Average Adjusters are expert in the law and practice of marine insurance and general average; they provide a professional and independent view on the claims arising from marine casualties. The Association of Average Adjusters was founded in 1869 with its prime objects the promotion of correct principles in the adjustment of marine insurance claims and general average, uniformity of practice amongst Average Adjusters and the maintenance of good professional conduct. Fellows of the Association have demonstrated their expertise by rigorous examination.
The purpose of this site is not only to provide information regarding the Associaiton and its Fellows, but also to act as a resource of information which wiil be of interest and assistance to its members and to the shipping and marine insurance industries, in particular. All categories of membership have access to additional resources.
Please advise the Webmaster of any errors or non-operating links.
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The Chairman's Address - 2013
At the Annual General Meeting of the Association on 9 May 2013, the Chairman, Keith Jones, delivered a paper entitled "Feeling frustrated and abandoned? Consider the York-Antwerp Rules".
A copy of this Address can be downloaded in pdf format HERE.
London International Shipping Week - 9-13 Sept 2013
This Conference will focaus on three main themes: Propelling World Trade, Maritime Security and Sustainable Shipping. A Gala Dinner will be held which is expected to be a sell out.
Follow this link for further information: www.londoninternationalshippingweek.com
IUA / AAA Market Briefing - 26 March 2013
This market briefing will examine the damage to ships main engines caused by sediment from fuel oils, otherwise known as ‘cat fines’, the resultant claims on the policies of insurance and any rights of recovery that might be available to ship-owners.
To be held on Tuesday 26 March 2011 from 12noon to 1pm (followed by buffet lunch) at the Ludgate Room, America Square Conference Centre, Crosswall, London EC3
Register via email to Deborah.Finch@iua.co.uk
Please note that it is hoped to record this event for display on this website.
The marked increase in reports of main engine damage attributable to Cat Fines has become a major concern.
Marine fuel quality remains an issue for ship owners with continued reporting of operational problems relating to fuel quality, including increased and rapid liner wear, faster deterioration of fuel system pumps and injectors filter problems, incompatibility between fuels and delayed ignition, to name just a few. Ship owners need accurate and error-free measures to know how to make their vessel more energy efficient thus reducing fuel costs and future emissions costs.
This market briefing will examine the damage to ships main engines caused by sediment from low sulphur fuel oils, which are now compulsory in many places, bad bunker claims generally and highlight the plight of insurers who are being met with the claims to pay for the damage. Speakers will investigate areas such as training and on-board filtering and how they can help to reduce vessel impairment, claims on the policies and likelihood of recovery.
Paul Hill of Braemar has 20 years of seagoing experience as an Engineering Officer including 8 years as a Chief Engineer with Condor Ferries on high speed catamarans. Before taking his current position at Braemar, he worked as Ship Manager at A&P Falmouth, a dry docking and ship repair in Cornwall. This role has given him extensive knowledge of project management, damage repair methods and commercial awareness in the ship repair industry.
Paul Griffiths of Bentleys, Stokes and Lowless became a partner at Bentleys in 1985. He has been instructed and consulted by clients in a very wide range of commercial shipping and marine related disputes arising in arbitration, the High Court and, of late, mediation. Paul's experience is in both the liquid and bulk cargo markets, with particular focus on disputes under time/voyage charterparties; contracts of affreightment, bills of lading and contracts for the sale of goods by sea. His clients are spread through the P&I Clubs, individual owners and charterers; liability insurers and international trading companies. Paul is recommended both in the Chambers UK and Legal 500 publications.
Keith Jones of AON is the current Chairman of the UK Association of Average Adjusters having qualified in 1984. Keith started his career with Richards Hogg International and worked for them for 27 years, managing offices in the Philippines and Greece before returning to the London office. In 2001 Keith was recruited by Marsh to open their London average adjusting operation. From Marsh, Keith moved to Benfield Corporate Risk, when they started a direct business operation, which was subsequently taken over by Aon in 2008.
The Reform of Insurance Contract Law: a Sisyphean task?
The English Marine Insurance Act came into force in 1906. Moves are afoot to consider the amendment of the Act to reflect modern attitudes to non-discoosure and misrepresentation and to warranties. Rhys Clift, a Partner in the firm of Hill Dickinson, has prepared a most interesting paper on the topic which can be downloaded in pdf format HERE.
