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Piracy
The recent piracy attacks in Somalia have once again highlighted the issue of piracy. Discussions about the frequency of piracy attacks tend to be confused by lack of clarity about the meaning of piracy. Some parties have treated any attack on a ship by persons capable of using force to be examples of piracy, whether or not force was used and whether or not the ship was at sea or alongside a berth. Others use more traditional definitions that would include only attacks at sea, involving theft, actually carried out by force, by persons from other vessels.
The Club provides cover to its ship operating Members for P&I legal liabilities arising out of piracy but it is becoming increasingly difficult to distinguish what, in insurance terms, amounts to piracy. Some so-called acts of piracy may be more akin to acts of terrorism and therefore be excluded from P&I cover and fall within the scope of War Risks cover.
To be safe therefore ship operators should liaise with their brokers to confirm that they have in place comprehensive War Risks cover to ensure that both their own property and their potential liabilities are appropriately covered in the case of attack.
Generally speaking, P&I claims arising from piracy attacks are rare, and, at least in the UK P&I Club’s case, so rare that it does not have the volume of data to produce meaningful statistics on piracy hot spots, the type of ships most at risk, etc. Nonetheless there are serious risk scenarios that can be envisaged in connection with piracy.
Members and their brokers may contact the Club with specific questions.
Related Information:
Links
>Maritime and Security links
IMO
>IMO welcomes Security Council moves on Somali piracy
Loss Prevention - Useful Ideas
>Anti piracy dummies
Publications
>Piracy - Threat at sea: A risk analysis by Munich Re.
>Paper on IMO Malacca straits meeting on safety and security
>Special General Meeting - Proposed Amendment to War Risks Exclusion
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