REPORT
OF
FORTIETH ANNUAL MEETING
OF THE
ASSOCIATION OF AVERAGE ADJUSTERS
OF CANADA
Held at
the Westin Hotel, Halifax Nova Scotia on June 15th, 2006
OFFICERS
OF THE
ASSOCIATION
OF AVERAGE ADJUSTERS
OF CANADA
(Founded
1967)
2006-2007
___________
Chairman:
Claudio
Verconich
____________
Executive
Committee:
Tony
Brain, Chairman
Bill
Kyle Ron
Eldridge
____________
Rules of
Practice Committee:
Ian
Fraser, Chairman
Maurice
Gesner Gordon
Gibbons
___________
Membership
Committee:
Bill
Kyle, Chairman
David
Holden Ron
Eldridge
____________
Advisory
Committee:
John
Cantello, Chairman
Ian
Fraser Tony Brain
____________
Secretary
R.
Fernandes
Maurice Gesner (Chairman): Good
afternoon distinguished guests, ladies and gentlemen. Welcome to
the 40th Annual Meeting of the Association of Average Adjusters of
Canada. I would like to extend a very warm welcome to our distinguished
guests:
• John Poulson, Chairman of the Association of
Average Adjusters of the United States
• Graham Jackson – Besso Ltd./UK
It is also again my sad duty to pass on to you that two of our full
members, Mr. Dennis Fitzgerald and Mr. Ken Hext, passed away in this
past year. Dennis and Ken were both founding members of our
association. Dennis was Chairman of our association in 1973/74,
and Ken was Chairman in 1983/84. Also, Howard Myerson also passed
away this year. Howard was a long standing member of our
association. They will all be deeply missed. I would ask
for one minute of silence in honour of Dennis Fitzgerald, Ken Hext and
Howard Myerson.
Before continuing with our meeting there is one formal matter which
requires to be taken care of and that is the adoption of the Minutes of
the last Annual Meeting held in Mont Tremblant on May 25th, 2005.
I would therefore make the following motion: “that in accordance with
the Bylaws, the Minutes of the last Annual Meeting, having been
examined and certified correct by the Executive Committee, now be
confirmed.” May I have a seconder?
Ian Fraser: I second the motion
All in favour? [Motion Passed]
Maurice Gesner: It has been an
eventful second year of my term as Chairman of our Association.
In the fall, on a personal note, I became involved in a career change
moving companies. I am still involved in marine claims but now
have extended this to include non-marine losses.
It has again been a privilege and an honour to represent our
association at the events in the past year.
In October of last year, I was invited by the US Average Adjuster’s
Association to attend their meetings in New York. Unfortunately
this fell in the midst of my change in employment and it was with
sincere regret that I was forced to decline their kind invitation.
In May of this year I received an invitation from the Association of
Average Adjusters of the United Kingdom to attend their meeting which
was held in London on May 11th, 2006. Unfortunately this
conflicted with the 2006 spring meeting and dinner of The Maritime Law
Association of the United States. Their Chairman, Thomas Rue,
kindly sent me an invitation to attend their dinner which I had to pass
on my regrets.
At the UK meeting I received the hospitality of Nigel Rogers and his
wife Karen for a wonderful dinner. On the next day Mr. Rogers
gave a superb address on Shipbuilders’ Risk. During the evening I
attended the annual dinner at the Savoy Hotel which was a very
impressive and enjoyable affair.
As mentioned we are celebrating our 40th Meeting Anniversary of our
association. This is truly a remarkable achievement.
Our History
In 1967 John Mann, Thomas Mowat, Ralph Lyons, Charlie Nicolson, Maynard
Atkinson, John Cantello, Garth Coates, Ken Dean, Dennis Fitzgerald,
Herb Golding, Ken Hext, Jack Jones, and Bill Kyle (who is with us this
afternoon) created the Association of Average Adjusters of
Canada. You may be interested to learn that the formation of our
association was at the request of the Canadian Board of Marine
Underwriters.
In the years leading up to the development of the association there
were a number of offices managing adjusting problems in different
ways. The underwriters were seeking to have uniformity in the
approach to marine claims. The major brokerages were also
instrumental in developing the association. Meeting after meeting
was held by some of the founding members. They first tackled the
matter of the Great Lakes to produce our Rules of Practice. The
Rules of Practice applying to other than the Great Lakes and General
Average were developed at a later date.
