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MARINE HULL INSURANCEUDAYAN BURMA, FIII, ACII

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What is marine hull insurance ?

Insurance of hull and machinery of ocean going/othervessels like barges, fishing and sailing vessels,trawlers.

Subsidiary interests like freight and disbursements.

Construction and builders risks/charterers

liability/ship repairers liability,TPL etc writtenselectively for valued clients.

Offshore oil/gas exploration and production units as

well as connected construction risks.

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Registration of vessels

Merchant Shipping Actmakes it mandatoryfor all vessels to be registered and a certificate of registry

to be obtained.GRT-Gross Registered Tonnage: is defined asa vessel's total enclosed space measured in cubic feet

where 100cubic feet equates to 1 vessel ton.Net Registered Tonnage: is defined as the spaceavailable on a vessel for the accommodation of passengersand the stowage of cargo where a vessel ton equates to

100 cubic feet of space. This excludes space occupied bycrew's quarters, machinery for navigation, engine roomand fuel.

DWT-Dead Weight Tonnage-means thecapacity in ton of the cargo required to load a ship to her

loadline level.

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Classification of Vessels

The design and construction of modern vessel isnormally subject to the rules of the particularclassification society used by the owner.This entails approval of all the plans and material inthe construction of the ship and includes testing ofsteel used for the hull, testing of engines, boilers,anchors and chains etc.The Indian Register of Shipping (IRS) is arecognized classification society.Post classification a ship has to undergo acomprehensive series of surveys during her lifetimeto retain the class. These include a through specialsurvey every 4yrs and dry docking survey every two

years in addition to an annual survey.

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TYPES OF VESSEL

Passenger vesselDry bulk carrier Liquid bulk carrier Genera

Ocean going vessel Coastal Tonnage

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TYPES OF VESSEL

Ocean going general cargo is usually in 5000 to15,000 GRT range. Includes specilised vessels such ascontainer ships, barge carriers, RO RO vessels, Reefers.Many general cargo vessels are built for specific purposeseg. Car carriers, livestock carriers, log carriers etc.

Linertramp

Load at an advertised berth and runs to

an advertised schedule.

Capt & crew familiar with the navigationalhazards en-route.

Better maintained since they have to keepto a time schedule.

Require huge investment

Carries cargo whenever and wherever

it is available, mostly bulk cargo, veryoften seasonal in nature.

At the time of depression trampremain unemployed where as at thetime of heavy demand even older

tramps which have laid up for yearsare brought into service.

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Factors which determine Hull Rate

Type of vessel, hazards of trade it is engaged in, trading limits,age, tonnage, nature of cargo it usually carries, technical aspects of thevessel.

Management and ownership, their integrity, financial stability andreputation for good management and proper maintenance.

Past claim experience/ valuation of the vessel

Is it classed and is the class maintained.

Type of insurance cover i.e whether All Risk or limited coverage likeTLO+GA+3/4th collision liab etc

Size of deductible

Underwriting experience of similar risks as revealed in Lloyds and ILU

publications.

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