AAA Rules of practice Flashcards
D1: Expenses of removing a vessel for repair
- For the purpose of ascertaining the reasonable cost of repairs, and subject to any express
provisions in the policy, where a vessel is at any port place or location (hereinafter referred to as
‘port’) and is necessarily or reasonably removed to some other port for the purpose of repairs, either
because the repairs cannot be effected at the first port, or cannot be effected prudently, the
additional expenses reasonably incurred by the shipowner in removing the vessel (other than any
expenses allowable in general average) shall be treated as part of the reasonable cost of repairs. - (a) Where the vessel after repairing forthwith returns to the port from which she was removed, the
expenses incurred both in removing the vessel to the port of repair and in returning shall be treated as part of the expenses of removal.
(b) Where the vessel loads a new cargo at the port of repair or proceeds thence to some other port for the same purpose, the expenses shall be calculated as though, but for the repairs, the vessel had previously been engaged to proceed direct from the port from which she was removed to the loading port.
(c) Where, immediately following a casualty, or upon completion of the voyage on which the casualty occurred, the vessel is removed solely to enable repairs to be effected which are essential for continued trading, the expenses may, at the owners’ option, be calculated only for the single passage to the repair port. - (a) The expenses of removal shall include, inter alia, the cost of any necessary temporary
repairs, wages and provisions of crew and/or runners, pilotage, towage, extra marine insurance, port charges, bunkers and stores.
(b) Where by moving the vessel to or from the port of repair any new freight or hire is earned, such net earnings shall be deducted from the expenses of removal. - The expenses of removing the vessel for repair shall be charged as follows:
(a) Where the vessel is removed to the port of repair as an immediate consequence of damage for the repair of which underwriters are liable, or the vessel is necessarily taken out of service especially to effect repairs arising from that damage, the whole cost of
removal shall be treated as part of the cost of repairing that damage, notwithstanding that
the shipowner may have taken advantage of the removal to carry out survey for classification purposes or to effect other average repairs or repairs on his own account.
However, where the vessel is removed for owners’ purposes, other than a routine overhaul as in 4(b) below, or as an immediate consequence of damage for which underwriters are not liable, no part of the cost of removal shall be charged to underwriters, notwithstanding that repairs for which they are liable may be carried out at the port of repair.
(b) Where the vessel is removed to the port of repair for routine overhaul at which repairs on both owners’ and underwriters’ accounts are effected, the expenses of removal shall be apportioned pro rata to the cost (including drydock dues and general services) of all work effected at the port, other than to any damage sustained after the commencement of the removal passage and the cost of any major parts shipped to the repair port from elsewhere.
D5: Drydock expenses
- That, in practice, where repairs, for the cost of which underwriters are liable, are necessarily effected in dry dock as an immediate consequence of the casualty, or the vessel is taken out of service especially to effect such repairs in dry dock, the cost of entering and leaving the dry dock, in addition to so much of the dock dues as is necessary for the repair of the damage, shall be chargeable in full to the underwriters, notwithstanding that the shipowner may have taken advantage of the vessel being in dry dock to carry out survey for classification purposes or to effect repairs on his account which are not immediately necessary to make the vessel seaworthy.
2.(a) Where repairs on Owners’ account which are immediately necessary to make the vessel seaworthy and which can only be effected in dry dock are executed concurrently with other repairs, for the cost of which underwriters are liable, and which also can only be effected in dry dock,
(b) Where the repairs, for the cost of which underwriters are liable, are deferred until a
routine dry-docking and are then executed concurrently with repairs on Owners’ account
which require the use of the dry dock, whether or not such Owners’ repairs affect the
seaworthiness of the vessel, the cost of entering and leaving the dry dock, in addition to so much of the dock dues as is common to both repairs, shall be divided equally between the shipowner and the underwriters, irrespective of the fact that the repairs for which underwriters are liable may relate to more than one voyage or accident or may be payable by more than one set of underwriters. - Sub-division between underwriters of the proportion of dry-docking expenses chargeable to them shall be made on the basis of voyages, and/or such other franchise units as are specified in the policies.
