MARINE CLAIMS OFFICE OF INDONESIA

Marine Claims Advisory & Average Adjusting

ADJUSTMENT OF CLAIM
(Dated )

VESSEL

DRAFT

EMELINE
(Cement Carrier, GRT 1497 , Built 1979)

CASUALTY

9th January 2013 : Sank in Flores sea.

INSURANCES

Hull & Machinery, US$ 600,000.00 sum insured, for 12 months

from 31st December 2012, Details per Adjusters Note 1.

CASUALTY SUMMARY

The vessel was on a loaded voyage from Bosowa, Makasar to

Banyuwangi, Indonesia, when on 9th January 2013, she
experienced heavy weather, causing her to list and subsequently
sink in the Flores sea.

ADJUSTMENT
SUMMARY

Actual Total Loss claim. The Assured has been irretrievably

deprived of the vessel and the loss is recoverable under Clause
6.1.1 of the policy as a peril of the seas

CLAIM

Actual Total Loss (Insured Value) ............... US$ 600,000.00

Add : Adjusters fee and expenses ................

00
US$

Chris Kilbee
Fellow of the Association of Average Adjusters

PT. MCO PRIMA INDONESIA

In association with MCO SINGAPORE
MTH Square 2nd Floor Unit 20, Jl. MT. Haryono Kav. 10, Jakarta 13330
Tel. (021) 2906 7391 Fax. (021) 2906 7392
Web. www.mcoindonesia.com
www.marineclaimsoffice.com

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CONTENTS

1)

RELEVANT INSURANCE CONDITIONS

2)

SUMMARY OF FACTS

3)

CONDITION OF THE VESSEL PRIOR TO THE CASUALTY

4)

WEATHER CONDITIONS

5)

CAUSE OF SINKING AND POLICY LIABILITY

6)

ACTUAL TOTAL LOSS

7)

WARRANTIES

8)

APPENDICES

9)

APPLICATION OF CLAIM ON POLICY OF INSURANCE

Page 1 of 8

1)

RELEVANT INSURANCE CONDITIONS

Policy No

004.4050.601.2013.000002.00 dated 10th January 2013.

Insured Value

US$ 600,000.00

Period

12 months from 31st December 2012.

On

Hull & Machinery.

Subject to

Institute Time Clauses Hulls 1/10/83 (Cl.284) Total Loss,

Deductible 1% of total sum insured but nil for constructive total
loss.

Warranted

i.
ii.

iii.
iv.

v.
vi.

2)

Vessel classed and class maintained during the period of

insurance.
Complete documents and availability of vessel valid statutory
document and/or statutory certificates during the period of
insurance.
Availability of sailing permit from port authority.
Requirement and/or recommendation and/or regulations of the
port authority and/or harbor master and/or the Directorate
General of Sea Communication and/or Classification Society
must be complied with throughout the period of this insurance.
No overload of passenger or cargoes.
Single tow only (applicable for tug and barge).

SUMMARY OF FACTS
At approx. 1421 hours, on 8th January 2013, EMELINE departed Bosowa, Makasar for
Banyuwangi, Indonesia, laden with 2,141.51 metric tons of cement on board. At 2000
hours, it was reportedly raining with waves between 3 - 4 meters.
On the next day, at 0500 hours, the weather worsened and EMELINE encountered 6
to 8 meters waves, causing the vessel to list 30 to starboard. Meanwhile, the Chief
Officer ordered the crew to pump the water out from the starboard ballast tank. At
0600 hours, whilst deviating towards to Takarewata to take shelter it was reported that
EMELINE listed 150 to starboard. At 0830 hours, and for safety reasons, the Master
instructed all crew to abandon the vessel by using a life raft at the port side and tried
to contact KM MAHAKAM RIVER through the radio for evacuation.
At 0900 hours, EMELINE was reported completely sank, and at 1200 hours, it was
reported that 6 crewmen were safe on board of MAHAKAM RIVER. Regretably, the
remaining 11 crew are still unaccounted for.

Page 2 of 8

2)

SUMMARY OF FACTS (continued)

PT. Asuka Bahari Nusantara interviewed the surviving crew members at the Ship
owners office, Jakarta, on 30th January 2013, and advised that the vessel sank at a
depth of 500 - 600 meters in the Flores Sea, at position, 06017.45S/118053.37E.

3)

CONDITION OF THE VESSEL PRIOR TO THE CASUALTY

We note from the Underwriters Surveyors report, on page 8, that the vessel had been
in dry dock at Tanjung Priok, Jakarta, in October 2011, prior to the subject voyage/
casualty, and they also stated that at the time of accident, the structures condition of
the vessel is considered still fulfill class requirements.

4)

WEATHER CONDITIONS
After reviewing the letter of the Indonesian Meteorological and Geophysics Agency
dated 8th February 2013, the Underwriters Surveyors in their report, stated as follows:
i.

on page 11, stated that the weather generally was rain, wind flew from
west with velocity ranging between 25.0 34.0 knots, while current
streamed from west with velocity approx. 85cm/s up to 100 cm/s with
billows approx. 5.0 6.0 meters. Concerning the wind velocity and wave
height, the condition could be specified as level 8 in Beaufort scales.

ii.

on page 12 stated that Flores sea is categorized as deep sea with depth
around 300 2,000 meters and filled with scattered sandbanks and small
islands. The area is well known with extreme weather condition and billows
up to 10 meters tight .

