CHAPTER IV 



THE RECORD OF ACCIDENTS UNDER HULL 

 AND PROTECTION AND INDEMNITY INSURANCE 



An analysis of the unprofitable loss experience of insurers 

 first requires a close examination of the accident record for the 

 five-year period covered by this study. For purposes of this 

 report, accident records are analyzed under the following 

 approaches: classification of claims for both hull axid pro- 

 tection and indemnity insurance by frequency of occurrence and 

 amount of loss paid; and examination of a number of physical 

 chaxacteri sties of vessels which may bear directly upon the 

 recurrence and severity of accidents together with a discussion 

 of human failures as an important cause of accidents and, in 

 particular, negligence and lack of knowledge and training. 



A. HULL INSURANCE ACCIDENTS 



1. Frequency of accident occurrence . A multiple classification 

 of partial losses by the damaged part of vessel is shown in table 12. 

 In New England, 5^ percent of accidents involved hull damage and Ul 

 percent damage to machinery and equipment. Both these percentages 

 were higher in the Gulf Area--83 percent hull and 45 percent 

 machinery and equipment- -while they were reversed in California — 

 37 percent hull damages and 68 percent machinery and equipment. 

 In all three areas a number of partial losses involved damage to 

 both hull and machineiy vrhich make the totals in the section of 

 table 12 pertaining to kind of damage, add to more than 100 percent. 

 Although a number of the accident reports did not specify what kind 

 of machinery and equipment was damaged, motor trouble seems to be 

 the predominent source of claims in elLI three areas . Losses of 

 fishing gear were more frequent in California than elsewhere, 

 primarily because of damage to or loss of the auxiliary motor 

 boat commonly used for fishing in the area. The Appendix to 

 table A-97 in Appendix A includes a more detailed account of 

 parts of the vessel to which damage occurred. 



The above classification of accidents is consistent with the 

 fact that navigation hazard was cited as the most frequent cause 

 of accidents (table 12). The Giilf Area, with 83 percent hull 

 damage accidents, had 70 percent of the accidents caused by 

 navigation hazard (also including collisions). California, with 

 37 percent hull damages, had k2 percent of accidents caused by 

 the same hazard. The record for New England was between these 

 two situations, with 50 percent of accidents caused by navigation 

 hazard, wherein 5^ percent of the accidents in New England involved 

 damage to hull, indicating that nearly all were caused by navigation 

 hazard. Mechanicfiil failure is the next most important hazard in all 



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