Page 22 - Marine Insurance IC67 EBOOK
P. 22
MARINE HULL
M.Hull/Cir-1/2001 dated 27th March 2001
Re: Marine Hull Insurance - New Rating Guidelines for Fixing Initial Rates on Ocean-going
Vessels - Effective Date : 1-4-2001.
1. As the Insurers are aware, the TAC has been (A) Rates :
fixing initial rates on Ocean-going Vessels as
per the procedure spelt out in the Rating u The Matrices for basic Total Loss and Other
Guidelines which came into force in the Indian than Total Loss rates, currently being followed
market on 1.4.1995. in respect of different types of Ocean-going
Vessels (viz. Dry Cargo Vessels, Bulk
2. TAC has evolved new Rating Guidelines, which Carriers, Tankers/O.B.Os etc.) have been
will supersede the existing Rating Guidelines retained for H&M Sums Insured upto Rs.100
dated 1.4.1005. The new Rating guidelines crores.
will take effect from 1.4.2001.
u Additional Matrices for basic Total Loss and
3. The Rating Guidelines, effective 1.4.2001, are Other than Total Loss rates have been evolved
enclosed at Annexure 'A'. for different types of vessels with H&M Sums
Insured above Rs.100 crores. These Matrices
4. With the introduction of these Guidelines, all are applicable for different ranges of Sums
Ocean-going Vessels irrespective of Sum Insured, as indicated therein.
Insured, attaching to an existing fleet or
brining into being a new fleet on or after u It has been decided to retain the existing
1.4.2001, shall be rated as per the provisions provisions relating to modification in the basic
contained in the said Guidelines. Total Loss and Other Than Total Loss rates
for the Conditions of Insurance and/or Trading
5. Insurers may note that these Guidelines Warranty opted for a vessel being different
would be subject to the provisions of the from the standard ones.
Marine Hull Manual (updated as on 15th
November 2000) in so far as applicable. u A combination of the Total Loss and Other
Hence, these should be read in conjunction than Total Loss rates modified as above, will
therewith. give the Hull & Machinery (H&M) rate of the
vessel.
6. As these Guidelines would be applicable in
respect of all Ocean-going Vessels, u The existing provision for loading basic Total
irrespective of their Sum Insured, the option Loss and/or Other than Total Loss rates by a
currently being exercised by the Insureds of certain percentage for variation as compared
obtaining facultative rates, terms and to the Standard Value-per-Tonne/BHP has
conditions on vessels with Sums Insured been done away with.
exceeding the relevant Automatic Reinsurance
Capacity of the Indian market, would cease to u Part II of the existing Guidelines, designed to
exist from 1.4.2001. arrive at the quotient of a fleet by taking into
account various factors indicative of the fleet's
7. The highlights of the Rating Guidelines are as size, underwriting results etc. stands deleted.
follows:
u Part III of the existing Guidelines, designed to
PH: 033 4007 8428 / 2218 4184, Email: info@sashipublications.com 237
