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Page 1 of 135 INTRODUCTION TO THE GUIDE........................................

Page 1 of 135 INTRODUCTION TO THE GUIDE..................................................................................................................... 2 LIABILITIES IN RESPECT OF THIRD PARTIES OTHER THAN PASSENGERS, SEAMEN AND STEVEDORES - RULE 20.1.1 ............................................................................................................................. 3 LIABILITIES IN RESPECT OF PASSENGERS - RULE 20.1.2......................................................................... 5 CREW CLAIMS - RULE 20.2 ............................................................................................................................ 10 LIABILITIES IN RESPECT OF STEVEDORES-RULE 20.3 ........................................................................... 23 COLLISION LIABILITIES FOR DEATH, INJURY OR ILLNESS - RULE 20.4 ............................................ 26 DEATH, INJURY OR ILLNESS ARISING OUT OF THE CARRIAGE OF CARGO - RULE 20.4.A............ 28 REPATRIATION AND CREW SUBSTITUTION - RULES 20.5 AND 20.6.................................................... 29 LOSS OF SEAMAN'S EFFECTS - RULE 20.7.................................................................................................. 30 SHIPWRECK UNEMPLOYMENT INDEMNITY - RULE 20.8....................................................................... 31 PORT AND DEVIATION EXPENSES - RULE 20.9 ........................................................................................ 32 LIFE SALVAGE - RULE 20.10.......................................................................................................................... 35 COLLISION RULES - RULE 20.11 and 20.12 .................................................................................................. 36 DAMAGE TO PROPERTY (OTHERWISE THAN BY POLLUTION) - RULE 20.13 .................................... 48 POLLUTION - RULE 20.14 ............................................................................................................................... 54 POLLUTION TABLES - RULE 20.14 ............................................................................................................... 64 DAMAGE CAUSED OTHER THAN BY COLLISION (WASH DAMAGE RULE) - RULE 20.15................ 80 TOWAGE CLAIMS - RULE 20.16 .................................................................................................................... 81 LIABILITY UNDER CONTRACTS FOR HIRE OF CRANES, LIGHTERS OR OTHER LOADING AND DISCHARGING APPLIANCES - RULE 20.17 ................................................................................................. 86 WRECK REMOVAL - RULE 20.18................................................................................................................... 87 QUARANTINE EXPENSES - RULE 20.19....................................................................................................... 90 CARGO CLAIMS - RULE 20.20 AND 20.21 .................................................................................................... 91 COLLISION LIABILITY TO CARGO CARRIED IN AN ENTERED SHIP - RULE 20.22.......................... 111 GENERAL AVERAGE AND SALVAGE - RULE 20.23 & 20.24.................................................................. 112 FINES AND CONFISCATION - RULE 20.25-29 AND RULE 20.37............................................................. 115 ENQUIRY EXPENSES - RULE 20.30 ............................................................................................................. 120 EXPENSES ARISING FROM INTERFERENCE BY LOCAL AUTHORITIES - RULE 20.31 .................... 121 EXPENSES INCIDENTAL TO SHIPOWNING - RULE 20.32 (OMNIBUS RULE) ..................................... 122 COSTS OF SUE AND LABOUR - RULE 20.33.............................................................................................. 124 EXPENSES INCURRED BY DIRECTION OF THE BOARD - RULE 20.34 ................................................ 125 CONTRACTUAL COVER - RULE 20.35........................................................................................................ 126 SALVORS' LIABILITY - RULE 20.36 ............................................................................................................ 127 EXCEPTIONS, EXCLUSIONS AND LIMITATIONS ON COVER AND DEFENCES OPEN TO THE CLUB ........................................................................................................................................................................... 128 Page 2 of 135 INTRODUCTION TO THE GUIDE We have published two editions of the Standard Club's Guide to P & I, which is intended for masters and insurance managers. The Guide discusses the rules under a number of headings: cover, law, claims prevention and, in some cases, claims handling. Originally, the Guide was intended for insurance managers to explain to them the cover provided by the Club, but during the original writing we concentrated as much on claims control and prevention. The Board and the Managers of the Club have for some years been convinced that considerable progress can be made and has been made in reducing claims by explaining to masters and senior officers the lessons the Club has learnt from its investigation of past claims. Therefore, we hope that this Guide will prove of interest to the seagoing as well as the shore staff of the members of the Club. Page 3 of 135 LIABILITIES IN RESPECT OF THIRD PARTIES OTHER THAN PASSENGERS, SEAMEN AND STEVEDORES - RULE 20.1.1 A. COVER The Club covers under this Rule any liability a member has for loss of life, injury or illness to anyone other than seamen, passengers or