TECHNICAL OFFER PART – I

Sub: Tender for Renewal of Non Declaratory Shipowners’ Liability (SOL)

Insurance Cover 2020-21 commencing from 01.09.2020 to 31.08.2021.

TERMS AND CONDITIONS.

1. The existing Non-Declaratory Shipowner’s Liability (SOL) insurance cover placed with
M/s. EF Marine Pte Ltd through Lloyds broker, M/s. Marsh Ltd. (through their Indian
representative, M/s. Marsh India Insurance Brokers Pvt Ltd. is due for renewal effective
from 01.09.2020.

2. Sealed tenders are invited by the Shipping Corporation of India Limited from the Lloyds
Syndicate or Cover Holders, London (who are S&P “A” rated) / Reputed Insurance
Company Market, who are member of International Underwriting Association Limited
(IUA), London and S&P “A” rated, only through Lloyds brokers; International Group P&I
Clubs (who are S&P “A” rated); Fixed premium Insurance Companies (who are S&P “A”
rated) and registered with DG Shipping; on open tender basis, for the renewal of non-
declaratory SOL cover for a period of one year effective from 01.09.2020.
SCI has no objection if the Lloyds brokers use the services of their Indian Associates, if
any, to liaise with SCI.
3. The major terms, conditions, deductibles etc. of the policy are as under:

Type: SHIPOWNERS’ LIABILITY.

Assured: THE SHIIPPING CORPORATION OF INDIA LIMITED, in respect of all

vessels owned and/or operated and/or time chartered and/or space
chartered by SCI excluding offshore supply vessels and managed
vessels

Period: From 01.09.2020 to 31.08.2021 (both days inclusive).

Interest: Ship owners' liability to those concerned in cargo.

Limit of Liability: USD 10 Millions any one accident or occurrence or series of accidents
or occurrences arising out of one event, but unlimited during the currency
of the policy.

Deductibles: USD 50,000 each single voyage each vessel but US$ 10,000 each
operation in respect of grain lightering operations.
 Conditions: This policy is to indemnify the Assured for cargo liabilities which would
have been covered by the assured’s entry in a member association of
the International Group of P&I Associations, but for the provisions and/or
exclusions in the relevant P&I Rules in respect of -

• Deviation
• Ad valorem cargo
• Specie and other valuable cargo
• Cargo, included in closed, open top or flat rack containers, carried on
deck against under deck Bills of Lading
• Transhipment / lightering of cargo
• Over carriage / lightering of cargo
• Drydocking of ship with cargo on board
• Storage of cargo whilst under repairs. Cargo may have to be
temporarily stored whilst the vessel is undergoing repairs.
• Delivery of cargo without production of original bill of lading
• Cargo being carried on vessels other than that named in the bill of
lading
• Cargo being shipped on board vessels other than those of the
member prior to the delivery of such cargo to the member’s vessels for
the carriage thereof and similarly after such carriage
• Cargo being discharged from and reloaded upon the same vessel
and/or cargo being shifted within the confines of the vessel for any
reason whatsoever at any port or place of shipment or destination
and/or at any port or place between the point of shipment and the
point of destination
• Cargo being discharged onto lighters at any port or place prior to the
surrender of bills of lading by the consignees or their representatives
• Cargo being lightered to other than the scheduled loading or unloading
berth
• Cargo being stored on lighters before loading or after discharging from
vessels
Area of Operation: Worldwide.

4. The other terms and conditions are as per current policy, a copy of which is attached
along with the list of vessels (owned & time chartered) as of date, for your ready
reference.
5. The tenderers are requested to note that quotations should strictly be for the identical
terms, conditions of the existing policy, any quotations on different terms and / or
different deductibles and / or different limits of liability will not be entertained.

6. Premium payment Clause: The premium will be paid in two equal installments. First
installment of premium will be paid within 60 days of inception of the contract.

7. Claim Handling Procedure: It is agreed all claims will be handled in accordance with
the adopted procedure as detailed in H.F. Dumas Facsimile message addressed to
Tyser & Co. dated 16th November, 1995, which has been approved by the Insured,
Underwriters and the respective P&I Clubs. A copy of the fax message is being
attached for ready reference.

8. Premium v/s Claims Statistics:

The premium amount paid during the period of last six policy years (including current
year) works out to US$ 187,750. As regards claims figures, there are “NO” SOL
claims lodged by SCI for the current policy year 2019-20. During the preceding Six
policy years also there were “NO” claims in excess of the applicable deductible amount
of US$ 50,000.

9. Lloyd’s brokers are required to submit the following documents with technical offer
part- I.
(i) a documentary proof substantiating that he is a Lloyd’s broker and

(ii) If the quote is obtained from Lloyds Underwriter / cover holders then an
undertaking that the security for this policy is 100% Lloyds’ security. Also to
attach “Letter of Support” from the Lloyds underwriters / Cover Holders duly
signed and stamped by them along with the tender.

(iii) If the quote is obtained from S&P “A” rated London Company Market, who are
member of International Underwriting Association Limited (IUA), London, a
documentary proof substantiating that Underwriters are S&P “A” rated and also
to attach a “Letter of Support” from the underwriters duly signed and stamped
by them along with the tender.

