US war risk insurance to cover commercial operations in Mideast
The United States Maritime Administration (MARAD) has announced that it is now accepting applications for war risk insurance to cover commercial ship operations in the Middle East. President Bush authorized the Department of Transportation (DOT) to provide the insurance to US-flag vessels and ships owned by US companies.
Other vessels may be covered if their cargoes are considered to be in the security interests of the US. The insurance covers cargoes as well as the ships and crews. It is underwritten by DOT in return for a premium from ship-owners.
War Risk Insurance, which protects vessel operators and seafarers against losses resulting from war or war-like actions, will be provided only if commercial insurance is not available to them on reasonable terms, said Administrator Schubert.
Maritime Administrator William G. Schubert added that applications must be made on an individual-vessel basis, and that each case will be considered separately. Additionally, applicants must provide full details from insurance brokers or underwriters of the amounts, terms, and rates of the commercial insurance and justification for the conclusion that the rates are not fair or reasonable.
The insurance is available only for areas currently excluded in commercial war risk trading warranties: the Persian or Arabian Gulf and adjacent waters, Israel, Lebanon, Gulf of Aqaba and the Red Sea, Yemen, Pakistan, Oman, Syria, and Egypt. — (menareport.com)
© 2002 Mena Report (www.menareport.com)