RED SEA CRISIS: BEACON INSURANCE BROKER PROVIDES INSIGHT INTO MARINE CARGO POLICY IMPACT
Beacon Insurance Broker Private Ltd., a leading insurance provider, issues an advisory on the escalating crisis in the Red Sea, shedding light on the potential repercussions for marine cargo insurance policies globally.
In the wake of recent events, including pirate attacks in the Red Sea near the Gulf of Aden and hijack attempts by Houthi Rebels, Beacon Insurance Broker aims to keep stakeholders informed about the evolving geopolitical landscape and its impact on safe cargo movements.
Impact on Marine Cargo Policy: Cargo insurers have responded proactively to the escalating tensions. War and strike risk cover for all transits to/from and through the State of Israel, the State of Palestine, and Lebanon has been canceled under Marine Cargo policies. Additionally, some insurers have refused any marine cover for these regions due to the ongoing disturbances.
The recent missile attack in the Red Sea by Iran-backed Houthi rebels on Israeli-bound ships falls under war-related perils and will not be covered by marine policies, as insurers have canceled the associated risk.
The Gulf of Aden, a gateway to the Red Sea, is facing heightened piracy concerns. While piracy is covered under marine policies with ICC-A cover (All risk), policies subject to ICC-B and C exclude piracy risk. The ongoing Israel-Palestine conflict further compounds the challenges in the region.
Major shipping lines, including Maersk, MSC, CMA CGM, EVERGREEN, OOCL, HAPAG-LLOYD, and FRONTLINE, have decided to divert or cease shipping movements via the Red Sea. Stakeholders are advised to monitor shipments to the region closely and communicate with shipping lines to confirm route diversions.
Additional Considerations:
Insured parties must promptly notify insurers of any route diversions to ensure continued coverage.
High-risk areas (HRA) now include UAE, Bahrain, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia. Indian insurers charge an additional premium of 0.025% for war and SRCC cover in these areas.
The Joint War Committee (JWC) has expanded the high-risk zone in the Red Sea from 15 degrees north to 18 degrees north.
Mr. S. K. Rustagi, Managing Director: Mr. S. K. Rustagi, Managing Director of Beacon Insurance Broker, expressed gratitude to patrons and highlighted the company’s commitment to professionalism, trust, and delivering beyond promises. Beacon, which started its journey in 2005, has grown to a team of over 250 professionals, known for their dedication and expertise.
Mr. Sanjay Agrawal, Director: Mr. Sanjay Agrawal, Director at Beacon, emphasized the company’s philosophy of “Customer satisfaction” and continuous improvement. He encouraged feedback from customers, recognizing it as invaluable for refining services and ensuring customer-centric approaches in all transactions.
About Beacon Insurance Broker Private Ltd.: Beacon Insurance Broker, established in 2005, has grown into a reputable firm with a team of over 250 professionals. The company is committed to providing comprehensive and customer-centric insurance solutions, navigating challenges in an ever-evolving global landscape.
For media inquiries, please contact: https://www.beacon.co.in/