Phase II Law Solved MMD QP 2012-2014

Phase II – Maritime Law
January 2012
Page 1
Q.1 Explain the provisions of UNCLOS with respect to internal waters, territorial
sea, archipelagic waters, contiguous zone, Exclusive Economic zone and
Continental Shelf of coastal states.
Answer
PLEASE DRAW THE FIGURE DONE IN THE CLASS. Also, in the figure where
„LAND‟ is written, under that please also add – “rivers, estuaries, lakes etc. And these
form part of INLAND WATERS of the country”.
UNCLOS defines major zones where different standards, rights and rules are applicable:
 Internal Waters: all waters landward of the baselines (e.g. low-water line) and all
harbours (Any law in force in the country shall also apply in its internal waters). The
right of innocent passage does not exist in the internal waters.
 Territorial Sea: the sea within a distance of 12 nautical miles) from the baselines (Any
law in force in the country shall also apply in its territorial waters as the country has
TERRITORIAL SOVEREIGNITY. The right of innocent passage shall exist in the
territorial waters. In the territorial sea, submarines and other underwater vehicles are
required to navigate on the surface and to show their flag.
 Contiguous Zone: the sea beyond the territorial waters but within a distance of
twenty-four nautical miles from the baselines (Within its contiguous zone, the country
shall have the SOVEREIGN RIGHT to exercise all the powers which may be
considered necessary to prevent contravention of any fiscal law or any customs,
immigration or sanitary law and to make such contravention punishable.
 Exclusive Economic Zone (EEZ): the sea beyond the territorial waters but within a
distance of two hundred nautical miles from the baseline. The country enjoys
SOVEREIGN RIGHTS for the purpose of exploration and exploitation of marine
resources for its own commercial benefit. Exploration and exploitation of marine
resources includes fishing, oil and gas exploration etc.
 When UNCLOS refers to the continental shelf, however, it is using "continental shelf"
as a legal term. While the EEZ captures a lot of the continental shelf for many
countries, it does not capture all of it. As such, UNCLOS includes provisions for
nations to lay claim to a continental shelf that exceeds 200 nautical miles from the
baseline by establishing the foot of the continental slope. These provisions allow for
an extension of an additional 150 nautical miles from the baseline or 100 miles from
the 2,500 meter depth. Nations exercise over the shelf the SOVEREIGN RIGHTS for
seabed mining and conducting marine scientific research.
Page 2
Q.2 Discuss the provisions of the Merchant Shipping Act 1958 as regards
unseaworthy and unsafe ships. What are the provisions of MSA 1958 with
regards to:-
(a)Sending an un-seaworthy ship to sea and
(b)Obligation of Owner and Master to crew with respect to seaworthiness.
(c)Explain Certificate of Seaworthiness.
Answer
(a)
Section 334 in the MSA deals with unseaworthy ship and states that an unseaworthy ship
shall not be sent to sea and gives details as follows:
Firstly, a ship is considered to be “unseaworthy” within the meaning of this Act when the
materials of which she is made, her construction, qualifications of the master, the number,
description and qualifications of the crew including officers, the weight, description and
stowage of the cargo and ballast, the condition of her hull and equipment, boilers and
machinery are not such as to render her in every respect fit for the proposed voyage or
service.
Secondly, every owner or Master who sends or attempts to send an Indian ship to sea from
any port in India in such an unseaworthy state that the life of any person is likely to be
thereby endangered shall, be guilty of an offence under this sub-section.
(b)
The obligation of owner to crew with respect to seaworthiness
In every contract of service between the owner of an Indian ship and the master or any
seaman thereof, and in every contract of apprenticeship whereby any person is bound to serve
as an apprentice on board any such ship, there shall be implied an obligation on the owner
that such owner and the master charged with the loading of such ship and preparing her for
sea shall use all reasonable means to ensure the seaworthiness of the ship for the voyage at
the time when such voyage commences, and to keep her in a seaworthy state during the
voyage. In order to ensure that the requirement of seaworthiness is complied with, the Central
Government may, either at the request of the owner or otherwise, arrange for a survey of the
hull, equipment or machinery of any seagoing ship by a surveyor.
(c)
Contents of certificate of seaworthiness - The certificate states that the ship is seaworthy and
properly equipped, fitted and ventilated; in the case of an un-berthed passenger ship, the
number of passengers which she is capable of carrying; and in the case of a pilgrim ship, the
number of pilgrims of each class which she is capable of carrying. The Certificate of
Seaworthiness shall be in force for a period of one year from the date of issue or for such
shorter period as may be specified therein and it shall be issued in duplicate.
Page 3
Q.3 Write short notes on the following:

(a) London Dumping Convention.
(b) International convention relating to Intervention on the high seas in case
of Oil pollution casualties.
Answer
(a)
The London Dumping Convention (now known as London Convention) was adopted on 29
December 1972 in London and entered into force on 30 August 1975. The Convention
established to control pollution of the sea by dumping of wastes which could create hazards
to human health or to harm living resources and marine life, to damage amenities, and to
interfere with other legitimate uses of the sea. It also encourages regional agreements
supplementary to the Convention. It contains three Annexes: dumping of matter listed in
Annex I is prohibited; dumping of matter listed in Annex II is allowable only by special
permit; dumping of matter listed in annex III is allowable only by general permit.
It calls on Parties "to promote measures to prevent pollution by hydrocarbons, other matter
transported other than for dumping, wastes generated during operation of ships etc.,
radioactive pollutants and matter originating from exploration of the sea bed."
(b)
The Torrey Canyon disaster of 1967 revealed certain doubts with regard to the powers of
States, under public international law, in respect of incidents on the high seas. In particular,
questions were raised as to the extent to which a coastal State could take measures to protect
its territory from pollution where a casualty threatened that State with oil pollution, especially
if the measures necessary were likely to affect the interests of foreign ship-owners, cargo
owners and even flag States.
The Convention which resulted affirms the right of a coastal State to take such measures
on the high seas as may be necessary to prevent, mitigate or eliminate danger to its
coastline or related interests from pollution by oil or the threat thereof, following upon a
maritime casualty.
The coastal State is, however, empowered to take only such action as is necessary, and after
due consultations with appropriate interests including, in particular, the flag State or States of
the ship or ships involved, the owners of the ships or cargoes in question and, where
circumstances permit, independent experts appointed for this purpose.
A coastal State which takes measures beyond those permitted under the Convention is liable
to pay compensation for any damage caused by such measures. Provision is made for the
settlement of disputes arising in connection with the application of the Convention.
The 1969 Intervention Convention applied to casualties involving pollution by oil. In view of
the increasing quantity of other substances, mainly chemical, carried by ships, some of which
would, if released, could cause serious hazard to the marine environment, the 1969 Brussels
Conference recognized the need to extend the Convention to cover substances other than oil.
Page 4
The Conference adopted the Protocol relating to Intervention on the High Seas in Cases of
Marine Pollution by Substances other than Oil.
Q.4 Write short notes on:

(a) FAL convention and the list out the various forms those are mandatory.
(b) Certificates to be carried in Special Trade Passenger Ships.
Answer
(a)
The Convention on Facilitation of International Maritime Traffic (FAL Convention) includes

in its Standard 2.1 a list of documents which public authorities can demand of a ship and
recommends the maximum information and number of copies which should be required. In
its Annex, the International Maritime Organization (IMO) Convention on Facilitation of
International Maritime Traffic (FAL) contains "Standards" and "Recommended Practices" on
formalities, documentary requirements and procedures which should be applied on arrival,
stay and departure to the ship itself, and to its crew, passengers, baggage and cargo.
IMO has developed Standardized Forms for seven of these documents, which are:
 IMO General Declaration (FAL form 1).

 Cargo Declaration (FAL form 2).
 Ship's Stores Declaration (FAL form 3).
 Crew's Effects Declaration (FAL form 4).
 Crew List (FAL form 5).
 Passenger List (FAL form 6).
 Dangerous Goods (FAL form 7).
Two other documents may be required under the Universal Postal Convention and the
International Health Regulations. The general declaration, cargo declaration, crew list and
passenger list constitute the maximum information necessary. The ship's stores declaration
and crew's effects declaration incorporate the agreed essential minimum information
requirements.
(b)
Contents of certificate A
(1) The first of the certificates is called certificate A and shall be in the prescribed form and
contain such particulars as may be prescribed.
(2) Certificate A shall contain the following statements and particulars:
(i) That the ship is seaworthy;
(ii) That the ship is properly equipped, fitted and ventilated;
(iii) The number of special trade passengers the ship is certified to carry; and
(iv) Such other particulars as may be prescribed.
(3) Certificate A shall remain in force for a period of one year from the date of issue or for
such shorter period as may be specified therein.
Page 5
Contents of certificate B
The second of the certificates is called certificate B and shall be in the prescribed from and
shall state:
(a) the voyage which the ship is to make, and the intermediate ports (if any) at which she is
to touch;
(b) that she has the proper complement of officers and seamen;
(c) that the master holds:
(i) a certificate of survey and certificate A; or
(ii) a passenger ship safety certificate accompanied by an exemption certificate, a special
trade passenger ships safety certificate and a special trade passenger ship space certificate;
(d) that she has on board such number of medical officers licensed in the prescribed manner
and such number of attendants, if any, as may be prescribed;
(e) that food, fuel and pure water over and above what is necessary for the crew, and the
other things (if any) prescribed for special trade passenger ships or pilgrim ships, have been
placed on board.
(f) in the case of a special trade passenger ship, if the ship is to make a voyage in a season of
foul weather specified as such, and to carry upper-deck passengers, that she is furnished
with substantial bulwarks and a double awning or with other sufficient protection against the
weather;
(g) in the case of a special trade passenger ship, the number of cabin and special trade
passengers embarked at the port of embarkation;
Q.5(a) Describe the salient features of Lloyd‟s standard Form of Salvage Agreement
2000.
(b)List out the Minimum requirements for seafarers to work on board ships as per
MLC 2006.
Answer
(a)
The new Lloyd‟s standard form of salvage agreement, LOF 2000, was published on 1
September 2000. The form appears in a new format that is both clear and concise. It is on a
single sheet with a new box layout format on the front and standard conditions A-L printed
on the remainder of the front cover and on the reverse. Incorporated in the contract are the
Lloyd‟s Standard Salvage and Arbitration Clauses and the Lloyd‟s Procedural Rules. Apart
from changes to the format of the form a number of substantive changes have been made, the
most significant of which are:
Rights of termination
Clause G provides that both ship-owners and salvers have the right to terminate the contract
where there is no longer any reasonable prospect of a useful result leading to a salvage
reward. The previous LOF form only gave this right to the ship-owners.
Provision of technical information

Clause F includes a new provision designed to assist salvers when dealing with complex
cargoes such as chemicals. The clause provides that the salvers shall be entitled to all such
information as they may reasonably require provided that such information is relevant to the
Page 6
performance of the salvage services and is capable of being provided without undue difficulty
or delay.
The SCOPIC Clause

The International Group of P&I Clubs and the International Salvage Union recommend their
members to incorporate the SCOPIC clause in any salvage contract entered into. The aim was
to agree a simplified framework for special compensation where the salvers would otherwise
not be entitled to an award under the basic “no cure no pay” provision.
Currency
LOF 2000 provides that unless the parties agree otherwise the currency of any arbitral award
and security shall be United States dollars.
Interest
Lloyd‟s Standard Salvage and Arbitration Clauses provide that in ordinary circumstances the
salvers‟ interest entitlement shall be limited to simple interest. However, the arbitrator may
make an award of compound interest if the salvers have been deprived of their salvage
remuneration or special compensation for an excessive period as a result of owners‟
misconduct or in other exceptional circumstances.
(b)
 No seafarer under the age of 18 years shall work at night, except when the seafarer is
engaged in a training programme established by the ship-owner and approved by the
Administration; or when the Administration has determined that the work performed
due to its specific nature or under a recognized training programme is not detrimental
to their health and well-being.
 Night is defined as a period starting no later than 2100 hours and ending no earlier
than 5 a.m. Where seafarers under the age of 18 years are engaged at night, the
beginning and end of this period shall be determined by the ship-owner.
 No seafarer under the age of 18 years shall be engaged or employed in any hazardous
work, which is likely to jeopardize their health and safety.
 Every seafarer shall, prior to beginning work on a ship, hold a valid medical
certificate issued by a duly qualified medical practitioner licensed at the place of
examination and/or recognized by the competent authority at the place of
examination, attesting that the seafarer is medically fit to perform the duties that they
are to carry out at sea.
 A medical certificate solely concerning eyesight shall be issued by a person
recognized by the competent authority at the place of examination, as qualified to
issue such a certificate.
 Medical certificates shall state in particular that the seafarer concerned: a) has
satisfactory hearing and sight, as well as colour vision where the nature of the work
to be performed requires it;
 Is medically fit to perform the duties they are to carry out; and
 Is not suffering from any medical condition that is likely to be aggravated by service
at sea or to render the seafarer unfit for such service or to endanger the health of
other persons on board.
Page 7
Q.6(a)What is note of protest? How it is lodged and extended?

(b)In case of suspected cargo damage during the voyage what documents are to be
submitted while noting protest?
Answer
(a)
In any of the circumstances enumerated below it is advisable for the master to note a protest:
 Whenever during the voyage the ship has encountered conditions of wind and sea
which may result in damage to cargo.
 When from any cause the ship is damaged, or there is reason to fear that damage may
be sustained.
 When through stress of weather it has not been practicable to adopt normal
precautions in the matter of ventilation of perishable cargo.
 When cargo is shipped in such condition that it is likely to suffer deterioration during
the voyage. In this case, however, the protest will not be effective unless the bills of
lading were endorsed to show the condition of the cargo at the time of shipment.
 When any serious breach of C/P terms is committed by the charterer or his agent,
such as refusal to load, unduly delaying loading, loading improper cargo, refusal to
pay demurrage, refusal to accept B's/L in the form signed by the master, etc.
 When consignees fail to discharge cargo or take delivery thereof, and pay freight in
accordance with C/P or B/L terms.
 In all cases of general average.
 Protest should be noted as soon as possible, certainly within 24 hours of arrival in
port, and in the case of cargo protests before starting cargo operation. A declaration
by the master of circumstances beyond his control which may give, or may have
given, rise to loss or damage. Such declaration must be made before a notary public,
magistrate, a consular officer, or other authority. Usually, statements under oath will
be taken from the master and other members of the crew and these statements will
have to be supported by appropriate log book entries. At the time of noting protest
the master should reserve the right to extend it.
(b)
The important issue, whether you are acting for the claimant or the owner, is to preserve
evidence following damage to the cargo. Insofar as heavy weather is concerned, this means
preserving at the very least the following:
1. Contemporaneous records of the weather actually encountered;

2. Copies of the weather forecasts relied on by the ship;
3. Details of the stowage and lashing of the cargo;
4. Details of the damage to the cargo and to the ship;
5. All the navigational records such as charts, GPS logs, course recorder, AIS download
and ECDIS download, which reflects the course and speed of the vessel and the
master‟s response to the bad weather;
6. The stability data and, in particular, the vessel‟s GM at the time of the damage. A
high GM means that the ship will revert to the upright position quickly if pushed over
Page 8
by a wave. An excessive GM causes massive acceleration on the ship and cargo and
can lead to damage in itself; and
7. The VDR data.
As in any recovery action it is the party with the best evidence that tends to succeed and if the
evidence is not timely gathered it is often lost which creates a problem for both claimant and
owner.
Q.7(a)Explain the reasons for a ship to be classed with a classification society.

(b)Describe the role of “Recognised Organization” in survey and certification of
ships under the authority of Flag state.
Answer
(a)
In the second half of the 18th century, London merchants, ship-owners, and captains often
gathered at Edward Lloyds‟ coffee house to gossip and make deals including sharing the risks
and rewards of individual voyages. This became known as underwriting after the practice of
signing one's name to the bottom of a document pledging to make good a portion of the
losses if the ship didn‟t make it in return for a portion of the profits. It did not take long to
realize that the underwriters needed a way of assessing the quality of the ships that they were
being asked to insure. This attempted to classify the condition of the ship‟s hull and
equipment. At that time, an attempt was made to classify the condition of each ship on an
annual basis. The condition of the hull was classified A, E, I, O or U, according to the state of
its construction and its adjudged continuing soundness (or lack thereof). Equipment was G,
M, or B: simply, good, middling or bad. In time, G, M and B were replaced by 1, 2 and 3,
which is the origin of the well-known expression 'A1', meaning 'first or highest class'. The
purpose of this system was not to assess safety, fitness for purpose or seaworthiness of the
ship. It was to evaluate risk.
In order to be registered, an ocean-going ship must be certified to be of a particular type and

size and be maintained to certain minimum standards. While most states (national
governments) do not insist that ships be "classed," without a "class" category there would be
considerable difficulties in operating a ship, as "class" is a requirement of insurance
companies and shippers using the vessel.
(b)
Recognised Organizations
SOLAS and the other International Conventions permit the flag Administration to delegate
the inspection and survey of ships to a Recognised Organization (RO). This is in recognition
of the fact that many flag Administrations do not have adequate technical experience,
manpower or global coverage to undertake all the necessary statutory inspections and surveys
using its own staff.
The RO is responsible and accountable to the flag Administration for the work that it carries
out on its behalf. The principles of the inspection and survey work are to a very large extent
the same as in respect of classification surveys, that is, the verification by the RO that a ship
Page 9
is in compliance with applicable requirements at the time of the survey or inspection. The
scopes of these inspections and surveys are laid down by the relevant national laws based on
International Conventions to which the Government is a signatory, together with additional
instructions that may be issued by the flag Administration.
Q.8(a) Explain the obligations of the carrier in respect of dangerous cargo as per
Hague rules.
(b)Explain the immunities granted to the carrier in respect of dangerous cargo as
per Hague rules.
Answer
(a)
The obligations are generally referred to in Art. II of Hague Rules and Hague-Visby Rules.
Article II states:
The "carriage of goods" relates to “...the period from the time when the goads are loaded on
to the time they are discharged from the ship" (Art.I). Therefore, the responsibilities
commence when the goods are loaded and end when they are discharged, i.e., this probably
includes the actual loading and discharging operation.
It also allows a carrier to agree to responsibility and liability related to the goods before
loading on and after discharging from the vessel. The carrier shall be bound before and at the
beginning of the voyage to exercise due diligence to: (a) Make the ship seaworthy; (b)
Properly man, equip and supply the ship; (c) Make the holds, refrigerating and cool
chambers, and all other parts of the ship in which goods are carried, fit and safe for their
reception, carriage and preservation. Subject to the provisions of Article IV, the carrier shall
properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods
carried.
(b)
As regards to immunities, it is applicable for dangerous cargo and, it reinforces the implied
term at common law that the shipper will not ship dangerous goods without the consent of the
carrier. The Rule provides that when such goods are shipped without the knowledge or
consent of the carrier, not only is the carrier entitled to neutralize them at the expense of the
shipper, and without any obligation to compensate the cargo-owner, but the shipper is also
liable for any loss or damage resulting from their shipment.
Page 10
Q.9(a) Define a Port of refuge. List out the various circumstances under whichMaster
may call port of refuge.
(b)Describe the procedures to be followed upon deviating to port of refuge and
action to be taken if general has arisen.
Answer
(a)
A port of refuge is a port or place that a vessel diverts to when her master considers it unsafe
to continue the voyage due to a peril that threatens the common safety. In November 2003 the
IMO assembly adopted two resolutions addressing the issue of port of refuge for ship in
distress.
Resolution A949(23):- The guidelines recognize that when a ship has suffered an incident,
the best way of preventing damage or pollution from its progressive deterioration is to
transfer its cargo and bunkers, and to repair the casualty. Such operation is best carried out at
place of refuge. However to bring such ship at place of refuge may endanger the coastal state
economically as well as environmentally. Therefore granting access to port of refuge could
involve a political decision which can only be taken on case by case basis.
Resolution A950 (23):- MARITIME ASSISTANCE SERVICES (MAS) - recommends that

all coastal states should establish MAS. The principal purpose would be to receive the
various reports, consultations and notification required in a number of IMO instrument,
monitoring a ship‟s situation. If such a report indicates that a ship may be in need of
assistance, the MAS serves as a point of contact and centre for exchange of information
between the ship and coastal state.
(b)
Below is the general procedure every ship would go through after giving a Port of Refuge
call:
 After giving port of refuge signal, the master would inform the owners and charters
about the condition of the ship.
 Ship‟s exact position would be noted
 After giving out the call for port of refuge, a separate record is maintained for all
the additional expenditure that would be involved in the process
 The ship would seek for health clearance.
 An agent would be appointed who would inform the port authority, pilot, local P&I
surveyors, port health department, immigrations, customs and other necessary
services required.
 The vessel would then enter as “under average”.
 Once the ship arrives at the port safely, the owners and charters would declare it
“general average”.
 A note of protest is issued, if required.
 The classification society is informed.
 In case there is any damage to the ship‟s structure, the insurance agent is informed.
 In case there is damage to the ship‟s cargo, P&I club is informed.
Page 11
 If required, arrangement of cargo discharge, trans-shipment or warehousing of

cargo is made.
 GA bond (general average bond) and GA (general average) guarantee are provided
in case the voyage is terminated.
 Once the surveyors are finished with their reports, tenders are called for repairs in
association with Salvage Association Surveyor and Insurance agent.
 Completion of repairs is followed by another inspection by the class.
 If the ship is found sea worthy an interim certificate is issued for the final
certificate.
 Once the ship is allowed to continue for voyage, reloading of cargo is carried out.
 The note of protest would be extended with the details of damage and repairs.
 All bills are then paid by the port agent.
 Relevant documents are sent to the owners for onward transmission to average
adjuster.
 The ship enters vessel outwards on receiving custom outward clearance.
 The voyage can then be safely continued.
Page 12
May 2012
Page 13
Q.1(a)Differentiate between “Passage”, and “Innocent Passage” as stipulated under

Article 18 and 19 of UNCLOS 1982 to which India is party.
(b)State the duties and rights of protection of the Coastal State as prescribed in
Article 24 and 25 of the UNCLOS 1982.
Answer
(a)
Passage means navigation through the territorial sea for the purpose of traversing that sea
without entering internal waters or calling at a roadstead or port facility outside internal
waters; or proceeding to or from internal waters or a call at such roadstead or port
facility.Passage shall be continuous and expeditious. However, passage includes stopping and
anchoring, but only in so far as the same are incidental to ordinary navigation or are rendered
necessary by force majeure or distress or for the purpose of rendering assistance to persons,
ships or aircraft in danger or distress.
Meaning of innocent passage
Passage is innocent so long as it is not prejudicial to the peace, good order or security of the
coastal State. Such passage shall take place in conformity with this Convention and with
other rules of international law. Passage of a foreign ship shall be considered to be prejudicial
to the peace, good order or security of the coastal State if in the territorial sea it engages in
any of the following activities:
 any threat or use of force against the sovereignty, territorial integrity or political
independence of the coastal State, or in any other manner in violation of the principles
of international law embodied in the Charter of the United Nations;
 any exercise or practice with weapons of any kind;
 any act aimed at collecting information to the prejudice of the defence or security of
the coastal State;
 any act of propaganda aimed at affecting the defence or security of the coastal State;
 the launching, landing or taking on board of any aircraft;
 the launching, landing or taking on board of any military device;
 the loading or unloading of any commodity, currency or person contrary to the
customs, fiscal, immigration or sanitary laws and regulations of the coastal State;
 any act of wilful and serious pollution contrary to this Convention;
(b)
Duties of the coastal State
The coastal State shall not hamper the innocent passage of foreign ships through the
territorial sea except in accordance with this Convention. In particular, in the application of
this Convention or of any laws or regulations adopted in conformity with this Convention, the
coastal State shall not:
 impose requirements on foreign ships which have the practical effect of denying or
impairing the right of innocent passage; or
Page 14
 discriminate in form or in fact against the ships of any State or against ships carrying
cargoes to, from or on behalf of any State.
 The coastal State shall give appropriate publicity to any danger to navigation, of
which it has knowledge, within its territorial sea.
Rights of protection of the coastal State
 The coastal State may take the necessary steps in its territorial sea to prevent passage
which is not innocent.
 In the case of ships proceeding to internal waters or a call at a port facility outside
internal waters, the coastal State also has the right to take the necessary steps to
prevent any breach of the conditions to which admission of those ships to internal
waters or such a call is subject.
 The coastal State may, without discrimination in form or in fact among foreign ships,
suspend temporarily in specified areas of its territorial sea, the innocent passage of
foreign ships if such suspension is essential for the protection of its security, including
weapons exercises. Such suspension shall take effect only after having been duly
published.
Q.2(a)State the salient features of Construction – Structure, Stability and installation

with respect of Chapter II -1 of SOLAS 1974 as amended.
(b)Enumerate the key elements of SOLAS Chapter V – Safety of Navigation which
assists in enhancing maritime safety.
Answer
(a)
Chapter II-1 - Construction - Subdivision and stability, machinery and electrical installations
 The subdivision of passenger ships into watertight compartments must be such that
after assumed damage to the ship's hull the vessel will remain afloat and stable.
Requirements for watertight integrity and bilge pumping arrangements for passenger
ships are also laid down as well as stability requirements for both passenger and
cargo ships.
 The degree of subdivision - measured by the maximum permissible distance between
two adjacent bulkheads - varies with ship's length and the service in which it is
engaged. The highest degree of subdivision applies to passenger ships.
 Requirements covering machinery and electrical installations are designed to ensure
that services which are essential for the safety of the ship, passengers and crew are
maintained under various emergency conditions.
(b)
 Chapter V identifies certain navigation safety services which should be provided by
Contracting Governments and sets forth provisions of an operational nature
applicable in general to all ships on all voyages. This is in contrast to the Convention
as a whole, which only applies to certain classes of ship engaged on international
voyages.
Page 15
 The subjects covered include the maintenance of meteorological services for ships;
the ice patrol service; routeing of ships; and the maintenance of search and rescue
services.
 This Chapter also includes a general obligation for masters to proceed to the
assistance of those in distress and for Contracting Governments to ensure that all
ships shall be sufficiently and efficiently manned from a safety point of view.
 The chapter makes mandatory the carriage of voyage data recorders (VDRs) and
automatic ship identification systems (AIS).
Q.3 (a)State the key regulations of MARPOL 73/78 Annex I relating to prevention of
pollution by oil if complied with by cargo ships including tankers would lead to
the issuance of IOPP Certificate.
(b)Briefly explain the Tier regime of compensation under the CLC 1992/Fund
1992 and HNS 2010 protocol.
Answer
(a)
The continuous strive of prevention and reduction of the ship-generated pollution of the seas
by oil is the core objective setting of Annex I of MARPOL 73/78. Annex I applies to all oil
tankers of 150 GT and above, and every other ship of 400 GT and above.
Annex I gives requirements for survey and issuance of International Oil Pollution Prevention
Certificates (IOPP) and regulations related to:
 Control of discharge of oil originating from machinery spaces

 Control of discharge of oil originating from cargo spaces
 Ballast tank arrangements and locations
 Double Hull requirements
 SOPEP/SMPEP
(b)
The Civil Liability Convention (CLC) IS THE first Tier of oil pollution compensation
mechanism. CLC only deals with how much will an oil tanker owner pay, if his tanker is
involved in a pollution incident. An oil pollution incident means when the oil has actually
come out into the marine environment. This means, for example, if in a collision oil has come
out only from one of the tankers, then the oil tanker owner from whose tanker the oil has
come into the marine environment, will have to pay. Also, CLC is a compensation
mechanism only and not a punishment or a fine. This means that after an oil pollution
incident, the oil tanker will only pay if there is a claim. If however, there is no claim, then the
oil tanker owner does not pay. CLC is applicable to persistent oils only [oils, which have
characteristics of persisting (floating) on the surface of water – meaning different grades of
crude oil when carried as cargo, as well as bunker pollution from oil tankers only).
CLC requires the following:
(i) Strict Liability – this means that when there is a claim, then the tanker owner has
to pay without even waiting to find out who was at fault that resulted in the
Page 16
pollution incident. The oil tanker owner can later claim from the party at fault, but
he has to pay now to settle the claims. Only in the following three cases the oil
tanker will not have to pay anything:
 Act of God.
 Act of war or sabotage.
 When the relevant Government authorities have not acted responsibly in
maintaining the navigational aids / depths of water within their area and
this leads to a pollution incident.
(ii) Compulsory Insurance Cover – the oil tanker owner is required to maintain a
compulsory insurance cover to cover his part of payment in an oil pollution
incident. He gets this insurance cover from his P & I Club (liability insurance).
After getting the required insurance cover, the oil tanker owner approaches the
Flag State, who issues the oil tanker a CLC Certificate, which is always kept on
board. The meaning of CLC Certificate on board is that the money is standing by
with the P & I Club and will be paid by them to settle all claims after any oil
pollution incident.
The maximum amount to be paid by the oil tanker owner is as follows:
Up to 5000 GT = 4.51 million SDR.

5001 GT – 140,000 = (4.51 million SDR + 631 SDR/GT) SDR.
> 140,000 GT = 89.77 million SDR.
Two years after CLC, it was realised that there needs to be more money in case the oil
pollution incident is so huge that the total claims amount to be greater than what the oil
tanker owner pays under CLC. Member countries at IMO decided to involve the oil
importers by asking them to make an annual contribution to a FUND so that additional
money is always standing by and to be given to people who make a claim after an oil
pollution incident. Therefore, the Fund Convention was created and this is known as the
SECOND Tier of the oil pollution compensation mechanism. Fund Convention requires
only the oil importers who import 150,000 MT or more of oil per annum to make an annual
contribution to a Fund known as International Oil Pollution Compensation Fund (IOPC
Fund with headquarters in London). Therefore, any person / organisation who has imported
150,000 MT of oil in the previous year is called a „contributor‟ and therefore the ENTIRE
amount of oil imported by him is used to calculate his contribution and this is known as the
contributing oil (for example, if a person has imported 175,000 MT of oil in the previous
year then he qualifies as a contributor and the entire amount of 175,000 MT will be used to
calculate his contribution to the IOPC Fund. His „contributing oil‟ will be 175,000 MT.
Please do not make the mistake by thinking that only 25000 MT will be used for
calculation. 150,000 MT figure is used only to decide whether a person is a contributor or
not). Also, the maximum amount available for EVERY INCIDENT PER YEAR is 203
million SDR and this includes the payment by the oil tanker owner under the CLC (CLC +
FUND = 203 million SDR).
In 2000, the Fund Convention was amended to include a Supplementary Fund but it was
kept OPTIONAL for countries to follow it and this forms the THIRD Tier of the oil
pollution compensation mechanism [for example, INDIA is party to CLC and Fund (first
and second tier) but NOT a part to the Supplementary Fund (the third tier)]. Therefore, if we
Page 17
include the Supplementary Fund also, the TOTAL amount available for EVERY
INCIDENT PER YEAR IS 750 million SDR [CLC + FUND + Supplementary Fund = 750
million SDR (one would appreciate that this will ONLY be applicable in the few countries
who are party to the Supplementary Fund also)].
Reference regarding the HNS Protocol is WRONG here because HNS Protocol exists
ONLY with the OPRC. Ideally, the correct mention should have been HNS
Convention. But, we‟ll answer as asked.
OPRC - HNS1 PROTOCOL
The Protocol on Preparedness, Response and Co-operation to pollution Incidents by

Hazardous and Noxious Substances, 2000 (OPRC-HNS Protocol) follows the principles of
the International Convention on Oil Pollution Preparedness, Response and Co-operation,
1990 (OPRC) and was formally adopted by States already Party to the OPRC Convention at
a Diplomatic Conference held at IMO headquarters in London in March 2000. The
Protocol entered into force on 14 June 2007.
Q.4 Write short notes on the following:-

(a) Suppression of Unlawful acts against safety of maritime navigation
convention 1988 and 2005 protocol.
(b) Intervention on the High Seas Convention 1969.
(c) Maritime Labour Convention 2006.
Answer
(a)
PLEASE REFER TO THE NOTES AND DISCUSSION IN THE CLASS.
(b)
PLEASE REFER TO PREVIOUS ANSWER – Q. 3 (b) of January 2012.
(c)
The Maritime Labour Convention (MLC) came into force on 20th August 2014. MLC has
given a very broad definition of the term “seafarer” – it basically says that any person who is
on a gainful employment on a ship (gainful employment – you work and in return you are
paid wages) is a seafarer. It therefore applies to everyone from the Master to the hotel staff on
cruise ships. Also, for the purpose of MLC, New Ship means any ship whose keel is laid after
the entry into force of the convention (i. e. after 20th August 2013).
Layout of MLC
The MLC is divided into FOR layers as follows:
1. Articles.
1
HNS – Hazardous and Noxious Substances
Page 18
2. Regulations.
3. Code A (Mandatory).
4. Code B (non-mandatory – it acts as a guideline to follow the mandatory Code A).
The Codes are divided into FIVE chapters known as Titles as follows:
TITLE 1 – Minimum Requirements to Work on Ships

This deals with the minimum age requirements, such as – (a) no person (including the cadets)
below the age of 16 years is allowed to work on ships (b) no person below the age of 18 years
is allowed to work at night where the night period is defined as 2100 hrs to 0500 hrs.
TITLE 2 – Conditions of Employment

This deals with contractual conditions, hours of work and rest, leave, repatriation and a
written undertaking by the owner that he is responsible to medical and compensation in case
of injury and death. Hours of work are – maximum 14 hrs in 24 hour period and 72 hours in 7
day period; hours of rest – minimum 10 hours in 24 hours period and 77 hours in 7 day
period.
TITLE 3 – Accommodation, Recreation, Food and Catering

Accommodation – On new ships – (a) no more twin-sharing cabins (including for cadets) (c)
advised to provide attached toilets, but if common toilets provided then very strict
specifications to be adhered to (c) minimum height of deck-head in accommodation
increased; for existing ships – acoustic and vibration levels to be monitored regularly.
Recreation – for the first time the owner has a legal responsibility to provide recreation
onboard, access to internet and e-mail and organise conveyance in ports from time to time.
Food and Catering – the cook must be trained and certified by the Flag State.
TITLE 4 – Medical and Social Protection

The existing medical facilities have been enhanced to include dental and eye treatments.
TITLE 5 – Compliance and Enforcement

Compliance is the responsibility of the Flag State. They will conduct labour survey on 14
parameters based on Title 1 to Title 4 and issue to the ship “Declaration of Maritime Labour
Compliance (DMLC)” along with a Maritime Labour Certificate (ML Certificate), which will
be statutory certificate and valid for 5 years with annual, intermediate and renewal labour
surveys. It is important to note that the ML Certificate is invalid in the absence of DMLC.
Enforcement is the responsibility of PSC. They have volunteered to enforce it for the benefit
of the world seafarers and have thus given the powers to detain a ship if the MLC
requirements are not found to be met.
Also, every seafarer has the right to complain to Flag State or PSC, but first has the
obligation to follow the “Complaints Procedure” of the Company, which will be part of the
Labour Manual onboard.
Page 19
Q.5 Stipulate any three of the provisions under Merchant Shipping Act, 1958 with
respect to the following:
(a) Form and contents of agreement under Section 101.

