PORT OF REFUGE:

Putting into a port of refuge for the purpose of operational necessity constitutes a
justifiable deviation so that insurance and other contractual rights remain unaffected some
examples are:

(a) Necessary repair to hull or machinery

(b) Necessary stores in order to complete the voyage safely like bunkers and water .
(if the vessel falls short during the voyage)
(c) Protection from rough weather like storm
(d) Shifting of cargo
(e) Leakage of oil from the stern tube seals
(f) Vessel is in peril.

If the action was taken in time of peril to preserve the common adventure , it is as the
same time a general average act.

What would be the procedure by the master for calling at a port of refuge?

1. Inform owners, charterers of your intentions.

2. Convey your preferred port of refuge and ask owners to confirm the same .
3. Owners to arrange agents/funds
4. Owners to arrange class/survey or and salvage association to attend hull repairs.
5. owners to arrange PI club in case cargo damage.
6. Master to inform owners, charterers and local date/time , location of discussion
including Bunkers R.O.B
7. On arrival port Master should obtain usual port clearances.
8. On berthing Master should lodge note of protest with the rights extend if required.
9. Damage sustained to the surveyed and repaired for surveyor’s recommendation.
10. On completion of repair master to obtain “interim certificates of class”. If
surveyor attendance not available then master to carry out a survey together with
the master of another vessel and draw up a “certificate of seaworthiness” staying
that to the best of their knowledge and after a visual inspection, the vessel appears
and safe to carry on sea voyage to the next suitable port.
11. should general average be declared then York Antwerp rules would apply.
12. In case of general Master may insist on contribution from other interests
guarantees, Lloyds , average bond.

Inview a deviation has occurred it is necessary for master to record the date/time,
position and bunkers R.O.B at that time , and again when the vessel retains her
original position . The vessel shall be deemed to be off hire during this period. The
person who decides Quantum of contributions is called AVERAGE ADJUSTER..
DEVIATION:

Ships must not without lawfull excuse deviate from the voyage contemplated in the
policy unless authorize by terms of the contract or statute of a ship deviates without
Lawfull excuse the insurers are “Discharged from Liability “ and charterers may sue
for damages or cancel the contract.

DEVIATION :

1). Route designated is departed from .

2). Usual route is departed from .
3). Ships must proceed in geographical order.

The clause of the policy shall stipulate precisely for what purpose vessel is allowed to
deviate .

PERILS:

This insurance covers loss of or damage to the subject –matter insured caused by

1). Perils of the sea rivers lakes or other navigable waters.

2). Fire, explosion
3). Violent theft by persons from outside the vessel
4). Jettison
5). Piracy
6). Breakdown of or accident to nuclear installations or reactor.
7). Contact with aircraft or similar objects, or objects falling there from land
conveyance , dock or harbour equipment or installation
8). Earthquake volcanic eruption or lightning
9). Earthquake volcanic eruption or lightning

This insurance covers loss of or damage to the subject –matter insured caused by:

1). Accidents in loading discharging or shifting cargo or fuel , bursting of boilers

breakage of shafts or any latent defect in the machinery or hull.
2). Negligence of Master Officers Crew or Pilots.
3). Negligence of repairers of charterers provided such repairers or charterers are not
an assured hereunder.
4). Barratry of Master Officer or Crew.

PRIVIDED SUCH LOSS OR DAMAGE HAS NOT RESULTED FROM WANT

OF DUE DILIGENCE BY THE ASSURED , OWNERS OR MANAGERS.

DEFINATION: Refers to accidents or casualties at sea, as defined in the N.I. Act

such as stranding , collision , heavy weather but does not includes ordinary wear or
tear olve sea /waves. The assured is in defined from loss or damage, however
undefined is not liable if damage or loss caused to lack of diligence by assured .
Further examples are fir, explosion. Jettison , privacy, negligence,
Barratry rtc. Policy also covers GA, SALVAGE<COLLISION.

WHERE DEVIATION IS EXCUSED UNDER M.I .Act 1906.

1). WHEN AUTHRIZED BY SPECIAL TERMS.(TOWAGE, SALVAGE)

2). CIRCUMSTANCES BEYOND CONTROL(B.WTHR, ICE ETC)
3). NECESSARY FOR SAFETY OF SHIP/CARGO (PRT OF REFUGE)
4). FOR PURPOSEOF SAVING HUMAN LIFE ,ASSITING A SHIP IN DISTRESS
5). IN ORDER TO COMPLY EITH A WARE ANTY(SEAWORTHINESS)
6). NECESSARY FOR OBATAINING MEDICALAID
7). WHEN CAUSED NY BARRATORY .
8). When the cause excusing the deviation ceases , the ship must resume her course
and prosecute her voyage with reasonable dispatch

ACTUAL TOTAL LOSS (ATL):

This occurs when subject matter is destroyed completely or so damaged as to cease
being a thing of the kind misused originally , or where the assured is irretrievably
deprived of it, In case of ATL , no notice of abandonment is required to be given.

