MARINE CIRCULARS - 2004

Cir No Date Subject
M.Hull/Cir-1/2004 23-02-2004 Marine Hull Manual Discount in Rates for Classification with Indian Register of Shipping (IRS)
M.Hull/Cir-2/2004 23-02-2004 Marine Hull Insurance - Guidelines for Insuring Speed Boats and Yachts
M.Hull/Cir-3/2004 23-02-2004 Initial Rating of New Attachments and Renewal Rating of Fleets involving
M.Cargo/Cir- 1/2004 03-03-2004 Detariff
M.Hull/Cir-4/2004 23-11-2004 Marine Hull Insurance -1. Section XI - Tariff for Fishing Vessels/TrawlersSection XII - Tariff for Sailng Vessels -Initial/Renewal Rating2. Delegation to Insurers.
M.Hull/Cir-5/2004 23-11-2004  Marine Hull Manual -Section IX : Tariff for Inland Vessels.
M.Hull/Cir-6/2004 29-11-2004 Marine Hull Manual -Section XIV:Tariff for Builders' Risks Insurance - Categorisation of Self-Propelled Barges.

M.Hull/Cir-1/2004                                                                                     Date : 23rd February, 2004

Re : Marine Hull Manual -

As the Insurers are aware, the above-mentioned tariffs contain provisions for granting discounts if the vessels are built according to the classification requirements of IRS only and/or the class is maintained singly with the IRS.

2. In this connection, it has been decided that apart from vessels 'built to' class and 'maintaining' class singly with the IRS, vessels with multiple classification by recognised Societies in addition to the IRS, shall also get the benefit of IRS discounts.

3. The above decision takes effect from 16th March, 2004.

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

Secretary

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M.Hull/Cir-2/2004                                                                                     Date : 23rd February 2004

Re : Marine Hull Insurance - Guidelines for Insuring Speed Boats and Yachts

Insurers are hereby advised to insure Speed Boats and Yachts as per the terms, conditions and rates laid down in the Tariff for Inland Vessels contained under Section IX of the Marine Hull Manual except as under :

  1. To grant insurance as per the Institute Yacht Clauses dated 1-11-1985 which may be treated on par with Institute Time Clauses Hulls Port Risks dated 20-07-1987.
  2. To fix deductible at 1% of the H&M Sum Insured.
  3. Where the insured wants to cover liabilities to Third Parties as per Clause No.11 of the Institute Yacht Clauses dated 1-11-1985, the same should be covered for a stated sum by charging additional premium at a rate not less than the H&M rate.

Secretary

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M.Hull/Cir-3/2004                                                                                 Date : 23rd February, 2004

Re : Initial Rating of New Attachments and  Renewal Rating of Fleets involving :

a) Transfer of Vessels to a New Company

b) Merger of Existing Fleet(s) with a New Company

Insurers may note that in cases of transfer of vessels from an existing fleet (owned or bareboat chartered) to a new company or merger of an existing fleet/s with a new company, which did not own any vessel prior to such transfer or merger, initial rating of new attachments and renewal rating of the fleet shall be done on the following lines by the Head Offices of Insurers themselves :

  1. Existing sums insured, conditions of insurance, deductibles, trading warranties, rates etc. of the vessels under the earlier fleets to continue even after their transfer to or merger with the new company.
  2. For the purposes of considering renewal rating of such new fleets, all past premium and claim records of the transferred vessels/fleets to be taken into account as per relevant provisions.
  3. Initial Rating of vessel(s) attaching to the new company on or after the date of transfer/merger, to be done as per the norms applicable on their respective date(s) of attachment.

2. The above decision takes effect from 16th March, 2004.

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

Secretary

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.:M.Cargo/Cir- 1/2004                                                         Date : 3rd March, 2004

Sub.: a) Tea Tariff

b) Guidelines for Issuance of Policies to the Coffee, Cardamom and Rubber Estates

c) Package Policy for Exporters covered under the Duty Exemption Scheme

Insurers are hereby advised that the above mentioned classes of business shall stand detariffed in respect of new business and renewals effective 1st April 2004.

