Судоводы - 9 семестр / Видищева Т.В., Монастырская О.И. - English in Maritime Business and Law (2014)

1.What company can arrange an all risk open cover policy?

2.What terms of payment were offered by the company?

3.What document should be obligatory enclosed? What should be included in this

document?1*

Dear Mr Korvin

Policy No. OC 515561

I am writing to inform you that a number of pieces of crockery were damaged in a recent shipment to MacKenzie Bros of Dawson, Canada. The consignment was shipped clean on board the Manitoba, ex-Liverpool 16 September. You have our declaration form No. 117 65916.

I would be grateful if you could send me a claim form.

Elaine Goodman

Export Department

GLASTON POTTERIES Ltd

Clayfield, Burnley BB10 1RQ

Tel: +44 (0)128246125

Fax: +44 (0)1282 63182

Email: e.goodman@glaston.co.uk

1.What happened to the items in a shipment?

2.How were the goods shipped?

3.What does “ex-Liverpool" mean?

Exercise 6. Fill in the blank spaces with the wordsfront the list below

1. The most famous insurance market in the w orld,________o f London, has many aspects. It is a society o f________ , a corporation, a world centre o f marine intelligence, and a specialist publishing house for maritime and legal affairs.

2.In general practice the insured does not deal directly with the underwriters, but negotiates through an insurance_________ .

3.The insured pays a sum o f money to the underwriter known a s _____________ .

4.M aritime_________include fire, war, capture, jettison, barratry, etc.

5.The party that undertakes to indemnify the insured under an insurance policy is called th e ___________________.

6.The Insurance_________is a written document o f contract where the underwriter undertakes to indemnify the insured for the loss or damage up to a certain limit.

Exercise 7. Translate into your native language. Use the dictionary if necessary

P&I clubs usually cover cargo claims (e.g. loss or damage to cargo); crew claims (e.g. medical expenses, repatriation, substitute expenses, compensation for death or injury); collision liabilities (to the extent that the claim is not covered under the hull policy); “fixed

UNIT 23

TYPES OF LOSS

Vocabulary

•Actual total loss (ATL) - действительная полная гибель; потеря собственности в случае, когда она полностью разрушена и непригодна для дальнейшего использования

• Constructive total loss (CTL) - конструктивная полная гибель; потеря судна или груза, когда их состояние таково, что стоимость спасания и ремонта превышает их стоимость до аварийного случая

•Peril insured - страховой риск

•Perils o f the sea - морские риски, опасности

•Perils o f the sea clause - оговорка о морских опасностях

•A n assured - застрахованный, страхователь

• То be deprived o f something - быть лишенным чего-либо

• То exceed the value - превышать стоимость

•Jettison - сбрасывать за борт предметы (с целью восстановления плавучести и остойчивости)

•Jetsam - предметы, сбрасываемые с аварийного корабля

• То strand - садиться на мель

•Irretrievably - невосполнимо

•То settle a claim - урегулировать спор, рассмотреть иск

•Entrapment - захват

•То take over - принимать от другого лица (командование, например)

•Particular average - частная авария

•General average - общая авария

•Proviso - условие, клаузула, оговорка (часть статьи, начинающаяся словом «provided» - при условии)

• Want o f due diligence - непроявление, отсутствие должного старания •Barratry - баратрия (намеренные действия капитана и/или команды,

причиняющие ущерб судну или грузу; ущерб, нанесенный судну или грузу капитаном и/ или командой по преступной небрежности или умышленно).

•Expenditures - затраты, расходы

•Sacrifices - потери, жертвы

•То recover a ship - взыскивать в судебном порядке

•То be borne (to bear) - нести (ответственность)

Exercise 1. Read the text and answer the questions

LOSSES

TOTAL

As far as marine insurance is concerned, insurers distinguish between total loss and partial loss (a partial loss being known as average).

