Special Committee Report 1972

Question 1

In the opinion of the Committee the interpretation of Clause 12, giving each word its due weight and significance in its context, requires that:-

Answer 1

a. One deductible is to be applied when either:-
i) there is only one accident or occurrence from which the claim arises, or
ii) even though there is more than one accident or occurrence, these accidents or occurrences are not separate, but form a connected set of events from which the claims arise.

b) On the other hand, if one or more of the events from which the claims arise are the result of a new cause, not directly connected with previous events, i.e, that which would be considered in law a novus actus interveniens, then more than one deductible is to be applied to the claims.

Question 2

Cases involving the application of one deductible

Answer 2

Vessel arrives at port where cargo is usually discharged at berth, but due to cargo being damaged, it is discharged via barges at anchorage. During the operation the vessel sustains damage
By contact with a barge banging alongside in two locations during a storm – one deductible

Question 3

Cases involving the application of more than one deductible

Answer 3

Vessel arrives at discharging port where she would normally discharge to berth, but by reason of the cargo being damaged she was instead required to discharge into barges at an anchorage. During the operation the vessel sustains damage:
b) About the decks by violent action of the wind and waves during a second and subsequent storm. A second deductible should be applied. Lines 149/150 do not apply to a period in port.

Question 4

Cases of a sequence of events where a strict interpretation suggests the application of more than one deductible, but the working party considers that it would be more reasonable to apply only one deductible

Answer 4

1) A vessel is moored at a port where it is customary to lie safely aground at low tide. Vessel sustains damage due to ranging at each tide –
b) During two periods of heavy weather separate by an interval of a number of days of fair weather
A strict interpretation might require that as there were two separate periods of heavy weather, there should be two deductibles. Such an interpretation could lead to anomalies and dispute and it appears reasonable to the working party that in practice in such a case as this the accident or occurrence be regarded as ranging in this particular berth and only one deductible should be applied