ABSTRACT

For many years underwriters had become increasingly concerned at their worsening experience of claims which in their opinion was attributable in the main to the poor quality of personnel employed on the vessels. In 1969, with the major revision of the ITC Hulls, we saw the introduction of the Negligence Co-insurance Clause (Clause 11) under which the assured became co-assurers for a proportion (10 per cent) of claims for loss of or damage to any boiler, shaft, machinery or associated equipment which was attributable in part or in whole to the negligence of master, officers or crew. The philosophy behind the introduction of this clause was the hope that if the shipowners were made co-insurers in respect of certain crew negligence claims they would be encouraged to improve the quality of the crew, particularly engine room personnel, which they employed.