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Company Operational Manual(COM) Insurance 5.7 Additional War Risk Premium |
Doc No.: COM 5.7
Revision: 1 Date: 15 Oct 2024 Issued by: DPA Approved by: MD |
1 APPLICATION
This document applies to Owners/Commercial Managers, Insurance Department, Vessel, and Brokers.
2 PURPOSE
The purpose of this document is to provide instructions regarding the process of Additional War Risk Premium (AWRP) Quotation and Invoicing.
3 AWRP QUOTATION AND INVOICING PROCESS WORKFLOW
3.1 General
The workflow for this process is illustrated in Figure 1 below.
Figure 1. Additional War Risk Premium (AWRP) Quotation and Invoicing Process Workflow
4 RESPONSIBILITIES WITHIN THE WORKFLOW
| Function | Responsibility |
|---|---|
| Owners/Commercial Managers | Request for AWRP quotation. |
| Legal/Marine Department | Obtaining AWRP quote and advising Owners/Commercial Managers. Sending reporting reminders to vessel and providing issued invoice to Owners/Commercial Managers with copy to relevant parties. |
| Brokers | Advising insurer’s estimated additional premium quote and issuing the final invoice and cover note. |
5 OWNERS/COMMERCIAL MANAGERS ACTIVITIES
5.1 AWRP Quotation request
The process is initiated by the Owners or Commercial/Pool Managers who will request for the estimated additional premium for the potential or upcoming voyage. The final invoice is required by them for rebilling to Charterers.
6 INSURANCE DEPARTMENT ACTIVITIES
6.1 AWRP Quotation
Legal/Marine Department shall obtain the AWRP quotation from the Brokers for the following insurances where applicable:
- War Risks
- Kidnap & Ransom (K&R)
- Extended Loss of Hire
The request to Brokers should also include the following information:
- Estimated schedule
- Whether armed guards will be employed
Note:
- For vessels not insured by DNK - If the vessel intends to call waters north of 22N in the Indian Ocean, when requesting for AP quote to check if Insurers can consider the inbound and outbound trip as a single voyage.
6.2 Advising AWRP quote
Legal/Marine Department shall:
- Advise Owners or Commercial/Pool Managers of the AWRP quotation.
- Obtain P&I Club’s advice on guidelines and any security concerns/restrictions for the call and advise concerned parties.
6.3 War risk reporting
For voyages that will materialize, Insurance Department shall:
- Remind vessel on the War Risk reporting guidelines keeping relevant departments in copy.
- Track that vessel has sent the final exit report for Brokers to issue the invoice.
Guidance:
- For vessels to be tracked, request Security Department to include them in the Polestar application for entry/exit alerts to be received.
6.4 Final AWRP Invoice
Legal/Marine Department shall:
- Follow up with Brokers for the final invoice and cover note.
- Check that voyage details are correct and that amount is as per quoted.
- Forward invoice to Owners or Commercial/Pool Managers, copying Fleet Group, Vessel Accountant, and Accounts Payable.
7 BROKERS ACTIVITIES
7.1 AWRP Quotation and invoicing
Brokers shall:
- Provide estimated AWRP quote.
- Issue final invoice and cover note.
Note:
- A fee is only required for non-tanker vessel applications.