Page 23 - Marine Insurance IC67 EBOOK
P. 23
The Insurance Times
determine the increase/decrease in the Insurers will ensure that all vessels with sums
modified Total Loss and Other than Total Loss insured exceeding the Automatic Reinsurance
rates (arrived at under Part I) as per the Capacity of the Indian market, insured by them as
Bonus/Malus Graph, also stands deleted. per facultative quotes, become part of the
respective Committee-rated fleets at their expiring
u Parts II & III of the existing Guidelines have conditions of insurance, deductibles, trading
been substituted by a provision, whereby warranties, net rates etc. on 1.4.2001 subject to
Rating Level of the fleet to which a vessel is the following:
attaching, would be applied as under on the
H&M Rate arrived at, as explained i) Rate :
hereinabove. The expiring facultative rates would be subject
to loading, if so warranted, by the same
u If the Fleet Rating Level is 100% or less: The percentage as would be attracted by the
entire Rating Level is to be applied on the concerned fleet during the underwriting year
H&M Rate of the new attachment. when the vessel attaches to it. However, no
discount would be allowed to such vessels at
u If the Fleet Rating Level as above 100%: Only the time of becoming a part of the committee-
the current year's penalty/reduction is to be rated fleet, even if the fleet's Rating Level
applied on the H&M Rate of the new otherwise so warrants.
attachment.
However, rates on such vessel(s) would be
u It may be noted that the vessels would modified at subsequent renewals like any other
continue to be rated as per the criterion of vessel(s) of the fleet, as per the terms of such
ownership. subsequent renewals.
(B) Deductibles: The premium and claim figures generated by such
vessels in the past would not be taken into
u The existing system of fixing Deductibles on account at all. However, the premium and claim
Ocean-going vessels with H & M Sums figures generated by them from the dates on
Insured upto Rs.100 crores as contained which they become part of the Committed-rated
under Section II: Initial Rating : Rules 5.A&B fleets, would be clubbed with the fleet's statistics
of the Marine Hull Manual, has been retained. for renewal and other purposes, if any, as and
However, the maximum deductible amount for when the renewal falls due.
any vessel has now been fixed at Rs.30 lacs.
The vessels would be subject to Increase/
u For vessels with H&M Sum Insured above Decrease-in-Value Formula contained in the
Rs.100 crores, new slabwise deductibles have Marine Hull Manual, reckoning their TL rates at
been laid down. 75% of the expiring net rate.
(C) Increase/Decrease in Sum Insured: ii) Deductibles:
u For abundant charity, it may be mentioned that If the expiring deductible of a facultatively rated
the provision contained in the Marine Hull Manual vessel is found to be higher than the deductible
(Section I: General Rules & Regulations: Rule otherwise applicable to a vessel in that range of
18) in the above regard, will apply to all vessels, Sum Insured, as shown under 5(b) of the
irrespective of their sums insured. enclosed Rating Guidelines, the same would be
retained.
u Rating of Vessels with Sums Insured
Exceeding the Automatic Reinsurance
Capacity of the Indian Market.
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