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This document discusses marine delay in start up (DSU) insurance. It covers why this specialized insurance is needed due to standard clauses excluding delay claims. Drivers for the product include financiers wanting highest protection for investments. Coverage elements include defined indemnity and policy periods. Underwriting analysis involves understanding cargo values, routes, survey requirements, and working with surveyors, CAR/EAR underwriters, and brokers.
This document discusses marine delay in start up (DSU) insurance. It covers why this specialized insurance is needed due to standard clauses excluding delay claims. Drivers for the product include financiers wanting highest protection for investments. Coverage elements include defined indemnity and policy periods. Underwriting analysis involves understanding cargo values, routes, survey requirements, and working with surveyors, CAR/EAR underwriters, and brokers.
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This document discusses marine delay in start up (DSU) insurance. It covers why this specialized insurance is needed due to standard clauses excluding delay claims. Drivers for the product include financiers wanting highest protection for investments. Coverage elements include defined indemnity and policy periods. Underwriting analysis involves understanding cargo values, routes, survey requirements, and working with surveyors, CAR/EAR underwriters, and brokers.
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
May 16th, 2008 AIMU Introduction to Marine DSU Delay in Start Up, Advance Loss of Profits are are::
The unique Marine Consequential Loss
covers that address the marine time element exposures of major project ventures.. ventures Why do we need a special cover? Because Standard clauses exclude exclude:: A.“Loss, damage or expense proximately caused by delay, even though the delay be caused by a risk insured against” or Warrant : B.“Free of claim for loss of market or for loss, damage or deterioration arising from delay, whether caused by a peril insured against or otherwise otherwise..” Drivers for this product
It is the Financiers ( Banks) that drive this cover
cover.. They want their investment protected to the highest possible degree degree.. It is purchased on behalf of the owner/operator owner/operator.. Be it a consortium, joint venture, government authority, corporation or other entity entity.. It is not for the benefit of the contractors contractors.. The scarcity of capital in the current credit market will likely increase demand for this product.. product The Form One of the most common forms in use today, The ECB form, was developed in London in the 60 60’s’s.. It is a policy of Indemnity Indemnity.. It is not a Performance Cover Cover.. The loss triggers are are:: 1. Loss caused by loss of or damage to property property.. 2. Loss caused by Mechanical breakdown of or damage to the Vessel, Aircraft or other Conveyance.. Conveyance 3. Loss caused by a general average, Salvage or lifesaving operation Duration of Coverage The duration of coverage defines the period of protection for the goods covered covered.. a) From the time they leave the premise of the manufacturers in the country of origin, during ordinary course of transit and any specifically agreed storage until delivered to site site.. b) Breakdown of the conveyance protection begins from the time the vessel or craft comes alongside the berth or mooring position to receive the cargo cargo.. Indemnity Period The indemnity period is not measured from the time of the event that triggers a delay delay.. The indemnity period begins at the anticipated start up date of the operation operation.. The period is expressed in a specific unit of time Months/Weeks/Days.. Months/Weeks/Days The waiting period or deductible is expressed in the same unit of time as the indemnity period period.. Policy Term In general, the policy term commences at the signing of the contract and remains in force until the final acceptance of the project project.. Some contracts can take several years to complete complete.. It is not uncommon to have little or no cargo and MCL exposure until well into the contract period period.. Should the anticipated acceptance date of the project be moved, either forward or back it is a condition of the policy that the underwriter be advised.. advised Once the policy is in force it is non non--cancelling cancelling.. Measure of Indemnity The Sum payable is broadly expressed as as:: The reduction in production Increases in the cost of working Standing Charges are expressed as as:: The costs which are not affected by any change in the output of the business but which remain to be paid in full.. full Interest payments Rents Taxes Fuel purchase agreements Common Coverage Elements The policy will only respond for loss to property that is described in the policy or in a schedule attached and then only to the extent that those risks would be covered under the specified forms forms;; at a minimum minimum:: Institute Clauses Cargo (A) Institute War Institute Strikes
A loss caused by mechanical breakdown of the
conveyance references similar Voyage Hull clauses and Aircraft clauses clauses.. The survey warranty This clause at a minimum will apply to all Key and Critical Items Items.. .. Requires the surveyor to supervise and approve all loadings, discharges and stowage throughout the entire voyage voyage.. Requires the assured to give timely notice of changes to the schedule so that the surveyor can attend attend.. Survey fees are usually for the account of the assured although inspection fees can, in some cases be set aside from the premium.. premium It suspends coverage for breaches breaches.. Principle Consideration for the Marine DSU Underwriter Ideally, the Marine DSU Underwriter should insure the cargo for the project project.. It’s about controlling the decisions to promote the best mutual outcome outcome.. It eliminates disputes between coverage forms forms.. It eliminates disputes between claims units units.. It eliminates confusion regarding Claim reporting reporting.. Underwriting Analysis Step 1. Begin with your Strength! Underwrite the cargo! What are the total values to be shipped? Where will the plant and equipment be coming from and where is project site? Is the site a green field project or are there existing facilities to received the cargo? If this is the 2 nd or 3rd expansion of a project what was the past experience? What are the special shipping considerations? Will storage be needed and where? What is the cargo limit? What is the DSU Limit? Fair winds and following Seas.. Underwriting Analysis Step 2. Identify the key/critical Items that could give rise to a DSU loss loss.. A typical application will include an Engineering Proposal that will include a project time line or phase diagram that will graphically indicate when major milestones of the project commence and are due to complete as well as what items are critical critical.. The engineering proposal will also include the cost components that make up the DSU limit limit.. It is up to the underwriter to analyze the components to ensure the costs fall within the scope of the cover cover.. Underwriting Analysis Step 3. Work with your team team.. Surveyors – CAR/EAR underwriters -Brokers Nominate your surveyors early early.. Make sure you can share underwriting information with them.. them Make sure other underwriters will support your nomination.. nomination Make sure your client has no objections objections.. Develop an estimated survey plan that lays out the costs based on the proposal provided provided.. Underwriting Analysis Step 3. Work with your team. Surveyors – CAR/EAR underwriters -Brokers Consult with your CAE/EAR colleagues. Do they agree with the replacement estimates? Review the leeways and the testing periods? Is the technology proven or is it prototype? Underwriting Analysis Step 3. Work with your team. Surveyors – CAR/EAR underwriters -Brokers
Is the broker looking for a marine lead or follow?
What are you prepared to offer? Do you know the lead? Will you need to consult with your reinsurer? Will you need to consult with your home office?