Freight, Defence & Demurrage insurance is more commonly known as FD&D or Defence cover.
It differs from other classes of insurance in two important ways: firstly it only provides Members with cover for legal costs and expenses rather than for the underlying claim amount; secondly the cover is entirely discretionary.
The scope of cover is wide embracing a range of disputes that fall outside the scope of P&I, H&M and Loss of Hire insurances. Most cases fall into the following categories:
- Charter-party disputes
- Bunker quality disputes
- Bill of lading disputes
- Sale and purchase disputes
- New-building contract disputes
- Stevedore damage claims
- Disputes with suppliers, mortgagees, managers, pool operators etc
- Disputes with underwriters
- Crew / ITF disputes
For full details of the cover click here.
A copy of the latest FD&D Brochure can be found here.
In addition to handling disputes, North’s FD&D team provides loss prevention assistance and can help with contractual wording and general advice enabling members to avoid disputes before they arise.
FD&D also offers a number of benefits for its Members:
IMB Block Membership - check before fixing - Defence Class Members have free access to the International Maritime Bureau's "chartering experience" database which offers invaluable information about Charterers to whom a Member may not have previously fixed.
Global Legal Navigator - access through North online, Members have access to a wide range of commonly asked questions on a variety of legal subjects with answers provided by leading law firms from nearly all the important maritime jurisdictions.
Writ search facility - Defence Class Members who take out additional cover for MOA risks are entitled, free of charge, to writ searches in Australia, Canada, England, Hong Kong, New Zealand, Singapore and South Africa to check, prior to purchasing a ship, whether any writs have been issued and which have yet to be served upon the ship. These jurisdictions allow a writ to survive the sale of a ship and this facility provides an invaluable opportunity to reduce the risk of purchasing a ship which subsequently turns out to have outstanding claims which could result in the ship being arrested.
Maritime lien insurance for second hand ships - many jurisdictions grant a maritime lien status to claims which survive the sale of a ship. North has arranged additional insurance which is available to its Defence Class Members who wish to insure against the risk of such unforeseen financial losses. This cover is available to Members who buy MOA risk insurance and have carried out the writ searches described above.
Maritime lien insurance for Charterers' debts - this policy, available to Members, offers additional protection against claims being made against a ship as a result of the insolvency of a Charterer. It will also cover costs necessary for the completion of a voyage commenced prior to a Charterers' insolvency (for example bunkers, port charges and stevedoring costs) which would otherwise have been the responsibility of the Charterer.
North's large team of "in-house" FD&D lawyers comprises not only English solicitors and barristers, but also lawyers and attorneys from other maritime jurisdictions.