As a consequence, these classes of business will come within the purview of the "File and Use" regulations of the Insurance Regulatory and Development Authority with effect from 1st April, 2004.

SECRETARY                                                                                                                          

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M-Hull/Cir-4/2004                                         23rd November,2004

Re: Marine Hull Insurance -

1. Section XI - Tariff for Fishing Vessels/Trawlers

Section XII - Tariff for Sailng Vessels -

Initial/Renewal Rating

2. Delegation to Insurers.

Insurers are aware that as per Section XI & XII of Marine Hull Manual / New rating guide lines effective from 1.4.2001, initial/renewal rating of Fishing vessels/Trawlers and Sailing vessels exceeding H&M Sum Insured of Rs.1 crore and Rs.50 lacs respectively have to be referred to the Committee for rating.

I. Please note that the Committee has now decided to authorise the Head Offices of Insurers to fix initial & renewal rates on the following two categories of vessels:

i. Fishing Vessels/Trawlers with H&M Sum Insured exceeding

Rs.1 crore; and

ii. Sailing Vessels with H&M Sum Insured exceeding Rs.50 lacs.

Initial and renewal rating will continue to be done as per the relevant norms laid down by the Committee (Annexures 'A' & 'B' ), without having to seek TAC's approval.

The above decision will be effective from April 1,2004.

II. Cases pertaining to previous policy periods are to be dealt with by Head Offices of the respective insurance companies at their end as per the

applicable norms.

III. 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

                                                                        Go to Index

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  M.Hull/Cir-5 /2004                                                                            29th November, 2004

Re: Marine Hull Manual -

Section IX : Tariff for Inland Vessels.

Insurers' attention is invited to Sub-Section 8 under Section IX: Tariff for Inland Vessels wherein "rates for annual and / or open cover for port crafts whilst engaged in salvage operations / assisting vessels in distress etc." are provided.

As per certain provisions under (A) Annual Basis, if a Vessel is to be employed for piloting / towing an incoming or outgoing vessel of any description or to be employed for carrying out salvage operations, the annual rate applicable to the vessel is to be loaded by prescribed percentages.

Arising out of a reference, the Committee has decided that rates on Tugs should not attract any loading for undertaking such operations since the customary operations of a TUG included towing, piloting and salvge operations etc. It was therefore decided that after 'Item (c)' appearing under "(A) Annual Basis" of Sub-Section 8, Section IX: Tariff for Inland Vessels', the following note be inserted:

"NOTE : The above provisions shall not apply to TUGS".

Accordingly, the word "Tug" given in the Example appearing in this section would be replaced by "Passenger Vessel" as given below:

 
"Example:    
Suppose that the annual rate for a Passenger Vessel as per this Tariff is .... 0.70%  
  Add: 20% for Pilotage / Towage .... 0.14%  
  Add: 10% for Salvage operations .... 0.07%  
  Total 0.91% "

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

Secretary

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M-Hull/Cir-06 /2004                                                                 29th November,2004

Re: Marine Hull Manual -

Section XIV:Tariff for Builders' Risks Insurance - Categorisation of Self-Propelled Barges.

As the Insurers are aware, the captioned tariff grouped vessels into 4 categories and provided Minimum Rates for each category, the first two being described as follows:-

 
Category Vessels Rates (applicable on Full Contract Value/Full Completed Value and Contract Period)
A Barges and other Vessels without main propelling machinery 0.35%+0.035%p.m. or part thereof
B Conventional Vessels not designated elsewhere, Drilling Rigs, Dredgers, Pipe-laying Barges, Newsprint Carriers and similar Vessels 0.45%+0.045%p.m. or part thereof

In response to an insurer's query on the matter, the Committee has decided to clarify to all Insurers that "Barges with self-propelling machinery" will continue to fall under category 'B' and to be rated accordingly.

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

Secretary                                                                                            

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