SALVAGE & SUSTAINABLE WRECK REMOVAL
Transcript of SALVAGE & SUSTAINABLE WRECK REMOVAL
SALVAGE & SUSTAINABLE WRECK REMOVALCOVID-19 COVER ISSUES28 JANUARY 2021, 10:00 -11:30 (CET)BERGEN WEBINAR
AGENDA
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Case study: Salvage and sustainable wreck removalAjaz Peermohamed, VP, Head of Collision Claim, Påsan Vigerust, Senior Claims Executive, Marine ClaimsNils Magne Fjereide, Misje Rederi AS
Q&A sessionLeif Erik Abrahamsen, VP, Head of Marine Claims
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COVID-19 H&M and P&I cover issuesSveinung Måkestad, VP, Marine ClaimsCecilie Holm Nilsen, Senior Manager, People Claims
Q&A sessionReidun Haahjem, Vice President Underwriting
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01Gard Update with Q&A
CEO Rolf Thore Roppestad
CHALLENGE US WITH YOUR QUESTIONS
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• Select the Q&A icon
Michael Smith: Do we need to consider…• Type name and question
YOUR INSURANCE PARTNER
Rolf Thore Roppestad – CEO Gard28 January 2021
GARD HIGHLIGHTSGARD BERGEN WEBINAR
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GARD – DEVELOPMENT OF H&M IN WESTERN NORWAY
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P&I TONNAGE, DEVELOPMENT SINCE 1995 COMPARED TO GARD’S GLOBAL MARKET SHARE
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P&I underwriting for vestlandet overføres fraArendal til Bergen
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Looking after our employees and our
organisation Looking after our Members and
business partners
Looking after our finances
WHEN LONG TERM RELATIONS DO MATTER
2020 at a glance from a Gard perspective
OUR FOUR MOST EXPENSIVE CLAIMS: NOT OURS!EXPENSIVE COMFORT: OUR POOL CONTRIBUTION PERCENTAGE IS IMPROVING ….
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Looking after our employees and our
organisation Looking after our Members and
business partners
Looking after our finances
WHEN LONG TERM RELATIONS DO MATTER
2020 at a glance from a Gard perspective
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GARD MATERIALhttp://www.gard.no/web/topics/article/29290807/covid-19-coronavirus
Are we all in the same boat? Crew
changes in the time of pandemic
COVID-19 tests may give false
sense of security
Cyber security amid a global
pandemic
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GARD’S FIVE FOCUS AREAS FOR SUSTAINABLE BUSINESS
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Together we enable sustainable maritime development
Investing in people for sustainable growth
Support the maritime industry to limit the impact of climate change
Prevent and minimise the impact of marine pollution
Push towards a higher business ethics throughout global operations
Drive sustainable maritime development within our sector and beyond
SEAFARERS - CREW CHANGES AND REPATRIATIONCOVID-19 HAS PUT SEAFARERS AROUND THE WORLD IN PRECARIOUS SITUATIONS
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SHIP RECYCLING TRANSPARENCY INITIATIVEUSING TRANSPARENCY TO DRIVE PROGRESS
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26 signatories, 11 disclosing shipowners
OPPORTUNITIES IN A DECARBONISED ECONOMY25% OF PREMIUM IN OUR ENERGY PORTFOLIO FROM OFF-SHORE WIND
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CASE STUDYSALVAGE & SUSTAINABLE WRECK REMOVAL Ajaz Peermohamed, Påsan Vigerust & Nils Magne FjereideBergen Webinar28 January 2021
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The incident – Monday, 23 March 2020
• MV KAAMI, 2715 GT• 63 MT diesel on board• Cargo of 1927 MT 'solid recovered
fuel pellets'• Wind 6-8 occ 9, sea mod-very rough• Grounds at full speed (~11kts) on
Sgeir Gradaich, Little Minch• Grounding occurred on 1st day of the
U.K. lockdown
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Scientific & technical supportWhat? Fate of oil and chemicals Spill modelling Oil/Chem toxicity Advice on response techniques Sample analysis Activation of Environment Group
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Cargo - pellets• Contains:
– Plastic– Wood– Paper /
Cardboard– Glass and Stone– Textiles– Metals– Organics
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What else is on board?Well ….. aside from the cargo and the fuel:
– Rope– Paints – Solvents etc.