(b) Engagement between seamen and masters of ship other than Indian ship
section 114.
(c) Master to take charge of effects of deceased seamen – Section 152.
(d) Entries which are required to be made in official log books – Sec 214.
Answer
(a)
Form and contents of the agreement
An agreement with the crew shall be in the prescribed form, and shall be dated at the time of
the first signature thereof, and shall be signed by the owner or agent and the master] before
any seaman signs the same. The agreement with the crew shall contain as terms thereof the
following particulars, namely:
 the name of the ship or ships on board which the seaman undertakes to serve;
 either the nature and, as far as practicable, the duration of the intended voyage or
engagement or the maximum period of the voyage or engagement, and the places or
parts of the world, if any, to which the voyage or engagement is not to extend;
 the number and description of the crew of different categories in each department;
 the time at which each seaman is to be on board or to begin work;
 the capacity in which each seaman is to serve;
 the amount of wages which each seaman is to receive;
 a scale of the provisions which are to be furnished to each seaman, such scale being
not less than the scale fixed by the Central Government and published in the Official
Gazette;
 a scale of warm clothing and a scale of additional provisions to be issued to each
seaman during periods of employment in specified cold regions;
 any regulations as to conduct on board and as to fines or other lawful punishments for
misconduct, which have been sanctioned by the Central Government as regulations
proper to be adopted, and which the parties agree to adopt;
 payment of compensation for personal injury or death caused by accident arising out
of and in the course of employment;
 where it is agreed that the services of any seaman shall end at any port not in India, a
stipulation to provide him either fit employment on board some other ship bound to
the port at which he was shipped or to such other port in India as may be agreed upon,
or a passage to some port in India free of charge or on such other terms as may be
agreed upon;
 stipulations relating to such other matters as may be prescribed.
(b)
 When the master of a ship other than an Indian ship engages a seaman at any port in
India to proceed to any port outside India, he shall enter into an agreement with such
seaman, and the agreement shall be made before a shipping master in the manner
Page 20
provided by MSA for the making of agreements in the case of foreign going Indian
ships.
 The master of a ship other than an Indian ship shall give to the shipping master a bond
with the security of some approved person resident in India for such amount as may
be fixed by the Central Government in respect of each seaman engaged by him at any
port in India and conditioned for the due performance of such agreement and
stipulations, and for the repayment to the Central Government of all expenses which
may be incurred by it in respect of any such seaman who is discharged or left behind
at any port out of India and becomes distressed and is relieved under the provisions of
this Act: Provided that the shipping master may waive the execution of a bond under
this section where the owner of the ship has an agent at any port in India and such
agent accepts liability in respect of all matters for which the master of the ship would
be liable if he were to execute a bond under this section or may accept from the agent
such security as may be approved by the Central Government.
 The fees fixed under section 90 shall be payable in respect of every such engagement,
and deductions from the wages of seamen so engaged may be made to the extent and
in the manner allowed under the said section 90.
(c)
If any seaman or apprentice engaged on any ship, the voyage of which is to terminate in
India, dies during that voyage, the master of the ship shall report the death to the next-of-kin
of the seaman or apprentice and to the shipping master at his port of engagement and shall
take charge of any money or effects belonging to the seaman or apprentice which are on
board the ship.
The master shall thereupon enter in the official log book the following particulars, namely:
 a statement of the amount of money and a detailed description of the other effects;
 a statement of the sum due to the deceased for wages and of the amount of deduction,
if any, to be made from the wages.
 The said money, balance of wages and other effects are in this Act referred to as the
property of the seaman or apprentice.
(d)
The master of a ship for which an official log is required shall enter or cause to be entered in
the official log book the following matters, namely:
 every conviction by a legal tribunal of a member of his crew and the punishment
inflicted;
 every offence committed by a member of his crew for which it is intended to
prosecute or to enforce a forfeiture or exact a fine, together with such statement
concerning the reading over of that entry and concerning the reply (if any) made to
the charge as is by this Act required;
 every offence for which punishment is inflicted on board and the punishment
inflicted;
 a report on the quality of work of each member of his crew, or a statement that the
master declines to give an opinion thereon with statement of his reasons for so
declining;
Page 21
 every case of illness, hurt or injury happening to a member of the crew with the nature
thereof and the medical treatment adopted (if any);
 every case of death happening on board and the cause thereof, together with such
particulars as may be prescribed;
 every birth happening on board, with the sex of the infant, the names of the parents
and such other particulars as may be prescribed;
 every marriage taking place on board with the names and ages of the parties;
 the name of every seaman or apprentice who ceases to be a member of the crew
otherwise than by death, with the place, time, manner and cause thereof;
 the wages due to any seaman or apprentice who dies during the voyage and the gross
amount of all deductions to be made;
 the money or other property taken over of any seaman or apprentice who dies during
the voyage;
 any other matter which is to be or may be prescribed for entry in the official log.
Q.6 Differentiate between Standards and the recommended practices under FAL
Convention, 1965 with respect to the following –
(a) Arrival, stay and Departure of ship
(b) Arrival, stay and Departure of cargo
Answer
(a)
Arrival, stay and departure of the ship
It contains the provisions concerning the formalities required of ship-owners by the public
authorities on the arrival, stay and departure of the ship and shall not be read so as to preclude
a requirement for the presentation for inspection by the appropriate authorities of certificates
and other papers carried documents made available by the ship pertaining to its registry,
Standard
Public authorities shall not require for their retention, on arrival or departure of ships to
which the Convention applies, any documents other than those covered by the present
section. The documents in question are:
- General Declaration - Cargo Declaration - Ship's Stores Declaration - Crew's Effects

Declaration - Crew List - Passenger List - Dangerous Goods Manifest - The document
required under the Universal Postal Convention for mail - Maritime Declaration of Health -
Security-related information as required under SOLAS regulation XI-2/9.2.2 - Advance
Electronic Cargo Information for customs risk assessment purposes - Advanced Notification
Form For Waste Delivery to Port Reception Facilities, when communicated to the
Organization.
Recommended practice
 Public authorities should shall develop procedures for the lodgement of to use pre-
arrival and pre-departure information in order to facilitate the processing of such
information required by public authorities for the expedited subsequent
Page 22
release/clearance or cargo and persons release/clearance of cargo and clearance of

persons.
 National legislation should specify the conditions for the lodgement of pre-arrival and
pre-departure information. With regard to the point in time of transmission of the pre-
arrival information, it should not normally be set substantially before the moment the
ship has left the country of departure.
 Public authorities should, for the submission of Advance Electronic Cargo
information for customs risk assessment purposes, take into account the time limits
specified.
 Public authorities should not require the lodgement of a separate General Declaration,
Cargo Declaration, Crew List and Passenger List and Dangerous Goods Manifest if
the data elements contained in these documents are included in the pre-arrival or pre-
departure information or in the ship's manifest.
Standard
Public authorities shall develop systems for the electronic transmission of data for the
lodgement of pre-arrival and pre-departure information. The General Declaration shall be the
basic document on arrival and departure providing data required by public authorities relating
to the ship.
Recommended Practice
 The same form of General Declaration should be accepted for both the arrival and the
departure of the ship. In the General Declaration, public authorities should not
require more than the following data:
 name, type and IMO number of ship; call sign; flag State of ship; voyage
number; particulars regarding registry; particulars regarding tonnage; name of
master; name and contact details of ship's agent; brief description of the cargo;
number of crew; number of passengers; brief particulars of voyage; date and
time of arrival, or date of departure; port of arrival or departure; estimated
draught on arrival and departure; position of the ship in the port; the ship's
requirements in terms of waste and residue reception facilities; last port of
call/next port of call.
Arrival, stay and departure of the cargo
Standard
The Cargo Declaration shall be the basic document on arrival and departure providing data
required by public authorities relating to the cargo. However, particulars of any dangerous
cargo may also be required to be furnished separately.
In the Cargo Declaration, public authorities should not require more than the following data:
(a) on arrival
• name and IMO number of ship • flag State of ship • name of master • call sign • voyage
number • port of loading • port where report is made • freight34 container identification,
Page 23
where appropriate; marks and numbers; number and kind of packages; quantity and
description of the goods or, if available, the HS Code* • transport document numbers for
cargo to be discharged at the port in question • ports at which cargo remaining on board will
be discharged • original ports of shipment in respect of goods shipped under multimodal
transport documents or through bills of lading.
(b) on departure
• name and IMO number of ship • flag State of ship • name of master • call sign35 • voyage
number • port of discharge
Standard
In respect of cargo remaining on board, public authorities shall require only brief details of
the minimum essential items of information to be furnished. Public authorities shall accept
that the Cargo Declaration is either dated or signed by the master, the ship-owner issuing the
transport document, the ship's agent or some other person duly authorized by the master.
Public authorities shall accept in place of the Cargo Declaration a copy of the ship's manifest
provided it contains at least the information required.
As an alternative public authorities may accept a copy of the transport document signed or
authenticated accordingly, or certified as a true copy, if the nature and quantity of cargo make
this practicable.
Q.7 (a) State the criteria for reward of Salvage services as specified in Article 13
of the Salvage convention 1989.
(b) Explain Special Compensation P&I Club‟s (SCOPIC) clause.
Answer
(a) and (b)
FOR THE PURPOSE OF EXPLANATION ON OWN WORDS, THE PARTS HAVE

BEEN ANSWERED TOGETHER. ON UNDERSTANDING THE WHOLE
CONCEPT, YOU‟LL BE ABLE TO FORMULATE THE ANSWER FOR THIS
QUESTION SEPARATELY AS REQUIRED.
The law of salvage is a concept in maritime law which states that a person who recovers
another person's ship or cargo after peril or loss at sea is entitled to a reward in proportion
with the value of the property so saved. The concept has its origins in maritime history, with
the basis that a person would be putting himself and his own vessel at risk to recover another
and thus should be appropriately rewarded. A related consideration was widespread piracy; a
vessel in peril could very well be left for pirates if the owner did not generously reward a
potential and an honest salver.
So, the first incentive is mentioned in Article 13 of the Salvage Convention, which lists the
criteria to be weighed in the balance in assessing a salvage award. It provides:
The reward shall be fixed with a view to encouraging salvage operations, taking into account
the following criteria without regard to the order in which they are presented below:
Page 24
 the salved value of the vessel and other property;

 he skill and efforts of the salvers in preventing or minimizing damage to the
environment;
 the measure of success obtained by the salver;
 the nature and degree of the danger;
 the skill and efforts of the salvers in salving the vessel, other property and life;
 the time used and expenses and losses incurred by the salvers;
 the risk of liability and other risks run by the salvers or their equipment;
 the promptness of the services rendered;
 the availability and use of vessels or other equipment intended for salvage operations;
 the state of readiness and efficiency of the salver's equipment and the value thereof.
Secondly, the payment of a reward fixed according to paragraph 1 shall be made by all of the
vessel and other property interests in proportion to their respective salved values and, the
rewards, exclusive of any interest and recoverable legal costs that may be payable thereon,
shall not exceed the salved value of the vessel and other property.
There are three points to particularly note from Article 13. The second criteria, “the skill and
effort of the salvers in preventing or minimising damage to the environment” was specifically
introduced by the 1989 Convention to encourage salvers to go to the assistance of ships
which threatened damage to the environment. However it should be noted the salver has to
prove that he actually prevented damage to the environment. A 'threat' without proof, but for
the services, that damage to the environment would have occurred, is insufficient. Proof of
damage to the environment is not easy because any reward received is restricted by the value
of the property salved. In cases where there is a threat of damage to the environment values
are often low and the expense of salvage high. In most of the cases, salvers only received the
bare minimum. Any award under Article 13 is paid by ship and cargo pro rata to value so
they bear any award enhanced by reason of the second criteria – the skill and effort of the
salver in preventing damage to the environment. The insurers of ship and cargo customarily
pay such awards notwithstanding they do not insure an owner‟s liability for damage to the
environment.
The Second incentive – Special Compensation introduced in Article 14 to the Salvage

Convention. It provides as follows:
“If the salver has carried out salvage operations in respect of a vessel which by itself or its
cargo threatened damage to the environment and has failed to earn a reward under Article
13 at least equivalent to the special compensation assessable in accordance with this article,
he shall be entitled to special compensation from the owner of that vessel equivalent to his
expenses as herein defined.”
There were a number of issues in giving the special compensation, as per Article 14, for
saving the environment. To name a few issues:
 Firstly, it will be noted that for this paragraph the salver does not have to succeed in
protecting the environment, he simply has to be involved in a salvage operation in
which the casualty threatens damage to the environment.
Page 25
 Secondly, it will be seen that the salver has to carry out “salvage operations in respect
of a vessel which by itself or its cargo threatened damage to the environment”. What
do we mean by “threatened”?
 Thirdly, unlike Article 13 salvage award (which is paid by the ship and cargo and
their property insurers), special compensation (as per Article 14) is payable by the
ship-owner alone who is insured for this risk and indemnified by his P&I insurer.
So, the solution was reached by introducing SCOPIC (Special Compensation P&I Club)
Clause.
SCOPIC sets out the contractual position between the salvers and the ship-owner, but do not
set out the position of the P&I clubs and the ship‟s underwriters (the Hull and Machinery
insurers) who, while insurers of the ship-owners, are not parties, and therefore not bound, to
the contract. The SCOPIC clause is a voluntary addition to the LOF contract which can be
used by agreement between the parties at the time they contract. In practice, it is nearly
always used by professional salvers particularly when there is a threat of danger to the
environment and low values. It has effectively replaced Article 14 in all LOF cases.
In considering the clause, it is important to remember that it was designed to have the same
intent as Article 14 – to encourage salvers to go to the assistance of ships that threaten
damage to the environment – and to follow it as closely as possible but remove the problems
that were giving rise to so much difficulty. In describing SCOPIC it is therefore useful as we
go along, to look at the problems that arose from Article 14 and see how the SCOPIC Clause
set out to resolve them.
The SCOPIC Clause is lengthy and complex and not easy to digest. One of the best ways to
understand it is to look at its “Basic Elements” (below):
1. SCOPIC is designed to be an add on to LOF and will only be included as part of that
contract if specifically agreed in writing between the salver and ship owner (Master). If
SCOPIC is not incorporated into the contract then Article 14 (if relevant) will apply.
2. When incorporated into the contract, SCOPIC replaces Article 14 of the Salvage
Convention which thereafter will no longer be applicable. However, SCOPIC is incorporated
into the contract but not specifically invoked (used or brought into play) or is later
terminated, the salver will have neither the protection of Article 14 or of SCOPIC.
3. Even when SCOPIC is incorporated into the contract, its remuneration provisions will not
begin to bite until the Clause is specifically invoked (used) in writing by the salver. Further,
the calculation of SCOPIC remuneration will not begin until that point.
One of the main problems with Article 14 was its trigger mechanism, “a threat of damage to
the environment”. What was a threat? Did it have to be an actual threat or was it sufficient
for it to be a reasonably perceived threat? What were coastal waters or waters adjacent
thereto? How serious the threat to the environment had to be? The designers of SCOPIC
wanted to avoid all these problems. So what other trigger mechanism could be used? It was
concluded that the simplest and most unchallengeable trigger mechanism was to give the
salver the sole and unfettered power, whatever the circumstances and at any time of his
choosing, to specifically invoke (bring into play) the SCOPIC clause in writing. There is no
longer any need to prove there is a threat of damage to the environment. It is important to
remember, unlike Special Compensation under Article 14 (of Salvage Convention), which
incorporates all the work of the salver from the very beginning of the case, that the
Page 26
assessment of SCOPIC remuneration does not begin until it is invoked (brought into play) in
writing. Any work done before that point is not taken into account in its assessment. Thus,
while the salver has the option to invoke (use) the clause at any time, it is in his interests to
make the decision as soon as possible (the decision whether there is a threat to the
environment in the salvage operation and to what extent his work will increase in the whole
salvage operation).
Once SCOPIC has been invoked the ship-owner must provide security in the sum of USD 3
million. This provision was made for the salvers protection and on their insistence, for
without it there is no effective means of enforcing payment. While Article 21 of the Salvage
Convention provides that security should be provided for a salver‟s claim, it is not due until
the end of the salvage operations and, in the case of security for Special Compensation or
SCOPIC remuneration, there is no maritime or statutory lien and, therefore, no way of
enforcing its provision. Further, as mentioned earlier, before the days of SCOPIC, there was
a marked reluctance to provide it. In a number of cases ship-owners, guided by their P&I
club, refused to provide security, fought a claim for Special Compensation under Article 14
of the Salvage Convention to appeal and then “negotiated” on the final appeal award (typical
smart move by ship owners to have the salvage services and reduce the reward to the
salver!!). To avoid this happening, the SCOPIC Clause specifically provides that security in
the sum of $3 million is to be provided within two days of the Clause being invoked (brought
into play). It goes on to make provision for the amount to be adjusted, up or down, at the
termination of the services, but substantial security is required “up front”. As further
protection to the salver (that if security of USD 3 million) is not provided, the salvage
contractor has the option to withdraw from SCOPIC. This would result in the reinstatement
and limited protection afforded by Article 14 which, in most cases, would not be a lot of help
to the salver (he protects the environment during the salvage operation, but does not get
rewarded completely!). However, if security is not provided then at least the salver would
know where he was and could pull out of the whole LOF contract on the grounds of the
owner‟s breach.
Once SCOPIC has been invoked, SCOPIC remuneration will be assessed in accordance with
the cost for men-hours, tugs and equipment reasonably engaged or used in the operation, plus
a bonus of 25%.
SCOPIC was intended as a security of a minimum payment, and therefore, by applying a

standard tariff rate it became fairly simple to calculate SCOPIC remuneration on a daily
basis. The assessed SCOPIC remuneration is due from the ship-owner, in so far as it exceeds
the traditional salvage award made against salved property under Article 13 of the Salvage
Convention. This is in line with Article 14 of the Salvage Convention, which provides that
Special Compensation shall only be paid to the extent that its assessment exceeds the
traditional Article 13 salvage award. The position is the same under SCOPIC. So for
example, if the traditional salvage award is say $1 million and the assessed SCOPIC
remuneration is $1.5 million, the salver will receive $1 million from the ship and cargo, pro
rata to value, and $0.5 million from the ship-owner (P & I Club) in respect of SCOPIC
remuneration. It is important to note, like Special Compensation under Article 14, that
SCOPIC remuneration is to be paid by the ship-owner, not ship and cargo pro rata to value as
is the case for the traditional Article 13 salvage award. This means different insurers are
involved. Hull and Machinery insurers for traditional Article 13 salvage awards and liability
insurers (P&I Clubs) for SCOPIC remuneration.
Page 27
Q.8 (a) Discuss responsibilities of ship and shipper under the provisions of Hague –
Visby Rules.
(b) State the various immunities enjoyed by the carrier under the provision of
Hague and Hague Visby Rules.
Answer
(a)
to the time they are discharged from the ship" (Art. I). Therefore, the responsibilities
beginning of the voyage to exercise due diligence to:
 Make the ship seaworthy;

 Properly man, equip and supply the ship;
 Make the holds, refrigerating and cool chambers, and all other parts of the ship in
which goods are carried, fit and safe for their reception, carriage and preservation.
Subject to the provisions of Article IV, the carrier shall properly and carefully load,
handle, stow, carry, keep, care for, and discharge the goods carried.
(b)
For dangerous cargo, it reinforces the implied term at common law that the shipper will not
ship dangerous goods without the consent of the carrier. The Rule provides that when such
goods are shipped without the knowledge or consent of the carrier, not only is the carrier
entitled to neutralize them at the expense of the shipper, and without any obligation to
compensate the cargo-owner, but the shipper is also liable for any loss or damage resulting
from their shipment.
Q.9 With respect to marine insurance explain the following terms –

a) Doctrine of Proximate Clause
b) Floating Policy and its benefits
c) Notice of abandonment
Answer
(a) (Firstly, the question is wrong – it is not „Clause‟ but „Doctrine of Proximate
Cause‟!)
Marine Insurance is a very important aspect of international trade, it is the practice that safe-
guards the apportionment of marine transportation risk between the parties engaged in an
international transaction that involves sea or marine voyage. Many times, it is impossible to
come to consensus on the liability or non-liability of the insurers and the assured, this is often
the case where the causation (the real cause of) of the marine peril is in issue.
Page 28
Causation is a very important part in marine insurance law. The general principle is that the
insurer will only be liable for any loss, which is proximately caused by a peril insured
against. Therefore, the Doctrine of Proximate Cause may not be a “principle” of marine
insurance but it is definitely elevated to a condition which must be fulfilled before the
underwriter becomes liable to pay a claim. A claim becomes payable only if the insured risk
was a “direct” or “dominant” or “effective” cause of the loss of the subject-matter. The cause
need not be the nearest cause in time. If the damage or loss is not “proximately caused” by a
peril insured against, i.e., if the cause of the loss or damage is “remote” from the actual risk
or “peril” insured against, the claim against the insurer will fail. The section states:
“...the insurer is liable for any loss proximately caused by peril insured against, but he is not
liable for any loss which is not proximately caused by a peril insured against”. This means
that the insurer is liable to a claimant if the claimant can prove that the loss was directly
caused by some event or situation that was insured against. It is up to the insurer, when a
claim is made, to show that the actual or direct cause of the loss was an event or circumstance
against the happening of which the assured (ship owner) was not protected by insurance.
(b)
Floating Policy
This policy describes the general terms and leaves the amount of each shipment and other
particulars to be declared later on. The declaration is made in order of dispatch of shipment.
The policy is taken for a round large sum which is specified at each declaration and is
attached to each shipment. With each declaration the amount will be reduced till it is
exhausted when the insured sum is said to be 'closed' and the policy is 'fully declared' or, 'run
off. An example of Floating Policy is 'Open Cover'. It is an agreement between the assured
and the insurer by which the assured on his part agrees to declare, and the insurer on his part
agrees to accept all the shipments falling within the scope of the 'open cover' which is merely
an original ship'. All such agreed declarations between the assured and the insurer are written
on the back of the policy. A Floating Policy is suitable for a cargo-owner who makes regular
shipments of cargoes. All his shipments are automatically covered as soon as the declarations
are made. The floating policies are mostly used in the age of huge and regular trade volumes.
(c)
Notice of Abandonment
It is a formal notice of relinquishment (giving up) or unconditional surrender of all rights to a

property, cargo, or ship by its insured owner (ship owner or cargo owner) to the insurer in the
event of a constructive total loss. By this notice the assured declares its intention to treat the
loss as actual total loss. The notice must be given with reasonable diligence otherwise (or in
the absence of a notice) the loss may be considered partial and the assured will only get a
partial insurance compensation. This notice of abandonment need not be in any
particularformbutmustbeclearandshouldindicate totheinsurer thattheassured unconditionally
abandons the subject matter of insurance to the insurer and claimsatotal loss under the
policy.The notice ofabandonmentshould b e givenwithina reasonabletimeaftertheassured
hasreceivedreliableinformation oftheloss.
Page 29
July 2012
Page 30
Q.1 a) Explain the scope and objectives of United Convention on Law of the Seas
(UNCLOS) 1982 to which, India is State Party.
b) List down the rights of coastal state in territorial waters and Exclusive
Economic Zone (EEZ).
c) Enumerate the provisions of UNCLOS, 1982 relating to exclusive
jurisdiction of the flag state under Article 94 at High Seas.
Answer
(a)
The law of the sea developed from the struggle between coastal states, who sought to expand
their control over marine areas adjacent to their coastlines. By the end of the 18th century, it
was understood that states had sovereignty over their territorial sea. The maximum breadth of
the territorial sea was generally considered to be three miles - the distance that a shore-based
cannon could reach and that a coastal state could therefore control.
The Third United Nations Conference on the Law of the Sea (UNCLOS III) – the present
one, addressed the issues bought up at the previous conferences. A major feature of the
convention included the definition of maritime zones- the territorial sea, the contiguous zone,
the exclusive economic zone, the continental shelf, the high sea, the international sea-bed
area and archipelagic waters. The convention also made provision for the passage of ships,
protection of the marine environment, freedom of scientific research, and exploitation of
resources.
(b)
PLEASE REFER TO PREVIOUS ANSWER – Q. 1 of January 2012.
(c)
Duties of the flag State
1. Every State shall effectively exercise its jurisdiction and control in administrative,
technical and social matters over ships flying its flag.
2. In particular every State shall:

(a) maintain a register of ships containing the names and particulars of ships flying its
flag, except those which are excluded from generally accepted international regulations
on account of their small size; and
(b) assume jurisdiction under its internal law over each ship flying its flag and its
master, officers and crew in respect of administrative, technical and social matters
concerning the ship.
3. Every State shall take such measures for ships flying its flag as are necessary to ensure
safety at sea with regard, inter alia, to:
(a) the construction, equipment and seaworthiness of ships;
(b) the manning of ships, labour conditions and the training of crews, taking into
account the applicable international instruments;
Page 31
(c) the use of signals, the maintenance of communications and the prevention of
collisions.
4. Such measures shall include those necessary to ensure:
(a) that each ship, before registration and thereafter at appropriate intervals, is surveyed
by a qualified surveyor of ships, and has on board such charts, nautical publications and
navigational equipment and instruments as are appropriate for the safe navigation of the
ship;
(b) that each ship is in the charge of a master and officers who possess appropriate
qualifications, in particular in seamanship, navigation, communications and marine
engineering, and that the crew is appropriate in qualification and numbers for the type,
size, machinery and equipment of the ship;
5. A State which has clear grounds to believe that proper jurisdiction and control with respect
to a ship have not been exercised may report the facts to the flag State. Upon receiving such a
report, the flag State shall investigate the matter and, if appropriate, take any action necessary
to remedy the situation.
Q.2 Describe the following:

a) Purpose and contents of Vessel Response plan (VRP) as per Oil Pollution
Act of USA 1990.
b) Cargo record book entries to be made under MARPOL 73/78 annex – II
Answer
(a)
The U.S. Oil Pollution Act of 1990 (OPA 90) establishes, unilaterally, oil spill response plan
requirements for tank ships, called vessel response plans (VRPs), of extreme importance and
concern to international tanker owners. In brief, OPA 90 VRP requirements include:
 Consistency with the National Contingency Plan (NCP) and area plans;
 Identification of a "qualified individual" to implement the plan and to coordinate with
the federal on-scene coordinator (FOSC);
 Assurance, by contract or other approved means, of private resources to respond to a
worst case spill (defined as loss of the entire cargo during adverse weather
conditions);
 Training and drills; and
 Periodic updates.
 OPA 90 also requires carriage of removal equipment by tankers
(b)
Entries required for operations involving all categories of substances:
 Loading of cargo
 Internal transfer of cargo
 Unloading of cargo
 Mandatory prewash in accordance with the ship‟s procedures and arrangements
manual
Page 32
 Cleaning of cargo tanks except mandatory prewash (other prewash operations, final
wash, ventilation, etc.)
 Discharge into the sea of tank washings
 Ballasting of cargo tanks
 Discharge of ballast water from cargo tanks
 Accidental or other exceptional discharge
 Control by authorized surveyors
 Additional operational procedures and remarks
Q.3 a) Describe salient features of Oil Pollution Preparedness, Response and

Cooperation Convention (OPRC) 1990.
b) State the various provisions of IMO Conventions under which Port State
Control is exercised by the Coastal States.
c) Briefly describe the statutory surveys and inspection pertaining to Oil Tanker
as per SOLAS.
Answer
(a)
International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC)

is an international maritime convention establishing measures for dealing with marine oil
pollution incidents nationally and in co-operation with other countries and are required to
establish measures for dealing with pollution incidents, either nationally or in co-operation
with other countries – THIS MEANS TO HAVE A CONTINGENCY PLAN FOR OIL
POLLUTION AT THE REGIONAL LEVEL INVOVING A NUMBER OF
COUNTRIES IN A REGION.
In accordance with this Convention and its Annex, States-Parties to the 1990 Convention
undertake, individually or jointly, to take all appropriate measures to prepare for and respond
to oil pollution incidents.
Objectives
The primary objectives of the OPRC are as follows (ALL AT THE REGIONAL LEVEL):
 Contingency planning and coordinated response procedures.

 Establishment of equipment stocks sufficient to deal with oil pollution risks.
 Research and development programs.
 Training and exercise programs to facilitate oil spill response.
 SOPEP to be carried on board all vessels over a stipulated size.
Responsibilities of Ships and Oil pollution reporting procedures
1. Ships are required to carry a shipboard oil pollution emergency plan, in accordance
with the provisions adopted by the IMO for this purpose. These plans are subject,
while in a port or at an offshore terminal under the jurisdiction of a Party, to
inspection by officers duly authorized by that Party. SOPEP IS THE ACCEPTABLE
SHIPBOARD PLAN FOR OPRC. A contingency plan specifically for OPRC is
therefore NOT REQUIRED.
Page 33
2. Ships are required to report any observed event at sea involving a discharge of oil or
the presence of oil or incidents of pollution to coastal authorities and the convention
details the actions that are then to be taken.
(b)
A point to also be noted is the fact that the vested interest of the government of a PSC
inspection is to ensure that its territory is not harmed by a visiting vessel in terms of safe
operations and preventing pollution to its environment.Port State Control (PSC) is a ship
inspection program whereby foreign vessels entering a sovereign state‟s waters are boarded
and inspected to ensure compliance with various major international maritime conventions,
namely:
1. International Convention for the Safety of Life at Sea (SOLAS),

2. International Convention for the Prevention of Pollution from Ships (MARPOL),
International Convention on Standards of Training Certification and Watch keeping
for Seafarer (STCW),
3. Load Lines (LL),
4. Convention on the International Regulations for Preventing Collisions at Sea
(COLREG)
5. International Labour Organization‟s Maritime Labour Convention.
The level of survey conducted by a PSC inspector can go from a preliminary inspection to a
more detailed inspection of the entire vessel. This will be dependent upon the impression that
he gets while on board. What he will check is to ensure that there is a well-planned system of
operation on board. If satisfied at the initial stage, then he will limit his inspection otherwise;
he will start his detailed inspection.
(c)
The scope of statutory survey covers every part of SOLAS convention, LL convention,
COLREG convention, MLC and MARPOL convention.
According to the classification rules - Classification survey is in accordance with the

statutory survey simultaneously. As a result, classification survey is taken when doing
statutory survey. Since the classification special survey cycle are restricted in less than 5
years for the reason of technical condition or structural condition, statutory survey renewal
survey should in accordance with classification special survey, related statutory regular
survey should adjust to it as well.
The anniversary date of statutory survey determine the date of annual survey, intermediate
survey and renewal survey, as if the annual survey, intermediate survey and renewal survey
are completed before specified time limit(namely before 3 months of the anniversary date),
the anniversary date need to get revised to ensure all kinds of regular survey not exceeding
the specified period.
To ensure the safety, IMO brought out CAS requirement for present oil tanker, namely all
5000DWT or international shipping oil tankers contracted, keel laid or delivered before 6th
Page 34
July 1996 should take CAS survey combined with intermediate survey, except for the oil
tankers as follows:
 Oil tankers which fulfilled the double hull requirements of MARPOL convention.
 Except for the side tank breadth and minimum height of double bottom space, which
did not meet the requirement of MARPOL, under this situation, the protective height
in double bottom central line should be B/15 or 2m, the protective distance of side
tank should be 760mm.
 In accordance with the hydrostatic balance loading requirement of MARPOL, which
is confirmed by MEPC (of IMO) - in terms of the detail requirement of CAS survey,
the ship owner is advised to refer to the “CCS Guidelines for Surveys of Condition
Assessment Scheme (CAS) for Existing Oil Tankers”
Q.4 a) Define “Special Trade Passenger” and “Special Trade Passenger Ship”.
b) State the purpose of Issuing Certificate A and Certificate B to the special
trade passenger ship under the provisions of section 241/242 respectively
of Merchant Shipping Act, 1958.
c) State the provisions of MSA 1958 concerning entries to be made in
Official Log Book (OLB).
Answer
(a)
“Special Trade Passenger” means a passenger carried in special trade passenger ship in
spaces on the weather deck or upper deck or between decks which accommodate more than
eight passengers and includes a pilgrim or a person accompanying a pilgrim.
“Special Trade Passenger Ship” means a mechanically propelled ship carrying more than
thirty special trade passengers.
(b)
Contents of Certificate A
The first of the certificates is referred to as Certificate A and shall be in the prescribed form
and contain such particulars as may be prescribed.
In particular and without prejudice to the generality of the foregoing power, certificate A
shall contain the following statements and particulars, namely:
 that the ship is seaworthy;

 that the ship is properly equipped, fitted and ventilated;
 the number of special trade passengers the ship is certified to carry; and
 such other particulars as may be prescribed.
Certificate A shall remain in force for a period of one year from the date of issue or for such
shorter period as may be specified in the Certificate A.
Page 35
The second of the certificates is referred to asCertificate B and shall be in the prescribed form
and shall state:
 the voyage which the ship is to make, and the intermediate ports (if any) at which she
is to touch;
 that she has the proper complement of officers and seamen;
 that the master holds:
 a certificate of survey and certificate A; or
 a passenger ship safety certificate accompanied by an exemption certificate, a
special trade passenger ship safety certificate and a special trade passenger
ship space certificate; or that she has on board such number of medical
officers licensed in the prescribed manner and such number of attendants, if
any, as may be prescribed;
 that food, fuel and pure water over and above what is necessary for the crew, and the
other things (if any) prescribed for [special trade passenger ships] or pilgrim ships,
have been placed on board, of the quality prescribed, properly packed, and sufficient
to supply the [special trade passengers] or pilgrims on board during the voyage which
the ship is to make (including such detention in quarantine as may be probable)
according to the prescribed scale;
 in the case of 4[a special trade passenger ship,] if the ship is to make a voyage in
season of foul weather specified as such in the rules made under section 262, and to
carry upper-deck passengers, that she is furnished with substantial bulwarks and a
double awning or with other sufficient protection against the weather;
 in the case of [a special trade passenger ship,] the number of cabin and 3[special trade
passengers] embarked at the port of embarkation;
 such other particulars, if any, as may be prescribed for [special trade passenger ship]
or pilgrim ships, as the case may be.
(c)
Entries required to be made in official log books
inflicted;
inflicted;
declining;
Page 36
 the wages due to any seaman or apprentice who dies during the voyage and the gross
amount of all deductions to be made;
the voyage;

a) Maritime Labour Convention 2006.
b) Antifouling system for ships.
Answer
(a)
PLEASE REFER TO PREVIOUS ANSWER – Q. 4 (c) of May 2012.
(b)
Anti-fouling system refers to a coating, paint, surface treatment or device used on a ship to
control or prevent attachment of unwanted organisms.The regulation applies regardless of the
size of the ship (or recreational craft) or its purpose. “Use” refers to application, change or
replacement of the anti-fouling system.
As of 1 January 2008 there is a total ban on Organotin compounds which act as biocides in
anti-fouling systems on ships. This means that all ships regardless of size or ships‟ trade must
have removed such anti-fouling systems. Alternatively, they may be covered with a sealer
coat that prevents Organotin compounds from leaching. At the moment there are only
Organotin compounds which act as biocides in antifouling systems which are entirely
prohibited. There are other substances in anti-fouling systems which act as biocides, but there
are no current prohibitions. Other substances may be prohibited in future.
As from 1 July 2004, ships with a gross tonnage of 400 or above must be surveyed and have
an International Anti-fouling System Certificate. Survey and certification are issued by the
Swedish Transport Agency and by recognized organizations with which the Administration
has formal agreements.
The Anti-fouling System Certificate ceases to be valid if the antifouling system is changed or
replaced with another system and upon transfer of the ship to another flag or state.
Page 37
Q.6 a) Discuss various types of Bills of Lading.

