Elected new members for a one-year period until 2006:
Niels Stolberg
Beluga Shipping GmbH, Bremen
Does my owners’ P&I policy cover piracy?
* Although P&I cover excludes war risks, the definition of “war risks” does not include piracy (Skuld Rules Appendix 1). This means that P&I risks such as crew claims, cargo damage and pollution will not be excluded on the ground that they are caused by acts of piracy.
However, some owners have piracy included in their war risks cover. For example, the Norwegian Marine Insurance Plan includes piracy as a war risk - see Norwegian Marine Insurance Plan § 15..20-22 (amended in 2010). Members who have insurance cover on Norwegian terms will therefore be covered for piracy P&I claims (such as crew compensation) by their war risks insurance provider rather than their P&I Club. Japanese war risks cover also includes piracy.
Skuld's new Kidnap & Ransom Insurance
Published 15.02.2010
SKULD, one of the world’s leading P&I Clubs, now has the ability to offer its members and clients Kidnap & Ransom cover for world-wide trade together with Griffin Underwriting.
SKULD is a P&I club with a long tradition of providing P&I insurance for shipowners and charterers. With continuing focus on providing first class service, it was natural for SKULD to provide Hull War Risk cover almost a decade ago. The current extension into K&R fulfils shipowners and charterers’ current risk exposure. The increase in piracy attacks has created a situation where owners and charterers face uncertainty in their daily operations. The risk of being attacked and illegally seized, causing disruption in trade, stress and exposure for crew and staff as well as financial insecurity, can be protected with a K&R insurance package.
Piracy attacks are continuing and vessels are seized. The insurance covers provided are uncertain for this risk and owners are left in the grey zone. To get the best protection, owners should have P&I, Hull War Risks and K&R. This package provides a certainty. SKULD can now provide all these covers: P&I, Hull War Risks including Piracy, K&R including Loss of Hire extension. This provides a comprehensive insurance package for owners and includes Skuld’s valued service in any casualty situation.
For charterers, SKULD’s Comprehensive Charterers’ Cover with K&R Loss of Hire extension, will provide the extra security for uncertain exposures in risk areas. If the charterer is liable for hire during a pirate seizure, he is covered for such a loss.
SKULD has elected to use Griffin Underwriting, a well known and experienced K&R provider, to ensure the best cover and service for members and clients. SKULD and GRIFFIN will work together to ensure close hands-on excellent service and assistance should the vessel be seized.
Kidnap & Ransom
Although the number of kidnap incidents vary from country to country depending on a variety of factors, the overall picture is one of an increasing crime. Kidnap gangs operate at various levels, from small street gangs abducting then selling the victim to a larger gang, or guerilla groups and cartels who require considerable revenue to fund their criminal activity.
Trends do occur and recent data suggests that a wider range of people are now exposed - as the most desirable targets are taking better precautions to safeguard themselves and their families from becoming victims, so less wealthy but easier targets become more attractive to the criminals as the victims of their crime.
Without the protection of insurance, kidnap and subsequent ransom demands can result in considerable personal or corporate financial loss. Griffin Underwriting offers two types of indemnity policy to protect personal and corporate assets and to provide the support that is required in the event of an incident; Individual Plus to protect families and businesses and Corporate Plus, tailored to multi-national corporations, with employees across the globe.
In the event of a claim the policy provides financial reimbursement along with advice and assistance helping to bring about the safe and timely release of the victim. Our comprehensive cover will reimburse the ransom payment along with other costs incurred whilst dealing with the kidnapping, including 100% of the consultants fees and expenses. In addition many other costs are also recoverable under our policy, including;
* Legal costs
* Medical expenses and Personal Accident cover
* Reward monies
* Salary replacement
* Interest on any loans taken out to pay the ransom
* Fees and expenses for independant services or advisors
* Rest and rehabilitation costs
* Other reasonable costs & expenses
I am writing this message to all news sites today as I am partly related to Beluga Nomination - vessel that was captured by the Somali pirates. The Shipping Company - Beluga Group - is hiding the information from press, and this is hurting both Russian, Fillipino, and international crew, Russian, Romania, Corean related cargo on board (steel), luxury yachts, etc.
The ship is captured since 24-25th of January. Last week 9-10th of February the pirates have announced their ransom - abt 8.000.000$, however the shipping company - Beluga Group - is tryign to negotiate the ransom down. According to our sources, the ransom in discussion is now $5.000.000. however even this is not being paid by the Owners.
However everyone has to consider and understand the fact, that the Owners/Beluga's risks are insured, and the fact that Beluga Group is trying to negotiate the ransom is most probably dictated by their Insurance company.
This insurance company - Danish based SKULD, at the end, will have to cover the ransom expenses back to Beluga Group. And the longer the negotion lasts, the more money this Insurance company will save, despite having this risk covered. In the meantime the crew, the cargo and all the shippers & receivers are all suffering from delays and constant credibility and contractual loss.
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