(iv) Undertaking that the quotation submitted for the tender is strictly based on the
terms and conditions of the expiring policy (as attached with the tender
document).
10. Group P&I Clubs and Fixed premium Insurance companies are required to
submit a documentary proof substantiating that they are S&P “A” rated and an
undertaking that the quotation submitted for the tender is strictly based on the terms
and conditions of the expiring policy (as attached with the tender document). The
fixed premium insurance companies should be registered with DG Shipping, India
as Non-IG Insurance companies and should have a valid approval from DG
Shipping, India.
11. Tender is liable to be disqualified if –

a) Not submitted in accordance with the terms, conditions of the Tender Form,
b) The tenderer qualifies the tender with his own conditions.
c) Received in incomplete form,
d) Received after due date and time.
e) Information submitted in Technical Offer is found to be incorrect or false at any
time during the processing of the tender.
f) Tender not accompanied with the required undertaking. As per the technical offer
of the tender.

12. TERMINATION CLAUSE:

The Corporation reserves its right to terminate the contract for any reason at its
absolute discretion including but not limited to the following by providing 30 days
notice:

(a) If the Tenderer is adjudicated insolvent by a Competent Court or files for

insolvency or if the Tenderer being a company is ordered to be wound up by
a Court of Competent Jurisdiction / Competent Authority.

(b) In the event of unsatisfactory service or failure on the part of the Tenderer at
any time, to carry out the terms and conditions of the contract to the
satisfaction of the Corporation, of which the Corporation shall be the sole
judge, the Corporation reserves the right to forthwith terminate the contract
by providing 30 days notice for termination and in such an event the
Contractor shall have no claims whatsoever against the Corporation in
consequence of such termination of the contract.
(c ) The contract shall stand suspended / terminated, partially or wholly as a
result of any Government of India Policy / Directive, in which case no claims
for any loss of business shall arise or made against the Corporation.

The decision of the Corporation in terminating the contract will be final and
binding on the Tenderer/Contractor.

13. EXIT CLAUSE:

The CORPORATION (The Shipping Corporation of India Limited) at its sole

discretion can terminate the contract without assigning any reasons whatsoever by
giving THIRTY (30) days notice to the contractor. The decision of the Corporation is
final and binding on the Contractor.

14. CONCILIATION CLAUSE:

If any dispute, difference, question or disagreement arises between the parties

hereto or their respective representatives or assignees, in connection with
construction, meaning, operation, effect, interpretation of the contract or breach
thereof which parties are unable to settle mutually, the same may first be referred to
conciliation through Outside Expert Committee (“OEC”) to be constituted by C&MD,
SCI as provided hereunder:

a. The party desirous of resorting to conciliation shall send a notice of 30 (thirty)

days to the other party of its intention of referring the dispute for resolution
through OEC. The notice invoking conciliation shall specify all the points of
disputes with details of the amount claimed to be referred to OEC and the party
concerned shall not raise any new issue thereafter.

b. C&MD, SCI shall nominate three outside experts, one each from
Financial/Commercial, Technical and Legal fields from the Panel of Outside
Experts maintained by SCI who shall together be referred to as OEC (Outside
Experts Committee).

c. Parties shall not claim any interest on claims / counterclaims from the date of
notice invoking conciliation till execution of settlement agreement, if so arrived at.
In case, parties are unable to reach a settlement, no interest shall be claimed by
either party for the period from the date of notice invoking conciliation till the date
of OEC recommendations in any further proceeding.

d. The Proceedings of the OEC shall be broadly governed by Part III of the Indian
Arbitration and Conciliation Act, 1996 including any modifications thereof.

e. OEC shall hear both the parties and recommend possible terms of settlement
between the parties. The recommendations of OEC shall be non-binding and the
parties may decide to accept or not to accept the same. Parties shall be at liberty
to accept the OEC recommendation with any modification they may deem fit.

f. Where recommendations are acceptable to both the parties, a settlement

agreement will be drawn up in terms of the OEC recommendations or with such
modifications as may be agreed upon by the parties. The settlement agreement
shall be signed by both the parties and authenticated by all the OEC members
either in person or through circulation. This settlement agreement shall have the
same legal status and effect as that of an arbitration award on agreed terms on
the substance of the dispute rendered by an arbitral tribunal under Section 30 of
the Arbitration and Conciliation Act, 1996.

g. The parties shall keep confidential all matters relating to the conciliation
proceedings.
Confidentiality shall extend also to the settlement agreement, except where its
disclosure is necessary for purposes of implementation and enforcement.

h. The parties shall not rely upon or introduce as evidence in any further arbitral or
judicial proceedings, whether or not such proceedings relate to the dispute that is
 the subject of the conciliation proceedings, views expressed or suggestions made
by the other party in respect of a possible settlement of the dispute; Admissions
made by the other party in the course of the OEC proceedings; Proposals made
by the OEC; The fact that the other party had indicated his willingness to accept a
proposal for settlement made by the OEC.

i. The parties shall present their case before OEC only through their in-house
executives. Neither party shall be represented by a lawyer unless OEC specifically
desires that some issue of legal nature is in dispute that needs to be clarified /
interpreted by a lawyer.

j. OEC members shall be entitled to benefits in respect of travelling, lodging etc. as

per the existing policy of SCI.

k. All the expenditure incurred in the OEC proceedings shall be shared by the
parties in equal proportion. The parties shall maintain account of expenditure and
present to the other for the purpose of sharing on conclusion of the OEC
proceedings.

l. If the parties are not able to resolve the dispute through OEC or do not opt for
conciliation through OEC, the party may invoke arbitration clause as provided in
the contract.

15. Jurisdiction:

The law of this insurance shall be English and any disputes arising under or in
connection with it shall be subject to the exclusive jurisdiction of the Courts of England
and Wales.

Declaration

We, the undersigned, have perused the above-mentioned Terms and Conditions and
agree to abide by them in case the contract is awarded to us.

We further state that we have quoted premium rate against this cover keeping in mind
the above listed Terms and Conditions.

Place: Name: _______________________

Date:
Address: _____________________

(Signature of the tenderer with stamp)