Poorly Trained Crew Could Compromise Insurance Cover

Monday November 26, 2018

The lack of sufficiently trained crew when dealing with IMO 2020 compliant fuel issues could affect a ship's insurance cover.

Pointing to emissions abatement equipment, also known as scrubbers, senior vice-president Steve Harris with insurance brokers Marsh has said problems could emerge. 

Marine hull insurance would normally provide for negligence by masters, officers and crew. But caveats exist to cover a lack of due diligence on the part of owners and managers.

Harris told maritime news provider Lloyd's List that if crew are not adequately trained to manage the emissions technology, there could be contractual consequences.

His comments echo others from within the shipping space. One commentator has said that struggling shipowners and operators are most likely to be the ones who find themselves unprepared for IMO 2020.

Hull and machinery insurance covers a ship as opposed to protection and indemnity which addresses third-party risk. From the start of 2020, ships will face a range of bunker fuels whereas in the current market, one grade of bunker fuel dominates.