Hull and Machinery Claims

Our role is to provide an independent view on the liability of insurers under the hull and machinery policy.

 

This will involve:

 

  • consideration of the proximate cause of the loss and its’ application to the coverage under the policy.  We can obtain independent consulting engineering advice where required to assist in identifying the potential causes of damage or areas for further technical investigation.

  • reviewing the expenses incurred and advising the shipowners and insurers with regard to the amounts which may be claimed.  The role is independent and the aim is to ensure that the shipowner receives the correct indemnity in accordance with the terms of the policy and be able to explain the result to the satisfaction of both the shipowners and their insurers.

  • where there is potential for a recovery from a third party, we can assist in preparing and quantifying the claim against the third party.

Our early appointment on a case can assist both insurers and shipowners.  Shipowners are often faced with choices as to how to undertake repairs to their vessel and we can provide timely advice as to how the policy should respond. 

 

For example:

 

  • If the shipowner effects temporary repairs and defers permanent repairs until a later, will the temporary repairs be claimable? 

  • Will insurers pay for the cost of airfreighting a large and heavy part to the vessel as opposed to sending it by seafrieght?

  • If it is necessary to remove the vessel from one port to another to get in to a drydock, what can be claimed in respect of the costs of the removal?

These are often complex questions which depend on the particular circumstance of the claim.  We can give advice on the correct policy response so that informed choices can be made by all concerned.

 

For larger claim, we may be able to recommend a payment-on-account from insurers to ease the cash flow issues which a large casualty can present to the shipowners.

 

We will prepare an adjustment which will clearly deal with the questions of policy liability and the correct allowances which can be included in the claim.

 

Our fees traditionally form part of the claim (regardless of whether the initial appointment comes from the shipowners or the insurers) and are fully recoverable from insurers.

​© 2014 Willum Richards

Fellow of the Association of Average Adjusters