We are working together with The Strike Club to enable shipowners and charterers to know there is an insurance which will cover the vessel’ s loss of time arising out of certain events.
This insurance cover is not intended to compete with the traditional loss of hire insurance, as the scope of cover is different whether due to period of indemnity or events insured.
The scope of the Class III cover is practical and perils insured against include many accidents which fall under the vessel’s P&I cover which only pays for direct costs.
The cost of cover is very affordable relative to the cost of traditional loss of hire cover and insignificant relative to the annual freight or hire income.

Examples of recent incidences falling under Strike Club cover :

 

Class III cover :

Risks coveredLimit of indemnity per occurrenceDeductible per occurrenceOur comments
Crew and officers strikes10 days1 dayNot usually required by Chinese owners
Collision with another ship, striking a fixed or floating object14 days2 to 5 days(i) The most important risk under this cover. 90% of the claims for shipowners in China emanate from this risk. (ii) Includes loss of time due to investigations by authorities(iii) Includes loss of time if your Chinese Hull insurer is unable to provide security timely
Unintentional grounding and stranding14 days2 to 5 daysThe Club’s largest Chinese claim relate to the risk
Illness, injury on board or caused directly10 days1 day(i) Includes vessel’s deviation time (ii) Includes loss of time arising from injury, death to stevedore, pilots etc.,
Desertion of crew10 days1 daySuch incidences have occurred for Chinese crew of Korean origin.
Discovery or alleged presence of drugs10 days1 day 
Pollution or alleged pollution emanating from vessel10 days1 dayIncludes detention by authorities investigating vessel’s liability
Action by authority against an entered vessel due to incident involving a vessel in same ownership in respect of collision, stranding, grounding, illness, death on board, discovery of drugs  Useful protection if owners are being threatened to pay an unreasonable settlement in lieu of arrest
Discovery of stowaways10 days1 dayStowaways are a common occurrence. These cost of handling repatriation are expensive which is covered under P&I. The time loss arising from vessel’s deviation to avoid a prolonged stay by the stowaway on board can be more expensive
Imposition of a state of quarantine on vessel10 days1 dayIncludes events such as SARS, and Asian Gyspy Moth provided owners acted properly

 

We summarise the Class I & II risks covered.

  • Port workers strikes ( stevedores / administration / customs / pilots / lock- keepers… )
  • Strikes by inland workers ( miners / factory workers…)
  • Blockades by truckers, fishermen, farmers
  • Environmental objectors
  • Boycotts by international trade organizations
  • Riots, civil commotion, political protest
  • Fire, explosion, mechanical breakdown on land ( port installations / railway networks… )
  • Certain weather conditions indirectly affecting the entered vessel
  • Natural disasters indirectly affecting the entered vessel
  • Aircraft impact or accident, or delay to or misdirection of air cargo
  • Accidental loss or damage to any vehicle carrying cargo to or from the entered vessel
  • Partial or total closure of a port or waterway by authorities
  • Closure of borders, import or export or export controls, embargo or prohibition
  • Physical or electronic damage caused caused by strikers, vandals, terrorists, saboteurs or malicious persons
  • Expropriation, confiscation or seizure of cargo loaded or to be loaded