Reinsurers are set to foot most of the bill for the grounding of the ship that halted traffic in the Suez Canal, says an article on Reuters.
Grounding of ship
International supply chains were thrown into disarray when the 400 meters (430 yards) Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel.
Loss of revenue
Alan Mackinnon, chief claims officer with UK Club, the Ever Given’s P&I insurer, said: “it expected a claim against the ship’s owner from the canal authorities for possible damage to the canal and for loss of revenues, and separately claims for compensation from some of the owners of the delayed ships”.
Payouts expected to $100m
The UK Club will cover the first $10 million of P&I losses.
The wider pool of P&I insurers will cover up to $100 million, at which point re-insurers such as Lloyd’s of London step in for up to $2.1 billion of claims. P&I insurers would contribute for part of a further $1 billion of cover.
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Source: Reuters