b) State the differences between “Note of Protest” and “Letter of Protest”.
c) Differentiate between shipper‟s declarations and cargo manifest.
Answer
(a)
A Bill of Lading, in its simplest form, is a receipt. The document states that the carrier has
received the shipment and contains information about the shipper and the receiver.
There are 12 common types of Bill of Lading Forms as follows:
1. Straight Bill of Lading: This is typically used when shipping to a customer. The "Straight
Bill of Lading" is for shipping items that have already been paid for.
2. To Order Bill of Lading: Used for shipments when payment is not made in advance. This
can be shipping to one of your distributors or a customer on terms.
3. Clean Bill of Lading: A Clean Bill of Lading is simply a BOL that the shipping carrier has
to sign off on saying that when the packages were loaded they were in good condition. If the
packages are damaged or the cargo is marred in some way (rusted metal, stained paper, etc.),
they will need issue a "Soiled Bill of Landing" or a "Foul Bill of Landing."
4. Inland Bill of Lading: This allows the shipping carrier to ship cargo, by road or rail, across
domestic land, but not overseas.
5. Ocean Bill of Lading: Ocean Bills of Lading allows the shipper to transport the cargo
overseas, nationally or internationally.
6. Through Bill of Lading: Through Bills of Lading are a little more complex than most
BOLs. It allows for the shipping carrier to pass the cargo through several different modes of
transportation and/or several different distribution centres. This Bill of Landing needs to
include an Inland Bill of Landing and/or an Ocean Bill of Landing depending on its final
destination.
7. Multimodal/Combined Transport Bill of Lading: This is a type of Through Bill of Lading

that involves a minimum of two different modes of transport, land or ocean. The modes of
transportation can be anything from freight boat to air.
8. Direct Bill of Lading: Use a Direct Bill of Lading when you know the same vessel that
picked up the cargo will deliver it to its final destination.
9. Stale Bill of Lading: Occasionally in cases of short-over-seas cargo transportation, the

cargo arrives to port before the Bill of Landing. When that happens, the Bill of Landing is
then "stale."
Page 38
10. Shipped On Board Bill of Lading: A Shipped On Board Bill of Lading is issued when the
cargo arrives at the port in good, expected condition from the shipping carrier and is then
loaded onto the cargo ship for transport overseas.
11. Received Bill of Lading: It is simply a Bill of Lading stating that the cargo has arrived at
the port and is cleared to be loaded on the ship, but has not necessary mean it has been
loaded. Used as a temporary BOL when a ship is late and will be replaced by a Shipped On
Board Bill of Lading when the ship arrives and the cargo is loaded.
12. Claused Bill of Lading: If the cargo is damaged or there are missing quantities, a Claused
Bill of Landing is issued.
(b)
During the course of a voyage if the vessel is or has experienced bad weather or any nature of
extraordinary events and you fear that damage or loss may be caused to your vessel and/or
cargo you must prepare a Note Of Protest and upon arrival and/or never after 24 hours having
elapsed (not including holidays, Saturdays and Sundays) have it notarized at Notary Public.
„‟Notes of Protest‟‟ should be made when and if you consider it of utmost importance and
necessity, not for the sake of doing so. If for example there is a possibility of a claim from
another party to arise.
If you suspect that damage has been caused to the vessel only (i.e. through heavy weather,
touching bottom, striking locks etc.) there is no need for a „‟Note Of Protest‟‟ to be issued
same could be stated on a „‟Statement of Facts‟‟.
When writing such a „‟Note Of Protest‟‟ bear in mind that you must stick to the FACTS and
only, keeping it as brief and as clear as possible. Same can be extended upon a later date if
required. Also do not express any opinions whatsoever. Such statement of opinions may and
do often lead to unnecessary complications and/or confusion in a later date. Furthermore due
to the fact that Notary Publics around the world use various types/forms for „‟Notes of
Protest‟‟ it is quite difficult to admit/provide you with any standard form, we do however
attach a most common form which you may alter where necessary. Thus in the case that
„‟Note of Protest‟‟ has been made and notarize d by Notary Public do not neglect to forward a
copy to office at first convenient time. It is IMPORTANT to note to be sure to make all
appropriate entries in the ship's logbook
A far as a “Letter of Protest” is concerned, the first thing to remember is that a letter of
protest, strictly speaking, is not a legal document but a paper containing an account of the
events or statement of facts, describing current situation or consequences of some wrongful
act or acts, which had happened usually contrary to master‟s or crew efforts.
For example, when during cargo operation something beyond the master‟s control has gone
wrong and the master is unable to make it right, like interruption from shore side of loading
or discharging operation, neglect cargo handling, violation of safe working practice, etc.
Obviously, the said act or occurrence should be of such importance that master feels himself
obliged to bring it to attention of all parties concerned, either for some immediate action or
for future reference, but it still lacks of any legal effect being a document produced by one
side to defence its own position.
Page 39
(c)
Cargo Manifest
A shippingdocument used by customspersonnel reviewing a particular transport vehicle's

intended trip that summarizes all bills of lading that have been issued by the carrier or its
representative for that particular shipment. For example, a cargo manifest might be used for
shipments made by sea, air or land, and will generally show the shipment'sco-signer and
consignee, as well as listingproduct details such as number, value, origin and destination.
Shipper‟s Declaration
Whereas, Shipper's Declaration is the form used to describe hazardous materials in a

container or shipping on a vessel. The IMO shipper‟s declaration form is mandatory for
shipments of dangerous goods by sea as advised by the IMO. The shipper must certify that
the contents are fully and accurately described by proper shipping name, are classified,
packed, marked and labelled, and are in all respects in the proper condition for transport
according to the applicable regulations.These documents contain description of cargo and
required for booking of the sea container.
Q.7 a) Explain essential elements of Towage under Harbour and sea conditions.
b) Describe the features of Special Compensations P & I Club (SCOPIC)
clause.
Answer
(a) TO DO
(b)
SCOPIC – PLEASE REFER TO PREVIOUS ANSWERQ. 7 of May 2012.
Q.8 What are the responsibilities and liabilities of the carrier and shipper as per
Hague Visby rules?
Answers
to the time they are discharged from the ship" (Art. I). Therefore, the responsibilities
beginning of the voyage to exercise due diligence to:
 Make the ship seaworthy;

 Properly man, equip and supply the ship;
Page 40
 Make the holds, refrigerating and cool chambers, and all other parts of the ship in
which goods are carried, fit and safe for their reception, carriage and preservation.
Subject to the provisions of Article IV, the carrier shall properly and carefully load,
handle, stow, carry, keep, care for, and discharge the goods carried.
Q.9 With reference to Indian Marine Insurance Act, 1963 describe the following:
a) Insurable Interest
b) Total loss (constructive and actual)
c) Warranties
d) Conditions
Answer
(a)
Insurable Interest
Under this principle an assured can only recover under the policy if he has an insurable
interest in the subject matter of the insurance. In other words, a contract of insurance is
binding on the underwriter only if it is made to cover an interest, which the law declares to be
capable of being insured. This means that the assured usually holds or expects to acquire an
interest in the nature of property. This was done to prevent the gamblers away from the
concept of insurance. What distinguishes such a contract from a bet is that the assured must
have an insurable interest, or right of property, in the ship.
Insurable interest is the case notably where in any legal relation to the marine adventure at
risk, in consequence of which he may benefit by the safety or due arrival of the insurable
property (the ship or cargo), or may suffer a loss by its loss (sinking).
Examples of insurable interest
 Ship owner‟s interest in the ship he owns.

 Bottomry: Interest acquired by loan raised by captain of vessel on ship/cargo when
money urgently needed for prosecution of voyage, not repayable if venture lost.
 Respondentia: Interest acquired by advance secured on cargo repayable only if cargo
saved, even if ship lost.
 Master's and Seamen's Wages: Individuals have interest in their own wages.
 Advance Freight: Freight is the remuneration payable to a ship owner for carriage of
goods or for the hire of his ship or cargo space. Unless freight is wholly or partly pre-
paid, it remains at the risk of the ship owner, who has insurable interest in it.
 Insurable interest from insured property that is mortgaged; only applies to property
given as security for loan. Mortgagor (borrower) retains full insurable interest as he
must repay mortgagee (lender) in event of loss; mortgagee has insurable interest to
extent of the loan.
Page 41
(b)
Total Loss (Constructive and Actual)
Actual total loss and constructive total loss
These two terms are used to differentiate the degree of proof where a vessel or cargo has been
lost. An actual total loss occurs where the damages or cost of repair clearly equal or exceed
the value of the property. A constructive total loss is a situation where the cost of repairs plus
the cost of salvage equal or exceed the value. The use of these terms is contingent on there
being property remaining to assess damages, which is not always possible in losses to ships at
sea or in total theft situations.
Actual total loss
 Where the subject-matter insured is destroyed, or so damaged as to cease to be a

thing of the kind insured, or where the assured is irretrievably deprived thereof,
there is an actual total loss.
 In the case of an actual total loss no notice of abandonment need be given.
Constructive total loss
Subject to any express provision in the policy, there is a constructive total loss where the
subject-matter insured is reasonably abandoned on account of its actual total loss
appearing to be unavoidable, or because it could not be preserved from actual total loss
without an expenditure which would exceed its value when the expenditure had been
incurred.
In particular, there is a constructive total loss:
(i) Where the assured is deprived of the possession of his ship or goods by a peril
insured against, and
(a) it is unlikely that he can recover the ship or goods, as the case may be, or
(b) the cost of recovering the ship or goods, as the case may be, would exceed their
value when recovered; or
(ii) In the case of damage to a ship, where she is so damaged by a peril insured against
that the cost of repairing the damage would exceed the value of the ship when repaired.
In estimating the cost of repairs, no deduction is to be made in respect of general
average contributions to those repairs payable by other interests, but account is to be
taken of the expense of future salvage operations and of any future general average
contributions to which the ship would be liable if repaired; or
(iii) In the case of damage to goods, where the cost of repairing the damage and
forwarding the goods to their destination would exceed their value on arrival.
(c)
Warranties
A warranty means a promissory warranty, that is to say a warranty by which the assured
undertakes that:
Page 42
 Some particular thing shall or shall not be done, or

 That some condition shall be fulfilled, or
 Whereby he affirms or negatives the existence of a particular state of facts.
There are two kinds of warranties:
Express warranty
 An express warranty may be in any form of words from which the intention to
warrant is to be inferred.
 An express warranty must be included in, or written upon the policy, or must be
contained in some document incorporated by reference into the policy. An express
warranty does not exclude implied warranty, unless it is inconsistent therewith.
An implied warranty
 Warranty, which may or may not be written in the contract but is implied as per law.
Examples of implied warranty
 Where insurable property, whether ship or goods, is expressly warranted neutral, there
is an implied condition that the property shall have a neutral character at the
commencement of the risk, and that, so far as the assured can control the matter, its
neutral character shall be preserved during the risk.
 Where a ship is expressly warranted "neutral", there is also an implied condition that,
so far as the assured can control the matter, she shall be properly documented, that is
to say, that she shall carry the necessary papers to establish her neutrality, and that she
shall not falsify or suppress her papers, or use simulated papers. If any loss occurs
through breach of this condition, the insurer may avoid the contract.
The effect of breach of warranty on Marine Insurance Policy
A warranty is a condition which must be exactly complied with, whether it is material to the
risk or not. If it be not so complied with, then, subject to any express provision in the policy,
the insurer is discharged from liability as from the date of the breach of warranty, but without
prejudice to any liability incurred by him before that date.
(d)
Conditions
A condition typically describes a part of the contract that is fundamental to the performance
of that contract, and, if breached, the non-breaching party is entitled not only to claim
damages but to terminate the contract on the basis that it has been repudiated by the party in
breach.
Page 43
Example - Implied condition as to commencement of risk
 Where the subject-matter is insured by a voyage policy 'at and from' or 'from' a
particular place, it is not necessary that the ship should be at that place when the
contract is concluded, but there is an implied condition that the adventure shall
be commenced within a reasonable time, and that if the adventure be not so
commenced the insurer may avoid the contract.
 The implied condition may be negated by showing that the delay was caused by
circumstances known to the insurer before the contract was concluded, or by
showing that he waived the condition.
Page 44
AUGUST 2012
Page 45
Q.1 a) What are the extent of territorial waters, the contiguous Zone & The EEZ
under UNCLOS 1982?
b) With respect to UNCLOS 1982, explain the criminal jurisdiction of
Coastal State inTerritorial Waters.
Answer
(a)
(b)
Crimes committed at sea present a „dynamic legal scenario‟ where international law
recognises a multitude of domestic jurisdictions existing concurrently. At all times, a ship is
subject to the domestic laws of the country in which it is registered, but it can also be within
the territorial jurisdiction of another country whilst transiting its waters and in its ports, and
thereby subject to that second country‟s laws. Further, where a citizen is involved in a
criminal offence, either as an alleged perpetrator or as a victim, their country of citizenship is
recognised under international law as also having jurisdiction to investigate and prosecute the
crime. A criminal act committed on board will therefore often lead to potentially competing
jurisdictional claims.
Jurisdiction refers to the ability of a country both to make and to enforce its laws. It is
generally considered that there are two basic types of jurisdiction: prescriptive jurisdiction
and enforcement jurisdiction. Prescriptive jurisdiction is the power to regulate people and
situations regardless of their location. Enforcement jurisdiction on the other hand is the
ability of a country to legally arrest, try, convict and gaol an individual for a breach of its
laws.
A country will therefore only be entitled to prosecute a crime (exercising enforcement

jurisdiction) if it has recognised grounds to claim jurisdiction over the event in international
law, and its domestic law expressly asserts that jurisdiction. As a matter of general
international law, a country may invoke (use / put into practice) jurisdiction – and apply its
domestic laws and enforce sanctions for criminal conduct – in a variety of circumstances,
including: Where criminal conduct occurs within their territory (territorial principle);
Q.2 List the functional requirements embodied in the ISPS code that will assist in
achieving the objectives of the code.
Answer
In a very precise explanation, the International Ship and Port Facility Security Code (ISPS
Code) is a set of maritime regulations designed to help detect and deter threats to
international maritime security. This risk management concept is embodied in the ISPS Code
through a number of minimum functional security requirements for ships and port facilities.
For ships, they include ship security plans, ship security officers, company security officers,
and certain onboard equipment. For port facilities, the requirements include port facility
security plans and port facility security officers. In addition the requirements for ships and for
port facilities include monitoring and controlling access; monitoring the activities of people
Page 46
and cargo; and ensuring that security communications are readily available. Training and
drills also play an important role.
It is however to be noted that the regulatory provisions do NOT extend to the actual response
to security incidents or to any necessary clear-up activities after such an incident. It is
basically a risk assessment activity to promote maritime security with ships; port and the
Maritime Administration (Flag State) of the ship are the key players.
In summary then, the ISPS Code:
 Enables the detection and deterrence of security threats within an international

framework.
 Establishes roles and responsibilities.
 Enables collection and exchange of security information.
 Provides a methodology for assessing security.
 Ensures that adequate security measures are in place.
It requires ship and port facility staff to:
 Gather and assess information.

 Maintain communication protocols.
 Restrict access; prevent the introduction of unauthorised weapons, etc.
 Provide the means to raise alarms.
 Put in place vessel and port security plans; and ensure training and drills are
conducted.
And the requirements of the code include:

 Ship Identification Number to be permanently marked on vessel‟s hulls
 Continuous Synopsis Record (CSR) kept onboard showing vessel history
 Ship or Port Facility Security Assessment (SSA or PFSA) Ship or Port Facility
Security Plan (SSP or PFSP)
 Ship or Port Facility Security Certificate (SSC or PFSC)
 Ship or Port Facility Security Officer (SSO or PFSO)
 Company Security Officer
 Continuous ship to port security communication link
 Training and drills
 A Ship Security Alert System (SSAS)
What does implementing the ISPS Code involve?
Ship and port facility security is a risk management activity. As with all risk management
efforts, the most effective course of action is to eliminate the source of the threat. Eliminating
the source of the threat, which in this case is one that would commit acts of terrorism or
otherwise threaten the security of ships or of the port facilities, is essentially a Government
function. 100% security is an aim but cannot be guaranteed - hence the risk reduction
approach to lessen possibilities to the lowest practicable.
As threat increases, the only logical counteraction is to reduce vulnerability. This ISPS
Code provides several ways to reduce vulnerabilities. Each ship and each port facility will
Page 47
have to determine the measures needed to intensify its security measures to appropriately
offset the threat by reducing its vulnerability.
The ISPS Code is based on three security levels. When there is a heightened risk of a security
incident, the security level is raised. Ships and terminals are then required to take extra
protective security measures. There are therefore three designated levels of security under
ISPS as follows:
 Security Level 1: The normal situation, with a number of standard protective security
measures.
 Security Level 2: There is a heightened risk of a security incident. Additional protective
security measures are maintained.
 Security Level 3: A security incident is probable. Further specific protective security
measures are maintained. The government sets security levels. In the case of ocean-
going ships, the level is set by the flag state. In the terminals, this is set by the
government of the country in question
Ship Security Plan
The Ship Security Plan is developed to ensure the application of measures on board the ship
designed to protect persons on board, cargo, cargo transport units, ship‟s stores or the ship
from the risks of a security incident. The plan must address, at least, the following:
 Measures designed to prevent unauthorized weapons, dangerous substances and

devices intended for use against persons, ships or ports from being taken on board.
 Identification of the restricted areas and measures for the prevention of unauthorized
access to them.
 Procedures for responding to security threats or breaches of security, including
provisions for maintaining critical operations of the ship or ship/port interface,
evacuating persons on board, and reporting on incidents.
 Duties of shipboard personnel assigned security responsibilities and of other
shipboard personnel on security aspects.
 Procedures for auditing the security activities, and for ensuring the inspection, testing,
calibration, and maintenance of any security equipment provided on board.
 Procedures for training, drills and exercises associated with the plan.
 Procedures for interfacing with port facility security activities.
 Procedures for the periodic review of the plan and for updating.
 Procedures, instructions and guidance on the use of the ship security alert system,
including the testing, activation, deactivation and resetting and to limit false alerts.
 Instructions indicating that the master has overriding authority and responsibility to
make decisions with respect to the safety and security of the ship and to request
assistance as may be necessary.
Records of the following activities addressed in the Ship Security Plan will need to be kept on
board:
 Training, drills and exercises

 Security threats and security incidents
 Breaches of security
 Changes in security level
Page 48
 Communications relating to the direct security of the ship such as specific threats to
the ship or to port facilities
 Internal audits and reviews of security activities
 Periodic reviews of the Ship Security Assessment and the Ship Security Plan
 Implementation of any amendments to the plan
 Maintenance, calibration and testing of any security equipment provided on board
including testing of the ship security alert system
International Ship Security Certificate
 An International Ship Security Certificate is issued after the initial or renewal

verification. This certificate is valid for a maximum of five years.
Q.3 a) What is the purpose of CLC and Fund conventions?

b) Explain the purpose of bringing out the International Convention on civil
liability for bunker oil pollution damage.
Answer
(a)
PLEASE REFER TO PREVIOUS ANSWER – Q. 3 (b) of May 2012.
(b)
Countries, by understanding their respective responsibilities as perArticle 194 of the United

Nations Convention on the Law of the Sea (UNCLOS), 1982, which provides that States shall
take all measures necessary to prevent, reduce and control pollution of the marine
environment, as well as, also appreciating Article 235 of UNCLOS, which provides that, with
the objective of assuring prompt and adequate compensation in respect of all damage caused
by pollution of the marine environment, States shall co-operate in the further development of
relevant rules of international law, decided to work towards the final loop in compensation
for oil pollution damage (after the success of the CLC and Fund Conventions) in ensuring
that compensation is available to persons who suffer damage caused by pollution resulting
from the escape or discharge of oil carried in ship‟s bunkers.
It was also recognised that the importance of establishing strict liability for all forms of oil
pollution, which is linked to an appropriate limitation of the level of that liability, is the need
of the hour. And finally, considering that complementary measures are necessary to ensure
the payment of adequate, prompt and effective compensation for damage caused by pollution
resulting from the escape or discharge of bunker oil from ships, there was a consensus
reached to adopt uniform international rules and procedures for determining questions of
liability and providing adequate compensation in cases related to pollution from bunker spills
from ships.
Page 49
Q.4 a) List the spaces not suitable for the carriage of passengers as provided in
STP ships rules.
b) Define Special Trade Passenger Ship. Explain the contents of special
trade passenger ship safety certificate.
Answer
(a)
Spaces not suitable for carriage of passengers
No special trade passenger shall be carried:
(a) On any deck lower than the one immediately below the deepest subdivision load line;
(b) At any point in a between deck space where the clear headroom is less than 1.90 metres
(6 feet 3 inches);
(c) Forward of the collision bulkhead or the upward extension thereof, as provided for in
Regulation 9 of Chapter II of the SOLAS Convention;
(d) On lower between decks within 10 per cent of the length of the ship from the
forwardperpendicular; or
(e) On any weather deck which is not sheathed to the satisfaction of the Administration.
During seasons of foul weather, spaces on the weather deck shall not be measured asbeing
available for the accommodation of special trade passengers, except that such spaces maybe
measured as being available for use as airing space required to be provided.
(b)
“Special Trade Passenger Ship” means a mechanically propelled ship carrying more than
thirty special trade passengers.
Contents of Special Trade Passenger Ship Safety Certificate
There are TWO Certificates – Certificate A and Certificate B.
Contents of Certificate A
The first of the certificates is referred to as Certificate A and shall be in the prescribed form
and contain such particulars as may be prescribed.
In particular and without prejudice to the generality of the foregoing power, certificate A
shall contain the following statements and particulars, namely:
 that the ship is seaworthy;

 that the ship is properly equipped, fitted and ventilated;
 the number of special trade passengers the ship is certified to carry; and
 such other particulars as may be prescribed.
Certificate A shall remain in force for a period of one year from the date of issue or for such
shorter period as may be specified in the Certificate A.
Page 50
The second of the certificates is referred to asCertificate B and shall be in the prescribed form
and shall state:
 the voyage which the ship is to make, and the intermediate ports (if any) at which she
is to touch;
 that she has the proper complement of officers and seamen;
 that the master holds:
 a certificate of survey and certificate A; or
 a passenger ship safety certificate accompanied by an exemption certificate, a
special trade passenger ship safety certificate and a special trade passenger ship
space certificate; or that she has on board such number of medical officers
licensed in the prescribed manner and such number of attendants, if any, as
may be prescribed;
 that food, fuel and pure water over and above what is necessary for the crew, and the
other things (if any) prescribed for [special trade passenger ships] or pilgrim ships,
have been placed on board, of the quality prescribed, properly packed, and sufficient
to supply the [special trade passengers] or pilgrims on board during the voyage which
the ship is to make (including such detention in quarantine as may be probable)
according to the prescribed scale;
 in the case of 4[a special trade passenger ship,] if the ship is to make a voyage in
season of foul weather specified as such in the rules made under section 262, and to
carry upper-deck passengers, that she is furnished with substantial bulwarks and a
double awning or with other sufficient protection against the weather;
 in the case of [a special trade passenger ship,] the number of cabin and 3[special trade
passengers] embarked at the port of embarkation;
 such other particulars, if any, as may be prescribed for [special trade passenger ship]
or pilgrim ships, as the case may be.
Q.5 Explain the following under the provisions of Maritime Labour Convention
2006:
a) Hours of work and hours of rest b) Manning levels

c) Recruitment and Placement services d) Repatriation
(a)
Seafarer‟s Hours of work or rest
The period of 24 hours shall begin at the time a seafarer starts work immediately after having
any period of one hour and over off duty. The Administration has provided for the minimum
hours of rest of not less than 10 hours in any 24-hour period; and 77 hours in any seven-day
period, however with proper notice to the Administration, ship-owners may choose to apply
the maximum hours of work of not more than 14 hours in any 24-hour period; and 72 hours
in any seven-day period, but shall not implement both on the same vessel.
 The hours of rest may be divided into no more than two periods, one of which shall be
at least 6 hours in length, and the interval between consecutive periods of rest shall
not exceed 14 hours.
Page 51
 The ship-owner shall ensure that musters, fire-fighting; lifeboat; security and oil-spill
drills, safety & security exercises are conducted in such a manner so as to minimise
the disturbance of rest periods and not to induce fatigue.
 The ship-owner shall ensure that adequate compensatory rest period is provided if the
normal period of rest is disturbed for call-outs to work, such as when a machinery
space is unattended, during the normal hours of rest. Any compensatory rest provided
shall be consistent with minimum rest hour requirements in any 24-hour period.
(b)
Manning levels
 Each Member shall require that all ships that fly its flag have a sufficient number of
seafarers on board to ensure that ships are operated safely, efficiently and with due
regard to security. Every ship shall be manned by a crew that is adequate, in terms of
size and qualifications, to ensure the safety and security of the ship and its personnel,
under all operating conditions, in accordance with the minimum safe manning
document.
 When determining, approving or revising manning levels, the competent authority
shall take into account the need to avoid or minimize excessive hours of work to
ensure sufficient rest and to limit fatigue, as well as the principles in applicable
international instruments, especially those of the International Maritime Organization,
on manning levels.
(c)
Recruitment and Placement Services (RPS)
Recruitment and Placement Services, is defined as, “Any person, company, institution,
agency or other organisation, in the public or private sector, which is engaged in recruiting
seafarers on behalf of ship-owners or placing seafarers with ship-owners.”
MLC requires that ship-owners who use RPS must request the presentation of a license or
similar document which proves that RPS operates in accordance with national requirements
relevant to MLC. Main areas of concern under MLC therefore are:
 Free of charge access to an efficient, adequate & accountable system for finding a job
on board;
 Cost of issuance of travel documentation required to join ship;
 System of protection against monetary loss;
 Prohibition of blacklisting/ other mechanisms that intend to prevent seafarers from
gaining employment;
 Up-to-date register of all seafarers recruited;
 Verification that seafarers are informed of their rights & duties; and
 Seafarers get a copy of their employment agreements & company‟s complaint
procedure.
Page 52
(d)
Repatriation
Seafarers have a right to be repatriated at no cost to themselves in the circumstances and

under the conditions specified in the Code.Each Member Country shall therefore require
ships that fly its flag to provide financial security to ensure that seafarers are duly repatriated
in accordance with the requirements of MLC. Thus, each Member Country shall ensure that
seafarers on ships that fly its flag are entitled to repatriation in the following circumstances:
 if the seafarers' employment agreement expires while they are abroad;

 when the seafarers' employment agreement is terminated:
 by the ship-owner; or
 by the seafarer for justified reasons; and also
 when the seafarers are no longer able to carry out their duties under their employment
agreement or cannot be expected to carry them out in the specific circumstances.
It is also the responsibility of each Member Country to ensure that there are appropriate
provisions in its laws and regulations or other measures or in collective bargaining
agreements, prescribing the following:
 the circumstances in which seafarers are entitled to repatriation in accordance with

above;
 the maximum duration of service periods on board following which a seafarer is
entitled to repatriation - such periods to be less than 12 months; and
 the precise entitlements to be accorded by ship-owners for repatriation, including
those relating to the destinations of repatriation, the mode of transport, the items of
expense to be covered and other arrangements to be made by ship-owners.
Each Member shall prohibit ship-owners from requiring that seafarers make an advance
payment towards the cost of repatriation at the beginning of their employment, and also from
recovering the cost of repatriation from the seafarers' wages or other entitlements except
where the seafarer has been found, in accordance with national laws or regulations or other
measures or applicable collective bargaining agreements, to be in serious default of the
seafarer's employment obligations.
If a ship-owner fails to make arrangements for or to meet the cost of repatriation of seafarers
who are entitled to be repatriated:
 the competent authority of the Member whose flag the ship flies shall arrange for
repatriation of the seafarers concerned; if it fails to do so, the State from which the
seafarers are to be repatriated or the State of which they are a national may arrange for
their repatriation and recover the cost from the Member whose flag the ship flies;
 costs incurred in repatriating seafarers shall be recoverable from the ship-owner by
the Member whose flag the ship flies;
Finally, each Member Country shall require that ships that fly its flag carry and make
available to seafarers a copy of the applicable national provisions regarding repatriation
written in an appropriate language.
Page 53
Q.6 a) Discuss “Limitation of liability as per MSA 1958”.

b) What are the provisions of Merchant Shipping Act 1958 with respect to
desertion & absence without leave of seaman from his ship?
Answer
(a)
Limitation of liability for damages in respect of certain claims
The ship owner, salver, any person for whose act, neglect or default the ship owner or salver,
as the case may be, is responsible, and an insurer of liability for claims to the same extent as
the assured himself, may limit his liability in respect of:
 claims arising from loss of life of or personal injury to, or loss of or damage to,
property (including damage to harbour works, basins and waterways and aids to
navigation), occurring on board or in direct connection with the operation of the ship
or with salvage operations, and resulting in consequential loss;
 claims arising out of loss resulting from delay in the carriage by sea of cargo and
passengers or their luggage;
 claims arising out of other loss resulting from infringement of rights other than
contractual rights, occurring in direct connection with the operation of the ship or
salvage operations;
 claims of a person other than the person liable in respect of measures taken in order to
avert or minimise loss for which the person liable may limit his liability in accordance
with the provisions of the Convention or the rules made in this behalf prescribe, as the
case may be, and such further loss caused by such measures;
 claims for the loss of life or personal injury to passengers of a ship brought by or on
behalf of any person:
 under the contract of passenger carriage; or
 who, with the consent of the carrier, is accompanying a vehicle for live animals which
are covered by a contract for the carriage of goods, carried in that ship: Provided that
the limits for passengers claim specified in the rules made under this Part shall not be
applicable to the passengers carried in and around the coast of India in respect of
whom separate limits shall be prescribed.
Nothing in this section shall apply to:
 claims for salvage or contribution in general average;

 claims for oil pollution damage within the meaning of the International Convention on
Civil Liability for Oil Pollution Damage, 1992 as amended from time to time;
 claims by servants of the ship owner or salver whose duties are connected with the
ship or the salvage operations, including claims of their heirs, dependents or other
persons entitled to make such claims, if under the law governing the contract of
service between the ship owner or salver and such servants of the ship owner or salver
is not entitled to limit his liability in respect of such claims, or if he is by such law
only permitted to limit his liability to an amount greater than that provided for in the
provision of the Convention or the rules made under this Part prescribe;
 claims subject to any International Convention or any law for the time being in force
in India governing or prohibiting limitation of liability for nuclear damage;
Page 54
(b)
Desertion and absence without leave
No seaman lawfully engaged and no apprentice:
 shall desert his ship; or

 shall neglect or refuse, without reasonable cause, to join the ship or to proceed to sea
in his ship or be absent without leave at any time within twenty-four hours of the
ship‟s sailing from a port either at the commencement or during the progress of a
voyage, or be absent at any time without leave and without sufficient reason from his
ship or from his duty.
Q.7 Discuss and distinguish between Hague and Hague-Visby rules with regards to
following:
a) Applicability of the Rules b) Limitation of liability

c) Time limit for initiating claims and suits
Answer
(a)
The Hague Rules represented the effort made by the international community to achieve
uniformity in ocean bills of lading in order to provide a degree of predictability for
international shipping. Prior to these rules, ship-owners often thwarted cargo damage claims
by inserting limits in bills of lading. The Hague Rules were generally well- received and have
been adopted by 58 maritime nations.
The Scope of Application
The scope of application of the Hague Rules is stated in Article 10 which provides that:
“The provisions of this Convention shall apply to all bills of lading issued in any of the
contracting States”. Thus, the Hague Rules shall only apply to the outward shipment i.e.
shipment from a port of the contracting states to a foreign port. As for the inward shipment
i.e. shipment from any port outside the contracting states to any port in the contracting states,
presumably, the Hague Rules do not apply but rather the law of the country from where the
goods were shipped would be the applicable law.
(b)
Limitation of Liability
The limitation of carrier‟s liability is stated in Article IV Rule 5 which provides that:
“Neither the carrier nor the ship shall in any event be or become liable for any loss or damage
to or in connection with goods in an amount exceeding 100 pound sterling per package or
unit, or the equivalent of that sum in other currency unless the nature and value of such goods
have been declared by the shipper before shipment and inserted in the bill of lading”. Thus,
Page 55
the Hague Rules limits the liability of the carriers to 100 pound sterling per package or unit,
or the equivalent of that sum in other currency. Unless, the shipper has made a declaration of
value, in which case the carrier‟s liability is limited to the higher declared value.
(c)
Time limit for initiating claims and suits
It is well-known that Hague and Hague-Visby Rules, where they apply, impose certain
obligations on a carrier in relation to the seaworthiness of the vessel and care of the cargo.
Article III rule 6 of each of these regimes imposes a one-year time limit for bringing suit
against the carrier which, if not complied with, may have prejudicial consequences on a
potential claimant.Generally speaking, the time-bar will apply to all claims in respect of the
carriage of goods by sea under bills of lading which are subject to Hague or Hague-Visby
Rules. The time-bar will apply not only to claims for damaged or lost cargo but also for
general average and salvage contributions. These may take time to quantify, and care must be
taken to ensure that the time-bar is not missed whilst such claims are being quantified.
Q.8 Distinguish between the following:
a) Lay days and lay time b) Trip charter and period charter
c) Demurrage and dispatch d) Convention and Protocol
Answer
(a)
Lay days - The period of days during which the ship must present herself at the loading port,
and during which charterers are obliged to accept the ship for loading.
Cancelling date is the final layday after which, if the ship presents herself at the loading port,
charterers have no obligation to load the cargo.For example, a lay/can of 18/22 would mean
that the first layday is the 18th of the month, and the final layday, or cancelling date, is the
22nd.
Lay time - The period of time agreed between the ship-owner and charterer during which the
owner will make and keep the ship available for loading and/or discharging without payment
additional to the freight. Laytime is measured in days, hours and minutes, and can be
considered as a reservoir of time that is gradually used up by the charterer. Three conditions
must be met before lay time can commence:
(1) The vessel must be an arrived ship

(2) she must be fully ready to load or discharge and
(3) notice of readiness must have been tendered in accordance with the Charter-party.
(b)
A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a
discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The
owner pays the port costs (excluding stevedoring), fuel costs and crew costs. The payment for
the use of the vessel is known as freight. A voyage charter specifies a period, known as lay
Page 56
time, for loading and unloading the cargo. If laytime is exceeded, the charterer must pay
demurrage. If laytime is saved, the charter party may require the shipowner to pay despatch
to the charterer.
A time charter is the hiring of a vessel for a specific period of time; the owner still manages
the vessel but the charterer selects the ports and directs the vessel where to go. The charterer
pays for all fuel the vessel consumes, port charges, commissions, and a daily hire to the
owner of the vessel.
(c)
The term demurrage originated in vessel chartering and refers to the period when the
charterer remains in possession of the vessel after the period normally allowed to load and
unload cargo (lay time). By extension, demurrage refers to the charges that the charterer pays
to the shipowner for its extra use of the vessel.
Despatch is the reverse of demurrage, paid by the shipowner to the charterer under a voyage
charter when a ship is loaded or unloaded in less time than allowed in the charter party.
(d)
THE QUESTION IS WRONG!! It should be asking THE DIFFERENCE BETWEEN

AN AMENDMENT AND A PROTOCOL. But, we will still answer it!
In order to understand the meaning of Convention, we need to first understand the meaning of
„treaty‟. „Treaty‟ is a formal agreement between two states signed by official representatives
of each state. But, for any such agreement to be called a treaty, the following four conditions
have to be met:
 First of all, it has to be a binding agreement, which means that the contracting parties
intended to create legal rights and duties.
 Secondly, the agreement must be concluded by states or international organizations
with treaty-making powers.
 Thirdly, it has to be governed by international law – that is, the general good of
mankind.
 Finally, the agreement has to be in writing.
What is a Convention?
The term "Convention" is also basically a treaty (meeting the above four requirements) but, it
has participation at the global level where every member country can participate.
Conventions are therefore agreements negotiated under the auspices of an international
organization (UN, IMO, UNESCO, UNICEF etc)(e.g. United Nations Convention on the
Law of the Sea of 1982). The same holds true for instruments adopted by an organ of an
international organization, such as the IMO, (e.g. the SOLAS Convention, MARPOL 73/78
Convention, STCW Convention – they are all treaties but are called Convention because in
order to make it a law, the countries from all around the world participated).
Page 57
What is a Protocol?
The term „Protocol‟ has five functions in international law:
(a) Protocol of Signature.

