York Antwerp Rules

N; Geoffrey Hudson; M; A; and Michael D; Harvey

Document

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CHAPTER 25 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particular average, to apply a very simple set of deductions to the cost of repairs in all cases where old material had been replaced by new.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. 25.02 With the introduction of iron and steel ships, it became apparent that the customary deductions were altogether too severe, and in 1884 the Association of Average Adjusters set up a committee to take technical advice and recommend a progressive scale of deductions

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depending upon the age of the ship. This scale was approved by the Association in 1887 as a Rule of Practice,3 and this formed the basis of a new York-Antwerp Rule XIII in 1890.4 25.03 In 1924 only minor changes of detail were made in the text. 25.04 In the run-up to the Amsterdam Conference, it was agreed at the committee stage that the deductions of one third or one-sixth (as the case might be) should be limited to the cost of the materials or parts, rather than the full cost of repairs including the cost of installation. Some delegations continued to argue for wider deductions in accordance with their national practices and, in the event, after the matter had been referred to the drafting committee, the following was added to the text:

The deductions shall be made from the cost of new material or parts, including labour and establishment charges, but excluding cost of opening up.

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