Debt collection insurance
In the last 20 years, ITIC has recovered more than US$ 145 million in unpaid commission, outstanding port disbursements, survey fees and other debts for ITIC Members. The insurance pays the legal costs of pursuing the debt. Tact and professional courtesy is vital in order to preserve commercial relationships. Often a polite reminder is all that is needed to secure payment. If legal proceedings are, however, necessary, ITIC’s specialist team will use whatever legal means necessary to try to recover the monies owed to you.
See the example below of how ITIC has recovered money on behalf of ship agents and shipbrokers:
Shipyard fails to pay sale and purchase commission
A sale and purchase broker acted for a shipyard in connection with the construction and purchase of three multi-purpose ships. Under the terms of a separate commission agreement, the shipyard was to pay 2% of the purchase price to the broker in four instalments at different stages of the construction of each ship. The instalments were not all made even though the construction and sale was accomplished; the brokers were owed considerable amounts of commission. Solicitors successfully attached property belonging to the shipyard, and eventually an amount of US$ 515,0000 was recovered for the Member. Although the recovery took the best part of five years, and the legal costs were substantial, an outstanding result was achieved for the Member.
Ship agent left with the bill
A ship agent was nominated by local charterers to act as agent for the port call of a ship. Despite repeated efforts (messages and phone calls) to persuade the ship owner in Greece to fund, in advance, the pro forma disbursement account, no money arrived. The port call was long and difficult with survey and repair fees incurred on top of regular port costs. The unpaid bill was US$125,000. The ship sailed leaving the bill unpaid.
ITIC were consulted and wrote to the ship owner via ITIC’s local correspondent in Piraeus. With the threat of a ship arrest to secure the claim, payment was received by the ship agent in full.
Recovery of unpaid commissions
Chartering brokers requested the assistance of the Club to recover commissions of US$ 21,788 in respect of the fixture of several vessels over a period of more than a year. The Club's demands for payment were ignored and further action was under consideration when another Member reported that they had been unable to collect outstanding commissions of US$ 5,789 due to them from the same principal.