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Mega Ship Casualties: Does Lloyd's Open Form Still Work?. Houston Marine Insurance Seminar 17 September 2012. Toby Stephens, Partner. T: +44 (0)20 7264 8366. [email protected]. Lloyd's Open Form 2011. How much do you pay?. Key criteria – Article 13 of the Salvage Convention 1989 - PowerPoint PPT Presentation
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MEGA SHIP CASUALTIES: DOES LLOYD'S OPEN FORM STILL WORK?HOUSTON MARINE INSURANCE SEMINAR
17 SEPTEMBER 2012
Toby Stephens, PartnerT: +44 (0)20 7264 [email protected]
Lloyd's Open Form 2011
How much do you pay?
Key criteria – Article 13 of the Salvage Convention 1989
"The reward shall be fixed with a view to encouraging salvage operations"
a. Salved Valueb. The Measure of Success c. Services renderedd. Skill and Efforts of the Salvorse. Dangers faced (including environmental)f. Expenses and Losses incurred
BP "THUNDERHORSE"
"CMA CGM LIBRA"
The “Amerique” [1874] L.R. 6 PC 468, 475
The “Queen Elizabeth” [1949] 82 Ll.L.Rep. 803, 821
SCOPIC
SCOPIC Appropriately Invoked
ARTICLE13
AWARD
US$
SCOPIC TARIFF
CLUB
PROPERTY U/Ws PRO RATA TO SALVED VALUE
TIME
SCOPIC Inappropriately Invoked
TIME
AR
TIC
LE 13
AWA
RD
TOTAL ARTICLE 13 AWARD PAID BY PROPERTY UNDERWRITERS SUBJECT TO DISCOUNT OF 25% OF THE DIFFERENCE (ART 13/ SCOPIC).
CLUB PAYS NOTHING
US$
What if....
"RENA"
"RENA"
"RENA" – 1,368 Containers
150 lost overboard
121 perishable food stuffs
Say 50% wet damaged
say 735 sound containers
Notional Article 13 Award - US$11,000,000
All figures are for illustrative purposes only
"RENA"
Cargo Value SCOPIC Claim Notional Article 13 Award
Net SCOPIC0
10
20
30
40
50
60
70
80
90
$22m
$82.35m
$11m
$71.35m
US
D$
Mill
ion
All figures are for illustrative purposes only
"MSC CHITRA"
"MSC CHITRA"
"MSC CHITRA"
Cargo Value SCOPIC Claim Notional Article 13 Award
Net SCOPIC0
5
10
15
20
25
$8m
$22m
$4m
$18m
US
D$
Mill
ion
All figures are for illustrative purposes only
"MSC NAPOLI"
"MSC NAPOLI"
"MSC NAPOLI"
Cargo Value SCOPIC Claim Notional Article 13 Award
Net SCOPIC0
10
20
30
40
50
60
70
80
90
$80m
$65m
$40m
$25m
US
D$
Mill
ion
All figures are for illustrative purposes only
"COSTA CONCORDIA"
"MSC FLAMINIA"
"MSC FLAMINIA" - Guestimate
Cargo Value SCOPIC Claim Notional Article 13 Award
Net SCOPIC0
5
10
15
20
25
30
35
$30m
$12m$10m
$2m
US
D$
Mill
ion
All figures are for illustrative purposes only
MSC FLAMINIA" - Guestimate
Cargo Value SCOPIC Claim Notional Article 13 Award
Net SCOPIC0
5
10
15
20
25
30
35
SCOPIC discount US$750,000
US
D$
Mill
ion
All figures are for illustrative purposes only
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