PRESUMED TOTAL LOSS : Where the ship which had been insured is presumed
missing after a reasonable length of time and when ther is no further news of her , a
total loss may be presumed firm , perils of the sea.

CONSTRUCTIVE TOTAL LOSS (CTL): The MIA provides that a ship becomes
CTL when she is so damaged by a peril insured against that the cost of repairing the
damage would exceed the value of the ship when repaired. This occurs when the
subject matter is reasonably abandoned on account of its total loss appearing to be
unavoidable. The assured may either retain possession and trat the loss as a hundred
percent partial loss as he may abandon. The subject matter serve notice of
abandonment . while under writer is entitled to take over the property, he may not do
so , he may admit the loss and pay and leave the assured to bear costs of remaining
wreck.

PARTICULAR AVERAGE : This is defined by MIA as a partial Loss caused by a

peril insured against and which is not a General average loss and more directly
described as a partial loss arising from any type of a accident loss, A particular
Average loss falls directly upon the party interested in the subject matter. I.e in case of
hull damage the ship owners / under writers will bear the loss and in cargo damage/
under writers will bear the loss.

a). Straining ship in rough weathers.

b). loss of deck cargo / equipment due to heavy weathers.
c). Damage to hull/ cargo due fire
d). Damage to ship/ cargo due collisions / standings .
 In all cases, protest to be noted , under writers , surveyors. Owners etc to be
informed.
II) General Damage : This is a partial loss as a consequence of a GA act. The york
Anturerp(Y/A) rules.

a) Defines GA act as “ There is act when and only when any EXTRA ORDINARY
SACRIFICE or EXPENDITURE is internationality and reasonably made or
incurred for the OMMON SAFETY , for the purpose of preserving from PERIL,
the property involved in a COMMON MARITIME ADVENTURE . It is thus
important that following criteria must be satisfied.

GENERAL AVERAGE
RULE YA 74

THERE IS A GENERAL AVERAGE ACT WHEN , AND ONLY WHEN ANY

EXTRA ORDINARY SACRIFICE OR EXPENDITURE IS INTENTIONALLY
AND REASONABLY MADE OR INURRED IN TIME OF PERIL FOR THE
PURPOSE OF PRESERVING THE PRPERTY IMPERILED IN A COMMON
MARITIME ADVENTURE.

RULE G : GA ADJUSTMENT – VALUES PLACE ADV ENDS.

G.A.V .ACTS:

1. PORT OF REFUGE
2. VOLUNTARTY BY BEACHING TO A VOID SINKING
3. WORKING OF ENGINES WHEN AGROUND.

G.A.AVERAGE SACRIFICES:

1. JETTISON DECK CARGO FOR COMMON SAFETY.

2. SLIPPING OF ANCHOR TO AVOID COIL/FIRE
3. DAMAGE TO ENGINES / HULL WHILST END VRG REFLOATING

G.AVERAGE EXPENDITURES:

1. COST OF DISCH CARGO TO REFLOAT VSL OR FOR CARRYING OUT

NECESSARY REPAIRS.
2. HIRE OF TUG TO ASSIST REFOLATING VESSEL
3. PORT OF REFUGE EXPENSES
4. WAGES OF CREW DURING PORT REFUGE

CONTRIBUTORY VALUES ARE 1. SHIP 2. FREIGHT. 3. CARGO

OWNER MAY INSIST ON CONTRIBUTIONS AS FOLLOWS:-

1. CASH DEPOSIT
 2. SIGNING OF LLOIDS AVERAGE BOND BACKED BY BANK GUARANTEE
3. P&I. CLUB OR SIMILAR INSTITUTIONS GUARANTEES.
RULES APPLYING TO GAV AS PER YORK ANTWERP RULES:

RULE 1 : NO JETTISON ALLOWEDIN GAV UNLESS CARRIED IN ACCORDANCE

WITH CUSTOM OF TRADE.

