MARINE CIRCULARS - 2005
| Cir No | Date | Subject |
| M-Hull/Cir-01/2005 | 17/01/2005 |
Section XIV of Marine Hull Manual - Tariff for Builders Risks Insurance -VII - Yard Discount / Loading - X - Deductibles |
| M-Hull/Cir-2/2005 | 14/03/2005 | De-tariffing of Marine Hull Insurance |
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M-Hull/Cir-01/2005 17th January, 2005
Section XIV of Marine Hull Manual -Tariff for Builders Risks Insurance -
VII - Yard Discount / Loading -X - Deductibles
As per the Tariff for Builders' Risk Insurance a reference had to be made to the Committee for imposition of loadings where the yard's loss ratio exceeds 75%.
The Committee has now decided to provide loading slabs upto a loss ratio of 300% for application by insurers. For the sake of uniformity and clarity, the Committee has also decided to replace the expressions "Credit Balance" and "Reduction" in the tariff by the expressions "Loss Ratio" and "Discount" respectively.
Consequently, the amended Tariff provisions will read as under:
VII. YARD DISCOUNT / LOADING:
A. Discount for Good Claims Record:
The following reductions off the scale rates may be granted based on figures relating to vessels delivered over the preceding period of 5 years and with claims adversely affecting the figures on vessels still under construction at the yard, also being taken into account:
| Loss Ratio | Discount on TL/OTL component of rate |
| Not above 10% | 30% |
| Above 10% but not above 15% | 25% |
| Above 15% but not above 20% | 20% |
| Above 20% but not above 25% | 10% |
The above discounts may be allowed only if the Policy is issued in the name of the Builder or in the joint names of the Builder and the Owner. No discount shall be allowed under the Policies issued in the name of the Owner.
B. Loading for Adverse Claims Record :
Where figures prepared on the basis set out above show a loss ratio of 75% or more for a Yard, the scale rates and the deductibles shall be loaded as under:
| Loss Ratio | Loading on TL/OTL component of rate | Loading on Deductible |
| 75% or above but not above 100% | 10% | 10% |
| Above 100% but not above 150% | 25% | 25% |
| Above 150% but not above 200% | 50% | 50% |
| Above 200% but not above 300% | 100% | 100% |
| Above 300% | To be referred to the Committee | |
Consequent upon the amendments as in B above, the relevant provisions under 'Deductibles' shall be modified as under:-
X. DEDUCTIBLES :
"The following deductibles shall apply :
(i) Category A, B, C & D.
0.05% of the provisional contract value subject to a minimum of Rs. 1,500/- and a maximum of Rs. 6,00,000/- all claims, including collision liability, S&L, P&I and removal of Wreck, other than TL, or CTL. However, in cases where loading for adverse claims apply as per tariff provision VIII - Yard Discount / Loading, the applicable maximum deductible would be Rs. 9,00,000/-."
Insurers are requested to advise their operating offices suitably.
Secretary
M-Hull/Cir-2 /2005 14th March, 2005
Re: De-tariffing of Marine Hull Insurance
Insurers are hereby advised that all classes of Marine Hull Insurance stand de-tariffed in respect of new business and renewals effective 1st April 2005.
As a consequence, these classes of insurance will come within the purview of the "File and Use" regulations, as applicable to non-tariff products, of the Insurance Regulatory and Development Authority, with effect from 1st April 2005.
Secretary