Page 63 - claims information pack ebook_e

Guidelines for presenting claims in the fisheries, mariculture and fish processing sector

Example: Explanatory notes:
Lost profit normally arises when revenues A Loss of revenue: This should be demonstrated
are reduced and the level of gross profit by showing the difference between revenues in
(revenue less direct costs such as wage the claim period and those normally generated in
costs and costs of sale) is less than it would a comparable period of the previous year(s).
normally be expected to be. In any case, you
will need to show your calculation of loss B Variable costs: This could include sales
and enclose documentation and evidence commission, gas, costs of fuel saved from not
to prove your loss. Those costs, referred to fishing or from fishing in a closer fishing ground
as variable costs, differ depending on the than normal, ice for storage, bait, packaging,
type of business you operate. For instance, maintenance, cost of fish food, crew wages
to go out fishing will result in fuel and ice (if calculated on a ‘per voyage’ basis),and other
costs. Any loss of revenue will therefore costs incurred through the supply of the product
lead to a reduction in variable costs and or service.
14 this saving needs to be taken into account. C Loss of gross profit: Loss of revenue less
The calculation for the economic loss will variable costs (A – B)
therefore be:
D Additional costs incurred: This may include
additional fuel costs incurred to visit alternative
Loss of revenue A fishing grounds, measures taken to prevent or
minimise pure economic loss, or the cost of
Saving of variable costs B
advisors to prepare the claim if necessary.
Loss of gross profit (A – B) C Please explain the reason for the additional costs.
E Subtotal: Loss of revenue plus additional costs
Additional costs D
incurred (C + D).
Subtotal (C + D) E F Additional income: This may include additional
income earned during cleaning operations, or paid
Additional income F
employment for other tasks.
Economic loss (E – F) G G Economic loss: Subtotal less additional income
(E – F).

Preventive measures for reasonable costs of work done by an
4.5 In some circumstances you can claim for adviser. As part of its assessment of your
claim, the 1992 Fund will look at the need for
reasonable measures you might take to
such advice or help, how well it was carried
prevent oil causing damage. For instance, you
out, how long it took and how much it cost.
might use a boom at the entrance to a harbour
to stop oil coming in and contaminating boats 4.7 Remember, in all of this, the actions that you
or to prevent oil from reaching a fish farm. take and your claim for compensation must
be reasonable and realistic. The 1992 Fund
You could claim for the costs of this action.
cannot compensate for any activity outside
Use of advisers
the law, such as catches greater than that
4.6 You might need some professional help allowed by applicable regulations, fishing
in making a claim for compensation. In in closed areas or damage to illegal
some cases you can claim compensation fishing gear.