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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]
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Lloyd's Open Form 2011
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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
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BP "THUNDERHORSE"
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"CMA CGM LIBRA"
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The “Amerique” [1874] L.R. 6 PC 468, 475
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The “Queen Elizabeth” [1949] 82 Ll.L.Rep. 803, 821
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SCOPIC
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SCOPIC Appropriately Invoked
ARTICLE13
AWARD
US$
SCOPIC TARIFF
CLUB
PROPERTY U/Ws PRO RATA TO SALVED VALUE
TIME
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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$
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What if....
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"RENA"
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"RENA"
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"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
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"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
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"MSC CHITRA"
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"MSC CHITRA"
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"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
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"MSC NAPOLI"
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"MSC NAPOLI"
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"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
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"COSTA CONCORDIA"
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"MSC FLAMINIA"
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"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
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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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