Risk Bulletin

Number 14 Sept 2010

Hull Claims Guidelines

Report published by Allianz Risk Consulting

Introduction
These guidelines are intended to facilitate the smooth handling of marine hull claims. Under this policy, between underwriters and the insured, AGCS believes that if the following guidelines are mutually agreed and adhered to, then there can be greater transparency and cooperation, enabling claims to be managed and resolved more swiftly. This, in conjunction with our Underwriting and Loss Control Engineering expertise, constitutes our complete package offering to the insured.

5. The insured is required to fully co-operate with the handling and pursuit of any recovery against third parties. 6. In the event of an unrepaired damage claim, the insured is required to provide full co-operation with AGCS. This includes advising AGCS if the vessel is sold. If the vessel is not sold, the insured should formally advise AGCS of its intention to make an unrepaired damage claim, when the policy has expired. This will help to ascertain the likely claim amount, at the earliest opportunity. 7. If an average adjuster needs to be instructed, the insured should consult with AGCS before their appointment.

Insureds duties and responsibilities

1. All incidents that may result in a claim under the policy should be notified without delay to AGCS by the insured or via their broker. All such notifications to be made as soon as possible but no later than 7 days after discovery of such incidents. 2. At the time of any survey, the insured in conjunction with the surveyor should make all reasonable efforts to assess and agree the extent and amount of damage, the repairs necessary and action required, including the tender process. The tender process will involve an appropriate specification, to be drafted by the insured and agreed by the surveyor. Quotations should be requested from a minimum of 3 repair facilities, the selection of which should be subject to the surveyors approval. The choice of the repair facility selected to undertake the repairs is also to be agreed by the Surveyor. Any negotiation with the repair facility with regard to the repair accounts and their approval, should also be agreed by the Surveyor in conjunction with the insured. 3. To help the insured with loss prevention and mitigation, the cause of loss needs to be established as soon as possible and should be agreed at time of the survey. If not (e.g. if it involves machinery damage), then the insured and the surveyor should agree a strategy for ascertaining the original cause of loss at the time of the survey. This process will also enable AGCS to assess causes and trends 4. In the event of a CTL, the insured is required to fully co-operate with AGCS and/or their appointed third party service providers, in regard to the disposal of the wreck, to ensure that maximum proceeds are achieved.

AGCS duties and responsibilities

1. AGCS will provide all the required advice, guidance and support, in conjunction with appointed third party service providers, with regard to any casualty covered under the policy between the insured and AGCS, as lead insurer. 2. AGCS as lead insurer is responsible for determining which surveyor is instructed to act on behalf of all Underwriters. Broker will advise the insured once details of the surveying firm are known. 3. If a lawyer is required, AGCS is responsible for selecting the law firm, but will consult with the insured before a decision is made. 4. AGCS is responsible for agreeing interim and final claim settlements within the terms and conditions of the policy, but only for their proportion. AGCS will also recommend settlement to following underwriters but will not be responsible for their proportions. 5. AGCS is responsible for agreeing to pursue recoveries from third parties. This includes the instruction of all third party service providers to assist with recovery attempts. 6. AGCS will be responsible for communicating any questions or comments on any claim to the relevant party. A copy will simultaneously be sent to the broker for retention on the claim file.

Graham Bell Senior Risk Consultant Marine Tel: +44.20.3451.3772 graham.bell@allianz.com www.agcs.allianz.com

Surveyors duties and responsibilities

1. The Surveyor will maintain dialogue with the insured and follow up all outstanding action points with the insured. 2. The Surveyor is responsible for assisting the insured in ensuring that the process for tendering for repairs is adhered to. 3. The Surveyor, in conjunction with the insured, is responsible for establishing the original cause of loss. 4. The Surveyor will simultaneously copy all communication with the Average Adjuster to AGCS and the Broker. 5. The Surveyor will simultaneously copy all damage survey reports to AGCS and the broker. 6. The Surveyor is responsible for reporting any concerns of any nature whatsoever on any claim to insurers.

Duties of the Broker

1. The broker is to notify AGCS within 24 hours of receipt of advice from the insured that there has been an incident that may result in a claim under the policy. 2. The broker is to ensure the electronic claim reporting system CLASS is accurately populated with appropriate information for each claim notified. 3. The broker is responsible for ensuring prompt collection of funds from insurers. 4. The broker is to ensure that any communication from AGCS for the insureds attention is forwarded on in a timely manner.

General
In the event of any discrepancy between these guidelines and the policy, the policy will prevail.

ARC-RB-14-en

Disclaimer & Copyright Copyright 2010 Allianz Global Corporate & Specialty AG. All rights reserved. The material contained in this publication is designed to provide general information only. Please be aware that information relating to policy coverage, terms and conditions is provided for guidance purposes only and is not exhaustive and does not form an offer of coverage. Terms and conditions of policies vary between insurers and jurisdictions. Whilst every effort has been made to ensure that the information provided is accurate, this information is provided without any representation or warranty of any kind about its accuracy and Allianz Global Corporate & Specialty cannot be held responsible for any mistakes or omissions.