(b) Optional Protocol.
(c) Protocol based on a Framework Treaty.
(d) Protocol as a supplementary treaty.
(e) Protocol to amend.
As far as we are concerned, IMO has only used the „Protocol to Amend‟ function in its
Conventions so far, and thus we will only discuss this.
As the name suggests, „Protocol to Amend‟ will deal with a change to a Convention but, a
change to a Convention we call it an Amendment. So, in order for the change to a Convention
to be called a „Protocol‟, and not an amendment, two parameters have to be fulfilled:
1. The issue has to be of vital importance

2. The change should be such that the „existing face‟ of the treaty / convention is altered.
For example, the change of 1997 (Introduction of Annex VI) to MARPOL 73/78 is called a
Protocol and not an amendment. Why? Because, the issue of air pollution was of vital
importance based on the global issue of “global warming” and the introduction of a new
annex changed the face of the existing convention (earlier when we mentioned MARPOL, we
meant five annexes, now we mean six annexes; and, Annexes 1 to 5 deal with prevention of
pollution of the marine environment whereas, for the first time MARPOL was going to deal
with prevention of pollution of the air environment). Hence the change of 1997 to MARPOL
is NOT called an amendment, but Protocol of 1997.
(e)
The definitions of a condition and a warranty are very specific in the context of insurance
law. A warranty can be a condition but a condition may not be a warranty.Generally, a
condition is an essential part of a marine insurance contract, and if breached, the party that
has been deprived is permitted to claim damages and even terminate the contract because the
breach has in effect repudiated the contract. On the other hand, a warranty would not be
considered a vital part of the contract. In the event that one of the parties to the contract is
found to be in breach of the contract, he or she is at liberty to make a claim in damages but
this does not mean that the party who did not breach the contract could terminate the contract.
Warranties play a greater part in insurance law than conditions. A warranty is a term of
insurance contract that if the insured has breached, the insurer is no longer held to be liable as
of the date of the breach. So a breach of a warranty would invalidate (nullify) the insurance
claim. Warranties as promises relates to facts that the insured agree to do or not do.
Q.9 Briefly explain the following:
a) 3/4th collision liability clause in marine insurance.

b) “SCOPIC Clause” in a salvage agreement.
c) Open cover in a cargo insurance.
d) General Average as per York Antwerp Rules.
Page 58
Answer
(a)
3/4th Collision Liability [also known as Running Down Clause (RDC)]
Under the Institute Time Clauses (Hulls) 1983 it is agreed that if the insured vessel is to
blame for a collision with another vessel, the insurers undertake to pay three-fourths of the
damage sustained by the other vessel up to a maximum of three fourths of the value of the
insured vessel mentioned in the policy. Payments by the assured for cargo on this insured
vessel are excluded in view of the fact that shipowners are not responsible, under the bill of
lading terms, for the consequences of negligent navigation.As a rule, the remaining one-
fourth is covered by the P& I Club. If the “Running Down Clause” does make underwriters
liable for the full amount of damage, which may sometimes be arranged, it is known as
“4/4ths R.D.C.”.
(b)
SCOPIC Clause in a salvage agreement(SCOPIC has been explained in detail in a

previous answer for understanding, but since this is a very short question, it is hence
written in brief here).
"LOF provides a regime for determining the amount of remuneration to be awarded to

salvers for their services in saving property at sea and minimising or preventing damage to
the environment."
Article 14 of the 1989 Salvage Convention provided that salvers (Contractors) could receive
Special Compensation (i.e. their expenses plus a fair rate for tugs and equipment used in
salvage operations, which included saving the marine environment) in certain circumstances
where the salved fund was insufficient to allow them to recover adequate remuneration under
Article 13 of the Salvage Convention 1989.The SCOPIC Clause is meant to be an alternative
option for the contracting parties to agree to replace the salvage convention article 14 when
signing a Lloyd‟s open form salvage contract (LOF).
The SCOPIC clause (Special Compensation P&I Club) introduced a tariff to calculate the
Contractor's Special Compensation together with an uplift of expenditure fixed at 25%. Once
a SCOPIC clause is agreed between a contractor and a shipowner, the ship owner is entitled
to appoint a Shipowners' Casualty Representative (SCR) to attend the salvage operation and
work out the award subsequently.
(c)
Open cover in cargo insurance
Cargo insurance can be affected either on facultative basis or on open cover basis. First we
can see the respective concepts and features of these two different forms of cargo insurance.
Page 59
Facultative Insurance
“Facultative” according to the dictionary means the “right of option” as opposed to

“obligation”. It is used in marine insurance practice in regard to a proposal for insurance
where the insurer has the option to accept or reject the proposal by the assured. Generally, the
term “facultative” is applied to the effect of a specified insurance, sometimes called a “named
risk”, wherein the name of the carrying vessel, the goods to be insured and the voyage are all
clearly defined in the insurance contract. Thus, for every facultative insurance contract, the
assured and the insurer have to negotiate the specific terms, conditions and rates for every
single shipment.
Open Cover Insurance
As a contrast, open cover insurance is an obligatory contract binding both parties to its terms,
rates and conditions. It is a form of long term marine insurance contract whereby the
subscribing insurers guarantee to accept risks that are declared by the assured as they arise
during the duration of the marine insurance contract. The assured agrees to declare under the
open cover every risk coming within its scope in chronological order and not to place any of
these risks elsewhere should he find it advantageous so to do. Open cover insurance is mainly
used in cargo insurance, but it can also be used in hull insurance and liability insurance.
Page 60
November 2012
Page 61
Q.1 Define the following and explain as to how to plan and conduct passage in the
following waters, as stipulated in UNCLOS:
a) Archipelagic Waters b) International Straits c) Territorial sea
Answer
(a)
Archipelagic waters
(PLEASE DRAW THE DIAGRAM DONE IN CLASS)
The convention set the definition of Archipelagic States in Part IV, which also defines how
the state can draw its territorial borders. A baseline is drawn between the outermost points of
the outermost islands, subject to these points being sufficiently close to one another. All
waters inside this baseline are designated Archipelagic Waters. The state has full sovereignty
over these waters (like internal waters), but foreign vessels have right of innocent passage
through archipelagic waters (like territorial waters).
(b)
International Straits
The issue of passage through straits that are essentially used as through-routes between one
high seas area and another has been a longstanding navigational tension in the law of the sea.
Despite the availability of the innocent passage regime, maritime states argued that, because
of the international significance of these waters as major navigation routes between oceans
and seas, greater navigational freedoms should apply through these straits than in territorial
seas. In response the drafters created a new regime for international straits, contained in part
III of UNCLOS. UNCLOS recognizes four types of passage through straits.
First, the normal freedoms of navigation still apply through straits used for international
navigation that contain a high seas or EEZ corridor.
Second, the Convention does not affect longstanding legal regimes which control passage
through certain straits, such as the Turkish Straits of the Bosphorus and Dardanelles.
Third, the newly created right of transit passage applies in straits used for "international
navigation" which connect one part of the high seas or EEZ with another part of the high seas
or EEZ.
(c)
Territorial waters
Out to 12 nautical miles from the baseline, the coastal state is free to set laws, regulate use,
and use any resource because it enjoys Territorial Sovereignty.
Page 62
Q.2 a) What is the difference between Civil Liability Convention (CLC) and
fund Convention?
b) In 2002 amendments, CLC 92 and FUND 92 are incorporated in the M.S.
Act 1958, what additional benefits are available to the state?
Answer
(a)
PLEASE REFER TO THE EXPLANATION ON TIERS OF COMPENSATION

MECHANISM IN A PREVIOUS ANSWER – Q. 3 (b) of May 2012.
(b)
The Protocol of 1992 changed the entry into force requirements by reducing from six to four
the number of large tanker-owning countries that were needed for entry into force.
The compensation limits were set as follows:
 For a ship not exceeding 5,000 gross tonnage, liability is limited to 4.51 million SDR
 For a ship 5,000 to 140,000 gross tonnage: liability is limited to 4.51 million SDR
plus 631 SDR for each additional unit of tonnage
 For a ship over 140,000 gross tonnage: liability is limited to 89.77 million SDR.
The 1992 protocol also widened the scope of the Convention to cover pollution damage
caused in the exclusive economic zone (EEZ) or equivalent area of a State Party. The
Protocol covers pollution damage as before but environmental damage compensation is
limited to costs incurred for reasonable measures to reinstate the contaminated environment.
It also allows expenses incurred for preventive measures to be recovered even when no spill
of oil occurs, provided there was grave and imminent threat of pollution damage.
The Protocol also extended the Convention to cover spills from sea-going vessels constructed
or adapted to carry oil in bulk as cargo so that it applies apply to both laden and unladen
tankers, including spills of bunker oil from such ships.
Under the 1992 Protocol, a ship-owner cannot limit liability if it is proved that the pollution
damage resulted from the ship-owner's personal act or omission, committed with the intent to
cause such damage, or recklessly and with knowledge that such damage would probably
result.
Page 63
Q.3 With respect to charter parties describe:

a) Both to blame collision clause
b) New Jason clause
c) Cesser and lien clause
Answer
(a)
TO DO
(b)
Earlier, there was a Jason clause, which stated that provisions in a contract of carriage that
requires cargoowners to contribute in general-average even for an 'incident' caused by the
carrier's negligence.
New Jason Clause (or Amended Jason Clause)
 is required to protect owners against the possibility of US lawsuits.

 Under US common law, a ship-owner cannot claim General Average contributions
from cargo where there has been faulty navigation or management of the ship. The
owners will therefore seek to exonerate himself from liability for loss from these
causes. However, the Harter Act 1893 made it illegal to insert any clause in a bill of
lading exonerating the ship from liability for loss caused through negligence,
improper stowage, etc. Even so, a clause was commonly inserted in bills of lading
giving owners the right to claim General Average contributions from cargo.
 It has since been extended to include salvage, and is now called the New (or
Amended) Jason Clause and commonly inserted in bills of lading and charter parties.
(c)
Cesser and Lien Clause
Where the charterers are not the owners of the goods but are acting only as an agent or broker
for the loading of another party‟s goods, he will probably be anxious to ensure that his
liability for the cargo ceases once it is loaded.
This is usually expressed in a Cesser Clause stating that “...charterers‟ liability will cease on
shipment of cargo and payment of freight, dead freight and demurrage”, i.e. sums incurred at
the loading port. The ship-owner, however, will not want to find himself without a remedy
for any breach of contract or damage done to his vessel after the charterer‟s liability has
ceased, and will want legal recourse against another party, who will usually be the receiver of
the goods. Therefore, if a Cesser Clause is incorporated in the charter party, a Lien Clause
will also be included giving the owners the right to retain possession of the goods at the
discharge port until outstanding debts are paid.
The two clauses are often combined in a Cesser and Lien Clause. The relief given to the
charterers from their obligations only operates to the extent that outstanding sums can be
Page 64
recovered at the discharge port. The owners must proceed against the receiver first, but the
charterers will remain liable for sums which cannot be recovered from the receiver.
Q.4 a) What are the duties of the Salver, Master and Owner as per LOF?
b) What are the criteria for fixing the reward for salvage as per LOF-2000?
Answer
(a)
Duties of the salver and of the owner and master
The salver shall owe a duty to the owner of the vessel or other property in danger:
 to carry out the salvage operations with due care;

 in performing the duty specified in subparagraph (a), to exercise due care to
prevent or minimize damage to the environment;
 whenever circumstances reasonably require, to seek assistance from other
salvers; and
 to accept the intervention of other salvers when reasonably requested to do so by
the owner or master of the vessel or other property in danger; provided however
that the amount of his reward shall not be prejudiced should it be found that such
a request was unreasonable.
The owner and master of the vessel or the owner of other property in danger shall owe a
duty to the salver:
 to co-operate fully with him during the course of the salvage operations;
 in so doing, to exercise due care to prevent or minimize damage to the
environment; and
 when the vessel or other property has been brought to a place of safety, to accept
redelivery when reasonably requested by the salver to do so.
(b)
Criteria for fixing the reward
The reward shall be fixed with a view to encouraging salvage operations, taking into
account the following criteria without regard to the order in which they are presented
below:

 the skill and efforts of the salvers in preventing or minimizing damage to the
environment;
Page 65
 the availability and use of vessels or other equipment intended for salvage
operations;
 the state of readiness and efficiency of the salver's equipment and the value
thereof.
Payment of a reward fixed as above shall be made by all of the vessel and other property
interests in proportion to their respective salved values. However, a State Party may in
its national law provide that the payment of a reward has to be made by one of these
interests, subject to a right of recourse of this interest against the other interests for their
respective shares. Nothing in this article shall prevent any right of defence. The rewards,
exclusive of any interest and recoverable legal costs that may be payable thereon, shall
not exceed the salved value of the vessel and other property.
Q.5 With respect to carriage of goods by sea act (COGSA), briefly explain the
following:
a) Seaworthinessb) Bills of ladingc) Letter of Indemnity
d) Immunities enjoyed by the carrier e) Limitation of Liability
Answer
(a)
Seaworthiness as it relates to ocean carriage is one of the most important concepts in

admiralty law. Since the advent of shipping, cargo owners have been interested in having
their goods carried on seaworthy vessels. The same is true today. Although the word
"seaworthy" is hallowed by long by long usage, the legal problems associated with the term
are intricate and often complicated.Seaworthiness is a relative term. Its definition depends
upon its application to the type of vessel involved and the nature of the cargo carried on the
contemplated voyage. The vessel must be staunch, strong and well-equipped for the intended
voyage and manned by a competent crew and skilled master. Moreover, the vessel must be
capable of safely receiving the intended cargo and carrying it to destination in an undamaged
condition. Unless the vessel is reasonably fit to carry its cargo, it is unseaworthy. However,
the seaworthiness concept does not require the vessel to be fault-proof.
Under the general maritime law, the ship-owner's obligation to provide a seaworthy vessel is
absolute and non-delegable. It is also independent of the ship-owner's knowledge or intent.
Carriage of Goods by Sea Act (COGSA), when applicable to ocean carriage, has lessened the
ship-owner's seaworthiness obligation to that of using due diligence to furnish a seaworthy
vessel. These statutes relieve the ship-owner from liability without fault – meaning that he
has to be at fault with regard to seaworthiness of his ship.done to make the vessel
seaworthy?)
(b)
The bulk of maritime commercial activity involves carriage of goods. The most important
document used in this type of transaction is the bill of lading. A bill of lading is basically a
contract of carriage. Since ocean bills are negotiable, they control possession of the goods
and allow for the financing of the movement of merchandise and commodities around the
Page 66
world. The good faith purchaser of a bill of lading, or holder in due course, is given
privileged status.
Owners' basic obligations are very closely connected with the three functions of a negotiable
Bill of Lading (B/L), in particular as a:
 Receipt of the goods, which operates as prima facie evidence of the goods' quality and
condition
 Evidence of / being the contract of carriage, which gives to the parties of the sales
transaction rights against the carrier in regard to the safe carriage of the goods and
their delivery at destination
 Document of title which is subject to transfer and endorsement and gives a right to
demand delivery
(c)
In today's trading market, owners are frequently requested to accept a letter of indemnity
(LOI) in exchange for complying with charterers' or shipper's request to take on risks which
can fall outside the contractual demands normally placed on a carrier. These can also fall
outside the scope of standard insurance coverage, and hence deserve careful attention.It is
best to address these issues, if foreseeable, at the outset of the fixture, with suitable charter
terms and LOI templates included as an addendum to the charter-party.
Main types of LOI situations
Broadly speaking, LOIs can be distinguished between those related to shipment and those
related to discharge.
Shipment LOIs
In general terms, LOIs requested upon shipment are closely connected with a request to the
Master to issue a B/L that contains a representation, which was made knowingly or without
belief in its accuracy, about matters such as the nature, condition or quantity of the cargo –
BUT which are not correct.
Discharge LOIs
On the other hand, LOIs at discharge are usually related with a request to the Master to
deliver the goods in good faith without the production of the original Bs/L and/or at a port
other than the one stated on the B/L.
In a nutshell, what needs to be considered and carefully assessed when seeking to minimize
the risks related to LOIs is the creditworthiness of the issuer, the authority of the person
signing the LOI and at last but not least the prospects of enforceability.
(d)
Rights and immunities of carrier and ship
Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from un-
seaworthiness unless caused by want of due diligence on the part of the carrier to make the
Page 67
ship seaworthy, and to secure that the ship is properly manned, equipped, and supplied, and
to make the holds, refrigerating and cool chambers, and all other parts of the ship in which
goods are carried fit and safe for their reception, carriage, and persevered.Whenever loss or
damage has resulted from un-seaworthiness, the burden of proving the exercise of due
diligence shall be on the carrier or other persons claiming exemption.
Uncontrollable causes of loss
Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting
from:
 Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in
the navigation or in the management of the ship;
 Fire, unless caused by the actual fault or privity of the carrier;
 Perils, dangers, and accidents of the sea or other navigable waters;
 Act of God;
 Act of war;
 Act of public enemies;
 Arrest or restraint of princes, rulers, or people, or seizure under legal process;
 Quarantine restrictions;
 Act or omission of the shipper or owner of the goods, his agent or representative;
 Strikes or lockouts or stoppage or restraint of labour from whatever cause, whether
partial or general: Provided, That nothing herein contained shall be construed to
relieve a carrier from responsibility for the carrier‟s own acts;
 Riots and civil commotions;
 Saving or attempting to save life or property at sea;
 Wastage in bulk or weight or any other loss or damage arising from inherent defect,
quality, or vice of the goods;
 Insufficiency of packing;
 Insufficiency or inadequacy of marks;
 Latent defects not discoverable by due diligence; and
 Any other cause arising without the actual fault and privity of the carrier and without
the fault or neglect of the agents or servants of the carrier, but the burden of proof
shall be on the person claiming the benefit of this exception to show that neither the
actual fault or privity of the carrier nor the fault or neglect of the agents or servants of
the carrier contributed to the loss or damage.
Q.6 a) Explain the salient feature of ILO – 147 Minimum Standards convention.
b) As per MS Act 1958, when a CDC can be withdrawn from a seaman.
c) Explain the duties of a Master under MS Act when your vessel meets with
the major accident?
Answer
(a)
NOT ANSWERED AS IT IS NO LONGER APPLICABLE AFTER COMING INTO

FORCE OF MLC, 2006.
Page 68
(b)
Power to suspend deserter‟s certificate of discharge - If it is shown to the satisfaction of a

proper officer that a seaman has deserted his ship or has absented himself without leave and
without sufficient reason from his ship or from his duty, the proper officer shall forthwith
make a report to that effect to the Director General who may thereupon direct that the
seaman‟s certificate of discharge or continuous certificate of discharge shall be withheld for
such period as may be specified in the direction.
(c)
In every case of collision between two vessels, it is the duty of the master if and so far as he
can do without danger to his own vessel, crew or passengers:
 To render to the other vessel and its compliment such assistance as may be practical
and necessary to save them from danger caused by the collision, and to stay by the
other vessel until he has ascertained that she has no need of further assistance
 To give the master of the other vessel the name of his own vessel and of the port to
which she belongs, and the names of the ports from which she has come and to which
she is bound
 To make an official log book entry, which is to be signed additionally by the Mate
and one member of the crew
 The Master or the owner shall, within 24 hours after happening of the incident,
transmit to the central government or the nearest principal officer a report of the
accident and of the probable causes thereof stating the name of the ship, her official
number, her port of registry and the place where she is.
If the master fails without reasonable cause to comply with the above he is guilty of an
offence and liable to conviction on indictment to a fine and imprisonment. Further, in the
case of failure to exchange names, ports etc liable on conviction on indictment to a fine and
on summery conviction to a fine not exceeding the statutory maximum, and in either case if
he is a certified officer, and inquiry into his conduct may be held, and his certificate cancelled
or suspended.
It is emphasized that the master‟s statutory duties in case of collision must be carried out
whatever the circumstances of the collision may be. Even if one of the colliding ships is at
anchor or moored to a pier, the provisions of the Act shall apply.
Q.7 a) List and explain the principles of Marine Insurance.

b) Explain “Deductibles clause” Under Hull and Machinery Insurance.
Answer
(a)
A contract of marine insurance is therefore an agreement whereby the insurer undertakes to

indemnify the assured, in the manner and to the extent agreed, against losses incidental to
marine adventure. There is a marine adventure when any insurable property is exposed to
maritime perils i.e. perils consequent to navigation of the sea. The term 'perils of the sea'
refers only to accidents or causalities of the sea, and does not include the ordinary action of
Page 69
the winds and waves. Besides, maritime perils include, fire, war perils, pirates, seizures and
jettison, etc.
There are three fundamental principles common to all types of insurance must be discussed.
These are: insurable interest, indemnity and good faith.
Insurable Interest
Under this principle an assured can only recover under the policy if he has an insurable
interest in the subject matter of the insurance. In other words, a contract of insurance is
binding on the underwriter only if it is made to cover an interest, which the law declares to be
capable of being insured. This means that the assured usually holds or expects to acquire an
interest in the nature of property. Insurable interest is the case notably where in any marine
adventure, the assured benefits from the safety of the subject matter of insurance or suffers a
loss from its damage. Therefore, it is the responsibility of the assured to disclose all material
facts to show his insurable interest, otherwise it leads to misrepresentation, which is incorrect
statement about a material fact. Also, the assured must disclose to the insurer, before the
contract is concluded, every material circumstance which, is known to the assured, and the
assured is deemed to know every circumstance which, in the ordinary course of business,
ought to be known to him. If the assured fails to make such disclosure, the insurer may avoid
the contract. Every circumstance is material, which would influence the judgment of a
prudent insurer in fixing the premium, or determining whether he will take the risk.
Indemnity
Closely connected with the concept of insurable interest is the principle of indemnity,
under which the assured is entitled to be compensated precisely to the extent of the loss
he has suffered as a result of the occurrence of an event against which the insurer has
agreed to protect him. In other words, the assured is not permitted to make a profit on
the insurance.'
Utmost Good Faith
The principle of good faith is common to the entire law of contract, but the law of
insurance requires an even higher standard. This is necessary because of the special
circumstances prevailing in this trade, which put the insurer peculiarly at the mercy of
the assured. Under the general law no party to a contract must misrepresent essential
facts to the other party.
(b)
Deductible Clause
A deductible is a fixed amount or percentage of a marine insurance claim claim that is

the responsibility of the assured (ship owner), and which the insurance company will deduct
from the claim payment. Sometimes deductibles are voluntary (to qualify for a
lower premium rate) but usually they are imposed by the insurer to avoid paying a large
number of small claims. Sometimes, deductible in marine insurance can take the form of
exempting the insurer from paying an initial specified amount in the event that the insured
sustains a loss. For example, the Hull and Machinery policy covers for hull damage with a
Page 70
deductible of USD 500,000. Let us say, after a grounding the ship has to go to a dry-dock for
repairs. The total cost of repairs is USD 750,000. Then, in this case the insurer will be liable
to pay only USD 250,000 (USD 750,000 – USD 500,000) since USD 500,000 will be paid by
the assured (ship owner) as deductible. And, if the total cost of repair in this case happens to
be USD 400,000, then the insurer is NOT liable to pay anything because the repair amount is
less than the deductible and therefore WILL BE PAID IN FULL by the assured (ship owner).
The amount of deductible is decided at the time of forming the Hull and Machinery policy.
Q.8 What are the salient features of Oil Pollution Preparedness and Response
(OPRC) Convention & OPRC–HNS Protocol?
Answer
PLEASE REFER TO PREVIOUS ANSWER – Q. 3 (a) of May 2012; plus ADD the
following in the answer for OPRC-HNS Protocol.

1990 (OPRC) and was formally adopted by States already Party to the OPRC Convention at a
Diplomatic Conference held at IMO headquarters in London in March 2000. The Protocol
entered into force on 14 June 2007.

a) Notice of abandonment b) Notice of readiness
c) Note of Protest d) Un-seaworthy ship
Answer
TO BE TAKEN FROM ANSWERS ELSEWHERE
2
Page 71
JANUARY 2013
Page 72
Q.1 a) Discuss the evolution of classification and their contribution in making ships
that are Safe and environmental friendly.
b) Discuss the role of ports and coast guard in the capacity of coastal state authority
to regulate maritime traffic on the coast of India and protect Indian coast line
against pollution.
Answer
(a)
A classification society is a non-governmental organization that establishes and maintains

technical standards for the construction and operation of ships and offshore structures. The
society will also validate that construction is according to these standards and carry out
regular surveys in service to ensure compliance with the standards.
To avoid liability, they explicitly take no responsibility for the safety, fitness for purpose, or
seaworthiness of the ship. That is the responsibility of the Flag State by ensuring the
implementation of law (Conventions) on board the ships flying their flag.
In the second half of the 18th century, London merchants, ship-owners, and captains often
gathered at Edward Lloyds‟ coffee house to gossip and make deals including sharing the risks
and rewards of individual voyages. This became known as underwriting after the practice of
signing one's name to the bottom of a document pledging to make good a portion of the
losses if the ship didn‟t make it in return for a portion of the profits. It did not take long to
realize that the underwriters needed a way of assessing the quality of the ships that they were
being asked to insure. At that time, an attempt was made to classify the condition (that is how
the word, „Classification‟ was formed) of each ship on an annual basis. The condition of the
hull was classified A, E, I, O or U, according to the state of its construction and its adjudged
continuing soundness (or lack thereof). Equipment was G, M, or B: simply, good, middling
or bad. In time, G, M and B were replaced by 1, 2 and 3, which is the origin of the well-
known expression 'A1', meaning 'first or highest class'. The purpose of this system was not to
assess safety, fitness for purpose or seaworthiness of the ship. It was to evaluate risk.
Contribution in making ships safe and environment friendly
The classification process consists of:
 A technical review of the design plans and related documents for a new vessel to
verify compliance with the applicable Rules;
 Attendance at the construction of the vessel in the shipyard by a Classification Society
surveyor(s) to verify that the vessel is constructed in accordance with the approved
design plans and classification Rules;
 Attendance by a Classification Society surveyor(s) at the relevant production facilities
that provide key components such as the steel, engine, generators and castings to
verify that the component conforms to the applicable Rule requirements;
 Attendance by a Classification Society surveyor(s) at the sea trials and other trials
relating to the vessel and its equipment prior to delivery to verify conformance with
the applicable Rule requirements;
Page 73
 Upon satisfactory completion of the above, the builder‟s/ship-owner‟s request for the
issuance of a class certificate will be considered by the relevant Classification Society
and, if deemed satisfactory, the assignment of class may be approved and a certificate
of classification issued;
 Once in service, the owner must submit the vessel to a clearly specified programme of
periodical class surveys, carried out onboard the vessel, to verify that the ship
continues to meet the relevant Rule requirements for continuation of class.
(b)
It is the duty of the Indian Coast Guard to protect by such measures, as it thinks fit, the
maritime and other national interests of India in the maritime zones of India. They do so by:
 ensuring the safety and protection of artificial islands, offshore terminals, installations
and other structures and devices in any maritime zone;
 providing protection to fishermen including assistance to them at sea while in distress;
 taking such measures as are necessary to preserve and protect the
maritime environment and to prevent and control marine pollution;
 assisting the customs and other authorities in anti-smuggling operations;
 enforcing the provisions of such enactments as are for the time being in force in the
maritime zones; and
 such other matters, including measures for the safety of life and property at sea and
collection of scientific data, as may be prescribed.
Q.2Explain the following amendments in respect of:

a)Goal based ship construction standards, testing of AIS, pilot transfer arrangements
and life boat on load release mechanisms – 2010 and 2011 amendments of SOLAS, 1974.
b)Energy efficiency measures and emissions control – 2011 amendments to MARPOL,
73/78 Annex – VI.
Answer
(a)
 Amendments to SOLAS regulation V/18 to require annual testing of automatic

identification systems (AIS)
 Amendments to SOLAS regulation V/23 on pilot transfer arrangements, to update and
to improve safety aspects for pilot transfer.
 Amendments to safety certificates in the SOLAS appendix and SOLAS Protocol of
1988, relating to references to alternative design and arrangements.
 A new paragraph 5 of SOLAS regulation III/1 is added to require lifeboat on-load
release mechanisms not complying with new International Life-Saving Appliances
(LSA) Code requirements to be replaced no later than the first scheduled dry-docking
of the ship after 1 July 2014 but, in any case, not later than 1 July 2019.
 The SOLAS amendment is intended to establish new, stricter, safety standards for
lifeboat release and retrieval systems, aimed at preventing accidents during lifeboat
launching, and will require the assessment and possible replacement of a large
number of lifeboat release hooks.
Page 74
(b)
1 August 2012: Effective date for North American ECA North American Emission Control
Area (SOx, and NOx and PM) becomes effective, under MARPOL Annex VI.
1 January 2013: entry into force of July 2011 amendments to MARPOL Annex VI energy
efficiency Annex VI emissions. Amendments to MARPOL Annex VI Regulations for the
prevention of air pollution from ships to designate certain waters adjacent to the coasts of
Puerto Rico (United States) and the Virgin Islands (United States) as an ECA for the control
of emissions of nitrogen oxides (NOX), sulphur oxides (SOX), and particulate matter under.
Another amendment makes old steamships exempt from the requirements on sulphur relating
to both the North American and United States Caribbean Sea ECAs. The new ECA takes
effect 12 months after entry into force.
1 January 2014: United States Caribbean ECA becomes effective

United States Caribbean Sea Emission Control Area (SOx, NOx and PM) becomes effective,
under MARPOL Annex VI.
Q.3 Describe the purpose and contents of the following certificates with regards to
the statutory provisions of Merchant Shipping Act 1958.
a) Certificate A for special trade passenger ships.
b) Certificate B for special trade passenger ships.
c) Safety Certificates in respect of Cargo Ships.
Answer
(a)
PLEASE REFER TO PREVIOUS ANSWER – Q. 4 (b) of August 2012.
(b)
PLEASE REFER TO PREVIOUS ANSWER – Q. 4 (b) of August 2012.
(c)
Part IX of the Merchant Shipping Act 1958 deals with the provisions relating to Safety
This part gives the provisions relating to construction rules for ships, prevention of collisions,
life saving appliances and fire appliances, installation of radio telegraphy radio telephony and
direction finders, signalling lamp and provisions relating to stability information. The part
also deals with the provisions relating to Safety Certificates, Safety equipment certificates,
Safety radio telegraphy Certificates, exemption certificates, etc., provision for determining
load lines, issue of load line certificates and special provisions as to ships other than Indian
ships.
Page 75
No sea-going Indian cargo ship, of five hundred tons gross or more, shall proceed on a
voyage from any place in India to any place outside India unless there is in force in respect of
the ship:
 a cargo ship safety construction certificate, a cargo ship safety equipment certificate
and a cargo ship safety radio certificate;
 A qualified cargo ship safety equipment certificate, which is issued by the terms that
are applicable to the voyage on which the ship is about to proceed and to the trade in
which she is for the time being engaged. No sea-going Indian cargo ship, less than
five hundred tons gross, shall proceed on a voyage from any port or place in India to
any part or place in India or to any port or place outside India unless there is in force
in respect of the ship a cargo ship construction certificate and a cargo ship equipment
certificate issued under section 300 and:
 a cargo ship safety radio certificate if the ship is three hundred tons gross or more;
 a cargo ship safety radio certificate if the ship is operating within ports or places in
India and is of three hundred to five hundred tons gross; or
 A cargo ship radio certificate if the ship is less than three hundred tons gross.
No sea-going Indian cargo ship of five hundred tons gross or more shall proceed on a voyage
between ports or places in India unless there is in force in respect of the ship:
 a cargo ship safety construction certificate or cargo ship construction certificate;

 a cargo ship equipment certificate;
 A cargo ship safety radio certificate if the ship operates between ports or places in
India and is between five hundred to three thousand tons gross being a certificate
which by the terms is applicable to the voyage on which the ship is about to proceed
and to the trade in which she is for the time being engaged.
The master of every ship shall produce to the customs collector from whom a port clearance
for the ship is demanded the certificate or certificates required as above and to be in force
when the ship proceeds to sea, and the port clearance shall not be granted and the ship may be
detained until the said certificate or certificates are so produced.
Q.4 a) Explain the principle of General Average, which all expenses and/or sacrifices
are recoverable under General average?
b) State the limits of liability for payment of compensation under CLC 1992 and
Fund 1992 conventions.
Answer
(a)
PLEASE REFER TO PREVIOUS ANSWER – Q. 9 (a) of May 2013.
(b)
Q.5 Write short notes on following as per Maritime Labour Convention, 2006:
Page 76
a) Terms of employment
b) Provisions for social security protection.
c) Responsibilities of Labour – supply nations.
Answer
(a)
Terms of employment, as per MLC, 2006, deals with Seafarers‟ Employment Agreements
(SEA). The MLC, 2006 defines a SEA as including both a contract of employment and
articles of agreement. This definition is an inclusive definition that covers various legal
systems and practices and formats. In simple terms then, the SEA is a clear written legally
enforceable agreement that must be consistent with the standards set out in the mandatory
Code A of MLC. Also, MLC requires that the ship-owner and seafarer concerned each have a
signed original of the seafarer‟s employment agreement.It is important to note that the SEA is
a contractual agreement between an individual seafarer and the ship-owner. Therefore MLC
requires that there should be one named body – the “ship-owner” who has ultimate
responsibility for all aspects of the working and living conditions of all “seafarers” employed
on-board a ship to which the MLC applies irrespective of who may actually employ them
(meaning a „manning agency‟). The SEA requires that terms and conditions of the seafarer‟s
employment must be in writing and both the seafarer and the ship-owner must have an
original SEA, signed by the seafarer and by the ship-owner. It is therefore the responsibility
of the ship-owner to ensure that each seafarer has an opportunity to examine the SEA and
seek advice before signing it, in order to ensure that all seafarers signing employment
agreements do so of their own volition and with a sufficient understanding of their rights and
responsibilities under the agreement.
Probably, the most important aspect of the SEA is that it is the responsibility of the ship-
owner to inform seafarers of their rights and duties under their employment agreement prior
to or in the process of engagement.
(b)
Provisions of Social Security
We first need to understand, what is social security? The notion of social security as it is
commonly used within the ILO, covers all measures providing benefits, whether in cash or in
kind, to secure protection, among other things, from lack of or insufficient work-related
income caused by sickness, disability, maternity, employment injury, unemployment, old age,
or death of a family member; lack of access or unaffordable access to health care; insufficient
family support, particularly for children and adult dependants; general poverty and social
exclusion. Social security schemes can be of a contributory (social insurance) or non-
contributory nature. This therefore basically deals with the levels of compensation in the
unfortunate event of injury or death. To that affect, it is required that each Flag State shall
ensure that all seafarers and, to the extent provided for in its national law, their dependants
have access to social security protection; take steps, according to its national circumstances,
individually and through international cooperation, to achieve progressively comprehensive
social security protection for seafarers and, ensure that seafarers who are subject to its social
security legislation, and, to the extent provided for in its national law, their dependants, are
Page 77
entitled to beneﬁt from social security protection no less favourable than that enjoyed by
shore workers.
The MLC, 2006 requires that all seafarers be provided with social protection. This covers a
number of complementary requirements including prevention based approaches in connection
with occupational safety and health, medical examinations, hours of work and rest and
catering.
(c)
Responsibilities of Labour-Supplying Countries
These responsibilities include the regulation of seafarer recruitment and placement services
and the provision of social security. The main requirements are that:
 the country must establish an effective inspection and monitoring system for
enforcing its labour-supplying responsibilities, particularly those regarding the
recruitment and placement of seafarers;
 the country must also implement social responsibilities for seafarers that are its
nationals or residents or are otherwise domiciled in its territory;
 the country must report on its system for enforcing these obligations in its report to
the ILO.
Q.6 State the provision of Merchant Shipping Act, 1958 relating to:
a) Custody and use of Certificate of Registry (Section 35)
b) Delivery of Certificate of Registry of ship lost (section 39)
c) Agreement with crew on Indian ship (section 100)
Answer
(a)
Custody and use of certificate of Registry

The certificate of registry shall be used only for the lawful navigation of the ship, and shall
not be used for detention, lien, and charge of interest whatever, claimed by any owner,
mortgagee or other person to, on or in the ship – meaning that no person has the authority to
remove the certificate of registry from the ship.
No person, whether interested in the ship or not, who has in his possession or under his
control the certificate of registry of a ship, shall refuse to deliver such certificate on demand
to the person entitled to the custody of the certificate of registry for the purposes of the lawful
navigation of the ship or to any registrar, customs collector or other person entitled by law to
require such delivery.
If the master or owner of an Indian ship uses or attempts to use for her navigation a certificate
of registry not legally granted in respect of the ship (meaning a fraudulent certificate of
registry), he shall be guilty of an offence and the ship shall be liable to a penalty.
Page 78
In the event of a registered ship being either actually or constructively lost, taken by the
enemy, burnt or broken up or ceasing for any reason to be an Indian ship, every owner of the
ship shall immediately on obtaining knowledge of the event, give notice to the registrar of
Indian ships at her port of registry of the loss.
(c)
Agreements with crew on Indian ships
Agreements with crew - The master of every Indian ship, except a home- trade ship of less
than two hundred tons gross, shall enter into an agreement (in this Act called the agreement
with the crew) in accordance with MSA, 1958 Act with every seaman whom he engages in,
and carries to sea as one of his crew from, any port in India.
Q. 7 (a) Differentiate between voyage and time charter-parties.
(b) Describe the documentary system of credit and its advantages / disadvantages
to buyer and seller.
Answer
(a)
Time Charter Party
A Time Charter Party typically has the following key characteristics:
 The ship-owner is responsible for providing a seaworthy ship with valid

classification, and a master and crew, so that the ship can be sailed
safely to its final destination.
 The charterer is responsible for loading, stowing, and discharging cargo
safely.
 The charterer is responsible for giving the master effective orders and
instructions with regard to when and where the cargo should be shipped.
 The charterer is responsible for providing fuel for the vessel.
Various forms of Time Charter Party exist, but the two most commonly used
for dry cargo are the Baltime and the New York Produce Exchange (NYPE)
Charter Parties. The Baltime is often considered to favour ship-owners, while
the NYPE is considered more advantageous for charterers. Charter Parties for
tankers have the same main characteristics.
Voyage Charter Party
Voyage Charter Parties generally contain the following key agreements:
 The type of cargo to be carried is agreed in advance.
Page 79
 The ports to be visited are agreed in advance.

