Insurance Aspects of Wrecks and Recycling of Ships from an Environmental Sustainability Perspective

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FACULTY OF LAW Lund University Kristoffer Tedenhag Insurance aspects of wrecks and recycling of ships from an environmental sustainability perspective JASM01 Master Thesis Maritime Law 30 higher education credits Supervisor: Abhinayan Basu Bal Term: Spring 2013 1 Contents SUMMARY 5 SAMMANFATTNING 7 ABBREVIATIONS 9 Chapter 1. Introduction 10 1.1 Background 10 1.2 Purpose of the Thesis 10 1.3 Delimitations 11 1.4 Research, Methodology and Materials 12 1.5 Scheme of the Thesis 12 Chapter 2. Financial Aspects of Shipwrecks 14 2.1 What Constitutes a Wreck 14 2.2 Insurance Loss 16 2.2.1 Actual Total Loss 17 2.2.1.1 Destruction 17 2.2.1.2 Damage so as to Cease to be a Thing of the Kind Insured 18 2.2.1.3 Irretrievable Deprivation 19 2.2.2 Constructive Total Loss 19 2.2.2.1 Section 60(1) of the Marine Insurance Act 1906 21 2.2.2.2 Section 60(2) of the Marine Insurance Act 1906 22 2.2.2.2.1 Section 60(2)(i) 22 2.2.2.2.2 Section 60(2)(ii) 24 2.2.2.2.3 Calculation of the damage 26 2.3 Abandonment of the Vessel 27 2.4 Salvage 28 2.5 Payment for Wreck Removal 28 2.6 The Nairobi International Convention on the Removal of Wrecks 2007 (ICRW) 30 Chapter 3. Ship Recycling 3.1 32 The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal 1989 33 3.1.1 The Applicability of the Basel Convention 34 3.1.2 The Ban Amendment 37 3.1.3 Enforcement Difficulties of the Basel Convention on Ship Recycling 38 2 3.1.3.1 State of Export 38 3.2 Technical Guidelines for the Environmentally Sound Management of the Full and Partial Dismantling of Ships 39 3.3

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