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CHARTERERS’ COVER

Charterers’ P&I, Damage to Hull (DTH) and Freight, Demurrage and Defence (FDD)

In respect of liability to seamen, damage to property, removal of wreck and many others, the Club provides cover on the basis of a combined single limit of up to USD 500 million or EUR 500 million. However, where needed, we are able to offer more comprehensive third party liability cover. We can arrange this cover either as a standard extension or on bespoke terms.

MULTIMODAL LIABILITIES

Charterers’ liability for damage to hull

Cover falls into three broad subheadings; Liabilities to owners, Member’s own interests and Member’s costs, fees and expenses.

Extensions of and/or additions to cover may be available to Members for through transit liability, extended through transit liability, consortium and/or slot charterers’ liabilities, extended cargo liability and containers and container liability.

CHARTERERS’ FD&D COVER

Covers legal costs and expenses arising out of a variety of disputes in which a Charterer may be involved. This cover does not form part of the Charterers’ CSL but is a valuable adjunct to it covering such matters as disputes with owners, disputes over charter hire and with port authorities. Over loading and discharging of cargo and with bunker suppliers. The cover is limited to USD10million any one claim, the first USD 5,000 covered in full by the Association with the Member contributing one-third of all expenses thereafter.

ADDITIONAL COVERS

The following may be available to Charterer Members on application.

  • Bunkers insurance
  • Loss of freight/loss of hire
  • Cargo owner’s legal liability
  • Cover for indemnities

LINKED DOCUMENTS

SCOPE OF COVER

The disputes that are covered under FD&D include those arising over freight, charter hire, demurrage and detention. Cover also includes claims arising out of the supply of bunker fuels and ship’s equipment, repair work improperly carried out, and damage to hull (not covered by Hull & Machinery Insurance). Similarly, disputes involving salvage, towage and pilotage, sale and purchase, as well as new building contracts, all fall within the ambit of FD&D cover. It is important to note that the cover provided relates only to the legal and other allied expenses involved in a dispute, not the liability itself. This is in contrast to P&I insurance where, for example, the actual liability for cargo or dock damage, oil pollution, and so on is covered, as well as the associated legal costs. It is also important to note that any new claim must be discussed with the Club at the outset, before any action is taken, as the Club must be satisfied that the claim has merit. This does not mean that the claim must ultimately be successful, but for cover to be applicable, there has to be a sound basis in fact and law for the matter to go forward. A Member should never be put off, however, from consulting the Club on any FD&D matter, even though at the outset the Member’s claim or defence may not appear strong. It is sometimes the case that after the Club has had an opportunity to consider the issues in detail, the position may be better than it initially seemed.