Further meetings were held with the US Average Adjusters Association to
ensure that our Rules of Practice conformed to their Rules (within
reason). The East Coast contingent of Canadian Average Adjusters
invited the West Coast group to join and, in 1967 the Association of
Average Adjusters of Canada was born.
Over the years the number of individuals who have qualified for Full
Membership status following their successful passing of our
examinations has diminished on a significant basis. This has
become a concern to our association as it has with both the US and UK
Average Adjusting Associations. While attending the Chairman’s
dinner of their associations in the past two years this is a topic that
consistently comes up for discussion.
Perhaps the cause for the decline in newly qualified Average Adjusters
lies with budget cut-backs in brokerages who in previous years were a
strong supporter of our association in Canada; or perhaps a reduced
number of Average Adjusters still practicing who can mentor aspiring
members; or perhaps a lacking in knowledge of the role and the
importance of the Average Adjuster.
So what is an Average Adjuster?
This can certainly be considered to be a rather “unflattering”
description of an adjuster. To anyone who is outside of the
maritime world, or very new to the industry, or even in my home, they
may consider this to be somewhat of a derogatory portrayal of the
quality of adjuster. Certainly I have encountered such reactions
for the better part of my career as an Average Adjuster.
The Honourable Mr. Justice MacKinnon, reportedly stated in 1935 that
“Your profession is a singular one – not merely because the vast
majority of your fellow-citizens have not the remotest idea what your
duties are; but because, above any other profession that is not
actually legal, you are required to have, and in fact possess, a very
exact knowledge of a very special branch of the law.”
An Average Adjuster is a skilled practitioner in the adjustment of
maritime losses. They are marine specialists having extensive
knowledge in the law and practice of General Average and Marine
Insurance. Average Adjusters prepare statements of claims for
losses involving: Hull & Machinery, Cargo, and Protection &
Indemnity. Such statements are produced on an impartial basis
through uniformity, applying their Rules of Practice, policy conditions
and maritime law.
We have always invited a member of the Canadian Board of Marine
Underwriters to sit on our Rules of Practice Committee to ensure that
they have a presence in the development or editing of our Rules.
In the past year Gordon Gibbons has sat on this Committee.
The Origin of Average Adjusting
The origin of the Average Adjuster dates back to the early years of the
1800’s in London, England. The earliest professional Average
Adjusters were William Benecke and Robert Stevens. In subsequent
years other adjusters would follow in the directories as arbitrators,
accountants, merchants and, dare I say it, insurance brokers. In
1840 the Post Office directory made an entry for the profession of
average adjusting. In 1837 one of the very early Average
Adjusters, Mr. William Richards, was called as a witness for the case
of Pine v Steele. During the trial Mr. Richards was miss-quoted
to have said “I am a taker of averages.”
In 1869 the first formal Association of Average Adjusters practicing in
England was formed. This association was prompted by the Lloyd’s
underwriting members and the Liverpool Underwriters Association.
They produced their first Rules of Practice which was adopted in 1890
to provide uniformity and possible universal practice. These
Rules were to be applied to the adjustment of averages along with
becoming the duties of adjusters. Over the years these Rules were
reviewed on a regular basis and amended where necessary.
There would be other Average Adjusting Associations forming following
the development of the Association in the UK. In 1879 the
Association of Average Adjusters was organized in the United
States. Their goal was ‘to promote correct principles in the
Adjustment of Marine Hull Claims and uniformity of practice among
Average Adjusters”.
In 1961 A.I.D.E. (Association Internationale de Dispacheurs Europeens)
was founded following a meeting of Average Adjusters from: Belgium,
France, Germany, Italy, the Netherlands, Portugal and Spain, who became
Founder Members. It sound’s like the World Cup!
The Role of an Average Adjuster
Average Adjusters become involved in appointing marine surveyors
usually on behalf of underwriters. They proceed with collection
of documents relevant to the claim. If the loss involves a
General Average the Average Adjuster, who would normally be appointed
on behalf of the shipowner, will collect security from the cargo
interests usually in the form of Average Bonds and Guarantees.
Once all documents and survey reports have been obtained they review
the policy for determination of coverage and proceed with preparation
of a formal adjustment utilizing their Rules of Practice. In a
major loss the Average Adjuster may request interim payments from
underwriters after certifying the costs claimed and applying policy
conditions. The adjustment would then be submitted to
underwriters for payment as well as responding to any queries possibly
raised on the claim. Assistance may also be made by the Average
Adjuster in any subrogation action made by underwriters subsequent to
the settlement of the claim.
