INTERNATIONAL MARINE CLAIMS CONFERENCE PORTMARNOCK, IRELAND

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INTERNATIONAL MARINE CLAIMS CONFERENCEPORTMARNOCK
, IRELAND
MARKET PRACTICES CLAIMS (AUSTRALIA) John
Dawes National Manager, Marine Claims Allianz
Australia Insurance Ltd. 30th September, 2004


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Australian Market- Composite submission-
Declining incidence of co-insurance- Small
number of players- Smaller number of recognised
Leads- Relatively strong capacity A100m (Euro
60m)- Loss of clients to overseas markets -
Australian rates strong - Soft o/s ratings

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AUSTRALIA- Coastline of over 12,000 miles
(20,000 klms)- Handful of Major Repairers-
Limited slipway/drydock capacity- 1 Major
salvor- Availability of Surveyors

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Initial Advice of Casualty - Normally by
owners/insureds broker to Lead - Occasionally
by - Insured directly - Prospective
surveyors/salvors - Shipping industry
contacts - By phone, followed by email/fax
confirmation
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Leaders Response - Consultation if
joint leads ( if no prior agreement) - Prompt
appointment of surveyor - Assist/advise insured
re possible repair facilities, appointment of
surveyors/salvors etc.After Hours Assistance -
Majority Claims Managers contactable 24/7 -
Brokers have A.H. contact numbers
(Mobile/home) - Companies have 24hr assistance
lines - Responsibility of Owners to act as
prudent uninsureds
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Selection of Surveyor - Responsibility of
Lead - Common panels between major leads -
Priorities governing appointment 1)
Expertise 2) Professionalism 3) Location
Response time 4) Cost - Appointment of
surveyor by Insured rare in non- contentious
claims unless only to act as superintendent re
repairs.
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Instructions to Surveyor - Primary concerns of
Lead are causation and quantum. - Report on
above as soon as possible - Extent of any
necessary repairs - available facilities
(slipways/repair yards) - assistance required
(salvors etc) - All actions/advice given to be
on WP basis - Usually given policy details,
but are not to comment on indemnity unless
specifically requested to do so by Lead
only. - Customary to have Service Agreements in
place - Terms of engagement - Compliance
requirements - Fee structure
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Legal Advisers - Appointment by Insured -
Unusual re non-contentious matters - Possible
if prospect of recovering non - insured
amounts from t/p (eg Amounts below deductible)
- Appointment by Lead - Selection - Horses
for Courses - Individual practitioner rather
than firm - Priorities - Similar to
surveyors - Expertise re advice required -
Availability - Absence of conflict of
interest - Locale - Cost
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Legal (cont.) Instructions. - Specific and
generally in writing - Claim is under control
of Lead, not Legal Advisers Service
Agreements. - Majority of Insurers have these
in place - Terms of engagement - Service
standards - Fee structure Expenses. -
Normally no budget limits set - Estimates
obtained prior engagement - Monitored as scope
of instructions varies
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Loss Adjusters (as distinct from surveyors) -
If appointed by Owners, quickly known by
Insurers due to limited number of local
alternatives - Little contact (if any) with
Insurers prior to receipt of POA or full
Adjustment - If appointed by Lead, ongoing
dialogue. - Some Australian leads are relying
more on in house expertise ex adjusting
personnel - Not fully accepted by all
insurers
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Brokers Role. - Varies from almost zero to
extreme - Expected Responsibilities -
Initial notification to Lead -
Collection/submission of Owners
claim documentation to Lead - Obtaining
owners agreement re settlement - Facilitating
collection of claim monies - settlement funds
from co-ins to Owner - co-ins proportion of
fees paid by Lead - Various degrees of
professionalism
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Reserving. - Based on reports from
surveyors/adjusters re extent of repairs
required costs - Fees Based on experienced
estimate of anticipated level of
involvement - Generally conservative and
accurate minimal IBNER movement - Trust in
leaderLiaison with PI Club - Rare unless
potential common savings - Reduced involvement
of Clubs with smaller tonnage - Liabilities
underwritten by HM insurers
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Counter Guarantees - Original Guarantees signed
by Lead on behalf of all co-ins - Counter
Guarantees normally obtained by LeadPayment of
Claims - To insured via Broker - Brokers role
to collect from co-insCentral Accounting
System - NoneMarket Protocol - None specific
to Marine Claims - Insurance Council of
Australia (ICA) - General Insurance Code of
Practice - Standards / Sanctions