Marine Insurance Act 1906.Marine Insurance Act 1906.

• Section 2.Section 2.

• Mixed Sea and Land Risks.Mixed Sea and Land Risks.

• A contract of Marine Insurance may, by itA contract of Marine Insurance may, by it’’s s express terms, or by usage of trade, be express terms, or by usage of trade, be extended so as to protect the assured extended so as to protect the assured against losses on inland waters or on any against losses on inland waters or on any land risk which may be incidental to any land risk which may be incidental to any sea voyage.sea voyage.

IntroductionIntroduction

• The role of IUMI and other international The role of IUMI and other international organisations.organisations.

• Some marine Global statistics.Some marine Global statistics.• The role of International Conventions in The role of International Conventions in

Liability Regimes.Liability Regimes.• Typical marine policy Covers.Typical marine policy Covers.• Major casualty issues ( Major casualty issues ( ““ Napoli / Rena / Napoli / Rena /

APL Panama APL Panama ””/ Costa Concordia/ Costa Concordia ). ).• General Average & Salvage.General Average & Salvage.

International Union of Marine International Union of Marine InsuranceInsurance

• Professional body run by itProfessional body run by it’’s marine s marine membership.membership.

• Communications platform.Communications platform.• Affiliate membership – Affiliate membership –

ICS,IGP,IACS,BIMCO,CMI,UNICS,IGP,IACS,BIMCO,CMI,UN• Technical Committees – Technical Committees – Cargo ,Ocean Hull, Cargo ,Ocean Hull,

IFY, Energy / Offshore, Facts & Figures, IFY, Energy / Offshore, Facts & Figures, Legal & Liability, Loss prevention Legal & Liability, Loss prevention

• www.iumi.comwww.iumi.com

Facts & Figures Facts & Figures IUMI San Diego IUMI San Diego 20122012

Global Marine Premium - 31.9 USD bn. Global Marine Premium - 31.9 USD bn.

(reported) – (reported) –

•Cargo - 54.0% Cargo - 54.0% (17.22 bn. )(17.22 bn. )

•Hull - 26.2% Hull - 26.2% ( 8.35 bn. )( 8.35 bn. )

•Energy / Offshore - 14.2% Energy / Offshore - 14.2% ( 4.52 bn. )( 4.52 bn. )

•Marine Liabilities - 5.7% Marine Liabilities - 5.7% ( 1.81 bn. )( 1.81 bn. )

•Total Estimated Global premium ? Total Estimated Global premium ?

Accumulations. Accumulations.

• 15,000 teu - ( 50k ) US$ 750,000,00015,000 teu - ( 50k ) US$ 750,000,000

• High Value 50,000,000High Value 50,000,000

• Hull Value 175,000,000Hull Value 175,000,000

• LOF 15%/ 20% 150,000,000LOF 15%/ 20% 150,000,000

• Total ( one vessel ) Total ( one vessel ) 1,125,000,0001,125,000,000

• Before GA, Wreck Removal, Collision Before GA, Wreck Removal, Collision Considerations, Legal Costs .Considerations, Legal Costs .

Cargo / Loss PreventionCargo / Loss Prevention

• Vessel vetting & Crisis management Vessel vetting & Crisis management plans.plans.

• Communications issues.Communications issues.

• Piracy.Piracy.

• Risks posed by overweight containers.Risks posed by overweight containers.

• New generation container vessels.New generation container vessels.

• Modern salvage challenges.Modern salvage challenges.

Ocean HullOcean Hull

• Development of technology on ships.Development of technology on ships.

• Accumulation factors.Accumulation factors.

• The growth in LNG.The growth in LNG.

• Nuclear powered vessels of the Nuclear powered vessels of the future.future.

Legal & Liability CommitteeLegal & Liability Committee

• Wreck removal issues / costs in the Wreck removal issues / costs in the Energy sector.Energy sector.

• Solid bulk cargo liquefaction issues.Solid bulk cargo liquefaction issues.

• Piracy / Armed guards on merchant Piracy / Armed guards on merchant ships / Governmental responses. ships / Governmental responses.

Institute Time Clauses Hull Institute Time Clauses Hull 1.11.951.11.95• Perils Clause 6.1 – Perils of the Perils Clause 6.1 – Perils of the

sea, Fire,, Explosion, sea, Fire,, Explosion, Earthquake, Piracy, Contact Earthquake, Piracy, Contact etc.etc.

• 6.2 - Crew Negligence, 6.2 - Crew Negligence, Repairers Negligence, Damage Repairers Negligence, Damage resulting from Latent Defect. resulting from Latent Defect. (absent any want of due (absent any want of due diligence ).diligence ).

• Pollution Hazard Clause 7. –Pollution Hazard Clause 7. –Damage to vessel from Damage to vessel from Governmental intervention on Governmental intervention on pollution.pollution.

• ¾ Collision Liability – Clause 8.¾ Collision Liability – Clause 8.

• Salvage & GA – Clause 10.Salvage & GA – Clause 10.

• Clause 8.4 – Exclusions on Clause 8.4 – Exclusions on H&M policy.H&M policy.

• Removal and / or disposal Removal and / or disposal of wreck or cargo.of wreck or cargo.

• ¼ Collision & Non Hull& ¼ Collision & Non Hull& Machinery ( Excess ) Machinery ( Excess ) collision Liabilities.collision Liabilities.

• Loss of Life / Personal Loss of Life / Personal Injury.Injury.

• Cargo on Insured Vessel.Cargo on Insured Vessel.

• Pollution Liabilities.Pollution Liabilities.

General AverageGeneral Average

• Definition.Definition.

• York Antwerp Rules.York Antwerp Rules.

• Who benefits from General Average ?Who benefits from General Average ?

• The role of the CMI.The role of the CMI.

• Do we still need General Average ?Do we still need General Average ?

SalvageSalvage

• The Salvage Convention.The Salvage Convention.

• Salvage contracts.Salvage contracts.

• Logistics.Logistics.

• The Emergency room for The Emergency room for Underwriters.Underwriters.

Costa Concordia Costa Concordia

Costa Concordia IssuesCosta Concordia Issues

• Logistics,Financial Securities, Arrest ?Logistics,Financial Securities, Arrest ?

• Liability,Athens Convention, Limitation, Liability,Athens Convention, Limitation,

• Covers H&M, P&I, Policy Limits,Wilful Covers H&M, P&I, Policy Limits,Wilful Misconduct ?Misconduct ?

• Salvage Contracts, Wreck Removal Salvage Contracts, Wreck Removal Costs,Costs,

• Environmental Pollution,Environmental Pollution,

• Criminal Law Ramifications ?Criminal Law Ramifications ?

Questions ?Questions ?

OrOr

eamonn@ocslegal.ieeamonn@ocslegal.ie