Optional Additional Insurance10/12/2009
Optional Additional Insurance
PIRACY LOSS OF HIRE
From 1 January 2010, the Club will be offering Members the option of extended loss of hire insurance that covers hire lost if a ship is seized by pirates.
The Club currently offers optional insurance for hire lost as a result of a ship being damaged by a war risk, subject to a 14 day deductible. This insurance will continue in 2010. The new optional “piracy loss of hire” insurance is designed to be broader and to operate regardless of damage to the ship, so that lost hire is recoverable even though the ship has not been damaged.
The general annual rate for the new insurance will be 0.01205% of the sum of hire insured. There will be no deductible and cover of up to 90 days’ hire will be available.
Members taking the new insurance on an annual basis will also be able to take out “piracy loss of hire” insurance for incidents arising in Additional Premium Areas such as the Gulf of Aden and the Indian Ocean. This AP cover will be available at two and a half (2.5) times the Club’s prevailing AP rate for the area in question.
This new cover is being offered in response to numerous enquiries from Members concerned at the commercial risks they face when sailing through areas such as the Gulf of Aden and the Indian Ocean. The number of entered ships transiting this area – expected to be about 1,500 in 2009 – offers advantages of scale and allows Members the option of buying the cover at a competitive price. But AP cover for “piracy loss of hire” will only be available to Members who have taken annual cover for this risk.
This cover will be offered under Rule 2 Part F. 2009 C5 - War Loss of Hire Insurance sets out the terms and conditions of cover.