Viewing a single comment thread. View all comments

sanjsrik t1_j1ztlsz wrote

Aren't they already excused because of the "act of war" clause?

67

red286 t1_j2096rc wrote

No, international ship insurance covers unanticipated acts of war and/or piracy. The problem is that when you've got a full-blown war with attacks on shipping in a specific area, the amount of losses exceeds what insurers can tolerate, so they'll either cancel coverage in that specific region, or significantly increase fees for coverage in that region.

80

MandoAviator t1_j20ksit wrote

War surcharge will go up to a few hundreds.

Nothing will change

The lines servicing that area will make beaucoup bucks

Source: was in shipping servicing Syria when all hell broke loose. Went from great money to mad money.

51

comped t1_j21wvmh wrote

So, it's essentially like flood insurance if you live in a floodplain then?

9

ActivisionBlizzard t1_j232lnj wrote

This is how all insurance works. Health insurance for a smoker will be higher for example.

1

westbamm t1_j1zw8pb wrote

It is not a war, it is a special operation. /s

But I thought the same.

14

MinuteManufacturer t1_j20grhn wrote

> American P&I said on Dec. 23 that it had received a "notice of cancellation" for the region from its war risk reinsurers and was cancelling its own insurance as a result.

>Ships typically have P&I insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

11