Fire Claims The Cause

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Fire ClaimsThe Cause CostAn Insurers
ViewKarl LumbersLondon13th March 2003
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• Source of Data
• Overview of large cargo claims
• Cause of large fire cargo claims
• Risk Profile

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Data

• Source
• Claims Files
• Criteria
• 100,000 usd
• Cargo Liabilities
• Period
• 15 years
• Sample size
• 68 No 59m Value

2002
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Fire costs the industry over 20m (Est) in large
cargo claims a year
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Cause of Large Cargo Claims
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Cause of Large Cargo Claims
9th by No 2nd by Value
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Large Fire Cargo Claims Average Claim Value
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Type of Cargoes Involved
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Large Fire Claims by Value
6 x 1m
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Risk in Insurance Terms
Risk Frequency x Consequence
Fire Risk Low/Medium(4.5) x High (860,000usd)
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What Causes Fire Claims
Software Failure or Hardware Failure
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To err is human, indeed it is the cause of most
of Our misery. Invariably though it is to the
gods that we look for remedy Livy
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Human Error is the cause of most of our misery
and it is to the clubs that we look for
reimbursement
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Software v Hardware Failure
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Human Failure
High proportion of shore side input
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Origin of Large Cargo Claim Fires (Where known)
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One of our most common findings !!!! Daily Use
Tank
Deadman lashed in open position
Glass replaced with plastic tube
2002
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Fuel Oil DB Tank - Sounding Pipe
2002
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Sophisticated Cabin Heating !!!!
Note paper to protect deck
3/2003
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Plain Language !!!!!
2002
2002
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Tragic Consquences - 3 Deaths
Before
After
2001
2000
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What Contributed to the Fire(Where known)
Fishmeal Tobacco Cotton Woodpulp Coal
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What Type of Ship has Fires
m
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What Type of Ship has Fires
number fire claims far exceeds no cargo ships
in Club
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Is Age of Ship Relevant ?
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Age Band of Ships with Large Fire Claims
number of fire claims far exceed Club
entry For 15-19 yr age band
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Size of Ships with Large Fire Claims
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Size of Ships with Large Fire Claims
number of fire claims far exceeds entry of
10,000gt - 30,000gt ships in Club
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• 10 out of 68 fires occurred in port
• 52 of the ships were tramping
• 17 ships were on Voyage Charter
• 35 ships were on Time Charter

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JurisdictionTop 7
(3)
figures where fires occurred
3
9
8
3
3
1
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Large Fire Caused Cargo Claims Trend
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Risk Profile

• Dry Cargo ship
• 10,000gt - 30,000gt
• 15 19 years old
• Tramping
• Time Charter
• Spontaneous combustion/Discarded cigarettes
• Shore input

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What Can We Do ?
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• Know your cargo
• Ensure a Good Cargo Watch is maintained
• Enforce No Smoking Practices