Presentation Transcript
Fire ClaimsThe Cause & CostAn Insurers ViewKarl LumbersLondon13th March 2003: Fire Claims The Cause & Cost An Insurers View Karl Lumbers London 13th March 2003
Slide2: Source of Data
Overview of large cargo claims
Cause of large fire cargo claims
Risk Profile
Data : Data Source
Claims Files
Criteria
100,000 usd
Cargo Liabilities
Period
15 years
Sample size
68 No 59$m Value
2002
Slide4: Fire costs the industry over 20$m (Est)
in large cargo claims a year
Cause of Large Cargo Claims: Cause of Large Cargo Claims
Cause of Large Cargo Claims: Cause of Large Cargo Claims 9th by No
2nd by Value
Large Fire Cargo Claims Average Claim Value: Large Fire Cargo Claims Average Claim Value
Type of Cargoes Involved: Type of Cargoes Involved
Large Fire Claims by Value: Large Fire Claims by Value 6 x 1$m +
Risk in Insurance Terms: Risk in Insurance Terms Risk = Frequency x Consequence Fire Risk = Low/Medium(4.5) x High (860,000usd)
What Causes Fire Claims: What Causes Fire Claims Software Failure
or
Hardware Failure
Slide12: “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
Slide13: “ Human Error is the cause of most of our misery and
it is to the clubs that we look for reimbursement”
Software v Hardware Failure: Software v Hardware Failure
Human Failure: Human Failure High proportion of shore side
input
Origin of Large Cargo Claim Fires (Where known): Origin of Large Cargo Claim Fires (Where known)
Slide17: One of our most common findings !!!!
Daily Use Tank Glass
replaced with
plastic tube Deadman lashed
in open position 2002
Slide18: Fuel Oil DB Tank - Sounding Pipe 2002
Slide19: Sophisticated Cabin Heating !!!! Note paper to protect deck 3/2003
Slide20: Plain Language !!!!! 2002 2002
Slide21: Before After Tragic Consquences - 3 Deaths 2001 2000
What Contributed to the Fire(Where known): What Contributed to the Fire (Where known) Fishmeal
Tobacco
Cotton
Woodpulp
Coal
What Type of Ship has Fires: What Type of Ship has Fires $m
What Type of Ship has Fires: What Type of Ship has Fires % number fire claims
far exceeds % no cargo
ships in Club
Is Age of Ship Relevant ?: Is Age of Ship Relevant ?
Age Band of Ships with Large Fire Claims: Age Band of Ships with Large Fire Claims % number of fire claims
far exceed % Club entry
For 15-19 yr age band
Size of Ships with Large Fire Claims: Size of Ships with Large Fire Claims
Size of Ships with Large Fire Claims: Size of Ships with Large Fire Claims % number of fire claims
far exceeds % entry of 10,000gt
- 30,000gt ships in Club
Slide29: 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
JurisdictionTop 7: Jurisdiction Top 7 9% 8 % 3% (3%) 3% % figures where fires occurred 3% 1%
Large Fire Caused Cargo Claims Trend: Large Fire Caused Cargo Claims Trend
Risk Profile: Risk Profile Dry Cargo ship
10,000gt - 30,000gt
15 – 19 years old
Tramping
Time Charter
Spontaneous combustion/Discarded cigarettes
Shore input
Slide33: What Can We Do ?
Slide34: Know your cargo
Ensure a Good Cargo Watch is maintained
Enforce No Smoking Practices