14th April 2021

ITIC warns on the importance of checking crew COVID-19 tests

Client news

ITIC - International Transport Intermediaries Club – highlights the importance of thoroughly checking the results of crew COVID-19 tests in a recent case handled by the insurer.

The case involved a ship manager arranging a crew change in Manila. The change was undertaken by the manager’s appointed port agent and all relevant COVID-19 protocols were followed. With the new crew on board, the vessel resumed its voyage and sent its port entry and free pratique documentation to the discharge port. However, both the agent and the local authorities at the discharge port discovered in the documentation that one of the crew who signed on at Manila had tested positive for COVID-19. Unfortunately, the positive test result has been missed by the ship manager, the port agent at Manila, the health immigration authorities and the vessel’s master.

As a result, the vessel was ordered to return to Manila to test the entire crew and make replacements as necessary. Additionally, the ship had to be disinfected. The delays totalled six days in Manila plus five additional steaming days.

The vessel owners put in a claim to the ship managers for around US$ 350,000. However, through negotiation, the claim was eventually settled at US$ 175,000 as a number of parties had failed to spot the positive test, including the owners themselves, not just the ship manager.

ITIC reimbursed the ship manager but encourages all parties to remain vigilant and to check documentation thoroughly. COVID-19 testing is likely to be a feature of seafaring life for some time to come, and a simple oversight such this can result in costly delays to the vessel and its cargo as well as causing unwelcome disruption for the crew.

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About ITIC
International Transport Intermediaries Club (ITIC) is the world’s leading provider of professional indemnity insurance to transport professionals across the globe.

As a mutual insurer, it has over 90 years’ experience providing cover to companies in the marine, naval architecture, aviation, rail, offshore and hydrographic industries. With 3,100 members in over 110 countries and with a worldwide network of correspondents, ITIC is the acknowledged leader in its field.

ITIC’s insurance has been developed primarily to cover claims of negligence – errors or omissions. Cover can also extend to specialist areas such as debt collection, loss of commission income, cyber liability, cash in transit and directors’ and officers’ insurance. ITIC’s wide cover also includes a unique discretionary insurance which could support claims not normally be paid by other professional indemnity insurers.

ITIC is managed by Thomas Miller. More details about ITIC and the services it offers can be found at www.itic-insure.com