taking war risk insurance
SOME shipowners have started to
take war risk insurance policy for their vessels plying in the
pirate hotspot of the Gulf of Aden, said Lloyd’s Market Association
(LMA) senior technical executive Neil Roberts.
LMA is the representative voice of
the Lloyd’s underwriting community.
All managing agents at Lloyd’s are
members of LMA, managing an underwriting value of around £16bil in
According to Roberts in an email
interview, there was an annual war risk policy for vessels that
passed through a listed war risk area.
“Shipowners need to notify
underwriters who may decide to accept the risk, change coverage
conditions or charge an additional premium,” he said.
“If war underwriters are not
notified, they will not be liable to pay any loss caused while in
the listed area,” he added.
The Joint War Committee (JWC) added
in May the Gulf of Aden to its list of areas “as having an enhanced
potential to cause a danger to ships or their crews”.
The situation has been
JWC comprises underwriting
representatives from both the Lloyd’s and The International
Underwriting Association of London company markets.
It represents the interests of
those writing war and related risks in the London market.
Roberts said some insurers also
provided insurance coverage for kidnap and ransom as well, adding
that they were very concerned about the ongoing situation in the
Gulf of Aden.
“Insurers alone cannot act to
resolve the problems, it will take a collective international
political effort at government level to address the political
situation in the area,” Roberts said.
“In the shorter term, the biggest
problem is establishing an appropriate jurisdiction which will
enable the prosecution of pirates – this mechanism will need to
balance the security of international trade against the freedom of
the seas,” he said.