 It is the responsibility of the ship-owner, not the charterer, to give
instructions to the master.
 If liner terms (e.g., an inclusive freight rate) have been agreed, it is the
ship-owner who takes responsibility for the loading, stowage and
discharge of cargo.
 If FIOS terms have been agreed, it is the charterer who takes
responsibility for the loading, stowage and discharge of cargo.
(b)
Documentary credit system
The documentary credit system is a separate transaction from the sale of the goods and also
separate from the contract of carriage. However, the system influences the bill of lading,
which is used in the contract of carriage.
In the sale of goods sellers may hesitate to release their goods before receiving payment and
buyers may prefer to receive the goods (for example, to inspect that the goods match the
description) or have control over them (for example, to sell them to another party) before
making payment. However, matching payment with physical delivery is not always possible.
A compromise is agreed whereby payment will be made when documents representing the
goods are handed over. This handing over of the documents is called "constructive delivery".
The documents include "transport documents" which include marine bills of lading. The
documents transfer title to the goods to the person who may eventually be the buyer. The
holder of the documents then has some control over them.
This is where the documentary system of credit comes in. The documentary credit system is
one that is controlled by banks, which provide finance for buying and selling goods. These
phrases refer to any arrangement in which a person (usually the buyer) makes application to
the bank for a documentary credit and furnishes precise instructions as to how and when the
bank should arrange for payment to a third party generally the seller. The bank (called the
"issuing bank"), can authorise another bank to make the payment to the third parry against
stipulated documents, provided that the terms and conditions of the credit (generally the
buyer's instructions) are complied with. The third party is called the "beneficiary". The other
bank is called the "advising bank" because this bank will advise the beneficiary about the
credit and what documents should be produced before payment. In the system, the issuing
bank can also make the payment either directly or through a branch.
Q. 8 Explain the following, relating to a charter-party:

(a) Signing of Bill of Lading after completion of loading.
(b) “Safe berth, always afloat”.
(c) Safe port.
Answer
(a)
The following points to be considered in advance of signing bills of lading:
Page 80
One of the most important aspects of fulfilling these obligations is the inspection of the cargo
at the time of loading:
 The provisions of the Hague/Hague-Visby Rules place obligations to:

 inspect the cargo‟s apparent order and condition to enable the Master to ensure that
the bill of lading is accurate in its description of these items
 inspect the cargo‟s marks (to identify the goods), and number, quantity or weight as
the case may be, to enable the Master to ensure that the bill of lading is accurate in its
description of these items, unless there are no reasonable means of inspecting the
cargo.
 Every effort should be made to enquire at the load port about the cargo, e.g. where it
comes from, how old it is, how it has been stored ashore and how it is to be
transported to the ship. It is advisable to keep a written note of such enquiries and
information obtained.
(b)
Always Afloat is a contract term requiring that the vessel not rest on the ground. In some
ports the ship is aground when approaching or at berth. In order to prevent a vessel from
being ordered to proceed to a berth where she cannot load or discharge without touching the
ground or a berth which can only be reached safely after discharging part of the cargo into
lighters or which can only be reached on spring tidal conditions, the so-called "always safely
afloat clause" is inserted in the charter-party. This clause may read as follows:
“ . . . the vessel shall proceed to . . . or so near thereto as she may safely get and lie afloat . . .
and being so loaded the vessel shall proceed to . . . or so near thereto as she tray safely get
and lie always afloat there deliver the cargo, . . ."
In some ports where the bottom consists of soft mud, it may be agreed that the vessel may lie
safely aground at low tide that is "Not always afloat but safely aground" (NAABSA).
(c)
Definition of a safe port
The classic explanation of a „safe port‟ can be given as - "A port will not be safe unless, in the
relevant period of time, a particular ship can reach it, use it and return from it without, in the
absence of some abnormal occurrence, being exposed to danger which cannot be avoided by
good navigation and seamanship".
The charterers‟ obligation is to nominate a port which, when the order is given, is
prospectively safe. In other words the port must be likely, subject to the occurrence of
abnormal and unexpected circumstances, to be safe at the time of the vessel‟s arrival.
It is important to determine whether there is a warranty as to safety of a port in a charter-

party. For example, a warranty in this regard can be that the charterers shall exercise due
diligence to ensure that the vessel is only employed between and at safe ports, places, berths,
docks, anchorages where she can also lie safely afloat. But this does NOT mean that the , but
the Charterers shall not be required to authorise the safety of any port, place, berth, dock,
Page 81
anchorage and therefore shall be under no liability in this respect except for loss or damage
caused to the ship by their failure to exercise due diligence. In the context, the "due
diligence" obligation merely requires the charterers to display "reasonable care" and that they
would be considered successful in discharging this duty if "a reasonably careful charterer
would, on the facts known, have concluded that the port was prospectively safe".
Q. 9 With reference to Indian Marine Insurance Act, 1963, write short notes on the
following:
(a) Utmost Good Faith (b) Constructive Total Loss
(c) Floating Policy (d) Subrogation
Answer
DONE ELSEWHERE – TO REFER ACCORDINGLY
Page 82
FEBRUARY 2013 - 1
Page 83
Q.1 Under the UNCLOS, describe the conditions under which foreign flag vessels
will have the right of innocent passage through territorial waters of the coastal
state.
Answer
AS PER THE SPECIFIC ANSWER GIVEN IN THE CLASS – HENCE NOT

REPEATED HERE
Q.2 Explain the following with respect to relevant conventions.

a) Principles of safe manning
b) Obligations of Master as per Chapter V of SOLAS.
c) State the Master‟s Discretion under Chapter V of SOLAS.
Answer
(a)
 The Safe Manningplaces clear responsibilities on ship-owners to ensure that their

ships are manned with personnel of appropriate grades who have been properly
trained and certificated. Regulation 14 of Chapter V SOLAS lays down specific
requirements for safe manning in order to ensure navigational safety. The numbers of
certificated officers and certificated and non-certificated ratings must be sufficient to
ensure safe and efficient operation of the ship at all times. Regulation 14 of SOLAS
Chapter V states that all ships to which SOLAS Chapter I applies, (i.e. ships on
international voyages - cargo ships of 500 GT or more and all passenger ships,) are
required to hold a safe manning document.
 The ship-owner or operator is required to make an assessment of the numbers and
grades of personnel necessary for safe operation. These should be sufficient to ensure
that:
 the required watch-keeping standard can be maintained and that personnel are
able to obtain sufficient rest;
 personnel are not required to work more hours than is safe in relation to the
safety of the ship;
 the master and seamen can perform their duties in accordance with the
framework of operational guidance in section A-VIII of the STCW Code;
 the master and seamen are not required to work such hours or under such
conditions which may be injurious to their health and safety.
 Proposals based on the assessment should be submitted to the Maritime Flag
State, which when satisfied that the proposed manning levels are adequate,
will issue a safe manning certificate. This should be kept on board and be
available for inspection whenever required by an authorised person.
Page 84
(b)
SOLAS Chapter V - Safety of Navigation; Regulation 33 - obligations and procedures
The master of a ship at sea which is in a position to be able to provide assistance, on

receiving information from any sourcethat persons are in distress at sea, is bound to proceed
with allspeed to their assistance, if possible informing them or the searchand rescue service
that the ship is doing so. This obligation to provide assistance applies regardless of the
nationality or statusof such persons or the circumstances in which they are found. If the ship
receiving the distress alert is unable or, in the specialcircumstances of the case, considers it
unreasonable or unnecessary to proceed to their assistance, the master must enter in the log-
book the reason for failing to proceed to the assistanceof the persons in distress, is to inform
the appropriatesearch and rescue service accordingly.
(c)
Master‟s Discretion
The owner, the charterer, the company operating the ship as defined in regulation IX/1, or
any other person shall not prevent or restrict the master of the ship from taking or executing
any decision which, in the master's professional judgement, is necessary for safety of life at
sea and protection of the marine environment. This regulation ensures the master has absolute
discretion to take decisions in the interests of safety of life at sea and or protection of the
marine environment. The word "Company" is as defined in SOLAS: "Company" meaning the
owner of the ship or any other organization or person such as the manager, or the bareboat
charterer, who has assumed the responsibility for operation of the ship and who on assuming
such responsibility has agreed to take over all the duties and responsibilities. This is based on
a new regulation, effective 1st July 2006 regarding the Master's Discretion and is based on
IMO Resolution MSC.153(78).
Q.3 Write short notes on any two of the following:

a) OPRC Convention
b) Intervention Convention
c) Fund Convention
Answer
(a)
PLEASE REFER TO PREVIOUS ANSWER – Q. 3 (a) of July 2012.
(b)
Page 85
(c)
Q.4 Distinguish between the following:

a) Particular average and General average
b) Conditions and warranties
c) Convention and a Protocol
d) Actual discharge and probable discharge as per MARPOL.
Answer
(a)
(b)
(c)
PLEASE REFER TO PREVIOUS ANSWER – Q. 8 (d) of August 2012.
(d)
It is important to note that the differentiation is made for the purpose of making the specific
report to the shore authorities in order for them to take the necessary action to minimise the
damage to the marine environment.
Actual Discharge
An initial incident report to the nearest coastal State is required whenever there is:
 a discharge (actual) of oil above the permitted level for whatever reason, including
those for the purpose of securing the safety of a ship or saving life at sea; or
 a discharge during the operation of the ship a discharge of oil in excess of the quantity
or instantaneous rate permitted under the present Convention or applicable marine
pollution regulations.
Probable Discharge
Although an actual discharge may not have occurred, an initial incident report is required if
there is the probability of a discharge. In judging whether there is such a probability, and
thus, whether a report must be made, the following factors should be taken into account:
 the nature of damage sustained by the ship;
Page 86
 failure or breakdown of machinery or equipment, which may adversely affect the

ability of the ship to manoeuvre;
 the location of the ship and its proximity to land or other navigational hazards;
 present weather, tide, current and sea state;
 expected weather conditions;
 traffic density;
 morale, health and ability of the crew on board to deal with the situation.
Q.5 Describe the conditions of employment of seafarers as laid down in Maritime

Labour Convention 2006.
Answer
PLEASE REFER TO PREVIOUS ANSWER – Q. 5 (a) of January 2013.
Q.6 Explain the procedures, including documents required for obtaining:

a) Free Pratique b) Clearance Inward c) Port Clearance
Answer
(a)
Pratique is the license given to a ship to enter port on assurance from the captain to convince
the authorities that she is free from contagious disease. The clearance granted is commonly
referred to as Free Pratique. A ship can signal a request for "Pratique" by flying a solid
yellow square-shaped flag. This yellow flag is the Q flag in the set of International maritime
signal flags.
Since flying the Q flag involves a request for boarding by Port State Control, it has also
become an invitation to Customs to inspect a vessel for dutiable goods or contraband.
Certificate of free pratique - This is a certificate from the port-health-authorities that the ship
is without infectious disease or plague on board and therefore permitted to enter port and to
allow people to board and disembark. One of the conditions that must be met before a ship is
considered to be "ready" to load or discharge and thus to allow lay-time to commence is that
it must be "legally ready". This includes permission from the port health authorities. In the
old days (and perhaps in some ports even today) permission could be obtained by a lengthy
process at the "quarantine anchorage" or similar waiting place in the port or even at the berth
while waiting for the port officials to come on board. This led to delay and the master could
not give notice of readiness thus being under pressure for the counting of lay-time. Now, free
pratique can be obtained in advance of the ship's arrival, by the port agent, and communicated
to the ship by telecommunication (sometimes called "Radio free pratique"). When the vessel
arrives, the master may have to prepare and issue a "Maritime Declaration of Health".
(b)
Inward Clearance- Operation performed for the vessels stayin port limits for more than 48
hours. To initiate inward clearance operations, application letters requesting “inward
Page 87
clearance” should be sent, for example, to customs headquarter in the port, the directorate of
Health etc.. Officers from above mentioned official bodies and Agent‟s Representative comes
on board for the required inward clearance operations to be performed. Agent‟s
representative‟s existence is 100% required for the communication between crew and the
officers in order to overcome any language barriers.
Q.7 Discuss the statutory obligations of ship master as per M.S. Act 1958.
a) To render assistance to a vessel in distress; and
b) In the event of collision with another vessel in high seas.
Answer
Q.8 a) List and briefly explain the functions of a Bill of Landing

b) What precautions are to be taken when an original Bill of lading is
carried on board and delivery is made against the same?
c) “Bill of lading is to be signed as presented” – is the term stipulated in the
charter party. What do you understand by this?
Answer
(a)
A Bill of Lading is a legal document between the shipper of a particular good and the carrier
detailing the type, quantity and destination of the good being carried. The bill of lading also
serves as a receipt of shipment when the good is delivered to the predetermined destination.
This document must accompany the shipped goods, no matter the form of transportation, and
must be signed by an authorized representative from the carrier, shipper and receiver.
There are several types of Bills of Lading, each of which serves a different function. Because
of this range of functionality, it's important to understand how each works to identify the
right document for your needs.In general, a bill's consignment is the key to understanding
how it works. The most common type of Bill of Lading is known as a «To Order» Bill-is
consigned «To Order» or «To Bearer» and is therefore a negotiable document that confers
title (meaning, whosoever holds the B/L can take the delivery of cargo at the destination
port). Whereas, a «Straight» Bill of Lading is consigned to a named consignee, and is
therefore non-negotiable under the law.
Therefore, a Bill of Lading serves the following five main business purposes:
1) A document of title representing ownership.

2) A negotiable document to be exchanged for money.
3) A contract of carriage between the carrier and the cargo owner.
4) A receipt by the carrier for the cargo.
5) An invoice from the carrier.
Page 88
(b)
The bill of lading (B/L) is the "key" to the goods. Once the master has issued a negotiable bill
of lading (B/L), he has imposed on the ship-owner a contractual obligation to deliver the
cargo to any person to whom that bill of lading (B/L) is negotiated and a corresponding duty
not to deliver the goods without its presentation. This contractual obligation is enforceable by
the holder of the bill of lading (B/L).
When an original bill of lading is carried on board,whether it is the only original or one of a
set of originals,the utmost care must be taken by the Master to correctly identify the party to
whom the bill of lading should be handed over at destination. Failure to hand the bill of
lading to the right party could also result in a claim for mis-delivery of the cargo.
However, It is nowadays unusual for an original bill of lading to be available for presentation
at the discharge port. This is not (of course) because communications in general have slowed
down; it is because very many cargoes are now traded while in transit - not just once or twice
but in some cases more than a hundred times. Since most such trades will require to be
financed through banks, and on credit terms for at least one party, it often becomes
impossible for an original bill to be available at the discharge port. The right and duty of the
master to deliver the cargo to the first person to present an original bill of lading at the
discharge port is a basic principle of maritime law, but it has little contact with reality in
modern trading conditions.
(c)
The Hague-Visby Rules require that, after receiving the cargo, the carrier or his master or
agent must on the shipper's demand issue to that shipper a bill of lading. More detailed
provisions relating to the ship-owner‟s obligations with respect to issuing bill of lading (B/L)
will be set out in the charter-party.
This obligation to sign bills of lading (B/Ls) “as presented” relates to the form of the bill of
lading (B/L), not the facts it states: it neither requiresnor ignores the signing of bills of lading
(B/Ls) which are inaccurate. A carrier cannot, for example, be obliged to sign a B/L which
misstates the quantity or quality of the cargo.
The charterer‟s right to direct the form and content of the bill of lading (B/L) is balanced by
the indemnity included in the charter-party by which the charterer agrees to indemnify the
ship-owner “against all liabilities that may arise from signing the bills of lading in accordance
with the directions of Charterers to the extent that such bills of lading impose more difficult
liabilities than those assumed by Owners under the terms of this Charter”.
Q.9 Explain the following terms as used in marine insurance:

a) Perils of the seas b) Sue and Labour
c) Subrogation d) Deviation
Answer
Page 89
FEBRUARY 2013 – 2
Page 90
Q.1 Under the voyage charter

a) When is a vessel “Ready to load all respect”?
b) When is a vessel considered “Arrived”? Explain the differences between a
Voyage Charter and Contract of Affreightment (COA).
Answer
(a)
(b)
When is a vessel arrived?
Under the English common law system, arrival of vessel is one of two prerequisites for lay-
time to be started. The answer of the question “when the vessel is arrived” is to be relied
upon whether the charter-party is a port or berth charter-party. If it is a berth charter-party,
the vessel is deemed to be arrived when it is at berth. As far as the commercial interests of the
parties are concerned, charterer is in a better position as opposed to owner, as the vessel is to
be arrived later. It shall therefore consequence that the lay-time starts running later and lapses
later. On the other hand, the owner is in a better position under a port charter-party, since the
port is a large area, that is to say, the vessel is likely to be arrived at the port sooner rather
than later. The tests of the arrival of the vessel under a port charter-party are clarified as
follows - the vessel must be within the geographical and legal area in which the port has
control; it must be at the charterer‟s immediate disposes; it could be a usual waiting area.
Q.2 Under a Time Charter, Explain the following classes
a) Safe berth and NAABSA

b) Indemnity clause
What are the main differences between a T/C and Bareboat Charter?
Answer
(a)
(b)
Indemnity Clause
The structure of responsibility under a time charter is that matters of seaworthiness and
navigation aside, the Charterers are responsible for and obliged to indemnify the ship-owner
for loss caused by the employment or by Charterers instructions. An explanation of the basis
of the implied indemnity - under a time charter-party the ship-owner puts the vessel at the
Page 91
disposal of the charterer, who can choose for himself what cargo he shall load and where he
shall send the ship, provided that the limits prescribed by the contract are not exceeded.
When deciding who has to bear the consequence of a choice being made in one way rather
than the other, it is reasonable to assume that the consequences shall fall upon the person who
made the choice, for it is the charterer who had the opportunity to decide upon the wisdom of
the selection he makes.
There are a number of explanations by which an implied indemnity can arise under the
Indemnity Clause. For example:
 An implied indemnity (guarantee by the charterer) arising for the ship owner to be
indemnified (protected) against the consequences of complying with Charterers'
orders for employment of the vessel e.g. the consequences of the carriage of a
particular cargo.
 An implied indemnity that the terms imposed on the ship owner by any bills of lading
issued by the Charterers will be on stricter than the Owners' obligations under the
charter-party.
 An implied indemnity arising from ship owner‟s compliance with Charterers' request
to deliver cargo without presentation of a bill of lading.
Differences between a T/C and Bareboat Charter
A bareboat charter is an arrangement for the chartering or hiring of a ship or boat, whereby
no crew or provisions are included as part of the agreement; instead, the people who rent the
vessel (charterer) from the owner are responsible for taking care of such things.
There are legal differences between a bareboat charter and other types of charter
arrangements, commonly called time or voyage charters. In a voyage or time charter, the
charterer charters the ship (or part of it) for a particular voyage or for a set period of time. In
these charters the charterer can direct where the ship will go but the owner of the ship retains
possession of the ship through its employment of the master and crew. In a bare-boat on the
other hand, the owner gives possession of the ship to the charterer and the charterer hires its
own master and crew. The bare-boat charterer is sometimes called a "deponent owner". The
giving up of possession of the ship by the owner is the defining characteristic of a bareboat.
In a bareboat charter no administration or technical maintenance is included as part of the

agreement. The charterer obtains possession and full control of the vessel along with the legal
and financial responsibility for it. The charterer pays for all operating expenses, including
fuel, crew, port expenses and P&I and hull insurance.
Page 92
Q.3 Under M.S. Act how does the vessel deal with following situations:
a) Complaints by crew of provisions and water
b) Seamen expires in a foreign port
c) Dispute between two seamen
Answer
(a)
TO FIGURE OUT
(b)
Seaman expires in a foreign port
Property of deceased seaman left abroad but not on board ship - If any seaman or apprentice
on an Indian ship, or engaged in India on any other ship, the voyage of which is to terminate
in India, dies at any place outside India leaving any money or effects not on board the ship,
the Indian consular officer at or near the place shall claim and take charge of such money and
other effects (it will thereafter be referred to as the property of a deceased seaman or
apprentice).
(c)
Power to refer disputes between seamen and their employers to tribunals
 Where the Central Government is of opinion that any dispute between seamen or any
class of seamen or of any union of seamen and the owners of ships in which such
seamen are employed, the Central Government may, constitute a tribunal consisting
of one or more persons, and refer the dispute to the tribunal for negotiation and
settlement.
 The tribunal so constituted shall have power to regulate its own procedure and shall
have the same powers in respect of the following matters:
 enforcing the attendance of any person and examining him on oath;
 compelling the production of documents;
 issuing commissions for the examination of witnesses;
 No party to a dispute shall be entitled to be represented by a legal practitioner
(lawyer) in any proceeding before the tribunal except with the consent of the other
party or parties to the proceedings and with the leave of the tribunal. The punishment
will be enforceable and shall be binding on all the seamen and the ship owner
involved in the dispute, as well as any money due to a seaman from the owner of a
ship under an award may be recovered as wages.
Page 93

a) The areas that the ILO 147 addresses
b) Salient features of Athens Convention 1974
Answer
(a)
ILO 147 IS NO ONGER APPLICABLE AFTER ENTRY INTO FORCEW OF MLC,
2006 AND HENCE HAS NOT BEEN ANSWERED
(b)
The Athens Convention establishes a regime of liability (in this case of the ship owner) for
damage suffered by passengers carried on a seagoing vessel. It declares a carrier liable for
damage or loss suffered by a passenger if the incident causing the damage occurred in the
course of the carriage and was due to the fault or neglect of the carrier.
However, unless the carrier acted with intent to cause such damage, or recklessly and with
knowledge that such damage would probably result, he can limit his liability. The ship owner
has to have compulsory insurance to cover passengers on ships. Ships are to be issued with a
certificate attesting that insurance or other financial security is in force. In case of death of a
passenger; the maximum liability of the ship owner is 250,000 SDR per passenger on each
distinct occasion.
As far as loss of or damage to luggage is concerned, the carrier's limit of liability varies,
depending on whether the loss or damage occurred in respect of cabin luggage, of a vehicle
and/or luggage carried in or on it, or in respect of other luggage.
Limits of liability
The liability of the carrier only includes loss arising from incidents that occurred in the
course of the carriage. The burden of proving that the incident which caused the loss occurred
in the course of the carriage, and the extent of the loss, lies with the claimant and not the ship
owner.
Loss of or damage to luggage and vehicles:
 The liability of the carrier for the loss of or damage to cabin luggage is limited to
2,250 SDR per passenger, per carriage.
 Liability of the carrier for the loss of or damage to vehicles including all luggages
carried in or on the vehicle is limited to12,700 SDR per vehicle, per carriage.
 Liability of the carrier for the loss of or damage to other luggage is limited to 3,375
SDR per passenger, per carriage.
Page 94
Q.5 Describe the three tiers of compensation mechanism for all pollution damage as
stipulated under the CLC and Fund Conventions.
Answer
Q.6 a)What are standard and recommended practices under the FAL Convention?
b)Differentiate the limits of liability of the ship owner under the LLMC 1976 and
its Protocol of 1996.
Answer
(a)
The FAL Convention's main objectives are to prevent unnecessary delays in maritime traffic,
to aid co-operation between Governments, and to secure the highest practicable degree of
uniformity in formalities and other procedures. So, basically the purpose of the FAL
Convention is to facilitate maritime transport by reducing paper work, simplifying
formalities, documentary requirements and procedures associated with the arrival, stay and
departure of ships engaged on international voyages.
Standards and recommended practices
The Annex contains "Standards" and "Recommended Practices" on formalities,

documentary requirements and procedures which should be applied on arrival, during their
stay, and on departure to the ships, their crews, passengers, baggage and cargo. In its Annex,
the Convention contains "Standards" and "Recommended Practices" on formalities,
documentary requirements and procedures which should be applied on arrival, stay and
departure to the ship itself, and to its crew, passengers, baggage and cargo.
The Convention defines standards as internationally-agreed measures which are "necessary
and practicable in order to facilitate international maritime traffic" and recommended
practices as measures the application of which is "desirable".
(b)
Under the 1976 LLMC Convention, the limit of liability for claims covered is raised
considerably, in some cases up to 250-300 per cent. Limits are specified for two types of
claims - claims for loss of life or personal injury, and property claims (such as damage to
other ships, property or harbour works).
The limits under the 1976 Convention were set at 333,000 SDR for personal claims for ships
not exceeding 500 tons plus an additional amount based on tonnage. For other claims, the
limit of liability was fixed under the 1976 Convention at 167,000 SDR plus additional
amounts based on tonnage on ships exceeding 500 tons.
The limit of liability for claims for loss of life or personal injury on ships not exceeding 2,000
GT is 2 million SDR.
Page 95
For larger ships, the following additional amounts are used in calculating the limitation
amount:
 For each ton from 2,001 to 30,000 tons, 800 SDR

 For each ton in excess of 70,000, 400 SDR (US$634).
The limit of liability for property claims for ships not exceeding 2,000 GT is 1 million SDR.
amount:

 For each ton in excess of 70,000, 200 SDR
Amendments to 1996 Protocol, which will enter into force on 8th June 2015
New limits:
Under the amendments to the 1996 Protocol, the limits are raised as follows:
The limit of liability for claims for loss of life or personal injuryon ships not exceeding 2,000
gross tonnage is 3.02 million SDR (up from 2 million SDR).
amount:
 For each ton from 2,001 to 30,000 tons, 1,208 SDR (up from 800 SDR)
 For each ton from 30,001 to 70,000 tons, 906 SDR (up from 600 SDR)
 For each ton in excess of 70,000, 604 SDR (up from 400 SDR).
The limit of liability for property claimsfor ships not exceeding 2,000 gross tonnage is 1.51
million SDR (up from 1 million SDR).
amount:

For each ton from 2,001 to 30,000 tons, 604 SDR (up from 400 SDR)
 For each ton from 30,001 to 70,000 tons, 453 SDR (up from 300 SDR)
 For each ton in excess of 70,000 tons, 302 SDR (up from 200 SDR).
Q.7 Discuss the responsibility of carrier and shipper under Hague Visby rules and
list out for main differences between each.
Answer
Responsibilities of the Carrier
The "carrier" is defined as the owner or charterer who enters into a contract of carriage with a
shipper.
Page 96
 Seaworthiness of the ship - Seaworthiness means the ship is fit in design, structure,
condition, manning and equipment to encounter the ordinary dangers of the voyage.
The Hague-Visby Rules modified the law by reducing the obligation of seaworthiness
to use of due diligence only.
 Care of goods - the carrier is to see that the cargo is loaded safely and loaded without
delay.
 Stowage and segregation by the carrier - the carrier‟s duty to properly and carefully
load, handle, stow, carry and keep the cargo is a strict obligation though not an
absolute one (meaning that the carrier can challenge this provision in case of any
damages found).
 Obtaining information on the goods - the carrier has the duty to use all reasonable
means to ascertain the nature and characteristics of the goods tendered for shipment
and to exercise due care in their handling.
 Documentation, marking and labelling packaging - if there is due cause to suspect that
dangerous goods are not packed, marked, labelled and documented in accordance
with the regulations; the carrier should not take the goods on board.
 Dangerous goods manifest - the carrier‟s initial responsibility is to make sure the
shipper has provided the correct paperwork and to create his own records upon
receiving of certification from the shipper concerning dangerous goods.
 To Deliver the Cargo without Delay - the carrier must execute the voyage with due
dispatch.
 Not to deviate - the carrier is obligated to execute the voyage without unreasonable
deviation or unreasonable delay.
 To share in general average - a general average situation occurs when part of the
cargo is jettisoned to save the ship and the remainder of the cargo. The saved cargo
and the ship are obliged to jointly compensate the owner of the jettisoned cargo and
therefore the carrier has the responsibility to contribute his part in General Average.
Q.8 State the function of a bill of lading and explain the Bill of lading Act. What
action would you take if charter required vessel the release cargo under a LOI.
Answer
FUNCTION OF BL – DONE ELSEWHERE – TO REFER ACCORDINGLY
It is common practice for traders, usually when they are the sellers of the goods and the
charterers of a vessel, to instruct the carrier to discharge cargoes without production of the
original bills of lading and to agree to indemnify the carrier against the consequences of
doing so. This is done by providing a Letter of Indemnity ("LOI"). LOIs against delivery
without bills of lading has been used for decades and is here to stay. However, there are very
real risks in their use and it is important to have a full appreciation of those risks. Whilst the
terms of LOIs are virtually non-negotiable, there are steps which can be taken to significantly
improve a seller's position with a buyer in the event that LOIs are deployed, so that if calls
are subsequently made.
Page 97
In what circumstances are LOIs used?
The bill of lading is of course the "key to the warehouse" and the carrier's obligation, under a
negotiable bill, is to give delivery to the holder of the bill of lading and only the holder. No
carrier in his right mind should give delivery of cargo without production of the bill of lading
– unless he has an LOI from a party he believes is reliable. This is because if he delivers the
cargo without production of the bills of lading, he may face a claim for the value of the cargo
from the holder of the bills of lading (including possible future holders of the bills of lading)
if the person to whom he gives delivery of the cargo is not one and the same. However, most
carriers will agree (either at the time of entering into the charter or thereafter) to give delivery
of cargo without bills of lading if they are provided with a LOI in the standard P&I Club
form.
The vast majority of LOIs is issued in the standard wording recommended by shipowners'
P&I Clubs. The key features of such wording are that the party giving the indemnity will:
 indemnify the party (usually the ship owner), and hold him harmless in respect of any
liability, loss, damage or expense of whatsoever nature which they may sustain by
reason of delivering the cargo in accordance with the request to do so;
 provide sufficient funds to defend any claim brought in connection with the delivery
of cargo without bills of lading and
 provide security in respect of any third party claims brought against the indemnified
party, for delivery without bills of lading should the vessel be arrested or threatened
with arrest.
Therefore, if a third party comes along claiming to be the holder of the bill of lading
following delivery of the cargo, and makes a claim against the carrier backed up with a threat
to arrest his vessel, the trader who has issued an LOI will:
i. have to arrange security of that claim;

ii. be liable to indemnify the carrier in respect of that claim if the carrier is successful
and
iii. have to provide the carrier with the funds to defend the claim. Since the third party's
claim will almost invariably be for the full value of the cargo, the sums involved can
be very significant indeed.

a) Why is the Maritime Labour convention, 2006 being considered the
fourth pillar of maritime operations?
b) ILO 147.
Answer
(a)
Page 98
(b)
ILO 147 IS NO ONGER APPLICABLE AFTER ENTRY INTO FORCEW OF MLC,

2006 AND HENCE HAS NOT BEEN ANSWERED
Page 99
MAY 2013
Page 100
Q.1 a)List the statutory certificates and documents carried on board Indian Ship
(Type Gas Carrier) in conformance with IMO conventions and codes.
b)Define the following:

(i)Territorial Waters of India (ii) Contiguous zone
(iii)Continental shelf and EEZ i.e. Exclusive Economic Zone as specified in
Maritime Zone Act, 1976
Answer
(a)
 International Tonnage Certificate (1969)

 International Load Line Certificate
 International Load Line Exemption Certificate
 Cargo Ship Safety Construction Certificate
 Cargo Ship Safety Equipment Certificate4
 Cargo Ship Safety Radio Certificate
 Cargo Ship Safety Certificate
 Intact stability booklet
 Damage control plans and booklets
 Minimum safe manning document
 Fire safety training manual
 Fire Control plan/booklet
 On board training and drills record
 Fire safety operational booklet
 Certificates for masters, officers or ratings
 International Oil Pollution Prevention Certificate
 Oil Record Book
 Garbage Management Plan.
 Garbage Record Book
 Voyage data recorder system-certificate of compliance
 Document of Compliance
 Safety Management Certificate
 International Ship Security Certificate (ISSC) or Interim International Ship Security
Certificate
 Ship Security Plan and associated records
 Continuous Synopsis Record (CSR)
 Enhanced survey report file
 Record of oil discharge monitoring and control system for the last ballast voyage
 Cargo Information
 International Certificate of Fitness for the Carriage of Liquefied Gases in Bulk (Note:
The Code is mandatory under chapter VII of SOLAS1974 for gas carriers constructed
on or after 1 July1986.
(b)
SPECIFICALLY AS DONE IN THE CLASS – DIAGRAM AND NOTES
Page 101
Q.2a)Describe the salient features of Suppression of Unlawful Acts against safety of

maritime navigation convention including protocol 1988 (SUA).
b)Enumerate the 2010 Manila Amendments to Standards of Training Certification and
Watch Keeping (STCW 1978).
Answer
(a)
STRICTLY AS PER DISCUSSION / NOTES IN THE CLASS ON SUA

CONVENTION
(b)
The following items outline the key improvements realized through the new Amendments:
 Certificates of Competency & endorsements to be issued only by Administration -

thereby reducing the possibility of fraudulent practices associated with issue of
certificates of competency.
 Common medical standards for seafarers - seafarers from one country can serve on
board ships of another country without undergoing another medical exam.
 Revalidation requirements rationalized for the benefit of the seafarer.
 Introduction of modern training methodology i.e. distance learning and web based
learning.
 Hours of rest harmonized with the requirements of ILO Maritime Labour Convention
(2006) with a view to reducing fatigue.
 Requirements introduced to avoid alcohol and substance abuse.
 New Competencies required to be built and curriculum to be updated in life with
modern developments and real life needs
 Refresher Training is properly addressed within the convention
 Electronic Chart Display and Information System (ECDIS) will be required training
for all deck officers on all vessels that are equipped with ECDIS. ECDIS will be
treated the same as ARPA or the GMDSS training, where it is an STCW restriction
from serving on equipped vessels if you don't have these training certifications.
 The principal change with regard to Engineering is the addition of an Able Seafarer -
Engine Rating. This is separate from the Rating Forming Part of an Engineering
Watch.
 Competency standards for Electro Technical Officer (ETO) and an Electro Technical
Rating (ETR) have been added.
 Engine Room Resource Management, Teamwork and Leadership training will be
mandatory at both the operational and management levels.
 There will now be three categories of Tanker-man on tankers as follows:
 Oil
 Chemical
 Liquid Gas
Page 102
 In addition, each Tanker-man category will have two levels:
 Basic (currently called assistant)

 Advanced (currently called Person in Charge (PIC)
 Marine Environmental Issues - The amendments include the addition of marine

environmental awareness issues in the Personal Safety & Social Responsibilities
course conducted as part of Basic Safety Training, as well as an operational level of
marine environmental concerns.
 Refresher Training may take the form of e-learning, shipboard drills and
training or shore based training.
 The safety courses will require refresher training every five years and the courses may
be abbreviated somewhat from the original course lengths. The training that will need
to be refreshed by an approved method is:
 Proficiency in Survival Craft and Rescue Boats

 Advanced Fire-fighting
 Basic Safety Training
 Fast Rescue Boat
 Medical Training
 The amendments include three levels of security training:
 Level One - Security Awareness (All crew members)

 Level Two - Person with Security Duties
 Level Three - Ship Security Officer - ISPS Code
 Anti Piracy training is added to each level as well.

