The Importance of Chartering Insurance before going out to the water!
by Bluewater Yacht Blue Water Yacht Insurance | Boat Insurance | SailWhat is one of the first things that most charterers
organize before they enter the market? It is the same that most ship owners ask
from their counterparties before they conclude a fixture i.e. the chartering
insurance. But what is it about? As ship owners have a P & I cover so as to
indemnify third parties for any liability which may arise from the Ship’s
action, a alike cover also exists for charterers.
In contrast to owner’s P & I Club insurance,
chartering insurance cover is not mandatory as well as the Charterers may
decide to take all the risk themselves. However, there are a number of reasons
which make most of the Charters- if not all of them- prefer to be protected
with Charters liability insurance cover.
Main
Risks covered in the Charters insurance
·
Cargo-
in case of any cargo damage, cargo shortage or else late delivery, the charters
may be liable directly to the cargo owner when they are the carries under the
bill of lading or else when an interclub clause has been agreed or else in case
where the claim is unsecured as well as it cannot be recovered from the ship
owner.
·
Pollution-
Under certain jurisdictions, the charterers may be considered accountable for
oil pollution especially if they are considered as the operators of a vessel.
In this case, the charters liability insurance is very imperative in order to
place the appropriate security as well as the vessel to resume passage.
·
Indemnification
of third parties- In Chartering insurance third parties may
have claims against charterers from actions which have been arisen due to
Charterers negligence. In some of the cases under the charter party, the accountability
for the loading or else discharge operations passes from owners to Charterers
and therefore the Charterers may be subject to third parties claims.
· Indemnification
of ship owners- in case of a breach of the charter
party from Charterers, owner’s claims is enclosed. There are number of issues
which may arise and the chartering liability insurance comes to cover, a few of
which are:
o
Bunkers
o
Stevedore
damage
o
Safe
port
o
Dangerous
Cargo
·
Damage
to vessel’s Hull- The P & I cover offered to the
charter owners does not insure the damages to the hull. However, this is
imperative for chartering insurance
cover due to the numerous ways that a charter may be liable for the damage to
vessel’s hull. A dangerous cargo or else any mishandling at the load port from
stevedores or the Cargo’s bad stowage may result in such a smash up which is
recoverable from charterers.
Bluewater Yacht Insurance insures boats and cruises
globally. For over 30 years, they have been insuring boats as well as cruisers
all over the world including the Caribbean Sea, Trans-Atlantic passages,
Transit through the Panama Canal, Mexico, Canada, Hawaii, Japan and Italy. They
also provide quotes and insurance for trips to Cuba.
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Created on Jun 20th 2019 04:16. Viewed 395 times.