Collision

Claims for losses and damages to goods and property arising as a result of collisions between vessels are usually very complex matters. They can involve damage to each of the vessels and to each of the vessels’ cargo, death of or injury to persons on board of each vessel, aspects of General Average or Salvage as well as pollution, etc. Security will have to be obtained in respect of the various claims, and parties may seek to limit their liability. These issues will generally be very difficult and time consuming to resolve. When vessels collide, there is usually a degree of fault or responsibility on each of the vessels involved. When such an incident occurs, investigations need to take place and evidence be obtained in order to try to determine the circumstances surrounding the collision as well as the resulting losses to the vessels and any cargo involved. An apportionment of responsibility for the collision is then agreed or determined on a percentage basis between each of the vessels. At law, the settlement between the Owners is made on a single liability basis, whereby the Owner with the greater liability (in monetary terms) makes a single payment to the other. Except where one or both ships are able to limit their liability under statutory provision in the relevant jurisdiction, the settlement under the relevant collision clause of a vessel’s hull & machinery and/or P&I insurance cover will be made on a cross liability basis.