ISU considers Bunker Removal Clause

At the meeting they discussed a range of issues and policy matters including the idea of a new Bunker Removal Clause for salvage contracts.

The proposal, from the International Group of P&I Clubs, suggests the introduction of a Bunker Removal Clause as an option in the commonly used Lloyd’s Open Form salvage contract. The intention is to enable liability insurers to have more influence over the process of removing bunker fuel from casualty vessels.

At the same meeting, salvors confirmed their intention to press for a change to the 1989 Salvage Convention at the forthcoming meeting of the over-arching marine law body, the Comité Maritime International, to be held in Beijing in October 2012. Possible changes to the Convention are set to be a key part of the CMI’s agenda.

ISU has suggested that changes should be made to the Convention to enable financial awards to be made that specifically recognise salvors’ efforts to protect the environment. The changes would also mean that payment for environmental protection in salvage cases would be more fairly spread between property and liability insurers.

The ISU AGM also confirmed ISU’s interest in the Landmark Consortium’s proposal regarding insurance and security for large containership casualties. The proposal is for an insurance product which would set an agreed, nominal value for each container in such cases.