Claims Guidelines No. 1

Crew Work on Casualty Repairs

 

Main rule: NMIP § 12-5 a), crew’s wages and maintenance and other ordinary expenses incurred with the running of the ship during the period of repair are not covered, unless specially agreed before-hand.

 

In practice Codan will agree to cover certain crew wages under your Hull & Machinery insurance, pro-vided:

 

  1. That the assured informs the claims handler of the desire to involve certain crew members directly with the repairs, before repairs commence. It is not sufficient to simply inform the attending surveyor.
  2.  

  3. That the assured can demonstrate concrete savings in relation to hiring in external contractors.
  4.  

  5. That the work performed is more than simple preparatory work or cleaning.
  6.  

  7. That the claims handler and attending surveyor are of the opinion that use of the ship’s crew is justified and reasonable.

 

If the above criteria are met, the Hull & Machinery insurance will usually cover the basic wages in the crew members involved, for the total number of days each is involved in the repair work.

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.