Based on the above, the vessel is deemed to have been in heavy weather conditions.

5)

CAUSE OF SINKING AND POLICY LIABILITY

The Underwriters Surveyors in their report on page 13 stated that :

the vessel was losing her buoyancy as sea water ingressed to tank(s) and
lead to sink.

Page 3 of 8

5)

CAUSE OF SINKING AND POLICY LIABILITY (continued)

The Underwriters Surveyors in their report etc. : (continued)

It is considered the sea water ingressed to tank(s) with the following

possibilities :
1. Result of interview
To starboard ballast tank(s) from possible various opening, e.g :
a. Venthole(s) which probably left opened or broke apart;
b. Crack on deck of side shell.
2. Result of review documents
To fore peak tank (FPT) from doubled hull plate on 2nd frame from stem
(starboard side below tank top) which possibly detached as repeatedly
hit by wave and water flown to other tank(s) through bulkhead on fore
peak tank (FPT) which consider not water tight.
In view of the above comments, we have carefully considered the matter, and would
advise that sinking in heavy weather is a peril of the sea and covered under Clause
6.1.1 incorporated in the vessels total loss (actual or constructive) hull. Underwriters
have confirmed that the policy is a valued policy and therefore the indemnity is
US$600,000.00, the agreed value. No policy deductible applies to this total loss claim.

6)

ACTUAL TOTAL LOSS

Section 57(1) of the English Marine Insurance Act 1906 provides that:
Where the subject-matter insured is destroyed, or so damaged as to cease
to be a thing of the kind insured, or where the Assured is irretrievably
deprived thereof there is an actual total loss.

The Underwriters Surveyors in their report on page 14 stated :

i.

Referring to interviews and other relevant documents, the vessel sank

around Flores sea, western of Selayar Island, at coordinate approx.
06017.45S/118053.37E on approx. 500 600 meters of sea depth.

ii.

Refloating effort would be extremely difficult with the possibility of failure

due to the following reasons :
- The vessel sank in deep sea about 500 600 meters.
- Nearest salvage team should be from Selayar Island and its cost is very
expensive.

Page 4 of 8

6)

ACTUAL TOTAL LOSS (continued)

The Underwriters Surveyors in their report etc. : (continued)
ii.

(continued)
-

Cargo approx. 2,141.151 mt of cement which considered already mix

with sea water and became concrete create additional obstacles to
refloating effort.
Machinery and electrical equipment should do total overhaul.

On the above basis, we consider the Assured has been irretrievably deprived of the
vessel and she is therefore an actual total loss within the aforementioned definition.

7)

WARRANTIES
The policy conditions include the following warranties viz.:
i.

Vessel classed and class maintained during the period of insurance.

ii.

Complete documents and availability of vessel valid statutory document

and/or statutory certificates during the period of insurance.

iii.

Requirement and/or recommendation and/or regulations of the port

authority and/or harbor master and/or the Directorate General of Sea
Communication and/or Classification Society must be complied with
throughout the period of this insurance.

iv.

Availability of sailing permit from port authority.

To comply with the above warranties, the Assured has provided us with the vessels
classification and statutory certificates from the date of the commencement of the
policy from 31st December 2012 until the date of the casualty 9th January 2013,
together with a copy of port clearance issued at Makassar.

8)

APPENDICES
A. Reports and correspondence.
B. Vessels Certificates.

Page 5 of 8

9)

APPLICATION OF CLAIM ON POLICY OF INSURANCE

Policy No.

004.4050.601.2013.000002.00

Period

12 months from 31st December 2012.

On

Hull & Machinery.

Subject to

Institute Time Clauses Hulls 1/10/83 (Cl. 284) Total Loss,

General Average and 3/4ths Collision Liability.

Sum Insured

US$ 600,000.00

Deductible

1% of total sum insured but nil for constructive total loss.

Additional deductible for loss or damage due to crew
negligence :
i. 15% of claim payable for machinery loss or damage.
ii. 10% of claim payable or Rp 50,000,000 whichever is
higher for all other loss or damage.

Warranty

i.

Vessel classed and class maintained during the period of

insurance.

ii. Complete documents and availability of vessel valid

statutory document and/or statutory certificates during
the period of insurance.
iii. Availability of sailing permit from port authority.
iv. Requirement and/or recommendation and/or regulations
of the port authority and/or harbor master and/or the
Directorate General of Sea Communication and/or
Classification Society must be complied with throughout
the period of this insurance.
v. No overload of passenger or cargoes.
vi. Single tow only.

Page 6 of 8

9)

APPLICATION OF CLAIM ON POLICY OF INSURANCE (continued)

Actual Total Loss (Insured Value) ............................................... US$ 600,000.00
Add : Adjusters fees and expenses .............................................

00
US$

To be distributed as follows :
i.

ii.

PT. Pelayaran Andalas Bahtera

Baruna receive their claim ...................... US$

600,000.00

PT. MCO Prima Indonesia receive

their charges ..........................................

00
US$

00

~~~~~~~~~~~~~~~~~~~~~~~

Seen and approved by :

PT. MCO PRIMA INDONESIA

MTH Square 2nd floor Unit 20

Jl. MT. Haryono Kav.10
Jakarta 13330
. 2013

Chris Kilbee
Fellow of the Association of Average Adjusters

Page 7 of 8

Sahat Panggabean, SH., ICAP

Managing Director

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