Gard Guidance to the Rules Richard Williams Gard Guidance to the Rules Gard Guidance to the Rules Richard Williams Published by Gard AS Head office: P.O. Box 789 Stoa, NO-4809 Arendal, Norway Telpehone: +47 37 01 91 00 Facsimile: +47 37 02 48 10 Website: www.gard.no Email: [email protected] Copyright © 2015 Gard AS All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, photocopying, recording or otherwise without the permission of the copyright owner. Cover design: Nick Havas Graphic production: Bransdal Grafisk Printed in Denmark by Rosendahls ISBN 978-82-90344-34-9 CLIMAWARE® The impact on the climate during the production of this printed matter is neutralised by supporting climate projects in developing countries, resulting in a corresponding reduction in CO2. Gard Guidance to the Rules 5 Preface I am delighted to offer to our Members, clients, brokers and other business partners our Gard Guidance to the Rules which aims to give navigational aid in the sometimes complex waters of P&I and Defence insurance. The first edition of the book was published in 2008 and proved to be in demand externally as well as being a very useful reference for our own staff dealing with underwriting, claims or legal issues. Since 2008, we have periodically updated the electronic edition of the Guidance, which is available on www.gard.no. However, we felt the time was ripe to do an end-to-end review to ensure that the book was fully updated in respect of Rule changes and to address typical cover issues arising in the day-to-day underwriting or claims handling. I am very pleased that Mr. Richard Williams again accepted the role as the main author for the book. Richard is a former partner in the London law firm of Ince & Co, and now a visiting professor and teacher of maritime law at the University of Wales, Swansea. His expertise in shipping law, writing and editorial skills as well as teamwork capabilities have again proved invaluable and deserve our greatest appreciation. As in previous publications, Richard has worked closely with a Gard team of experienced P&I professionals, who again have reached out to their colleagues in the organisation for comments and contributions. I am very grateful and proud that Gard has so many inspired and engaged employees who, aside from their daily duties and tasks, have managed to dedicate the time needed for this project. The Gard Guidance to the Rules is our way of sharing key P&I knowledge with our Members, clients, brokers and other business partners. I hope you will all find it helpful in your work and that you do not hesitate to contact Gard if you have questions or comments. Arendal, August 2015 Rolf Thore Roppestad Chief Executive Officer Gard AS 6 Gard Guidance to the Rules Acknowledgments The first edition of this book was written in 2008 and was itself a development of the foundations that were laid in earlier editions of the Gard Handbook on P&I Insurance, the first edition of which was published in 1972 and the 5th in 2002. However, since 2008, the corporate structure of the Gard group has seen many changes and the scope of cover that is now provided by the group is much broader. Consequently, staff members are required to provide guidance on a much broader range of questions and issues. Nevertheless, the one thing that has not changed in any way throughout these years is the ability and readiness of those staff members to provide their Members and Assureds with the maximum assistance and support. Consequently, the commentary that is provided in this new edition is the culmination of many hours of in-house analysis and consideration based on real issues, events and developments that the group has been required to consider and resolve. The deliberate usage of the word ‘Guidance’ continues to emphasise the purpose and intention of the publication and the desire of Gard to provide assistance to its Members and Assureds and also to those who work for Gard either in-house or on a delegated basis. The first edition of this Guidance purported to explain not only the extent of P&I cover but also the reasons why such cover might not be available in particular circumstances. However, since that time, Gard has sought to assist its Members by developing additional insurances that may provide cover for Members on payment of an additional fixed premium in those circumstances where mutual P&I insurance cannot provide cover. Therefore, the new edition also seeks to provide a detailed commentary on such additional insurances and to continue to do so in a readable and clear manner whilst at the same time treating all issues with the weight and importance which the subject matter requires, and which is expected by a sophisticated and knowledgeable readership. This is, after all, only what Gard personnel strive to do on a day-to-day basis. This work is the culmination of the collective and extensive experience and wisdom of all of the Gard workforce. My task was simply to edit all their contributions and I have again learned much whilst doing so. I cannot say that my task has been an easy one since all contributors have been ready to spend time to review drafts (often repeatedly) to ensure that the commentary is both accurate and as clear as circumstances (often complex circumstances) allow. This is as it should be and demonstrates the pride that those staff members have in their work and their desire to provide their Members and Assureds with the maximum assistance and comfort. I have once again been exceedingly fortunate to have had the assistance, support and encouragement of those whose expertise and experience I respect and value. Since this has been a truly collective project it is not possible for me to mention and thank individually all of those that have devoted their time and energy to it. However, you know who you are and I extend my profound thanks to each and every one of you. Gard Guidance to the Rules 7 However, particular thanks must be extended firstly to Bart Mertens and Lars Lislegard-Bækken who cheerfully assumed responsibility for coordinating and vetting the contributions that were made by individual staff members. Their assistance made the subsequent drafting process so much easier. Profound thanks must also be given to Nick Platt and Christen Guddal. Nick was the leader of the core project team and had the unenviable task of firstly collating all materials and then the even more unenviable task of reviewing my first drafts and pointing out their deficiencies and omissions in his customary courteous fashion. Nick is not only one of the most diligent and hard-working of persons that I have ever met but is also someone who has a very extensive experience across the whole breadth of maritime claims and who is able to draw on that experience to good and sensible effect when assisting Members and Assureds. Nick and I also profited enormously from the customary guidance, stewardship and overview that was provided on behalf of the Steering Committee by Christen Guddal who has the happy ability to stand back and spot issues that have been missed or wrongly or insufficiently described and which require clarification. Christen is the most professional of people and lives by the rule that if something needs to be done, it will be done. This project would not have been possible without the managerial support and commitment that has been provided unswervingly by the Steering Committee consisting of Kjetil Eivindstad and Svein Andresen as well as Christen Guddal and who not only provided the vision and drive that was necessary to make the project a reality but who also took time out of their ridiculously busy schedules to read and comment on all materials both meaningfully and constructively. In my experience, such dedication is certainly beyond the call of duty and is a clear illustration of the Gard traditional ethos as stated in the Gard Centenary Book: “to take all the steps that are required to help our clients navigate the often troubled waters of commercial life.” Finally, I also thank Randi Gaughan at Gard UK who once again not only eliminated most of my inexcusable typographical and formatting errors but also co-ordinated arrangements with the publishers with her usual patience and efficiency and made it possible to produce yet another stylish and polished finished product. I thank Gard once again for the opportunity to be involved with this worthwhile project. I repeat that I have learned much in the process and have had both the good fortune and the pleasure of learning from those whose knowledge and understanding is impressive and who clearly have a real concern for the wellbeing of Gard and its Members and Assureds. Richard Williams London, August 2015 8 Gard Guidance to the Rules Introduction The first edition of the Gard Guidance to the Statutes and Rules was written and published in 2008 with the intention of helping readers to gain a better understanding of Assuranceforeningen Gard’s Statutes and Rules by adding context to content, offering comments and interpretation and showing relevant inter-relationships between provisions. Since that time, the electronic version of the Guidance has been regularly updated as and when a change in circumstances required revisions to be made. However, some significant changes have been made to the corporate structure and asset allocation within the Gard group since 2008 and it is believed that the time has now come to have a thorough review of the Guidance.