International Transport Intermediaries Club (ITIC) – a mutual insurer that provides professional indemnity cover for transport intermediaries operating in the marine, offshore, renewable and aviation industries – has advised ship managers to be wary of the risks and costs involved with claims of failing to meet contractual obligations.
The warning came as part of ITIC’s October 2023 Claims Review that cited a case of a ship manager managing two vessels for the same owner and allegedly failing to meet the required standards expected according to the signed BIMCO Shipman contracts.
For the first vessel, the owners alleged that the managers mismanaged their ships by failing to identify deficiencies, arrange and supervise maintenance and repairs, implement the onboard ISM and PMC systems, and communicate appropriately with the crew.
The owners further alleged that the managers failed to provide them with sufficient information in respect of ‘extraordinary’ expenditure to allow owners to make an informed decision on whether to approve incurring the cost.
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