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1. T o ta l lo s s e s m a y b e c a t e g o r iz e d a s:

a) actual total losses (ATL) b) constructive total losses (CTL) a) An actual total loss (ATL) may occur in 4 ways:

- where the property insured is actually destroyed, e.g. where a ship is wrecked or burnt out, or where goods are crushed in the collapse o f a stow o f cargo;

- where goods change their character to such a degree that they can be said to be no longer a thing o f the kind that was insured, e.g. where cement powder solidifies;

-where the assured is irretrievably deprived of his property, e.g. where the ship is sunk in very deep water;

-where the insured property is posted “missing” at Lloyd, e.g. where a ship has not reported for several weeks.

If the ship then turns up after a claim for ATL has been settled, it automatically

becomes the property of the insurers.

b) There is a constructive total loss (CTL) in thefollowing cases:

- the cost of recovering the ship or goods would exceed their value when recovered;

a n d

- in the case of damage to goods, where the cost of repairing the damage and forwarding the goods to their destination would exceed their value on arrival.

Thus, where a ship that has stranded due to a “peril o f the seas” is in danger o f breaking up, there is a constructive total loss. The shipowner will not want to wait until she has actually broken up before claiming for a total loss, so he will normally claim a CTL on the grounds that an ATL appears to be unavoidable.

Where an owner who has War Risks Insurance cover is deprived of his ship by its entrapment by war-wrecked vessels, there is a CTL. As time passes, it may become more unlikely that the assured can recover the vessel and she will therefore be declared a CTL. The cost of recovering her (towage, etc.) after several years of idleness would exceed her market value after recovery. (The same will apply to foods on a trapped ship).

In the case of damage to a ship, where she is so damaged by a peril insured against, e.g. grounding damage, that the cost of repairing the damage would exceed the value of the ship when repaired, there is a constructive total loss.

2 . A p a r tia l lo s s (o r “ a v e r a g e ” ) w ill a lw a y s b e c a t e g o r iz e d a s e ith e r :

-particular average (PA) or

-general average (GA).

A particular average (PA) loss is defined as a partial loss, proximately caused by a peril insured against and which is not a general average loss.

The insured perils in a hull and machinery (H&M) policy are listed in a Perils Clause in the set of clauses attached to the policy such as the International Hulls Clauses (01.11.02) or the Institute Time Clauses - Hulls (1.10.83). Under Clause 2 - Perils - structural damage proximately caused by collision, grounding, heavy weather, etc. (“perils of the seas”) would normally be classed as a particular average loss. Many owners insuring their ships under the Institute Time Clauses - Hulls prefer to extend their cover by paying an additional premium

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for clauses such as the Institute Additional Perils Clauses - -Hulls (APCs), which cover loss or damage caused by any accident. Instead o f having to demonstrate the operation of one of the perils insured against, the assured only has to prove that the loss or damage was caused by an accident during the policy term. Both above clauses are subject to the proviso that the loss or damage has not resulted from want o f due diligence on the part of the assured, owners or managers.

Barratry includes every wrongful act willfully committed by the master or crew to the prejudice of the owner or charterer. E.g., willfully running the ship ashore with fraudulent intent; fraudulently selling the ship, her equipment or cargo; sailing in breach of an embargo; willfully assisting illegal immigration; smuggling without the ow ner’s consent, are all acts of barratry.

Exercise 2. Retell the text about total losses using the Passive voice. Differentiate between ATL and CTL. Every noun can have several combinations

Exercise 3. Learn the following word combinations with the words “ r e s p o n s ib ilit y ” and “responsible”. Fill in the gaps with the correct prepositions. Use them in your own sentences or situations

To have burden___________ responsibility To hold smb responsible_____________ smth To release______________ responsibility

To be responsible__________smth

To be exempt_____________ responsibility

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UNIT 24

GENERAL AVERAGE AND THE YORK-ANTWERP

RULES

Vocabulary

•To incur an expenditure - понести расходы

•To extricate a vessel - высвободить судно

•Common maritime adventure - общее морское предприятие

•Abandonm ent - абандон (акт отказа судовладельца от груза или своего застрахованного имущества в пользу страховщика)

•Notice o f abandonment - извещение об абандоне

•То abandon - абандонировать

•Tender - официальное предложение, тендер

•Assessm ent - оценка

• General average adjustment - расчёт убытков по общей аварии

• General average contribution - долевой взнос по общей аварии

• General average bond - аварийная подписка

•General average guarantee —гарантия по общей аварии

•General average deposit - депозит или аварийный взнос •Lien - право удержания, залоговое право на груз, судно

•То exercise a lien on ... —применить залоговое право на ...

