Marine Hull and Machinery
For Indemnity Sections:
In case of any event leading to a claim under the Policy arising out of an Insured
event, Insured event shall be intimated to Claims Manager / Underwriter.
While Intimation of claim, Insured has to provide relevant information which includes
Policy and Loss details. Based on the details provided Claim will appoint the Surveyor.
Appointment of Surveyor
The current process is that for all Marine H&M Losses an appropriate Loss Adjuster/Surveyor
is to be appointed. Professional loss adjustment in case of a fire claim is critical
for reaching a clear decision in the claim.
This requires that when a Surveyor is considered for appointment the following factors
should be looked at:
- The Surveyor must issue an ‘ILA’ or initial loss assessment, as soon
as his preliminary assessment is over.
- He should continue to advice about revision in reserve as his adjustment progresses,
till a firm figure is arrived at.
- He must submit he reports and photographs both in hard copies and soft copies. Supporting
documents will have to be scanned.
- He should clearly establish coverage.
- He must clearly establish Cause of loss.
- Loss Adjustment should be done in clear financial terms, with attachments certified
by a CA if financial statements are involved.
- Salvage value.
- The Surveyor should also determine loss minimization possibilities, by involving
experts from India/Abroad. If so agreed, with the insurers, he will co ordinate
the activities of these specialists, so as to ensure that maximum equipment is made
Processing of Claim: The documents generally required for processing of claims are:
- Policy/Underwriting documents.
- Survey Report with Photographs
- Claim Intimation letter by the insured with respect to the claim.
- Log book
- All Applicable valid Certificates
Apart from above Standard documents some other documents based on the nature of claim
- In addition to copies of the relevant insurance policies, the following documents
and information may be required to accompany a claim put forward against insurers.
If an adjustment is prepared, the adjuster will extract information from the documents
and incorporate it in the adjustment, but insurers are still entitled to see the
original documents and vouchers if they so wish.
- It will be noted from the list below that certain items require the endorsement
of the underwriters' surveyor as being fair and reasonable. This endorsement
may be to the effect that the amount concerns repairs attributable to the damage
noted, or may be for cost only where reservations exist as to whether the work incorporated
in the account is relevant to the repairs in question. The endorsement will be obtained
either by the owners' superintendent at the time of survey/repairs, or through
subsequent correspondence entered into by the average adjuster with the surveyors
- Deck and engine room log books covering the casualty, and, if possible, the repair
period(s). Master's and/or chief engineer's detailed report and/or note
of protest, as relevant.
- Underwriters' surveyor's report and account (if settled by ship-owners and
not directly by underwriters).
- Classification Society surveyor's report and account. Owners' superintendent's
report and account.
- Receipted accounts for repairs and/or any spare parts supplied by ship-owners, in
connection with repairs, endorsed by underwriters' surveyor as being fair and
- Accounts covering any dry docking and general expenses relating to the repairs.
These accounts should also similarly be endorsed by underwriters' surveyor.
- Accounts for all incidental expenses paid at the port of repair, e.g. port charges,
watchmen, communications expenses, agency, etc.
- Details of fuel and engine room stores consumed during the repair period, together
with the cost of replacement.
- If any owners' repairs are effected concurrently with the damage repairs, it
will assist the adjuster if the accounts for these repairs are also provided.
- Copies of faxes/e-mails sent and details of long-distance calls made in connection
with the casualty, together with their costs.
- Details of dates of payment of all accounts.
(B) When vessel has been in collision
- Details of steps taken to establish the liability for the collisions and the eventual
settlement made between the two parties.
- If a recovery has been attempted against the colliding vessel, a detailed copy of
the claim put forward and all the items allowed from the claim by the owners of
the colliding vessel together with accounts covering legal costs.
- A detailed copy of any claim received from the other vessel, together with details
of which items included in the claim have been agreed.
- Details of efforts to limit liability of applicable.
(C) Where a vessel is removed for repairs
- The reason for the removal.
- Deck and engine room log extracts covering the removal passage or details of:
- The last port prior to the repair port, and the first port thereafter.
- Details of the dates of arrival/departure at the relevant ports.
