Deductibles. Whilst there is no provision in the standard cargo clauses to apply any form of deductible, there is always a deductible expressed in a hull policy on full conditions.

The amount is agreed at the time the contract is agreed between the parties, and is deducted from all claims for total loss. The only exception is in respect of the cost of sighting the bottom of the ship following stranding, the cost of which is borne in full by the underwriters even if no damage is found; although they do not pay for the ship’s bottom to be scraped, nor for any repainting that may be necessary following such scraping.

The deductible is applied to all claims (total loss, 3/4ths collision liability, salvage, general average, and sue and labour) arising out of any one accident or occurrence. It makes no difference that repairs for two separate accidents are carried out at the same time; the deductible is still applied to each set of repairs separately. All heavy weather occurring in a single passage (port to port) is treated as a single accident for the purpose of applying the deductible.


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