major parts shipped to the repair port from
elsewhere.
D5 DRY DOCK EXPENSES
- That, in practice, where repairs, for the cost of which Underwriters are liable, are necessarily effected in dry dock as an immediate consequence of the casualty, or the vessel is taken out of service especially to effect such repairs in dry dock, the cost of entering and leaving the dry dock, in addition to so much of the dock dues as is necessary for the repair of the damage, shall be chargeable in full to the Underwriters, notwithstanding that the Shipowners may have
taken advantage of the vessel being in dry dock to carry out survey for classification purposes or to effect repairs on their account which are not immediately necessary to make the vessel seaworthy. - (a) Where repairs on Owners’ account which are immediately necessary to make the vessel
seaworthy and which can only be effected in dry dock are executed concurrently with
other repairs, for the cost of which Underwriters are liable, and which also can only be
effected in dry dock, or
(b) Where the repairs, for the cost of which Underwriters are liable, are deferred until a
routine dry-docking and are then executed concurrently with repairs on Owners’
account which require the use of the dry dock, whether or not such Owners’ repairs
affect the seaworthiness of the vessel, the cost of entering and leaving the dry dock, in addition to so much of the dock dues as is common to both repairs, shall be divided equally between the Shipowners and the
Underwriters, irrespective of the fact that the repairs for which Underwriters are liable may relate to more than one accident or may be payable by more than one set of Underwriters. - Where necessary the sub-division between Underwriters of the proportion of dry-docking expenses chargeable to them shall be made on the basis of accidents.
D6 TANKERS – TREATMENT OF THE COST OF TANK CLEANING AND/OR GAS-FREEING
- That, in practice, where repairs, for the cost of which Underwriters are liable, require the tanks to be rough cleaned and/or gas-freed as an immediate consequence of the casualty, or the vessel is taken out of service especially to effect such repairs, the cost of such rough cleaning and/or gas-freeing shall be chargeable in full to the Underwriters, notwithstanding that the
Shipowners may have taken advantage of the vessel being rough cleaned and/or gas-freed to carry out survey for classification purposes or to effect repairs on their account which are not immediately necessary to make the vessel seaworthy. - (a) Where repairs on Owners’ account which are immediately necessary to make the vessel
seaworthy and which require the tanks being rough cleaned and/or gas-freed are
executed concurrently with other repairs, for the cost of which Underwriters are liable,
and which also require the tanks being rough cleaned and/or gas-freed, or
(b) Where the repairs, for the cost of which Underwriters are liable, are deferred until a
routine dry-docking or repair period, at which time repairs on Owners’ account which
also require the tanks being rough cleaned and/or gas-freed are effected, whether or
not such Owners’ repairs affect the seaworthiness of the vessel, the cost of such rough cleaning and/or gas-freeing as is common to both repairs shall be divided equally between the Shipowners and the Underwriters, irrespective of the fact that. the repairs for which Underwriters are liable may relate to more than one accident or may be
payable by more than one set of Underwriters. - The cost of fine cleaning specifically for a particular repair or particular repairs shall be divided in accordance with the principles set forth above.
- Where necessary the sub-division between Underwriters of the proportion of rough tank
cleaning and/or gas-freeing and/or fine cleaning chargeable to them shall be made on the basis of accidents.
D9 TEMPORARY GENERATOR HIRE
That in practice the hire of a temporary generator will be deemed to be analogous to a physical temporary repair and allowed in accordance with the same criteria. Any allowances are limited to the cost of installation and removal of the generator and hire charges and will not include any additional costs relating to consumption of fuel.
D8 SCRAPING AND PAINTING
Where the Policy includes a Clause to the effect that:
“No claim shall in any case be allowed in respect of scraping or painting the vessel’s
bottom”.
(a) Gritblasting and/or other surface preparation of new bottom plates ashore and supplying and applying any “shop” primer thereto
(b) Gritblasting and/or other surface preparation of:
i) the butts or area of plating immediately adjacent to any renewed or refitted plating
damaged during the course of welding and/or repairs
ii) areas of plating damaged during the course of fairing, either in place or ashore
(c) Supplying and applying the first coat of primer/anticorrosive to those particular areas mentioned in (a) and (b) above shall be allowed as part of the reasonable cost of repairs in respect of bottom plating damaged by an insured peril and shall be deemed not to be excluded by the wording of this Clause. The gritblasting and/or other surface preparation and the painting of all other areas of the bottom are excluded by the Clause
D10 LINER VESSELS
That, where a vessel is operating to a fixed and advertised schedule, the costs of temporary repairs and overtime that are reasonably incurred to maintain that schedule may be allowed to particular average without regard to savings to hull Underwriters.
B33 - Underwriters’ liability
- If the ship or cargo be insured for more than its sound market value, the underwriters pay what is assessed on the contributory value. But where insured for less than the sound market value, the underwriters pay on the insured value.
- That in practice, in applying the above rule for the purpose of ascertaining the liability of underwriters for contribution to general average and salvage charges, deduction shall be made from the insured value of all losses and charges for which underwriters are liable and which have been deducted in arriving at the contributory value.
- This rule does not apply to non English adjustments, when the basis of contribution is calculated on a basis other than the net value of the thing insured.
- In adjusting the liability of underwriters on freight for GA contribution and salvage charges, effect shall be given to S 73 of the MIA 1906, by comparing the gross and net amount of freight at risk with the insured value in the case of a valued policy, or the insurable value in the case of an unvalued policy.
E1 - Adjustment on bonded prices
In claims for damage to tea, tobacco, coffee, wine and spirits imported into the UK, it is customary to adjust PA on a comparison of bonded instead of duty paid prices.
E2 - Adjustment on average on goods sold in bond
That in consequence of the facilities generally offered to bond goods at their destination, on which terms they are often sold, the term ‘gross proceeds’ shall, for the purpose of adjustment, be taken to mean the price at which the goods are sold to the customer, after payment of freight and landing charges, but exclusive of customs duty, in cases where it is the custom of the port to sell or deal with the goods in bond.
E3 - Apportionment of insured value of goods
That where different qualities or descriptions of cargo are valued in the policy at a lump sum, such sum shall, for the purpose of adjusting claims, be apportioned on the invoice values where the invoice distinguishes the separate values of said different qualities or descriptions and over the net arrived sound values, in all other cases/
