Exam Question

(a) What is "Running Down Clause" and "General Average Expenses"? How are the claims under these clauses treated by H&M as well as P&I Insurers? (8)

(b) A vessel in your fleet has sustained damage due to an insured peril. The damage was identified only during drydocking one year after the incident. Will it be admissible under a hull policy? However, as the damage has not affected the Class status of the vessel, you decide not to carry out the repair. Can you file a claim against your policy? If yes, how can the value of such claim be ascertained? (8)