AAA / IUA Market Briefing - OCTOBER 2012
On 17 October 2012, the Association in conjunction with the IUA, held a market briefing to highlight the current developemts on the definition of vessel. The speakers were Keith Jones, Chairman of the Assoicaition and guest John C. Cleary of Vedder Price. Richard Brooks, an Associate of the Association, has prepared a note of the proceedings a copy of which can be downloaded in pdf format HERE.
CHAIRMAN'S ADDRESS - MAY 2012
At the Annual General Meeting of the Association on 10th May, the Chairman, Paul Silver, gave an address entitled "Stuck in the Doldrums" in which he considered whether or not the ABS Loss of Charter Hire Insurance Wording is still fit for purpose. A copy of the address can be downloaded in pdf format HERE.
EXAMINATIONS FOR ASSOCIATES, MARCH 2012
David Pannell, the Association’s convenor of the Examining Committee reports that the Association’s examinations (Modules 1 and 2) were held between 19th and 23rd March 2012 at examination centres in London, Liverpool, Hong Kong, Singapore, Mumbai, Athens, Karachi, Dubai, Tokyo, Taipei, Jakarta and Lagos.
A total of 46 candidates entered to sit either one or both of these modules.
11 candidates were successful in Module 1 – Marine Insurance Act 1906 and related insurance principles with 3 candidate achieving distinction level.
The following passed Module 2 – Hull and Cargo Claims:-
Richard Sarll (7KBW Barristers, London) - Distinction
Kelly Reeder (RSA, London) - Pass
Jade Barker (Aon, London) - Pass
Mark Barker (Skuld 1897, London) - Pass
Andrew Slade (Charles Taylor, London) -Distinction
Lukas Dauksas (limarko Shipping, Lithuania) -Distinction
Alan Guangquan He (London & Shanghai) -Pass
Ching Weng Thim (Marine Claims Office Singapore) -Distinction
Robena Hassan (Catlin, Singapore) -Pass
Bhavika Parekh (Oriental Ins Co, Mumbai -Pass
Maurene Setyorini (Chas Taylor, Jakarta) -Pass
George Chou (Elite Risk Services, Taipei) -Pass
Nikolas Rallatos (Index Ltd, Piraeus) -Pass
New Associate Members
The above thirteen candidates who passed module 2, above, have now satisfied the examiners in both Modules 1 and 2 and thus become Associate Members.
Congratulations to our new Associate members.
Have you kept in touch?
If you are a member of the Association but haven't received an email from us since 5th March 2012 it means that we do not have your current contact details. If this is the case please would you email email@example.com with your full name, address and email information to enable us to update our database. If you have received an email since 5th March it means we have the correct information and you do not need to contact us.
NOTE re Allowances for interest under York Antwerp Rules
The Association has been asked by the London Insurance Market to advise concerning what discretion the adjuster has in relation to the allowance for interest in general average. The Chairman's response can be downloaded HERE.
PRESS RELEASE - 27th February 2012
DEMAND FOR AVERAGE ADJUSTERS BUOYANT DESPITE PRESSURES
“Urgent need” for more practitioners as current generation approaches retirement
Demand for the services of average adjusters remains at high levels despite increased competition and changes in the marine industry, according to the chairman of the Association of Average Adjusters (AAA) Paul Silver.
He is concerned, however, that the number of new people coming through the system will be insufficient unless more people obtain the necessary qualifications.
“It is clear from talking to colleagues that there is no shortage of work out there. The insurance industry continues to value the set of skills that average adjusters offer, which you simply cannot obtain elsewhere,” he said.
“However, I am concerned as to what will happen when people like me call it a day – will there be enough qualified practitioners to take over? There are exciting career prospects for a young average adjuster, and we urgently need more of them.”
It can take about 4/5 years of part-time study with some claims experience to pass the necessary exams and achieve the gold standard of Fellowship of the AAA. Silver estimates that the market will require around two new Fellows a year for the next decade to meet demand and replace those who are likely to cease practising.
More than fifty people have in the past few years passed the Associate exams, which can be a half-way house towards Fellowship or simply a useful qualification for anyone who wants to demonstrate knowledge of the marine and insurance industries.
