August 10, 2006
Malacca Straits war risk charge ends
The Joint War Committee (JWC) of the London hull insurance sector has taken the Malacca Straits off the list of areas where additional insurance premia are levied.
The Straits were added last summer to the list of areas excluded from war risk policies when the JWC's risk consultant Aegis Defence Services adopted a new method for determining areas of perceived enhanced risk. This resulted in a radical restructuring of such areas, with various ports and regions of the world assigned a rating of between one and ten on a scale of "perceived enhanced risk."
Ken Marshall, Chairman of Intertanko's Insurance and Legal Committee, applauds this decision of the Joint War Committee as a move that is most welcome to the industry. "The littoral states have shown that the issue of maritime security is high on their list of priorities and have taken constructive steps to minimise the risks. The JWC's decision recognizes this."
He goes on to say, "The littoral states are to be encouraged to continue their cooperation. INTERTANKO and industry colleagues will continue to play a constructive part in this process, including participating in the meeting this September co-hosted by the IMO and the Malaysian Government in Kuala Lumpur."
During discussions on this issue this time last year, ship owner and government representatives emphasized strongly that the area of the Malacca Straits had not had a single terrorist attack in the last 13 years and that the only incidents that had occurred were piratical attacks and theft from ships. Also highlighted were the enhanced measures that had recently been introduced by the littoral states to combat the problem of piracy/theft.