Loss of Ships records Oslo 20. November 2013 Karl Petter Mhlbradt - - - PowerPoint PPT Presentation

Loss of Ship’s records

Oslo 20. November 2013 Karl Petter Mühlbradt - Senior Claims Adviser Gard AS

Agenda

• The backround for discussing loss of ship records
• H&M insurance – wear and tear
• Instruction to Surveyor
• The ISM Code om Maintenance Records
• The Class
• Sales Contracts
• Summary

The Background

• When a vessel changes ownership the rule is that the outgoing

technical manager removes the PMS (Planned Maintenance System) containing all maintenance and service records from the ship.

• Consequenses:

− No fluid take-over of the vessel by the new crew − No maintenance records left om board − No list of short and long term maintenance to be carried out − Increased risk of required maintenance being overlooked − Increased risk of incorrect handling of equipment − Increased risk of serious breakdowns due to pure lack of knowledge

• f the ship’s history

Backround (cont.)

• And as quoted in a recent

edition of «Tradewinds»:

• The owner of a secondhand

ship is in a worse position than the buyer of a secondhand car!

Hull & Machinery Insurance – wear and tear

• Nordic Conditions: The insurer is not liable for costs incurred in

renewing or repairing a part which was in a defective condition as a result of wear and tear, inadequate maintenance etc. (§ 12-4)

• English Conditions ITC-83: The insurer is not liable for ordinary wear

and tear (MIA Section 55)

• German Conditions: Underwriters are not liable for loss or damage

caused solely by wear and tear (ADS Clause 59)

• Consequently it is an important part of the task of the Surveyor,

Claims Handler and Adjuster to check and evaluate if a damage is caused by wear and tear.

Instruction to Surveyor – In general

• Establish the facts relevant in

making a fair and correct insurance settlement

• Identify courses of action and

estimating the costs involved

• Specification of the repair work
• Obtaining tenders
• Suprvising and checking repair

work

Instruction to Surveyor - Specific

• In order to ensure a fair and

correct insurance settlement, the surveyor must include in his report: − Class status − ISM status − Maintenance status

Quotes from service reports

The Class Records

• The Class records will always be available to the Owner of the ship. If

a new Owner wants to inspect the Class records, then the present Owner must give instruction to the Class.

• For CMS (Continuous Machinery Survey) records carried out by a

Chief Engineer, the basis and where the records are gathered for presentation to the Class Surveyor is the on board PMS.

• When the PMS is removed also the records the CMS was based on is

lost for the new Owner (and the Class)

So how do we handle such situations

• Ask Owners if they can get hold of previous maintenance records for

the component

• Ask Surveyor for additional evidence on board
• But:
• Always try to follow the principle that the Assured shall never be put in

a better position by not producing the required documentation on the maintenance

The ISM Code (IMO International Safety Mangement Code) – Clause 10

• The ISM Code says:
• The Guidelines says:

The ISM Code – Clause 10

• Guidelines say:

The Saleform 2012

• Nothing here about Ship Records, Planned Maintenance System or
• ther Records of Maintenance and Repairs
• It is also an issue if the PMS is Seller’s or Manager’s property

The Saleform 2012

The Saleform 2012 – In practice

CEFOR Change of Conditions Clause

• Be careful when including this clause! Many interpretate this clause to

cover for old damages that results in a breakdown after purchase of a

• vessel. That is not the intention!

Summary

• We can accept that Managers

computers and licenced PMS programs are removed

• However, Owners, Class, Flag,

Insurance should not accept that historical maintenance records and service history are not following the ship throughout its life.

• The Saleform used for S&P of

ships should be modified

• The ISM Code should be

modified to reflect the intention with the code.

Summary (Cont.)

• And finally:
• Should the H&M conditions

include a clause which oblige the Owners to be able to present ship records in case of a claim?

• THANK YOU FOR YOUR

ATTENTION!