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    Using the Rotterdam Guarantee Form in case of a collision

    14th June 2024

    If a safely moored vessel is struck by a passing vessel, NNPC Correspondents is happy to assist the owner of the damaged vessel in obtaining security for all damages, delays and costs. Furthermore, we investigate into the damage and the facts of the incident and assist the master and owners of the vessel to resolve the matter and to claim damage and costs from opponents, if applicable and if required.

    In Dutch jurisdiction, the issue of liability is likely to be answered quickly in such situation. The passing ship will be responsible and liable in most cases.

    In cases like the matter in this example, it is very helpful and in the benefit of both parties to make use of the Rotterdam Guarantee Form to obtain respectively to provide security.

    The Rotterdam Guarantee Form is a standard guarantee form to be used in the Dutch jurisdiction. It is well known by maritime lawyers, maritime insurers and also to the Dutch Maritime Court, which recognizes same as acceptable wording for a guarantee.

    The blueprint for a standard guarantee text came into being in 1972. It was called the “Rotterdam Guarantee Form” because it was drawn up by Rotterdam lawyers. The name refers to its origin only. It is also used widely beyond Rotterdam, within the jurisdiction of the Netherlands.

    The committee that developed this standard guarantee form, which is not an official organisation, still exists. It is now known as the Committee for the Revision of the Rotterdam Guarantee Form. The committee accepts comments and suggestions for improvement of the blueprint from users, mainly Dutch maritime lawyers. In addition, the committee keeps an eye on relevant developments in Dutch law and adjusts the wording of the guarantee form, if required to stay in line with Dutch law.

    P&I Clubs and Hull & Machinery underwriters are also familiar with the Rotterdam Guarantee Form and are updated by Dutch correspondents on developments and revisions to the script. Clubs are informed of revised versions of the document, and provided with guidance from the committee or the correspondents. As such, familiarity with, and confidence in, the Rotterdam Guarantee Form has grown amongst the Clubs and their members over the years.

    Familiarity with the blueprint amongst individual claims handlers of P&I Clubs is also significant. When a Dutch correspondent refers to the standard guarantee form and the claims handler is familiar with it, the member can then be given prompt advice and matters can be progressed quickly.

    This is how the blueprint system works on different levels between different parties in the chain.

    Confidence in the standard Rotterdam Guarantee Form and its use on behalf of Clubs and members on one hand, and claimants on the other hand, is crucial in keeping this system going. That is of significance for members of P&I Clubs, because this is how arrests on vessels can be lifted quickly.

    In the case as mentioned above (the allision) it was very helpful to make use of the Rotterdam Guarantee Form to arrange for proper security. It worked smoothly as expected and there was no need to arrest any vessel.

    For more information about assistance in case of an allisison and the standard Rotterdam Guarantee Form and how it can be used to the benefit of all parties involved, please contact us at correspondents@nnpc-correspondents.nl.

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