Friday, February 15, 2019

CMIP and the National Alliance

“I’m Late, I’m Late for a Very Important Date” is one of my earliest memories – a quote from Lewis Carroll’s book Alice’s Adventures in Wonderland.   It was spoken by the White Rabbit now made famous by Disney.

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As I write this I feel very much like the White Rabbit in finally being able to formally release the two CMIP seminars for April 9th & 10th at our favorite Renaissance Hotel in International Plaza in Tampa. 

We will be offering two concurrent seminars:
                         
Insuring Vessels Owners & Operators and
CMIP Graduate Seminar

To register or for more information please go to http://iimis.org/Schedule/CMIPSeminarTampa

There is, what I trust you will agree, a good reason for the delay and that has been the now completed agreement with The National Alliance to take over the administration of CMIP for us.   We will be sending out a detailed announcement shortly, but this gives us an incredible opportunity to use their expertise in running top-class insurance seminars, along with the specialty knowledge of our faculty, to build on 12 years of CMIP and expand that further.  More on that later.

What it means for you is IF you are a CIC, CRM or CPRM you can earn your annual update credits for any of those designations at our CMIP seminars from now forward.

In addition, down the road, we will be introducing other methods of training.

More detail on these exciting developments for CMIP and CIC’s future will follow.


Ian Greenway

Monday, January 7, 2019

The Importance of On-Hire Surveys for Bareboat Charters

We cover a great number of risks where the Insured bareboat charters the vessel from the vessel owner.  Typically, most carriers require on and off hire surveys, but they make sense even when not required.

A bareboat charter, sometimes referred to as a demise charter, is a type of chartering or hiring of any kind of vessel, with no crew.  It is up to the company taking possession of the vessel to operate and care for the vessel.  It can be compared to renting a car from a rental agency, such as Hertz or Avis. It is up to the party in possession to properly operate and ensure the property being given to them is in good condition.


An on-hire survey does not need to be all that complicated. It can be as simple as walking around the vessel with the owner at the time of hand off, completing a checklist, and taking pictures of existing damage. A professional surveyor might be useful and helpful as the vessel value or complexity increases. 

It is also, very useful to have an off-hire survey when the charter is complete to document the condition the vessel is returned.  Having an on-hire and off-hire survey can simply show the difference in the condition that occurred for the duration of the charter.  With this, any disputes should be easily remedied as there will be an abundance of proof to justify or disprove any arguments in changes in condition.

The survey becomes most important when considering deductibles.  When there are six separate “dings” on the surface of a barge, was that six separate occurrences, therefore six different deductibles? Or was it a single occurrence and just a single deductible?  Having a clear plan when the vessel is hired is a great way to ease the issues when the claim comes.

Whether it is required or optional, it is always in the best interest of the Insured to have a clear document of the condition of the vessel at time of hire, so when the vessel is returned in the same condition, everyone is happy.



Author
Mark Greenway
Director of London Market and Special Placement