stevedores, arising out of some negligent act on board of or in relation to the entered ship, or arising out of an indemnity to the owners of a dock or drydock, and this includes port authorities. Note: * The Rule covers death, injury or illness to visitors, surveyors, pilots or concessionaires but not to wives of crewmembers who may be on the ship; liabilities for such people are covered under the seaman's rule, because the definition of seaman in the Club rules includes any relative of the seaman carried on the ship. * The injured person does not have to be on the ship. The negligence merely has to have occurred on board or in relation to the ship. However, liability for injuries on another ship is covered under Rule 20.4. * Liability arising under an indemnity is only covered if the terms of the indemnity have been approved by the Managers. The Club's position on indemnities will be considered in detail under Rule 20.13. Indemnities arising in the normal course of trading are generally covered but the clubs try to insist, first, that the shipowners are entitled to limit their liability under the indemnity, and second, that the shipowners are entitled to a complete defence if the claim has been caused by the sole negligence of the party seeking the indemnity. Pilots are often landed from helicopters and there are special provisions governing indemnities to helicopter operators. B. LAW A shipowner is obliged under the law of most countries to take reasonable care to make sure the ship is safe for anybody who goes on board. The normal rules concerning negligence apply, but US courts have held that a shipowner owes no duty to warn an experienced pilot of the obvious dangers of boarding a vessel in rough seas. C. CLAIMS PREVENTION Probably the greatest risk under this rule is injury to pilots boarding and leaving ships. Whenever a pilot boards or leaves a ship an officer should inspect the pilot ladder before permitting the pilot to use it. During the transfer one seaman should be standing by with a ring buoy and another to handle the pilot's case. The master should always have in mind a plan of action if the pilot falls into the sea. Pilot ladders on large ships or ships with very high freeboards require special consideration and special boarding procedures. Pilots usually board from high speed launches with the ship making a lee for the launch. The pilot should always be boarded with the ship at the lowest possible speed consistent with keeping steerage. As the launch approaches the pilot ladder it may cease to be visible from the bridge and an officer with a portable radio telephone should report the position of the launch to the bridge. There are detailed regulations in the 1974 SOLAS Convention about the construction of pilot ladders. Page 4 of 135 Injured surveyors can also claim under this rule. Surveyors should always be accompanied and required to wear protective clothing. They should not be allowed to enter an enclosed space without the atmosphere being tested and the space ventilated properly. (See Standard Safety Issue 4 – Slips and falls) Claims for personal injury can be brought in the United States up to three years after the incident. In three years it is likely that crewmembers will have forgotten what has happened, whereas a claimant may have given a detailed statement to his lawyer immediately after the accident. It is therefore very important for ship's officers to carry out a proper investigation of any incident which has occurred or been reported. This is especially important in the United States. The Club correspondent should also be advised. The latter, as well as being able to carry out a full investigation, will be able to check whether the third party returns to work in the weeks and months after the ship leaves and can give adequate warning of a potential claim to the Club and the owner. (See Masters’ Guide to Shipboard Accident Response – Death or Injury) Page 5 of 135 LIABILITIES IN RESPECT OF PASSENGERS - RULE 20.1.2 A. COVER 1. The Rule covers: (a) damages or compensation for loss of life, personal injury or illness of passengers; (b) damages or compensation to passengers on board, for which an owner is liable in consequence of a casualty to the entered ship, including the cost of returning the passengers to the port of embarkation and of their maintenance ashore; (c) loss of or damage to passengers' baggage or effects but cash, bonds, jewellery and other precious objects are excluded. 2. Provisos to and exclusions from cover: (a) Carriage of passengers by air: liability to passengers transported to and from vessels by air is excluded regardless of whether such carriage occurs before or after the cruise or during an excursion. The only cases where the Club covers a member's liability for passengers being carried by air is when the passengers are ill or injured and have to be repatriated by air, or when they are on an excursion, subject to the provisos about excursions set out below. (b) Shore excursions: the Club covers a member's liability in tort or under the original passenger ticket to passengers on shore excursions but the Club will not cover a member's liability if a separate contract has been entered into by the passenger for the excursion, or if the member has waived his right of recourse against any sub-contractor who has arranged the excursion. (c) Ticket conditions: the Rules require that the ticket must exclude liability to the maximum extent permissible under the appropriate law. The US Federal Maritime Commission requires passenger ships which embark passengers at US ports to provide two guarantees to the government; one relates to passenger injuries and death and is provided by the clubs; the other is a guarantee uploads/Ingenierie_Lourd/ pandi-guide 1 .pdf