The insurance implications of the Titan submersible implosion
Insurance claims consultant Chris Tidball addresses some of the possible litigation and insurance issues surrounding this undersea disaster.
As many people watched the search for the Titan submersible that disappeared while attempting to take five individuals closer to the shipwrecked Titanic ocean liner, word came that the privately-owned vessel had suffered a catastrophic implosion, killing all of those aboard.
The vessel was owned by OceanGate Expeditions and some concerns were expressed about its seaworthiness as more information came to light about the construction and design of the submersible. It will take time to investigate the cause and other issues surrounding this event.
In the latest Insurance Speak Podcast, Chris Tidball, an executive claims consultant with SecondLook, discusses some of the aspects related to possible litigation arising from this vessel failure. Tidball has spent more than 30 years in the property and casualty industry as an adjuster, claims executive and consultant, and is the author of several insurance-related fiction and non-fiction books.
Passengers from three different countries, including OceanGate’s CEO and pilot, were lost in the implosion. From an insurance perspective, several factors come into play including the role of the assumption of risk and whether or not the passengers had a thorough understanding of the inherent risks associated with the trip.
Tidball says that two factors come into play. “Certainly, there is the assumption of risk…and at the end of the day, safety is going to be the issue that’s going to be the overriding factor in what happens here.”
According to press reports, OceanGate had been warned that its use of a carbon fiber hull was fundamentally flawed, particularly since repeated use of the submersible would weaken it over time.
Tidball also addressed the types of investigations that could ensue following the crash and the complexities surrounding a multi-national maritime investigation. For more on the risks and liabilities associated with the implosion, listen to the podcast above or subscribe to Insurance Speak on Spotify, Apple Music or Libsyn.
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