Definitions:
• Insurance value: the total cover required
• Insurance premium: the amount to be paid annually to the insurance company. It is always a specific percentage of the value and, in most cases, paid in four installments annually
The ship owner is, in many cases, forced to cover his ship with insurance because it is required by a charterer or by the port authority, not always his desire to protect his boat and properties
The value of the insurance depends on the following factors:
• Insurance company policy
• Owner requirements: The value he needs
• Area of navigation: War regions increase the insurance premium and decrease the cover value
• Class of the ship: standard and reputation of the class encourage the insurance company to accept a higher cover value
• Age of the vessels: Old ships pay a higher premium and get a lower cover value
Documents issued by the insurance company:
• Insurance policy: states all terms of the insurance. Valid for one year
• Insurance certificate (blue card): is issued upon request from the owner to submit to a third party, such as a flag or charterer, and in all cases, should be addressed to the required party. The insurance can issue more than one blue card to state the cover of different items such as Bunker, Wreck removal, etc
Documents needed for the insurance
• Copy of valid flag certificates
• Copy of valid class and statutory certificates
• Application
Types of ships insurance are as follows:
• Hull and machinery insurance: it covers the partial damage of the ship hull or machinery and also the total loss of the ship
• Protection and Indemnity (P&I): this insurance covers the compensation imposed on the owner due to one of the following or all:
o Crew compensations due to sickness or injuries during their duty
o Pollution cases either by cargo or Bunker
o Wreck removal
o Accidents
• Cargo insurance: sometimes included in P&I and sometimes individual when higher values are required
Always be sure that P&I insurance covers the Bunker and wreck removal as a minimum to be able to process the BCC and WR certificates by the flag
This Article is brought to you by ‘JUNIOR ANGABUA CHUO ANGABUA ESQ. LL.B, Dip Computer, BL, & AAIADR.
Legal Practitioner cum expert in Maritime law in Cameroon, banking, Insurance, International Trade, and Ship Brokerage in Cameroon.
Founder and Lead counsel of Prime Time Law offices.
In case of any assistance or inquiries on the above subject matter, kindly contact us by clicking the contact page.
Article by CHUO ANGABUA JUNIOR
‘’The content of this article is intended to provide a general guide to the subject matter. We advise specialist advice be sought depending on your specific circumstance’’
TO TALK WITH A SPECIALIST
