Itic issues risk warning for ship managers
The International Transport Intermediaries Club (Itic), a mutual insurer which offers professional indemnity cover for transport intermediaries in various industries, has cautioned ship managers about the risks and costs associated with failing to meet contractual obligations.
In its October 2023 Claims Review, Itic highlighted a case where a ship manager allegedly didn't meet the expected standards outlined in Bimco Shipman contracts while managing two vessels for the same owner. The manager's lapses included deficiencies identification, maintenance oversight, ISM and PMC system implementation, and crew communication.
The owners claimed USD 9.5 million in damages, but Bimco Shipman contracts limited liability to USD 1.5 million per ship. With Itic's support, the ship managers settled at USD 1.4 million in total, emphasising the importance of adhering to contractual obligations and having professional indemnity insurance. (pb)