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Ship Repairers liability

The disruption caused by an accident in a shipyard can severely reduce cash flow and profit margins. Yards may also be liable under repair contracts for penalties for delayed repairs.

Our expert advice will help to minimise the effects of a casualty through the speedy presentation and settlement of insurance claims. We can offer advice to the shipyard, the broker and the insurer on all aspects of the claim.

Before a casualty

Our in-house engineers will perform a comprehensive pre-risk survey to highlight and encourage a claims free working environment. We can advise on the wording of insurance contracts and establish contingency plans.

After a casualty

We will investigate, in conjunction with professional advisers as necessary, the liability of the shipyard and advise on the potential liability of the insurers. We can analyse likely problem areas, recommend interim payments and adjust the claim in a clear format according to recognised principles, to ensure prompt settlement.

Our experience enables us to tailor our services to the requirements of an individual yard and the circumstances of a particular claim. We will gain a rapid understanding of a yard’s accounting and operational procedures and liaise closely with a yard’s insurance advisers.

Our job is to ensure that the inevitable disruption to the shipyard’s business resulting from a casualty is kept to an absolute minimum. Cash flow will be protected and management time saved.

Key Contacts

Richard Cornah
Chairman

Tel +44 151 235 5554
Mobile +44 7785 948 830
Email richard.cornah@rhl-ct.com

Oliver Hutchings
Managing Director, Marine

Tel +44 203 320 8885
Mobile +44 791 772 2761
Email oliver.hutchings@ctplc.com

Andrew Slade
Director – Head of Marine Hull, London

Tel +44 20 7398 5354
Mobile +44 7585 888 454
Email andrew.slade@ctplc.com

Amy O'Neill
Managing Director, Liverpool

Tel +44 151 235 5557
Mobile +44 7884 114 178
Email amy.o'neill@rhl-ct.com

Cory Chow
Deputy Managing Director, North Asia

Tel +852 2399 6138
Mobile HK: +852 92664409 China: +86 147-1440-6860
Email cory.chow@ctplc.com

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RHL News and Latest Publications

An adjusters’ note on the supreme court decision in “The Longchamp” 

This case involved a chemical tanker that was seized on 29 January 2009 by Somali pirates. A ransom demand of US$6 million was made by the pirates. After negotiation, a final ransom of US$1.85 million was agreed on 22 March 2009 and the vessel was released.

An adjusters’ note on substituted expenses and ransom payments – “The Longchamp”

The Court of Appeal has reversed the 2014 High Court judgement that crew wages and fuel consumed during lengthy ransom negotiations with Somali pirates could be allowed as general average under Rule F of the York Antwerp Rules. This article provides insight into both the High Court and Court of Appeal decisions, and clarifies the test for establishing an allowance under Rule F.

"Environmental liabilities in particular average - Part 2"
Situations in which pollution-related costs can be recovered in general average (GA) have been discussed in our previous article, "Environmental liabilities in general average - Part 1". We will now consider when the costs of cleaning up pollution in dry-dock may be  covered by particular average (PA).

"Environmental liabilities in general average - Part 1

The liability aspect of environmental costs falls traditionally within the ambit of P&I cover. However, there can be situations whereby such costs can be recovered as either general average (GA) or particular average (PA) from property insurers. This article will consider the topic from a GA point of view.

An adjuster's note on constructive total loss

This was a first instance trial in which the underwriters of the “Renos” attempted to defend a claim by the assured for constructive total loss of the vessel following significant damage caused by a fire in the engine room in Suez in August 2012. Notice of abandonment was tendered in February 2013. From an adjusting perspective, it raises some interesting points concerning which costs should be included in the assessment of a claim for constructive total loss. We also take the opportunity to note some of the differences in approach to claims for CTLs between the conditions commonly used in the market.

Insurance Act 2015/Enterprise Act 2016

Because the standard Institute Clauses provide that “This insurance is subject to English law and practice”, the first significant statutory changes under English law since the 1906 Marine Insurance Act are of general interest to insurers and assureds worldwide.

 

Click the link below to view further douments and publications from Richards Hogg Lindley.