pi_circular Compliance & regulationInsurance & claims Skuld
Classification Societies play an important role in many respects of maritime business. For all intents and purposes, it is impossible for a vessel to operate and trade without being classed and certified by a classification society. Both port and flag states rely on classification and in some respects statutory certification has been delegated to these societies. Many parties will therefore have an interest in knowing that the vessel is classed : apart from port and flag states this include insurers (both Hull and P&I), charterers etc.. To take Skuld as an example, the Skuld Rule 28.4.1 that requires an entered vessel to remain fully classed with a classification society approved by the club and 28.4.2 which require that the vessel’s classification society is not changed without the club’s prior consent. According to the European Maritime Safety Agency (EMSA) there are at present more than 50 organisations worldwide that offer marine classification but only 13 are approved by the EU. EMSA carried out an assessment of the approved classification societies every second year. With a fairly large number of parties, both private and public, relying (in one way or another) on the work of these societies, it is also relevant to ask to what extent these societies are liable for their work if it is alleged that a mistake has been made, that negligence has been shown and that this has caused a loss. Much will depend on the jurisdiction where a classification society is held liable : the rules for damages in or out of contract can vary significantly and in many jurisdictions there will also possibly be a difference between whether the party seeking damages is a public or private entity and, quite possibly, whether it is a vessel owner or a third party who is making a claim against class. The position in English law will usually attract attention as English law is often the chosen law in maritime contracts (although a choice of law in e.g. a charter party will not in i
Liability of Classification Societies
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