Defence (FD&D) Insurance
FD&D Insurance (Freight, Demurrage and Defence) covers a Charterer against any legal costs or expenses resulting from pursuing or defending claims arising from contractual disputes.
The most common cases relate to disputes under the terms of the charterparty, but disputes arising under bills of lading or other forms of contracts of carriage approved by the Club are also covered. The Club has an experienced in-house team that help to manage and advise clients on how to handle each case.
Cover is discretionary and is based on an assessment of the merits of the case. Where possible we will always look to settle on commercial terms but if a case needs to go to mediation, arbitration or litigation then this process is managed by the Club’s team. Shipping disputes are costly and time consuming and the services of the Club in helping to manage these problems is invaluable to many of our clients.
We can provide a limit of liability up to USD 5 million for FD&D cover and the deductible and policy terms are structured to suit the Charterers individual needs.
EXAMPLE OF FD&D CLAIMS INVOLVING BOTH TIME AND VOYAGE CHARTERS
Charterer Voyage Charter Form Americanised Welsh Coal Charter Type FD&D Claim / Demurrage Class I Defence (FD&D) Laytime and demurrage problems Synopsis: This matter involves a Charterer (the Assured) attempting to recover a substantial claim for demurrage from his sub-charterer. The FD&D department of the Club is immediately instructed to provide a preliminary advice on how best protect the disponent…Read More »
Charterer Period Charter Form NYPE Type FD&D Claim / Failure to Follow Charterers Orders Class I Defence (FD&D) Failure of owners to follow charterers' orders Synopsis: This case highlights the exposure of a Charterer to an abusive Owner prepared to deviate from the contractual terms and to lien the cargo as security for an unwarranted claim in terms of quantum.…Read More »
Charterer Time Charter Form Baltime Type FD&D Claim / Frustration Class I Defence (FD&D) Frustration of time charterparty Synopsis: This case deals with the delicate legal English law principle of frustration where sound legal advice from the Club and English solicitors is paramount to avoid unpleasant consequences arising of a potential repudiatory breach for unlawful termination of contract. The advice…Read More »
Charterer Voyage Charter Form Gencon Type FD&D Claim / Cancellation Class I Defence (FD&D) Cancellation of a vessel under a voyage charter Synopsis: A premature cancellation can place a party in what is called in English law anticipatory breach allowing the other party to claim damages which otherwise would not have arisen. It is not uncommon for a charterer to…Read More »