CLAIMS ASSESSMENTCLAIMS ASSESSMENT

Tosh MollerTosh Moller

Claims Assessment

• 70 swimming pools

• 10 tonnes of fish (per day)

• 2,000 cardboard boxes

Claims Assessment

• Claims assessment is a natural progressionfrom ITOPF’s on-site spill attendance

• Technical assessments for P&I Clubs, lawyers, IOPC Funds

• No guarantee that technical assessment = settlement

• Speed versus detail – overview or full assessment

Assessment Criteria

• Based on text of the Civil Liability & Fund Conventions and IOPC Fund 1992 Claims Manual

• Applied by ITOPF to all claims – consistency

• Underlying principles of reasonable measures are relevant to all incidents and all countries, irrespective of the type of pollutant or its source

Assessment Basis

• Reasonable measures - based on objective criteria:

– Response should prevent or minimise pollution damage

– Enhance natural processes

– Cleaning / Repair / Replacement of damaged property

– Level of costs / losses should be appropriate - local context

– Supported by scientific evidence

• Reducing delayselectronic copyraw invoices,narrative, maps, photographs

• Work with correspondents

local knowledge of incident

resources / rateslanguagelarge claims

Assessment Process

• Joint inspections/surveys with claimants/P&I/Fund interests

• Clean / repair / replace items

• Proof of ownership/purchase

• Check whether loss may due entirely or in part to factors other than oil pollution

• Account is taken of the age of the property and its durability

• Betterment – condition prior to damage

Field Surveys

• To provide clear & straightforward assessment

• Report and spreadsheet costs recommended as reasonablecosts recommended for rejection costs queried

• Several iterations

Assessment Aims

CASUALTY at Axyz, Eabcde - 14th May 2008Government Claim

SCOPE OF COMPENSATIONReasonable costs associated with:

Preventive measures

Environmental restoration

Property damage

Economic loss

• Actions judged on the basis of circumstances and decisions made at the time – hindsight is not applied

• Examples where actions and associated costs may be considered not to be reasonable:

Spraying dispersant on heavily weathered oil

Mobilising at-sea response vessels after oil has stranded

Booming fast-flowing rivers

Large scale removal of sand from beaches

Preventive Measures

Clean-up claim components - rates • Labour – contractors, local government, military, volunteers etc.

waged / salaried - overtime• Aircraft – commercial rates• Vessels – commercial rates / SCOPIC • Specialised equipment – value of item over expected life• Non-specialised equipment – market rates

------------------------------------------------------------Element of profit – commercial vs. governmentFixed costs vs. additional costsReduced rates for stand-by, cleaning, repairs etc.Memorandum of Understanding – Singapore MPADisposal – legislative requirements

Preventive Measures

PreventivePreventive measuresmeasuresDisposal costs

19,800 19,800 tonnestonnes spilledspilled

260,000 260,000 tonnestonnes of oily wasteof oily waste

Waste Generation Waste Generation -- ExampleExample

Emulsification80% water inclusion

Evaporation25% lost750 m750 m33

3,750 m3,750 m33

AMOUNTAMOUNTREMAININGREMAINING

1,000 m³ crude spilled

FORFORDISPOSALDISPOSAL

7,500 m7,500 m33

liquid wasteliquid waste(90% water)(90% water)

AT-SEA RESPONSE20% recovered

3,000 m3,000 m33

30,00030,000 mm33

solid wastesolid waste

SHORELINE CLEAN-UPInclusion of debris and

beach material etc.10 x original volume stranded

00

PROPERTY DAMAGE, ECONOMIC LOSS

Evidence of the damage needed to support claim Speculative and theoretical losses not valid Saved costs to be deducted from claimEvidence of normal income (previous 3-5 years)Catch records / Business statisticsClaimant is expected to mitigate loss

Loss mitigation

Fisheries

• Oiled fishing gear / facilities

• Tainting of stock

• Fishing or harvesting bans

• Public perception – consumers

Economic Loss

P u l a uB a t a m

BusingPulauBukom

PulauSebarok

Semakau

Semakau

PulauSudong

PulauPawai

Senang

RafflesLighthouse

Biola

Salu Hantu

Nongsa

Nongsa Is.

BatuMerah

Airport

Sekupang

PulauSambu

Kelurahan Belakangpadang

Tolop

P. Jandaberias

P u l a uL u m b aB e s a r

PempingBesar

Kasu

T a n g j u n -

k u b u

SINGAPORE

MALAYSIA

INDONESIA

JurongIsland

S I N G A P O R E

Ph

i ll i

pC

h an n e l

P. Labon

P. Takong

Batu-ampar

Lengkana

Sarang

Bertam Melintang

MamatPelangi

Serayacundang

Layang

KapalTakong

Nirup

Nipa

Mecan

Lengkang

Pecong

Panjang

Butung

Tandur

Dongdang

Semukit

Jello

Tekkon

Ketapa

Batu Berhanti

Jodoh

Bokur

Menkada

Belkangsidih

Dangsi

Sentosa

SerapatLingke

Terong

Katumba

Geranting

Tanjungladan

Kepalaganding

Se

l at

Bu

lan

Santo

Senkuang Pt.Kapur Pt.

Batam Centre

BatuAmpar

Desa Pulau Terong

DesaKasu

DesaPemping

DesaPecong

Desa Pulau Setokok

Desa Pantai Gelam

Desa Batu Legong

Kel.PulauBuluh

KecamatanSekupang

KecamatanBulang

KecamatanBelakangpadang

KecamatanLubuk Baja

KecamatanBatu Ampar

KecamatanNongsa

T e r i n gB a y

Menkada

Belkangsidih

Dangsi

NATUNA SEA

in Indonesian

ITOPF observations, 4-19.10.2000

Surveyed areas ofoil contamination

heavy moderate light

fisheries zones

Pasir

P u l a u

K e p a l a j e r i

PulauBatam

P u l a uB u l a n

Buluh

SingaporeIndonesia

Environmental Damage

• Reasonable & justifiable restoration accepted under CLC & FC

• The costs should be in proportion to the damage and expected benefits

• National legislation may include valuations based on abstract quantifications calculated from theoretical models

• Costs incurred for purely political or public relations reasons are beyond the scope of a technical assessment

• Claim assessment is a team effort involving both international and local expertise

• ITOPF assessment is a recommendation, not a settlement decision

• Support for case handler in negotiations with claimants

Concluding remarks