Mutual Delay Insurance

Mutual cover for delays following. Onshore or Onboard Incidents caused by named perils.

Classes cover loss of time and consequential loss of entered vessels' daily costs during delays caused by a named peril for any combination of maximum number of days and deductible per occurrence.

All operators are exposed to financial losses caused by delays to their vessels.

Their exposure will be determined by the type of activity and the contractual base on which vessels are operated.

Examples of Incidents

  • Strikes, boycotts, actions by environmental objectors, industrial disputes
  • Collision, grounding, stranding, striking FFO's
  • Indirect effects of certain weather conditions
  • Fire, explosion, mechanical breakdown on land
  • Port closures, obstructions, or high levels of water
  • Illness, death or injury on board the vessel or caused by the vessel
  • Stowaways, saving life at sea, rescuing of refugees
  • Desertion of the crew
  • Presence of drugs onboard (actual or alleged)
  • Pollution caused by the entered vessel (actual or alleged)
  • Quarantine... and more.

Class I

Onshore Incidents

Covers the daily costs of a Member’s vessel during delays caused by onshore incidents for the duration of such incidents.

Class II

Onshore Incidents

Covers the daily costs of a Member’s vessel during delays sustained after the incidents referred to under Class I have ended. Most commonly, claims under this Class arise when there is congestion in the port immediately after the termination of the direct effects of an onshore incident.

Class III

Onboard Incidents

Covers the daily costs of a Member’s vessel during delays resulting from onboard incidents such as officer or crew strikes, and a wide variety of other incidents including collision/grounding, drugs on board, piracy, kidnap, ransom, stowaways, machinery damage etc. usually leading to a vessel going off-hire.

Classes of Cover

Class I & II Onshore Incidents

Suitable for: Any vessel operator whether owner or charterer.

Examples of incidents

  • Strike, lockout, partial or general restraint of labour, rebellion
  • Insurrection, riot, civil commotion, political protest, action by environmental objectors or religious zealots
  • Fire, explosion, mechanical breakdown on land
  • Indirect effects of certain weather conditions
  • Earthquake, volcanoes, avalanche, landslide
  • Aircraft impact, accident or misdirection of air cargo
  • Loss or damage to vehicles, vessels or aircraft transhipping cargo or spare parts
  • Lawful closure of port/waterway
  • Physical obstruction, unforeseeable high/low levels of water of port/waterway
  • Border closures, import/export controls
  • Physical or electronic sabotage, terrorism
  • Expropriation, confiscation, seizure of cargo

Class III Onboard Incidents

Suitable for: Any owner or bare boat charterer operating vessels, i.e. Spot/Voyage/Time Out/Liner.

Examples of incidents

  • Crew and officers strikes
  • Collision, stranding, grounding, or striking of fixed or floating objects
  • Single Incident Limit: 14 days or more
  • Delay commenced within 60 days after the original incident. Minimum excess: 4 days
  • Illness, injury, death on board or directly caused by the entered vessel
  • Actual or alleged presence of drugs on board
  • Desertion of members of the crew
  • Quarantine
  • Actual or alleged pollution by the entered vessel
  • Certain detentions of an entered vessel in the same beneficial ownership or management
  • Stowaways, saving life at sea, rescuing of refugees
  • Fire, explosion or breakdown in machinery*
  • Single Incident Limit: 14 days or more
  • Delay commenced within 60 days after the original incident. Minimum excess: 7 days
  • * Certain types of vessels only, of less than 15 years of age. Mainly covering propulsion, electrical and steam plant problems
  • Piracy, kidnap and ransom

Where does delay cover fit

Hull & Machinery

Covered

  • Physical loss of or damage to vessels
  • Breakdown of machinery
  • Accidents in loading, discharging, bunkering

Not Covered

  • Time lost in connection with covered incidents

Loss of Hire

Covered

  • Breakdown of machinery
  • Collision, grounding, stranding, striking FFO’s

Not Covered

  • Usually the first 14 days of covered incidents
  • Time lost in connection with incidents not coverd by H&M policy

Protection & Indemnity

Covered

  • Liabilities, losses, expenses & costs incurred
  • Expenses related to injury, illness, death on board
  • Stowaways
  • Collisions, striking FFO’s
  • Pollution, quarantine

Not Covered

  • Time lost in connection with covered incidents

Delay

Loss of time and consequential loss of entered vessels' declared daily entered sum.

Typical situations covered

  • Strikes, boycotts, actions by environmental objectors, industrial disputes
  • Collision, grounding, stranding, striking FFO's
  • Indirect effects of certain weather conditions
  • Fire, explosion, mechanical breakdown on land
  • Port closures, obstructions, or high levels of water
  • Illness, death or injury on board the vessel or caused by the vessel
  • Stowaways, saving life at sea, rescuing of refugees
  • Desertion of the crew
  • Presence of drugs onboard (actual or alleged)
  • Pollution caused by the entered vessel (actual or alleged)
  • Quarantine

    • ... and more.

Type of Operator

All operators are exposed to financial losses caused by delays to their vessels. Their exposure will be determined by the type of activity and the contractual base on which vessels are operated.

Class I & II Delays caused by Shore Incidents

Strike, lockout, restraint or labour, rebellion

Fire, explosion, mechanical breakdown on land

Indirect effects of certain weather conditions

Earthquake, volcanoes, avalanche, landslide

Aircraft impact, accident or misdirection of air cargo

Loss or damage to vehicles, vessels or aircraft transhipping cargo or spare parts

Lawful closure of port / waterway

Physical obstruction, unforeseeable high/low levels of water of port / waterway

Border closures, import/export controls

Physical or electronic sabotage, terrorism

Expropriation, confiscation, seizure of cargo

Class III Delays caused by Onboard Incidents

Crew and officers strikes

Collision, grounding , stranding

Ilness, injury or death

Presence of drugs on board

Actual or alleged pollution by entered vessel

Desertion of members of the crew

Action of authorities

Stowaways

Quarantine

Fire, explosion or breakdown in machinery

Piracy, kidnap and ransom

Membership

The Associations operate on the principle of mutuality, which means that Members share each others’ losses proportionately over the year.

Due to the size and wide spread of the Associations’ entered tonnage, the overall cost of Membership has been kept to a minimum.

The initial call for entry of a new Member depends upon the maximum number of days and the deductible of the policy, and also on such factors as trading patterns, and type and number of vessels.

Application for entry should be sent to the Associations’ Managers (Please see contacts at the end of this brochure). The daily entered sum should be based on the estimate of the daily running costs of the vessel or, in the case of a charterer, the daily hire rate and other operational costs.

The daily entered sum is the base upon which calls are calculated and the Member with a claim is reimbursed on this basis for the delay of the vessel in excess of the applicable deductible.

Call History by Class

Class I

Class II

Class III

 

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