 Harmonization with ILO – MLC.
Q.3 a) State the contents of SOPEP Shipboard Oil Pollution Emergency Plan
(SOPEP) and Shipboard Marine Pollution Emergency plan (SMPEP).
b) Describe the salient features of the following:
i) High seas Intervention Convention ii) Ballast Water Management Plans
Answer
(a)
SOPEP contains the following things:
 The action plan contains duty of each crew member at the time of spill, including
emergency muster and actions.
 SOPEP contains the general information about the ship and the owner of the ship etc.
 Steps and procedure to contain the discharge of oil into the sea using SOPEP
equipments.
 On board Reporting procedure and requirement in case of oil spill is described.
Page 103
 Authorities to contact and reporting requirements in case of oil spill are listed in
SOPEP. Authorities like port state control, oil clean up team etc are to be notified.
 SOPEP includes drawing of various fuel lines, along with other oil lines on board
vessel with positioning of vents, save all trays etc.
 General arrangement of ship is also listed in SOPEP, which includes location of all
the oil tanks with capacity, content etc.
 The location of the SOPEP locker and contents of the locker with a list of inventory.
Ship oil pollution plan contains:
 An action plan with instructions for the oil pollution prevention team. This is a list of
duties the crewmembers have to fulfil in case of an oil spill.
 An emergency plan.
 General information about the ship.
 Procedures to discharge the oil into the sea in accordance to MARPOL regulations
 Drawings of fuel/oil lines.
 Location of SOPEP boxes.
(b)
(ii)
Ballast water is essential to control trim, list, draught, stability, or stresses of the ship.
However, ballast water may contain aquatic organisms or pathogens which, if introduced into
the sea including estuaries, or into fresh water courses, may create hazards to the
environment, human health, property or resources, impair biological diversity or interfere
with other legitimate uses of such areas.The selection of appropriate methods of ballast water
management should take into account the need ensure that Ballast Water Management
practices used to comply with this Convention do not cause greater harm than they prevent to
the environment, human health, property or resources of any States and the safety of ships.
The purpose of the plan is to meet the requirements for the IMO Guidelines on control and
management of ship‟s ballast water and sediments in accordance with the Guidelines for
Ballast Water Management and the Development of Ballast Water Management Plans. It
provides standard operational guidance for the planning and management of ships' ballast
water and sediments and describes safe procedures to be followed. The Ballast Water
Management Plan contains the following:
 Description of the ballast system

 Operation of the ballast water management system
 Sediment management
 Ballast water sampling
 Methods of communication
 Duties of the ballast water management officer
 Crew training and familiarization
 Recording requirements
Page 104
Q.4 a)Define the following as per International Health Regulations, 2005 (IHR):
i)Contamination ii)De-ratting iii)Free Pratique

iv)Health Measures v)Inspection vi)Medical Examination
b)Enumerate the key provisions of Part XA of Merchant Shipping Act 1958 on

Limitation of Liability for Maritime Claims.
Answer
(a)
(i) “Contamination” means the presence of an infectious or toxic agent or matter on a human
or animal body surface, in or on a product prepared for consumption or on other inanimate
objects, including conveyances, that may constitute a public health risk;
(ii) “De-ratting” means the procedure whereby health measures are taken to control or kill
rodent vectors of human disease present in baggage, cargo, containers, conveyances,
facilities, goods and postal parcels at the point of entry;
(iii) “Free pratique” means permission for a ship to enter a port, embark or disembark,
discharge or load cargo or stores; permission for an aircraft, after landing, to embark or
disembark, discharge or load cargo or stores; and permission for a ground transport vehicle,
upon arrival, to embark or disembark, discharge or load cargo or stores;
(iv) “Health measure” means procedures applied to prevent the spread of disease or
contamination; a health measure does not include law enforcement or security measures;
(v) “Inspection” means the examination, by the competent authority or under its supervision,
of areas, baggage, containers, conveyances, facilities, goods or postal parcels, including
relevant data and documentation, to determine if a public health risk exists;
(vi) “Medical examination” means the preliminary assessment of a person by an authorized

health worker or by a person under the direct supervision of the competent authority, to
determine the person‟s health status and potential public health risk to others, and may
include the scrutiny of health documents, and a physical examination when justified by the
circumstances of the individual case;
(b)
Limitation of liability for damages in respect of certain claims
The ship owner who is responsible for his acts may limit his liability as provided in respect of
the following:
 claims arising from loss of life of or personal injury to, or loss of or damage to,
property (including damage to harbour works, basins and waterways and aids to
navigation), occurring on board or in direct connection with the operation of the ship
or with salvage operations, and consequential loss that subsequently results;
Page 105
 claims arising out of loss resulting from delay in the carriage by sea of cargo and
passengers or their luggage;
 claims arising out of other loss resulting from infringement of rights other than
contractual rights, occurring in direct connection with the operation of the ship or
salvage operations;
 claims for the loss of life or personal injury to passengers of a ship brought by or on
behalf of any person under the contract of passenger carriage;
 Limitation of liability DOES NOT APPLY TO claims for salvage or contribution in
general average and claims for oil pollution damage within the meaning of the
International Convention on Civil Liability for Oil Pollution Damage, 1992 as
amended from time to time;
Q.5 Write short notes on following requirements as per MLC 2006:

a) Food and catering standards
b) Minimum requirements for seafarers to work on ship.
c) Occupational health, medical care, welfare and social security protection.
Answer
(a)
Food and Catering Standards
Purpose: To ensure that seafarers have access to good quality food and drinking water
provided under regulated hygienic conditions.
For the ship-owner or management company, compliance includes taking care of their
responsibilities in terms of the MLC 2006 with regards to training and implementations, and
to work according to a set of internationally recognized standards.Also the ship-owner or
management company should ensure that there are adequate health and safety procedures in
place for the specific ship type, and that training includes the handling of food and personal
hygiene on board to ensure that food is prepared and served in hygienic conditions.
The key points that came out of the MLC 2006 convention was a set of guidelines for the
training of ship's cooks or for the person responsible for catering on board any vessel above
499 GWT.The basic knowledge that ship's cooks must have or be trained in is now as
follows:
 Understanding various types of menus and their differences

 Be able to read, understand and follow a recipe, cultural and religious requirements,
and be able to apply this knowledge when planning menus
 Be familiar with the company menu book, if one applies
 Be familiar with the rules of menu composition
 Be able to estimate the amount of leftovers and include their use in menus, reducing
food wastage both in the long term and in day to day planning
 Take into account the role of the senses, the need for variation and importance of
nutritional value when planning
 Be able to understand the importance of weekly menus, and to be able to organize and
prepare them
Page 106
 Be able to prepare a meal so that the ingredients retain their nutritional content while
still maintaining a tempting appearance
 Be aware of the social aspect of mealtimes and of the practical consequences of this
on menu planning, including with regard to special traditions, celebrations and
occasions
 Have an understanding of the interaction between mealtimes and the daily rhythms of
work on board and the importance of such interaction in terms of the practicalities of
serving meals and snacks
 Be familiar with what constitutes a healthy diet
The inspection, auditing and training focuses on:
 Is there a Food Safety Management system on board?

 Is it working and being implemented?
 Is the ship‟s cook trained to Food Safety Level 2? If not, they need to be trained, and
if successful the galley team will be awarded with certificates of competency
(b)
Minimum requirements for seafarers to work on ships
 No person below the minimum age of 16 years shall be employed or engaged or work
on a ship. A ships cook shall not be less than 18 years old.
 No seafarer under the age of 18 years shall work at night, except when the seafarer is
engaged in a training programme established by the ship-owner and approved by the
Administration; or when the Administration has determined that the work performed
due to its specific nature or under a recognized training programme is not detrimental
to their health and well-being.
 Night is defined as a period of at least nine (9) consecutive hours starting no later than
2100 hours and ending no earlier than 0500 hours.
 Where seafarers under the age of 18 years are engaged at night, the beginning and end
of this period shall be determined by the ship-owner.
 No seafarer under the age of 18 years shall be engaged or employed in any hazardous
work, which is likely to jeopardize their health and safety.
 Every seafarer shall, prior to beginning work on a ship, hold a valid medical
certificate issued by a duly qualified medical practitioner licensed at the place of
examination and/or recognized by the competent authority at the place of
examination, attesting that the seafarer is medically fit to perform the duties that they
are to carry out at sea.
 A medical certificate solely concerning eyesight shall be issued by a person
recognized by the competent authority at the place of examination, as qualified to
issue such a certificate. The medical certificates shall state in particular that the
seafarer concerned:
 has satisfactory hearing and sight, as well as colour vision where the nature of
the work to be performed requires it;
 is medically fit to perform the duties they are to carry out; and
 is not suffering from any medical condition that is likely to be aggravated by
service at sea or to render the seafarer unfit for such service or to endanger the
health of other persons on board.
Page 107
(c)
Occupational health, medical care, welfare and social security protection
 For the health protection and medical care, Flag States are required to ensure the
application to the seafarers of any general national provisions on occupational health
protection and medical care relevant to their duties;
 the health protection and medical care must be as comparable as possible to that
which is generally available to workers ashore, including prompt access to the
necessary medicines, medical equipment and facilities for diagnosis and treatment and
to medical information and expertise;
 Seafarers have the right to visit a qualified medical practitioner.
 Expenses to be paid by ship owner - the expense of medical care, including medical
treatment and the supply of medicines, and board and lodging away from home until
the sick or injured seafarer has recovered or until the sickness or incapacity has been
declared of a permanent character; where sickness or injury results in incapacity for
work, full wages as long as the sick or injured seafarers remain on board or until the
seafarers have been repatriated; and wages in whole or in part, as prescribed by
national laws or regulations or as provided for in collective agreements, from the time
when the seafarers are repatriated or landed until their recovery or, if earlier, until
they are entitled to cash benefits under the legislation of the country concerned;
 financial security to assure compensation in the event of the death or long-term
disability of seafarers due to an occupational injury, illness or hazard, as set out in
national law, the seafarers‟ employment agreement or a collective agreement;
 the cost of burial services in the case of death on board or ashore during the period of
engagement;
The notion of social security covers all measures providing benefits, whether in cash or in
kind, to secure protection, among other things, from lack of or insufficient work-related
income caused by sickness, disability, maternity, employment injury, unemployment, old age,
or death of a family member; lack of access or unaffordable access to health care; insufficient
family support, particularly for children and adult dependants; general poverty and social
exclusion. Social security schemes can be of a contributory (social insurance) or non-
contributory nature. Basically, the MLC requirement in this regard includes:
 Sickness benefit
 Unemployment benefit
 Old-age benefit
 Employment injury benefit
 Family benefit
 Maternity benefit
 Invalidity benefit
 Survivors‟ benefit
Page 108
Q.6 a)State the purpose of Facilitation of Maritime Traffic convention 1965.

b)State the documents to be submitted to the Shipping Agent in Indian Ports for
obtaining outward port clearance.
Answer
(a)
(b)
The procedure for outward clearance of ships – Documents required
Documents required on departure:
FIVE copies of general declaration:
 Name and nationality of the ship

 Name of master
 Port of destination
 In respect of goods loaded at the port in question; marks and numbers; number and
kind of packages; quantity and description of the goods
 Bill of lading numbers for cargo loaded at the port in question
 Minimum essential information is required
 To be signed by master or agent
 Cargo manifest is accepted in lieu of cargo declaration provided it contains all the
details
 Details of the cargo in transit
FOUR copies of cargo declaration

THREE copies of ship‟s store declaration:
 Ship‟s store declaration, which is related to ship‟s store and is signed by master.
TWO copies of the crew list:
 To know the number and composition of the crew on arrival and departure
 Name and nationality of the ship
 Family name
 Given names
 Nationality
 Rank or rating
 Date of place of birth
 Nature and number of identity document
 Port and date of arrival (ETA next port)
TWO copies of the passengers list:
 Required to know the information of passengers on departure of a ship.
Page 109
 Not required in case of short sea route or combined ship/rail service neighbouring
countries.
 Normally the companies have their own list of passengers in place of passengers list.
 Name and nationality of the ship.
 Family name.
 Given names.
 Nationality.
 Date of birth.
 Place of birth.
 Port of embarkation.
 Port of disembarkation.
 Port and date of arrival of the ship.
Q.7a)What is Note of Protest? Explain the conditions in which Note of Protest is to be

Lodged?
b) With respect to Salvage Convention 1989,explain:
i)Criteria for assessing reward to the Salvers.
ii)Criteria for assessing special compensation P&I Club (SCOPIC
Clause).
iii) Duties of Salver, Owner and Master.
Answer
(a)
(b)
Q.8 State the various functions of a bill of lading. What precautions would you
observe while signing bills of lading presented by Time-Charterers?
Q.9 a) Define General Average. How is it different from particular average?

b) State salient features of York Antwerp rules.
Answer
(a)
The law of general average is a legal principle of maritime law according to which all
parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of
part of the ship or cargo to save the whole adventure (voyage, the ship and the cargo) in an
emergency.
General average requires three elements:
Page 110
1. "A common danger: a danger in which vessel, cargo and crew all participate; a danger
imminent and apparently 'inevitable,' except by voluntarily incurring the loss of a
portion of the whole to save the remainder."
2. "There must be a voluntary jettison, jactus, or casting away, of some portion of the
joint concern for the purpose of avoiding this imminent peril,
periculiimminentisevitandicausa, or, in other words, a transfer of the peril from the
whole to a particular portion of the whole."
3. "This attempt to avoid the imminent common peril must be successful".
So, we can say that there is a General Average Act, WHEN and ONLY when, any
EXTRAORDINARY SACRIFICE or EXPENDITURE is INTENTIONALLY and
REASONABLY made for THE COMMON SAFETY for the purpose of PRESERVING
FROM PERIL the property involved in a COMMON MARITIME ADVENTURE.
Examples of General Average in the present day shipping world can be:
 The extraordinary sacrifice could be to cut a hole in the side of the ship and then
fighting a fire through that hole. Any cargo which may be damaged as a direct result
of this fire fighting will be considered an extraordinary sacrifice, but that which is
burnt from the fire will not be considered a sacrifice but will be a particular average
claim against insurers.
 There can also be the cost of running the engines at high speed to remove her from
being aground. The extra fuel which is used plus the extensive damage which this can
cause the engines for running at these high speeds will all be considered as a sacrifice
in terms of a general average as if it were not for the engines running at the high speed
using the excessive fuel plus the resulting damage to the engines, the voyage would
not have been saved.
“Particular average is a loss arising from damage accidentally and proximately caused by the
perils insured against, to some particular interest, as the ship alone or the cargo alone. It is
therefore “a partial loss (any loss other than a total loss) caused by a peril insured against, and
which is not a general average loss.”
Particular average, instead of being contributed for by the general body of those who are
interested in the adventure, falls entirely upon the particular owner of the property, which has
suffered by the damage. Such owner has a claim against the insurer in proportion to:
 Degree by which the damage sustained may have diminished the value that the
property has to him, and
 To the sum that the insurer has agreed to insure.
In order to illustrate this situation better, let us consider an example. Suppose the goods have
been insured for a sum of Rs. 5000. If sold in the market they would have realised for the
owner Rs. 15,000. But due to the occurrence of a particular average loss, they can only be
sold for a sum of Rs.12, 000. Therefore, the loss in value is Rs.3, 000, which is 1/5 of the
value o the objects that would have been realised if there was no loss. The insurer is bound to
pay to the assured, in such a case, the same proportion of the sum insured, as the damage may
have been deducted from the value they would have realised, but for the loss. Therefore, in
this case, the insurer is liable for a sum of Rs.1000 (1/5th of the insured sum of Rs. 5000/-).
Page 111
(b)
The fact that a general average act can occur in any international waters, or on the high seas,
raises the questions of which law and jurisdiction should apply to the general average
adjustments. But, if the Rules are incorporated into the contract, they will govern the
adjustment of general average. They provide a complete code and, by the general rule of
interpretation, they „shall apply to the exclusion of any law and practice inconsistent with
them‟, if the parties to a contract have adopted them.
The York-Antwerp Rules are voluntary. It is important to understand that York-Antwerp

Rules are not LAW and thus NOT legally binding. But because of the maritime tradition and
its long usage, today the shipping trade cannot function without using them and thus they are
extensively used. Therefore, where they are not incorporated into a charter-party or bill of
lading, they do not apply.
These Rules consist of a set of lettered rules, followed by a set of numbered rules. The
lettered rules from A to G state the general principles, while the numbered rules (I to
XXIII) are specific and deal with commercial practicability; they qualify the general
principles.
The York-Antwerp Rules attempt to cover many types of expenses associated with an
imperilled ship. For example, the rules provide for recovery by the ship owner of the costs of
repair, loading and unloading cargo, and maintaining the crew, if these expenses are
necessary for the safe completion of the voyage. Claims are generally made against the
insurer of the cargo and the ship owner's insurance underwriters.
Page 112
JULY 2013
Page 113
Q.1 In respect of UNCLOS explains the following:

a) Right of Innocent Passage.
b) Right of Transit Passage.
c) Exercise of Criminal and Civil Jurisdiction over vessels.
d) Definition of International straits.
Answer
PLEASE REFER TO PREVIOUS ANSWER – Q. 1 of January 2012AND AS PER

SPECIFIC DISCUSSIONS AND NOTES IN CLASS.
Q.2 a)Describe the requirements for periodical inspections under International

Conventionon Load Lines 1966.
b)Describe the salient features and objectives of the SUA Convention.
Answer
(a)
A periodical load line survey is normally conducted at intervals specified by the

Administration, but not exceeding five years, which shall be such as to ensure that the
structure, equipment, arrangements, material and scantlings fully comply with the
requirements of the ILL Convention. A periodical inspection within three months either way
of each annual anniversary date of the certificate, to ensure that alterations have not been
made to the hull or superstructures which would affect the calculations determining the
position of the load line and so as to ensure the maintenance in an effective condition of
fittings and appliances for:
 protection of openings;
 guard rails;
 freeing ports; and
 means of access to crew's quarters.
(b)
SPECIFICALLY AS PER DISCUSSIONS AND NOTES GIVEN IN CLASS
Q.3 a) Discuss salient features of International Convention of Civil liability for oil
pollution damage (CLC) 1992 Protocol.
b) State the admissible claims including the limitation of liability for the ship
owner under CLC 1992 and limitation limit specified in FUND 1992 Protocol.

(b)
Page 114
Q.4 a) With regard to Special Trade Passenger ships, explain Special Trade
Passenger, Special Trade Passenger Ships, Certificate A and Certificate B.
b) Explain the purpose of FAL Convention.
Answer
(a)

(b)
Q.5 Enumerate the requirements of MLC 2006 towards the following:

a) Seafarers Employment Agreements, Wages and Repatriation.
b) Health protection, Medical Care, Welfare and social security protection.
Answer
(a)
SPECIFICALLY DONE IN VARIOUS QUESTIONS – PLEASE REFER

ACCORDINGLY
(b)
SPECIFICALLY DONE IN VARIOUS QUESTIONS – PLEASE REFER

ACCORDINGLY
Q.6 Distinguish between a “Note of Protest” and a “Letter of Protest”. Discuss the
circumstances when it is advisable for a ship-master to note protest. Explain the
meaning of “reserving the right to extend a protest”?
In maritime law, a Notes of Protest is a notarized statement obtained after a ship enters port
after a rough voyage. Its purpose is to protect the ship's charterer or owner from liability for
damage to the cargo, the ship or to other ships in a collision, where this was caused by the
perils of the sea (for example, bad weather).
Notes of Protest should be made when and if you consider it of utmost importance and
necessity, not for the sake of doing so. If for example there is a possibility of a claim from
another party to arise. If you suspect that damage has been caused to the vessel only (i.e.
through heavy weather, touching bottom, striking locks etc.) there is no need for a „‟Note of
Protest‟‟ to be issued same could be stated on a „‟Statement of Facts‟‟. When writing such a
„Note of Protest‟ bear in mind that you must stick to the FACTS and only, keeping it as brief
and as clear as possible. Same can be extended upon a later date if required. Also do not
express any opinions whatsoever. Such statement of opinions may and do often lead to
unnecessary complications and/or confusion in a later date. Furthermore, due to the fact that
Notary Publics around the world use various types/forms for „‟Notes of Protest‟‟ it is quite
Page 115
difficult to admit/provide you with any standard form, we do however attach a most common
form which you may alter where necessary. Thus in the case that „Note of Protest‟has been
made and notarized by Notary Public do not neglect to forward a copy to office at first
convenient time.
Whereas, a letter of protest, strictly speaking, is not a legal document but a paper containing
an account of the events or statement of facts, describing current situation or consequences of
some wrongful act or acts, which had happened usually contrary to master‟s or crew efforts.If
it is known or suspected that such damage has occurred, the captain will make a sworn
"protest in common form" at the office of a notary public, or a consul. If the full extent of any
damage caused only becomes apparent while or after the cargo is unloaded, the captain may
return to the office of the notary public to extend his protest. If a sea protest is not made, the
owner or charterer may be liable for the damage caused and may be unable to produce the
ship's log (which would have recorded the relevant incidents) as evidence in court.
For example, when during cargo operation something beyond the master‟s control has gone
wrong and the master is unable to make it right, like interruption from shore side of loading
or discharging operation, neglect cargo handling, violation of safe working practice, etc.
Obviously, the said act or occurrence should be of such importance that master feels himself
obliged to bring it to attention of all parties concerned, either for some immediate action or
for future reference, but it still lacks of any legal effect being a document produced by one
side to defence its own position.
Q.7a) State the criteria for fixing the reward as per article 13 of Salvage Convention.
b) State the provisions of the Merchant Shipping Act, 1958 with respect to deserters
and distressed seaman.
Answer
(a)
(b)
Desertion and absence without leave
No seaman lawfully engaged and no apprentice:
 shall desert his ship; or

 shall neglect or refuse, without reasonable cause, to join the ship or to proceed to sea
in his ship or be absent without leave at any time within twenty-four hours of the
ship‟s sailing from a port either at the commencement or during the progress of a
voyage, or be absent at any time without leave and without sufficient reason from his
ship or from his duty.
However, it is important to understand that if the ship on which the seaman or apprentice is
engaged is unseaworthy, then such absence will be justified and not termed as desertion.But
Page 116
for this to be acceptable the seamen or apprentice has to inform prior to his physical absence
from the ship that the ship is unseaworthy.
Relief and maintenance of distressed seamen
 The Indian consular officer at or near the place where a seaman is in distress shall, on
application being made to him by the distressed seaman, provide for the return of that
seaman to a proper return port, and also for the said seaman‟s necessary clothing and
maintenance until his arrival at such port.
 A distressed seaman shall not have any right to be maintained or sent to a proper
return port except to the extent and on the conditions provided for.
 All repatriation expenses, other than excepted expenses, incurred by or on behalf of
the Central Government in accordance with the provisions of MSA, 1958 shall
constitute a debt due to the Central Government for which the owner of the ship shall
be liable to make the payment.
Q.8 Hague Visby Rules 1968 establishes the responsibilities and liabilities attached to
carrier. Discuss the various aspects of the following provisions of HVR 1968.
a)Article II – Risks
b) Article IV – Responsibilities and liabilities
Answer
(a)
Risks
Subject to the required provisions, under every contract of carriage of goods by water the
carrier, in relation to the loading, handling, stowage, carriage, custody, care and discharge
of such goods, shall be subject to the responsibilities and liabilities and entitled to the
rights and immunities.Basically, the protection available for the carrier depends on the
terms of contract of carriage and how these are evidenced in the Bill of Lading.
The Hague Visby Rules apply to the deck cargo when a Bill of Lading:
 has no notation on its face with regard to the fact that the cargo is stowed on deck, or
 has a notation on its face referring to the fact that the cargo is stowed on deck but in
addition to this contains a clause which provides that Hague Visby Rules apply to the
deck cargo.
Unauthorized deck carriage may be considered a fundamental risk and a breach of the
contract of carriage so that in the event of loss the carrier cannot benefit from the liability
limitation provisions of Hague Visby Rules. Also, when deck cargo is not transported subject
to Hague Visby Rules, then in both common and civil law systems the nature and extent of a
carrier‟s liability in the event of loss of or damage to the goods is be determined by general
principles of negligence or fault.
Page 117
Responsibilities and Liabilities
The carrier shall be bound, before and at the beginning of the voyage, to exercise due
diligence to:
 make the ship seaworthy;

 properly man, equip and supply the ship;
 make the holds, refrigerating and cool chambers, and all other parts of the
ship in which goods are carried, fit and safe for their reception, carriage and
preservation.
Subject to the requirements, the carrier shall properly and carefully load, handle, stow,
carry, keep, care for and discharge the goods carried.
After receiving the goods into his charge, the carrier, or the master or agent of the carrier,
shall, on demand of the shipper, issue to the shipper a bill of lading showing among other
things:
 the leading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts,
provided such marks are stamped or otherwise shown clearly upon the goods if
uncovered, or on the cases or coverings in which such goods are contained, in such
a manner as should ordinarily remain legible until the end of the voyage;
 either the number of packages or pieces, or the quantity, or weight, as the case may
be, as furnished in writing by the shipper;
 the apparent order and condition of the goods:
After the goods are loaded the bill of lading to be issued by the carrier, master or agent of
the carrier, to the shipper shall, if the shipper so demands, be a "shipped" bill of lading,
provided that if the shipper shall have previously taken up any document of title to such
goods, he shall surrender the same as against the issue of the "shipped" bill of lading, but at
the option of the carrier such document of title may be noted at the port of shipment by the
carrier, master, or agent with the name or names of the ship or ships upon which the goods
have been shipped and the date or dates of shipment, and when so noted the same shall for
the purpose of this Article be deemed to constitute a "shipped" bill of lading.
Q.9 a) Write short notes on following:

i) Insured perilsii) Utmost good faith iii) Contribution
b) Differentiate between Salvage and General Average?
Answer
(a)
(i) Insured Perils
Page 118
The subject matter of this insurance is the vessel, including its hull, lifeboats, machinery,
equipment, instruments, tackles, bunkers and stores. This insurance covers loss of or damage
to the insured vessel caused by:
 Perils of the seas rivers lakes or other navigable waters

 Fire, explosion
 Violent theft by persons from outside the Vessel
 Jettison
 Piracy
 Breakdown of or accident to nuclear installations or reactors
 Contact with aircraft or similar objects, or objects falling there from, land
conveyance, dock or harbour equipment or installation
 Earthquake volcanic eruption or lightning
This insurance covers loss of or damage to the subject-matter insured caused by:
 Accidents in loading discharging or shifting cargo or fuel.

 Bursting of boilers breakage of shafts or any latent defect in the machinery or hull.
(ii)
Utmost Good Faith
(iii)
Contribution
TO DO
(b)
Page 119
AUGUST 2013
Page 120
Q.1 a) Discuss in detail what is meant by “Innocent passage” when transiting a

country‟s Territorial waters, and “Unimpeded transit passage”.
b) How is an act of piracy defined under UNCLOS?
Answer
(a)
ANSWER FOR „INNOCENT PASSAGE‟ FROM PREVIOUS ANSWERS (AFTER

DRAWING THE DIAGRAM DONE IN CLASS
Transit passage is a concept of the Law of the Sea which allows a vessel the freedom of
navigation solely for the purpose of continuous and expeditious transit of a strait between one
part of the high seas or exclusive economic zone and another.
Transit passage exists throughout the entire strait and not just the area overlapped by the
territorial sea of the coastal nations. The ships of all nations, enjoy the right of unimpeded
transit passage in such straits and their approaches. The legal regime of transit passage exists
in the most important straits for the international trade exchange and security (Strait of
Gibraltar, Dover Strait, Strait of Hormuz, Bab-el-Mandeb, and Strait of Malacca).
(b)
UNCLOS Article 101 Piracy is defined as any illegal acts of violence or detention, or any act
of damage, committed for private ends by the crew of a private ship(the second ship)… and
directed (i) on the high seas against another ship… or against persons or property on board;
(ii) Against a ship, persons or property in a place outside the jurisdiction of any State.
Q.2a)What are the records that a ship should maintain for complying with the
requirement of the ISPS Code and for what period?
b)Write short notes on Ballast Water Management Convention.
Answer
(a)
Records of the following activities addressed in the ship security plan shall be kept on board
for at least the minimum period specified by the Administration (it is sent back to the Flag
State and therefore CANNOT be destroyed on board. Even the destruction of records has
FIRST TO BE APPROVED BY THE FLAG STATE), bearing in mind the following
provisions:
 training, drills and exercises;

 security threats and security incidents;
 breaches of security;
 changes in security level;
Page 121
 communications relating to the direct security of the ship such as specific threats to
the ship or to port facilities the ship is, or has been;
 internal audits and reviews of security activities;
 periodic review of the ship security assessment;
 periodic review of the ship security plan;
 implementation of any amendments to the plan; and
 maintenance, calibration and testing of any security equipment provided on board
including testing of the ship security alert system.
(b)
Q.3 Explain the purpose of CLC and Fund Conventions. Draw up a comparison
between the two including latest amendments.
Answer
Q.4a) Define Gross Tonnage, Net Tonnage and Excluded spaces as per International
Convention on Tonnage Measurement of ships, 1969 as amended.
b) Explain the provisions of Special Trade Passenger Ships Agreement.
Answer
(a)
The term derives from the taxation paid on tuns or casks of wine, and was later used in
reference to the weight of a ship's cargo; however, in modern maritime usage, "tonnage"
specifically refers to a calculation of the volume or cargo volume of a ship. Tonnage should
not be confused with Displacement which refers to the loaded or empty weight of the vessel
itself.
Gross tonnage is a dimensionless index related to a ship's overall internal volume. Gross
tonnage is different from gross register tonnage. Neither gross tonnage nor gross register
tonnage is a measure of the ship's displacement (mass) and should not be confused with terms
such as deadweight tonnage or displacement.
Calculation of Gross Tonnage
The gross tonnage calculation is based on two variables:
 V, the ship's total volume in cubic meters (m3), and

 K, a multiplier based on the ship volume.
Page 122
The value of the multiplier K varies in accordance with a ship's total volume (in cubic metres)
and is applied as a kind of reduction factor in determining the gross tonnage value - which
does not have a unit such as cubic metres or tons. For smaller ships, K is smaller, for larger
ships, K is larger. K ranges from 0.22 to 0.32 and is calculated with a formula which uses the
common or base-10 logarithm:
Once V and K are known, gross tonnage is calculated using the formula, whereby GT is a
function of V:
Net tonnage is a dimensionless index calculated from the total moulded volume of the ship's
cargo spaces by using a mathematical formula.
Calculation of Net Tonnage
Choice of draft value
The net tonnage calculation is based on a number of factors, one of which is the moulded
draft d. The choice of the value to use for d can be complicated. For ships subject to the
International Convention on Load Lines, the Summer Load Line draft is used, with the
exception of cases where that is a timber load line. For passenger ships, the draft used is the
deepest subdivision load line assigned in accordance with the International Convention for
the Safety of Life at Sea. Otherwise, if a ship has been assigned a load line by its national
government, the draft for that summer load line is used.
12 or fewer passengers
The Net tonnage calculation is defined in Regulation 4 of Annex 1 of The International

Convention on Tonnage Measurement of Ships, 1969. It is based on two main variables:
 Vc, the total volume of the ship's cargo spaces in cubic meters (m³),
 d, the ship's moulded draft amidships in meters, and
 D, the ship's moulded depth amidships in metres.
The first step in calculating NT is to find the value known as K2, a multiplier based on Vc. It
is obtained by using the following formula:
And then these three values are used to calculate NT using this formula:
Where the factor 4d2/3D will not exceed 1, the term Vc× K2× 4d2/3D will not be less than
0.25 GT, and the final value of NT shall not be taken as less than 0.30 GT.
Page 123
13 or more passengers
When calculating NT for ships certified to carry 13 or more passengers, an additional term is
used in the NT formula. It is based on three additional variables:
 GT, the ship's gross tonnage,

 N1, number of passengers in cabins with not more than 8 berths, and
 N2, number of other passengers.
First, a multiplier K3, based on the ship's gross tonnage is found,
Then the net tonnage is calculated:
Where the factor 4d2 will not exceed 1, the term will not be less than 0.25
GT, and the final value of NT shall not be taken as less than 0.30 GT.
The difference between the cases of 12 of fewer passengers and 13 or more passengers is due
to a restriction given in the net tonnage definition that states "...when N1 + N2 is less than 13,
N1 and N2 shall be taken as zero."
Excluded space means an enclosed space which is excluded from the total volume of all
enclosed spaces (V) in calculating gross tonnage.
Restricted End Opening
PLEASE REFER TO FIGURES (1) under Excluded Space IN THE ATTACHMENT.
Separated by Open Space
Covered Space Open on Sides
Space below Uncovered Opening
Page 124
Q.5 State the provisions of MLC 2006 concerning:

a) Minimum requirements for seafarers to work on ships.
b) Accommodation and recreational facilities, food and catering.
c) Declaration of Maritime Labour Compliance (DMLC)
Answer
(a)
(b)
Accommodation
 The minimum headroom in all seafarer accommodation shall be at least 203

centimetres. The Administration may grant a substantial equivalent providing for a
reduction in head-room in any space, or part of any space, in such accommodation
where it is satisfied that such reduction is reasonable and will not result in discomfort
to the seafarers.
 Sleeping rooms shall be located above the load-line.
 Proper lighting and sufficient drainage shall be provided.
 The accommodation shall be adequately insulated.
 Each seafarer in a sleeping room shall be provided with a clothes locker of minimum
475 litres volume and a drawer or equivalent of not less than 56 litres capacity.
Combined units may be permitted but shall have a minimum volume of 500 litres. All
lockers shall be fitted with a shelf and be able to be locked.
 Each sleeping room shall be provided with a table or desk, which may be of the fixed,
drop-leaf or slide-out type, and with comfortable seating accommodation as
necessary.
 Ships shall be equipped with air conditioning for the seafarer accommodation, for any
separate radio room and for any centralised machinery control room. The
Administration may grant an exception to ships engaged in a trade where temperate
climatic conditions do not require this.
 Ships shall be equipped with an adequate system of heating which shall be in
operation at all times when required.
(b)
Recreational facilities
 Furnishings for recreational facilities should as a minimum include a book case and
facilities for reading, writing and where practicable, games and a canteen or other
equivalent arrangements.
 Each ship owner should in addition to the above give consideration to include the
following facilities at no cost to the seafarer, where practicable: a smoking room and
sports equipment such as exercise equipment, table games and deck games.
Page 125
 Appropriate seafarers‟ recreational facilities, amenities and services, as adapted to

meet the special needs of seafarers who must work and live on ships, shall be
provided on board for the benefit of all seafarers.
 Each ship owner should give consideration to include the following facilities at no
cost to the seafarer,where practicable - television and radio reception facilities
together with electronic equipment such as a television, radio, video recorders, DVD
players and personal computers; a stock of films sufficient for the voyage; and a
suitably stocked library.
 All seafarers should have reasonable access to ship-to-shore telephone
communication, email and internet facilities, where available, with any charges for the
use of these services being reasonable in amount.
 All seafarers should be able to send and receive mail reliably and expeditiously from
and to the vessel.
(c)
Declaration of Maritime Labour Compliance (DMLC)
Document which states the national laws, regulations and marine notices implementing the
requirements of this Convention for the working and living conditions for seafarers (Part I)
and the measures put in place by the ship owner to ensure ongoing compliance with the
requirements and the measures proposed to ensure that there is continuous improvement, on
the ship concerned (Part II). Part I is drawn up by the Administration and Part II is drawn up
by the shipowner.
Q.6 a)Describe the “duties of Master after collision” and “appointment of liability”
as per International Convention for the unification of Certain Rules of Law with
respect to Collision between Vessels, and Relating to Penal Jurisdiction in
Matters of Collision or other Incidents of Navigation.
b) Describe the documents to be produced to obtain “Free pratique” at a port of
arrival in India.
Answer
(a)
 After a collision, the master of each of the vessels in collision is bound, so far as he
can do so without serious danger to his vessel, her crew and her passengers, to render
assistance to the other vessel, her crew and her passengers.
 He is likewise bound so far as possible to make known to the other vessel the name of
his vessel and the port to which she belongs, and also the names of the ports from
which she comes and to which she is bound.
 A breach of the above provisions does not of itself impose any liability on the owner
of a vessel.
(b)
These Rules apply to the ships entering, berthing and exiting from the defined waters of port
in India at all times covered by, and are subject to, international, national and local Rules
with respect to carriage and handling of cargoes. The documents to be produced include:
Page 126
 Vessel details;
 Classification status of the vessel;
 Statutory certificates and their validity including annual endorsements;
 Crew list and Safe Manning Certificates;
 Certificates of competency of Master and officers;
 International Safety Management certificates;
 ISPS compliance certificates;
 Port State Control / Flag State Inspection report; and
 Sanitation Control certificate.
Every vessel desirous of entering port limits shall communicate to Harbour Master / Port
control with all available means at intervals not exceeding 72 hours and 24 hours prior to
arrival. The communication shall include but not limited to the Estimated Time of Arrival,
vessel particulars including last ports of call, health questions for free pratique as per
International Code of Signals, cargo details, name of consignee and consignor and name of
ship‟s local agent responsible for port dues, indemnity for damage / wreck removal and
Government levy as applicable.
Q.7 a) Explain, how does Salvage is different from Towage?

b) What was the necessity of incorporating SCOPIC clause in LOF-2000,
when special compensation was covered under article 14 of International
Salvage Convention, 1989?
Answer
(a)
The definition of towage is “the employment of one vessel to expedite the voyage of another
when nothing more is required than the accelerating of her progress”suggests that the
dividing line between towage and salvage is crossed as soon as anything more than mere
acceleration is required.
It may perhaps be best to distinguish the two contracts by seeing the main differences
between them.
Differences between towage and salvage can be summarised as follows:
 Need for a contract.

