Jamoh moves to end war risk insurance on Nigeria-bound cargoes

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Guardianng June 21, 2021 3:07 a.m.

Jamoh moves to end war risk insurance on Nigeria-bound cargoes

Nigeria has demonstrated enough commitment towards tackling maritime insecurity to avert such premium burden.” According to nonprofit Oceans Beyond Piracy’s 2020 reports, the total cost of additional war risk area premiums incurred by Nigeria bound ships transiting the Gulf was $55.5 million in 2020 alone, and 35 per cent of ships transiting the area also carried additional kidnap and ransom insurance totalling $100.7 million.

It generally has two components: war risk liability, which covers people and items inside the craft and is calculated based on the indemnity amount and war risk hull, which covers the craft itself and is calculated based on the value of the craft.

Insecurity got so bad in the region before the deployment of the deep blue project that global insurance firm Beazley now offers “Gulf of Guinea Piracy Plus,” a bespoke insurance plan for maritime crew travelling through the area.

The premium varies based on the expected stability of the countries to which the vessel will travel, the war risk phenomenon, which was only known to countries with a high rate of piracy such as Somalia, also found its way into Nigeria following the massive involvement of youths in the Niger Delta in militant activities..

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