M.Hull/Cir-1/2003                                                         Date : 28th February 2003

Re : Marine Hull Insurance -

• Initial Rating of Ocean-going Vessels
• Renewal Rating of Ocean-going Fleets

As of now, the insurers are required to collect adequate provisional premium towards initial and renewal rating of Ocean-going Vessels/Fleets as per the relevant norms and other related provisions laid down by the Committee and, thereafter, apply to the Committee for approval of the same.

• In this connection, it has been decided as under :
  1. To authorise the Head Offices of Insurers to fix initial and renewal rates on ocean-going vessels/fleets as per the relevant norms and provisions laid down by the Committee, without having to seek TAC's approval. This will be effective from 1-4-2003.

1. Where provisions are not available to cater to certain specific cases or situations, insurers should continue to make reference to TAC for advices.

Insurers are requested to advise their operating offices suitably in the above regard.

SECRETARY           

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M.Hull/Cir-2/2003                                                                         Date : 1^st August, 2003

Re : Marine Hull Manual -

It has been decided to make following changes in the captioned Tariffs :

(i) Section IX : Tariff for Inland Vessels

(ii)Section X : Tariff for Dredgers

It has been decided to incorporate the following provision in the Tariff for Inland Vessels as also in the Tariff for Dredgers under Sub-Section - 1 : General in each case :

"10: MINIMUM PREMIUM :

Minimum Premium of Rs.1000/- per vessel may be charged for Time/Voyage cover".

(iii) Section XIV : Tariff for Builders’ Risks Insurance :

It has been decided to add the following provision at the end of item VIII : YARD DISCOUNT/LOADING :

"Reduction off the scale rates, as above, shall be granted as per the Credit Balance of the Yard as at the time of commencement of a particular policy."

Insurers are requested to advise their operating offices suitably in the above regard.

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M.Hull/Cir-3/2003                                                             Date : 1^st August, 2003

Re : Fixing Initial Rates on Ocean-going Vessels in respect of which Matrices have not been provided in the Rating Guidelines dt.1-4-2001 

As the Insurers are aware, initial rates on Ocean-going Vessels, rateable by the Committee, are to be finalised by Insurers themselves as per the provisions contained in the Rating Guidelines effective 1-4-2001, which provide separate TL and OTL Matrices in respect of such vessels.

However, in case an Insurer is required to quote or charge a rate in respect of an ocean-going vessel for which Matrices have not been specifically provided, the Insurer is required to take the following approach :

The Insurer should calculate rates taking the appropriate TL and OTL Matrices of Dry Cargo Vessels as the base. Suitable modification on the Matrix rates should be made for Trading Warranties (other than Institute Warranties) as also for Conditions of Insurance (other than ITC Hulls dated 1-10-1983) as provided in the Guidelines.

If the fleet to which the vessel is attaching had attracted a penalty of 10% or more at the commencement of the renewal period during which the subject vessel is attaching to the fleet, then the rate arrived at as above shall be enhanced by the same percentage of the penalty. If, however, the said penalty percentage attracted by the fleet would be less than 10%, or if the insurances at the said renewal were effected on "as expiring" basis, then the rate arrived at as above shall be enhanced by 10%.

No discount on the rate arrived at as above shall be allowed even if the Fleet Rating Level at the commencement of the renewal period during which the subject vessel is attaching to the fleet happens to be less than 100% or the fleet has merited any reduction in rate at the said renewal.

In case the renewal rating of the fleet for the period during which the subject vessel is attaching to the fleet has not been finalised for any reason, then the rate arrived at as above shall be enhanced by 10%.

The Insurer should quote or collect premium at rate arrived at as above. However, while so doing, the Insurer should clearly advise the Insureds that the rate quoted as above are ‘Strictly Provisional’ and are subject to approval of the TAC.

Insureds should also be advised that the rates are subject to the understanding that the vessel had not been rated earlier for the same Insured.

Thereafter, the concerned Insurer should approach the TAC for obtaining the rate.

The above takes effect from 18th August, 2003.

Insurers are requested to advise their operating offices suitably in the above regard.

SECRETARY

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M.Hull/Cir-4/2003                                                                     Date : 1^st August, 2003

Insurers’ attention is invited to the following provision contained in ‘Section I : General Rules & Regulations’ of the Marine Hull Manual :

"5. PROTECTION & INDEMNITY (P&I) RISKS :

a. P&I Risks shall not be covered in respect of Ocean-going Vessels other than those operating in the coastal waters of India or insured subject to any one of the following Clauses incorporating the P&I Risks :

i Institute Fishing Vessels Clauses

ii Institute Yacht Clauses

iii  Institute Time Clauses Hulls - Port Risks, with or without Limited Navigation.

However, P&I Risks may be covered subject to Clause 9 of Institute Time Clauses Hull - Port Risks dated 20-7-87 on Inland Vessels (Barges, Launches, Tugs etc.) falling within the scope of the Tariff for Inland Vessels.

b. P&I cover shall be granted only as an extension to H&M Policy".

Insurers may note that the Committee has decided that even in cases where Insureds would opt for a trading warranty wider than ‘coastal waters of India’, P&I extension can be allowed (limited to the Insured Value of the vessel as per Clause 9 of ITC Hulls Port Risks dated 20-7-1987) for the period during which the vessel would be plying in the coastal waters of India subject to incorporation of the following warranty :

"Warranted cover in respect of P&I Risks to operate only when the vessel is plying in the Coastal Waters of India".

Insurers are requested to advise their operating offices suitably in the above regard.

SECRETARY

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M.Hull/Cir-5/2003                                                                        Date : 1^st August, 2003

Insurers may note that the Committee has decided to waive the requirement of Additional Premium for covering lightening operations in the open sea as prescribed under Section VIII : Scale of Additional Premium Rates for Loading/Discharging Operations at Sea of the Marine Hull Manual.

Accordingly, this Section stands deleted from the Manual.

The subsequent Sections in the Manual (i.e. existing Section IX onwards) will, therefore, be required to be renumbered suitably.

Insurers are requested to advise their operating offices suitably in the above regard.