Shipping is complex. Commercially, operationally, but also from the perspective of insurance and claims. Ship and cargo desperately need each other to transport the 11 billion tonnes of goods across the world’s oceans. An important link in the global economy.
The liabilities that ship and cargo face are divided between legal and contractual liabilities. Non-contractual liabilities are found in collisions, third-party property damage, environmental damage, personal injury. The contractual liabilities we find mainly in Charter Parties and Bills of Lading.
The role of insurance in shipping
P&I Clubs and other marine liabilities insurers are the specialists to offer the right insurance cover. Even more important are the specialists who handle the claims. These are not only liability claims, but also handling disputes between parties who have disagreed on the arrangements made. Charter Parties, in particular, contain numerous clauses that give rise to disputes, willingly and unwillingly. Shipping is costly. Large sums of money are involved very quickly.
Any claim or dispute demands the attention of people who are knowledgeable on the matter. It is further crucial that these people can muster the motivation to do their work with passion and drive. And lastly with a mindset to show active presence.
A lack of expertise, passion and drive will quickly lead to an escalation of a claim or dispute. Not to mention customer dissatisfaction.
How does all this relate to dispute resolution?
The answer does not seem difficult. There is indeed a direct link between expert legal & claims handling and the success of dispute resolutions. Expert people achieve better results and do not waste unnecessary costs.
Establishing legal & claims specialism requires leadership. Legal & claims handlers are professionals. They are not managers, but we should not make the mistake of making them less important as a result. Indeed, the right leadership makes them very important with career prospects of being able and wanting to remain professionals. The biggest risk is to promote a good legal & claims professional to a manager, if it turns out that at that point you lose a good legal & claims professional and get a bad manager in return.
The end result is a quality dispute resolution to the benefit of both client and insurer.
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