Introduction
Global Marine Piracy Insurance
CCW Global is able to offer comprehensive global piracy insurance solutions to maritime businesses worldwide.
Designed to provide superior protection against piracy risks, including crewmember kidnapping, vessel hijacking, and cargo ransom demands, Piracy Insurance solutions we work with offer extensive coverage under a single, easy to understand policy – giving shipping and maritime businesses the flexibility of wide-scale insurance with the convenience of single policy administration.
From ships delivering Humanitarian Aid in the Indian Ocean, to “Captain Phillips” scenarios with commercial container vessels off the Somali coast in recent years, acts of piracy on the high seas are risks which any maritime organization must factor into their day-to-day operations. While a concerted effort by the international community have seen acts of piracy decline since late 2012, according to the UN report, businesses and individuals are paying roughly US$ 60 million each year to pirates in the form of ransoms for crew and vessels.
Despite the lowered danger, there are still many pirate hotspots around the world which can severely impact shipping company’s ability to conduct business. CCW Global is able to offer comprehensive piracy insurance as part of our extensive Maritime Insurance offerings to give companies operating in the shipping sector globally the peace-of-mind needed in the event of a K&R situation or act of piracy.
Kidnap and Ransom
Maritime Kidnap Insurance
Kidnapping, under a maritime piracy insurance policy, is defined as; any event, or connected series of actual, attempted, or alleged events of seizing, detaining, or carrying away by force or fraud, one or more persons, for the purpose of demanding a Ransom or monetary payment as a condition of the release of the victim(s).
When setting up a maritime piracy insurance policy, the purchasing organization will normally declare individuals to be covered under the plan’s kidnapping coverage. These individuals can be specific people (i.e. Captain Bob), or can be an entire class of employee (i.e. all the crew on Vessel X).
In the event that the insured individuals are kidnapped, the insurance will indemnify the policyholder for:
- Reimbursements of cash values of applicable ransom payments
- Coverage against the loss of ransom payments whilst in transit
- Fees for independent professionals in relation to the kidnapping; including negotiators, forensic analysts, and/or public relations consultants
- Fees for medical recovery and psychiatric care of the victim following a kidnapping
- Fees for rehabilitation and recreation of the victim and family following a kidnapping
- Fees for job retraining of the victim following a kidnapping
- Costs of informants leading to release of kidnapping victim
- Costs of salary and remuneration owed to victim during the period of their incarceration
- Additional bespoke coverages as required dependant on location
As can be seen with the above general coverage offered under a maritime kidnapping insurance plan, the benefits of the policy are designed to provide an extremely wide scope of protection with the explicit aim of ensuring the safe recovery and rehabilitation of kidnapping victims.
In terms of the overall coverage levels (the ransom limits covered under these policies, for instance), these are normally determined based on a number of variables including:
- Location and journey of the individuals being covered
- Nature of the individual’s employment
- Age, Sex, and number of individual’s being covered under the plan
These variables will, in turn, directly impact the premium associated with the coverage.
CCW Global can help interested maritime organization enquire about comprehensive Kidnapping insurance plans, and will work with key stakeholders to identify the best possible coverage solutions in this regard.
Hijack
Vessel Hijacking Insurance
Hijacking, under a maritime piracy insurance policy, is defined as: the actual or alleged illegal boarding and holding captive of an insured vessel by persons who demand a Ransom as a condition of the release of the insured vessel.
When setting up a maritime piracy insurance policy, the purchasing organization will normally declare vessels to be covered under the plan’s hijacking coverage. These can be specific ships (i.e. Ship X), or can be an entire class of vessel (i.e. all petroleum tankers in a company’s fleet).
In the event that an insured vessel is hijacked, the insurance will indemnify the policyholder for:
- Reimbursements of cash values of applicable ransom payments
- Coverage against the loss of ransom payments whilst in transit
- Fees for independent professionals in relation to the hijacking; including negotiators, forensic analysts, and/or public relations consultants
- Costs and salaries of employees designated to assist in the return of the insured vessel
- Costs of communication equipment to obtain release of the vessel
- Publicity costs incurred to assist in release of vessel
- Cost of fuel oil used by the Hijacked vessel
- Costs paid to port authorities for the hijacked vessel calling at unscheduled ports
- Loss of hire sustained by the insured for the period of the hijack of the vessel
- Additional bespoke coverages as required dependant on location
Maritime piracy insurance plans which include Hijacking coverage are designed to facilitate the speedy return of seized vessels and ships globally, and assist maritime companies in protecting their most important assets in the event of a hijacking and ransom situation which has stemmed from an act of piracy.
Premiums for Hijacking insurance under an international maritime piracy policy will be calculated using a number of factors including:
- Size of fleet or number of vessels to be covered
- Total value of vessels and normal cargo values
- Area of fleet operations
CCW Global has expert piracy insurance brokers and can help global maritime companies obtain the coverage solutions which best fit their specific needs and budgets.
Quotation
Piracy Insurance Consultations
If your organization would like to obtain a free no-risk, no-obligation consultation to discuss the best possible international piracy insurance solutions to cover for kidnapping and hijacking, simply Contact Us to speak to one of our expert maritime insurance brokers today.
You can learn more about the products and services we offer by clicking About CCW Global.
We have received your enquiry, it may take us 1-2 working days to respond to your enquiry.
In case of urgent assistance please call our office at (+852) 2114 2840 during business hours.