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Claims Assessment
• Claims assessment is a natural progressionfrom ITOPF’s on-site spill attendance
• Technical assessments for P&I Clubs, lawyers, IOPC Funds
• No guarantee that technical assessment = settlement
• Speed versus detail – overview or full assessment
Assessment Criteria
• Based on text of the Civil Liability & Fund Conventions and IOPC Fund 1992 Claims Manual
• Applied by ITOPF to all claims – consistency
• Underlying principles of reasonable measures are relevant to all incidents and all countries, irrespective of the type of pollutant or its source
Assessment Basis
• Reasonable measures - based on objective criteria:
– Response should prevent or minimise pollution damage
– Enhance natural processes
– Cleaning / Repair / Replacement of damaged property
– Level of costs / losses should be appropriate - local context
– Supported by scientific evidence
• Reducing delayselectronic copyraw invoices,narrative, maps, photographs
• Work with correspondents
local knowledge of incident
resources / rateslanguagelarge claims
Assessment Process
• Joint inspections/surveys with claimants/P&I/Fund interests
• Clean / repair / replace items
• Proof of ownership/purchase
• Check whether loss may due entirely or in part to factors other than oil pollution
• Account is taken of the age of the property and its durability
• Betterment – condition prior to damage
Field Surveys
• To provide clear & straightforward assessment
• Report and spreadsheet costs recommended as reasonablecosts recommended for rejection costs queried
• Several iterations
Assessment Aims
CASUALTY at Axyz, Eabcde - 14th May 2008Government Claim
SCOPE OF COMPENSATIONReasonable costs associated with:
Preventive measures
Environmental restoration
Property damage
Economic loss
• Actions judged on the basis of circumstances and decisions made at the time – hindsight is not applied
• Examples where actions and associated costs may be considered not to be reasonable:
Spraying dispersant on heavily weathered oil
Mobilising at-sea response vessels after oil has stranded
Booming fast-flowing rivers
Large scale removal of sand from beaches
Preventive Measures
Clean-up claim components - rates • Labour – contractors, local government, military, volunteers etc.
waged / salaried - overtime• Aircraft – commercial rates• Vessels – commercial rates / SCOPIC • Specialised equipment – value of item over expected life• Non-specialised equipment – market rates
------------------------------------------------------------Element of profit – commercial vs. governmentFixed costs vs. additional costsReduced rates for stand-by, cleaning, repairs etc.Memorandum of Understanding – Singapore MPADisposal – legislative requirements
Preventive Measures
Waste Generation Waste Generation -- ExampleExample
Emulsification80% water inclusion
Evaporation25% lost750 m750 m33
3,750 m3,750 m33
AMOUNTAMOUNTREMAININGREMAINING
1,000 m³ crude spilled
FORFORDISPOSALDISPOSAL
7,500 m7,500 m33
liquid wasteliquid waste(90% water)(90% water)
AT-SEA RESPONSE20% recovered
3,000 m3,000 m33
30,00030,000 mm33
solid wastesolid waste
SHORELINE CLEAN-UPInclusion of debris and
beach material etc.10 x original volume stranded
00
PROPERTY DAMAGE, ECONOMIC LOSS
Evidence of the damage needed to support claim Speculative and theoretical losses not valid Saved costs to be deducted from claimEvidence of normal income (previous 3-5 years)Catch records / Business statisticsClaimant is expected to mitigate loss
Fisheries
• Oiled fishing gear / facilities
• Tainting of stock
• Fishing or harvesting bans
• Public perception – consumers
Economic Loss
P u l a uB a t a m
BusingPulauBukom
PulauSebarok
Semakau
Semakau
PulauSudong
PulauPawai
Senang
RafflesLighthouse
Biola
Salu Hantu
Nongsa
Nongsa Is.
BatuMerah
Airport
Sekupang
PulauSambu
Kelurahan Belakangpadang
Tolop
P. Jandaberias
P u l a uL u m b aB e s a r
PempingBesar
Kasu
T a n g j u n -
k u b u
SINGAPORE
MALAYSIA
INDONESIA
JurongIsland
S I N G A P O R E
Ph
i ll i
pC
h an n e l
P. Labon
P. Takong
Batu-ampar
Lengkana
Sarang
Bertam Melintang
MamatPelangi
Serayacundang
Layang
KapalTakong
Nirup
Nipa
Mecan
Lengkang
Pecong
Panjang
Butung
Tandur
Dongdang
Semukit
Jello
Tekkon
Ketapa
Batu Berhanti
Jodoh
Bokur
Menkada
Belkangsidih
Dangsi
Sentosa
SerapatLingke
Terong
Katumba
Geranting
Tanjungladan
Kepalaganding
Se
l at
Bu
lan
Santo
Senkuang Pt.Kapur Pt.
Batam Centre
BatuAmpar
Desa Pulau Terong
DesaKasu
DesaPemping
DesaPecong
Desa Pulau Setokok
Desa Pantai Gelam
Desa Batu Legong
Kel.PulauBuluh
KecamatanSekupang
KecamatanBulang
KecamatanBelakangpadang
KecamatanLubuk Baja
KecamatanBatu Ampar
KecamatanNongsa
T e r i n gB a y
Menkada
Belkangsidih
Dangsi
NATUNA SEA
in Indonesian
ITOPF observations, 4-19.10.2000
Surveyed areas ofoil contamination
heavy moderate light
fisheries zones
Pasir
P u l a u
K e p a l a j e r i
PulauBatam
P u l a uB u l a n
Buluh
SingaporeIndonesia
Environmental Damage
• Reasonable & justifiable restoration accepted under CLC & FC
• The costs should be in proportion to the damage and expected benefits
• National legislation may include valuations based on abstract quantifications calculated from theoretical models
• Costs incurred for purely political or public relations reasons are beyond the scope of a technical assessment
• Claim assessment is a team effort involving both international and local expertise
• ITOPF assessment is a recommendation, not a settlement decision
• Support for case handler in negotiations with claimants
Concluding remarks