Last month, Paal Haaland, from the Club’s claims department, gave an insightful presentation at the International Marine Claims Conference (IMCC) 2016, which is held annually in Dublin.
Paal focused on dealing with potential conflicts of interest between insurers when handling Loss of Hire (LOH) and Hull & Machinery (H&M) claims. He highlighted the importance of time and cost as crucial factors. Conflicts can arise from the choice of the repair yard between the hull insurer and LOH insurer as the former will likely favour cost, but the latter is most concerned about time as a factor. Most often the cheapest repair tender will take the longest time.
Through a worked example, Paal demonstrated how easily these conflicts of interest can arise. But, if there is an awareness of potential conflicts, through proactive management and cooperation, any such conflicts can be avoided. A case study of a very complex LOH claim handled by Norwegian Hull Club was explained to the captivated audience, emphasizing the positive result from excellent cooperation between the LOH insurer, the H&M insurer and the Assured.
Overall, Paal highlighted the need to understand the trade; the client; any technical issues; and cause of damage; whilst he emphasised the importance of open communication between LOH insurers and H&M insurers. He also reminded the audience, that the purpose of life is to be helpful, which is always a bonus. However, above all it is important to consider any potential conflicts at inception of the conflict, something which the Nordic Marine Insurance Plan does.
If you want to learn more about the conflicts that can arise between LoH and H&M insurers or the Nordic Marine Insurance Plan in general, you find Paal's contact details to the right.
Facts about IMCC
IMCC has been held in Dublin since 2004 and is where marine insurance claims specialists (Insurers, brokers, lawyers, surveyors) from around the world meet to discuss hot topics and learn a few things from each other. Approximately 250 participants attended the conference this year.