AsiaFinance and InsuranceOperationsPiracy

Petro-piracy insurance cover introduced

London: Insurance cover is coming to a specific threat in Southeast Asia. Specialist marine insurance intermediary, Seacurus, has developed a petro-piracy endorsement which can be added to existing kidnap and ransom insurance cover. The coverage was developed in response to the evolving threats to ships, their cargoes and crews when transiting the South China Sea, Malacca Straits, Indonesian Archipelago and the Gulf of Guinea.

Denis Nifontov, head of marine K&R at Seacurus, said, “The criminal reach demonstrated by last year’s hijack of the tanker Kerala, coupled with the number of successful and attempted attacks in 2014 and the lack of any evidence that such gangs have been neutralised, suggests that further attempts at cargo theft will take place in 2015 across the region. Seacurus has recognised the need for traditional marine K&R cover to evolve to provide all interested parties with assurance that every eventuality is covered.

“The modus operandi of South-East Asian and Gulf of Guinea criminal gangs differs from the Somalian piracy model.  Ships’ crews are regularly exposed to life-threatening situations as criminals take control of and ransack vessels, stealing valuable petro-chemical cargoes for commercial gain.”

In addition to the benefits of a $1m marine K&R policy, there is $500,000 for loss or theft of cargo, $500,000 for loss of hire, $250,000 for loss of bunkers, and $50,000 covering loss or theft of money.

Figures compiled by UK risk analysis firm Dryad Maritime show how Southeast Asia dominated the piracy scene last year. Piracy incidents in the region grew 21% year-on-year, Dryad reported. Dryad’s figures show a total of 214 incidents compared to 177 in the previous year. The vast majority of these incidents have taken place within 150 nm of Singapore.  [05/02/15]



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