•Security - обеспечение, залог

•Average adjuster - диспашер, специалист по оценке убытков по общей аварии и

их распределению между участниками морского предприятия

•Average adjustment - диспаша (см. выше)

• То be due - подлежащий оплате

•Port o f refuge - порт вынужденного захода, порт-убежище

• То retain the ship - сохранить судно

• Тоfurnish particulars - представлять (предъявлять) подробности

•То take over (a ship) - принимать судно

•Proceeds -поступления, доходы

•То dispose o f - избавиться от

Exercise 1. Read the text and answer the questions

Part 1

Principle and object ofgeneral average

principle was applied under Rhodian law, the body of maritime law said to have been administered on the island of Rhodes from abt.800 B.C.).

The object o f general average is to ensure that the owner of a vessel or cargo who has incurred an expenditure or suffered a sacrifice o f his property in order to extricate the vessel (and consequently the cargo) from a perilous position receives a contribution to his loss from all those who have benefited from the action.

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A general average is a partial loss incurred through a deliberate act performed with the intention of preserving all the property involved in a voyage from a danger which threatens them all. General average losses are equitably shared by all the parties to the common maritime adventure (the voyage being the maritime adventure) each party contributing in proportion to his share of the total values involved. The term “maritime adventure’ comes from the days of merchant adventurers who sponsored ships voyages to the East and West Indies. A common maritime adventure is a voyage in which several parties have some financial interest as opposed to a ballast voyage of a non-chartered liner vessel where the only party involved is the shipowner.

The parties to a common marine adventure could include:

-the shipowner;

-each consignee of cargo on board (however many these may be);

- where the vessel is on time-charter, the owners of the bunker fuel (time-charterer) - the recipient of the freight (who will normally be the shipowner or time charterer).

Where cargo is owned by more than one party, each consignee is treated as a separate interest and is liable for his own contribution to the general average, no matter how small. The carrier usually makes this clear to the holder of a B/L in a General Average Clause.

Where on a vessel, equipment is installed that belongs to some third party (e.g. a diving systems owned by a diving contractor or a cable - laying installation fitted on a chartered ship, etc.), the owner (1) of that equipment become a party to the common maritime adventure.

In order to have the right to claim a contribution from parties to the common maritime adventure, the owner of a vessel which together with its cargo and any other property has been saved from danger must be able to show that there was a general average act.

A general average act is defined in Rule A of the York - Antwerp Rules.

The essential elements of it are asfollows:

SACRIFICE or EXPENDITURE

must be

extraordinary

intentionally made or incurred

reasonably made or incurred

for

thecommon safety preservingthe propertyfromperil

The following are the examples of extraordinary sacrifices intentionally and reasonably made for the common safety and allowed as GA:

a)a vessel is aground and her engine and equipment are damaged in efforts to refloat the vessel;

b)a fire occurs in the hold of a vessel and a hole is cut in another of her holds to gain access to the fire and put it out. The cargo not on fire may also be damaged;

c)Cargo is jettisoned for the common safety in time of peril;

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d)Cargo burnt as fuel (e.g., fuel oil in the ship’s tanker) if there is a shortage of

bunkers;

e)Cargo not on fire is damaged by water being used to extinguish other cargo, which is on lire.

If cargo is lost and as a result the shipowner can’t collect the freight which is payable at destination, the freight is sacrificed equally with the cargo and is allowed as GA.

