Thursday, August 2, 2012

P&I club becomes first to offer members Kidnap for Ransom cover of $5M limit

THE Standard Club has claimed an industry first in offering its members kidnap and ransom cover. The P&I club has also expanded its product range to include transport liability cover and professional liability cover. It said it believed the move was a first for an International Group club and followed feedback from members.

Other clubs, such as Skuld, offer to arrange K&R cover for members. The Standard Club said its K&R policy is designed for shipowners whose vessels frequently transit high-risk piracy areas. It extends to all associated expenses, including loss of hire, loss of ransom in transit, crew liabilities arising from kidnap, legal expenses and the cost of crisis responders.

The Standard Club said it would handle claims resulting from the piracy cover, with the assistance of Hiscox Syndicate 33 at Lloyd’s. Ransom negotiations will be managed by Control Risks. Ransom payments and associated expenses cover will normally be limited to $5m per insured event and $2.5m for loss of hire, though higher limits can be arranged.

The Transport Traders’ Liability policy covers time charterers liability, including P&I and hull damage, freight, demurrage and defence, and liabilities arising from trading operations. Separate limits can be provided up to $500m each for chartering liabilities and trading operations.

The professional liability insurance is designed for shipowners who are responsible for ship agents’ activities and for those who manage third-party ships. It provides cover for agents and managers in relation to a wide range of liabilities including professional negligence, cargo, property damage and personal injury up to a limit of $10m.

Standard Club chief operating officer Jeremy Grose said in offering these new policies, the club was building on the strong relations it has with its members to provide cover that is, in many ways, a natural extension of P&I.

“Many members have told us they would prefer to buy this type of insurance through their club because they like the clubs high level of service and hands-on approach and appreciate the value of seamless cover,” he said.

All three policies are optional and may be purchased in addition to existing P&I cover, and are supported by reinsurance purchased through Lloyd’s and the London market. Although the insurance is intended for ships entered in the Standard Club, members may apply on behalf of other ships if their fleets are shared between clubs.


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