- Details of whether a new cargo or charter was booked on the removal to the repair
port, together with information concerning the freight earned thereon, and also
derail as to any new cargo booked to be loaded following completion of repairs.
- Accounts for the outward port charges at the last port prior to the repair port,
the inward and outward port charges at the repair port, and, if the vessel returns
to the port from which she originally moved, the inward port charges at that port.
- Portage bill showing the wages of the officers and crew covering the period during
the removal to the repair port, and also for the return passage if the vessel returns
to her original port. The cost of maintenance for the officers and crew should also
- Details of fuel and stores used during the removal indicated under (5) above, and
the cost of their replacement.
- Accounts for temporary repairs if they were effected solely to enable the vessel
to move to the repair port.
- Details of owners' repairs, if any, effected at the repair port together with
the costs thereof.
General average - documents/information required
The documents required in cases of general average vary considerably according to
the nature of the casualty. The following are selected to cover the majority of
(A) Resort to a port of refuge
- Log extracts and reports from the master or other parties showing the dates and
times when the vessel deviated, arrived at a port of refuge, left port of refuge
and regained her position.
- Any survey reports, whether held on behalf of underwriters, owners, the Classification
Society, or in the general interest dealing with the vessel's resort to the
port of refuge and/or any repairs affected there.
- Details of any repairs effected at the port or refuge, stating whether they were
temporary or permanent repairs, and also how much of the repair account represents
the excess costs of overtime worked by repairers.
- Details of any shifting or discharge of cargo at the port of refuge, stating whether
such shifting or discharge was necessary either in order to allow repairs necessary
for the safe prosecution of the voyage, or for the common safety or for re-stowage.
If any costs have been incurred in this respect, the accounts covering such expenses,
storage whilst ashore, and insurance during the storage period to be supplied.
- Agent's general account covering the detention period at port of refuge together
with supporting vouchers.
- Portage bill giving details of wages and allowances paid to crew of vessel during
the resort to the port of refuge.
- The daily rate of maintenance paid in respect of the crew of the vessel.
- Details of fee and expenses paid to any owners' superintendent/surveyor employed
at the port of refuge.
- Details of fuel and stores consumed in deviating to the port of refuge, while detained
there, and in regaining position, together with details of the cost of their replacement.
- Copies of faxes/e-mails sent and details of long distance calls made in connection
with the casualty together with their costs.
- All accounts should be marked with the date on which they were paid by owners.
(B) In respect of ship
- If the vessel has been on fire:
- Survey reports showing division of damage between fire and efforts to extinguish
the fire.(The same division should also be made in surveys of any similar damage
- Accounts for repairs to the vessel should also be divided in this way.
- Accounts for any fire-fighting costs: refilling extinguishers, CO2 bottles, etc.
- If the vessel has been aground:
- Survey report dividing the damage found between that caused by grounding and that
caused by re-floating.
- Repair accounts should be similarly divided.
- If the vessel has been re-floated with tugs, details of the Salvage Award and relevant
legal costs, or if the salvage services have been rendered under contract, a copy
of the salvage contract and the relevant accounts.
- Accounts for any costs incurred lightening the vessel (e.g. lighterage).
(C) In respect of cargo
- Manifest of the cargo on board at the time of the accident.
- Copy of the bills of lading showing the front and reverse sides.
- Details of the outturn of cargo delivered.
- Any reports of survey on the cargo held directly following the casualty or at the
port(s) of destination.
- General average security documents furnished by cargo interests (i.e. average bonds
and general average guarantees).
- Counterfoils of any general average deposit receipts issued.
- Copy of the commercial invoice(s) covering the particular consignment(s).
(D) In respect of freight/time charterers' bunkers
- Details of the chartering situation of the vessel and copies of the charter parties.
- If freight was at risk, a copy of the settled freight account will be required together
with copies of all accounts covering the cost of earning the freight subsequent
to the accident.
- Details of any bunkers owned by time charterers remaining on board the vessel at
the termination of the adventure.
- Off-hire statement.
Salvage if any should be disposed of at an early date to realize maximum value and
to avoid any further deterioration, due to atmospheric conditions.
" All claims are subject to approval by Surveyor appointed by HDFC ERGO GIC LTD