Insurance

Hull and Machinery marine risks (“H&M”)
Hull & Machinery insurance is fundamental protection of a vessel against damage. The vessel, including her machinery and equipment, is insured to her full value and, depending on the chosen cover, the following risks may be indemnified:

- Total loss (actual or constructive) or expenses that might be incurred in repairing / replacing damaged parts of hull, machinery and other equipment
- Expenses paid for prevention, minimizing of damages or calculation of loss, in case such expenses are caused by an insured peril
- Vessel gone missing
- General Average contribution
- Salvage expenses

Related covers are:

War Strikes and Risks Insurance Hull & Machinery Insurance does not normally include cases of damage to a vessel caused by hostilities, civil commotions, sabotage, terrorism, arrest, seizure etc. These risks are covered by War Strikes and Risks Insurance. War Risks Insurance is especially important for a vessel operating in dangerous waters.

Loss of hire insurance Loss of Hire Insurance will cover loss of income as a result of a claim recoverable under Hull and Machinery Insurance.
Sum insured is agreed with daily compensation that equals to the actual average income of the Shipowner. However Loss of Hire does not work in case of a total loss of the vessel, when loss of freight income may be recovered by Increased Value Insurance.

Increased Value Insurance Increased Value Insurance (also called Freight Interest Insurance) is a cover designed to insure additional 20% over the Insured Value of the vessel in case of her total loss.
Compensation under Hull & Machinery Policy in the event of Total Loss is not enough to cover expenses for replacement of the vessel, which may result in a difficult situation for the Shipowner.
Increased Value Insurance makes it possible to replace the vessel and minimize economic consequences of the Total Loss. Indemnity paid under Increased Value Insurance policy will also protects the Shipowner against loss of freight.

We can provide cover for all types of goods, commodities and merchandise for physical loss or damage to goods whilst in transit by land, sea and air or whilst in storage, anywhere in the world.

The Institute Cargo Clauses - A, B or C, including War Clauses and Strikes Clauses are the most commonly used conditions with Cargo Clauses A providing the equivalent of “all risks” cover with B and C giving less coverage which is normally reflected in commensurately lower premiums for the lower cover.

Whatever the cover you are arranging it is important to cover your obligation to contribute to General Average. This is one of the oldest principles of cargo insurance and applies only to ocean and sea voyages. You might be called upon to make a contribution in General Average where loss or damage is suffered to the vessel or cargo, perhaps by way of a sacrifice in order to save or preserve the greater venture. For example goods may sustain water damage during fire fighting. In this situation, if General Average is declared, all the parties involved must contribute to covering the loss.

We are familiar with Ukrainian and International markets and can offer comprehensive terms and a responsive claims service.

Although a vessel is usually fully protected, there often may occur claims that are outside the scope of a standard conditions. These claims may cause substantial financial losses to Shipowners and Charterers in the form of legal expenses resulted from disputes over charter parties, contracts and other commercial aspects.

FD&D (Freight, Demurrage & Defence) is a kind of insurance intended to help the Assured bear above mentioned legal expenses. FD&D Insurer supports Clients in protecting their business interests and continue their activities without particular financial losses.

Standard FD&D cover includes the following disputes and claims:

• under charter parties: „off-hire“, withdrawal, speed & performance, freight and laytime;
• under bills of lading, charter parties and other contract of carriage (including exercise of contractual rights);

Protection and Indemnity (P&I) insurance has developed over the last 200 years in response to the need among shipowners for insurance cover for risks not recoverable under standard hull and machinery policies. A shipowner or charterer can incur liabilities towards many different third parties while operating ships. P&I insurance provides this third party liability cover.

The scope of cover available from P & I Clubs is detailed in their individual rulebooks, but generally, this comprises:

• under charter parties: „off-hire“, withdrawal, speed & performance, freight and laytime;
• under bills of lading, charter parties and other contract of carriage (including exercise of contractual rights);
• injury, illness and death of crew, passengers and stevedores;
• repatriation of crew and substitute expenses;
• diversion and other expenses incurred in landing refugees, sick persons and stowaways;
• collision liability;
• excess collision liability;
• pollution by oil or other substances;
• property damage;
• towage contract liabilities, and liability under other contracts and indemnities.
• cargo loss, shortage and damage;
• unrecoverable general average contributions;
• salvor's expenses under the 1980 Lloyd's Standard Form of Salvage Agreement.
• fines, certain legal and other costs;
• wreck removal;
• excess War Risks liability.

Navis Ship Management provides P&I insurance both to Ukrainian and foreign Owners, Managers, Operators, Charterers based on traditional international market conditions.

• Claims Department activities can be summarized as follows:
• Receiving the claims documents from the concerned claimant and examining the same properly
• Defending the Principals' interests in accordance with local regulations
• Providing the P&I Clubs with the claims documents and giving advice on how to proceed to defend the claim in a proper manner
• Negotiating with the claimants to resolve the case on best possible terms
• Seeking the legal opinion of the local lawyers if necessary
• Appointing lawyers on behalf of the Principals as and when necessary to attend the court and defend their interests
• Close liaison with the appointed lawyers and assisting them to deal with the claims in the most proper manner
• Reporting the developments of the cases to the Principal at all stages