SURVEYING MARINE DAMAGE A HANDBOOK FOR MARINE SURVEYORS AND LOSS ADJUSTERS AND A GUIDE FOR UNDERWRITERS, SHIPOWNERS AND LAWYERS PARTICULARLY FOR INSURANCE CLAIMS BY CAPTAIN C B THOMPSON RD FNI Hon FIIMS Hull and Cargo Surveyor Formerly a Lloyd’s Agent and Salvage Association Consultant Surveyor WITH THE ASSISTANCE OF CAPTAIN M AUSTIN FAMINZ MIIMS Hull and Cargo Surveyor Lloyd’s Agent, Auckland First Published 1994 Second Edition 2006 Third Edition 2016 ISBN 13: 978 1 85609 608 9 © C B Thompson 1994, 2006 and 2016 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library. Notice of Terms of Use All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher and copyright owner. While the principles discussed and the details given in this book are the product of careful study, the author and publisher cannot in any way guarantee the suitability of recommendations made in this book for individual problems, and they shall not be under any legal liability of any kind in respect of or arising out of the form of contents of this book or any error therein, or the reliance of any person thereon. Printed by Trade Colour Printing, Penrith, UK Published in 2016 by Witherby Publishing Group Ltd 4 Dunlop Square, Livingston Edinburgh, EH54 8SB Scotland, UK Tel No: +44(0)1506 463 227 Email: info@emailws.com Web: www.witherbys.com iii THE AUTHORS Barry Thompson Brought up with a love of the sea and some experience in small boats in the South of England, Barry embarked upon a career at sea when he commenced his secondary education at Pangbourne Nautical College and later joined Port Line as an apprentice. After obtaining his Second Mate’s certificate, he joined P&O as a junior officer. He went on to serve the company in cargo and passenger ships, leaving after brief periods as Staff Captain and in command, to settle in Auckland, New Zealand. He then became a marine surveyor and shortly afterwards started his own surveying firm which, in due course, developed successfully and was appointed the Lloyd’s Agent covering the two largest ports in the country. After selling his business, he became a Director and Consultant Surveyor with GAB Robins New Zealand Ltd, then a member of the worldwide Société Générale de Surveillance (SGS Group), until he retired from full-time employment to act as a Marine Consultant to the insurance and shipping industries in New Zealand. An honorary Fellow of the International Institute of Marine Surveying, he has written Units of their Diploma Courses and continues to write for the Institute, having earlier written for Informa (now Lloyd’s Maritime Academy). During most of his seafaring years, and later after coming ashore, Captain Thompson served with the Naval Reserve. He is a Liveryman of the Honourable Company of Master Mariners, a Freeman of the City of London and a Fellow of the Nautical Institute. He was for a time Deputy Chairman of the NZ Committee of Lloyd’s Register of Shipping and a consultant surveyor appointed by the Salvage Association. With an interest in sail training and youth development, he has served on the Boats Committee of the New Zealand Outward Bound School, as Deputy Chairman (now a Vice Patron) of the Spirit of Adventure Trust and as a relieving master of New Zealand’s two principal sail training ships which the Trust has operated. Michael Austin A master mariner, Michael served at sea with the New Zealand Shipping Company. Following several years in commerce, he became a surveyor in 1974 and has been the Auckland Lloyd’s Agent for the past 25 years. He is a Fellow of the Arbitration and Mediation Institute of New Zealand and a Member of the International Institute of Marine Surveying. A yachtsman, he too has been a relieving master of the two principal New Zealand sail training ships and a trustee of the Spirit of Adventure Trust. iv FOREWORD TO THE FIRST EDITION Captain Thompson has had a busy and distinguished career which has embraced a mainly maritime involvement, be it as Master Mariner, Hull Surveyor, Cargo Surveyor, Loss Adjuster, Salvor, Lloyd’s Agent and Consultant; his wide experience making him well qualified to write a book on the subject of Surveying Marine Damage. It is refreshing and gratifying when one finds a person who will dedicate his efforts to producing a volume encapsulating the value of his know how in the various fields of endeavour for the benefit of future generations of surveyors, thus putting something back into an industry that has been his lifeline. Besides being of great value to the student or junior surveyor, this book will be appreciated by surveyors who are commissioned to carry out tasks, such as loss adjusting, to which they have not been accustomed in their every day work. Throughout the book great stress is placed upon the necessity of obtaining and abiding by clear instructions for whatever task is to be performed. Perhaps similar stress would be warranted to see that surveyors understand that no survey can be held on property without the owner’s, or his representative’s, permission. When this permission is not forthcoming the surveyor should inform his principal who will probably be able to get the necessary clearance. It gives me great pleasure to commend this book to all readers and especially to those engaged in the education of young potential entrants into the survey field. Further, as an ‘Old Salt’ myself, might I add that I have enjoyed reading this book. C A Sinclair OBE Formerly Chief Surveyor of the Salvage Association Past President of The Society of Consulting Marine Engineers and Ship Surveyors Past President of The Federation of European Maritime Associations of Surveyors and Consultants v PREFACE TO THE FIRST EDITION The carriage of goods, the operation of ships and the requirement for surveys that accompany them are essentially international in nature – I have therefore endeavoured not to limit any discussion of them too much to any particular geographical region. Marine insurance too is largely international but the laws that govern its practice are national and, to that extent, it has been necessary to place some restrictions on the comments on surveyors’ activities where they are concerned with insurance. English law underlies most insurance and legal comments in this book but as English law forms the basis of the lega