IMO2020 Related Claims Starting to Appear: Marine Insurer
Protection and indemnity club Gard has said it is beginning to deal with claims related to the International Maritime Organisation (IMO) 0.5% sulfur cap.
Although cap is still some months away, the club has said it has around 100 claims on its books that are linked to the sulfur rule change in bunker fuel.
The nature of disputes vary, according to the club’s chief executive Thore Roppestad, but include disputes between owners, charterers and bunker suppliers.
“We also have a couple of claims related to machinery damages due to the quality of fuel which is not compliant to the engines and we also have loss of hire incidents, which we will have more of due to scrubber malfunction and other issues”, the executive was quoted as saying by maritime news provider Lloyd’s List.
Machinery damages may start small but can end up big by becoming groundings or major accidents, he added.
Roppestad was participating in an industry panel event in Oslo. P&I clubs cover third party risks in shipping. Engine-related issues are covered by hull and machinery insurance.
Source: Ship & Bunker