New Mandatory IMO ISM Code to Warrant Successful Cargo Insur

DimitriScoufaridis · Post by **DimitriScoufaridis** » Thu Oct 03, 2002 1:00 am

I have done some research on this subject and I wanted to post my findings for the benefit of the members.

1. The effective date of July 1 2002 for the implementation of the ISM Code relates to Phase 2. Phase 1 was implemented on July 1 1998 (!) and applied to bulk carriers, tankers and passenger vessels.
2. Although the Code affects hull insurance it also has an effect on cargo insurance too. No insurance coverage is provided to the assured if at the time of loading he knew or he ought to know that either the vessel was not certified in accordance with the ISM Code or that a current Document of Compliance was not held by the owner of the vessel or operator. Such exclusion is given in the form of an endorsement (Cargo ISM Endorsement & Cargo ISM Forwarding Charges Clause) and the relevant risk would be covered against additional premium payment.
3. Obviously the above certificates cannot be demanded under the letters of credit as they would be held by the vessel owners. Alternatively, vessel owners’ certificates confirming their compliance would have to be requested.

Dimitri

DimitriScoufaridis · Post by **DimitriScoufaridis** » Wed Jan 22, 2003 12:00 am

Dear members,

After almost 7 months from the application of the ISM Code to other cargo ships (including container ships) and mobile offshore drilling units of 500gt and above, it would interesting to know the impact of the ISM Code on the banking sector.

Have any of you implemented this requirement? If yes, what kind of a document have you added to your DC conditions?

Dimitri

NigelHolt · Post by **NigelHolt** » Wed Jan 22, 2003 12:00 am