TÜRK - PowerPoint Presentation

Slide1

TÜRK P&I INSURANCE

Ufuk Teker

General Manager of Türk P&I

InsuranceSlide2

We will…

•

g

ive

insight to establishment of Türk P&I Insurance

•

b

riefly

explain why having a local insurer is a plus

•

d

escribe the cover we provide

•

g

ive

a

n insight to the rules governing Türk P&I s operationsSlide3

TÜRK P&I

Türk

P&I received its license from the Turkish Ministry of Treasury on 18.2.2014 and immediately commenced accepting risks within The Turkish marine insurance sector being the

first local P&I insurance company

in

Turkiye

.

3 state enterprise insurance companies,

Güneş

Sigorta

,

Halk

Sigorta

and

Ziraat

Sigorta

and 3 local P&I Club correspondents

Metropol

Shipping AS

,

Omur

Denizcilik AS

and

Vitsan

AS

consociated to establish

Türk

P&I.

A representative from the Ministry of Shipping, Transportation, Communication is a continuous member of the Board of Directors.Slide4

TÜRK P&I

Türk P&I

keeps

continuous and close contacts with the local authorities and relevant

Ministries

as

well

as

Turkish

Chamber

of

Shipping

on a daily basis.

Türk

P&I is member of the Liability Insurance Committee of The Association of Insurance Companies of Turkey.

In the fields of shipping and other maritime affairs,

Türk

P&I is extensively involved in and plays an active role in the governmental legislation programs and their feasibility studies with the relevant ministries and other governmental authorities.Slide5

Why

Having

a

Local

Insurer

is a Plus?

In addition to the listed

adv

a

ntages

in the previous slide we will talk about privileges of having a local P&I insurer in Turkey:

advantages in communication – speaking the same language

developing tailor made products as per the needs of the local sector

s

wift

and efficient claim handling

marine insurance know-how

i

mproving

the

ship standards by loss prevention actions

tax

income

–

inflow of international currency into an economySlide6

P&I

Insurance

Cover

When

you conduct a service to the third parties and use your facilities, you have various exposures when something goes wrong.

The same applies to

Shipowners

or

O

perators

.

The

three

marine insurances, H&M, Cargo and P&I can sometimes be linked with each other in terms of completing the cover needed within the Maritime Industry but in most cases they clash with each other as they try to protect their own clients under the different covers they provide

.Slide7

P&I insurance

basically

provides

an

insurance cover

at sea for

legal liabilities to third

parties

,

environmental risks, crew claims, etc.Which legal liabilities?Slide8

Risks covered by Türk P&I

Personal

injury / illness / death

Collision

Wreck

removal

Damage

to fixed and floating objects

Accidental Pollution

Cargo

damage/shortage

Fines

StowawaysOther Slide9

Personal

injury / illness / death

P&I

insurance covers an owner’s liability

for death,

personal injuries and

illness of crew members which can occur

on

board an entered vessel,

including death or injury

of

passengers, stevedores, pilots and

any third party visitors to the ship. Slide10

Personal

injury / illness / death

Also

following

expenses

are

covered

;

- Repatriation & medical costs of sick or injured crew,Loss of crew members’ personal effects Crew substitute expensesSick wagesDamages / compensationSlide11

Collision

No

cover of the member’s

ship

1/4th of damage to other ship

or

4/4th with additional

premium

Some consequential liabilities e.g., pollution, personal injury Slide12

Wreck removal

Incidental Costs

for lifting,

removal,

breaking,

lighting or marking of an entered ship

Liabilities

incurred by a member as a result of the raising, removal or

breaking

of the wreck of an entered ship

Liabilities incurred because of the presence or involuntary shifting of the wreck of an entered ship Liabilities incurred, including costs/expenses incidental to the removal and disposal of cargo and bunkers on boardSlide13

Damage to fixed & floating objects

Physical damage

caused by an entered ship to:

–

docks

and terminals

–

fixed

and

floating

objects

–

fishing nets – coral reefsSlide14

Pollution

Typical claims arising out of pollution

Liabilities

for

loss of and/or

damage

to wild life and environmental

contamination

and pollution

Clean

up costs

Preventive and mitigation costs and

measures Costs of complying with Government directions Salvor’s compensation for pollution preventionSlide15

Pollution: Clean

up costsSlide16

Towage

Claims

arising

during

the

towage

of an

entered

ship Claims arising during the towage services provided by an entered ship towage contracts must have been approved by

P&I insurerSlide17

Cargo

damage and shortage

The

PandI

Clubs are not cargo underwriters but they provide insurance for the members’ liability towards the cargo carried onboard including but not limited to;

• liabilities for

loss

of or

damage to

the cargo

• disposal

costs of damaged cargo

• cargo’s proportion of GASlide18

Heavy weather: wet damage/lossSlide19

Finished steel productsSlide20

Fines

Related to Cargo

Related to Customs

Related to Immigration

Related to Accidental

pollution

DiscretionarySlide21

Stowaways

- C

osts

of

repatriation

-

Additional

costs for security

-

Pre

and post departure stowaway checks

- Costs of disembarkation and accommodation of stowaway - Costs of arranging emergency documentationSlide22

The Rules Govern

i

ng T

ü

rk

P&

I

Operat

i

ons

Local

Rules6102 numbered Turkish Commercial Code Articles 1247 – 1271 on carriage of passengers and their luggage by sea.General Terms published by the Under Secretariat of Treasury, Directorate of Insurance on the compulsory insurance of marine crafts for the owners’ third party liabilities.Tariffs published by the Under Secretariat of Treasury, Directorate of Insurance on limits of liability of compulsory insurance of marine crafts for the owners’ third party liabilities.Slide23

The

Rules Govern

i

ng T

ü

rk

P&

I

Operat

i

ons

International Rules(a) Conventions which are binding for Turkey (due to being in force and directly applicable above the Code due to Turkish Constitution Article 90)LLMC on limitation of liability from the maritime claims.(b) Conventions which are not yet binding for Turkey (since not yet ratified)Nairobi Wreck Removal Convention on Wreck Removal.(c) Conventions which are not yet ratified by Turkey BUT Turkey incorporated most of the rules of such Conventions within its local laws.

Athens Convention 2002 on carriage of passengers and their luggages by sea.Slide24

Re

i

nsurance

Arrangements

o

f

Türk

P&

I

T

ü

rk

P&I has its reinsurance arrangements under a quota share agreement with two major players within the Pandi Industry as well as on facultative basis with some others.The claims are handled directly by Türk P&I by an experienced claims team in Istanbul.Slide25

Türk P&I’s

Products

Türk

P&I provides the following specially tailored products in addition to Classic P

&I

Cover for Cargo Ships:

Liability Insurance for

Small Passenger Vessels and Ferries

Liability Insurance for

Fishing Boats

Liability Insurance

Diving Schools and BoatsLiability Insurance for Private and Commercial Yachts including Touristic YachtsSlide26

Aims

To

p

revent

an incident

occurring

To

mi

tigate

the consequences of an

incidentTo prevent it happening again by working with Members.How?giving seminars, conducting loss prevention, making ship visits, management audits,

making analysis of happened claimsSlide27

Objectives

Playing a key role in marine liability insurance sector

Providing P&I coverage for Turkish flagged ocean going vessels engaged in 

international commerce

Providing P&I coverage for all ocean going vessels flying

foreign flag

Being one of the

recognized P&I Club

in all over the

w

orld

.