Real Life Situation:
A vessel was insured for P&I insurance through us. Unfortunately, the vessel sank with a laden load of logs. 12 crews perished in this accident. The ship master and officers are Korean and the crews are Filipino.
Apart from usual problems expected, there are some other problems to be addressed which includes,
The estimated total claim, including cargo damage and crew death claims, amounted to approximately USD 45,000,000. This is the largest claim in the Club’s history.
We handled all claims and correspondence as well as acted vis-à-vis the club on behalf of the owner. Numerous discussions were held with the Directors of the Club to get assistance on claim settlement for the crew despite of the “pay to be paid” rule.
Through our perseverance, the Club agreed to settle the full amount of crew claims. In addition, we have successfully negotiated with the Club Directors to cover the increased ex gratia settlement to the Korean crew despite that it was not within the Club’s terms of cover.
The cargo claims were also resolved and concluded amicably.
All crew and cargo claims arising from this accident were concluded smoothly and swiftly within 2 month from the date of disaster.