“I would encourage young people, whether or not they have taken our Associate exams, to give the career serious consideration. And I urge employers to support and assist those who decide to go down this path,” said Silver.
He added that members of the association offer informal mentoring services to aspiring average adjusters. Founded in 1869, the Association of Average Adjusters maintains professional standards and oversees qualifications for the profession.
For further details, contact Mark Baylis, Complete Communications, +44(0) 7775 693994, firstname.lastname@example.org
PUBLICATION OF DETAILED SYLLABUSES FOR THE FELLOWSHIP EXAMS – MODULES 3, 4 AND 5
The Association is very pleased to announce the publication of a detailed syllabus for each of the Fellowship modules 3, 4 and 5 in the form of guidelines and lists of topics which the Fellowship candidate will be examined on. For candidates who are already studying for the Fellowship exams, not much has changed other than the syllabus for each of modules 3-5 is better explained. There are no new topics included. However, with the syllabuses now set down in considerable detail in keeping with current examination requirements for the first time, this is an advantage for both prospective candidates and for the examiners to allow certainty in terms of what the candidates may be examined on. We hope that this development will encourage Fellowship candidates to come forward from the large number of recently qualified Associates who have passed Modules 1 and 2. Any queries on the examinations that are not dealt with on the website, may be addressed to the Convenor of the Examining Committee, David Pannell - pannellandcompany@hotmail.
EXAMINATIONS FOR ASSOCIATES, OCTOBER 2011
David Pannell , the Association’s Convenor of the Examining Committee reports that
the Association’s examinations (Modules 1 and 2) were held between 25 and 27 October 2011 at examination centres in London, Liverpool, Hong Kong, Singapore, Athens, Mumbai, Tokyo, Taipei, Jakarta, Tehran and Caracas.
A total of 35 candidates entered to sit either one or both of these modules.
16 candidates were successful in Module 1 - Marine Insurance Act 1906 and related insurance principles with 5 candidates achieving distinction level.
The following passed Module 2 - Hull And Cargo Claims:-
Heather Robinson (Charles Taylor, London) Distinction
John Thompson (Charles Taylor, Liverpool) Pass
George Angelis (Braemar Salvage Assocn, Houston) Pass
Cher Wee Ling, Helen (Charles Taylor, Singapore) Distinction
Nanami Hara (Charles Taylor, Tokyo & Liverpool) Pass
Americo Gomez (Consultek C.A., Puerto Cabello) Pass
Chen Hung Yi, Jimmy (Charles Taylor, Hong Kong) Pass
Ho Ming Fai, Jason (Charles Taylor, Hong Kong) Pass
Dominic Ng (CTX Special Risks, Hong Kong) Pass
New Associate Members
The above ten candidates who passed Module 2, above, have now satisfied the examiners in both Modules 1 and 2 and thus become Associate Members.
Currently the Association now has approximately 54 Associate members and these are increasing through examination by about 10 per year.
Congratulations to our new Associate members.
With effect from October 1st the Secretariat of the Association will be located at International House, 1 St Katharine’s Way, London E1W 1UN within the premises of RTI Ltd. along with the Association’s library.
The London Shipping Law Centre is also there as well as the International Maritime Conciliation and Mediation Panel (IMCAM).
Mara Estefani, BA(hons) MBA will be the Administrator supported by the Secretary, David Taylor.
Annual Meetings 2011
We are pleased to announce that at the Annual Meeting of Fellows on Wednesday 11th May, Paul Silver was elected Chairman and Keith Jones was elected Vice-Chairman of the Association.
At the Annual General Meeting of the Association on 12th May, John Ahern, the outgoing chairman of the Association challenged the marine insurance market to make full use of these experts in marine insurance and law, rather than automatically turning to lawyers when faced with a claims adjustment issue they do not fully understand.
John told the meeting that the association’s advisory and dispute resolution panel was an under-used resource. “I detect a continuing preference among insurers to automatically seek advices from lawyers or other market professionals on adjusting matters with which they are not fully conversant and which could have been dealt with by references to the association or to one of its fellows.”
He followed with an illustration of the average adjuster’s expertise: a thorough analysis of the complex issues of loss allocation resulting from the many cases of piracy off the coast of Somalia. His own experience is a measure of the issue; during the first 40 years of his professional career, he had been involved in no more than three or four cases. Since 2008, his practice has dealt with some 30 incidents.
