Claims Guidelines no. 2

Costs Incurred During the Removal of the Vessel to a Repair Yard


Main rule: NMIP § 12-13, the insurer is liable for the costs of moving the ship to the repair yard, in-cluding wages and maintenance for necessary crew, bunkers and similar direct expenses in connection with the running of the ship during the period of time involved.


What does this include?

  1. Towage costs if necessary, including a warranty survey and extra insurance costs.

  3. If the vessel sails under its own steam, all “out-of-pocket” expenses necessary to move the vessel from A to B, including crew wages and maintenance, bunkers (both for propulsion and electricity generation), port and harbor dues and pilotage.


How should these expenses be documented?

  1. Towage costs, harbor dues, pilotage etc. can be documented in the usual manner through production of invoices or agent d/a’s.

  3. Bunker consumption is best documented through production of a Master’s statement showing the ROB’s from time of departure and time of arrival, plus a copy of the latest bunker invoice. Copies of deck logs will not usually be necessary but the Master should ensure that the figures are accurate and can be traced back if necessary.

  5. Other running costs of the vessel, including crew wages and maintenance, are best documented by pro-duction of the relevant OPEX report for the vessel and time period in question, showing the total monthly crew costs, maintenance costs, lube oil costs and the like. If your company does not work with the vessel specific OPEX reports, it will normally be sufficient to present the claim in an excel table stipulating the details of the crew and daily wages, daily maintenance costs and daily lube oil consumption.


One last point

Removal costs are classed as common expenses, and will apportioned according to the cost of repair work and the cost of owners work carried out at the shipyard.

For further information, please contact your local claims office.


Sources: NMIP of 2013 and its Commentary

Disclaimer: These guidelines cannot be construed as a complete and binding answer to all of the possible problems and questions that can arise in connection with the topic addressed.