THE ROLE OF THE SURVEYOR

The Surveyor is employed by the Underwriter to act on an impartial basis as follows:

1.To advise you regarding salvage and towage where necessary.

2.To make an assessment of the incident and to determine the cause of the damage or the cause of the accident.

3.To make a list of the damages together with recommendations for repairs. This list is copied to you to help you as a guide to the repairs for damages resulting from this loss.

4.To approve the Repair Contractors.

 

 

 

5.To review the quotations for the repairs and to discuss with you and the Repair Contractors any estimates that appear unreasonably high or unreasonably low.

6.Once all the quotations have been reviewed and appear to be satisfactory, the Surveyor reports the facts to the Underwriters.

7.If more damages are found during the repairs, it is YOUR responsibility to inform the Surveyor so that he can confirm to Underwriters that these damages were part of this loss and to assess further quotations from the relevant Repair Contractors.

8.When the repairs have been completed, the Surveyor will review all the invoices and confirm to Underwriters that the paid invoices are "fair and reasonable" to repair the damages resulting from this loss.

9.Upon completion of the repair and assessment of final invoices, the Surveyor will submit a final report and spreadsheet to Underwriters who will issue a “Loss Acceptance form” for you to sign.

Note: You will only be paid out on the lowest quotation plus any additional damage found but can use any approved contractor of your choice.

 

 

YOUR RESPONSIBILITY AFTER THE INITIAL INCIDENT

1.It is your responsibility to select the Yard and Repair Contractors, have them approved by the Surveyor and obtain at least two repair quotations along with an estimate of repair time. You must submit these to the Surveyor to assess.

2.It is your responsibility to act as the “Prudent Uninsured” and to instruct the Repairers to commence work.

3.If there are delays in commencing repairs, and the delays result in further damages, these damages will not be covered by your policy.

4.Should additional damages be uncovered during repair, it is your responsibility
to get your Contractor to issue you another quotation and for you to inform the Surveyor who will inspect the additional damage. Failure to do this could result in you not being paid for this additional damage.

5.It is your responsibility to pay for the repairs and issue paid invoices to the Surveyor to assess.

6.It is your responsibility to monitor and approve the repairs.

7.You must retain damaged equipment for Underwriters to dispose of.

UNDERWRITERS RESPONSIBILITY

Most marine insurance policies are of the indemnity type. This basically means that Underwriters are responsible for compensating you for the legitimate costs of your loss. The only way actually to establish those costs is for you to pay the costs in the first instance. Underwriters have no obligation to make advance payments to you and have no obligation to pay contractors.

Underwriters Claims Adjuster will study the Surveyors report and then advise you whether this loss is, or is not covered under the policy. Assuming the loss is covered under the policy, Underwriters will compensate you for the legitimate costs of the loss which have been reviewed and agreed by the Surveyor, less the policy deductions, when the repairs have been completed.

Occasionally Underwriters do make advance payments on large claims, if requested by the Insured and the amount requested has been agreed by the Surveyor.

RESPONSIBILITIES OF YOUR INSURANCE COMPANY

1.Appoint a Surveyor on behalf of Underwriters.

2.Assist you with the presentation of the claim to Underwriters.

3.Assist with the requests for advance payment if required.

4.Act as a mediator in the event of a dispute with the Surveyor.

5.Some Insurance Companies are able to settle claims which total less than US$25,000.00 if the Surveyor recommends that the figures are "fair and reasonable".

ABSENTEE OWNERS

If you are not able to be present at the initial stages of the claim, it is helpful if you can appoint a representative to work with the Surveyor and obtain Repair Contractors and quotations. Your representative should have the authority to instruct Repair Contractors. The cost of this representative will not be covered by your insurance, as it is not Underwriters responsibility that you are not able to be present at the initial stage of the claim.

IMPROVEMENTS

Many owners decide to have alterations and improvements carried out during major damage repairs. Provided that this is discussed during the "quotation" phase of the claim and the additional cost of the improvements (to be borne by you) can be agreed with the Surveyor and Repair Contractor, improvements may be agreed. For example if the plywood cabinet work was damaged and you wanted to replace it with varnished teak, the Surveyor would recommend to Underwriters that the reasonable cost of the plywood should be included in the loss but the additional cost of the teak should be to your account.

FINALLY

Communication between you and the Surveyor is essential for the smooth processing of a claim.