 No need for success.
 Absence of a lien.
 Danger.
 Voluntariness.
Need for a contract

Although there is nothing to prevent one vessel gratuitously giving another a tow, the right of
a tug or other towing vessel to payment always depends on contract whether express or
implied.
Page 127
No need for success

The need for success is a characteristic of salvage, but not of towage. It is a necessary
element of a salvage claim because salvage awards are paid out of, and cannot exceed, the
value of the salved property.
Absence of lien
There is no maritime lien upon the tow for the payment of the price fixed by the towage
contract whereas a salver has a maritime lien over property salved.
Danger
A further distinction is the element of danger. While a situation of danger does not prevent a
mere towage contract, the element of danger is crucial to a successful salvage claim.
Voluntariness
The requirement that the services rendered must be of a voluntary character has been an
obstacle to several categories of claimant, amongst them tug owners.
Can Towage and Salvage Co-exist?
Where a tug is engaged under a towage contract to perform a towage operation that service to
be performed by the tug will not constitute salvage. However where the tug has to perform
some service which is outside and beyond the scope of the towage contract in circumstances
of danger then that will constitute salvage.
(b)
Lloyd's Open Form and the Special Compensation P&I Clause (SCOPIC)
One ofthe advantages of having an agreed form of contract, particularly Lloyd's Open Form
in itsvarious manifestations, is that in an emergency no time need be lost in agreeing the
terms underwhich the salvage services are provided but if no contract has been agreed a claim
for the savingof property may be pursued at common law.
The most widely used salvage contract is Lloyd's Open Form of Salvage Agreementwhich
incorporates the principle of "no cure - no pay".
The Development of Lloyd's Open Form

LOF 80 introduced the first movement away from the principle that remuneration shouldbe
based solely upon the value of property salved. Except perhaps with the agreement of the P&I
clubsconcerned, salvers had not previously been entitled to payment under such
circumstances. LOF 80introduced a new concept. This provided that the ship-owners should
reimburse the salver for hisexpenses, plus a supplement up to an additional 15 per cent which
would be dependent upon thevalue of the result of the salvers' efforts. This term was referred
to as the "safety net" and itsintroduction reflected an ever-increasing awareness worldwide of
the effects of oil pollution onthe environment.
The International Convention on Salvage 1989

Under the Convention the main salvage award is still based upon "no cure no pay", butthe
award will take into account "the skill and efforts of the salvers in preventing or
minimisingdamage to the environment", as well as the traditional factors of salved value,
danger, out ofpocket expenses, success, time, and skill. The basic "no cure no pay" award is
Page 128
dealt with underArticle 13 but the Convention provides a safety net for a salver who has
worked on a ship orcargo which threatens damage to the environment but has failed to earn
sufficient reward underthat Article. In such circumstances, he is entitled to special
compensation under Article 14,based upon the cost of his tugs and personnel and his out-of-
pocket expenses, plus an uplift of30-100 per cent if he has prevented or minimised
environmental damage. The hull and cargo insurers continue to pay Article 13 awards, even if
they are increased because ofenvironmental factors, but the P and I clubs cover Article 14
awards (special compensation).
Difficulties experienced under Articles 13 and 14

A number of problems became apparent with the operation of Articles 13 and 14, some
ofwhich concerned ship-owners and the clubs, and others concerned salvers. Various aspects
of salvage had been considered on a number of occasions by the P&IClubs and their Boards
since the advent of the "safety net" provisions in LOF 1980 heralded theparticipation for the
first time of the P&I clubs in the traditional "no cure no pay" salvagecontract to recognise the
efforts of salvers in attempting to avoid casualties giving rise topollution liabilities.
The development of SCOPIC

Dissatisfaction with the uncertainties of the current system lead to serious
discussionsbetween representatives from leading salvers and a number of P and I clubs and
amongst theclubs themselves. The main provisions of SCOPIC are as follows:
The contractor would have the option to bring into play the special provisions of theSCOPIC
Clause at any time of his choosing, regardless of the circumstances. Hewould not have to
prove an environmental threat and there would be nogeographical restriction. The assessment
of the SCOPIC remunerationcommences from the time of that notice. Prior to the bringing
into play of SCOPIC, the salvage wouldremain on a pure "no cure no pay" basis, without a
safety net. Under Article 14the calculation of the safety net commences with the start of the
salvage.The ship-owner would provide security within two working days in the sum of
$3million. If at any time thereafter the ship-owner believed that this was too much orthe
contractor believed that it was too little, an adjustment to a reasonable sumwould be made.
Upon a failure to provide security within the two working daysthe contractor may withdraw
from the provisions of the SCOPIC Clause andrevert to his rights under Article 14 (that is, a
special compensation, over and above the salvage award, for protecting the marine
environment).
Q.8a) Describe the system of documentary credit for the sale of goods during
shipment?
b)Differentiate between Hague and Hague Visby rules.
Answer
(a)
(b)
Page 129
Q.9 In the adjustment of General Average, explain the extent of admissibility under
the provisions of York-Antwerp Rules 1974 in respect of the following:
i) Rule I – Jettison of cargo.
ii) Rule XI – Wages and maintenance of crew and other expenses bearing up
Answer
(a)
Jettison of cargo
 No jettison of cargo shall be made good as general average, unless such cargo is
carried in accordance with the recognised custom of the trade.
(b)
Wages and maintenance of crew and other expenses bearing up
 Wages and maintenance of master, officers and crew reasonably incurred and fuel and
stores consumed during the prolongation of the voyage occasioned by a ship entering
a port shall be admitted as general average when the expenses of entering such port
are allowable in general average.
 When a ship shall have entered as consequence of accident, sacrifice or other extra-
ordinary circumstances which render that necessary for the common safety, or to
enable damage to the ship caused by sacrifice or accident to be repaired, if the repairs
were necessary for the safe prosecution of the voyage, the wages and maintenance of
the master, officers and crew reasonably incurred during the extra period of detention
in such port until the ship shall or should have been made ready to proceed upon her
voyage, shall be admitted in general average.
 Fuel and stores consumed during the extra period of detention shall be admitted as
general average.
Page 130
NOVEMBER 2013
Page 131
Q.1 Describe the duties and responsibilities of coastal state when a foreign flag vessel
breaches the laws related to territorial sea, contiguous zone and archipelagic
waters as per UNCLOS.
The coastal State may adopt laws and regulations, in conformity with the provisions of this
Convention and other rules of international law, relating to innocent passage through the
territorial sea, in respect of all or any of the following:
 the safety of navigation and the regulation of maritime traffic;

 the protection of navigational aids and facilities and other facilities or installations;
 the protection of cables and pipelines;
 the conservation of the living resources of the sea;
 the prevention of infringement of the fisheries laws and regulations of the coastal
State;
 the preservation of the environment of the coastal State and the prevention, reduction
and control of pollution thereof;
 marine scientific research and hydrographic surveys;
 the prevention of infringement of the customs, fiscal, immigration or sanitary laws
and regulations of the coastal State.
Foreign ships exercising the right of innocent passage through the territorial sea shall comply
with all such laws and regulations and all generally accepted international regulations relating
to the prevention of collisions at sea.
The coastal State shall not hamper the innocent passage of foreign ships through the
territorial sea except in accordance with this Convention. In particular, in the application of
this Convention or of any laws or regulations adopted in conformity with this Convention, the
coastal State shall not:
 impose requirements on foreign ships which have the practical effect of denying or
impairing the right of innocent passage; or
 discriminate in form or in fact against the ships of any State or against ships carrying
cargoes to, from or on behalf of any State.
The coastal State may take the necessary steps in its territorial sea to prevent passage which is
not innocent.In the case of ships proceeding to internal waters or a call at a port facility
outside internal waters, the coastal State also has the right to take the necessary steps to
prevent any breach of the conditions to which admission of those ships to internal waters or
such a call is subject.
Page 132
Q.2 Stipulate (any three of) the provisions under Merchant Shipping Act, 1958 with
respect to the following:
a) Form and contents of agreement under Section 101.
b) Engagement between seamen and masters of ship other than Indian ship
Section 114.
c) Master to take charge of effects of deceased seamen – Section 152.
d) Entries which are required to be made in official log books – sec 214.
Answer
(a)
Form and contents of the agreement
An agreement with the crew shall be in the prescribed form, and shall be dated at the time of
the first signature thereof, and shall be signed by the owner or agent and the master before
any seaman signs the same.
The agreement with the crew shall contain as terms thereof the following particulars, namely:
 the name of the ship or ships on board which the seaman undertakes to serve;
 either the nature and, as far as practicable, the duration of the intended voyage or
engagement or the maximum period of the voyage or engagement, and the places or
parts of the world, if any, to which the voyage or engagement is not to extend;
 the number and description of the crew of different categories in each department;
 the time at which each seaman is to be on board or to begin work;
 the capacity in which each seaman is to serve;
 the amount of wages which each seaman is to receive;
 a scale of the provisions which are to be furnished to each seaman, such scale being
not less than the scale fixed by the Central Government and published in the Official
Gazette;
 a scale of warm clothing and a scale of additional provisions to be issued to each
seaman during periods of employment in specified cold regions;
(b)
Engagements between seamen and masters of ships other than Indian ships
 When the master of a ship other than an Indian ship engages a seaman at any port in
India to proceed to any port outside India, he shall enter into an agreement with such
seaman, and the agreement shall be made before a shipping master.
 The master of a ship other than an Indian ship shall give to the shipping master a bond
with the security of some approved person resident in India for such amount as may
be fixed by the Central Government in respect of each seaman engaged by him at any
port in India and conditioned for the due performance of such agreement, and for the
repayment to the Central Government of all expenses which may be incurred by it in
respect of any such seaman who is discharged or left behind at any port out of India
and becomes distressed and is relieved (this bond is provided by the ship owner).
Page 133
(c)
Master to take charge of the effects of deceased seamen
 If any seaman or apprentice engaged on any ship, the voyage of which is to terminate
in India, dies during that voyage, the master of the ship shall report the death to the
next-of-kin of the seaman or apprentice and to the shipping master at his port of
engagement and shall take charge of any money or effects belonging to the seaman or
apprentice which are on board the ship.
 The master shall thereupon enter in the official log book the following particulars,
namely:
 a statement of the amount of money and a detailed description of the other

effects;
 a statement of the sum due to the deceased for wages and of the amount of
deduction, if any, to be made from the wages.
 The said money, balance of wages and other effects are in this Act referred to
as the property of the seaman or apprentice.
(d)
Entries required to be made in official log books
inflicted;
inflicted;
declining;
the voyage;
Page 134
Q.3 a) Write down contents of SOPEP as to MARPOL Annex – I

b) Describe in brief, different types of standards (exchange & performance)
laid down in Ballast water convention for removal of alien micro
organisms.
Answer
(a)
(b)
Ballast-water exchange at sea is not considered an ideal method of ballast-water

management, and considerable efforts are being made to develop treatment methods. These
methods must be in accordance with Standard D-2 of the IMO‟s Ballast Water Management
Convention.Standard D2 specifies that treated and discharged ballast water must have:
 fewer than ten viable organisms greater than or equal to 50 micrometers in minimum
dimension per cubic metre
 fewer than ten viable organisms less than 50 micrometres in minimum dimension and
greater than or equal to 10 micrometers in minimum dimension per millilitre
In addition, Standard D2 specifies that your discharge of the indicator microbes shall not
exceed specified concentrations as follows:
 toxicogenic vibrio cholerae (O1 and O139) with less than one colony-forming unit
(cfu) per 100 millilitres or less than 1 cfu per 1 gram (wet weight) zooplankton
samples
 escherichia coli less than 250 cfu per 100 millilitres
 intestinal enterococci less than 100 cfu per 100 millilitres
These are the indicator microbes, as a human health standard, but they are not limited to these
types.
Options being considered for ballast-water treatment include:
 mechanical filtration and separation

 treatment methods such as sterilisation
 chemical treatment
 a combination of these methods
Q.4 a)Describe the significance of documentary credit system in shipping – trade.

b)Differentiate between Voyage Charter & Time Charter.
Answer
(a)
Page 135
(b)
Q.5 Explain the roles and responsibilities of flag state and port state as laid down in
MLC 2006.
Title 5 of MLC addresses the following issues:
Flag State responsibilities -To define the nationalFlag State requirements - the inspection and
certification of vessels against the new Convention andnational requirements - for having
procedures for handling seafarers‟complaints. Each Member State shall ensure that on ships
that fly its flag there are on board procedures for the fair, effective and expeditious handling
of seafarers‟complaints alleging breaches of the requirements of the Convention (including
seafarers‟rights). Complaints policy / procedures (copy to seafarers) must contain the contact
information for competent authority in flag state.
Port State responsibilities -The inspection of its own national flagged vessels in port -To
enforce the new Convention standards on foreign flagged ships under the „no more
favourable treatment‟ requirement of the Convention - for having procedures for handling
seafarers‟complaints made on shore.
Where there are grounds to believe that deficiencies constitute a serious breachof the
requirements of the Convention (including seafarers‟rights), or represent a significant danger
to seafarers‟safety, health or security, inspectors are empowered to prohibit the ship from
leaving port until necessary actions are taken.
Onboard complaints procedures
Seafarers have the right to complain directly to the master and,where they consider it
necessary, to appropriate external authorities. Any complaint procedure used has to ensure
confidentiality and safeguard against possible victimisation of the seafarer filing the
complaint.
Q.6 Explain following with respect to Salvage convention:

a) Art 12: condition for reward b)Art 13:Criteria for reward
c)Art 14: Special Compensation.
Article 12 - Conditions for reward
 Salvage operations which have had a useful result give right to a reward.
 Except as otherwise provided, no payment is due under this Convention if the salvage
operations have had no useful result.
 This provision shall apply, notwithstanding that the salved vessel and the vessel
undertaking the salvage operations belong to the same owner.
Page 136
Article 13 - Criteria for fixing the reward
The reward shall be fixed with a view to encouraging salvage operations, taking into account
the following criteria without regard to the order in which they are presented below:

 the skill and efforts of the salvers in preventing or minimizing damage to the
environment;
 the availability and use of vessels or other equipment intended for salvage operations;
 the state of readiness and efficiency of the salver's equipment and the value thereof.
The rewards, exclusive of any interest and recoverable legal costs that may be payable
thereon, shall not exceed the salved value of the vessel and other property.
Article 14 - Special compensation
 If the salver has carried out salvage operations in respect of a vessel which by itself or
its cargo threatened damage to the environment and has failed to earn a reward under
article 13, he shall be entitled to special compensation from the owner of that vessel
equivalent to his expenses.
 If, the salver by his salvage operations has prevented or minimized damage to the
environment, the special compensation payable by the owner to the salver may be
increased up to a maximum of 30% of the expenses incurred by the salver. However,
the tribunal, if it deems it fair and bearing in mind the relevant criteria set out in
article 13, may increase such special compensation further, but in no event shall the
total increase be more than 100% of the expenses incurred by the salver.
 The total special compensation shall be paid only if and to the extent that such
compensation is greater than any reward recoverable by the salver under article 13.
 If the salver has been negligent and has thereby failed to prevent or minimize damage
to the environment, he may be deprived of the whole or part of any special
compensation due under this article.
Page 137
Q.7 Write short notes on the following as per Marine Insurance Act:
a) Floating policy b) Subrogation c) Sue and Labour clause
Answer
(a)
Floating policy
 A floating policy is a policy which describes the insurance in general terms, and
leaves the name or names of the ship or ships and other particulars to be defined by
subsequent declaration.
 The subsequent declaration or declarations may be made by endorsement on the
policy, or in other customary manner.
 Unless the policy otherwise provides, the declarations must be made in the order of
dispatch or shipment.
 They must, in the case of goods, comprise all consignments within the terms of the
policy, and the value of the goods or other property must be honestly stated, but an
omission or erroneous declaration may be rectified even after loss or arrival, provided
the omission or declaration was made in good faith.
 Unless the policy otherwise provides, where a declaration of value is not made until
after notice of loss or arrival, the policy must be treated as an unvalued policy as
regards the subject-matter of that declaration.
 Construction policy or builder‟s policy: Insures vessel while in course of construction,
usually from the time of keel laying until completion of trials and handing over to
owner of the vessel.
(b)
Closely connected with the concept of insurable interest is the principle of indemnity,
under which the assured is entitled to be compensated precisely to the extent of the loss
he has suffered as a result of the occurrence of an event against which the insurer has
agreed to protect him. In other words, the assured is not permitted to make a profit on
the insurance.'
Subrogation
From the doctrine of indemnity two rules are derived. The first is that where the insurer
settles for a total loss the assured must abandon what is left of the thing insured to the
underwriter. The other rule is expressed in the doctrine of subrogation. Under this
doctrine, if the loss or damage is occasioned through the negligence or other unlawful
act of a third party, so that the assured can claim damages, or if the assured has a
contractual right to compensation, then the Insurer IS entitled to take over such rights
on settling the loss.
Page 138
(c)
Sue and Labour Clause (Duty of Assured)
By the terms of this clause, when the subject matter insured is likely to be lost or damaged,
the assured is expected to act as if he was uninsured and take measures, and if necessary
spend money, to try to avert or minimize any loss which might be recoverable under the
policy.
 In case of any loss or misfortune it is the duty of the assured to take such measures as
may be reasonable for the purpose of averting or minimizing a loss which would be
recoverable under this insurance.
Q.8 Describe the contents of convention on limitation of liability for maritime claims
(LLMC).
Answer
Q.9. a) Explain the provisions of convention on intervention at high seas.

b) Write down the contents of following certificates:
i) Cargo ship Safety equipment certificate.
ii) International load-line certificate.
Answer
(a)
(b)
TO DO
Page 139
JANUARY 2014
Page 140
Q.1Under the provisions of UNCLOS 1982, to which India is party, explain the
following:
a)Nationality of Ships – Article 91.
b)Territorial sea, contiguous zone and continental shelf.
Answer
(a)
Nationality of Ships
 Every State shall fix the conditions for the grant of its nationality to ships, for the
registration of ships in its territory, and for the right to fly its flag.
 Ships have the nationality of the State whose flag they are entitled to fly. There
mustexist a genuine link between the State and the ship.
 Every State shall issue to ships to which it has granted the right to fly its flag
documents to that effect.
(b)
Q.2a) Describe the general requirements for carriage of navigational equipments on

board ships of 10000 GT and above as per SOLAS 1974 as amended.
b)List the log book entries to be made regarding steering gear and emergency drills
as per SOLAS.
Answer
(a)
All ships irrespective of size shall have:
 a properly adjusted standard magnetic compass, or other means, independent of any

power supply to determine the ship's heading and display the reading at the main
steering position;
 a pelorus or compass bearing device, or other means, independent of any power
supply to take bearings over an arc of the horizon of 360°;
 means of correcting heading and bearings to true at all times;
 nautical charts and nautical publications to plan and display the ship's route for the
intended voyage and to plot and monitor positions throughout the voyage; an
electronic chart display and information system (ECDIS) may be accepted as meeting
the chart carriage requirements;
 back-up arrangements to meet the functional requirements of subparagraph .4, if this
function is partly or fully fulfilled by electronic means;
 receiver for a global navigation satellite system or a terrestrial radio-navigation
system, or other means, suitable for use at all times throughout the intended voyage to
establish and update the ship's position automatic means;
Page 141
 if less than 150 gross tonnage and if practicable, a radar reflector, or other means, to
enable detection by ships navigating by radar at both 9 and 3GHz;
 when the ship's bridge is totally enclosed and unless the Administration determines
otherwise, a sound reception system, or other means, to enable the officer in charge of
the navigational watch to hear sound signals and determine their direction;
 a telephone, or other means, to communicate heading information to the emergency
steering position, if provided.
All ships of 150 gross tonnage and upwards and passenger ships irrespective of size shall, in
addition to the above requirements, be fitted with:
 a spare magnetic compass interchangeable with the magnetic compass, by means of

replacement or duplicate equipment;
 a daylight signalling lamp, or other means to communicate by light during day and
night using an energy source of electrical power not solely dependent upon the ship's
power supply.
 All ships of 300 gross tonnage and upwards and passenger ships irrespective of size
shall, in addition to meeting the requirements of paragraph 2.2, be fitted with:
 an echo sounding device, or other electronic means, to measure and display the
available depth of water;
 a 9 GHz radar, or other means to determine and display the range and bearing of radar
transponders and of other surface craft, obstructions, buoys, shorelines and
navigational marks to assist in navigation and in collision avoidance;
 an electronic plotting aid, or other means, to plot electronically the range and bearing
of targets to determine collision risk;
 speed and distance measuring device, or other means, to indicate speed and distance
through the water;
 a properly adjusted transmitting heading device, or other means to transmit heading
information for input to the equipment.
All ships of 300 gross tonnage and upwards engaged on international voyages and cargo
ships of 500 gross tonnage and upwards not engaged on international voyages and passenger
ships irrespective of size shall be fitted with an automatic identification system (AIS).
All ships of 500 gross tonnage and upwards shall, in addition to meeting the above
requirements have:
 a gyro compass, or other means, to determine and display their heading by ship-borne
non-magnetic means and to transmit heading information for input to the equipment
 a gyro compass heading repeater, or other means, to supply heading information
visually at the emergency steering position if provided;
 a gyro compass bearing repeater, or other means, to take bearings, over an arc of the
horizon of 360°, using the gyro compass or other means
 rudder, propeller, thrust, pitch and operational mode indicators, or other means to
determine and display rudder angle, propeller revolutions, the force and direction of
thrust and, if applicable, the force and direction of lateral thrust and the pitch and
operational mode, all to be readable from the conning position; and
 an automatic tracking aid, or other means, to plot automatically the range and bearing
of other targets to determine collision risk.
Page 142
All ships of 10,000 gross tonnage and upwards shall, in addition to meeting the above
requirements have:
 an automatic radar plotting aid, or other, means, to plot automatically the range and
bearing of at least 20 other targets, connected to a device to indicate speed and
distance through the water, to determine collision risks and simulate a trial
manoeuvre;
 a heading or track control system, or other means, to automatically control and keep
to a heading and/or straight track.
(b)
Steering Gear
Within 12hours before departure, the ship's steering gear shall be checked and tested by the
ship's crew. The test procedure shall include, where applicable, the operation of the
following:
 the main / auxiliary steering gear.

 the remote steering gear control systems.
 the steering positions located on the navigating bridge.
 the emergency power supply.
 the rudder angle indicators in relations to the actual positions of the rudder.
 the remote steering gear control system power failure alarms.
 the steering gear power unit failure alarms.
 the automatic isolating arrangements and other automatic equipment.
The checks and tests shall include:
 the full movement of the rudder according to the required capabilities of the steering
gear;
 a visual inspection of the steering gear and its connecting linkages,
 the operation of the means of communications between the navigating bridge and the
steering gear compartment.
The date upon which the checks and tests are carried out and the date and details of the
emergency steering drills carried out, shall be recorded in thelog book as may be prescribe by
the administration.
Q.3a)What are the objectives of “London Dumping Convention”? How are these
objectives achieved?
b)Explain the entries to be made in cargo record book for chemical cargoes as per
MARPOL Annex II.
Answer
The objective of the London Convention and Protocol is to promote the effective control of
all sources of marine pollution. Contracting Parties shall take effective measures to prevent
pollution of the marine environment caused by dumping at sea.
Page 143
The purpose of the London Convention is to control all sources of marine pollution and
prevent pollution of the sea through regulation of dumping into the sea of waste materials. A
so-called "black- and grey-list" approach is applied for wastes, which can be considered for
disposal at sea according to the hazard they present to the environment. For the blacklist
items dumping is prohibited. Dumping of the grey-listed materials requires a special permit
from a designated national authority under strict control and provided certain conditions are
met. All other materials or substances can be dumped after a general permit has been issued.
The purpose of the Protocol is similar to that of the Convention, but the Protocol is more
restrictive: application of a "precautionary approach" is included as a general obligation; a
"reverse list" approach is adopted, which implies that all dumping is prohibited unless
explicitly permitted; incineration of wastes at sea is prohibited; export of wastes for the
purpose of dumping or incineration at sea is prohibited. Extended compliance procedures and
technical assistance provisions have been included, while a so-called transitional period
allows new Contracting Parties to phase in compliance with the Protocol over a period of five
years, provided certain conditions are met.
(b)
Cargo record book
After completion of any operation it shall be promptly recorded in the Cargo Record Book. In
the event of an accidental discharge of a noxious liquid substance an entry in ENGLISH
shall be made in the Cargo Record Book stating the circumstances of, and the reason for, the
discharge.
Each entry shall be signed by the officer or officers in charge of the operation concerned and
each page shall be signed by the master of the ship. The Cargo Record Book shall be kept in
such a place as to be readily available for inspection. It shall be retained for a period of three
years after the last entry has been made. The competent authority of the Government may
inspect the Cargo Record Book on board any ship to which this Annex applies while the ship
is in its port, and may make a copy of any entry in that book and may require the master of
the ship to certify that the copy is a true copy of such entry. Any copy so made which has
been certified by the master of the ship as a true copy of an entry in the ship‟s Cargo Record
Book shall be made admissible in any judicial proceedings as evidence of the facts stated in
the entry. The inspection of a Cargo Record Book and the taking of a certified copy by the
competent authority under this paragraph shall be performed as expeditiously as possible
without causing the ship to be unduly delayed.
Entries in the Cargo Record Book are required only for operations involving Categories
X,Y,Z substances.Other Substances carried in bulk are not subject to the provisions of this
Annex as they are not in the Pollution Category column of chapters 17 of IBC Code and it is
NOT necessary to enter in the Cargo Record Book (i.e. Molasses, Clay slurry, Apple juice
etc.
The Cargo Record Book shall be completed, on a tank-to-tank basis, whenever any of the
following operations with respect to a noxious liquid substance take place in the ship:
 loading of cargo
Page 144
 internal transfer of cargo

 unloading of cargo
 cleaning of cargo tank
 ballasting of cargo tanks
 disposal of residues to reception facilities
 discharge of ballast from cargo tanks
Q.4 Discuss the salient features of the Athens Convention regarding liability for
carriage of passengers and their luggage.
Answer
Q.5 Enumerate the salient features of ILO Maritime Labour Convention 2006.
Answer
Q.6a) Write a note on Maritime Declaration of Health.

b)State the provisions of MSA 1958 regarding seaworthiness of ship and general
offences against discipline.
Answer
(a)
A Maritime Declaration of Health is the form used to provide informationabout the health
conditions on board during the voyage and the health status of passengers and crew. It covers:
 details of the ship

 status of any Ship Sanitation Certification
 number of passengers
 previous ports visited
 health questions, including whether:
 anyone has died on board
 anyone is sick
 there is any case of disease which could be infectious
 there is any condition that could lead to the spread of disease.
This information ensures compliance with the International Health Regulations 2005.
A Maritime Declaration of Health must be completed by the Master of the vessel. It should
be delivered to the Medical Officer of Health or a health protection officer. In practice,
completed Maritime Declarations of Health are sent to the vessel‟s agent for forwarding to
health authorities, or given to a Customs or Ministry for Primary Industries agent to forward.
Page 145
(b)
Q.7 Trace the historical importance of LLMC 1976 Convention. Explain briefly the
contents of LLMC 1976 Convention.
Answer
The International Maritime Organization (IMO) first set limits on maritime accident liability
in 1957 with the Convention Relating to the Limitation of the Liability of Owners of
Seagoing Ships.
In 1976, the Convention on Limitation of Liability for Maritime Claims (LLMC) came into
force with much higher liability limits. In some cases the amounts were two or three times the
amounts specified in the earlier convention.
Environmental standards had improved or been implemented for the first time in some
regions during these years. The growing public knowledge of pollution and its impact on the
environment mirrored sentiments around the world. Also, medical treatments of potential
victims were also becoming more elaborate and expensive at this time and contributed to the
potential exposure of ship owners. The cost controls put in place try and balance personal
protections with the responsibilities of a ship owner. With ongoing unlimited risk much of the
financing for new ships would be unavailable except as a high risk product. This gave birth to
the LLMC, 1976.
Loss of Life or Injury
Loss of life and personal injury is one of two types of claims made under the LLMC. The
1976 Convention set the maximum liability for ships 500 gross tons and under at 333,000
SDR. Special Drawing Rights, or SDR, is a type of financial instrument used by the
International Monetary Fund.In the 2004 version of the LLMC the maximum liability for loss
of life or injury was raised to 2 million SDR. At the same time larger ships were also
included when the maximum gross tonnage was raised to 2000 tons.
Larger ships were subject to the following amounts before June 8, 2015:
 For each ton from 2,001 to 30,000 tons, 800 SDR

 For each ton in excess of 70,000, 400 SDR
New limits after June 8, 2015:
 Less than 2000 tons 3.02 million SDR

 For each ton from 2,001 to 30,000 tons, 1,208 SDR
Page 146
Property Claims
The 1976 version of the LLMC set the limit for property liability at 167,000 SDR for ships
less than 500 gross tons. Additional amounts for larger vessels were calculated at the rates
below until the new LLMC limits were put in place June 8, 2015. These amendments were
known as the 1996 protocol.