The following are the examples of extraordinary expenditures intentionally and

reasonably incurred for the common safety:

a)the expense of hiring lighters for storing cargo in which efforts to refloat a vessel take place;

b)the expense of hiring a tug with fire-fighting equipment to extinguish a fire on board a vessel;

c)port of refuge expenses;

d)salvage charges.

1.What's the main principle o f GA ?

2.What’s the object o f GA ?

3.What are the advantages o f common maritime adventure?

4.What are the parties to common maritime adventure?

5.What are the principles o fRule A o f the York-Antwerp Rules?

6.Give the examples o f extraordinary sacrifices and expenditures.

7.What happens i f cargo is owned by several parties?

Exercise 2. What type of loss was this?

1.' A ship disappeared while sailing through the Bermuda Triangle.

2.A ship carrying cheap general cargo sank close to the coast of England.

3.Two boxes of goods were lost overboard as a result of bad weather.

4.In 1912, the supposedly unsinkable Titanic hit an iceberg and sank in the Atlantic.

5.A ship carrying oil barrels caught fire, and the crew threw the barrels into the sea to prevent an explosion.

6.Pirates boarded a ship and stole part of the cargo.

Exercise 3. Translate into English

1. Сущность общей аварии в том, что для сохранения целого судна, груза и фрахта приносится в жертву часть целого или производятся расходы. Цель расходов - спасти имущество от общей опасности.

2.В общую аварию включаются чрезвычайные пожертвования или расходы, произведенные намеренно и являются разумными в данной ситуации.

3.Общая авария является разумным актом в обоюдных интересах судна и находящегося на нем груза для спасения их от общей опасности. Эта опасность должна быть реальной, а нс воображаемой.

4.Можно определить следующие 4 признака общей аварии: общая опасность для судна, груза и фрахта, преднамеренность, разумность и чрезвычайность мероприятий, направленных на общее спасение. Если отсутствует хотя бы один из них, авария не является общей. Она может относиться к категории частной аварии или к расходам и убыткам судовладельца или грузовладельца.

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5. Йорк-Антверпенские правила были приняты в Йорке в 1864 и Антверпене в 1877 на конференциях представителей судовладельцев, страховщиков и диспашеров разных стран для унификации обычаев распределения общей аварии.

Part 2

Exercise 4. Read the text and answer the questions

Nature and application of York-Antwerp Rules

The York-Antwerp Rules - are a set of internationally recognized rules, drawn up by a number of maritime countries to enable the assessment o f each party’s general average contribution following an incident in which general average was declared.

-are (unlike the Hague-Visby Rules) not incorporated into national law, but are voluntarily and mutually accepted by shippers, shipowners and insurers.

-are generally incorporated into a contract of carriage in a General Average Clause. If the parties have not agreed to apply the York-Antwerp Rules, common law usually that of the country where the voyage is terminated following the general average act

-may be applied to the general average adjustment. There is a risk in such cases of wide variations from one country to another in the method of adjustment of general average.

-consist of 7 lettered rules (A to G) stating the general principles of general average, plus 22 numbered rules (I to XXII) dealing with specific matters.

Securityfor general average contributions

A carrier or shipowner has a common law lien on cargo in his possession for its contribution to a general average, this being a condition of delivery of the cargo. Possession of the cargo is the carrier’s / shipowner’s only guarantee that the cargo owners will pay the required contributions without costly court actions to enforce this.

In practice, general average contributions take months or even years to be assessed, so it is not normal for the shipowner to exercise his lien on cargo for the full contribution. Instead, he exercises the lien on some form of security pending the final adjustment. It becomes the duty of the master (or the ship’s agent on behalf of the master) to obtain an acceptable security for the cargo’s general average contribution before delivering the cargo

2.a general average bond (i.e. a signed promise by the receivers to pay their general average charges when known); (see annex 19)

3.a general average guarantee (a promise from cargo underwriters to pay the

required contribution without collection of a deposit); (see annex 18)

4. or a combination of two of the above, e.g. a bond backed by a guarantee.

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