He explained that legal decision on piracy and contributions to ransom payments date back to the Roman civil law, but with long detention of ships, cargoes and crews by Somali pirates, contentious issues continue over the allocation of losses and costs and whose insurance policy should respond.
In addition to the loss of use of a vessel, detention of its crew and delay to cargo delivery for many weeks, funding usually has to be found before a captured can proceed. These include:
The ransom, likely to be delivered by airdrop in $100 denomination notes,
Fees for negotiators and lawyers
The air drop
Transit insurance on the ransom
Delivery of essential bunkers and stores or towage for the vessel as it is unlikely to be able to proceed otherwise.
Bullet or rocket damage to the ship and damage to ship’s equipment
Theft of ship’s equipment and stores
Consumption of bunkers and stores while the ship is being held.
“Pirate attacks are continuing as we sit here today, and in Somalia, it is now referred to as an industrial process. Without any political will by the world to do anything positive about it, we can expect many more piracy claims to cross our desks, until such time as a catastrophe occurs which will spur the nations of the world to act.”
A full copy of John Ahern's address entitled "1911 and All That" can be downloaded HERE.
On 13th May the Association iisued the following Press Release:
Resurgence of interest in average adjusting as career
The Association of Average Adjusters is seeing a resurgence in interest in the profession. At its annual general meeting yesterday (Thursday) in London, the AAA announced its first new Fellow since 2008 and 17 new Associate members from as far apart as Sweden, Tehran, Mumbai and Hong Kong. These 18 new members bring the total active membership of the association to a total of 36 Fellows and 45 Associates.
In addition, several further candidates have already passed one of the two modules of the associate examination, and there are four part qualified as fellows.
AAA has been able to arrange for students to sit examinations in in centres around the world: Athens, Brisbane, Cape Town, Doha, Dubai, Gothenburg, Hong Kong, Liverpool, London, Mexico City, Mumbai, Nicosia, Singapore, Sydney, Tehran and Tokyo.
Outgoing AAA Chairman John Ahern of Rogers Wilkin Ahern welcomed the new members and said: “The Association of Average Adjusters is making a very great contribution to the training of marine insurance professionals in this and other markets. That we also have a new fellow of the association shows this.”
The new Fellow is Burkhard Fischer of Albatross Adjusters, Limassol.
The new Associates are:
- Patrik Almström (Swedish Club, Göteborg)
- Mohammedreza Banaei (IRISL, Tehran)
- Ed Carey (Beazley, London)
- Derek Coop (Kiln Group, Cape Town)
- Daniel Gibbins (Blue Seas Adjusters, London)
- Iain Gilchrist (Marine Shipping Insurance Co Ltd, Gateshead)
- Alexander Greene (Richards Hogg Lindley, Liverpool)
- Kesavan Kannan (Al Sagr National Insce Co Ltd, Dubai)
- George Koleth (Lawyer, Singapore)
- James Lo Wing Fai (Houlder Insurance Brokers, Hong Kong)
- Freya Macleod (Richards Hogg Lindley, Liverpool)
- Stylianos Magkanaris (Swedish Club, Piraeus)
- Alejandro Martinez (Charles Taylor Adjusting, Mexico City)
- Lauder Shao Jie (Charles Taylor Adjusting, Hong Kong)
- Syed Ali Asif Naqvi (Milverk Pvt Ltd, Karachi)
- Sriram Pappu (Marsh India Insce Brokers, Mumbai)
- Madonna Youles-Fitzgerald (Liberty International Underwriters, Brisbane)
News from the chair
On Tuesday 23 November 2010,the Association was kindly requested by the International Underwriting Association to present a market briefing on the work of the Association. This was held at Balls Bros Mincing Pavement and over 100 insurers, adjusters,brokers, lawyers and surveyors attended. In the chair for the Association was John Ahern the current chairman and the presentation was in two parts:-
John Ahern presented a review of the Association’s work in the London insurance market since its founding in 1869 and the fact that the Associations exams are now the exam of choice for those working in marine insurance and the current popularity of the new modular exam structure has resulted in 40 Associates , some of whom it is expected will proceed to Fellowship status, thus maintaining the standards and ensuring the future of the Association. The exam results were announced and the names of the successful candidates and the new Associates, were read out to the gathering. The next item concerned the work of the Fee dispute panel and the Advisory Dispute Panel and since the last AAA meeting in May only one matter has been addressed and this concerned the Advisory & Dispute Resolution panel concerning issues on Piracy and whether certain items are allowable in general average. In this regard ,John Ahern reported:-
The Advisory Committee was requested to respond to a referral from cargo insurers in a London general average adjustment matter involving seizure of a vessel and her cargo by Somali pirates and in particular to address the question as to “whether or not expenses for crew and bunker during the detention of the vessel are to be allowed in GA”. It was subsequently confirmed that the question referred solely to wages of the crew and bunker consumption during the period when the vessel was held by the pirates and at such time a further enquiry was made by the cargo insurers - ie “* to consider the removal (theft) of navigational equipment by the pirates and consumption of food and stores during the same period, which were included in the GA claim”.