RULE 2 : DAMAGE TO SHIP/CARGO CONSEQUENCE OF FACRIFICE AND BY

WATER ENTERING HATCHES FOR JETTISON ALLOWED- G.AVERAGE

RULE 3 : DAMAGE TO SHIP/CARGO BY WATER IN EXTGSHG FIRE -G.AV , NOT

FOR DAMAGE CAUSED BY SMOKE/ HEAT

RULE 5 : INTENSIONALLY RUN ASHORE (FOR COMMON SAFETY)

DAMAGE/LOSS G.AV

RULE 6 : SALVAGE EXP ALLOWED GAV, PROVIDED PERIL EXISTS.

RULE 7 : DAMAGE TO MACHINERY WHEN , AGROUND AND IN PERIL,

ENDVRG REFLOAT – ALLOWED GA

RULE 8 : EXPENSES OF LIGHTENING , RESHIPPING CARGO AND ANY LOSS

/DAMAGE DURING OPERATIONS – ADMITTED G.AV.

RULE 10:
1. EXPENSES OF PORT REFUGE
2. SHIFTING INCL TOWAGE TO OTHER PORT FOR REPAIRS.
3. RESTOWING CARGO
4. PORT EXPENSES
5. WAGES/ MAINTENANCE OF OFFERS / CREW
6. FUEL / SYORE CONSUMED

RULE 14 ; TEMP REPAIRS ADMITTED G.AV

RULE 15 : LOSS OF FREIGHT ADMITTED

RULE 17 : CONTRIBUTIONS MADE UPON NET VALUE AT THE PORT OF

TERMINATION OF ADVENTURE.

YORK ANTWERP RULES 74

EXCEPT AS PROVIDED BY THE NUMBERED RULES , GENERAL AVERAGE

SHALL BE ADJUSTED ACCORDING TO THE LETTERD RULES.

SOME IMPORTANT RULES FOR REFERENCE

RULE A : DEFINITION OF G.AV ACT
RULE B : BEARING OF EXP BY CONTRIBUTORY INTERESTS.

RULE C : ONLY LOSSES/DAMAGES/EXPENSES OF DIRECT CONSEQUENCES

SHALL BE ALLOWED . (NOT DELAYS – INDIRECT LOSSES.)

RULE D : RIGHTS NOT AFFECTED BY FAULT , NUT THIS SHALL NOT

PREJUDICE REMEDIES.

RULE E : ONUS OF PROOF IS ON THE PARTY CLAIMING IT.

RULE F : EXTRA EXP IN PLACE OF ANY OTHER EXPENSES WHICH WOULD

HAVE BEEN ALLOWABLE IN GAV , ALLOWED.

RULE G : GAV SHALL BE ADJUSTED UPON BASIS OF VALUES WHERE

ADVENTURE ENDS.

What are the differences between York Antwerp74 and 94 ?

Y.A 1994 Y.A 1974

1. Rule paramount in no case shall there be any allowance No rule Paramount

for sacrifice or expenditure unless reasonably made or (Reasonable)
incurred

2. Order of application : rule paramount , numbered rules, Order of application :

lettered rules (interpretation rules) Numbered rules then letterd
rules ( interpretation)
3. There is acommon maritime adventure when one or No mention of towing ,
more vessel are towing or pushing another vessel or pushing vessels or salvage
vessels , provided that they are all involved in operations
commercial activities and not in salvage operation .
4. Pollution liability is of the shipowner and not GA: In no Pollution liability is not
case shall there be any allowance in general average for mentioned in these rules
losses , damages or ezxpenses incurred in respect of
damage to the environment or .in consequence of the
escape or release of pollutant substances from the
property involved in the common maritime adventure .
(rule c)
5. All parties claiming in general average shall given notice No such provision
in writing to the average adjuster of the loss or expense
in respect of which they claim contribution wjthin 12
months of the date of the termination of the common
maritime adventure otherwise a .Adjuster does
 adjustment on basis of facts available to him (rule e)
6. After G.A is forwarded to the destination from P.O.R : No such provision
the rights and liabilities in general average shall remain
as nearly as possible the same as they would have been
in the absence of such forwarding (rulr .g)
7. When a ship is intentionally run on shore for the When a ship is intentionally
common safety , whether or not she might have been run on shore for the common
driven on shore , the consequent loss or damagr to the safety ,whether or not she
property involved in the common maritime adventures might have been driven on
shall be allowed in general average (rule v) shore, the consequent loss or
damage shall be allowed in
general average . ( could have
included damage to the third
party)
8. Salvage award as fixed per criteria in article 13 of Was silent as there was no
ISC89including the criteria the skill and efforts of the such provision in earlier
salvors in preventing or minimizing damage to the salvage convention 1910
environment , to beallowed as GA.
9. Special compensation payable to a salvor by the Was silent as there was no
shipowner under Article ISC89 under any other such provision in earlier
provision similar in substance shall not be allowed .(rule salvage convention 1910
VI)

Difference between Expenses and Implied Warranty :

The marine Insurance Act (MIA) sect33 defines a warranty n=by which the
assured undertakers the some particular act or condition shall be or not be fulfilled ,
irrespective of the risk . if it is not compiled with , then insurer is discharged from ,
liability from date/time of break.

