ABSTRACT
The Rule XVIII was introduced in 1924 as part of the process of adding flesh to the bare bones of the 1890 Rules, and apart from a small drafting amendment the text remained unaltered in 1950. The majority of average adjusters were of the opinion that when the shipowner had decided to effect repairs, he was entitled to claim for the reasonable cost he had expended in the repair of sacrificial damage, and this view was endorsed by a working group of AIDE, which recommended that an amendment be introduced in Rule XVIII to this effect, and also to clarify what was meant by the expression "constructive total loss". These recommendations were accepted at the 1974 Hamburg Conference, with consequent changes to the text of the Rule. The Rule closely follows English law as to the measure of indemnity payable by insurers when a ship has sustained damage resulting from insured perils.
