Table 3

Checklist of marine accident cost estimations

ActivityPricing techniquesInformation sources
AC11First aid in medical facilityActual expensesDirect sources
Transfer injured crew and passengersTransportation expenses
Medical treatment and hospitalizationExpenses paid to clinic or hospital
Visits to hospitalTransportation expenses
Pharmaceutical treatmentPharmaceutical expenses
AC12Compensation for injury or deathAmount of compensation
Gifts to injured crew or passengersPrices of gifts
Settlement to victims or survivorsAmount of settlement cost
AC13Absence of the injured crewDaily wage x non-worked days
Supplementary medical leave paysDaily supplementary pay x medical leave days
Replace injured crew during absenteeismTravel expenses to dispatch temporary replacements
Co-worker overtimeHourly wage x overtime hours
AC14Injured crew returning to workplaceActual expenditures on rehabilitation
AC15Recruitment processEmployee wages x time spent and other expensesCompany/expert estimation
Training for the new crew
AC21Transfer vessel to repair siteActual costs of transfer vessel (towing fee)Direct sources
Purchasing material, parts and equipmentPurchasing prices
Ship repairs and replacements of partsExpenses paid to shipyard
Consultation for repair assessmentConsultation fees paid to consulting firm
Class surveyClass damage and repair survey expenses
Early retirement of equipmentEstimated value of depreciation in damaged equipmentCompany/expert estimation
Early retirement of the vesselEstimated value of depreciation in the damaged vessel
AC22Cargo lossAmount of compensationDirect sources
Cargo damage
Clean-up and disposal for cargo lossExpenses paid for clean-up, salvage, or disposal
AC23Compensation for damage to other shipsAmount of compensation
Compensation for damage to facilities
AC31Clean-up pollutionActual expenses of clean-up pollution paid to external services
Remove debrisActual expenses of removing debris paid to external services
AC32Compensation to restore environmentAmount of compensation
AC33Compensation to local communitiesAmount of compensation paid to local people or industries
AC41DemurrageAmount of compensation made to cargo owners for delay
Delay of the shipVessel charting rate x delay daysCompany/expert estimation
Off-hireVessel charting rate x off-hire days
Lost production due to investigation and inspectionsVessel charting rate x days with investigation and inspection
Additional work to resume business activitiesActual expenditures spentDirect sources
AC42Oil spill responseExpenses paid to oil spill response companies
FirefightingExpenses paid to local authorities for firefighting assistance
Search and rescueEmployee wages x time spent and other expensesCompany/expert estimation
AC43Meetings with local authoritiesEmployee wages x time spent and other expenses
Meetings with regulatory agencies
Follow-up activities
Safety committee meetings
Other administrative work
AC44Increased insurance premiumsAmount of insurance premiums increase for crew and vesselDirect sources
AC45PenaltiesAmount of penalties paid
FinesAmount of fines paid
Ship detentionVessel charting rate x delay daysCompany/expert estimation
Suspension of ship class or operation permit
AC46Legal consultation and supportCompany’s attorneys x time spent, or expenses paid to legal firms
Disputes and lawsuits
Judicial proceedingsFee charged by courtDirect sources
AC47Investigation from authoritiesExpenses paid to authorities
External consultationExpenses paid to consulting firms for technical assistance
Internal investigationEmployee daily wages x time spent and other expensesCompany/expert estimation
Accident investigation reportingEmployee wages x time spent and other expenses
Additional inspections after investigations
AC48Lost salesEstimated value of lost orders
Potential loss of market shareEstimated value of potential loss of market shares
Lack of return on investmentAmount of accident costs x interest rate x period of investment

Note(s): The verification of the checklists involved the participation of a Canadian Arctic shipping company

Source(s): The authors

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