Tag: marine insurance

Discounts of up to 35% A number of kidnap and ransom insurers are demanding the presence of armed guards on vessels transiting the Gulf of Aden and the Indian Ocean before they will provide cover, and others are offering discounts of up to 35% to shipowners employing private security firms for voyages in high-risk areas.For an average vessel valued at $20m, the starting price for a policy is in the region of $35,000 for a seven-day transit of the Gulf of Aden. With armed guards on board and a K&R policy in place, a discount of 35% would represent a saving of $12,250.While no insurer was prepared to confirm they were offering such discounts or requiring the use of armed guards when underwriting policies, some told Lloyd's List they offered some form of discount on the war rate for vessels transiting pirate hotspots.Reductions in premiums are made for the use of private security, as well as for vessels that have a K&R policy and those that have implemented Best Management Practice 3 or 4.When asked if he was aware of underwriters offering discounts for armed guards, Lloyd's Market Association senior executive Neil Roberts said: "I'm sure it's true, but this ...

There is an increase in the number of kidnappings and ransom in recent years With pirates striking with alarming regularity and Naxal menace on the rise, the demand for kidnap-&-ransom (K&R) insurance policies from the corporates is on the rise.K&R insurance provides coverage for abduction and other events through a combination of financial compensation, including paying the ransom and extortion money, and expert crisis management service. "We have seen corporates with operations in Maoist-infested areas buying these policies," said G Srinivasan, chairman and managing director, United India Assurance. Hit by piracies on the high seas, shipping companies, too, are now buying K&R policies, said a senior official of ICICI Lombard General Insurance."We have seen demand for K&R policies from shipping companies picking up," he said. Normally, international shipping companies take these covers, but, of late, Indian companies, too, are buying them, said Srinivasan.There has been a discernible increase in the average ransom payment in the recent years.The number of kidnappings has also risen. Insurers say that while, earlier, hardly 100 such policies were sold in a year, now the number has crossed 300. Companies which offer such policies are New India Assurance, United India Assurance, Tata Aig General Insurance and ...

By London's marine insurance market There is no immediate prospect of Libya being removed from a list of areas deemed high risk by London's marine insurance market and underwriters will seek a stable period before looking at de-listing, a market official said on Monday.Libyan government tanks and snipers put up scattered resistance in Tripoli on Monday after rebels swept into the heart of the capital, cheered on by crowds hailing the end of Muammar Gaddafi's 42 years in power.The Joint War Committee (JWC), which groups syndicate members from the Lloyd's Market Association (LMA) and representatives from London's insurance company market, added Libya to a list of area it considered high risk for merchant vessels and prone to war, strikes, terrorism and related perils."There is no immediate prospect that Libya would be taken off the listed areas if hostilities were declared over," said LMA senior technical executive Neil Roberts."Every situation is different, but underwriters would certainly be looking for a stable period in the country before considering whether to de-list," he told Reuters.The London marine insurance market plays an influential role in the global marine insurance industry."It would be unrealistic to take it off in the short term and the situation ...