Marine Insurance Claims - Third Edition

This 1,400 page publication is the complete source of reference for the insurance practitioner.

As well as covering the fundamentals of marine insurance claims, it also examines the changes to British and international shipping law since publication of the previous edition. This includes the controversial Oil Pollution Act passed by the United States, two revisions of Lloyd’s Standard Form of Salvage Agreement, a new set of York-Antwerp Rules, amendments to the Institute Hull and Freight Clauses, and the Merchant Shipping Act, 1995.

When the script was commenced, legislation in the USA to combat oil spills by means of their Oil Pollution Act had not then been produced, and the controversy surrounding its introduction has progressed during the whole period of preparation. The problems raised by this Act are explained in Chapter XII.

The law regarding the duty of care was also developing in a somewhat haphazard fashion, particularly in the area of parallel duties of care in contract and tort. This complex subject has now largely been resolved by the House of Lords in what is termed The Lloyd’s Litigation, which is reviewed in a new chapter (Chapter IV).

Another new chapter is that relating to the formation of the contract (Chapter II). Issues surrounding the question of good faith, and what constitutes a material circumstance continue to bother the Courts, and the appellate decision in Container Transport International Inc v Oceanus Mutual Underwriting Association (Bermuda) Ltd (1984) was received with some dismay in the market. It was not until ten years later that the situation was ameliorated by the House of Lords in Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co Ltd, and the reader will be able to judge whether the present position is entirely satisfactory.

Developments have also occurred in the process, of freezing assets under a Mareva type injunction. Situations that have caused the Courts to extend their jurisdiction are fully explored in Chapter XIX.

Other major changes that have since taken place relate to the coming into force of the Merchant Shipping Act, 1979, and the Merchant Shipping (Salvage and Pollution) Act, 1994, both of which now figure largely in the consolidating Merchant Shipping Act of 1995. Revisions of Lloyd’s Open Form took place in 1990 and 1995, while the York-Antwerp Rules were revised in 1994. During the course of writing, revisions to the hull clauses were also under discussion, but, with the co-operation of the publishers, it has been possible to include an analysis of the new clauses.

I – The Claims Scene

II – Formation of the Contract

III – Sundry Considerations

IV – The Duty of Care

V – The Policy Form

VI – The Marine Adventure

VII – Included and Excluded Losses

VIII – The Maritime Perils

IX – Cargo Clauses – Particular Average

X – Measure of Indemnity – Partial Loss of Cargo

XI – Clauses for Special Trades

XII – Documentation of Cargo Claims (PA): Modern Modes of Transport

XIII – Particular Average on Ship – The Reasonable Cost of Repairs

XIV – Particular Average on Ship – Institute Time Clauses (Hulls)

XV – Unrepaired Damage – An Historical Review

XVI – Function of the Average Adjuster

XVII – Introduction to Freight Claims

XVIII – The Running Down Clause

XIX – Further Consideration of Shipowners’ Liabilities
XX – Salvage

XXII – Yachts and Sailing Dinghies

XXII – Features of General Average

XXIII – General Average – Sacrifice and Expenditure

XXIV – General Average – Made Good and Contributory Values

XXV – General Average in Practice

XXVI – General Average in Relation to Marine Policies

XXVII – Total Loss

XXVIII – Abandonment and Subrogation

XXIX – Recoveries from Cargo Carriers

XXX – Recoveries from Rail and Road Carriers

XXXI – Reinsurance Recoveries

XXXII – War and Strikes

Appendix A – Marine Insurance Act, 1906

Appendix B – Statute relating to Limitation of Liability (Merchant Shipping Acts)

Appendix C – Maritime Conventions Act, 1911

Appendix D – York-Antwerp Rules, 1994 contrasted with York-Antwerp Rules, 1974

Appendix E – Association of Average Adjusters’ Rules of Practice

Appendix F – Lloyd’s Standard Form of Salvage Agreement, 1980

Appendix G – Lloyd’s Standard Form of Salvage Agreement, 1990 together with Procedural Rules

Appendix H – Lloyd’s Standard Form of Salvage Agreement, 1995

Appendix I – Sections from the Merchant Shipping (Salvage and Pollution) Act, 1994 (now incorporated into the Merchant Shipping Act, 1995) as related to the International Convention on Salvage, 1989

Appendix J – Carriage of Goods by Sea Act, 1924

Appendix K – Carriage of Goods by Sea Act, 1971

Appendix L – Carriage of Goods by Sea Act, 1992

Appendix M – The Hamburg Rules

Appendix N – Carriage of Goods by Road Act, 1965

Appendix O – Unfair Contract Terms Act, 1977

J Kenneth Goodacre, ACII

Chartered Insurance Practitioner

Partner, Goodacre (Marine Claims Services) 1976–90

Adjuster of Marine Claims to the Home and Overseas Insurance Co Ltd, 1958–68

Adviser to the Chartered Insurance Institute, 1975–85

Chairman, UK Society of Average Adjusters, 1981–84