A warranty may be express or implied . An express warranty is embodied in

the terms of the contract .E.g “vessel not to force ice’ or “ vessel not to proceed to
war/hostile area”. If the ship does proceed , it is deemed that the warranty is breached and
the person authorizing the same will be fully be liable for damages . It follows that if such
an order is given , Master must check relevant C/P to verify is vessel should proceed or
not . The express warranty may be , however excused when permitted by terms of
contract an on payment of higher premium . in all cases underwriters / owners are to be
informed for necessary permission.

In “ Implied warranty “. The warranty may not be specifically embodied in

the contract but by principle of insurance and common law they are understood as normal
legal practice e.g. the responsibility of the shipowner” to provide a sea worty vessel “ and
owner’s responsibility “ not to ship danferous goods” and “ to the order endanger
vessel /life , or likely to cause financial loss or liability , if so m he must take advice from
his owners . insurers.
What is Institute Warranty ?

The institute warranties are designed to fix standard trading limits of vessels not
engaged in regular service . The warranties are six in number first four put a ban on
trading to certain ice-bound regions in the far North during certain seasons of the year .
When vessels shall not trade.

1. Atlantic coast N of 54” 10 N , greatlakes , including St lawrance 21st dec-30th Apr.

2. Pacific coast north of 54”30 ‘ and west of 130”.50’W.
3. No Baltic North of a line mo to vasa 10th dec to 25th May BDi
4. Not N of 70” N.
5. No Siberia seas , Behring sea.

The fifth trading to certain Antartic regions south of 50”S except to ports in Patagonia
, chile, folkland, and the sixth prohibits the carriage of Indian coal between 1st March
and 30th June however from 1st July to 30th Sep t when permitted only for Asian ports
not west of Aden or East of Singapore.

APPENDIX VI

Reproduced by kind permission of the Institutue of London Underwriters 1/7/76.

INSTITUTE WARRANTIES
1. Warranted no:
a). Atlantic Coast of North America , its rivers or adjacent islands,
(i) north of 52” 10 N’ . lat and west of 50” W, long:
(ii) south of 52” 10 N’ in the area bounded by lines drawn between Battle
Harbour?pitolet : Bay Cape Ray/Cape North : port Hawkesbury /port Mulgrave and baie
Comeau / Montreanbetween 1st December and 30 th April b.d.i.
(iii) west of Bai Comeau Matane but not west of Montrean between 1st December
th
and 30 April b.d.i
(b) Great Lakes or St .Lawrence Seaway west of Montreal.
( c) Greenland waters.
(d) Pacific Coast of North America its rivers or adjacent islands north of 54”
30N Lat , or west of 130” ‘ 50 w, long

2. Warranted no Batlic Sea or Adjacent waters east of 15”E Long .

(a) North of a line between Mo(63”24’N. Lat)and vasa (63”06’N. Lat .)
between 10th December and 25th May b.d.i.
(b) East of line between Viipuri (Vyborg)(28”47’E. Long)and Narva(28”12’N
long). Between 15th Decemerand 15th May
(c) North of a line between Stockholm (59’20’N)and Tallinn(59”24’N Lat )
between 8th January and 5th may b.di
 (d) East of 22”E long . and south of 59” N Lat . between 28th December and
5th May b.d.i.

3. Warranted not North of 70”N .lat other than voyages direct to or from any port o
r place in Norway or Kola bay.
4. Warranted no Behring Sea , no East Asian waters north of 46”N. Lat and not to
enter or sail from any port or place in Siberia except Nakhodka and / or
Vladivostok.
5. Warranted not to proceed to Kerguelen and /or Croset Island or south of 50 “S
Lat except to ports and / or places in Patagonia and/or Chile and or / Falkland
island , But liberty is given to enter waters south of 50’S .lat if en route to or from
ports and or places not excluded by this warranty.
6. Warranted not to sail with Indian Coal as Cargo
(a) Between 1st March and 30th June , both days inclusive
(b) Between 1st July and 30th September , both days inclusive , except to ports
in Asia , not West of Aden or East of or beyond Singapore……