The Special Compensation P&I Clause, a supplementary clause to LOF 2011, 2000 and 1995 agreements that provides for an alternative method of assessing Special Compensation to the method prescribed by Article 14 of the International Convention on Salvage, 1989.

The total weight of materials on board the vessel that varies little from one voyage to another, including the weight of engine spares, spare propeller, spare anchor, spare tailshaft, stores, provisions, crew's effects, lubricating oil and fresh water. (A 20, 000 dwt bulk carrier may have a constant weight of 350 tonnes or more. ) It is routinely determined at the start of draught surveys. It is sometimes called the dead weight constant.

He should follow the average adjuster's advice, which will normally be to obtain Average Bonds and Guarantees on all sound cargo being discharged after the general average act, and to accumulate evidence required for the adjustment. The adjuster will make an estimate of the total value of the loss or damage and advise the shipowner of the rate of contribution required from each party.

 

A separate class of insurance cover offered by the P&I clubs against the costs of legal representation in the collection of freight or demurrage, or in the defence of claims by consignees, charterers, etc., and in connection with disputes with parties such as bunker suppliers, repairers, ship suppliers, etc. Not all shipowners require FD&D cover as well as P&I cover.

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