All have the potential to cause harm to the environment and therefore should be removed at the earliest (and safest) opportunity.
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Decommissioning time-lapse video
Source: https://youtu.be/hLFPAsyozk4 Loch Kishorn drydock, UK4141
COVID-19 IMPACT ON MARINE CLAIMS
• Has affected a considerable number of marine claims, e.g. due to
· Yard lockdowns· Reduced workforce available· Travel/immigration restrictions - access restrictions at yard
and on board· Owners’ and underwriters’ surveyor attendance has
sometimes been challenging· Quarantine periods for service engineers (before and after
repairs)· Restrictions in production and transport of spares· Time for repairs increases
- Generally, more concern and consequences more severe for LOH
H&M AND LOH
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INSURANCE MARKETS’ CONCERN AND RESPONSESA RISK WHICH IS ENTIRELY UNFORESEEN AND FOR WHICH NO PREMIUM HAS BEEN CHARGED…
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• London market responding with clauses restricting/excluding cover, e.g.:
- JX2020-009. JELC Communicable Disease Exclusion (June 2020)· Extremely harsh exclusion
- JH2020-007. JHC Communicable Disease Exclusion (Aug 2020)· A response to-, and corresponding with JX2020-009
- JX2020-009A. JELC Communicable Disease Exclusion (Nov. 2020)· Considerable “softening” of exclusion
- JH2020-007A. JHC Communicable Disease Exclusion (Dec 2020)· Corresponding with JX2020-009A
NORDIC MARKET - CEFOR CLAUSESDRAFTED / APPROVED IN COOPERATION WITH THE VARIOUS NORDIC SHIPOWNER ASSOCIATIONS
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LOH:Pandemic Delay Clause – LOH (July 2020)- Attempt to make a standard clause to replace a variety of clauses arising…
LOH - Communicable Disease Exclusion Clause (Cefor Form 2020 / 284) Dec 2020- Materially similar to the Pandemic Delay clause- If a communicable disease causes a casualty:
· Excluded, unless caused by an act or omission of an infected person· a casualty arising as a consequence of measures taken to prevent spread remains excluded
- If a communicable disease increases the time lost of a recoverable casualty (costs of repairs etc):· Default solution: maximum 30 days delay covered (or any other number of days stated in the
policy)· However, the delay must be recoverable under standard Plan provisions, the clause is not a
separate authority for providing cover
NORDIC MARKET - CEFOR CLAUSESDESIGNED TO BE USED FOR POLICIES BASED ON THE NORDIC PLAN
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H&M – Communicable Disease Exclusion Clause (Cefor Form 2020 / 283) Dec 2020- Largely corresponding to the updated JH2020-007A
- If a communicable disease causes a casualty: · excluded unless caused by an act or omission of an infected person· a casualty arising as a consequence of measures taken to prevent spread remains excluded
- If a communicable disease increases the costs of a recoverable casualty (costs of repairs etc):· standard Plan provisions applies – no change
- In practice – an extremely limited exclusion- https://cefor.no/clauses/news/communicable-disease-exclusion-clause/
Illness and injury -- not COVID-19 related -- have resulted in complex cases
Medical emergency Mental health
ILLNESS AND INJURY DURING THE PANDEMIC
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COVID-19 OUTBREAK ON BOARDP&I COVER FOR CREW – RULE 27
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Testing
Medical costs
Accommodation and maintenance
Repatriation
Crew replacement
Rule 27
Crew showing symptoms:
QUARANTINE AND DISINFECTIONP&I COVER - RULE 48
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01 02Quarantine Disinfection
Rule 48
• «Quarantine order» from authorities• Cover for costs and expenses in direct
connection with complying with a quarantine order
• Excluded: Normal running costs
• Cover for necessary disinfection costs ofship and crew