- In determining whether the franchise is reached the whole cost of dry-docking necessary for the repair of the damage, less the proportion (if any) chargeable to Owners when Section (a) of paragraph 2 applies, shall be taken into consideration, notwithstanding that there are other damages to which a portion of the cost of dry-docking has to be apportioned in ascertaining the amount actually recoverable.
DD6: Treatment of the cost of tank cleaning and / or gas-freeing
That, in practice, where repairs, for the cost of which underwriters are liable, require the tanks to be rough cleaned and/or gas-freed as an immediate consequence of the casualty, or the vessel is taken out of service especially to effect such repairs, the cost of such rough cleaning and/or gas-freeing shall be chargeable in full to the underwriters, notwithstanding that the shipowner may have taken advantage of the vessel being rough cleaned and/or gas-freed to carry out survey for classification purposes or to effect repairs on his account which are not immediately necessary to make the vessel seaworthy.
2. (a) Where repairs on Owners’ account which are immediately necessary to make the vessel seaworthy and which require the tanks being rough cleaned and/or gas-freed are executed concurrently with other repairs, for the cost of which underwriters are liable, and which also require the tanks being rough cleaned and/or gas-freed,
(b) Where the repairs, for the cost of which underwriters are liable, are deferred until a
routine dry-docking or repair period, at which time repairs on Owners’ account which also
require the tanks being rough cleaned and/or gas-freed are effected, whether or not such Owners’ repairs affect the seaworthiness of the vessel, the cost of such rough cleaning and/or gas-freeing as is common to both repairs shall be divided equally between the shipowners and the underwriters, irrespective of the fact that the repairs for which underwriters are liable may relate to more than one voyage or accident or may be payable by more than one set of underwriters.
3. The cost of fine cleaning specifically for a particular repair or particular repairs shall be divided in accordance with the principles set forth above.
4. Sub-division between underwriters of the proportion of rough tank cleaning and/or gas-freeing and/or fine cleaning chargeable to them shall be made on the basis of voyages, and/or such other franchise units as are specified in the policies.
5. In determining whether the franchise is reached the whole cost of rough cleaning and/or gasfreeing and/or fine cleaning necessary for the repair of the damage, less the proportion (if any) chargeable to Owners when Section (a) of paragraph 2 applies, shall be taken into consideration, notwithstanding that there are other damages to which a portion of the cost of rough tank cleaning and/or gas-freeing and/or fine cleaning has to be apportioned in ascertaining the amount actually recoverable.
DD8: Scraping and painting
Where the Policy includes a Clause to the effect that:
“No claim shall in any case be allowed in respect of scraping or painting the vessel’s bottom”.
(a) Gritblasting and/or other surface preparation of new bottom plates ashore and supplying
and applying any “shop” primer thereto
(b) Gritblasting and/or other surface preparation of:
(i) the butts or area of plating immediately adjacent to any renewed or refitted plating damaged during the course of welding and/or repairs
(ii) areas of plating damaged during the course of fairing, either in place or ashore
(c) Supplying and applying the first coat of primer/anticorrosive to those particular areas
mentioned in (a) and (b) above shall be allowed as part of the reasonable cost of repairs in respect of bottom plating damaged by an insured peril and shall be deemed not to be excluded by the wording of this Clause. The gritblasting and/or other surface preparation and the painting of all other areas of the bottom is excluded by the Clause.
D1: Expenses of removing a vessel for repair
- For the purpose of ascertaining the reasonable cost of repairs, and subject to any express
provisions in the policy, where a vessel is at any port place or location (hereinafter referred to as ‘port’) and is necessarily or reasonably removed to some other port for the purpose of repairs, either because the repairs cannot be effected at the first port, or cannot be effected prudently, the additional expenses reasonably incurred by the shipowner in removing the vessel (other than any expenses allowable in general average) shall be treated as part of the reasonable cost of repairs.
