Transport Insurance

Container ship operators can arrange insurance for through transport liabilities again on a mutual basis.  The leader in this field is the Through Transport Mutual Insurance Association, or “T.T. Club”, jointly operated by three of the major London managed P & I Clubs. Through transport cover will encompass risks arising out of the movement of cargo from inland depots by rail or road to the seaport, operations at the terminals, and likewise inland haulage to final destination at the other end of the route. The cover extends to loss of or damage to the containers themselves (“Container Shell Cover”) also trailers and similar equipment and to personal injury risks at container freight stations during stuffing and unstuffing. This type of cover is available not only to containership operators but also to “Non-Vessel Operating Carriers” (NVOCs) who operate on a slot-chartering basis.  Students particularly involved in container operations are advised to examine the TT Club Rule book for further details of this specialised cover. There are certain mutual associations, some of which are linked to P & I Clubs, that provide shipowners with strike indemnity insurance.  Strike cover can relate either to crew strikes or shore (stevedores, etc.) strikes.  In either case the shipowner declares a daily sum based on the ship’s normal operating costs which becomes the basis of the insurance indemnity and pays a premium calculated on that daily sum.  If a strike takes place and his ship is delayed, he submits a claim and if approved receives payment in accordance with the daily entered sum.  For shore strikes the Club will obtain a report from their local correspondent at the port in question confirming that the strike really did take place! This type of cover is more closely akin to Hull insurance and is in fact usually placed “in the market”.  However, as with strike cover, a daily indemnity is agreed (probably equivalent to the actual charter hire rate), and a premium is calculated accordingly.  There is an excess, or deductible and an agreed maximum number of days “lost” per claim and in all over the policy year.  (For example, the policy might read “15/90/180” meaning “no claim for the first 15 days, then up to 90 days any one accident and 180 days in all during the year”).  Claims are only paid for time lost as a direct result of a marine accident as defined in the hull policy conditions, so that a report from the Salvage Association or a similar organisation is  required to support the claim.