Unison opg (1)

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  • NOTES: Unlike many of our competitors, Rating is the last question we ask
  • Unison opg (1)

    1. 1. <ul><li>Marine Cargo Insurance & Shipping </li></ul><ul><li>Sibesh Sen </li></ul><ul><li>Tata AIG General Insurance Co Ltd. </li></ul>
    2. 2. Case Study 1 <ul><li>Agent : Johnny Begood </li></ul><ul><li>Insured Name : 5 Roses Inc. Perfume Makers </li></ul><ul><li>Cargo : 12,000 mt of grade A1 Fishmeal </li></ul><ul><li>Packing : In bulk </li></ul><ul><li>Voyage/Transit : Lima, Peru- Kathmandu </li></ul><ul><li>Sailing date : 26.01.12 </li></ul><ul><li>Conveyance : Vessel Dragon Star </li></ul><ul><li>Value : USD 10,560,000/- (CIF +10%) </li></ul><ul><li>Cover requested : ICC-A with $10,000 deductible </li></ul>
    3. 3. DRAGON STAR <ul><li>EX-NAME : ZIYA S </li></ul><ul><li>TYPE : BULK CARRIER </li></ul><ul><li>FLAG : PANAMA </li></ul><ul><li>CLASS : PR </li></ul><ul><li>BUILT : 1974 </li></ul><ul><li>GRT : 5320 </li></ul><ul><li>DWT : 11250 </li></ul><ul><li>P&I : NOT KNOWN </li></ul>
    4. 4. UNDERWRITING WISDOM THE MORE YOU ASK, THE MORE YOU KNOW! THERE ARE NO STUPID QUESTIONS, ONLY STUPID ANSWERS! NEVER EVER ASSUME!
    5. 5. ICC Clauses-Risks Covered <ul><li>Loss / damage to the subject matter insured reasonably attributable to /caused by: </li></ul><ul><li>1. Fire or Explosion; </li></ul><ul><li>2. Vessel or craft being stranded, grounded, sunk or capsized. </li></ul><ul><li>3. Overturning or derailment of land conveyance; </li></ul><ul><li>4. Collision or contact of vessel craft or conveyance with any external object …. </li></ul><ul><li>5. Discharge of cargo at a port of distress; </li></ul><ul><li>6. General Average Sacrifice; </li></ul><ul><li>7. Jettison; </li></ul><ul><li>8. General Average and Salvage Charges </li></ul><ul><li>9. “Both to Blame” Clause </li></ul><ul><li>10. Washing overboard; </li></ul><ul><li>11. Earthquake., volcanic eruption or lightning. </li></ul><ul><li>12. Entry of sea, lake or river water into vessel, craft, hold, container </li></ul><ul><li>13. Total loss of any package lost overboard or dropped whilst loading/unloading…… </li></ul><ul><li>14. Any other risk not specifically excluded in the policy or the clauses </li></ul><ul><li>Exclusion extra (Malacious Damage) under B and C </li></ul><ul><li>“ Deliberate damage to or deliberate destruction of the subject matter insured or any part thereof by the wrongful act of any person or persons.” </li></ul>C L A U S E C C L A U S E B C L A U S E A
    6. 6. Clause 4 General Exclusions Clause <ul><li>Ordinary wear tear loss in weight, volume etc </li></ul><ul><li>Willful misconduct of assured </li></ul><ul><li>Insufficiency or unsuitability of packing or preparation of subject matter insured </li></ul><ul><li>Inherent vice or nature </li></ul><ul><li>Loss damage or expense caused by delay even though the delay is caused by a peril insured against </li></ul><ul><li>Loss damage or expense arriving from insolvency or financial default of the owners or operators etc of the vessel; </li></ul><ul><li>Loss damage or expense arising from the use of a weapon of war employing atomic or nuclear fission or fusion and or similar </li></ul>