This is a very brief history and explanation of the development and the
role of the Average Adjuster as time permits in this afternoon’s
session. I would emphasize that we are a proud association to
what we offer to the maritime industry.
When I first encountered the world of average adjusting I knew right
then that if I had any intention of making a career out of marine
claims I wanted to be at the top of this profession. That
required becoming an Average Adjuster, something I’m very proud to have
accomplished.
If we are to maintain professional claims service to the clients of the
maritime industry, our association must survive. The importance
of the Average Adjuster should not be understated, whether to
underwriters who 40+ years ago acknowledged the requirement of the
association, or to the clients who expect a fair and expeditious
settlement of their claims.
Recently we have had one individual sit our exams last month and there
will possibly be at least one more in 2007. This has raised
renewed optimism that our Association is again heading into a period of
growth with new members contributing to the profession of average
adjusting.
We have opened up our requirements for qualifications as either a Full
Member or Associate Member. I would encourage you to contact our
Association through our Secretary, Rui Fernandes, should you wish
additional information.
To close I would salute: John Mann, Thomas Mowat, Ralph Lyons, Charlie
Nicolson, Maynard Atkinson, John Cantello, Garth Coates, Ken Dean,
Dennis Fitzgerald, Herb Golding, Ken Hext, Jack Jones, and Bill Kyle.
Thank you.
Reports
• Report of the
Nominating Committee: IAN FRASER
Ian Fraser: Good morning ladies and gentlemen. In the coming year
Claudio Verconich from Toronto will serve as Chairman. The
Executive Committee will be headed by Tony Brain, Chairman, Ron
Eldridge and Bill Kyle. The Rules of Practice Committee Chairman
will be Ian Fraser, with members Maurice Gesner and Gordon Gibbons from
the underwriters side. Membership Committee – Chairman will be
headed by Bill Kyle, with members Ron Eldridge and David Holden.
The Advisory Committee –will be headed by John Cantello and he will
be joined by Ian Fraser and Tony Brain. Rui Fernandes will
continue as Secretary - Treasurer. Thank you
• Report of the
Membership Committee: MAURICE GESNER
Maurice Gesner: I will be presenting this report on behalf of
the Membership Committee.
There have been two Resident Associates approved at our business
meeting yesterday:
Mr. Alain Larocoque
The Salvage Association
Mr. Duncan Fraser
Aon Reed Stenhouse Inc.
There was one member who wrote our examinations in May.
Unfortunately the member was not successful in passing the exams.
We are hopeful that he will make another attempt in the New Year.
During our business meeting yesterday it was recommended by the full
members that we grant Honorary Membership status to Neil Dennis.
I therefore make a motion that Neil Dennis be granted Honorary Member
status. Do I have a seconder?
Bill Kyle: I second the motion.
Maurice Gesner: All in
favour? [Motion Passed].
There is one last piece of business which concerns next year’s
meeting. We have discussed holding the 2007 meeting in
Montreal. Full details will be provided in due course.
Introduction of Incoming Chairman for
2006/07
I am very pleased at this time to introduce Claudio Verconich as our
new Chairman of our Association.
Claudio has been in the marine insurance industry for thirty years and
for the past twenty-five years he has worked as an underwriter.
Over the years Claudio has been:
• Past Chairman of the Loss Prevention Committee of
the International
Union of Marine Insurance
• Fellow Chartered Insurance Professional
• Member of the Canadian Maritime Law Association and
our Association
• Chairman of the Compulsory Insurance Sub Committee
of the Canadian
Board of Marine Underwriters
• Past National and Provincial award winner in FCIP
Program
• Past President of the CBMU
• Member of the CMLA Sub Committee on Ports of Refuge
and
Criminalization of Seafarers
So, as you can see, he is overdue for becoming our Chairman.
Would all please join me in a very warm welcome for Claudio Verconich.
Claudio Verconich: Well, my
first words are to thank you all very much for this honour. I am not an
average adjuster but am quite familiar with the work of average
adjusters. I am certainly familiar with our Canadian members who are
all admirable individuals and I’m honoured and privileged to represent
them and this Association. I would like to thank Maurice Gesner and the
Executive and all the committees for the great work done this year. I
would also like to thank the Secretary of the Association Rui
Fernandes.
Is there any other business today? If there isn’t, I will therefore
declare the meeting adjourned.
[Meeting Adjourned]