Charterers' Liability Insurance

Introduction

Charterers Liability is above all a practical guide for ship operators which brings together the various facets of marine insurance exclusively as it affects ship charterers, ranging in chartering activities from those who become fully immersed in the operation of chartered ships to those who may only book space in a ship, and in such a way that it should become an indispensable tool for chartering practitioners. Essential Best Practice is written with three main objectives in mind:

1. To give a theoretical underpinning to the practical applications of a charterers’ or cargo trader’s marine insurance.
2. To assist the charterer in reviewing his/her own chartering risk exposure and to help evaluate the various insurance solutions available to cover or substantially mitigate that risk.
3. To inform the charterer of the ‘essential best practice’ in his day to day management of his/her chartering risks, including the management of chartering related claims.

Author: Heinz E. Gohlish
Published: November 2008
ISBN: 9781905331338
Binding: Hardback

About the Author

Heinz Gohlish Heinz Gohlish was born in Bremen but grew up in Winnipeg from where he joined the Royal Canadian Navy in 1965. Having spent 10 years at sea, specialising as a navigator, he left to attend university on a full time basis, first at Victoria and then at Cardiff, achieving a post graduate degree in Maritime Economics. From there he worked as a P&I underwriter, marine liability broker and shipping Consultant based in London, becoming an Associate Director of a P&I Club, an Executive Director of a Lloyd’s broker, a Director of a marine consultancy firm and finally the Underwriting Manager for the Charterers’ P&I Club

Heinz has contributed regular features to a diverse range of shipping and naval Journals and also to various academic publications and marine insurance briefing reports. He has contributed to naval conferences on commercial shipping and marine society matters. His current projects include research on the history of Containerisation. Heinz is a member of the Nautical Institute (MNI) and the International Association of Maritime Economics (IAME).

Chapter 2 The International Market
Introduction, World maritime trade…, …And the Impact on Maritime Transport, The Marine Insurance Environment, The International Marine Market, Insurance Brokers, Marine Markets by Sector, Conclusion.
Chapter 3 The London Market
Introduction, Lloyd’s of London, Companies Markets.
Chapter 4 Protection and Indemnity Market
Introduction, The P & I Mutual Principles, The P & I Mutual Market, The P & I Fixed Premium Market and Pools.
Chapter 5 Charterers’ Liability Market
Introduction, Charterers’ Needs, New Market Opportunities, The Charterers P&I Club, The Market Expands.

SECTION 3 Charterers’ Insurance Sectors

Chapter 6 Hull and Machinery Cover
Introduction, Background, The Mar Policy, The International Hull Clauses (IHC), Variations in Hull Clauses, Ship Values for Insurance, Charterers Damage to Hull.
Chapter 7 Protection and Indemnity Cover
Introduction, P & I Cover, P & I Club Procedures, Group Clubs’ Performance, Group Clubs’ Pooling and Reinsurance, Charterers’ P & I Insurance.
Chapter 8 Marine Cargo Insurance
Introduction, Marine Cargo Insurance, Marine Cargo Clauses, International Trade and Sales Contract, Underwriting Charterers’ Cargo Risks.
Chapter 9 Trade Disruption Insurance
Introduction, Trade Disruption Insurance, Strikes Insurance, Evolution of LOH/TDI Insurance.
Chapter 10 Freight Demurrage and Defence
Introduction, FD&D Insurance in Theory, FD&D Insurance in Practice, FD&D Insurance in Action, Conclusion.

SECTION 4 Charterers’ Insurance Issues

Chapter 11 Maritime Conventions and Regulations
Introduction, The International Maritime Organization, Limitation of Liability Conventions, Port State Control, Conclusion.
Chapter 12 Ship Owners’ Liability (SOL)
Introduction, Contractual Deviations, Breaches of Contract, Reinstatement of Cover.
Chapter 13 NYPE Inter-Club Agreement
Introduction, The Agreement, Evolution of the NYPE Inter-Club Agreement, How the Agreement Works.
Chapter 14 War Risks, Piracy and Terrorism
Principles, The Charterer, War Risk Exclusion Zones, Piracy.
Chapter 15 Sub-Standard Ships
The Charterer and Ship Quality, Evaluating Nominated Ships, Classification Societies, Open Registries and Ship Manning, Liability Insurers and Sub-Standard Ships.

SECTION 5 Charterers’ Insurance Practice

Chapter 16 Charterers’ Legal Liabilities
Introduction, Limitation of liability – the Charterers’ Rights to Limit, Conclusion.
Chapter 17 Chartering Contracts
Introduction, The Time Chartering Contract, The Voyage Chartering Contract, Bill of Lading, The Bunker Sales Contract, Conclusion.
Chapter 18 Dispute Resolution
Introduction, Litigation, Arbitration, Mediation, Expert Determination.
Chapter 19 Charterers’ Bunkers
Introduction, Charterers’ Liability for Bunkers, The Charterers’ Dilemma, Technical Considerations, Bunkers Insurance.
Chapter 20 Charterers’ Cargo Liability
Introduction, Cargo Owner vs. Cargo Carrier, Conclusion.
Chapter 21 Charterers’ Underwriting
Introduction, The Charter Party, The Bill of Lading (B/L), Ship and Operating Variables, Premium Calculation, Renewals, Conclusion.
Chapter 22 Claims Management
Introduction, Claims Management Resources, Claims Management Practice, Conclusion.

SECTION 6 Summary and Conclusion

Chapter 23 The Charterer and CL Insurance
General, CL Insurance and the Market, CL Insurance and Future Developments, A Final Word…

SECTION 7 Appendices

1. Duty of Care to the Insurer
2. Endorsement to Extend Cover to War Risks
3. Key Judgments
4. On Deck Cargo
5. Letter of Indemnity
References
Index

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