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York Antwerp Rules


Page 172

CHAPTER 25

Rule XIII: Deductions from Cost of Repairs

Rule XIII: Deductions from Cost of Repairs

  • (a) Repairs to be allowed in general average shall not be subject to deductions in respect of “new for old” where old material or parts are replaced by new unless the ship is over fifteen years old in which case there shall be a deduction of one third. The deductions shall be regulated by the age of the ship from the 31st December of the year of completion of construction to the date of the general average act, except for insulation, life and similar boats, communications and navigational apparatus and equipment, machinery and boilers for which the deductions shall be regulated by the age of the particular parts to which they apply.
  • (b) The deductions shall be made only from the cost of the new material or parts when finished and ready to be installed in the ship. No deduction shall be made in respect of provisions, stores, anchors and chain cables. Drydock and slipway dues and costs of shifting the ship shall be allowed in full.
  • (c) The costs of cleaning, painting or coating of bottom shall not be allowed in general average unless the bottom has been painted or coated within the 24 months preceding the date of the general average act in which case one half of such costs shall be allowed.

Evolution

25.01 It was traditional British practice, in adjusting claims for the cost of repairs to ship, both for general and particular average, to apply a very simple set of deductions to the cost of repairs in all cases where old material had been replaced by new. The custom to apply these deductions to the cost of repairs was given judicial approval in 1879.1 Even as late as 1906, the (UK) Marine Insurance Act stated that the measure of indemnity under a policy of marine insurance should be, once the ship has been repaired, “the reasonable cost of repairs, less the customary deductions”.2 The customary deductions, which applied to all repairs other than to damage sustained on a vessel’s maiden voyage, were fixed at one-sixth for chain cables and one third for all other repairs and replacements, except for anchors and materials and stores that had not been put into use, which were allowed in full.

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