Content Page INTRODUCTION 1 THEORETICAL BASIS 2 Overview of PI Insurance 2 Overview of legal impact analysis 3 OVERVIEW OF THE EVER GIVEN SHIP AND ITS INCIDENT IN SUEZ CANAL 4 Overview of the Ever Given ship 4 Overview of the Ever Given incident in Suez Canal 5 About the incident 5 About the impact on international logistics 5 About the ship rescue journey 5 About the aftermath 6 Overview of the relationship between interested parties 6 EVALUATION OF PI INSURANCE AND THE LEGAL IMPACT OF THE EVER GIVEN INCIDENT 9 PI insurance in the Ever Given case 9 The legal implications relating to the Ever Given’s Stranding Accident in the Suez Canal 13 Domestic Egyptian Legislation and International Law Governing the Suez Canal 13 The Presidential Decree of the Nationalization of the Canal of 1956 13 Law No. 30 of 1975 on the Organization of the Suez Canal Authority 13 International Legal Issue relating to Ever Given’s Blockage of the Suez Canal 14 Cargo insurance 14 General Average 15 International Salvage Law 15 LESSON LEARNED AND RECOMMENDED SOLUTIONS 17 Lesson learned 17 Risks learned from EverGiven case 17 EverGiven incident is a wakeup call for the industry to improve risk management and safety 18 Recommended Solutions 19 CONCLUSION 21 REFERENCES
Insurance & Risk Management P&I INSURANCE AND LEGAL IMPACT CONCERNING THE STRANDING OF THE MV EVER GIVEN A P R E S E N T A T I O N B Y G R O U P Insurance & Risk Management TABLE OF CONTENTS 01 THEORETICAL BASIS 02 OVERVIEW OF EVER GIVEN ACCIDENT IN SUEZ CANAL 03 EVALUATION THE P&I INSURANCE FOR THE EVER GIVEN INCIDENT 04 LESSONS LEARNED & RECOMMENDATIONS Insurance & Risk Management 01 THEORETICAL BASIS Insurance & Risk Management OVERVIEW - P&I INSURANCE P&I insurance protects ship owners and ship operators against civil liabilities that may arise against third parties in the course of business and operation of ships Insurance & Risk Management P&I CLUBS A P&I club is a mutual insurance association that provides risk pooling, information and representation for its members 13 members of P&I club in total working in the International Group of P&I clubs, providing marine liability cover for approximately 90% of the world's ocean-going tonnage Insurance & Risk Management LEGAL IMPACT ANALYSIS The goal of legal impact analysis is to record and explain how a particular law or group of subject-linked laws works within a particular social setting (Colin S Gibson, 1982) Insurance & Risk Management OVERVIEW OF THE EVER GIVEN INCIDENT IN SUEZ CANAL 02 Insurance & Risk Management OVERVIEW - EVER GIVEN SHIP Vessel information: IMO: 9811000 Name: EVER GIVEN Vessel Type - Generic: Cargo - Hazard A (Major) Vessel Type - Detailed: Container Ship Status: Active Length Overall x Breadth Extreme: 399.94 x 59 m Year Built: 2018 Home Port: PANAMA Insurance & Risk Management During its operational history, up to the moment, there have been two considerable events which were 2019 Hamburg collision and 2021 Suez Canal grounding Insurance & Risk Management OVERVIEW - EVER GIVEN INCIDENT IN SUEZ CANAL 23 March 2021, 07:40 EGY Insurance & Risk Management GA CONTRIBUTION RESPONSIBILITIES The hull insurer is responsible for paying the ship's G/A contribution The cargo insurer is responsible for the cargo’s G/A contribution Insurance & Risk Management COMPLICATIONS IN DISTRIBUTING GA Long time and great cost to calculate GA & considerable number of containers on board (approximately 18,300) -> The contributions requested were complex Some cargo owners disputed the sum paid to the SCA Ship owner had breach the terms of the contract of carriage -> Cargo should not contribute to G/A PROTECTION AND INDEMNITY The UK P&I club is the guarantor for claims from cargo owners -> Prevent further damage to shippers for delays following declaration of GA Ever Given would have insurance coverage of billion USD Insurance & Risk Management CLAIMS AND COSTS INVOLVED IN THE P&I INSURANCE SCA claims for economic losses resulting from the accident = billion USD Loss of reputation with regard to the canal's transit = 300 million USD Compensation for cargo owners