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Company Operational Manual(COM) Insurance 5.1 Hull & Machinery Claims |
Doc No.: COM 5.1
Revision: 1 Date: 15 Oct 2024 Issued by: DPA Approved by: MD |
5.1 Insurance
This procedure ensures that the placement of insurance and insurance claims arising from an incident involving a vessel in the managed fleet are handled promptly, efficiently and in accordance with all applicable laws and regulations.
This procedure should be used in association with the Crewing chapter and the Technical chapter of this manual as required.
1 APPLICATION
This document applies to Owner, Master/Chief Engineer (CE), SMO team, Insurance, Broker/Insurer and Vessel Accounting (VA).
2 PURPOSE
This document is an overview of the Hull and Machinery (H&M) claims process. H&M insurance covers the following main categories:
- Loss/Damage to vessel
- Hull and machinery damage
- Collision and grounding
- Foundering
- Boiler damage
- Fire and explosion
- Stranding
- General average and salvage
Instructions for the Master can be found in FOM-6.3 Insurance.
3 HULL AND MACHINERY CLAIMS PROCESS WORKFLOW
3.1 General
The workflow for this process is illustrated in Figure 1 below.
Figure 1. H&M Claims Process
4 RESPONSIBILITIES WITHIN THE WORKFLOW
| Function | Responsibility |
|---|---|
| Owner | Approve and/or comment on the claims summary and thereafter to approve the draft adjustment |
| Insurance Manager/Claims Handler | Advise VM of the terms and conditions of the H&M policy and deductible quantum Monitor progress of the repairs till completion |
| H&M Insurer/Claims Handler | Deploy H&M surveyor to conduct damage survey and subsequent follow up repair surveys Ensure preliminary report issued in a timely manner followed by a formal report Adjust the claim once full repair summary is received from the VM/Broker |
| Vessel Accountant (VA) | Opening and closing of claim pending number |
5 INSURANCE DEPARTMENT ACTIVITIES
5.1 Policy terms and conditions
Insurance department shall advise the VM on the policy terms and conditions, and the deductible quantum applicable etc.
5.2 Pending account number
Insurance department shall inform VA to open claim pending number and copy parties concerned if claim is estimated to exceed deductible by the H&M surveyor and VM.
5.3 Progress of damage repairs
Insurance department shall monitor progress of the repairs till completion.
5.4 Claims submission
Insurance department shall assess if claims submission is complete and in order upon receipt of claims summary from VM.
5.5 Track reimbursement of claim proceeds
Insurance department shall track that settlement funds are fully received by Owners once the claims adjustment is approved by Owners.
5.6 File closure
Insurance department shall:
- Check with VM if any matters outstanding once Owners confirmed full receipt of settlement funds
- Inform VA to close the file and copy all concerned if no matters outstanding
6 BROKER/INSURER ACTIVITIES
The Brokers/Insurers shall:
- Ensure that the H&M surveyor issues the preliminary report soon after inspecting the damage followed by the formal survey report. Thereafter, the surveyor will monitor the progress of the repairs and conduct follow up surveys as necessary
- Adjust the claims upon receipt of full and final submission of repair bills from the VM and will issue a draft adjustment in a timely manner
- Collect the respective settlement funds from participating underwriters upon approval of the adjustment by the VM and Owners
- Inform Insurance Department when full proceeds are received by the Owner
7 VESSEL ACCOUNTING ACTIVITIES
7.1 Creation of claim pending account
Vessel Accounting shall create the claim pending account number upon request by Insurance Department as advised by VM.
7.2 Closure of pending account
Vessel Accounting shall proceed to close the pending account as informed by Insurance Department upon Owner’s acknowledgement of full receipt of claim proceeds.