The impact of unseaworthiness in carriage contracts & marine insurances

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The impact of unseaworthiness in carriage contracts & marine insurances


Author: Chan, Kwan-yi Ace
Title: The impact of unseaworthiness in carriage contracts & marine insurances
Degree: M.Sc.
Year: 2005
Subject: Hong Kong Polytechnic University -- Dissertations
Marine insurance
Average (Maritime law)
Stability of ships
Department: Graduate School of Business
Pages: 152 leaves ; 30 cm.
Language: English
InnoPac Record:
Abstract: A technical manager had negligently put an unseaworthy vessel to the sea. On voyage, her rudder was broken into two pieces and she started drifting. The Vessel was in distress and was towed to a refugee port in the States as "dead ship". Owners declared General Average. All interests contested on Owners' general average act on the ground that the Owners had failed to exercise due diligence in making the vessel seaworthy before and at the commencement of the voyage. Charterers had asked to premature redeliver the vessel to owners but claimed damages from the owners allegedly in respect of Owners' breach of charter party not providing a seaworthy vessel which included the loss of profit resulting from the failure to lift an outbound cargo in Ashtabula for Europe. The Cargo Receivers were considering carriage contract frustration due to the imminent need of the cargo in their plant that they could not wait until vessel's completion of her permanent repairs and were looking for damages for the extra forwarding costs and the loss of market.
The Vessel was not seaworthy at the commencement of the voyage. All discussions arise out of Owner's allegation of General Average Act. All actions for damages were ignited by Owner's intention to seek reimbursement of the general average expenditure incurred. Owners were trying to recourse to insurance in respect of all damages sued by the third parties as well as the repair costs, general average expenditure incurred. What is the position under insurance in respect of the unseaworthy vessel?

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