Bangladesh seeks $ 22.4 million after the missile hit a ship in Ukraine

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Bangladesh seeks $ 22.4 million after the missile hit a ship in Ukraine

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Merchant ships are moored in the Black Sea port of ODESSA, Ukraine, on November 4, 2016. REUTERS / Valentyn Ogirenko

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DHAKA / LONDON, March 18 (Reuters) – State-owned Bangladesh Shipping Corp is seeking $ 22.4 million from its insurer for a merchant ship hit by a missile in March, government officials aware of the talks said. in the first major claim for maritime insurance from the conflict in Ukraine.

The United Nations maritime agency said last week that it will create a safe maritime corridor for merchant ships and crews stranded in the Black and Azov seas, although sources in the maritime sector predict progress will be slow. The bullets hit four other ships in the past few days with one sunk. to know more

Insurance premiums have risen by more than 100% for travel to the region since the start of the war. Insurers are watching closely for further compensation claims which will ultimately increase costs further.

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An explosion on the night between 2 and 3 March shook the Banglar-flagged Banglar Samriddhi and killed one crew member. The ship had been stuck in Olvia since February 19. 24 after Ukraine closed its ports due to the Russian invasion.

Ukraine accused the Russian army of targeting port facilities with a missile attack, while the Russian embassy in Dhaka said the circumstances of the incident had been “established”. Russia denies targeting civilians or merchant ships.

Since then, the owner of the BSC ship has filed a claim with their insurer after abandoning the ship, a senior BSC official said.

War risk coverage was provided by the Dhaka-based Sadharan Bima Corporation and reinsured through Lloyd’s London broker Tysers, a Sadharan Bima Corporation source said.

The source added that Shadharan Bima’s exposure was 10% with Tyser covering the remaining 90%.

“Fortunately there was no cargo on board when it reached the port of Olvia,” the official said.

“The ship should have taken the clay from the port before going to Italy,” he said, referring to a material used to make pottery.

Tyser did not respond to requests for comment.

BSC’s chief executive Commodore Suman Mahmud Sabbir separately told Reuters that it would take some time to process the request.

“Without the removal of the ship outside the war zone, the war risk insurer cannot send their own inspector to assess the amount of damage. We are taking all necessary steps to defend our interests for sure.” Sabbir said.

London’s marine insurance market has expanded the area of ​​waters it considers high risk in the region as conflict intensifies and dangers to merchant shipping grow.

“On paper, this should be a simple statement. But given the situation inside Ukraine, processing may take some time, especially if more (documentation) is needed,” an insurance industry source said.

Viktor Vyshnov, deputy head of the Ukrainian maritime administration, told Reuters the ship was at anchor in the port with no crew on board. The remaining 28 crew members were evacuated to Bangladesh.

“The port captain is looking for crew to come aboard,” he said.

Vyshnov confirmed that the ship’s deck was damaged when the missile struck, although it was unclear whether the engine was disabled.

Vessels typically have P&I insurance, which covers third party liability claims including environmental damage and injury. Separate policies for hull and machinery cover ships against physical damage. This is in addition to the war risk coverage.

Stale Hansen, president and chief executive officer of Norwegian ship insurer Skuld, told Reuters the ship was registered with them for P&I, adding that “given the wartime circumstances of this victim, this loss is being handled by war insurers.”

The latest casualty of a war-threatened ship involved the Japanese-owned Liberian-flagged oil tanker Mercer Street, which was damaged by a suspected drone attack off the coast of Oman, killing two crew members in July of last year. year.

Between 1980 and 2020, according to data analysis by insurer Allianz Global Corporate & Specialty, fewer than 10 ships over 100 gross tonnage were total losses in attacks.

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Written by Jonathan Saul, edited by Veronica Brown and Toby Chopra

Our Standards: Thomson Reuters Trust Principles.

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