Class II - General Trade Disruption Insurance

Explosion in shipyard

An insured vessel was undergoing maintenance involving hot work in one of the double bottom tanks. An explosion occurred, causing considerable damage to the vessel, this was thought to be as a result of the build up of combustible gases inside one of the tanks. The actual source of the ignition was never determined but the negligence of the ship repairer was deemed to be the proximate cause of the explosion.

Disruption to trade resulting from damage to the insured vessel caused by negligence of repairers is covered within the hull perils of the Transmarine policy.

After the excess period, the Assured was compensated for the disruption to trade caused by the casualty. Whilst the vessel was under extended repair as a result of this casualty the Assured chartered in another vessel to take the original vessel’s advertised service. The Assured was able to recover a proportion of the charterhire under the additional costs section of his cover.