The Club is frequently notified of claims related to personal injury of crew, passengers and third parties on board vessels. Mindful of the changes under English law to the compensation for future loss of earnings or future care of said parties, also known as the ‘discount rate[1]’, the Club wishes to draw Members’ attention to preventative measures which can be implemented to mitigate against such claims.

The Managers are aware that, from time to time, Members have been offered contractual terms with counterparties that require the shipowner to provide a continuing warranty of seaworthiness for the entire duration of the voyage.

Reference is made to circular issued in May 2016 referring Members to the Inter-Club New York Produce Exchange Agreement 1996 (the “ICA”), as amended in September 2011, that provides a mechanism whereby liability for cargo claims arising under the New York Produce Exchange Form (NYPE) or Asbatime charterparties and/or contracts of carriage authorised under such charterparties can be swiftly and fairly apportioned between owners and charterers.

Parties in more procedurally conservative jurisdictions can be surprised at the ease with which a binding contract can be created under English law. In the context of charterparty (c/p) negotiations, it is generally the case that an agreement will be deemed binding prior to a formal charter being drawn up and signed. Sometimes a charter document is never created, and the parties rely entirely on their email exchanges as evidence of their contractual terms.

The Shipowners’ Club, the leading P&I insurer in the smaller and specialist vessel sector, has reported financial results for the six months ended 30 June 2018. The Club recorded a 106.4% combined ratio, which was in line with expectations and underlines the Club’s support for its Members.