- Cargo Damage.
- Hull and Machinery damage
- Freight Loss
- Shipowners Liability
- Damage to the container or loss at sea
- Physical loss or bodily injury to the crew
- Environmental damage/Damage to Marine life due to leakage or spillage
Cargo Damage
Hull and Machinery damage
Shipowners Liability
Shipowners’ liability arises in case there is loss or damage to third-party property and cargo losses, including shortage, contamination, improper handling, loading, Etc. It should also be noted that any loss due to misdeclaration of hazardous material will not fall under the shipowners’ liability. Although liability of carriers is limited to a certain extent under different conventions like the Hague Rule, Hague-Visby rule, Hamburg rule, Rotterdam rule. But approx. 80 % of the world’s transit takes place by sea route, hence it becomes an essential part for shipowners to get their liability covered. Such liabilities are covered by the P&I club.
Which is a body formed on a mutual basis by 12 global members to ensure each other on a non-profit basis to cover their third-party liability. These clubs are commonly classified on basis of protection, indemnity, war, strike, and Charterer’s liability.
Every shipowner is provided with a rule book in place of a policy copy. Major exposures covered by P&I Insurance are liability for third party, passengers, allision, collision, Pollution liability, wreck removal, towage, Liability in respect of cargo, GA contribution, fines, legal costs, cargo liability, sue and labor, Salvors fee, repatriation expenses, etc.
Damage to the container or loss at sea
Containers are the lifeline for sea transit, but these boxes become highly susceptible to loss when any sea transit is exposed to danger. containers are either lost or too damaged to be used further. Although it becomes the responsibility of the shipping company/container owners to ensure its safety and smooth sailing, but in case of capsizing, rough weather, or sinking of the ship, it becomes inevitable to ensure its safety.
Coverage for containers under the marine policy can be taken under the Institute container clause (Time). This clause provides the widest cover for the container, whether in transit or at rest.
Physical loss or bodily injury to the crew
Environmental damage/Damage to Marine life
A vessel carrying tankers or containers stuffed with hazardous substances or oil poses’ greater level of spillage and contamination risk, which is a threat to marine life. Severity from these sorts of losses cannot be contained or quantified due to their catastrophic exposure. Such liability covers issues such as the costs of clean up, loss to fishermen, and measures taken to prevent or minimize the damage.
There are some IMO conventions which impose penalties for spillages from Bunkers, tankers, and shipowners for compensation for oil pollution damage. However, claimants don’t receive an adequate claim amount due to limitations on shipowners’ liability.
These conventions have many restrictions, like on quantum liability, tonnage, and territorial limitations. Yes, there are exceptions also; if it is proved that the pollution damage resulted from the shipowner’s act or omission, then he cannot limit his liability.
The MSC ELSA incident has raised concerns for authorities to take all pre-cautionary steps to avoid