In addressing this enquiry the Committee members concerned have not been provided with any further information other than that summarised above and in particular the relevant adjustment has not been sighted.
Having reviewed the matter the five members of the Advisory Committee selected to respond were unanimous in their opinions which may be summarised as follows.
1. It is not considered that wages and maintenance of crew and bunkers consumed during the period of seizure by pirates can be allowed in general average since (a) an anchorage location to which the pirates take a vessel and her cargo are not deemed to represent a port or place of refuge so as to give rise to an allowance under Rule 11 of the York-Antwerp Rules and (b) the resort to the anchorage was not intentionally incurred within the terms of Rule A and relevant costs would represent a loss by delay excluded by the second paragraph of Rule C.
2. It is not thought that any claim can be allowed in general average for the loss of navigational equipment or food and stores which evidently amounts simply to theft by the pirates and not a GA act for the common safety of ship and cargo.
John Ahern added that another matter that had arisen recently in respect of piracy claim was whether or not damage sustained by the vessel in avoiding pirates was allowable as a general average sacrifice and he advised that under an adjustment drawn up in London this would not be in view of the decision in Covington v Roberts 1806 , where the Master of the “Nancy” carried an unusual spread of sail to outrun a French Privateer and Sir Mansfield C.J. had ruled that this was not an extraordinary sacrifice. However, it was recognized that in some countries the position was otherwise and damage caused by carrying a press of sail was treated as general average.
The main topic of the presentation was the proposed Claims Guidelines for Assureds ,Representatives and superintendents which have been approved by the Joint Hull Committee,Joint Claims Committee and the AAA and is now due to be referred to LIRMA for their comments and agreement.
Presentations were made by members of the committee viz Tony Kersey from Royal Sun Alliance , representing Underwriters, Gerry Williams of BMT Marine & Offshore Surveys for the surveyors and Richard Cornah for the Association, outlining the views from their perspective .The above guidelines are intended to reintroduce the correct manner in which claims should be handled and which was the norm some 25 years ago. They will not be mandatory and nor will they form part of the policy document and are intended to be helpful to the Assured etc to ensure a smooth transition of the claim and avoid the pitfalls and difficulties that have arisen in recent years. It is hoped that when the final version has been agreed that they will be welcomed by the market as a best practice guide.
Finally, John Ahern was pleased to announce that the annual dinner of the Association would be held at The Savoy next year on 12 May 2011.
Become an Annual Subscriber The Association of Average Adjusters has been in existence since 1869. It was then and is now, a source of expertise in marine insurance and maritime matters. The core membership comprises Fellows who have qualified by passing the Association's examinations. However, an important category of membership is Subscribership. [more]
Examinations The Association’s examinations are open to all who wish to take them, provided they have a bona fide interest in marine insurance or the marine industry in general.
The examinations required for the categories of membership are as follows:...[more]
Dispute Resolution Average Adjusters are natural mediators; our profession grew out of the need for people in the market to in help people reach fair settlements. The strengths and advantages of Average Adjusters are that we are practical, experienced generalists, who can understand and interpret clearly the views of specialists and help to reach sensible solutions on maritime casualties and claims. Our examination topics cover not just...[more]
Annual Reports The Annual Reports of the Association comprise transcripts of the procedings at the Annual General Meeting including the Chairman's Address. Recent Annual are now available; click the links below to download:
Earlier Reports are available in the Subscribers' Area.