New limits effective June 8, 2015 raise the total liability for property claims.
 Less than 2000 gross tons 1.51 million SDR

 For each ton in excess of 70,000 tons, 302 SDR
Q.8 Describe the important constituents of Voyage Charter Party & Time Charter
Party.
A charter party is a document of contract by which a ship-owner agrees to lease, and the
charterer agrees to hire, a vessel or all the cargo space, or a part of it, on terms and conditions
forth in the charter party. If permitted to do so by the terms of charter party, they may enter
into subcontracts with other shippers.
Time Charter Party and Voyage Charter Party
Voyage Charter Part - This is a charter party for the carriage of a full cargo, not for a period
of time, but at a stipulated rate per ton, for one voyage only, between named ports to be
named on arrival in a given area. It is a frequently used charter party of which there are many
varieties, and most commodities and trades have a particular type to suit their purposes.
In a voyage charter party the charterer assumes no responsibility for the operation of the
vessel but generally pays stevedoring expenses in and out. A statement to that effect will be
included in the charter party.The master is particularly concerned with voyage charter parties
because of the lay-time, dispatch and demurrage clauses and the necessity of tendering the
Notice of Readiness to load or discharge. In this type of charter the charterer contracts to
provide a cargo at given rate per day. The charter is generally for bulk cargo, stipulated in
tons or cubic feet, for all or part of the carrying capacity of the vessel.
A time charter party is a contract whereby the lesser places a fully equipped and manned ship
at the disposal of the lessee for a period of time for a consideration called hire. The lesser
may be the ship owner or demise charterer and the time charterer will be the lessee. The hire
is payable at specified intervals during the term of the charter. On the other hand, a “time
charter for a trip” is a time charter for a particular voyage or voyages. In such a case, the
lesser places the fully equipped and manned ship with the lessee till the completion of the
voyage. In such charter, hire is paid at periodic intervals.
Page 147
Differences between Time and Voyage Charter-parties
A charter-party is a contract between two parties for either hiring the service of a ship for an
agreed period of time to carry a number of cargoes, or for a single voyage to carry a number
of cargoes from port A to port B. The two parties to the charter-party are the owner of the
vessel and the charterer. The owner may be the actual registered owner of the vessel or he
may be the “demise” owner, having hired the vessel from the real owner on a long-term basis
(this is also called a demise or bareboat charter-party). The charterer may use the vessel to
carry his own cargoes or to carry cargo on behalf of others. In the following, the main
differences between a voyage and a time charter-party will be described.
A voyage charter-party, compared to the time charter-party, is an agreement where the owner
performs a designated voyage in return for the payment of freight. All operational and non-
operational costs remain with the ship-owner. Usually the charterer is responsible and pays
for cargo handling.Comparing both types of charter-parties, it is important to notice that there
is a difference in the allocation of risks. Under a voyage charter-party, payment of freight is
calculated in accordance with the amount, usually expressed in metric tonnes, of cargo loaded
on board. All delays during a voyage charter-party lower the value of the received freight.
Therefore, the risk of delay falls on the owners. An exception is the time during loading and
discharging operation. To the contrary, under a time charter, the risk of delay falls on the
charterer. The received payment of hire is calculated in accordance with time in which the
charterer has the right to issue voyage orders.
Q.9 Explain the following terms:

1) Perils of the Sea
2) Sue & Labour Clause
3) Implied & Express Warranty
4) New Jason clause
Answer
Page 148
MAY 2014 – 1
Page 149
Q.1 Discuss the rights of the Coastal State Authority in Territorial sea and the
Contiguous zone & the navigable right available to foreign flag vessel in these zones?
Answer
PLEASE REFER TO PREVIOUS ANSWER – Q. 4 (c) of May 2012 ALONG WITH

THE DIAGRAM DONE IN CLASS. THIS QUESTION ALSO REQUIRES „RIGHT
TO INNOCENT PASSAGE‟, WHICH SHOULD BE WRITTEN AS DONE IN THE
CLASS.
Q.2 Enumerate the recent amendments to SOLAS 1974 which were adopted in last
three years.
Answer
Q.3 Describe the following:

a) Contents of SOPEP.
b) Entries to be made in Oil Record Book Part I and Part II
c) Contents and validity of IOPP certificate and supplements.
Answer
(a)
(b)
PART I - Machinery Space Operations
(A) Ballasting or Cleaning of Oil Fuel Tanks

(B) Discharge of Dirty Ballast or Cleaning Water from Oil Fuel Tanks Referred to Under
Section (A)
(C) Collection, Transfer and Disposal of Oil Residues (Sludge and Other Oil Residues)
NOTES: Only those tanks listed in Forms A and B of the Supplement to the IOPP Certificate
used for oil residues (sludge). The ship‟s master should obtain from the operator of the
reception facilities, which includes barges and tank trucks, a receipt or certificate detailing
the quantity of tank washings, dirty ballast, residues or oily mixtures transferred, together
with the time and date of the transfer. This receipt or certificate, if attached to the Oil Record
Book Part I, may aid the master of the ship in proving that the ship was not involved in an
alleged pollution incident. The receipt or certificate should be kept together with the Oil
Record Book Part I.
(D) Non-Automatic Starting of Discharge Overboard, Transfer or Disposal Otherwise of

Bilge Water which has accumulated in Machinery Spaces
Page 150
(E) Automatic Starting of Discharge Overboard, Transfer or Disposal Otherwise of Bilge

Water which has accumulated in Machinery Spaces
(F) Condition of the Oil Filtering Equipment
(G) Accidental or Other Exceptional Discharges of Oil
(H) Bunkering of Fuel or Bulk Lubricating Oil
ADDITIONAL OPERATIONAL PROCEDURES AND GENERAL REMARKS
PART II – Cargo / Ballast Operations

(A) Loading of Oil Cargo
(B) Internal Transfer of Oil Cargo During Voyage
(C) Unloading of Oil Cargo
(D) Crude Oil Washing (COW Tankers Only) (To be completed for each tank being crude
oil washed).
(E) Ballasting of Cargo Tanks
(F) Ballasting of Dedicated Clean Ballast Tanks (CBT Tankers Only)
(G) Cleaning of Cargo Tanks
(H) Discharge of Dirty Ballast
(c)
Contents of IOPP Certificate
APPENDIX I International Oil Pollution Prevention Certificate for Oil Tankers
APPENDIX II International Oil Pollution Prevention Certificate for Ships Other than Oil
Tankers
1. Each of the oil pollution and prevention certificates listed above shall be supplemented by
a Record of Construction and Equipment.
2. Any reference in this Schedule to a regulation means that in the IOPP Certificate a
regulation of that number in Annex I of the Convention.
3. Any reference in this Schedule to a Resolution means a reference to a Resolution of that

number published by the Organization.
4. In this Schedule:
 SBT means segregated ballast tanks;

 PL means protective location;
 COW means crude oil washing;
 CBT means clean ballast tanks.
Page 151
SUPPLEMENT TO THE INTERNATIONAL OIL POLLUTIONPREVENTION

CERTIFICATE (IOPP Certificate)
Record of Construction and Equipment for Oil Tankers
 Status of ship (this relates to the age of the ship – new tanker or existing tanker).
 Type of ship.
EQUIPMENT FOR THE CONTROL OF OIL DISCHARGE FROM MACHINERY SPACE

BILGES AND OIL FUEL TANKS
 Carriage of ballast water in oil fuel tanks

 Type of oil filtering equipment fitted
 Approval standards - The separating / filtering system
 Maximum throughput of the system is ............................................................... m3/h
 The ship is fitted with holding tank(s) having a volume of .......... m3 for the total
retention on board of all oily bilge
water.....................................................................................
 In lieu of the holding tank the ship is provided with arrangements to transfer bilge
water to the slop
tank..............................................................................................................
Validity of IOPP Certificate is FIVE Years.
Q.4Explain the following Charter Party terms:

a)Off hire b)Safe berth c)Demurrage/Dispatch d) NOR
e)Lay time and reversible lay time
Answer
(a)
General concept of the time charter is that the owners let and the time charterers hire the use
and services of the vessel for the carriage of specified cargo in bulk and/or
lawfulmerchandise in consideration of punctual advancedpayment of hire during contracted
period of time.Therefore, unless expressly stated otherwise, the charterer‟s primary obligation
is to pay hire continuously until redelivery or unless he can bring himself within the
exceptions.
For off-hire event to start it is necessary that service of the vessel must be interrupted by one
of the causes mentioned in the governing off-hire provision. The charterer bear the burden of
proof to show that the shipowner has been unable to perform the services required of it by the
charterer.
(b)
The question of whether a berth is "safe" is mainly a matter of common sense. Safety must be
decided by reference to the particular vessel in question. For example, the ship must be able
Page 152
to call at a loadport or disport without grounding. This is the case whether it is laden or not,
and, if it is necessary to lighten the vessel so that it can come alongside the berth, the berth
may be unsafe. The most important factor is that the safety must be decided by reference to
the particular vessel in question.
(c)
(d)
NOR - When on a voyage charter it is the master's responsibility to advise the charterer or his
agent, in writing, as soon as the vessel is in all respects ready to load or discharge. This advice is
given in the form of a Notice of Readiness (NOR) tendered to the charterer or his agent. In some
cases when a vessel is to load and she is expected at a definite hour, the company or its agent at
the port may tender the NOR. This is especially true if it is not required to get free pratique or to
clear Customs.It is from the moment the NOR has been accepted that the lay-days commence,
provided the ship fulfils the following conditions:
 provided she is considered as an "arrived ship", that is, she is berthed or anchored at the
place shown in the contract of carriage, and has received free pratique;
 provided she is in all respects fit to load or discharge;
 provided the notice has been delivered to the shippers or receivers;
 provided the notice has been accepted.
(e)
Lay-time means the period of time agreed between the parties during which the owner will
make and keep the Vessel available for loading or discharging without payment additional to
the freight.REVERSIBLE LAYTIME means an option given to the charterer to add together
the time allowed for loading and discharging. Where the option is exercised the effect is the
same as a total time being specified to cover both operations.
Q.5a) State the relevant sections of MLC 2006 concerning Recruitment and Placement
services, Social security provisions and Medical care on-board and ashore for
seafarers.
b)Enumerate and briefly describe all the documents recommended to be carried
by a vessel under FAL convention.
Answer
(a)
(b)
Page 153

Q.6Discuss the term “seaworthiness” from the perspective of:
a)Statutory provisions regarding carriage of goods;
b)Provisions in the Merchant Shipping Act, 1958 regarding safety of life at sea;
c)Contracts of insurance
Answer
(a)
Seaworthiness as it relates to ocean carriage is one of the most important concepts in

admiralty law. Since the advent of shipping, cargo owners have been interested in having
their goods carried on seaworthy vessels. The same is true today. Seaworthiness was
originally used in maritime law to describe the condition of the ship's hull. This meaning has
since been broadened.
Seaworthiness is a relative term. Its definition depends upon its application to the type of
vessel involved and the nature of the cargo carried on the contemplated voyage. The vessel
must be staunch, strong and well-equipped for the intended voyage and manned by a
competent crew and skilled master. Moreover, the vessel must be capable of safely receiving
the intended cargo and carrying it to destination in an undamaged condition. Therefore,
unless the vessel is reasonably fit to carry its cargo, it is unseaworthy. The important point is
that the shipowner's obligation to provide a seaworthy vessel is absolute – meaning that he
has to ensure this,
(b)
In every contract of service, express or implied between the owner of an Indian ship and the
master or any seaman thereof, and in every contract of apprenticeship whereby any person is
bound to serve as an apprentice on board any such ship, there shall be implied, an obligation
on the owner that such owner and the master charged with the loading of such ship or the
preparing thereof for sea, shall use all reasonable means to ensure the seaworthiness of such
ship for the voyage at the time when such voyage commences, and to keep her in a seaworthy
state during the voyage.
For the purpose of seeing that the provisions of seaworthiness have been complied with, the
Central Government may, either at the request of the owner or otherwise, arrange for a survey
of the hull, equipment or machinery of any seagoing ship by a surveyor.
(c)
A ship is seaworthy when she is in a fit state as to repairs, equipment, and crew, and in all
other respects, to encounter the ordinary perils of the voyage insured at the time of sailing
upon it. The issue of un-seaworthiness also arises between shipper and shipowner; but the
definition of seaworthiness in such cases has to be distinguished from un-seaworthiness in the
insurance context. A ship might be seaworthy as between insurer and ship-owner, though
unseaworthy as between ship-owner and shipper of a particular cargo, e. g frozen meat which
requires special freezing apparatus, though that does not affect the safety of the ship.
Page 154
Page 155
Q.7a)What are the responsibilities of Master and salver during a salvage operation?
b)Explain the contents and clauses of LOF 2011.
Answer
(a)
Responsibilities of the salver
The salver shall owe a duty to the owner of the vessel or other property in danger:
 to carry out the salvage operations with due care;
 in performing the duty specified in subparagraph (a), to exercise due care to
prevent or minimize damage to the environment;
 whenever circumstances reasonably require, to seek assistance from other
salvers; and
 to accept the intervention of other salvers when reasonably requested to do so by
the owner or master of the vessel or other property in danger; provided however
that the amount of his reward shall not be prejudiced should it be found that such
a request was unreasonable.
Responsibilities of the owner and master
The owner and master of the vessel or the owner of other property in danger shall owe a duty
to the salver:
 to co-operate fully with him during the course of the salvage operations;
 in so doing, to exercise due care to prevent or minimize damage to the
environment; and
 when the vessel or other property has been brought to a place of safety, to accept
redelivery when reasonably requested by the salver to do so.
(b)
Contractors‟ basic obligation
The Contractors, as identified, hereby agree to use their best endeavours to salve the property
specified and to take the property to the place stated or to such other place as may hereafter
be agreed. If no place is agreed upon and in the absence of any subsequent agreement as to
the place where the property is to be taken the Contractors shall take the property to a place
of safety.
Environmental protection
While performing the salvage services the Contractors shall also use their best endeavours to
prevent or minimise damage to the environment.
SCOPIC Clause
Unless the word “No” in the relevant Section has been deleted, this agreement shall be
deemed to have been made on the basis that the SCOPIC Clause is not incorporated and
forms no part of this agreement.
Page 156
Effect of other remedies
Subject to the provisions of the International Convention on Salvage 1989 relating to special
compensation and to the SCOPIC Clause, if incorporated, the Contractors services shall be
rendered and accepted as salvage services upon the principle of “no cure - no pay” and any
salvage remuneration to which the Contractors become entitled shall not be diminished by
reason of the exception to the principle of “no cure - no pay” in the form of special
compensation or remuneration payable to the Contractors under a SCOPIC Clause.
Duties of property owners
Each of the owners of the property shall cooperate fully with the Contractors. In particular:
 the Contractors may make reasonable use of the vessel's machinery gear and
equipment free of expense provided that the Contractors shall not unnecessarily
damage abandon or sacrifice any property on board;
 the Contractors shall be entitled to all such information as they may reasonably
require relating to the vessel or the remainder of the property provided such
information is relevant to the performance of the services and is capable of being
provided without undue difficulty or delay;
 the owners of the property shall co-operate fully with the Contractors in obtaining
entry to the place of safety.
Rights of termination
When there is no longer any reasonable prospect of a useful result leading to a salvage reward
in accordance with Convention Articles 12 and/or 13, either the owners of the vessel or the
Contractors shall be entitled to terminate the services by giving reasonable prior written
notice to the other.
Deemed performance
The Contractors' services shall be deemed to have been performed when the property is in a
safe condition in the place of safety as stated.
Q.8Write short notes on the following:

a)Evolution of Carriage of Goods by Sea Act (COGSA) over the years.
b)Due diligence by ship owner with respect to seaworthiness under article III of
COGSA (Hague Visby Rules 1968).
Answer
(a)
The Carriage of Goods by Sea Act (COGSA) is a United Statesstatute governing the rights
and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to
and from the United States. It is the U.S. enactment of the International Convention
Regarding Bills of Lading, commonly known as the "Hague Rules".
Page 157
At the time of development of COGSA, most cargo was shipped in boxes, crates, and bags.
Shortly after it coming into existence, cargo owners determined that cargo could be handled
more efficiently if placed on pallets, a process that results in numerous boxes or bags of cargo
being consolidated on a single pallet. Ship-owners, seeing an opportunity to reduce their
liability for cargo damage, argued to the courts that the pallets were now "packages" and that
they were entitled to limit their liability to $500 per pallet. Later on, the ship-owners, began
arguing that the containers were "packages" and that they could limit their liability to $500
per container, even though the contents of a container may be valued at over $500,000.
It is this imbalance, both in the relative bargaining power of cargo owners, and the superior
bargaining power of ship-owners, and the imbalance between $500 per container and the true
value of a shipment which has led to countless lawsuits and judicial opinions over the
"package limitation" problem.The rest of the world, seeing this as an attempt by ship-owners
to free themselves from responsibility for protecting cargo, amended the Hague Rules in 1968
with the Visby Amendments which eliminated the "per package" limitation and substituted a
limitation per kilogram. In so doing, litigation concerning limitations on liability became
virtually non-existent outside the United States.
(b)
Care of the cargo under Hague or Hague/Visby Rules is a stringent obligation, because it
states that the carrier shall "properly and carefully" care for the goods. The obligation
therefore is not only to act "carefully" but also "properly". There is nothing in Hague or
Hague/Visby Rules referring to due diligence to care for the cargo. The only references to
"due diligence" in Hague and Hague/ Visby Rules deal with in respect to making the
vessel seaworthy, and which refers to latent defects of the ship "not discoverable by due
diligence".
The reference to due diligence in caring for cargo leads to the requirement that the carrier
need prove only due diligence to care for cargo in order to exonerate (free from blame)
itself. But it is NOT limited to this requirement alone because the carrier must prove the
cause of the loss, and that he exercised due diligence to make the vessel seaworthy in
respect of preventing the loss.
Q.9 a) State the fundamental principles of Marine Insurance Contract under the
provisions of Marine Insurance Act 1963.
b) Explain the following terms under this contract:
i) Insurable interest ii) Tender Clause iii) Institute Warranty iv) Sue and Labour
clause.
Answer
(a)
FROM PREVIOUS ANSWER – PLEASE SPECIFY
(b)
FROM MI NOTES – TO BE DONE TOMORROW
Page 158
MAY 2014 – 2
Page 159
Q.1 Describe the different sea areas as per UNCLOS? Explain the rights of a coastal
state in such areas.
Answer
SPECIFICALLY AS DONE IN THE CLASS – DIAGRAM AND NOTES
Q.2 a) Enumerate the brief outline of the contents of chapter II, III, and VII of SOLAS
1974 as amended. List the relevant Merchant Shipping Rules applicable for
Indian ships.
b) Briefly explain the aim and objectives of the ITU Radio regulations.
Answer
(a)
Chapter II-1 - Construction - Subdivision and stability, machinery and electrical installations
The subdivision of passenger ships into watertight compartments must be such that after
assumed damage to the ship's hull the vessel will remain afloat and stable. Requirements for
watertight integrity and bilge pumping arrangements for passenger ships are also laid down
as well as stability requirements for both passenger and cargo ships.
The degree of subdivision - measured by the maximum permissible distance between two
adjacent bulkheads - varies with ship's length and the service in which it is engaged. The
highest degree of subdivision applies to passenger ships.
Requirements covering machinery and electrical installations are designed to ensure that
services which are essential for the safety of the ship, passengers and crew are maintained
under various emergency conditions. The steering gear requirements of this Chapter are
particularly important.
Chapter II-2 - Fire protection, fire detection and fire extinction
This includes detailed fire safety provisions for all ships and specific measures for passenger
ships, cargo ships and tankers.
They include the following principles: division of the ship into main and vertical zones by
thermal and structural boundaries; separation of accommodation spaces from the remainder
of the ship by thermal and structural boundaries; restricted use of combustible materials;
detection of any fire in the zone of origin; containment and extinction of any fire in the space
of origin; protection of the means of escape or of access for fire-fighting purposes; ready
availability of fire-extinguishing appliances; minimization of the possibility of ignition of
flammable cargo vapour.
Page 160
Chapter III - Life-saving appliances and arrangements
The Chapter includes requirements for life-saving appliances and arrangements, including
requirements for life boats, rescue boats and life jackets according to type of ship.
The International Life-Saving Appliance Code(LSA Code) gives specific technical

requirements for LSA and is mandatory, which states that all life-saving appliances and
arrangements shall comply with the applicable requirements of the LSA Code.
Chapter VII - Carriage of dangerous goods
The regulations are contained in three parts:
Part A - Carriage of dangerous goods in packaged form or in solid form or in bulk - includes
provisions for the classification, packing, marking, labelling and using placards,
documentation and stowage of dangerous goods.
Part B covers construction and equipment of ships carrying dangerous liquid chemicals in
bulk and requires chemical tankers built after 1 July 1986 to comply with the International
Bulk Chemical Code (IBC Code).
Part C covers construction and equipment of ships carrying liquefied gases in bulk and gas
carriers constructed after 1 July 1986 to comply with the requirements of the International
Gas Carrier Code (IGC Code).
Part D includes special requirements for the carriage of packaged irradiated (burnt and can
be re-used) nuclear fuel, plutonium and high-level radioactive wastes on board ships and
requires ships carrying such products to comply with the International Code for the Safe
Carriage of Packaged Irradiated Nuclear Fuel, Plutonium and High-Level Radioactive Wastes
on Board Ships (INF Code).
The chapter requires carriage of dangerous goods to be in compliance with the relevant
provisions of the International Maritime Dangerous Goods Code (IMDG Code).
Q.3 Write short notes on:

a)Volatile Organic Compounds (VOC) management plan.
b)Notification procedures for loading/unloading harmful substances as per
MARPOL Annex II.
Answer
(a)
The purpose of the VOC management plan is to ensure that the operation of a tanker, to
which regulation 15 of MARPOL Annex VI applies, prevents or minimizes VOC emissions
to the extent possible.
Page 161
Emissions of VOC can be prevented or minimized by complying with this plan, the loading
and carriage of cargoes which generate VOC emissions should be evaluated and procedures
written to ensure that the operations of a ship follow best management practices for the
preventing or minimizing VOC emissions to the extent possible. If devices, equipment or
design changes are implemented to prevent or minimize VOC emissions, they shall also be
incorporated and described in the VOC management plan as appropriate.
An example of contents of a VOC Management Plan on board:
No. Section Page
I Introduction
II Objectives
III Additional Considerations
SECTION 1 Cargo tanks particulars
1.1 Tank arrangements
1.2 Design Particulars
SECTION 2 Cargo Tank venting systems
2.1 Description of the vessel‟s venting system
2.2 Set opening pressures of venting devices
SECTION 3 Volatility of crude oils - VOC generation mechanisms
3.1 Background
3.2 The volatility or vapour pressure of the crude oil
3.3 VOC generation mechanisms
SECTION 4 Means for reduction of VOC emissions.
4.1 Installations for reduction of VOC emissions
4.2 Operational measures for the reduction of VOC

emissions
SECTION 5 The monitoring and control of VOC releases
SECTION 6 Training programme
SECTION 7 Designated person
SECTION 8 List of drawings, plans and manuals
Page 162
(b)
Notification procedures for loading/unloading harmful substances as per MARPOL Annex II
The following documents to be submitted:
 The shipping documents supplied by the shipper shall include, or be accompanied

by a signed certificate or declaration that the shipment offered for carriage is
properly packaged and marked, labelled or has the relevant placards as appropriate
and in proper condition for carriage to minimize the hazard to the marine
environment.
 A detailed stowage plan which sets out the location of the harmful substances on
board. Copies of such documents shall also be retained on shore by the owner (or
representative) of the ship until the harmful substances are unloaded. A copy of one
of these documents shall be made available before departure to the person or
organization designated by the port State authority.
 In all documents relating to the carriage of harmful substances by sea where such
substances are named, the correct technical name of each such substance shall be
used (trade names alone are not to be used) and the substance further identified by
the addition of the words „MARINE POLLUTANT‟.
Q.4a) Describe the rights of parties to intervene on high seas under the provisions of
Intervention Convention.
b)Enumerate the general provisions of OPRC Convention as amended by OPRC-
HNS Protocol.
Answer
(a)

(b)

1990 (OPRC) and was formally adopted by States already Party to the OPRC Convention at a
Diplomatic Conference held at IMO headquarters in London in March 2000. The Protocol
entered into force on 14 June 2007.
3
Page 163
Like the OPRC Convention, the HNS Protocol aims to provide a global framework for
international co-operation in combating major incidents or threats of marine pollution from
HNS. Parties to the HNS Protocol will be required to establish measures for dealing with
pollution incidents, either nationally or in co-operation with other countries. Ships will be
required to carry a shipboard pollution emergency plan (SMPEP) to deal specifically with
incidents involving HNS.
Q.5 Describe the Compliance and Enforcement provisions stipulated in Maritime

Labour Convention 2006. State the responsibilities of Flag state, Port state and
Labour Supplying Countries to ensure compliance with MLC 2006.
Answer
Q.6 a) State the objectives of convention on Facilitations of international Maritime

Traffic 1965 (FAL).
b) State briefly on the measures of Facilitations during ships arrival, stay in port
and departure from the port.
c) Briefly explain the requirements for statutory certificates and documentations
for obtaining outward port clearance.
Answer
(a)
(b)
(c)
Q.7Discuss what action you would take from insurance point of view, if:
a)After commencing discharge cargo-damage noticed.
b)Vessel has suffered hull damage, due to bad weather.
Answer
(a)
DONE ELSEWHERE – TO REFER ACCORDINGLY – LETTER OF PROTEST
Page 164
(b)
DONE ELSEWHERE – TO REFER ACCORDINGLY - – NOTE OF PROTEST
Q.8 Write short notes on the terms and conditions specified in Standard voyage Charter
Party:
a) Charters Responsibility in load port (including safely afloat/safe berth).
b) Demurrage & Dispatch.
c) Commencement of Lay time for loading and discharging (separate) and loading
and discharging (total).
Answer
(a)
(b)
(c)
Q.9 a) What precautions are to be exercised by master of the vessel or carrier‟s agent
prior signing Bill of Lading?
(b) What is Special Compensation P & I Club Clause (SCOPIC) under Article 14 of
International Salvage Convention 1969? Discuss its essential features.
Answer
(a)
(b)
Page 165
JULY 2014
Page 166
Q.1a) Describe salient features of International Load Lines convention as amended.
b)List contents of the Record of conditions of assignment of free board of a ship.
It has long been recognized that limitations on the draught to which a ship may be loaded
make a significant contribution to her safety. These limits are given in the form of freeboards,
which constitute, besides external weather-tight and watertight integrity, the main objective
of the Convention. International Convention on Load Lines sets the limit to the draught to
which a ship may be loaded, in addition to setting provisions to prevent water from entering a
ship through doors, hatches, windows, ventilators, etc. To put it in a nutshell, the assignment
of Load Lines of a ship ensures the WATERTIGHT and WEATHERTIGHT INTEGRITY of
a ship. Conditions of assignment therefore, are regulations to ensure that a vessel is provided
with efficient means for:
 Protecting all openings to the hull and superstructure from ingress of water.
 Protecting the crew in heavy weather, and
 The rapid freeing of water from the weather decks.
Conditions of assignment deal with:
1. Stability information.
2. Bulkheads at exposed ends of enclosed superstructures.
3. Access openings in bulkheads.
4. Cargo and other hatchways.
5. Coaming of hatchways.
6. Hatchway covers.
7. Protection of openings.
8. Ventilator coaming.
9. Air pipes.
10. Cargo ports.
11. Discharges, inlets and scuppers.
12. Side scuttles (scuppers).
13. Protection for crew.
14. Special conditions for Type A vessels.
15. Provision of loading information.
Once freeboards have been assigned the following are to be marked on each side of the
vessel:
 Deckline.
 Load Line Disc and Mark.
 Seasonal Load Line Marks.
This Convention provides for the terms of ship's surveys, issuance, duration, validity and
acceptance of International Load Line Certificates, as well as relevant State control measures,
agreed exemptions and exceptions.
Page 167
(b)
Form of record of conditions of assignment of load lines
International Convention on Load Lines, 1966 Record of Conditions of Assignment Name

of ship.................................................................................................................. .......
Port of registry............................................................................................................. .........
Nationality..................................................................................................... ........................
Distinctive number or letters................................................................................................ .
Shipbuilders............................................................................................ ..............................
Yard number.................................................................................................................. .......
Date of construction/conversion............................................................. ..............................
Freeboard assigned as a ship of Type.................................................................................
Classification............................................................................................. ...........................
Date and place of initial survey.............................................................................................
A plan of suitable size may be attached to this Report in preference to sketches on this
page. Disposition and dimensions of superstructures, trunks, deckhouses, machinery
casings; extent of bulwarks, guard rails and wood sheathing on exposed deck, to be
inserted in the diagrams and tables following; together with positions of hatchways,
gangways and other means for the protection of the crew; cargo ports, bow and stern
doors, side-scuttles, scuppers, ventilators, air pipes, companionways, and other items that
would affect the seaworthiness of the ship.
Q.2 List important amendments of last three years to SOLAS, 1974 giving brief
description in respect of the areas to which amendments apply.
Answer
SOLAS Amendments Enter Into Force – 1st July 2014
New requirements under the International Convention for the Safety of Life at Sea (SOLAS)
to require all ships to have plans and procedures to recover persons from the water are among
a set of SOLAS amendments entered into force on 1 July 2014.
1. Recovery of persons from the water
The SOLAS amendments, adopted in 2012, were developed as part of the International
Maritime Organization (IMO)‟s work on large passenger ship safety and are aimed at
ensuring all ships have the capability to effectively serve as a rescue asset and have the right
equipment to be able to rescue persons from the water and from survival craft, in the event of
an incident.
This new requirement is intended to enhance safety at sea and also to provide support to
search and rescue coordinators in all types of rescue operations and, particularly, in those
situations where there is insufficient dedicated search and rescue capacity or access to
helicopters and specialized rescue craft is limited.
Page 168
The ship‟s plans and procedures should take into account related Guidelines for the
development of plans and procedures for recovery of persons from the water
(MSC.1/Circ.1447).
2. Reducing on-board noise
Also entering into force on 1 July 2014 is the new SOLAS regulation II-1/3-12, which
requires new ships to be constructed to reduce on-board noise and to protect personnel from
noise, in accordance with the revised Code on noise levels on board ships, which sets out
mandatory maximum noise level limits for machinery spaces, control rooms, workshops,
accommodation and other spaces on board ships.
3. Fire-fighter communication on-board
Amendments to SOLAS regulation II-2/10 on fire fighting enter into force on 1 July 2014, to
require a minimum of two two-way portable radiotelephone apparatus for each fire party for
fire fighters‟ communication to be carried. The apparatus shall be of an explosion-proof type
or intrinsically safe. Ships constructed before 1 July 2014 shall comply with the above
requirements not later than the first survey after 1 July 2018.
4. Instructions, on-board training and drills
Further amendments to regulation II-2/15 on instructions, on-board training and drills require
an on-board means of recharging breathing apparatus cylinders used during drills, or a
suitable number of spare cylinders.
5. Protection of vehicle, special category and RO-RO spaces
Another amendment to regulation II-2/20 on protection of vehicle, special category and RO-
RO spaces related to fixed fire-extinguishing systems, updates the requirements. The
amendments apply to ships constructed on or after 1 July 2014. Ships constructed before 1
July 2014 shall comply with the previously applicable requirements.
6. Forms of certificates and records of equipment
Other amendments to the appendix to the annex to the SOLAS Convention replace all forms
of certificates and records of equipment, including its 1988 Protocol, and further amendments
relate to the forms of the Cargo Ship Safety Construction Certificate and Cargo Ship Safety
Equipment Certificate of its 1978 Protocol.
7. Container convention amendments
Also entering into force on 1 July 2014 are amendments to the International Convention for
Safe Containers (CSC), 1972, which were adopted in 2013 by resolution MSC.355 (92), to
incorporate and facilitate the entry into force of amendments to the CSC Convention adopted
in 1993 by resolution A.737 (18), including amendments relating to the form of the safety
approval plate and to the approval of existing and new containers. The amendments also
introduce a transitional period for marking containers with restricted stacking capacity and
include a list of deficiencies which do not require an immediate out-of-service decision by
control officers, but require additional safety measures to enable safe ongoing transport.
Page 169
Q.3 Four pillars of Maritime Legislation are SOLAS, MARPOL, STCW and MLC. In
light of this statement:
a) Explain salient features of Manila Amendments to STCW 1978
OR
b) Explain salient features of MLC, 2006 highlighting how its implementation would
affect seafarers.
Answer
ALTHOUGH THERE IS A CHOICE, BOTH THE PARTS HAVE BEEN ANSWERED

PREVIOUSLY – PLEASE SPECIFY
Q.4Explain aims and objectives of MARPOL, as amended, highlighting in brief,

contents of its technical annexes individually and how it seeks to achieve its objective.
Answer
As industrialization on a global scale has increased, so has the amount of noxious and
hazardous substances transported by sea. This results in an increase in the discharge of such
substances by ships into the marine environment. These substances are primarily oil and
petroleum products. Consequently, international concern for the operational and accidental
discharges from these ships has intensified. The International Convention for the Prevention
of Pollution from Ships 1973 and its 1978 Protocol (together known as MARPOL 73/78).
Annex I - Regulations for the Prevention of Pollution by Oil (entered into force 2
October 1983)
Covers prevention of pollution by oil from operational measures as well as from accidental
discharges; the 1992 amendments to Annex I made it mandatory for new oil tankers to have
double hulls and brought in a phase-in schedule for existing tankers to fit double hulls, which
was subsequently revised in 2001 and 2003.
Annex II - Regulations for the Control of Pollution by Noxious Liquid Substances in

Bulk (entered into force 2 October 1983)
Details the discharge criteria and measures for the control of pollution by noxious liquid
substances carried in bulk; some 250 substances were evaluated and included in the list
appended to the Convention; the discharge of their residues is allowed only to reception
facilities until certain concentrations and conditions (which vary with the category of
substances – X, Y, Z and OS (Other Substances)) are complied with.
In any case, no discharge of residues containing noxious substances is permitted within 12

miles of the nearest land.
Annex III - Prevention of Pollution by Harmful Substances Carried by Sea in Packaged

Form (entered into force 1 July 1992)
This Annex contains general requirements for the issuing of detailed standards on packing,
marking, labelling, documentation, stowage, quantity limitations, exceptions and
Page 170
notifications.For the purpose of this Annex, “harmful substances” are those substances which
are identified as marine pollutants in the International Maritime Dangerous Goods Code
(IMDG Code) or which meet the criteria in the Appendix of Annex III.
Annex IV - Prevention of Pollution by Sewage from Ships (entered into force 27

September 2003)
Contains requirements to control pollution of the sea by sewage; the discharge of sewage into
the sea is prohibited, except when the ship has in operation an approved sewage treatment
plant or when the ship is discharging comminuted and disinfected sewage using an approved
system at a distance of more than three nautical miles from the nearest land; sewage which is
not comminuted or disinfected has to be discharged at a distance of more than 12 nautical
miles from the nearest land.
Annex V - Prevention of Pollution by Garbage from Ships (entered into force 31

December 1988)
Deals with different types of garbage and specifies the distances from land and the manner in
which they may be disposed of; the most important feature of the Annex is the complete ban
imposed on the disposal into the sea of all forms of plastics.
Annex VI - Prevention of Air Pollution from Ships (entered into force 19 May 2005)
Sets limits on sulphur oxide and nitrogen oxide emissions from ship exhausts and prohibits
deliberate emissions of ozone depleting substances; designated emission control areas set
more stringent standards for SOx, NOx and particulate matter.
Q.5a) Explain the consequences in case of ship provisions of CLC convention as

amendedapply is sailing with expired certificate of financial liability issued to her
earlier.
b)As per tonnage convention define a)Gross tonnage andb) Net tonnage
Answer
(a)
After understanding the answer on CLC and Fund Conventions, done earlier, you‟d
appreciate the importance of the mandatory requirement of compulsory insurance. Therefore,
frame the answer around that to conclude that the tanker will NOT be able to trade in the
absence of a valid CLC Certificate because no country will accept the tanker since, in the
absence of the CLC Certificate, the tanker is a threat to the country‟s territory because in case
of an oil pollution incident, there is no guarantee of payment for damages by the tanker
owner.
(b)
Page 171
Q.6 Explain salient features of a) London Dumping Convention and its protocol and
b) Intervention Convention and its protocol.
Answer
(a)
(b)
Q.7 Explain Aims, objectives and general provisions of OPRC-HNS Protocol and
how it would help a country like India once this protocol is ratified and its
provisions implemented by countries in the Indian sub-continent.
Answer
Q.8 Write short notes on a) Note of Protest, b) Apportionment of liability in case of

collision and c) Role of classification societies.
Answer
(a)
(b)
BOTH TO BLAME COLLIUSION CLAUSE – TO DO
(c)
Page 172
Q.9 a) Explain how the provisions of International Maritime conventions implemented

in India.
b) List out statutory certificates required by an Indian ship on International Voyages
without which or in the event of expiry of any or one of those certificates she shall not
be allowed to depart from a port.
Answer
(a)
Please recall my first lecture on introduction to maritime law where I had explained how the
country implements a law (Convention) by converting into its own domestic law, and in case
of India the domestic law dealing with the shipping industry is the MSA, 1958. You will have
to base your answer on this.
(b)
SPECIFICALLY AS PER DISCUSSION / NOTES IN CLASS ON STATUOTORY

CERTIFICATES.
Page 173

Phase II Law Solved MMD QP 2012-2014

Uploaded by

Copyright:

Available Formats

Phase II Law Solved MMD QP 2012-2014

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Phase II Law Solved MMD QP 2012-2014

Uploaded by

Copyright:

Available Formats

Phase II – Maritime Law

The obligation of owner to crew with respect to seaworthiness

Q.3 Write short notes on the following:

Q.4 Write short notes on:

The Convention on Facilitation of International Maritime Traffic (FAL Convention) includes

 IMO General Declaration (FAL form 1).

Provision of technical information

The SCOPIC Clause

Q.6(a)What is note of protest? How it is lodged and extended?

1. Contemporaneous records of the weather actually encountered;

Q.7(a)Explain the reasons for a ship to be classed with a classification society.

In order to be registered, an ocean-going ship must be certified to be of a particular type and

Resolution A950 (23):- MARITIME ASSISTANCE SERVICES (MAS) - recommends that

 If required, arrangement of cargo discharge, trans-shipment or warehousing of

Q.1(a)Differentiate between “Passage”, and “Innocent Passage” as stipulated under

Meaning of innocent passage

Duties of the coastal State

Rights of protection of the coastal State

Q.2(a)State the salient features of Construction – Structure, Stability and installation

 Control of discharge of oil originating from machinery spaces

CLC requires the following:

The maximum amount to be paid by the oil tanker owner is as follows:

Up to 5000 GT = 4.51 million SDR.

OPRC - HNS1 PROTOCOL

The Protocol on Preparedness, Response and Co-operation to pollution Incidents by

Q.4 Write short notes on the following:-

PLEASE REFER TO THE NOTES AND DISCUSSION IN THE CLASS.

PLEASE REFER TO PREVIOUS ANSWER – Q. 3 (b) of January 2012.

The MLC is divided into FOR layers as follows:

TITLE 1 – Minimum Requirements to Work on Ships

TITLE 2 – Conditions of Employment

TITLE 3 – Accommodation, Recreation, Food and Catering

TITLE 4 – Medical and Social Protection

TITLE 5 – Compliance and Enforcement

(a) Form and contents of agreement under Section 101.

Form and contents of the agreement

Arrival, stay and departure of the ship

- General Declaration - Cargo Declaration - Ship's Stores Declaration - Crew's Effects

release/clearance or cargo and persons release/clearance of cargo and clearance of

Arrival, stay and departure of the cargo

(a) and (b)

FOR THE PURPOSE OF EXPLANATION ON OWN WORDS, THE PARTS HAVE

 the salved value of the vessel and other property;

The Second incentive – Special Compensation introduced in Article 14 to the Salvage

SCOPIC was intended as a security of a minimum payment, and therefore, by applying a

 Make the ship seaworthy;

Q.9 With respect to marine insurance explain the following terms –

It is a formal notice of relinquishment (giving up) or unconditional surrender of all rights to a

PLEASE REFER TO PREVIOUS ANSWER – Q. 1 of January 2012.

Duties of the flag State

2. In particular every State shall:

Q.2 Describe the following:

Entries required for operations involving all categories of substances:

Q.3 a) Describe salient features of Oil Pollution Preparedness, Response and

International Convention on Oil Pollution Preparedness, Response and Co-operation (OPRC)

 Contingency planning and coordinated response procedures.

Responsibilities of Ships and Oil pollution reporting procedures

1. International Convention for the Safety of Life at Sea (SOLAS),

According to the classification rules - Classification survey is in accordance with the