The Marine Insurance Blog

Targeted Lloyd�s insurer Kiln has today announced it is to recommend to its shareholders and approach by Tokio Marine & Nichido Fire Insurance in a bid worth around 150p per equity share, following a selection process of several other tabled and speculative approached for the business.

According to statements released today TMNFI have made a bid worth slightly over �442 million, which has been accepted by the board of directors and is to be put before shareholders at an extraordinary general meeting for majority approval.

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Economists and industry experts had high hopes for the marine insurance industry which was seen performing solid last 2007. This made it easy for people to predict better than usual earnings for the industry last year but year end statistics and financial information shows higher than usual losses in income due to high claims filing and other factors. The experts took another look at the industry and were forced to revise predictions opposite previous expectations. Like other coverage areas of the insurance industry, losses are mounting and the recession in the US and in the UK are not helping either. The goods are flowing as they always have but shippers are having to file claims as losses have to be trimmed down lessening income of insurers.
Extreme weather has also caused many a delay and damage to ships and the cargo they carry resulting in higher than normal claims. The warmer weather is making seas rougher and these storms are getting worse, hopefully the economic storm ends faster than their watery counterparts giving the industry time to recover from the losses of yesterday.

Good news for you sailors out there! Marketwatch.com recently reported that Fireman’s Fund Insurance Company is now expanding its environmentally-friendly coverage to watercraft with a new green Hull and Machinery product. This is the first-ever green insurance available in the marine industry, designed to ensure vessel owners meet new federal environmental air standards with their tugs, ferries, commercial fishing vessels, and offshore service vessels. This new insurance came about because new marine emissions regulations established by the Environmental Protection Agency are creating a potential coverage gap for vessel owners facing major engine repairs. The new federal mandates require upgrades to strict environmental standards whenever older engines require replacement or substantial rebuilding. Unlike most existing hull and marine equipment policies that only cover restoration of damaged equipment to its previous operational condition, the green Hull and Machinery coverage will repair or replace the damaged engine with the most efficient model available to meet federal air quality requirements. In the event of a total loss to one engine, this coverage will also cover a portion of upgrades to the undamaged engine to match efficiency performance.

There are a large number of yacht insurance providers to choose from; although this may sound good for the customer, it can be perplexing finding exactly what you want. The types of plan will vary from one insurance provider to another; finding the right policy can be a chore.

A good yacht insurance policy should have a balance of low cost and superior service; however, do not ever sacrifice quality for cost. There are more intricacies involved with marine policies than other types of cover; deciding on which policy to sign up with can be a troublesome business. However, if you try and use the pointers highlighted above you should find the process a little simpler in finding the right yacht insurance.

Don’t weigh yourself down with the intricate details of every policy at this point; researching the finer details of each policy is easier when you have produced a smaller list. Carrying out these simple suggestions you should help with your final decision; the last thing needed after signing the policy is too find there’s a problem with the marine insurance company.

The week is not even through, but several incidents involving seafaring vessels have been reported since Sunday the 8th. Lives have been lost, injuries sustained and losses incurred as a result of these cases, most of which could have been prevented. Among them are the sinking of an overloaded tour boat in Mexico, an attack on two vessels of a petroleum company in Nigeria, a cargo ship fire while in port in India, a diving boat that took on water in North Carolina, a sailboat that overturned in Texas, the sinking of a crab vessel in Canada, and a supply vessel fire in Singapore.

The World Cruising Club is circumnavigating the globe this very moment. They started from the Caribbean in January and are presently in the area of the Cook Islands in the Pacific. Sailing around the world is the dream of many a sailor, and it is an great accomplishment in its own right, as the oceans of the world are vast expanses that demand competent crews. World ARC has been running events such as this for the past 20 years and have plenty of experience in ocean sailing. There is weather and routing advice, and yacht positions are tracked and updated frequently. There are required safety and communications equipment, and potentially unsafe areas are avoided. The fleet should reach Fiji in July, Mauritius in October and Cape Town in time for Christmas. The rally ends in March 2009.

by Andrea

A marine policy as a rule covered only three-quarter of the insured’s accountability concerning third parties. The usual liabilities takes place in defer to conflict with another ship, known as “running down” and wreck removal. Taking part in the 19th century, ship owners hooped as one in communal underwriting clubs identified as Protection and Indemnity Clubs (P&I). This is to cover the outstanding one-quarter liability between themselves. These Clubs are however, present up to this day and develop into the model for other specific and saleable marine and non-marine mutual. Through funds accumulated, reinsurance will be procured; though, if the loss experience is not positive one or more “additional  calls” may be made.

As per released records to date, Janashakthi Insurance recorded Rs. 525.77 million net profit after tax for the year ended 31 December 2007, recording the highest net profit margin from among the five leading insurance companies in the country.

Life Insurance business achieved shows 18 per cent growth, achieved total premiums of Rs. 1.2 billion. General insurance recorded Rs 3.68 billion with a 17 per cent growth in last year. The company is planning an initial Public Offering as the company revenue reached Rs 5.2 billion in 2007 and it was the best achievement over the past 13 years that company has achieved, Chairman of Janashakthi Insurance, W.T. Ellawala.