Shipping and Piracy Insurance Issues Beyond K&R

1. Shipping and Piracy   Insurance Issues Beyond K&R Andrea Dalle Vedove Shipping and the Law. Naples, 24th October 2011

2. Shipping and the Law. Naples, 24th October 2011 • General Average; • Local laws and regulations; • Piracy: Named Insured Perils; • War Perils Insurance Coverage.

3. Shipping and the Law. Naples, 24th October 2011 Average cost of ransoms: • US$ 600,000 in 2008; • US$ 5 million currently; • Top US$ 13.5 million in 2011; • Other ancillary costs: 30-40% of total cost incurred. War policy mitigation rapidly deteriorating

4. Shipping and the Law. Naples, 24th October 2011 • Physical Damage or Loss of the Vessel; • Additional Expenses;

5. Shipping and the Law. Naples, 24th October 2011 General Average • extraordinary sacrifice or expenditure • intentionally and reasonably made • against a peril • benefit the common venture

6. Shipping and the Law. Naples, 24th October 2011 Parties Potentially Involved: • Ship Owner • Cargo owners • Charterers • K & R Insurers • Hull & Machinery Insurers • Hull War Insurers • Cargo Insurers • Loss Of Hire Insurers • Others

7. Shipping and the Law. Naples, 24th October 2011 Additional Concerns: • Use of armed guards • Possible escalation of violence • Selection private security company • Competence, Discipline and Experience • IMO Circular 1405 • Best Management Practice (BMP)

8. Shipping and the Law. Naples, 24th October 2011 Many thanks