how a both to blame collision clause works
as globalization grows the shipping industry also grows in the event of a collision the company s liabilities and thus risk will be limited to ocean marine insurance an ocean marine insurance provides coverage against losses for ships it protects in the event of damage or destruction of a ship s hull and or the ship s freight some protections also provided under this insurance include damage due to wear and tear dampness decay mold and war are not included in the coverage special considerationsthe hague visby rules provide that if the carrier has exercised due diligence to provide a seaworthy ship they are not liable for claims resulting from a collision partly or wholly caused by negligent navigation article iv rule 2 a 1 commonly both vessels are partly to blame for a collision and cargo interests may then present their claims in tort against the non carrying vessel under u s law claimants could recover their claims in full from the owners of the other vessel who could then recover one half from the carriers this rule circumvents the navigational error defense it also creates a situation in which cargo interests could not recover restitution if the carrying vessel was wholly to blame the both to blame collision clause is designed to preserve the protection a carrier has under the hague visby rules by giving a contractual indemnity against the cargo interests example of both to blame collision clauseif ship a collides with ship b due to the fault of ship b the owner of any goods in ship a which are damaged or lost by the fault of ship b can claim 100 of the damage from the owners of ship b however due to the both to blame collision clause and in circumstances where apportionment of blame is deemed to be 50 50 the owner of ship b has the right to claim 50 of their liability from the owners of ship a this leaves ship a with a bill for half the cost of the damage so ship a passes that cost back to the owner of the goods by way of the both to blame collision clause in the bill of lading 