The Marine Insurance Blog

Skuld is a leading marine Protection and Indemnity (P&I) and Defence insurer based in Oslo. It provides mutual insurance cover to shipowners and charterers through its branches in Bergen, Copenhagen, Hamburg, Hong Kong, Moscow, New York, Piraeus and Singapore. As an association nearly 111 years old, it remains centered in Northern Europe and controlled by Scandinavian business, but expects to grow in Greece and Asia. Since the beginning of the 21st century, Skuld has gone through many changes, including a major restructuring, which have led to positive results: the current Standard & Poor’s rating is a very good A- (outlook stable). Named after the goddess of destiny representing the future in Norse mythology, Skuld is for the forward-looking merchant fleet.

The week is not even through, but several incidents involving seafaring vessels have been reported since Sunday the 8th. Lives have been lost, injuries sustained and losses incurred as a result of these cases, most of which could have been prevented. Among them are the sinking of an overloaded tour boat in Mexico, an attack on two vessels of a petroleum company in Nigeria, a cargo ship fire while in port in India, a diving boat that took on water in North Carolina, a sailboat that overturned in Texas, the sinking of a crab vessel in Canada, and a supply vessel fire in Singapore.

Underwriters are not obliged to make advance payments for repairs or pay contractors directly, except in special situations. They will compensate the boat owner for the costs of the loss to pre-accident conditions. However, the owner shoulders the costs in the first instance.

Whenever possible, contact the insurance company before accepting salvage services from another vessel. When this is not practicable, as in many cases, accept only if the offer appears reasonable and if the terms are clear. Otherwise, leave remuneration and binding contracts for later. Signing a Lloyd’s Open Form Salvage Agreement should only be a last resort.

After the claim form, estimates and Surveyor’s report are reviewed, the insurer will report to the Underwriters. You will then be advised of their response. Once the estimate is approved, you may proceed to repairs. The boat owner is responsible for arranging and paying for the recovery and repair of your boat, and checking the repair work. Further damage or delays are not covered by insurance. After the repairs are finished, the paid invoices should be submitted to the insurance company, after which the reimbursement will be arranged.

If a third party makes a claim against you, do not assume liability either verbally or on paper, or reach an agreement with the third party without seeking the approval of the insurer.

Image by gjofili

Even if your boat is insured, you as an owner have the responsibility of securing your property. In the event of an accident or damage, boat owners of insured vessels have every reason to remain calm, as your marine insurance company will strive to deal with the case fairly. Here are tips of what to do after loss or damage.

Inform your insurer as soon as possible. In case of theft or a malicious third party, inform the police. Fill out and submit the claim form immediately, attached with repair estimates. A Marine Surveyor may contact you to advise on repairs and make a report.