    7. 7. UNDERWRITING WISDOM EACH AND EVERY CARGO – RISK IS A UNIQUE COMBINATION OF INDIVIDUAL RISK FACTORS
    8. 8. <ul><li>INTEREST / PACKAGING </li></ul>
    9. 9. <ul><li>VOYAGE </li></ul>Risk Analysis
    10. 10. <ul><li>CONVEYANCE </li></ul>Risk Analysis – I.V.C
    11. 11. Underwriting Philosophy UNDERSTAND EXPOSURE I nterest V oyage C onveyance EVALUATE CORRECT TERMS, CONDITIONS CALCULATE RATE
    12. 12. Risk Analysis – I.V.C <ul><li>Greater the exposure; Higher the Premium. </li></ul><ul><li>If Bad, Bad, Bad no price is high enough </li></ul>PREMIUM GOOD BAD BAD C GOOD GOOD BAD B GOOD GOOD GOOD A CONVEYANCE VOYAGE INTEREST EXAMPLE
    13. 13. UNDERWRITING WISDOM UNDERWRITING IS: 90% SELECTION & 10% PRICING
    14. 14. Case Study 2 A Tale of Two Vessels
    15. 15. Case Study-2 A Tale of Two Vessels
    16. 16. CASE STUDY 3 Insured Name : L&T, India Cargo : Machinery Voyage : Hazira, India to Saudi Arabia Sailing date : 20.07.2004 Conveyance : Tug Husaain Sagar Value : USD 16,000,000/- (CIF +10%)
    17. 17. BACK-UP INFO A REACTOR WEIGHING 800 MT ON DECK CARGO DUMB BARGE TUG USED FOR TOWING
    18. 18. PROJECT CARGO
    19. 19. PROJECT CARGO
    20. 20. UNDERWRITING WISDOM PRE-SHIPMENT SURVEYS ARE MUCH BETTER THAN POST- LOSS SURVEYS! INSURANCE SPONSORED DISCHARGE IN PORT PAYS FOR IT-SELF!
    21. 21. Case Study 4- Auto Exports
    22. 22. Car Carrier
    23. 23. Tsunami 26 th Dec 2004
    24. 24. Tricolor
    25. 25. UNDERWRITING WISDOM MURPHY’S LAW: EVERYTHING THAT CAN GO WRONG WILL GO WRONG, AT THE WORST POSSIBLE MOMENT IN TIME. EXPECT THE UNEXPECTED!
    26. 26. Case Study 5- Piracy
    27. 27. Case Study 6 <ul><li>Vessel Sonoma </li></ul><ul><li>Cargo- DAP </li></ul><ul><li>Voyage- USA to India </li></ul><ul><li>Incident- Shortage at discharge </li></ul>
    28. 28. UNDERWRITING WISDOM Recovery – Action usually against P&I Clubs generally pays off! Average recovery ratio: 20% some reach as high as 40%
    29. 29. Benchmark No.1 <ul><li>10 + Year Imports forthe construction of2 Cities in Saudi Arabia </li></ul><ul><li>ICC-A Cover </li></ul><ul><li>Breakeven Rate 0.30% </li></ul>
    30. 30. Benchmark 2 <ul><li>Bagged Cargo suffers from expectable, normal loss of 1% </li></ul>
    31. 31. Benchmark 3 <ul><li>46% of merchant fleet is over 15 years old </li></ul><ul><li>86% of all vessels lost were over 15% of age </li></ul>
    32. 32. Benchmark 4 <ul><li>70% of all cargo losses have human error as the ultimate cause. </li></ul><ul><li>Only 30% are caused by force majeur </li></ul>
    33. 33. Benchmark 5 <ul><li>Containers are good but cannot stop- </li></ul><ul><li>Theft </li></ul><ul><li>Sweat </li></ul><ul><li>On deck losses </li></ul><ul><li>Stowage losses </li></ul>
    34. 34. UNDERWRITING WISDOM TO COMPETE IS IMPORTANT. TO MAKE A PROFIT IS PARAMOUNT TO SURVIVAL!
    35. 35. Thank You.

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